Kin Mining NL
ABN 30 150 597 541
Annual Report
30 June 2021
CONTENTS
Corporate Information
Chairman’s Letter
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Securities Exchange Information
Tenement Table
Page
3
4
6
43
44
45
46
47
48
49
72
73
77
79
2
CORPORATE INFORMATION
ABN 30 150 597 541
Directors
Giuseppe (Joe) Paolo Graziano
Andrew Munckton
Brian Dawes
Hansjoerg Plaggemars
Nicholas Anderson
Company Secretary
Stephen Jones
Registered office
First Floor
342 Scarborough Beach Road
OSBORNE PARK WA 6017
Principal place of business
First Floor
342 Scarborough Beach Road
OSBORNE PARK WA 6017
Tel: (08) 9242 2227
Share register
Advanced Share Registry Services
PO Box 1156
NEDLANDS WA 6909
Tel: (08) 9389 8033
Solicitors
Dominion Legal
104 Edward Street
PERTH WA 6000
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Securities Exchange Listing
Kin Mining NL shares are listed on the Australian Securities
Exchange (ASX: KIN)
3
CHAIRMAN’S LETTER
Dear Shareholder,
It is my pleasure to present Kin Mining’s 2021 Annual Report and to reflect on what has been another
extremely active and successful year for the Company.
Thanks to the continued application of the exploration-driven strategy I outlined last year, we have
continued to add significant value to our flagship Cardinia Gold Project (CGP) in Western Australia –
growing our resource inventory, making new discoveries, unlocking other value transactions and putting
the Company in the best possible position to participate in what we believe will be an inevitable
consolidation of assets in the Leonora district.
Much of our success can be attributed to the “back-to-basics” exploration philosophy which has seen our
geology team undertake some outstanding work – applying modern geological thinking and drawing on
the latest geophysical and remote-sensing techniques to achieve a major leap forward in our geological
understanding of the gold-bearing structures at the CGP.
Despite the challenges associated with the recent surge in exploration activity across the WA resources
sector – which has seen a significant industry-wide tightening in the market for people, equipment and
services – our team has been able to maintain almost continuous drilling activity across the year.
This is a tremendous achievement, particularly considering that we have maintained an excellent safety
record throughout and ensured the continuity of our business against the backdrop of the COVID-19
pandemic, with all of its associated threats and challenges.
During the year, we progressed our Phase 3 resource drilling program at the CGP, completing over
32,500m of drilling in the first half of calendar year 2021 alone. This work was focused on delivering a
maiden Mineral Resource Estimate for the exciting Cardinia Hill discovery, while also testing a number of
compelling regional targets and conducting extensional and in-fill drilling at the cornerstone Bruno-Lewis
deposit.
A highly-successful $12.8 million capital raising was completed in the early part of this calendar year
through a strongly-supported Placement and Share Purchase Plan. This enabled us to push ahead
seamlessly with the completion of the Phase 3 drilling and the start of our Phase 4 exploration program.
Phase 4 is designed to deliver further upgrades to Mineral Resources at the high-priority Cardinia Hill and
Bruno-Lewis deposits, while also systematically testing a number of emerging high-grade discoveries at
Eagle/Crow, several targets along the Eastern Corridor and at emerging regional prospects such as Iron
King, located 45km north of Leonora, and the exciting Mt Flora satellite discovery 20km east of Cardinia.
The detail of our multi-faceted exploration programs during the year – and the outstanding drilling results
we were able to consistently generate – is covered in the body of this Annual Report.
Our exploration endeavours during the year underpinned a project-wide Mineral Resource update to 1.15
million ounces in December, and then a further update to 1.23 million ounces in April this year. Importantly,
the higher-confidence Measured and Indicated components of the Mineral Resource estimate increased
by 15% to 17 million tonnes at 1.39g/t for 762,000oz of contained ounces of gold.
As a result of the successful programs completed in the first half of the year, we expect to announce a
further Mineral Resource update in the September 2021 Quarter.
We believe that high-quality Resource inventory, located in the heart of the Tier-1 Leonora-Laverton
region – together with the untapped exploration upside within our large 657 square kilometre strategic
ground-holding – will ultimately be the key drivers of value for our shareholders.
4
CHAIRMAN’S LETTER
In this regard, in July we welcomed ASX-200 listed gold miner, St Barbara Limited as a significant
shareholder with a 19.79 per cent holding, acquired from one of our founding shareholders, Harmanis
Holdings.
St Barbara is a well-regarded Australian-based gold producer with operations located 40km from the
CGP. Their Leonora Province Operations include the Gwalia underground mine and 1.2Mtpa processing
facility, located within economic haulage distance of our main deposits.
We are looking forward to working with St Barbara to further grow the Cardinia Gold Project. We can
understand the strategic interest of St. Barbara in our company, given our extensive Mineral Resource,
exploration potential, and commercial proximity to their Leonora Operations and welcome them as a
supportive investor. We also see other surrounding ore processing operations within our area and remain
focused on the best commercial outcome for all involved, not least of which are our longstanding
shareholders.
With this in mind, as this report was being finalised we had just embarked on our Phase 5 drilling program
at the CGP, and also lodged applications for mining approvals for our first open pit development at
Cardinia – demonstrating that we are moving towards a position of operational readiness.
We were also pleased to complete the acquisition of the 1.5% Net Smelter Royalty (NSR) over the first
100,000 ounces of gold production from the CGP. The NSR, which was held by Sprott Private Resource
Lending, had been put in place as part of the original 2017 project financing package for the CGP. The
royalty has been assigned to a Kin Mining entity, meaning it can be utilised in the future if required as part
of our potential development arrangements.
The NSR acquisition price of US$600,000 cash, represented approximately 22 per cent of the royalty’s
face value, delivering a very good outcome for shareholders, with the acquisition significantly streamlining
our future development options for the CGP.
In closing, the past 12 months have laid the foundations for Kin Mining to move to the next level at the
CGP, with the expected delivery of successive Mineral Resource updates over the course of FY2022, as
well as ongoing drilling to deliver new near-mine and regional discoveries in the Leonora district.
These programs will underpin the Company’s transition from explorer to developer and ultimately to gold
producer.
The strength of this position is thanks to the hand work and professionalism of our small but incredibly
hardworking team, led by Managing Director Andrew Munckton. I would like to sincerely thank our entire
team of staff and contractors, as well as my fellow Board members, for their efforts and commitment over
the past year.
And – as always – I would also like to thank you, our shareholders, for your strong ongoing support.
Yours sincerely,
Joe Graziano
Chairman
5
DIRECTORS’ REPORT
The Directors of Kin Mining NL (“Kin” or “the Company”) submit herewith the consolidated
annual financial report consisting of the Company and its wholly owned subsidiaries (together
“the Group”) for the financial year ended 30 June 2021. In compliance with the provisions of
the Corporations Act 2001, the Directors report as follows:
Directors
The names of the directors in office during or since the end of the year are as follows.
Directors were in office for the entire period unless otherwise stated.
• Giuseppe (Joe) Paolo Graziano
• Andrew Munckton
• Brian Dawes
• Hansjoerg Plaggemars
• Nicholas Anderson
Mr Giuseppe (Joe) Paolo Graziano, Chairman
Up to 2014 Mr Graziano worked as a Chartered Accountant with corporate and company secretarial
experience. Mr Graziano has over 29 years’ experience providing a wide range of business, financial
and strategic advice to small cap unlisted and listed public companies and privately owned businesses
in Western Australia’s resource-driven industries. Since 2014 he has been focused on corporate
advisory, company secretarial and strategic planning with listed corporations including Mergers &
Acquisitions, Capital Raisings, Corporate Governance, ASX compliance and structuring.
Mr Graziano is currently a director of Pathways Corporate Pty Ltd a specialised Corporate Advisory
business and holds the following Directorships in other Australian listed Companies:
- Tyranna Resources Limited – Non-Executive Director (ASX: TYX)
- Protean Energy Ltd – Non-Executive Director (ASX: POW) Appointed 14 October 2020
- Syntonic Ltd – Non-Executive Director (ASX: SYT) Appointed 1 November 2020
Special Responsibilities:
- Member of the Audit Committee
- Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies in the past 3 years:
- Thred Ltd – Non-Executive Director Ceased 1 February 2021
- Migme Ltd – Non-Executive Director Ceased and now delisted
6
DIRECTORS’ REPORT
Mr Andrew Munckton, Managing Director
Mr Munckton is an experienced geologist who has held senior management roles in both ASX-listed
companies and gold operations in a career spanning more than 30 years.
Mr Munckton has previously held the roles of Managing Director of Syndicated Metals Limited and
Avalon Minerals, General Manager – Operations for Gindalbie Metals, General Manager Strategic
Development of Placer Dome Asia Pacific and General Manager Operations of the Kanowna Belle,
Paddington and Kundana gold mines over a period of 10 years.
He holds a Bachelor of Science (Geology) from the University of Western Australia and is currently a
Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of
Company Directors.
Special Responsibilities:
- Member of the Audit Committee
- Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies in the past 3 years:
- Nil
Mr Brian Dawes, Non-Executive Director
Mr Dawes is a mining engineer with extensive international mining industry experience. He holds a BSc
in Mining from the University of Leeds UK, and is Member of the Australasian Institute of Mining and
Metallurgy.
He has worked in the UK, Africa, the Middle East and across Australia and holds several First Class
Mine Managers’ Certificates of Competency. Mr Dawes’ diverse expertise covers all key industry
aspects from exploration through the discovery, feasibility, funding, approvals, project construction,
commissioning, operations, optimisation, logistics, marketing, and closure phases. This includes site
management and corporate responsibilities in a diversity of challenging and successful underground
and open pit operations across many commodities and geographies; mainly in copper, nickel, gold, zinc
and lead, with iron ore, graphite, and coal.
Mr Dawes is a Non-Executive Director of Talisman Mining, and has previously held a number of
Executive positions with Jubilee Mines NL, Western Areas, LionOre Australia, WMC, Normandy Mining
and Aberfoyle.
Special Responsibilities:
- Member of the Audit Committee
- Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies in the past 3 years:
- Talisman Mining Ltd – Non-Executive Director appointed 17 June 2009
7
DIRECTORS’ REPORT
Mr Hansjoerg Plaggemars, Non-Executive Director
Mr Plaggemars is an experienced company director with a deep background in corporate finance,
corporate strategy and governance. He has served on the Board of Directors of many listed and unlisted
companies in a variety of industries including mining, agriculture, shipping, construction and
investments. This includes the Board of Delphi Unternehmensberatung AG.
Mr Plaggemars has qualifications in Business Administration and is fluent in English and German.
Special Responsibilities:
- Member of the Audit Committee
- Member of the Remuneration and Nomination Committee
Directorships held in other public Companies
- Azure Minerals Limited – Non Executive Director
- Davenport Resources Limited – Non Executive Director
- Altech Chemicals Limited – Non Executive Director
- PNX Metals Limited – Non Executive Director
- Gascoyne Resources Limited – Non Executive Director
- Wiluna Mining Corporation Limited, Non-Executive Director
Directorships held in other Australian listed companies in the past 3 years:
- Nil
Mr Nicholas Anderson, Non-Executive Director
Mr Anderson is a finance executive with extensive experience in the resource sector. As a trained
chemical engineer with combined knowledge of bulk commodities and strong financial acumen he
provides financial and corporate advisory services to several mining companies. He has a successful
track record in capital raisings, restructures and executing highly complex transactions across private
and public markets.
Mr Anderson is currently Chief Financial Officer of Rivet Group which provides transport, logistics,
equipment hire and maintenance services to a number of industries, predominately mining. Mr Anderson
is a graduate of the Australian Institute of Company Directors.
Special Responsibilities:
- Member of the Audit Committee
- Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies in the past 3 years:
- Nil
8
DIRECTORS’ REPORT
Mr Stephen Jones, Company Secretary and Chief Financial Officer
Mr Jones is a Chartered Accountant with more than 25 years’ experience leading corporate finance and
governance teams in Australia and overseas. With the last 20+ years in the Western Australian mining
industry Mr Jones has a demonstrated history in Mineral Exploration, Investor Relations, Analytical
Skills, Feasibility Studies, and Environmental Awareness previously holding senior Finance positions at
Portman Mining, Aviva, Southern Cross Goldfields and Middle Island Resources.
Interests in the shares and options of the Company
The following relevant interests in shares and options of the Company were held by the directors as at
the date of this report:
Directors
G Graziano
B Dawes
A Munckton
H Plaggemars
N Anderson
Fully paid ordinary shares
Number
10,742,463
2,012,289
1,326,413
455,752
1,085,478
Share options
Number
3,500,000
500,000
-
500,000
500,000
Principal Activities
The principal activities of the Group during the year were gold and base metals exploration and gold
project development.
9
DIRECTORS’ REPORT
OPERATIONS REPORT
Kin’s key asset is its 100%-owned Cardinia Gold Project (“CGP” or “the Project”), located
approximately 30km north-east of Leonora and approximately 250km north-northwest of
Kalgoorlie in Western Australia. The CGP is situated in the heart of an active gold mining
district that hosts several multi-million-ounce operating gold mines including Sons of Gwalia,
Wallaby, Sunrise Dam, Mt Morgans, Thunderbox and Darlot (Figure 1).
The district is well serviced by infrastructure including a network of high-quality roads, gas
pipelines, communication infrastructure, airstrips with regular services to Perth and close
proximity to an established mining workforce and supply network.
Figure 1. The Cardinia Gold Project and surrounding deposits and gold mining operations.
10
DIRECTORS’ REPORT
RESPONSE TO COVID-19
Kin maintained stringent health and safety protocols throughout the year to minimise the
impact of the COVID-19 pandemic and ensure the health and safety of all staff and contractors,
while still maintaining an effective and productive workforce to undertake our activities.
While the State of Western Australia (where the Company’s head office and key assets are
located) has had minimal disruption from COVID-19, the Company has continued to closely
monitor the incidence of COVID-19 across Australia and has implemented additional protocols
and procedures as required to ensure the health and safety of our team and local communities.
Key measures designed to support social distancing including from time to time having the
majority of Perth-office staff working from home, minimising unnecessary interaction on site
and restricting all non-essential travel by staff and contractors. Drilling and exploration activities
were able to continue throughout the reporting period, with limited impact from COVID-19 on
the Company’s operations.
UPDATED MINERAL RESOURCE ESTIMATE
The Mineral Resource Estimate (MRE) for the CGP was increased by 30 per cent over the
course of FY2021, with the latest MRE update delivered in May 2021 totalling 30Mt at 1.28g/t
Au for 1.23Moz of contained gold.
Importantly, the May 2021 MRE included a 15% increase in the higher-confidence Measured
and Indicated portion of the Mineral Resource to 17Mt at 1.39g/t for 762,000oz, reflecting
successful in-fill and extensional drilling programs conducted in recent months and
demonstrating the scale and quality of the CGP resource inventory.
Across the reporting period, all existing MRE’s were updated to fall within optimised shells
using stringent criteria for costs, recoveries and geotechnical parameters as established in the
2019 Pre-Feasibility Study (PFS) for the CGP, and the application of a gold price assumption
of A$2,600/oz. The A$2,600 gold price adopted for this estimate is considered reasonable
given the recent gold price performance and the requirement under the JORC code to include
only material in an MRE that will result in “eventual economic extraction”.
In addition to the re-optimisation of existing Resources, drilling programs during FY2021 also
underpinned significant updates to the MRE’s for the Cardinia Hill, Bruno-Lewis and Hobby
deposits.
11
DIRECTORS’ REPORT
Project Area
Resource Gold
Price (AUD)
Lower
Cut off
(g/t Au)
Tonnes
(Mt)
Au
(g/t Au)
Au
(k Oz)
Tonnes
(Mt)
Au
(g/t Au)
Au
(k Oz)
Tonnes
(Mt)
Au
(g/t Au)
Au
(k Oz)
Tonnes
(Mt)
Au
(g/t Au)
Au
(k Oz)
Cardinia Gold Project: Mineral Resources: May 2021
Measured Resources
Indicated Resources
Inferred Resources
Total Resources
Mertondale
Mertons Reward
Mertondale 3-4
Tonto
Mertondale 5
Eclipse
Quicksilver
Subtotal Mertondale
Cardinia
Bruno*
Lewis*
Kyte
Helens
Fiona
Rangoon
Hobby *
Cardinia Hill *
Subtotal Cardinia
Raeside
Michaelangelo
Leonardo
Forgotten Four
Krang
Subtotal Raeside
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
$2,600
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.9
1.4
1.8
0.5
2.17
1.85
1.14
1.67
66
81
67
26
4.6
1.61
240
2.8
4.7
0.3
0.7
0.6
0.5
1.13
1.00
1.53
2.14
1.35
1.24
102
151
17
50
25
21
0.3
0.6
1.26
1.24
10
20
0.8
1.16
30
9.6
1.18
364
1.1
0.4
0.1
0.3
2.0
2.00
2.39
2.09
1.74
2.04
73
30
7
17
128
1.9
1.0
1.1
0.8
0.6
1.1
6.5
1.1
2.1
0.1
0.3
0.2
0.3
0.5
1.2
5.8
0.4
0.2
0.1
0.0
0.7
0.65
0.97
1.24
1.24
1.01
1.10
0.98
1.05
0.80
0.92
1.94
1.21
1.07
1.31
1.66
1.15
2.19
2.20
1.96
2.59
2.17
41
31
43
32
19
39
205
36
55
3
19
8
12
22
61
216
25
14
6
2
47
2.9
2.3
2.9
1.3
0.6
1.1
11.1
4.1
7.4
0.4
1.0
0.8
0.9
0.5
1.2
16.3
1.5
0.6
0.2
0.3
2.6
1.15
1.48
1.18
1.40
1.01
1.10
1.24
1.12
0.95
1.38
2.08
1.32
1.17
1.31
1.66
1.17
2.04
2.32
2.03
1.80
2.07
106
111
111
59
19
39
445
148
226
20
69
32
32
22
61
611
98
44
14
19
175
Date
Announced
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
17-May-21
17-May-21
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
17-May-21
18-Dec-20
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
30
0.8
1.41
1.16
TOTAL
16.2
Table 1: Mineral Resource Estimate Table May 2021. Mineral Resources estimated by Jamie Logan, and
reported in accordance with JORC 2012 using a 0.4g/t Au cut-off within AUD2,600 optimisation shells.
Note * Cardinia Hill, Hobby and Bruno-Lewis Mineral Resource Estimates completed by Mike Millard of
Cube Consulting, and also reported in accordance with JORC 2012 using a 0.4g/t Au cut-off within
AUD2,600 optimisation shells.
1The company confirms that it is not aware of any new information or data that materially affects the information included
in the ASX Announcement of 17 May 2021 “Cardinia Gold Project Mineral Resource Increased to 1.23Moz”, and that all
material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and
have not materially changed.
1231
13.0
30.0
1.12
1.28
732
468
Full details of the Mineral Resource Estimates for each deposit were provided in the
Company’s ASX Announcement dated 26 November 2020, 18 December 2020 and 17 May
2021 (as specified in the ‘Date Announced’ column in the above table).
12
DIRECTORS’ REPORT
EXPLORATION
Following the completion of the CGP Pre-Feasibility Study in August 2019, Kin has been
progressing a multi-pronged exploration effort aimed at unlocking the full potential of the
Cardinia Project.
Kin has a dominant 657km2 land-holding across the under-explored Minerie Greenstone Belt,
part of a region which has yielded multiple gold deposits in recent decades. The CGP area
encompasses a +45km strike of the Minerie Formation which contains large alteration systems
and several significant gold deposits.
Figure 2. CGP tenure over regional magnetics.
Resource definition drilling was completed throughout FY2021 at the Cardinia Hill, Bruno-
Lewis and Hobby deposits, with these drilling programs underpinning updated Mineral
Resource estimates for each of these deposits as outlined above.
13
DIRECTORS’ REPORT
Beyond the current Mineral Resource Estimate, additional opportunities have been delineated
during FY2021 that offer the potential for further Mineral Resource growth. These opportunities
are summarised below.
Cardinia Hill
Since the delivery of the May 2021 Mineral Resource Estimate for Cardinia Hill detailed above,
further drilling has been completed to extend the Mineral Resource to approximately 200m
below surface, explore the deposit along strike to the north and in-fill the near-surface portion
of the Southern and Northern high-grade shoots to a nominal 25m by 25m spacing, as the
foundation for an upgrade of the Mineral Resource Estimate and classification.
Highlights from this extension and definition drilling has included:
• 7m at 21.3g/t Au from 91m (CH21RC122)
• 3.4m at 9.72g/t Au from 252.6m (CH21DD096)
• 10m at 1.48g/t Au from 118m (CH21RC113)
• 5m at 4.99g/t Au from 21m (CH21RC133)
• 8m at 4.02g/t Au from 19m (CH21RC134)
The drilling has confirmed the continuity of mineralisation at elevated gold grades, extended
both the shallow and deeper high-grade mineralisation within the deposit along the Cardinia
Hill Fault. Mineralisation has been intersected over approximately 800m strike length along the
Cardinia Hill structure and remains open to the north.
In-fill drilling to 25m x 25m spacing has been successfully completed at both the Northern and
Southern high grade shoot areas. (Refer Figure 3).
Figure 3. Long section of Cardinia Hill.
14
DIRECTORS’ REPORT
Strong gold and sulphide mineralisation at Cardinia Hill is associated with both near vertical,
quartz-carbonate filled shear zones and carbonate and sulphide alteration zones located on
the contact between west dipping porphyry intrusions and the dolerite host rock (see Figures
4 and 5).
An updated Mineral Resource Estimate for Cardinia Hill is expected to be delivered in the
September 2021 Quarter.
Following the Resource Definition drilling, a program of metallurgical test-work drilling was
completed late in the reporting period to provide samples to test the metallurgical and treatment
performance of the Cardinia Hill deposit. Initial metallurgical testwork program results are
scheduled for the September 2021 quarter.
Figure 4: Location of the Cardinia Hill RC and DD results in the Southern Shoot drilling (Refer Figure 3). True
width is approximately 70% of down-hole intersection. New results shown in white labels, previous results grey
labels
15
DIRECTORS’ REPORT
Figure 5: Location of the Cardinia Hill RC and DD results in the Southern Shoot drilling (Refer Figure 3). True
width is approximately 70% of down-hole intersection. New results shown in white labels, previous results grey
labels.
Eagle-Crow
Air-core (AC) drilling was undertaken at the Eagle-Crow prospect, located on the western side
of the CGP, during the reporting period, with results confirming significant zones of shallow,
high-grade gold mineralisation.
The Eagle prospect, located 3km from the centre of the CGP, was defined in late 2020 from a
regional soil geochemical program undertaken by Company. The soil program covered the
historical Eagle and Crow prospect workings, where rock chip samples and historical scout AC
drilling over a limited strike length had returned high grade results.
16
DIRECTORS’ REPORT
Kin Mining completed an initial program of AC drilling in March, comprising 405 drill-holes for
17,447m, designed to provide an initial assessment of the source of the extensive gold-in soil
geochemical anomaly at Eagle-Crow, which extends over a strike length of approximately 5km
and a width of 0.6km.
Highlights from 4m composite assay results from the initial phase of AC drilling at Eagle-Crow
included:
• 8m at 7.90 g/t Au from 28m to the bottom-of-hole (EG21AC072)
• 4m at 8.31 g/t Au from 0m (EG21AC024)
• 4m at 4.44 g/t Au from 0m (EG21AC144)
• 4m at 4.25 g/t Au from 4m (EG21AC074)
• 4m at 3.78 g/t Au from 40m (EG21AC067)
• 4m at 3.11 g/t Au from 24m (EG21AC244)
This program defined two parallel zones of mineralisation in broad-spaced AC drilling
highlighting the potential for an extensive, shallow gold discovery subject to further drilling.
In-fill drilling at the Crow prospect delivered an outstanding intercept of 8m at 19.77g/t Au
(including 4m at 38.8g/t Au) from hole EG21AC400, located 200m along strike from an
intercept of 8m at 7.90g/t Au intersected in hole EG21AC072. Historical AC drilling on this
mineralised trend intersected 3m at 4.5g/t and 3m at 27.1g/t Au adjacent to old surface
workings.
RC Drilling to confirm the style and orientation of the gold mineralisation below the regolith was
underway at the end of the reporting period.
Eastern Corridor
Kin Mining commenced an exploration program across the Eastern Corridor area late in the
reporting period aimed at extending the depth of known mineralisation and providing an initial
evaluation at a number of targets generated from the Phase 3 exploration program that offer
the potential for Resource growth.
The Eastern Corridor targets are located between 500m and 4.5km from the centre of the CGP
(Figure 6). Mineral Resources within the Eastern Corridor total 3.9Mt at 1.59g/t Au for 194koz
across four deposits at Helens, Rangoon, Fiona and Cardinia Hill.
The area has been covered by detailed magnetics and gravity surveys and underwent deeper
RC and DD drilling programs during the Company’s Phase 3 exploration program completed
over 2020 and early 2021, which revealed porphyry intrusions adjacent to sheared mafic
volcanic and felsic volcanic contacts as a primary control of high-grade gold mineralisation.
The gravity survey in particular has enabled detailed mapping of the positions of interpreted
shear zones, geological contacts and buried porphyry intrusions, which has resulted in the
17
DIRECTORS’ REPORT
generation of several exploration targets in addition to the deeper targets associated with the
recently-discovered Cardinia Hill deposit.
Key initial targets for the Eastern Corridor exploration program are Cardinia Hill Deeps (Target
3 in Figure 6 below), Helens South and Helens East (Targets 1, 4 and 5), the Cardinia Hill
Fault (Targets 2, 6 and 7), Rangoon and Fiona.
Results received from the Phase 4 drilling program to date have provided an initial assessment
of the mineralisation style and gold grade at each of the targets, which will assist with
prioritising them for follow-up programs to target additional Resources to feed into a future
CGP-based mining and processing operation.
Figure 6. Kin Mining’s Eastern Corridor Targets, part of the Cardinia Gold Project.
18
DIRECTORS’ REPORT
East Lynne / Collymore
The East Lynne trend is located ~3km north-east of the Cardinia Gold Project and is a large
greenfields gold target identified over the past 12 months as a result of systematic exploration
work by Kin’s geological team.
Kin Mining has completed 21 lines of air-core drilling at East Lynne totalling 19,500m of drilling,
with highlights including 5m at 35.1g/t Au from 40m to end-of-hole (EL20AC192).
Figure 7: Location of the East Lynne AC drilling program.
The results confirm the continuity of the East Lynne mineralisation in AC drilling from Line 2 to
Line 10, a distance of 3.2km. High-grade gold mineralisation in the near-surface environment
is present above a broad zone of sulphide mineralisation marked by a strong IP anomaly above
a major geological feature at East Lynne.
19
DIRECTORS’ REPORT
The growing evidence from soil sampling and air-core drilling is that East Lynne contains three
parallel zones of mineralisation, including the new Collymore Trend, which extends over a
strike length of 2.0km.
An initial program of RC drilling was undertaken at both East Lynne and Collymore to test
immediately beneath ore grade intersections from earlier AC drilling programs, with results
from the combination of AC and RC drilling outlining semi-continuous mineralisation in several
zones over an extensive area with occasional very high-grade intersections over 4m and 1m
sample intervals.
This suggests that the source of the gold in the oxide zone at East Lynne and Collymore is
several relatively narrow zones of pyrite mineralisation sometimes associated with laminated
quartz veins. On occasion, several narrow zones are present in a drill hole. This style of narrow,
high-grade mineralisation is seen at more advanced deposits at Cardinia Hill, Hobby and
Helens, located to the north and south of East Lynne and Collymore.
East Lynne and Collymore continue to represent significant mineralised targets within the
Cardinia system, with these targets now considered likely to be a series of smaller, adjacent,
high-grade deposits rather than a single large deposit.
Future exploration drilling will focus on testing these positions once additional geological
interpretation, structural mapping and gravity geophysics programs have been completed to
assist in mapping the dominant structural controls to these geologically continuous features.
Regional Exploration Program
Kin owns six separate projects located east and west of the centrally located CGP (Figure 8)
which the Company has been advancing with a range of exploration activities over the past 12
months including ground-based geophysical surveys, surface auger soil geochemical surveys
and first-pass air-core (AC) drilling programs to evaluate their prospectivity.
The purpose of the regional exploration program across the gold-based projects is to provide
an initial assessment of the mineralisation style and gold grade and determine whether each
project has the potential to be a viable stand-alone project or would more naturally provide
satellite feed to a CGP based mining and processing operation.
The key parameters governing these development options is the distance from Cardinia,
potential alternative treatment options, project size and mineralisation grade. Other projects in
the portfolio of tenements also offer nickel sulphide exploration potential and these are being
assessed in parallel with the gold project evaluation.
20
DIRECTORS’ REPORT
Figure 8. Kin Mining’s regional project areas close to Leonora, Western Australia.
Mt Flora – Gold
The Mount Flora prospect is located 20km east of the CGP and was identified as a priority
satellite target after regional, wide-spaced auger sampling undertaken in late 2020.
Kin completed a maiden program of AC drilling at Mount Flora in April 2021, comprising a total
of 269 drill-holes for 10,166m, targeting the strongest of the gold-in-soil anomalies. The results
to date have confirmed the presence of three mineralised trends, interpreted to be associated
with splays originating from the Federation Fault and other parallel structures.
Highlights from the AC drilling included:
• 22m at 8.96g/t Au from 24m including 8m at 21.0g/t Au from 32m (MF21AC522)
• 8m at 2.79g/t Au from 28m (MF21AC525)
21
DIRECTORS’ REPORT
Iron King – Gold
The Iron King Project, located approximately 45km north of Leonora, contains the historically
mined Iron King open pit. The Iron King open pit produced approximately 20,000 tonnes at
9.0g/t Au for 5,600oz of gold mined.
The Company completed an 11,425m AC program at nominal 400m line spacing in late 2020
targeting strike extensions of the existing mineralisation and parallel zones of mineralisation
highlighted in the earlier soil geochemical program (see ASX Announcement dated 14 January
2021). A number of strong intersections were returned from the Axford prospect mostly along
strike from historical workings and previous drilling intersections.
The follow-up program of additional AC lines to in-fill to 200m spacing and initial RC drilling
around the stronger AC results is scheduled for the September Quarter following completion
of a heritage survey and granting of a POW to extend these programs.
Randwick – Gold
The Randwick tenement group is located immediately north and south of the Randwick Mining
Centre, 48km north-east of Leonora, and comprises 26km2 of tenements.
Several gold targets have been identified within the Randwick Project area associated with
interpreted major fault or shear intersections, flexure zones and historic workings, as well as
an auriferous paleo-channel target south of the Golden Chain prospect located on P37/7997.
Only limited modern exploration has been conducted within the project area. At Gold Hill, a
small deposit was defined in the 1980s, a portion of which was subsequently extracted in a
heap leach operation which lies adjacent to the Project area (Randwick Gold Hill Mine).
An auger and soil geochemical program planned to commence in the September Quarter 2021
as the initial phase of a systematic exploration program to assess the project.
Murrin – Gold
The Murrin Project is located approximately 50km east of Leonora. Several regional NW and
NNE trending thrust faults and shear zones including the Kilkenny Fault, Kilkenny Creek Fault,
Pearl Shell Fault and the Nangeroo Fault run through the area.
Several gold targets have been identified within the Murrin Project area associated with
interpreted major fault or shear intersections, flexure zones and historic workings. Only limited
modern exploration has been conducted within the project area.
An auger soil geochemical program is planned to commence in the September Quarter 2021
as the initial phase of a systematic exploration to assess the project for potential follow-up
drilling programs.
22
DIRECTORS’ REPORT
Nickel Sulphide Target – Mt Fouracre Project
The Mt Fouracre Project is located approximately 60km north-west of Leonora and north-east
of Kin’s Iron King gold project. The prospect consists of the basal contact of the Mt Clifford
Ultramafic unit and lies 2km west of the Marriotts nickel sulphide deposit discovered by
Western Mining Corporation in the 1970’s.
The Mt Fouracre prospect was explored by BP Minerals up until 1980 and subsequently other
nickel-focused companies such as Dalrymple Resources and Lionore which held the
tenements in conjunction with other project tenure without undertaking significant new
exploration work. The historical work contains a number of shallow drill holes strongly
anomalous in nickel within the oxide and laterite zones, positioned over the highly magnetic
section of the Mt Clifford ultramafic unit.
Kin has reviewed the exploration data and completed a moving-loop Electro-Magnetics
(MLEM) survey over the prospective lower contact of the Mt Clifford UM unit. The survey has
highlighted a strongly conductive target positioned just below the base of the Mt Clifford unit
on the western side of the tenement.
Modelling of the anomaly by Southern Geoscience shows a steep east-dipping orientation of
the conductor parallel with the interpreted base of the Mt Clifford unit (see Figure 9). An initial
RC and diamond drilling program to test the source of the conductive anomaly is scheduled to
commence in late-July once the diamond rig returns to Cardinia.
23
DIRECTORS’ REPORT
Figure 9: Location of the Mt Fouracre conductive anomaly target. Magnetics (TMI) image shown on LHS,
MLEM late time image on RHS. Note the proximity of the target to the interpreted base of the Mt Clifford
Ultramafic unit (Magenta line). Kin Mining tenements in yellow.
CORPORATE
Royalty Acquisition
During the reporting period, Kin reached agreement with Sprott Private Resource Lending to
purchase the 1.5% Net Smelter Royalty (NSR) over the first 100,000oz of gold production from
the CGP.
The 1.5% NSR formed part of the US$27 million financing package provided by Sprott as part
of the original development plan for the Leonora Gold Project (now CGP) in 2017 (refer Kin
Mining Announcement, 6 December 2017).
The Company purchased the royalty for US$600,000 cash, which is equivalent to 22c in the
dollar face value of the NSR based on the June spot gold price of US$1,912/oz. The royalty
remains on foot and has been assigned to a Kin Mining entity, enhancing the Company’s future
options with regard to funding for the CGP.
24
DIRECTORS’ REPORT
Capital Raisings
Kin Mining completed two successful capital raisings during the reporting period, raising a total
of $20.5 million.
In July 2020, Kin completed the non-renounceable 1-for-7 pro-rata Entitlement Offer
announced on 12 June 2020. The Rights Issue closed as scheduled on 8 July 2020 with the
Company receiving valid acceptances for 55,147,263 new shares at $0.11 per share
($6.066M), with a shortfall remaining of 34,808,571 new shares.
The placement of the Shortfall increased the total funds raised through the capital raising to
$7.702M before costs.
In March 2021, the Company completed a successful $12.8 million capital raising to progress
the next phase of exploration and resource growth at the CGP. The raising comprised a
Placement of approximately 92.3 million shares at $0.13 to raise $12.0 million and a Share
Purchase Plan (SPP), also at $0.13, which raised an additional $838,500. The Placement
included $8.2 million contributed by existing cornerstone shareholders and $3.8 million from
new investors, demonstrating the strong continuing support of the Company’s strategy by its
key backers.
Appointment of Mining Manager
Kin has appointed Mr Chad Moloney as Mining Manager commencing 1 July 2021. Mr Moloney
is a qualified Mining Engineer with recent experience as Mining Manager at Pantoro
Resources’ Halls Creek gold mine. Chad has a strong background in both underground and
open pit gold mining operations. In particular, he was the Registered Manager of Doray
Minerals’ Andy Well gold mine where he oversaw the construction of the mining operations
and mining contracts.
Mr Moloney joins Kin Mining following the resignation of Mr John Kelly, who has retired.
Cash Position
At 30 June 2021, Kin had $7.443 million cash on hand.
Board and Management Changes
There have been no changes to the composition of the Board and Management during the
period.
Details of the current Board and management team are contained in the Directors’ Report.
25
DIRECTORS’ REPORT
Share Issues
12 June 2020 Rights Issue
On 14 July 2021 Kin completed non-renounceable 1-for-7 pro-rata Entitlement Offer with the
issue of 55,147,263 new shares at $0.11 per share to raise $6.066 million. Following the
completion of the Rights Issue, the Company successfully placed a further 14,876,249 new
shares also at $0.11 per share to raise $1.636 million from the Shortfall.
10 February 2021 Placement and SPP Issue
In February 2021 Kin Mining undertook a Share Placement to raise a total of $12 million
through the issue of 92,307,693 ordinary fully paid shares (Shares) priced at $0.13 per share.
Following the Placement Kin raised a further $838,500 through the issue of 6,449,976 ordinary
fully paid shares from a Share Purchase Plan (SPP), also at $0.13 in March 2021.
Funds raised from the issue of shares were used to progress the Phase III and IV exploration
programs which continue across the Companies tenure.
Issues for no Cash consideration
In addition, the Company issued further shares to Directors of the Company as follows:
• 17 July 2020 – an issue of 264,443 new shares to Mr Andrew Munckton issue pursuant
to the satisfaction of Performance Rights vesting conditions related to the employment
contract as approved by the shareholders at the Company’s AGM on 21 November
2019,
• 3 December 2020 – an issue of 455,882 shares to Non Executive Directors for payment
of as per approved resolutions at the Company’s AGM held on 25 November 2020.
Subsequent Events
On 6 August 2021 the Company issued 317,992 shares to Mr Andrew Munckton on conversion
of Performance Rights. The Performance Rights vested on 9 July 2020 when the Company’s
Directors determined that the performance criteria required to be met for the vesting of the
Performance Rights had been met. At the same time the Directors determined that Mr
Munckton had met the performance criteria required to achieve his Short Term Incentive (STI)
payments and authorised the payment of an STI for the 2020/21 year of $110,025.
On 6 August 2021 the Company also issued 66,371 shares to Mr Stephen Jones and 59,041
shares to Mr Glenn Grayson on conversion of Performance Rights. The Performance Rights
vested on 9 July 2020 when the Company’s Directors determined that the performance criteria
required to be met for the vesting of the Performance Rights had been met. At the same time
the Directors determined that Mr Jones and Mr Grayson had met the performance criteria
26
DIRECTORS’ REPORT
required to achieve his Short Term Incentive (STI) payments and authorised the payment of
an STI for the 2020/21 year of $45,872 and $40,806 respectively.
Likely developments and expected results
Disclosure of information regarding likely developments in the operations of the Group in future
financial years and the expected results of those operations is likely to result in unreasonable
prejudice to the Group. Therefore, this information has not been presented in this report.
Environmental legislation
The Group is subject to the environmental legislation of the State of Western Australia. The
Group is in compliance with all its environmental obligations at the date of this report.
Significant changes in state of affairs
There have been no significant changes in the state of affairs of the Group during the financial
year.
Dividends
No dividends have been paid or declared since the start of the financial year and the directors
do not recommend the payment of a dividend in respect of the financial year.
Indemnification and insurance of Directors and Officers
The Company has agreed to indemnify all the directors of the Company for any liabilities to
another person (other than the Company or related body corporate) that may arise from their
position as directors of the Company and its controlled entities, except where the liability arises
out of conduct involving a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract insuring the
directors and officers of the Company and its controlled entities against any liability incurred in
the course of their duties to the extent permitted by the Corporations Act 2001. The contract of
insurance prohibits disclosure of the nature of the liability and the amount of the premium.
27
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
This report, which forms part of the directors’ report, outlines the remuneration arrangements
in place for the key management personnel (“KMP”) of Kin Mining NL for the financial year
ended 30 June 2021. The information provided in this remuneration report has been audited
as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for KMP who are defined as
those persons having authority and responsibility for planning, directing and controlling the
major activities of the Company, directly or indirectly, including any director (whether executive
or otherwise) of the Company.
Key Management Personnel
The Directors and other KMP of the Group during or since the end of the financial year were
as follows:
Directors:
G Graziano
A Munckton
B Dawes
H Plaggemars
N Anderson
Non-executive Chairman
Managing Director
Non-executive Director
Non-executive Director
Non-executive Director
Other Key Management:
S Jones
G Grayson
J Kelly
C Moloney
Chief Financial Officer and Company Secretary
Exploration Manager
Mining Manager (resigned 30 June 2021)
Mining Manager (appointed 1 July 2021)
Except as noted, the named persons held their current positions for the whole of the financial
year.
Remuneration philosophy
The performance of the Group depends upon the quality of the directors and executives. The
philosophy of the Group in determining remuneration levels is to:
• set competitive remuneration packages to attract and retain high calibre employees;
• link executive rewards to shareholder value creation; and
• establish appropriate, demanding performance hurdles
for variable executive
remuneration.
In considering the Group’s performance and returns on shareholder wealth, the Board has
regard to the following indicators of performance in respect of the current financial year and
the previous four financial years:
28
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Revenue
2021
23,190
2020
15,670
2019
2018
2017
49,133
41,306
11,532
Net (loss) after tax
(15,407,840)
(7,242,452)
(14,555,272)
(15,793,246)
(10,662,621)
Loss per share
Share price at year-end
(2.11)
0.115
(1.30)
0.115
(3.70)
0.052
(8.00)
0.120
(9.29)
0.355
Remuneration governance
The Company has a remuneration committee. The remuneration committee is made up of all
Directors and operates in accordance with the Nomination and Remuneration Committee
charter.
Non-executive director remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the
ability to attract and retain directors of the highest calibre, whilst incurring a cost that is
acceptable to shareholders.
The amount of aggregate remuneration sought to be approved by shareholders and the
manner in which it is apportioned amongst directors is reviewed annually. The Board considers
advice from external shareholders as well as the fees paid to non-executive directors of
comparable companies when undertaking the annual review process.
Each director receives a fee for being a director of the Company. As all directors serve on all
committees there is no additional fee for each Board committee on which a director sits.
Executive directors and key management personnel remuneration
The Board is responsible for determining the remuneration policies for the Executive Directors
and other key management personnel. The Board may seek external advice to assist in its
decision making. The Company’s remuneration policy for Executive Directors and key
management personnel is designed to motivate Executive Directors and senior executives to
pursue long term growth and success of the Company within an appropriate control framework
promote superior performance and long term commitment to the Company. The main
principles of the policy when considering remuneration are as follows:
• Executive Directors and key management personnel are motivated to pursue long term
growth and success of the Company within an appropriate control framework;
• interests of key leadership are aligned with the long-term interests of the Company’s
shareholders; and
• there is a clear correlation between performance and remuneration.
The remuneration policy for Executive Directors and other key management personnel has
three main components, fixed remuneration, short term incentives and longer term incentives.
29
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Fixed remuneration
Fixed remuneration is reviewed annually by the Board. The process consists of a review of
relevant comparative remuneration in the market and internally and, where appropriate,
external advice on policies and practices. The Committee has access to external, independent
advice where necessary.
Group’s Financial Performance and Link to Remuneration
The Key Management Personnel’s remuneration has a variable component for short term
incentives and long term incentives to link the achievement of the Company’s operational
targets with the remuneration received by Executive Directors and other key management
charged with meeting those targets.
Variable remuneration - Short-term incentives
The objective of short term incentives is to link the achievement of the Company’s operational
targets with the remuneration received by Executive Directors and other key management
charged with meeting those targets. The total potential short term incentive available is set at
a level so as to provide sufficient incentive to the Executive Directors and other key
management to achieve the operational targets and such that the cost to the Company is
reasonable in the circumstances.
Actual payments granted to Executive Directors and other key management depends on the
extent to which specific operating targets set by the Board are met.
At this time short term incentives in the form of cash bonuses have been included in some key
management personnel contracts as disclosed in this Remuneration Report.
The aggregate of annual payments available to Executive Directors and other key
management of the Company is subject to the approval of the Board.
Variable remuneration - Long-term incentives
The Company has an approved Performance Rights Plan designed to facilitate long term
incentive payments to employees in a manner that aligns this element of remuneration with
the creation of shareholder wealth.
At this time long term incentives in the form of Performance Rights have been included in some
Key management personnel contracts as disclosed in this Remuneration Report.
The aggregate of annual payments available to Executive Directors and other key
management of the Company is subject to the approval of the Board.
At the 21 November 2019 Annual General Meeting of the Company the shareholders approved
the issue of up to 4,000,000 Performance Rights to be issued in line with the Performance
Rights Plan as Long Term Incentives for the Managing Director.
30
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
On 17 July 2020 the Company issued of 264,443 new shares to Mr Andrew Munckton pursuant
to the satisfaction of Performance Rights vesting conditions related to the employment contract
as approved by the shareholders at the Company’s AGM on 21 November 2019.
At the 25 November 2020 Annual General Meeting of the Company the shareholders approved
the issue of up to 1,000,000 Performance Rights to be issued in line with the Performance
Rights Plan as Long Term Incentives for the Managing Director.
On 6 August 2021 the Company issued 443,404 new shares to the following executives
pursuant to the satisfaction of Performance Rights vesting conditions related to their
employment contracts and approved as required by the shareholders at the Company’s AGM
on 25 November 2020.
Executive
Andrew Munckton
Stephen Jones
Glenn Grayson
Shares Issued
317,992
66,371
59,041
443,404
The Company has not utilised a remuneration consultant in the current year.
Employment Contracts
Details of employment contracts currently in place with respect to directors and key
management personnel of the Company are as follows:
Giuseppe (Joe) Paolo Graziano, Non-Executive Chairman
• Director’s fees of $50,000 per annum.
• Long term incentives as granted by the Board as part of a grant of benefits to
Directors and subject to shareholder approval.
Andrew Munckton, Managing Director
• Base annual remuneration of $332,150 inclusive of statutory superannuation
contributions (Total Fixed Remuneration or TFR).
• Annual Short Term Incentives (STI) in the form of a cash payment up to 50% of the
TFR.
• Annual Long Term Incentives (STI) in the form of equity up to 30% of the TFR.
• The appointment will be on an ongoing basis with termination provisions summarised
below
The employment agreement may be terminated by either party with three months’
notice.
The employment agreement may be terminated by Kin Mining without notice for
serious misconduct or other circumstances justifying summary dismissal. In this
case only accrued legal entitlements will be paid.
31
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Brian Dawes, Non-Executive Director
• Director’s fees of $36,000 per annum inclusive of statutory superannuation
contributions.
• Long term incentives as granted by the Board as part of a grant of benefits to
Directors and subject to shareholder approval.
Hansjoerg Plaggemars, Non-Executive Director
• Director’s fees of $36,000 per annum.
• Long term incentives as granted by the Board as part of a grant of benefits to
Directors and subject to shareholder approval.
Nicholas Anderson, Non-Executive Director
• Director’s fees of $36,000 per annum.
• Long term incentives as granted by the Board as part of a grant of benefits to
Directors and subject to shareholder approval.
Stephen Jones, Chief Financial Officer & Company Secretary
• Base annual remuneration of $276,965 inclusive of statutory superannuation
contributions (Total Fixed Remuneration or TFR).
• Annual Short Term Incentives (STI) in the form of a cash payment up to 25% of the
TFR.
• Annual Long Term Incentives (STI) in the form of equity up to 20% of the TFR.
• The appointment will be on an ongoing basis with termination provisions summarised
below
The employment agreement may be terminated by either party with three months’
notice.
The employment agreement may be terminated by Kin Mining without notice for
serious misconduct or other circumstances justifying summary dismissal. In this
case only accrued legal entitlements will be paid.
If the employee is made redundant the employer will pay an amount of 6 months
on termination.
Glenn Grayson, Exploration Manager
• Base annual remuneration of $246,375 inclusive of statutory superannuation
contributions (Total Fixed Remuneration or TFR).
• Annual Short Term Incentives (STI) in the form of a cash payment up to 25% of the
TFR.
• Annual Long Term Incentives (STI) in the form of equity up to 20% of the TFR.
• The appointment will be on an ongoing basis with termination provisions summarised
below
The employment agreement may be terminated by either party with three months’
notice.
The employment agreement may be terminated by Kin Mining without notice for
serious misconduct or other circumstances justifying summary dismissal. In this
32
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
case only accrued legal entitlements will be paid.
If the employee is made redundant the employer will pay an amount of 6 months
on termination.
Chad Moloney, Mining Manager (appointed 1 July 2021)
• Base annual remuneration of $280,000 inclusive of statutory superannuation
contributions (Total Fixed Remuneration or TFR).
• Annual Short Term Incentives (STI) in the form of a cash payment up to 25% of the
TFR.
• Annual Long Term Incentives (STI) in the form of equity up to 20% of the TFR.
• The appointment will be on an ongoing basis with termination provisions summarised
below
The employment agreement may be terminated by either party with three month’s
notice.
The employment agreement may be terminated by Kin Mining without notice for
serious misconduct or other circumstances justifying summary dismissal. In this
case only accrued legal entitlements will be paid.
If the employee is made redundant the employer will pay an amount of 3 months
on termination.
Remuneration of Key Management Personnel
Short-term employee
benefits
Post-
employment
benefits
30 June 2021 Salary & fees
Other 1
Superannuation
Directors
G Graziano
B Dawes
$
$
$
55,833
37,671
-
-
A Munckton
310,456
110,025
H Plaggemars
N Anderson
Other KMP
S Jones
G Grayson
J Kelly
41,250
41,250
-
-
255,271
45,872
225,000
40,806
260,650
-
1,227,381
196,703
Share-based payments
Shares and
share
options4
Performance
Rights 2
Performance
Related 3
Total
%
$
64,250
64,250
$
$
-
120,083
105,500
-
29,038
471,213
54,250
54,250
-
-
-
-
-
95,500
95,500
8,296
331,133
7,380
294,561
-
282,344
237,000
44,714
1,795,834
-
-
30
-
-
16
20
-
-
3,579
21,694
-
-
21,694
21,375
21,694
90,036
1 Other benefits were paid in accordance with short term incentives in executive employment contracts approved and paid in
July 2021.
2 Performance Rights related to the year ended 30 June 2021 vested and were issued after year end. The value of performance
rights issued during the period is determined based on the share price at grant date times the number of shares that were
ultimately issued when the performance rights vested.
Percentage of performance based remuneration.
Share options issued to Directors were valued based on Black and Scholes option pricing model using the following inputs:
Grant date:
Expiry date:
Share price at grant date:
Exercise price:
Interest rate:
Volatility:
25/11/20
24/11/23
$0.1800
$0.2433
0.25%
110%
3
4
33
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
30 June
2020
Directors
J Kirkwood
G Graziano
B Dawes
A Munckton
N Anderson
H
Plaggemars
Other KMP
T Dixon
S Jones
G Grayson
J Kelly
A Pate
Short-term employee benefits
Post-employment
benefits
Salary & fees
Other
Superannuation
Share-based
payments
Performance
Rights
Performance
Related
Total
%4
$
3,805
45,084
30,411
288,797
30,300
30,300
181,5531
233,460
195,500
236,548
58,164
$
-
-
-
246,0002
-
-
-
-
-
-
-
$
361
-
2,889
24,963
-
-
15,2041
21,003
18,573
24,174
4,375
$
-
-
-
$
4,167
45,084
33,300
-
-
-
10,0493
569,809
45
-
-
-
-
-
-
-
30,300
30,300
196,757
254,463
214,073
260,722
62,539
-
-
-
-
-
-
-
-
1,333,922
246,000
111,542
10,049
1,701,513
1 Mr. T Dixon received $2,739 for Director’s fees and $260 of related superannuation for July 2019 prior to his resignation as
a Director on 31 July 2019.
2 Other benefits were paid in accordance with short term incentives in executive employment contracts. $100,000 related to
short term incentives for the year ended 30 June 2019 (less than the maximum 50% contracted value) that were approved
and paid in November 2019 and $146,000 related to short term incentives for the year ended 30 June 2020 (less than the
maximum 50% contracted value) approved and paid in July 2020.
Performance Rights related to the year ended 30 June 2020 vested and were issued after year end. The value of
performance rights issued during the period is determined based on the share price at grant date times the number of shares
that were ultimately issued when the performance rights vested
Percentage of performance based remuneration.
3
4
34
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Shareholdings of key management personnel
2021
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
Other KMP
S Jones
G Grayson
J Kelly
2020
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
J Kirkwood 1
Other KMP
S Jones
G Grayson
J Kelly
T Dixon 2
A Pate
Balance at
01/07/20
No.
9,559,220
1,476,362
308,853
649,999
150,000
361,219
56,000
-
Shares
Purchased
No.
Shares
Issued
No.
Shares
Acquisition
No.
Shares on
Resignation
No.
Balance at
30/06/21
No.
1,000,780
393,464
435,145
350,001
220,274
-
51,000
-
142,463
142,463
264,443
85,478
85,478
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,742,463
2,012,289
1,008,441
1,085,478
455,752
361,219
107,000
-
15,772,642
12,561,653
2,450,664
720,325
Balance at
01/07/19
No.
8,843,750
805,655
52,313
-
-
3,260,295
194,099
-
-
12,352,660
-
Shares
Purchased
No.
Shares
Issued
No.
Shares
Acquisition
No.
Shares on
Resignation
No.
Balance at
30/06/20
No.
-
570,000
250,000
621,999
150,000
-
-
56,000
-
-
-
755,470
100,707
6,540
28,000
-
-
167,120
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,260,295)
-
-
-
(12,352,660)
-
9,559,220
1,476,362
308,853
649,999
150,000
-
361,219
56,000
-
-
-
25,508,772
1,647,999
1,057,837
-
(15,612,955)
12,561,653
1 Mr Kirkwood resigned on 1 August 2019.
2 Mr Dixon ceased employment on 30 April 2020.
35
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Option holdings of key management personnel
2021
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
KMP
S Jones
J Kelly
G Grayson
2020
Directors
G Graziano
B Dawes
A Munckton
J Kirkwood
KMP
S Jones
J Kelly
G Grayson
A Pate
T Dixon1
Balance
at 01/07/20
No.
5,000,000
-
-
-
-
-
-
-
5,000,000
Balance
at 01/07/19
No.
5,000,000
-
-
-
-
-
-
-
6,000,000
11,000,000
Options
Purchased
No.
Options
Disposed
No.
Options
Issued
No.
Options on
Resignation
No.
Balance
at 30/06/21
No.
-
-
-
-
-
-
-
-
-
(2,000,000)
-
-
-
-
-
-
-
500,000
500,000
-
500,000
500,000
-
-
-
(2,000,000)
2,000,000
-
-
-
-
-
-
-
-
-
3,500,000
500,000
-
500,000
500,000
-
-
-
5,000,000
Options
Purchased
No.
Options
Disposed
No.
Options
Issued
No.
Options on
Resignation
No.
Balance
at 30/06/20
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,000,000)
5,000,000
-
-
-
-
-
-
-
-
(6,000,000)
5,000,000
1 Mr Dixon ceased employment on 30 April 2020.
36
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Share-based remuneration granted as compensation
There was $44,714 recognised as a vesting expense on performance rights held by key
management personnel.
Performance Rights holdings of key management personnel
2021 – None
2020 – None
Four executives have performance rights included in their remuneration structures as
disclosed below.
Mr Andrew Munckton, Mr Stephen Jones, Mr Glenn Grayson and Mr Chad Moloney have
Annual Long Term Incentives (LTI) included in their employment contracts.
In November 2019 the shareholders agreed to grant June 2020 LTI’s in the form of
performance rights to Mr Andrew Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2019 – 30 June 2020
1 July 2020 – 30 June 2021
1 July 2021 – 30 June 2022
$32,500
$32,500
$32,500
In November 2020 the shareholders agreed to grant June 2021 LTI’s in the form of
performance rights to Mr Andrew Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2020 – 30 June 2021
1 July 2021 – 30 June 2022
1 July 2022 – 30 June 2023
$33,215
$33,215
$33,215
Mr Stephen Jones, Mr Glenn Grayson and Mr Chad Moloney have Long Term Incentives
(LTI) included in their employment contracts at 20% of their TFR.
37
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
General Details of the Performance Rights
The Performance Rights will, subject to meeting the Performance Measures, vest into shares
in the Company in accordance with the following formula.
$ value of the Performance Rights
Number of shares =
Volume Weighted Average Price (VWAP) of the Company’s shares over the 10 days
on which trading in the Employer’s shares occurred leading up to and including the
day prior to the vesting date
The Performance Rights will vest on satisfaction of the following performance conditions.
The Board will have the unfettered and absolute right to determine and confirm whether vesting
conditions have been met in respect of each and all tranches. In making its determination the
Board will recognise the relevant tranche objective at the end of the applicable vesting period
and have regard to implementation of the Business Plan, as well as other proposals endorsed
by the Board as part of its ongoing review of strategy.
Vesting conditions will be a shareholder aligned measure (Total Shareholder Return – TSR).
Vesting of each Tranche will be measured in absolute terms and relative terms against a
defined peer group approved by the Board which is reflective of companies in the same
industry with similar issues in respect of organisational size, market capitalisation, geography,
life cycle and project complexity as shown in the table below.
Tranche1
Vesting conditions (Tranche Objective)
Weighting
Tranche 1
Tranche 2
Tranche 3
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
50%
50%
50%
50%
50%
50%
1) The number of Performance Rights to be granted is calculated by dividing each tranche by the VWAP of
the Company’s Shares over the 10 days on which trading in the Company’s Shares occurred leading up
to and including the day prior to the vesting date.
Vesting of Performance Rights
After the end of the current financial year (year to 30 June 2021) the Board determined 85%
of the vesting conditions for Tranche 2 of the June 2020 LTI’s had been met for the current
year and 198,599 shares were issued on 6 August 2021.
After the end of the current financial year (year to 30 June 2021) the Board determined 50%
of the vesting conditions for Tranche 1 of the June 2021 LTI’s had been met for the current
year and 244,805 shares were issued on 6 August 2021.
There were no options exercised during the year.
38
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Share options
During the year 2,000,000 share options were granted to Directors as compensation or
remuneration.
At the Annual General Meeting of shareholders on 21 November 2019 the shareholders
approved the issue of up to 4,000,000 performance rights to the Managing Director Mr Andrew
Munckton in settlement of Long Term Incentives in line with the Executive Employment
Agreement for the year ended 30 June 2020. During the year ended 30 June 2020 the Board
of Directors determined that Mr Munckton had met the performance criteria set for the first
tranche of these performance rights to vest. As a result, the Company issued 264,443 shares
to Mr Munckton on 16 July 2020 after Mr Munckton exercised the performance rights that had
vested. After the year end the Board of Directors determined that Mr Munckton had met 85%
of the performance criteria set for the second tranche of these performance rights to vest. As
a result, the Company issued 198,599 shares to Mr Munckton on 6 August 2021 after Mr
Munckton exercised the performance rights that had vested.
At the Annual General Meeting of shareholders on 25 November 2020 the shareholders
approved the issue of up to 1,000,000 performance rights to the Managing Director Mr Andrew
Munckton in settlement of Long Term Incentives in line with the Executive Employment
Agreement for the year ended 30 June 2021. After the year end the Board of Directors
determined that Mr Munckton had met 50% of the performance criteria set for the first tranche
of these performance rights had been met. As a result, the Company issued 119,393 shares
to Mr Munckton on 6 August 2021 after Mr Munckton exercised the performance rights that
had vested.
Other executives have Long Term Incentives as part of their remuneration included in their
Executive Employment Agreements for the year ended 30 June 2021. After the year end the
Board of Directors determined that 50% of the performance criteria set for the first tranche of
these performance rights has been met. As a result, the Company issued 125,412 shares to
other executives on 6 August 2021 after those executives exercised the performance rights
that had vested.
Other transactions with Key Management Personnel (included in remuneration table)
Pathways Corporate Pty Ltd, a company of which Mr. Graziano is a Director, charged the
Group director fees of $55,833 (2020: $45,084), excluding GST, none of which was
outstanding at 30 June 2021 (2020: Nil). No interest was payable or accrued.
Burra Woolshed Investments Pty Ltd, a company of which Mr. Anderson is a Director, charged
the Group director fees of $41,250 (2020: $45,084), excluding GST, none of which was
outstanding at 30 June 2021 (2020: Nil). No interest was payable or accrued.
39
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Value Consult, a company of which Mr. Plaggemars is a Director, charged the Group director
fees of $41,250 (2020: $45,084), excluding GST, none of which was outstanding at 30 June
2021 (2020: Nil). No interest was payable or accrued.
Shares under option or issued on exercise of options
At the date of this report unissued ordinary shares or interests of the Company under option
are:
Date options granted
Number of shares under
option
Exercise price of option
Expiry date of option
15 September 2017
15 September 2017
2 December 2020
6,000,000
4,000,000
2,000,000
$1.00
$1.25
$0.2433
15 September 2021
15 September 2022
2 December 2023
There were no ordinary shares issued by the Company during or since the end of the financial
year as a result of the exercise of any options.
END OF REMUNERATION REPORT
40
DIRECTORS’ REPORT
Directors’ Meetings
The number of meetings of directors (including meetings of committees of directors) held
during the year and the number of meetings attended by each director were as follows:
Directors’ meetings
Meetings of Audit
Committee 1
Meetings of Remuneration
and Nomination Committee
1
Number of meetings held:
Number of meetings attended:
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
14
14
14
14
14
14
-
-
-
-
-
-
-
-
-
-
-
-
1The Audit Committee and Remuneration and Nomination Committee are made up of all Board members. Both committees
commenced function during the year but have not met physically as yet. They have conducted their work via circular resolutions.
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.
Non-Audit Services
Details of amounts paid or payable to the auditor for all services provided during the year by
the auditor are outlined in Note 21 to the financial statements. No non-audit services were
provided during the year ended 30 June 2021 (2020: $Nil).
Auditor Independence and Non-Audit Services
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide
the directors of the Company with an Independence Declaration in relation to the audit of the
financial report. This Independence Declaration is set out on page 44 and forms part of this
directors’ report for the year ended 30 June 2021.
Signed in accordance with a resolution of the directors.
Andrew Munckton
Managing Director
Perth, Western Australia
Dated this 30th day of August 2021
41
DIRECTORS’ REPORT
Competent Persons Statement (Mineral Resources Estimate)
The information contained in this report relating to Mineral Resource Estimation results for the Bruno Lewis, Hobby
and Cardinia Hill deposit relates to information compiled by Mr Mike Millard. Mr Millard is a member of the Australian
Institute of Geoscientists and a full time employee of Cube Consulting. Mr Millard has sufficient experience of
relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities
undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves".
The information contained in this report relating to Mineral Resource estimation results for the remainder of the
deposits including Kyte, Helens, Fiona, Rangoon, Mertons Reward, Mertondale 3-4, Tonto, Mertondale 5, Eclipse,
Quicksilver, Michelangelo, Leonardo, Forgotten Four and Krang relates to information compiled by Mr Jamie Logan.
Mr Logan is a member of the Australian Institute of Geoscientists and was until recently a full time employee of the
company. Mr Logan has sufficient experience of relevance to the styles of mineralisation and the types of deposit
under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012
edition of the JORC “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
Forward Looking Statements
This report contains “forward-looking information” that is based on the Company’s expectations, estimates and
projections as of the date on which the statements were made. This forward-looking information includes, among
other things, statements with respect to the feasibility and definitive feasibility studies, the Company’s’ business
strategy, plan, development, objectives, performance, outlook, growth, cash flow, projections, targets and
expectations, mineral reserves and resources, results of exploration and operational expenses. Generally, this
forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’,
‘anticipate’, ‘project’, ‘target’, ‘likely’,’ believe’, ’estimate’, ‘expect’, ’intend’, ’may’, ’would’, ’could’, ’should’,
’scheduled’, ’will’, ’plan’, ’forecast’, ’evolve’ and similar expressions. Forward- looking information is subject to
known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of
activity, performance or achievements to be materially different from those expressed or implied by such forward-
looking information. Forward-looking information is developed based on assumptions about such risks,
uncertainties and other factors set out herein.
This list is not exhausted of the factors that may affect our forward-looking information. These and other factors
should be considered carefully and readers should not place undue reliance on such forward-looking information.
The Company disclaims any intent or obligations to or revise any forward-looking statements whether as a result of
new information, estimates, or options, future events or results or otherwise, unless required to do so by law.
Statements regarding plans with respect to the Company’s mineral properties may contain forward-looking
statements in relation to future matters that can be only made where the Company has a reasonable basis for
making those statements. This announcement has been prepared in compliance with the JORC Code 2012 Edition
and the current ASX Listing Rules. The Company believes that it has a reasonable basis for making the forward-
looking statements in this announcement, including with respect to any mining of mineralised material, modifying
factors and production targets and financial forecasts.
42
CORPORATE GOVERANCE STATEMENT
The Board is committed to achieving and demonstrating the highest standards of corporate
governance. As such, Kin Mining NL and its controlled entities have adopted the fourth edition
of the Corporate Governance Principles and Recommendations which was released by the
ASX Corporate Governance Council in February 2019 and became effective for financial years
beginning on or after 1 January 2020.
The Group’s Corporate Governance Statement for the financial year ending 30 June 2021 is
dated as at 30 June 2021 and was approved by the Board on 26 August 2021. The Corporate
at
Governance
https://www.kinmining.com.au/about/governance/.
Kin Mining NL’s website
Statement
available
on
is
43
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Kin Mining NL for the year ended
30 June 2021, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 August 2021
L Di Giallonardo
Partner
44
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Continuing operations
Revenue:
Interest income
Other income
Loss on sale of assets
Depreciation and amortisation expense
Administration expenses
Consultant expenses
Employee expenses
Share based payment expense
Occupancy expenses
Travel expenses
Exploration and evaluation costs
Loss before income tax expense
Income tax benefit
Net loss for the year
Other comprehensive income, net of income tax
Other comprehensive income for the year, net of tax
Notes
2021
$
2020
$
2
10
2
11
3
23,190
80,953
(40,754)
(180,452)
(1,374,955)
(105,328)
(1,026,001)
(282,034)
(61,969)
(14,287)
(12,426,203)
(15,407,840)
-
15,670
53,360
(94,696)
(266,030)
(542,448)
(66,380)
(1,202,879)
(10,049)
(59,617)
(7,191)
(5,062,192)
(7,242,452)
-
(15,407,840)
(7,242,452)
-
-
-
-
Total comprehensive loss for the year
(15,407,840)
(7,242,452)
Basic and diluted loss per share (cents per share)
5
(2.11)
(1.30)
The accompanying notes form part of these consolidated financial statements.
45
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payments reserve
Accumulated losses
Total equity
Notes
2021
$
2020
$
7
8
9
10
12
14
13
15
7,443,297
157,609
45,714
7,646,620
1,665,997
28,071
39,280
1,733,348
10,329,110
10,329,110
17,975,730
10,383,469
10,383,469
12,116,817
1,628,866
-
1,628,866
1,500,000
1,500,000
3,128,866
14,846,864
864,586
1
864,587
1,500,000
1,500,000
2,364,587
9,752,230
88,755,629
2,030,571
(75,939,336)
14,846,864
68,455,189
1,828,537
(60,531,496)
9,752,230
The accompanying notes form part of these consolidated financial statements.
46
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Issued
capital
$
Accumulated
losses
$
Notes
Share
based
payments
reserve
$
Total equity
$
Balance as at 1 July 2019
62,863,653
(53,289,044)
1,818,488
11,393,097
Loss for the year
Total comprehensive loss for
the year
Share based payments
Shares issued during the year
Share issue costs
-
(7,242,452)
-
(7,242,452)
-
-
5,707,849
(116,313)
(7,242,452)
-
-
-
-
10,049
-
-
(7,242,452)
10,049
5,707,849
(116,313)
Balance as at 30 June 2020
68,455,189
(60,531,496)
1,828,537
9,752,230
Balance as at 1 July 2020
68,455,189
(60,531,496)
1,828,537
9,752,230
Loss for the year
Total comprehensive loss for
the year
Share based payments
Shares issued during the year
Share issue costs
-
(15,407,840)
-
(15,407,840)
-
80,000
20,541,083
(320,643)
(15,407,840)
-
-
-
-
202,034
-
-
(15,407,840)
282,034
20,541,083
(320,643)
Balance as at 30 June 2021
88,755,629
(75,939,336)
2,030,571
14,846,864
The accompanying notes form part of these consolidated financial statements.
47
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Cash flows from operating activities
Payments to suppliers and employees - exploration
Payments to suppliers and employees – administration
Royalty buyout
Government grants
Interest received
Net cash (outflow) from operating activities
Cash flows from investing activities
Proceeds from sale of plant and equipment
Payments for property, plant and equipment
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payments for share issue costs
Repayment of borrowings
Net cash inflow from financing activities
Net (decrease)/ increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Notes
2021
$
2020
$
(11,748,801)
(1,827,903)
(775,394)
80,953
23,190
(14,247,955)
(5,141,606)
(1,689,655)
-
-
15,670
(6,815,591)
115,843
(311,028)
(195,185)
222,353
(480,364)
(258,011)
20,541,084
(320,643)
(1)
20,220,440
5,707,849
(116,313)
-
5,591,536
5,777,300
1,665,997
7,443,297
(1,482,066)
3,148,063
1,665,997
7
7
7
The accompanying notes form part of these consolidated financial statements.
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
(a)
These financial statements are general purpose financial statements, which have been prepared in accordance with
the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and comply with other
requirements of the law.
The financial statements comprise the consolidated financial statements for the Group. For the purposes of preparing
the consolidated financial statements, the Company is a for-profit entity.
The accounting policies detailed below have been consistently applied to all of the years presented unless otherwise
stated. The financial statements are for the Group consisting of Kin Mining NL and its subsidiaries.
The financial statements have been prepared on a historical cost basis. Historical cost is based on the fair values
of the consideration given in exchange for goods and services.
The financial statements are presented in Australian dollars.
The Company is a listed public company, incorporated in Australia and operating in Australia. The Group’s principal
activities are gold and base metals exploration and gold project development.
Adoption of new and revised standards
(b)
Standards and Interpretations applicable to 30 June 2021
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting period. As
a result of this review, the Directors have determined that there is no material impact of the new and revised
Standards and Interpretations on the Group and, therefore, no change is necessary to Group accounting policies.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet adopted
for the year ended 30 June 2021. As a result of this review the Directors have determined that there is no material
impact of the Standards and Interpretations in issue not yet adopted on the Group and, therefore, no change is
necessary to Group accounting policies.
Statement of compliance
(c)
The financial report was authorised for issue on 30 August 2021.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting Standards
(IFRS).
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Significant accounting estimates and judgements
(d)
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the
period in which the estimate is revised if it affects only that period, or in the period of the revision and future periods
if the revision affects both current and future periods.
Mine development expenditure carried forward (included in assets in construction in Note 10)
The recoverability of the carrying amount of mine development expenditure carried forward has been reviewed by
the Directors. In conducting the review, the recoverable amount has been assessed by reference to the higher of
“fair value less costs to sell” and “value in use”. In determining value in use, future cash flows are based on:
•
Estimates of ore reserves and mineral resources for which there is a high degree of confidence of economic
extraction;
Estimated production and sales levels;
Estimate future commodity prices;
Future costs of production;
Future capital expenditure; and/or
Future exchange rates
•
•
•
•
•
Variations to expected future cash flows, and timing thereof, could result in significant changes to the impairment
test results, which in turn could impact future financial results.
Mine rehabilitation provision
The Group’s mining and exploration activities are subject to various laws and regulations governing the protection
of the environment. The Group recognises management’s best estimate for asset retirement obligations in the
period in which they are incurred. Actual costs incurred in the future periods could differ materially from the
estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount
rates could affect the carrying amount of this provision.
Share-based payment transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value is determined using a Black and Scholes model, using the
assumptions detailed in Note 16.
(e)
Going concern
Notwithstanding the fact that the Group incurred an operating loss of $15,407,840 for the year ended 30 June 2021,
had net cash outflow from operating activities of $14,247,955 and investing activities of $195,185 the directors are
of the opinion that the Group is a going concern for the following reasons.
The Directors anticipate that further equity raisings will be required in the forthcoming year to meet ongoing working
capital and expenditure commitments and are confident of their ability to raise the required funds when required.
Should the equity raisings not be completed, there is a material uncertainty that may cast significant doubt as to
whether the Group will be able to continue as a going concern and that it will be able to realise its assets and
extinguish its liabilities in the normal course of business and at the amount stated in the financial report.
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of consolidation
(f)
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
by the Company and its subsidiaries. Control is achieved when the Company:
•
•
•
has power over the investee;
is exposed, or has rights, to variable returns from its involvement in with the investee; and
has the ability to its power to affect its returns.
The Company reassess whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements listed above.
When the Company has less than a majority of the voting rights in an investee, it has the power over the investee
when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee
unilaterally. The Company
considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights are sufficient
to give it power, including:
•
•
•
the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other
vote holders;
potential voting rights held by the Company, other vote holders or other parties; rights arising from other
contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current
ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at
previous shareholder meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of comprehensive income from the date the Company
gains control until the date when the Company ceases to control the subsidiary.
Changes in the Group’s ownership interest in existing subsidiaries
Changes in the Group’s ownership interest in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-
controlling interests are adjusted to reflect the changes in their relative interests in subsidiaries. Any difference
between the amount paid by which the non-controlling interests are adjusted and the fair value of the consideration
paid or received is recognised directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the
difference between:
•
•
The aggregate of the fair value of the consideration received and the fair value of any retained interest; and
The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-
controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for
as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit and
loss or transferred to another category of equity as specified/permitted by the applicable AASBs). The fair value of
any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on
initial recognition for subsequent accounting under AASB 9, when applicable, the cost on initial recognition of an
investment in an associate or a joint venture.
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue recognition
(g)
Revenue is recognised to the extent that control of the good or service has passed and it is probable that the
economic benefits will flow to the Group and the revenue is capable of being reliably measured. The following
specific recognition criteria must also be met before revenue is recognised.
Interest income
Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying
amount of the financial asset.
Income tax
(h)
Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and
liabilities and their carrying amounts for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding
a business combination, where there is no effect on accounting or taxable profit or loss. No deferred income tax will
be recognised in respect of temporary differences associated with investments in subsidiaries if the timing of the
reversal of the temporary difference can be controlled and it is probable that the temporary differences will not
reverse in the near future.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to items
that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax
assets and unused tax losses to the extent that it is probable that future tax profits will be available against which
deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax
laws) that have been enacted or substantially enacted at the balance date and the anticipation that the Group will
derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and
only recognised to the extent that sufficient future assessable income is expected to be obtained. Income taxes
relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive
income.
Tax consolidation legislation
Kin Mining NL and its 100% owned Australian resident subsidiaries have implemented the tax consolidation
legislation. Current and deferred tax amounts are accounted for in each individual entity as if each entity continued
to act as a taxpayer on its own.
Kin Mining NL recognises its own current and deferred tax amounts and those current tax liabilities, current tax
assets and deferred tax assets arising from unused tax credits and unused tax losses which it has assumed from its
controlled entities within the tax consolidated Group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
amounts payable or receivable from or payable to other entities in the Group. Any difference between the amounts
receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from)
controlled entities in the tax consolidated Group.
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Other taxes
(i)
Revenues, expenses and assets are recognised net of the amount of GST except:
•
•
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are
classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
Impairment of non-financial assets
(j)
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of
the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and
its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets of the Group. In such cases the asset is tested for impairment as
part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its
recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses relating to continuing operations are recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is
treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount,
in which case the reversal is treated as a revaluation increase.
After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying
amount, less any residual value, on a systematic basis over its remaining useful life.
Cash and cash equivalents
(k)
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank
overdrafts are shown within borrowings in current liabilities in the statement of financial position.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property, plant and equipment
(l)
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing
the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount
of the plant and equipment as a replacement only if it is eligible for capitalisation.
Land and buildings are measured at cost less accumulated depreciation on buildings and less any impairment losses
recognised after the date of the revaluation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Buildings
Plant and equipment
Motor Vehicles
Computer equipment
Mine Properties (assets in construction)
5 to 25 years
5 to 20 years
5 years
2 to 3 years
amortised over units of
production
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each
financial year end.
Impairment
The carrying values of property, plant and equipment are reviewed for impairment at each balance date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may
be impaired.
The recoverable amount of property, plant and equipment is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for the
cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to approximate
fair value.
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable
amount. The asset or cash-generating unit is then written down to its recoverable amount.
Impairment losses are recognised in the statement of comprehensive income as a separate line item.
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Derecognition and disposal
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
Trade and other receivables
(m)
Trade and other receivables are measured on initial recognition at fair value and are subsequently measured at
amortised cost using the effective interest rate method, less any allowance for impairment. Trade receivables are
generally due for settlement within periods ranging from 15 days to 30 days.
The Group measures the loss allowance for trade and other receivables at an amount equal to lifetime expected
credit loss. The expected credit losses on trade and other receivables are estimated with reference to past default
experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are
specific to the debtor, general economic conditions of the industry in which the debtor operates and an assessment
of both the current and the forecast direction of conditions at the reporting date.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m)
Trade and other receivables (continued)
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery; for example, when the debtor has been placed under
liquidation or has entered into bankruptcy proceedings, or when the trade receivables are over two years past due,
whichever occurs earlier. The impairment 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 impairment loss is recognised in the profit or loss with other expenses when a trade receivable
for which an impairment allowance had been recognised becomes uncollectible in subsequent period, it is written
off against the allowance account. Subsequent recoveries of amounts previous written off are credited against other
expenses in the profit or loss.
Inventories
(n)
Gold bullion are physically measured or estimated and stated at the lower of cost and net realisable value. Cost
comprises direct material, direct labour and an appropriate proportion of variable and fixed overhead expenditure,
the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of
inventory on the basis of weighted average costs in getting such inventories to their existing location and condition,
based on weighted average costs incurred during the period in which such inventories were produced. Net realisable
value is the estimated selling price in the ordinary course of business, less estimated costs of completion and costs
of selling the final product.
Trade and other payables
(o)
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services. Trade and other payables
are presented as current liabilities unless payment is not due within 12 months.
Borrowings
(p)
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees
paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the
fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
The fair value of the liability portion of a convertible note is determined using a market interest rate for an equivalent
non-convertible note. This amount is recorded as a liability on an amortised cost basis until extinguished on
conversion or maturity of the note. The remainder of the proceeds is allocated to the conversion option. This is
recognised and included in shareholders’ equity, net of income tax effects.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred
or liabilities assumed, is recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting period.
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Provisions
(q)
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating
losses.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the statement of comprehensive income net of any reimbursement.
Provisions are measured at the present value or management’s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects
the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as an interest
expense.
Restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of
development activities undertaken, it is probable that an outflow of economic benefits will be required to settle the
obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the
costs of abandoning sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required to
settle the restoration obligation at the balance date. Future restoration costs are reviewed annually and any changes
in the estimate are reflected in the present value of the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is expensed in the statement of comprehensive
income, or capitalised if asset recognition criteria are met. Changes in the estimate of the provision for restoration
and rehabilitation are treated in the same manner. The unwinding of the effect of discounting on the provision is
recognised as a finance cost.
(r)
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave
expected to be settled within 12 months of the balance date are recognised in other payables in respect of
employees’ services up to the balance date. They are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are
measured at the rates paid or payable.
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave
not expected to be settled within 12 months of the balance date are recognised in non-current other payables
in respect of employees’ services up to the balance date. They are measured as the present value of the estimated
future outflows to be made by the Group.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees up to the balance date.
Consideration is given to expected future wage and salary levels, experience of employee departures, and period
of service. Expected future payments are discounted using market yields at the balance date on national government
bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
Issued capital
(s)
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 for the acquisition of a new business are not included in the cost of acquisition as part of
the purchase consideration.
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Earnings/ loss per share
(t)
Basic earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted to
exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
Diluted earnings/loss per share is calculated as net profit/loss attributable to members of the parent, adjusted for:
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
•
Exploration and evaluation
(u)
Exploration and evaluation expenditure is expensed to the profit or loss as incurred except in the following
circumstance in which case the expenditure may be capitalised:
•
The existence of mineral deposit has been established however additional expenditure is required to
determine the technical feasibility and commercial viability of extraction and it is anticipated that future
economic benefits are more likely than not to be generated as a result of the expenditure.
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. An impairment exists when the carrying value of expenditure exceeds
its estimated recoverable amount. The area of interest is then written down to its recoverable amount and the
impairment losses are recognised in the statement of comprehensive income.
The directors believe that this policy results in more relevant and reliable information in the financial report.
Exploration and evaluation assets are inherently uncertain and expensing as incurred results in a more transparent
statement of financial position and statement of profit or loss and comprehensive income. All exploration and
evaluation expenditure in the current period has been expensed to the profit or loss.
Parent entity financial information
(v)
The financial information for the parent entity, Kin Mining NL, disclosed in Note 20 has been prepared on the same
basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity’s
financial statements.
Share-based payments
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings in the
Group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services
received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase
to investment in subsidiary undertakings, with a corresponding credit to equity.
(w)
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant
will be received and the Group will comply with all attached conditions.
Government grants relating to costs are deferred and recognised in the statement of profit or loss and other
comprehensive income over the period necessary to match them with the costs that they are intended to
compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities
as deferred income and are credited to statement of profit or loss and other comprehensive income on a straight-
line basis over the expected lives of the related assets.
Government grants are presented as other income in the statement of profit or loss and other comprehensive
income.
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(x)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or
before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except
where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing
the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset
at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to
impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
(y)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments
comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index
or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when
the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable
lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
(z)
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, performance rights or options over shares, that are provided to
employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange
of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with
non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to
receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over
the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the
award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period.
The amount recognised in the statement of profit or loss and other comprehensive income for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(z)
Share-based payments (continued)
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as
follows:
•
•
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
All changes in the liability are recognised in the statement of profit or loss and other comprehensive income. The
ultimate cost of cash-settled transactions is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all
other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that increases
the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated
as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the
vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled
and new award is treated as if they were a modification.
NOTE 2: REVENUE AND EXPENSES
Included in the loss for the year are the following items of revenue and expenses:
Revenue
Other income:
•
•
Government grants
Other income
Expenses
•
•
•
Loss on sale of assets
Short term rentals
Buy back of Sprott Royalty
2021
$
2020
$
80,030
923
80,953
50,000
3,360
53,360
2021
$
2020
$
40,754
61,969
775,394
-
46,167
-
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 3: INCOME TAX
The prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income tax
expense in the financial statements as follows:
Loss before income tax
Income tax expense calculated at 30% (2020: 30%)
Tax effect of amounts which are not deductible/(taxable) in
calculating taxable loss:
•
Effect of expenses that are not deductible in
determining taxable loss
Effect of unused tax losses and tax offsets not
recognised as deferred tax assets
•
Income tax benefit reported in the consolidated statement of
profit or loss and other comprehensive income
2021
$
2020
$
(15,407,840)
(7,242,452)
(4,622,352)
(2,172,736)
84,610
62,114
4,537,742
2,110,622
-
-
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities
on taxable profits under Australian tax law. There has been no change in this tax rate since the previous reporting
period.
The Company and its subsidiaries are part of an income tax consolidated group. The Company’s unused tax losses
arising in Australia including the current year losses is $20,579,764 (2020: $15,545,125). These tax losses are
available indefinitely for offset against future taxable profits, subject to the Company passing the regulatory tests for
continued use of the tax losses.
NOTE 4: SEGMENT REPORTING
Operating segments are identified on the basis of internal reports about components of the Group that are reviewed
by the chief operating decision maker (deemed to be the Board of Directors) in order to allocate resources to the
segment and assess its performance. During the period, the Group operated predominantly in one business and
geographical segment being mineral exploration in Australia. Accordingly, under the “management approach”
outlined, only one operating segment has been identified and no further disclosure is required in the notes.
NOTE 5: LOSS PER SHARE
Basic/diluted loss per share
2021
Cents per
share
2020
Cents per
share
(2.11)
(1.30)
The loss and weighted average number of ordinary shares used in the calculation of basic/diluted loss per share is
as follows:
Loss for the year
Weighted average number of ordinary shares for the
purpose of basic/dilutive earnings per share
$
(15,407,840)
$
(7,242,452)
731,886,775 555,441,646
The potential ordinary shares that could be dilutive in the future are the options discussed at Note 16.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 6: DIVIDENDS
No dividends have been paid or declared since the start of the financial year and the directors do not recommend
the payment of a dividend in respect of the financial year.
NOTE 7: CASH AND CASH EQUIVALENTS
Reconciliation to the Statement of Cash Flows:
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash on hand and at bank
and investments in money market instruments, net of outstanding bank overdrafts.
Cash and cash equivalents as shown in the statement of cash flows is reconciled to the related items in the statement
of financial position as follows:
Cash at bank and on hand
Short-term deposits
2021
$
4,413,297
3,030,000
7,443,297
2020
$
1,635,997
30,000
1,665,997
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and 3 months, depending on the immediate
cash requirements of the Group, and earn interest at the respective short-term deposit rates.
Reconciliation of net loss for the year to net cash flows from operating activities
Net loss for the year
Depreciation and amortisation of non-current assets
Loss on sale of plant and equipment
Purchase of tenements (expensed)
Share based payment
(Increase)/decrease in assets:
Trade and other receivables
Increase/(decrease) in liabilities:
Trade and other payables
Net cash outflow from operating activities
Changes in liabilities arising from financing activities
Balance as at 30 June 2020
Extinguishment of borrowings
Balance as at 30 June 2021
2021
$
(15,407,840)
180,452
40,754
-
282,034
2020
$
(7,242,452)
266,030
94,696
30,000
10,049
(150,075)
1,082
806,720
(14,247,955)
25,004
(6,815,591)
Sprott Credit
Facility
$
Total
$
1
(1)
-
1
(1)
-
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 8: TRADE AND OTHER RECEIVABLES
Other debtors (GST)
Other debtors
Aging of past due but not impaired
There are no past due amounts at the reporting date.
NOTE 9: OTHER ASSETS
Current
Prepayment – others
NOTE 10: PROPERTY, PLANT AND EQUIPMENT
2021
$
2020
$
148,259
9,350
157,609
28,071
-
28,071
2021
$
2020
$
45,714
45,714
39,280
39,280
Freehold
land and
buildings
$
2,986,457
-
-
(42,332)
2,944,125
-
(44,399)
2,899,726
Assets in
construction
Plant and
equipment
Motor Vehicles
Total
$
$
$
$
6,440,642
374,907
-
-
6,815,549
76,595
-
-
6,892,144
543,330
30,561
(63,325)
(103,505)
407,061
38,960
(46,921)
(85,768)
313,332
584,180
6,470
(253,723)
(120,193)
10,554,609
411,938
(317,048)
(266,030)
216,734
10,383,469
57,459
-
(50,285)
223,908
173,014
(46,921)
(180,452)
10,329,110
Balance at 1 July 2019
Additions
Disposal
Depreciation charge for the year
Balance at 30 June 2020
Additions
Disposal
Depreciation charge for the year
Balance at 30 June 2021
The useful life of the assets was estimated as follows for both 2021 and 2020:
Buildings
Plant and equipment
Motor vehicles
Computer equipment
5 to 25 years
5 to 20 years
5 years
2 to 3 years
Assets in construction comprise early works on the CGP gold processing plant and will be depreciated over the
life of the plant once production commences.
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase – at cost
Cumulative exploration and evaluation at beginning of year
Expenditure incurred - cash
Cumulative exploration and evaluation expenditure at the
end of the year
Exploration and evaluation expenditure expensed to the
statement of profit or loss and other comprehensive income
in the current period
2021
$
2020
$
38,387,059
12,426,203
33,324,867
5,062,192
50,813,262
38,387,059
(12,426,203)
(5,062,192)
Exploration and evaluation expenditure carried forward on
the statement of financial position
-
-
NOTE 12: TRADE AND OTHER PAYABLES
Current
Trade payables (i)
Other payables and accrued expenses
Annual leave
2021
$
2020
$
797,833
707,032
124,001
1,628,866
397,773
353,050
113,763
864,586
(i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
NOTE 13: PROVISIONS
Non-Current
Restoration and rehabilitation provision
2021
$
2020
$
1,500,000
1,500,000
1,500,000
1,500,000
Kin has an obligation to certain rehabilitation activities from historical exploration and mining activities. A closure
cost estimate for these activities has been prepared as follows:
Calculation of required provision:
• All historical areas of disturbance have been incorporated in this calculation.
• Each historical disturbance has been planned for the type of activities to complete the rehabilitation of that
disturbance.
• The unit rates used to estimate the cost of rehabilitation for each type of rehabilitation activity has not
changed from the prior years’ estimate.
• The unit rates assume local Leonora operators conduct the activities.
• The provision though relating to historical activities is not current as it is anticipated that the rehabilitation
will not occur until throughout and at the end of the proposed mine life. The available resources support a
possible 8-year life of mine.
• The provision is adequately and appropriately estimated at $1.5M.
• Current exploration areas are rehabilitated at the end of the exploration program (within 6 months in
accordance with POW conditions).
The closure costs have been discounted using an 8% discount rate.
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 14: BORROWINGS
Current
Secured
Sprott Credit Facility (i)
Total borrowings
Summary of borrowing arrangements
2021
$
2020
$
-
-
1
1
(i) The Company entered into a credit agreement (original credit facility) with Sprott Private Resource Lending
(Collector), LP (Sprott) to provide a USD$27M senior secured credit facility to be used for the construction of the
100% owned Leonora Gold Project in December 2017. Prior to 31 December 2019 the loan facility from Sprott
Private Resource Lending (Collector), LP was withdrawn by Sprott due to a closure of the Sprott financing fund.
During the current period the remaining $1 liability was settled on cancellation of the documentation. In addition
the Company purchased the attached Sprott royalty from Sprott during the year for $775,394 (US$600,000).
NOTE 15: ISSUED CAPITAL
Ordinary shares issued and fully paid
88,755,629
68,455,189
2021
$
2020
$
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one
vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Movement in ordinary shares on issue
Movements in ordinary shares
Balance at beginning of year
Rights issues / SPP
2021
2020
No.
$
No.
$
629,690,835
9 483,371,337
68,455,18
62,863,65
3
153,904,932
18,904,69
6
63,447,130
2,220,649
Placement of shares
14,876,249
1,636,387
82,872,368
3,487,200
Shares issued on vesting of performance rights
Shares issued to Directors as remuneration
Share issue costs
Balance at end of year
264,443
455,882
-
80,000
-
(320,643)
-
-
-
799,192,341
88,755,62
9
629,690,835
-
-
(116,313)
68,455,18
9
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 16: OPTIONS AND PERFORMANCE RIGHTS
Movement in options on issue
2021
2020
No.
Weighted
average exercise
price
$
No.
Weighted
average exercise
price
$
Balance at the beginning of the year
Options issued (i)
Options cancelled on expiry (ii) (iii)
Balance at the end of the year (iv)
19,000,000
2,000,000
(9,000,000)
12,000,000
0.934
0.243
0.750
0.957
25,000,000
-
(6,000,000)
19,000,000
0.778
-
0.285
0.934
i.
2021 – 2,000,000 Unlisted Options with an exercise price of $0.2433 and a 3 year expiry period were
issued on 2 December 2020 following approval at the 25 November 2020 AGM.
Share options issued to Directors were valued based on Black and Scholes option pricing model using the following
inputs:
Grant date:
Expiry date:
Share price at grant date:
Exercise price:
Interest rate:
Volatility:
25/11/20
24/11/23
$0.1800
$0.2433
0.25%
110%
ii. 2021 – 9,000,000 Unlisted options with an exercise price of $0.75 expired unexercised on 15 September
2020.
iii. 2020 - 1,000,000 Unlisted options with an exercise price of $0.36 expired unexercised on 15 January
2020 and 5,000,000 Unlisted options with an exercise price of $0.27 expired unexercised on 10 April
2020.
iv. The share options outstanding at the end of the year had an exercise price between $0.2433 and $1.25
and a weighted average remaining contractual life of 333 days.
Movement in performance rights on issue
2021
2020
No.
Value of
performance
rights
$
No.
Value of
performance
rights
$
Issued to Director
Issued to employees
10,049
-
Mr Andrew Munckton, Mr Stephen Jones and Mr Glenn Grayson have Annual Long Term Incentives (LTI) included
in their employment contracts.
264,443
-
317,992
125,412
29,038
15,676
In November 2019 the shareholders agreed to grant June 2020 LTI’s in the form of performance rights to Mr Andrew
Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2019 – 30 June 2020
1 July 2020 – 30 June 2021
1 July 2021 – 30 June 2022
$32,500
$32,500
$32,500
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 16: OPTIONS AND PERFORMANCE RIGHTS (cont)
In November 2020 the shareholders agreed to grant June 2021 LTI’s in the form of performance rights to Mr Andrew
Munckton in three tranches over three years as follows:
Tranche
Tranche 1
Tranche 2
Tranche 3
Performance Period
Maximum allocation of long term incentives
1 July 2020 – 30 June 2021
1 July 2021 – 30 June 2022
1 July 2022 – 30 June 2023
$33,215
$33,215
$33,215
Mr Stephen Jones and Mr Glenn Grayson have Annual Long Term Incentives (LTI) included in their employment
contracts at 20% of their TFR.
The Performance Rights will, subject to meeting the Performance Measures, vest into shares in the Company in
accordance with the following formula.
Number of shares =
Volume Weighted Average Price (VWAP) of the Company’s shares over the 10 days
on which trading in the Employer’s shares occurred leading up to and including the
day prior to the vesting date
$ value of the Performance Rights
The Performance Rights will vest on satisfaction of the following performance conditions.
The Board will have the unfettered and absolute right to determine and confirm whether vesting conditions have
been met in respect of each and all tranches. In making its determination the Board will recognise the relevant
tranche objective at the end of the applicable vesting period and have regard to implementation of the Business
Plan, as well as other proposals endorsed by the Board as part of its ongoing review of strategy.
Vesting conditions will be a shareholder aligned measure (Total Shareholder Return – TSR).
Vesting of each Tranche will be measured in absolute terms and relative terms against a defined peer group
approved by the Board which is reflective of companies in the same industry with similar issues in respect of
organisational size, market capitalisation, geography, life cycle and project complexity as shown in the table below.
Tranche1
Vesting conditions (Tranche Objective)
Weighting
Tranche 1
Tranche 2
Tranche 3
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
Company’s Absolute TSR
Company’s TSR relative to Peers
50%
50%
50%
50%
50%
50%
1) The number of Performance Rights to be granted is calculated by dividing each tranche by the VWAP of
the Company’s Shares over the 10 days on which trading in the Company’s Shares occurred leading up
to and including the day prior to the vesting date.
After the end of the current financial year (year to 30 June 2021) the Board determined 85% of the vesting conditions
for Tranche 2 of the June 2020 LTI’s had been met for the current year and 198,599 shares were issued on 6
August 2021.
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 16: OPTIONS AND PERFORMANCE RIGHTS (cont)
After the end of the current financial year (year to 30 June 2021) the Board determined 50% of the vesting conditions
for Tranche 1 of the June 2021 LTI’s had been met for the current year and 244,805 shares were issued on 6
August 2021.
The value of performance rights issued during the period is determined based on the share price at grant date times
the number of shares that were ultimately issued when the performance rights vested
NOTE 17: FINANCIAL INSTRUMENTS
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.
The Group’s overall strategy remains unchanged from 2020. The capital structure of the Group consists of debt,
cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves
and retained earnings.
None of the Group’s entities are subject to externally imposed capital requirements.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as
tax, dividends and general administrative outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital
and the risks associated with each class of capital.
Categories of financial instruments
Financial assets
Cash and cash equivalents
Other debtors
Financial liabilities
Trade and other payables
Borrowings
2021
$
2020
$
7,443,297
9,350
7,452,647
1,408,949
-
1,408,949
1,665,997
-
1,665,997
864,586
1
864,587
The fair values of the Company’s financial assets and liabilities approximate their carrying values.
Financial risk management objectives
The Group is exposed to market risk (including currency risk, fair value interest rate risk and price risk), credit risk,
liquidity risk and cash flow interest rate risk.
The Group seeks to minimise the effect of these risks, where the risk is significant to the performance of the Group,
by using derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed
by the Group’s policies approved by the board of directors, which provide written principles on foreign exchange
risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the
investment of excess liquidity. Compliance with policies and exposure limits is reviewed by management on a
continuous basis. The Group does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
Market risk
The Company is not materially impacted by market risk other than share price risk related to future capital raisings.
There has been no other change to the Company’s exposure to market risks or the manner in which it manages and
measures the risk from the previous period.
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (continued)
Interest rate risk management
The Company and the Group are exposed to interest rate risk as entities in the Group borrow funds at both fixed
and floating interest rates. The Group does not consider floating rate borrowings to be material.
Equity price risk
The Company is not exposed to any equity price risk as it has no investments in such assets.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to
the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only
transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by
independent rating agencies where available and, if not available, the Group uses publicly available financial
information and its own trading record to rate its major customers. The Group’s exposure and the credit ratings of
its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst
approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the
risk management committee annually.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of
counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments is
limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses,
represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral
obtained.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate
liquidity risk management framework for the management of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching
the maturity profiles of financial assets and liabilities.
Fair value measurement
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into
three levels of a fair value hierarchy.
Valuation techniques are selected based on the characteristics of each instrument, with the overall objective of
maximising the use of market-based information. The finance team reports directly with the Board. Valuation
processes and fair value changes are discussed among the Board at least every year, in line with the Group’s
reporting dates.
The following table details the Company’s and the Group’s expected contractual maturity for its non-derivative
financial liabilities. These have been drawn up based on undiscounted contractual maturities of the financial liabilities
based on the earliest date the Group can be required to repay. The tables include both interest and principal cash
flows.
30 June 2021
Trade and other payables
Borrowings – interest bearing
Weighted
average
interest
rate
%
-
-
-
Less than
1 month
$
1,408,949
-
1,408,949
1 – 3
months
$
-
-
-
3 months
– 1 year
$
-
-
-
1 – 5
years
$
-
-
-
5+ years
$
-
-
-
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (continued)
30 June 2020
Trade and other payables
Borrowings – interest bearing
Weighted
average
interest
rate
%
-
(a)
-
Less than
1 month
$
864,586
-
864,586
1 – 3
months
$
3 months
– 1 year
$
1 – 5
years
$
5+ years
$
-
-
-
-
1
1
-
-
-
-
-
-
(a) The annual interest rate is 8.00%, plus the greater of US 12-month LIBOR or 1.00%
NOTE 18: COMMITMENTS AND CONTINGENCIES
Exploration expenditure commitments
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration assets
it has an interest in. Outstanding exploration commitments are as follows:
Within one year
After one year but not more than five years
More than five years
2021
$
2020
$
2,992,415
-
-
2,992,415
2,892,700
-
-
2,892,700
Contingencies
The Company has entered into various agreements that include royalty obligations in the event that certain
parameters are achieved. These parameters are production based such that the royalty is only paid when
production is made.
Other than as discussed above the Company has no further contingent liabilities or assets for the years ended 30
June 2021 or 30 June 2020.
NOTE 19: RELATED PARTY DISCLOSURE
The consolidated financial statements include the financial statements of Kin Mining NL and the subsidiaries listed
in the following table.
% Equity interest
Parent Investment
Navigator Mining Pty Ltd
Leonora Gold Plant Holdings Pty
Ltd
Leonora Gold Plant Pty Ltd
Kin East Pty Ltd
Kin West WA Pty Ltd
Kin Tenement Holdings Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Australia
Australia
Australia
2021
%
100
100
100
100
100
100
2020
%
100
100
100
100
100
100
2021
$
43,519,052
2020
$
32,779,636
864
11,102,845
3,531,058
5,174,226
883
864
11,102,845
2,813,250
4,309,783
610
Kin Mining NL is the ultimate Australian parent entity and ultimate parent of the Group.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and not disclosed in this note. Details of transactions between the Group and
other related entities are disclosed below.
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 19: RELATED PARTY DISCLOSURE (continued)
Other transactions with related parties
Pathways Corporate Pty Ltd, a company of which Mr. Graziano is a Director, charged the Group director fees of
$55,833 (2020: $45,084), excluding GST, none of which was outstanding at 30 June 2021 (2020: Nil). No interest
was payable or accrued.
Burra Woolshed Investments Pty Ltd , a company of which Mr. Anderson is a Director, charged the Group director
fees of $41,250 (2020: $45,084), excluding GST, none of which was outstanding at 30 June 2021 (2020: Nil). No
interest was payable or accrued.
Value Consult, a company of which Mr. Plaggemars is a Director, charged the Group director fees of $41,250 (2020:
$45,084), excluding GST, none of which was outstanding at 30 June 2021 (2020: Nil). No interest was payable or
accrued.
NOTE 20: PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Share based payment reserve
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive loss
Total comprehensive loss
2021
$
2020
$
7,646,621
58,598
7,705,219
1,733,348
70,346
1,803,694
1,248,987
-
1,248,987
783,257
1
783,258
88,755,630
2,030,571
(84,329,969)
6,456,232
68,455,189
1,828,537
(69,263,289)
1,020,437
2021
$
(15,066,680)
-
(15,066,680)
2020
$
(7,083,603)
-
(7,083,603)
The Parent Entity (Kin Mining NL) has no commitments or contingencies other than as disclosed in these Notes to
the Consolidated Financial Statements.
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 21: AUDITOR’S REMUNERATION
The auditor of Kin Mining NL is HLB Mann Judd.
Auditor of the parent entity
Audit or review of the consolidated financial statements
2021
$
2020
$
33,981
33,981
36,500
36,500
NOTE 22: KEY MANAGEMENT PERSONNEL
The aggregate compensation made to key management personnel of the Group is set out below:
Short-term employee benefits
Post-employment benefits
Share based payments
2021
$
1,424,084
90,036
281,714
1,795,834
2020
$
1,579,922
111,542
10,049
1,701,513
NOTE 23: SUBSEQUENT EVENTS
On 6 August 2021 the Company issued 317,992 shares to Mr Andrew Munckton on conversion of Performance
Rights. The Performance Rights vested on 9 July 2020 when the Company’s Directors determined that the
performance criteria required to be met for the vesting of the Performance Rights had been met. At the same time
the Directors determined that Mr Munckton had met the performance criteria required to achieve his Short Term
Incentive (STI) payments and authorised the payment of an STI for the 2020/21 year of $110,025.
On 6 August 2021 the Company also issued 66,371 shares to Mr Stephen Jones and 59,041 shares to Mr Glenn
Grayson on conversion of Performance Rights. The Performance Rights vested on 9 July 2020 when the Company’s
Directors determined that the performance criteria required to be met for the vesting of the Performance Rights had
been met. At the same time the Directors determined that Mr Jones and Mr Grayson had met the performance
criteria required to achieve his Short Term Incentive (STI) payments and authorised the payment of an STI for the
2020/21 year of $45,872 and $40,806 respectively.
These items were recorded in the Financial Statements to 30 June 2021.
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Kin Mining NL (the ‘Company’):
a.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001
including:
i.
ii.
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
performance for the year then ended; and
complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements.
b.
c.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.
This declaration is signed in accordance with a resolution of the board of directors.
Managing Director
Dated this 30th day of August 2021
72
INDEPENDENT AUDITOR’S REPORT
To the members of Kin Mining NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Kin Mining NL (“the Company”) and its controlled entities
(“the Group”), which comprises the consolidated statement of financial position as at 30 June 2021,
the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(e) in the financial report, which indicates that a material uncertainty
exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our
opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. In addition to the matter described in the Material
uncertainty related to going concern paragraph above, we have determined the matters described
below to be the key audit matters to be communicated in our report.
73
Key Audit Matter
How our audit addressed the key audit
matter
Carrying Value of the Cardinia Gold Project
(“CGP”)
Refer to Note 10
The CGP asset includes property, plant and
equipment with a carrying value of $9.79 million
and represents a significant asset to the Group.
We considered it necessary to assess whether
facts and circumstances existed to suggest that
the carrying amount of the CGP asset may
exceed its recoverable amount.
Our procedures included but were not limited
to:
- We obtained an understanding of the key
processes associated with management’s
review of the carrying value;
- We considered the Directors’ assessment
of potential indicators of impairment;
- We enquired with management, reviewed
reviewed
ASX announcements and
minutes of Directors’ meetings; and
- We assessed the appropriateness of the
disclosures included in the financial report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2021, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
74
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
-
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
75
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Kin Mining NL for the year ended 30 June 2021
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
30 August 2021
L Di Giallonardo
Partner
76
1. Shareholding
(a) Distribution schedule and number of holders of equity securities at 16 August 2021
1 -1,000
1,001 -
5,000
5,001 –
10,000
10,001 –
100,000
100,001
and over
Total
Fully Paid Ordinary Shares (KIN)
177
224
277
870
434
1,982
Unlisted Options – $1.00 15/09/21
Unlisted Options – $1.25 15/09/22
Unlisted Options – $0.2433
2/12/23
-
-
-
-
-
-
-
-
-
-
-
-
4
4
4
4
4
4
The number of holders holding less than a marketable parcel of fully paid ordinary shares at 31 August 2020 is
292.
(b) 20 largest holders of quoted equity securities as at 16 August 2021
The names of the twenty largest holders of fully paid ordinary shares (ASX Code: KIN) as at 16 August 2021
Rank Name
Number
Percentage
1 Delphi Unternehmensberatung Aktiengesellschaft
2 St Barbara Limited
3 BNP Paribas Nominees Pty Ltd
4 Cs Third Nominees Pty Limited
5 2invest Ag
6 Macs Australia Group Pty Ltd
7
IPARKS Property Group Pty Ltd
8 Sparta Ag
9 Felice Finale Pty Ltd
10 Mr Trevor John Dixon
11 Mostia Dion Nominees Pty Ltd
12 Giuseppe Paolo Graziano
13 Mr Luigi Antonio D'adamo + Mr Domenic Leo D'adamo
14 Mitchell Family Investments (Qld) Pty Ltd
15 Donnybrook Holdings Pty Ltd
16 Mr Marvyn John Fitton
17 Mr Josephus Antonio Groot
18 Ernio Eolini
19 Mr Josephus Groot + Mrs Christine Groot
20 Mr Anastasios Karafotias
Total
160,163,306
158,125,983
38,471,345
38,000,000
31,658,519
25,185,238
16,594,408
13,111,382
10,666,667
9,000,000
8,560,000
7,372,320
6,356,000
6,262,840
5,914,793
5,274,472
4,815,642
4,747,100
4,360,346
4,193,000
20.03
19.77
4.81
4.75
3.96
3.15
2.08
1.64
1.33
1.13
1.07
0.92
0.79
0.78
0.74
0.66
0.60
0.59
0.55
0.52
558,721,979
69.87
77
(c) Substantial Shareholders
Holder
1 Delphi Unterehmensberatung Aktiengesellschaft
2 St Barbara Limited
3 Mostia Dion
4 Michele Canci
Shares
Percent
204,821,825
25.61%
158,125,983
19.77%
58,938,520
45,463,406
7.37%
5.69%
(d) Unquoted Securities
The number of unquoted securities on issue at 16 August 2021:
Unquoted Securities
Number on Issue
Exercise Price
Expiry Date
Unquoted Options
Unquoted Options
Unquoted Options
6,000,000
4,000,000
2,000,000
$1.00
$1.25
$0.2433
15/9/21
15/9/22
2/12/23
(e) Voting Rights
Each fully paid ordinary share carries the rights of one vote per share.
(f) Restricted Securities
There are no restricted securities under ASX imposed escrow.
(g) On-Market Buy-Back
There is currently no on-market buy-back in place.
78
TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.20
MURRIN MURRIN
50 kms East of Leonora
Ownership
at end of Quarter
66.66%
100%
0%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
M39/279
M39/1121
M39/1136
M39/1141
P39/5112
P39/5113
P39/5176
P39/5177
P39/5178
P39/5179
P39/5180
P39/5861
P39/5862
P39/5863
P39/5864
MT FLORA
50 kms East North East of Leonora
Tenement ID
M39/1118
P39/5859
P39/5860
Ownership
at end of Quarter
100%
100%
100%
REDCASTLE
65 kms South West of Laverton
Tenement ID
M39/1108
P39/6118
Ownership
at end of Quarter
100%
100%
RANDWICK
45 kms North East of Leonora
Ownership
at end of Quarter
100%
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
M37/1316
M37/1343
P37/8000
P37/8965
P37/8966
P37/8967
P37/8968
P37/8969
P37/8970
P37/8971
P37/8972
P37/8973
P37/9320
P37/9321
P37/9322
P37/9323
P37/9324
P37/9325
79
DESDEMONA
20 kms South of Leonora Townsite
Tenement ID
Ownership
at end of Quarter
PIG WELL
25 kms East of Leonora Townsite
Tenement ID
Ownership
at end of Quarter
E37/1152
E37/1156
E37/1201
E37/1203
E37/1315
100%
100%
100%
100%
100%
E37/1326
100%
E40/283
100%
E40/323
100%
E40/366
100%
E40/369
M40/330
M40/346
P37/8350
P37/8390
P37/8500
P37/8504
P40/1464
P40/1540
E37/1152
E37/1156
100%
100%
100%
100%
100%
100%
100%
100%
0%
100%
100%
Desdemona
North Earn-in
underway
Desdemona
North Earn-in
underway
Desdemona
North and
Desdemona
South Earn-ins
underway
Desdemona
North and
Desdemona
South Earn-ins
underway
Desdemona
South Earn-in
underway
Desdemona
South Earn-in
underway
Desdemona
South Earn-in
underway
Desdemona
South Earn-in
underway
Desdemona
South Earn-in
underway
Desdemona
North Earn-in
underway
IRON KING / MT FOURACRE
45 kms North North West of Leonora
Tenement ID
E37/1134
M37/1327
P37/8359
P37/8414
P37/8415
P37/8455
P37/8458
P37/8459
P37/8460
P37/8461
P37/8491
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
P37/8948
P37/8949
P37/8950
P37/8951
P37/8952
100%
100%
100%
100%
100%
P37/8953
100%
P37/8954
100%
P37/8955
100%
P37/8956
100%
P37/8957
P37/8958
P37/8959
P37/8960
P37/8961
P37/8962
P37/8963
P37/8964
P37/8974
P37/8975
P37/8976
P37/8977
P37/8978
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
RAESIDE
8 kms East of Leonora Townsite
Tenement ID
E37/1300
Ownership
at end of Quarter
100%
80
Tenement ID
L37/106
L37/127
L37/128
L37/195
L37/196
L37/226
L37/232
L37/241
L37/242
L37/243
L37/244
M37/81
M37/82
M37/86
M37/88
M37/223
M37/227
M37/231
M37/232
M37/233
M37/277
M37/299
M37/300
M37/316
M37/317
M37/422
M37/428
M37/487
M37/594
M37/646
M37/720
M37/1284
M37/1303
M37/1304
M37/1315
M37/1318
M37/1319
M37/1323
M37/1325
M37/1328
M37/1329
M37/1330
M37/1331
M37/1332
M37/1333
M37/1340
M37/1342
M37/1345
M37/1358
P37/8223
P37/8536
P37/8537
P37/8538
P37/8539
P37/8540
P37/8541
P37/8542
P37/8543
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
0%
100%
100%
100%
100%
100%
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
CARDINIA / MERTONDALE
35 kms East & North East of Leonora Townsite
Tenement ID
P37/8737
P37/8738
P37/8739
P37/8740
P37/8741
P37/8742
P37/8743
P37/8744
P37/8795
P37/8938
P37/8939
P37/8940
P37/8941
P37/8942
P37/8943
P37/8944
P37/8945
P37/8946
P37/8947
P37/8988
P37/8989
P37/8990
P37/8991
P37/8992
P37/8993
P37/8994
P37/8995
P37/8996
P37/8997
P37/8998
P37/8999
P37/9000
P37/9001
P37/9002
P37/9003
P37/9004
P37/9008
P37/9009
P37/9010
P37/9122
P37/9123
P37/9124
P37/9125
P37/9126
P37/9127
P37/9128
P37/9129
P37/9130
P37/9131
P37/9132
P37/9133
P37/9134
P37/9135
P37/9136
P37/9137
P37/9158
P37/9166
P37/9170
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
Ownership
Tenement ID
Ownership
CARDINIA / MERTONDALE
35 kms East & North East of Leonora Townsite
81
P37/9171
P37/9172
P37/9173
P37/9221
P37/9222
P37/9223
P37/9224
P37/9225
P37/9226
P37/9227
P37/9228
P37/9229
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
P37/9230
P37/9231
P37/9232
P37/9326
P37/9327
P37/9328
P37/9509
P37/9510
P37/9511
at end of Quarter
100%
100%
100%
100%
100%
100%
0%
0%
0%
RAESIDE
8 kms East of Leonora Townsite
Tenement ID
L37/77
L37/125
M37/1298
E37/1402
Ownership
at end of Quarter
100%
100%
100%
100%
82