Kin Mining NL
ABN 30 150 597 541
Annual Report
30 June 2022
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
51
52
53
54
55
56
57
79
80
84
86
2
CORPORATE INFORMATION
ABN 30 150 597 541
Directors
Giuseppe (Joe) Paolo Graziano
Andrew Munckton
Brian Dawes
Hansjoerg Plaggemars
Nicholas Anderson
Robert Rowan Johnston
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 2022 Annual Report and to reflect on what has been a positive
and productive year for the Company, notwithstanding at-times a challenging market environment,
especially for the junior gold sector.
Against the backdrop of accelerating consolidation in the Leonora gold district in Western Australia, Kin
has continued to apply an exploration-driven strategy across our Leonora-based operations, with this
approach continuing to identify new discoveries and add significant tonnes and ounces to the Mineral
Resource inventory.
Ultimately, these activities have added further significant value to our flagship Cardinia Gold Project
(CGP), and we remain confident that Kin is well positioned to participate in the consolidation of assets in
the Leonora district.
The exploration activities undertaken throughout the year continued the “back-to-basics” exploration
philosophy which has seen our geology team perform some outstanding work – applying modern
geological thinking and drawing on the latest geophysical and remote-sensing techniques to continue to
enhance our geological understanding of the gold-bearing structures at the CGP.
Despite the challenges associated with Covid 19 and 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 achieve all the planned drilling activity across the
past 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 pandemic, with
all of its associated threats and challenges.
On 21 September 2022 we announced an increase of 132koz to our CGP Mineral Resource estimate to
1.41Moz of contained gold. The update was made possible by the exploration efforts throughout the year.
We completed 53,000m of drilling across a range of prospects at various stages of exploration including
23,000m of RC drilling and 2,000m of diamond drilling around Cardinia that contributed to the MRE
increase.
The majority of the MRE increase in the current year came from the Rangoon discovery within the Eastern
Corridor. Rangoon had 9,000m of drilling competed and resulted in an MRE of 2.29Mt at an average
grade of 1.29g/t for 94koz, an increase from 32koz previously.
Meanwhile, drilling on the Western Corridor at Pegasus (2,318m) and Eagle/Crow (12,038m) has outlined
areas that are now ready for in-fill and resource definition drilling.
At Mt Flora, located on the north-eastern fringe of our tenure, the Company completed 14,210m of drilling
to confirm the prospectivity of this new regional area. Further work is planned to continue the definition of
this exciting prospect.
In the north-west part of tenement package, at Iron King, 7,899m of drilling completed during the year has
begun to outline the extents of the prospective area that requires follow-up extensional and in-fill drilling.
The details of our multi-faceted exploration programs during the year – and the outstanding drilling results
we were able to consistently generate – are covered in the Operations Review in the body of this Annual
Report.
4
CHAIRMAN’S LETTER
Our exploration endeavours during the year underpinned a CGP Mineral Resource update to 34.5 million
tonnes at 1.27g/t for 1.41Moz of gold in September 2022.
Importantly, the higher-confidence Measured and Indicated components of the Mineral Resource continue
to feature strongly in the Mineral Resource Estimate with 60% of the contained ounces of gold coming
from Measured and Indicated Resource categories.
We believe that this high-quality inventory, located in the heart of the Tier-1 Leonora-Laverton region –
together with the untapped exploration upside within our large 777 square kilometre strategically located
ground-holding – will ultimately be the key drivers of value for our shareholders.
And we are not alone in that view.
Having previously welcomed ASX-200 listed gold miner, St Barbara Limited, as a significant shareholder,
it came as little surprise that St Barbara eventually presented a non-binding indicative offer (NBIO) to
acquire the Company.
While we were unable to achieve a meeting of the minds with regard to value through that NBIO process
– which resulted in St Barbara eventually withdrawing their offer –we remain confident that the quality of
our assets, and our approach to exploring and developing them, will continue to attract interest from
operators in the area.
We continue to monitor the developments in the Leonora / Laverton region and to position ourselves to
be a part of the future in this region. Our development activities include continuing to prepare existing
Mineral Resources and Ore Reserves for mining and processing either through our own stand-alone
processing facility or through one of the existing local facilities, should agreements be reached.
In this regard, the Board remains focused on achieving the best commercial outcome for our shareholders
in a reasonable timeframe.
With this in mind, as this report was being finalised we had just embarked on our Phase 6 drilling program
at the CGP, and we are continuing with our applications for mining approvals for our second open pit
development at Mertondale – demonstrating that we are building on a position of operational readiness
at Cardinia.
In closing, I strongly believe the increasing levels of corporate activity in the junior gold sector – and
particularly in and around Leonora – in the past 12 months have provided strong support for our strategy.
We will continue exploring to deliver new near-mine discoveries at the CGP and we expect to deliver
successive Mineral Resource updates and potential development proposals in the future.
None of these achievements would be possible without the hand work and professionalism of our small
but incredibly hard-working team, led by our 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 2022. 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
• Robert Rowan Johnston (appointed 15 July 2022)
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 30 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)
- Syntonic Ltd – Non-Executive Director (ASX:SYT)
- Ozz Resources Limited – Non-Executive Director (ASX:OZZ)
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 Limited (ASX:TLM), 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:
- Nil
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 Australian listed companies:
- Azure Minerals Limited – Non Executive Director (ASX:AZS)
- South Harz Potash Ltd – Non Executive Director (ASX:SHP)
- Altech Chemicals Limited – Non Executive Director (ASX:ATC)
- PNX Metals Limited – Non Executive Director (ASX:PNX)
- Gascoyne Resources Limited – Non Executive Director (ASX:GCY)
- Wiluna Mining Corporation Limited, Non-Executive Director (ASX:WMC)
- Geopacific Resources Limited, Non-Executive Director (ASX:GPR)
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 Robert Rowan Johnston, Non-Executive Director (appointed 15 July 2022)
Mr Johnston is a mining engineer with over 40 years’ resources industry experience, including significant
experience as a company director through executive and non-executive directorship roles. Mr Johnston
has held various senior executive roles in Australia and internationally, primarily in the gold sector, and
has experience in feasibility studies, company formations, construction, expansions and mergers.
Previous roles held by Mr Johnston include Acting Chief Executive Officer and Executive Director of
Operations for Mutiny Gold Limited, prior to its takeover by Doray Minerals Limited, and Executive
Director of Integra Mining Limited prior to its merger with Silver Lake Resources Limited.
Special Responsibilities:
- Member of the Audit Committee
- Member of the Remuneration and Nomination Committee
Directorships held in other Australian listed companies:
- Gascoyne Resources Limited – Chairman (ASX:GCY)
- Wiluna Mining Corporation Limited – Chairman (ASX:WMC)
Directorships held in other Australian listed companies in the past 3 years:
- Bardoc Gold Limited – Non Executive Director, resigned 22 April 2022
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
R Johnston
Fully paid ordinary shares
Number
11,203,925
2,321,873
1,749,144
641,253
1,431,402
-
Share options
Number
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.
9
DIRECTORS’ REPORT
OPERATIONS REPORT
The Company’s exploration and development assets are located approximately 30km north-east of
Leonora and approximately 250km north-northwest of Kalgoorlie in Western Australia.
Centred around the 100%-owned 1.41Moz Cardinia Gold Project (“CGP” or “the Project”), Kin has
777km2 of tenure in the heart of an active gold mining district that hosts several multi-million-ounce
operating gold mines including Sons of Gwalia, Granny Smith, Sunrise Dam, Mt Morgans, King of the
Hills, Thunderbox, Agnew 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.
There are three gold processing plants within 75km of the CGP with a combined processing capacity of
9.0Mtpa (Gwalia, KOTH and Mt Morgans). Kin seeks to explore its ground to discover gold rich ores to
process through either its own (yet to be built) processing plant or through gold processing agreements
with one of these mills.
Figure 1: Location of the Cardinia Gold Project including major mineral deposits in the region.
(Stated size of deposits includes historical production and current mineral resources.)
10
DIRECTORS’ REPORT
UPDATED MINERAL RESOURCE ESTIMATE
Kin delivered an updated Mineral Resource Estimate (MRE) for the CGP on 21 September
2022 comprising 34.5Mt at 1.27g/t Au for 1.41Moz, incorporating a new estimate for the
Rangoon deposit. The September 2022 MRE represents an increase of 132koz from the
previous Mineral Resource estimate announced on 23 September 2021 (“CGP Mineral
Resource Estimate Increases to 1.28Moz”).
The Rangoon MRE totals 2.29Mt at 1.29g/t Au for 94koz of contained gold and represents an
increase of 62koz from the previous Rangoon MRE.
The September 2022 MRE includes the same optimisation parameters used for all existing
mineralisation models. All open pit Mineral Resource Estimates are reported within optimised
shells using the costs, recoveries and geotechnical parameters as established in the 2019 Pre-
Feasibility Study (PFS) for the CGP and a gold price assumption of A$2,600/oz.
The MRE for all optimised resources was also extended into underground mining positions
below the open pit optimisation shells. At a 2.0g/t cut-off grade, this has added an additional
22koz. Collectively there has been an increase of the previous MRE announced on 23
September 2021 by a total of 3.36Mt at 1.22g/t for an additional 132koz of gold.
Table 1: Mineral Resource Estimate - September 2022.
Summary of the September 2022 Mineral Resource Estimate by Project area. See Table 2 and Table 3 for
details of individual deposit Mineral Resource estimates.
Full details of the Mineral Resource Estimate were provided in the Company’s ASX
Announcement dated 21 September 2022.
11
DIRECTORS’ REPORT
Project Area
Resource
Gold Price
(AUD)
Lower Cut
off (g/t
Au)
Measured Resources
Au
Au
(k Oz)
(g/t Au)
Tonnes
(Kt)
Indicated Resources
Au
Au
(k Oz)
(g/t Au)
Tonnes
(Kt)
Inferred Resources
Au
Au
(k Oz)
(g/t Au)
Tonnes
(Kt)
Cardinia Gold Project: Open Pit Mineral Resources: September 2022
Total Resources
Au
(g/t Au)
Au
(k Oz)
Tonnes
(Kt)
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
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
769
1.2
31
769
1.2
31
893
1,345
1,850
536
-
-
4,625
7,699
340
738
588
1,121
-
533
11,020
1,163
404
111
383
2,059
Open Pit TOTAL
769
1.2
31
17,704
2.1
1.8
1.1
1.6
-
-
1.6
1.0
1.5
2.1
1.3
1.1
-
2.2
1.2
2.0
2.4
2.1
1.6
2.0
1.4
62
80
68
27
-
-
237
257
17
50
25
40
-
38
428
74
31
7
20
133
1,987
1,048
1,145
892
765
1,202
7,039
3,594
114
337
215
1,153
582
1,702
7,696
449
212
148
57
866
797
15,601
0.6
1.0
1.2
1.2
1.0
1.1
1.0
0.9
0.9
1.9
1.2
1.4
1.3
1.1
1.1
2.1
1.9
2.1
1.8
2.0
1.1
41
32
45
34
24
42
219
100
3
21
8
53
23
62
271
31
13
10
3
57
2,879
2,393
2,996
1,428
765
1,202
11,664
12,063
453
1,075
803
2,274
582
2,235
19,485
1,612
615
259
440
2,925
547
34,074
1.1
1.5
1.2
1.3
1.0
1.1
1.2
1.0
1.4
2.1
1.3
1.3
1.3
1.4
1.2
2.0
2.2
2.1
1.7
2.0
1.3
103
112
113
62
24
42
456
388
20
71
34
94
23
100
729
105
44
17
23
189
1,374
Date
Announced
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
17-May-21
26-Nov-20
26-Nov-20
26-Nov-20
21-Sep-22
17-May-21
22-Sep-21
26-Nov-20
26-Nov-20
26-Nov-20
26-Nov-20
Table 2: Cardinia Gold Project Open Pit Mineral Resource estimate. 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 Cube Consulting,
and also reported in accordance with JORC 2012 using a 0.4g/t Au cut-off within AUD2,600 optimisation shells.
Cardinia Gold Project: Underground Mineral Resources: September 2022
Lower Cut
off (g/t
Au)
Measured Resources
Au
Au
(k Oz)
(g/t Au)
Tonnes
(Kt)
Indicated Resources
Au
Au
(k Oz)
(g/t Au)
Tonnes
(Kt)
Inferred Resources
Au
Au
(k Oz)
(g/t Au)
Tonnes
(Kt)
Total Resources
Au
(g/t Au)
Au
(k Oz)
Tonnes
(Kt)
Project Area
Mertondale
Mertons Reward
Mertondale 3-4
Quicksilver
Subtotal Mertondale
Cardinia
Bruno/Lewis
Helens
Fiona
Rangoon
Cardinia Hill
Subtotal Cardinia
Raeside
Michaelangelo
Leonardo
Forgotten Four
Krang
Subtotal Raeside
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
3.7
2.2
1.5
7.4
3.7
1.8
2.6
2.2
2.2
2.4
2.7
2.7
0.3
0.2
0.1
0.6
0.3
0.2
2.2
3.0
0.2
2.2
3.0
0.2
5.5
2.7
0.5
5.2
2.2
24.9
31.3
63.5
76.4
2.4
2.5
2.7
2.5
2.6
2.6
0.4
0.2
2.2
2.5
5.3
6.3
6.8
1.9
8.8
14.7
44.9
10.0
10.6
126.0
206.1
56.8
27.0
9.2
92.9
307.8
2.8
2.3
2.7
2.7
2.8
2.4
2.8
2.6
2.7
2.4
2.6
2.6
2.5
2.6
0.6
0.1
0.8
1.3
4.1
0.8
1.0
10.7
17.8
4.3
2.3
0.8
7.4
10.5
2.7
3.5
16.7
18.4
46.6
10.0
10.9
126.0
212.0
62.0
29.2
24.9
40.5
156.5
25.9
385.2
2.7
2.2
2.2
2.6
3.0
2.8
2.4
2.8
2.6
2.7
2.4
2.6
2.7
2.5
2.5
2.6
0.9
0.2
0.2
1.4
1.8
4.2
0.8
1.0
10.7
18.5
4.7
2.5
2.2
3.3
12.6
32.5
Date
Announced
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
21-Sep-22
Underground TOTAL
2.2
3.0
0.2
Table 3: Cardinia Gold Project Underground Mineral Resource estimate. Mineral Resources reported in
accordance with JORC 2012 using a 2.0g/t Au cut-off grade outside AUD2,600 optimisation shells.
12
DIRECTORS’ REPORT
EXPLORATION AND DEVELOPMENT STRATEGY
Throughout the year Kin has continued to evaluate exploration opportunities across its
tenement package, in conjunction with other consolidation, growth and strategic options within
the region.
Kin has a large 777km2 land-holding which it owns 100% across the under-explored Minerie
Greenstone Belt, part of a region which has yielded multiple gold deposits in recent decades
(Figure 1).
The CGP area (777km2) encompasses a +45km strike of the Minerie Formation which contains
large alteration systems associated with several significant gold deposits. In addition, the
Company has three Joint Venture arrangements:
• An Earn-in JV covering 120km2 with G88, where Kin is earning an initial 60% over 3
years commencing in 1Q 2022
• Desdemona South JV where Genesis Minerals is earning an initial 60% over 3.5 years
which commenced in 1Q 2020
• Desdemona North JV where Yilgarn Exploration Ventures (jointly owned by Sensore
and Gold Road) are earning 75% over 4.5 years which commenced in 1Q 2020
The Company is pursuing a two-pronged approach to unlocking the value of the CGP,
comprising a wide-ranging, multi-discipline exploration effort in parallel with a near-term mining
options study. The JV ownership arrangements are designed to consolidate the area
surrounding the CGP and reduce the Company’s expenditure requirements on outlying
projects while engaging with the strong and successful exploration groups and regional
neighbours.
Other regional properties that provide considerable exploration interest are included in the
company’s exploration plans and have had some exciting results throughout the year.
EXPLORATION AND RESOURCE DRILLING
Cardinia - Western Corridor Exploration Program
The Western Corridor at Cardinia contains the cornerstone Bruno Lewis deposit (12.1Mt at
1.00g/t for 390koz), Kyte (20koz at 1.37g/t) and the Pegasus, Eagle/Crow and Lewis East
exploration prospects. In addition, the Western Corridor contains a number of other historical
workings and geochemical anomalies that Kin has been pursuing.
The Western Corridor is located between 500m and 5.0km from the centrally located CGP.
During the current year exploration drilling focussed on the Pegasus and Eagle/Crow
Prospects.
13
DIRECTORS’ REPORT
The next Phase (Phase 6) of exploration will focus on follow up work at Pegasus, Bruno-Lewis
and Lewis East to confirm strike and depth extensions to this heavily mineralised area.
Figure 2 - Cardinia – Eastern and Western Corridor and included deposits and prospects.
14
DIRECTORS’ REPORT
Pegasus
The Pegasus prospect was first identified as a soil geochemical anomaly after regional, wide-
spaced auger sampling undertaken in late 2020.
Kin completed a successful second stage aircore drilling program at the Pegasus prospect in
the second half of 2021.
The prospectivity of the Pegasus target was further enhanced with the completion of the
detailed gravity survey in the September 2021 quarter which showed that the anomalous soil
geochemistry was coincident with the edge of a large, NW-SE trending gravity low.
Armed with numerous positive assays from the aircore program, an initial wide-spaced
Reverse Circulation (RC) drilling program, comprising 27 RC holes (2,318m) on nine lines at
100m line spacing, was completed in February and March 2022.
The RC drilling confirmed a new gold discovery at the Pegasus prospect, located adjacent to
the 390koz Bruno-Lewis deposit at the CGP. Final assay results from this program included
narrow, high-grade intercepts such as 2m at 12.2g/t Au from 45m in PG22RC413 and 2m at
5.04g/t Au from 22m and 1m at 17.1g/t Au from 31m in PG22RC418, together with other
significant results located on the southern extent of the Pegasus Gravity Target.
The new assay results support and reinforce the initial results reported on 14 February 2022
and 10 March 2022, confirming a significant new zone of shallow, high-grade gold
mineralisation at Pegasus that represents an outstanding target for follow-up exploration.
Pegasus lies to the north-west of previous drilling associated with testing around the Pride of
the North historical workings. This drilling includes both Rotary Air Blast (RAB) drilling and RC
drilling from the 1990s and early 2000’s.
Results from the Pride of the North drilling include:
o 10m at 3.10g/t Au from 12m (C0031)
o 16m at 1.04g/t Au from 4m (C0030)
o 8m at 1.07g/t Au from 32m (BL19RC040)
o 9m at 1.15g/t Au from 24m (NCAC1241)
o 6m at 1.44g/t Au from 8m (CD031)
15
DIRECTORS’ REPORT
Figure 3: Location of the Pegasus AC and RC drilling program over gravity image.
Interpretation suggests the mineralisation is related to NW trending faults which crosscut the
NNW oriented stratigraphic Lewis Trend which originates from the nearby Pride of the North
workings.
Eagle
Crow
‐
The Eagle
Crow prospect, located just 2km from the centre of Cardinia, was defined in late
2020 from a regional soil geochemical program undertaken by Kin Mining. Initial AC drilling in
early 2021 outlined significant zones of shallow high
grade gold mineralisation.
‐
Follow up RC program delivered strong intercepts including 17m at 3.78/t Au from 43m which
included 4m at 5.45g/t from 43m; and 3m at 12.9g/t from 54m in hole CW21RC013, 100m
along strike from a previous intercept of 8m at 7.90g/t in earlier AC drilling.
‐
Mineralisation appears to have a shallow north-east dip in a similar orientation to the nearby
Bruno
Lewis and Kyte mineralisation.
Other intersections included:
‐
• 5m at 3.10g/t Au from 55m in hole EG21RC446, located along strike from strong
historical intercepts, and
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DIRECTORS’ REPORT
• 6m at 4.19g/t Au from 13m in hole CW21RC011 underneath 3m at 2.03g/t Au from
29m in CW21RC006 which appears to define a second parallel zone with a similar
orientation.
dipping mineralisation intersected in the initial, broad spaced
Both zones of shallow northeast
RC drilling extend over a strike length of approximately 500m with minimal historical surface
workings.
‐
The latest results continue to reinforce the interpretation that the Eagle and Crow prospect
hosts a number of zones of coherent gold mineralisation which warrant further, closer spaced
RC drilling that is aimed at defining additional Mineral Resources from the Cardinia Project
area.
Cardinia - Eastern Corridor Exploration Program
The Eastern Corridor area has been a focus of the geological team for approximately 18
months and is interpreted to be a series of felsic intrusion and structurally-controlled
mineralised positions which mark the near-surface expression of a significantly larger
mineralised system located on the eastern side of the CGP.
The Eastern Corridor is located between 500m and 5.0km from the centrally located CGP.
The Eastern Corridor mineralisation intersected in drilling to date extends over an area of
approximately 1km by 4.5km. It contains a number of recent discoveries, exciting exploration
prospects and mining development opportunities including Cardinia Hill, Helens, Fiona,
Rangoon and East Lynne – which collectively contain in excess of 338koz of Mineral
Resources (refer Tables 2 and 3).
The area has been covered by detailed magnetics and gravity surveys and was targeted by
Reverse Circulation and diamond drilling programs during the Company’s Phase 4 exploration
program in the first half of 2021 and Phase 5 program in the second half of 2021 and early
2022.
Assay results from drilling programs across the Cardinia Hill, Rangoon, Helens East, Rangoon
and Fiona deposits supported the updated Mineral Resource Estimate for this area within the
greater Cardinia area in September 2021 and September 2022.
The next Phase (Phase 6) of exploration program (which has commenced) includes a detailed
geophysics programs designed to identify deeper large scale targets, additional RC and
diamond drilling targeting extensions to the recent discoveries, mostly to the south and east,
as well as other prospective structural positions within the Eastern Corridor. The Phase 6
drilling program commenced with a seismic survey program over 17 line km to assist in the
location of a number of deeper holes to test the structural and alteration model that has been
developed from the geophysical surveys.
17
DIRECTORS’ REPORT
Figure 4. Kin Mining’s Eastern Corridor Targets over geology (left panel) and gravity (right
panel) showing extensive fault and intrusion-controlled mineralisation.
Cardinia Hill
Early in the year results were received from Resource drilling at the Cardinia Hill deposit in the
previous year with highlights including:
• 11m at 2.52 g/t Au from 205m (CH21RC140)
• 7.8m at 2.90 g/t Au from 267.2m (CH21DD149)
• 4.5m at 2.67 g/t Au from 168.6m (CH21DD143)
In addition, step
northern end of the Cardinia Hill deposit. Drilling up
out drilling was completed to follow up earlier RC drilling intercepts at the
dip of CH21DD102 (2.9m at 1.66g/t from
‐
‐
18
DIRECTORS’ REPORT
107.1m) intersected 5m at 5.11g/t Au from 56m in CH21RC173, indicating the discovery of a
third high
grade shoot of mineralisation at Cardinia Hill.
‐
Drilling further along strike intersected narrow zones of moderate grade mineralisation
coincident with the Cardinia Hill Fault position indicating the potential for further zones of
economic mineralisation in this area. The Cardinia Hill drilling now extends for 1.1km. The
deposit itself and the third high
grade shoot remain open to the north and at depth.
A further RC drilling program was completed at Cardinia Hill north extension in March 2022,
comprising 21 RC holes (2,100m) on 9 lines at approximately 40m line spacing. The program
was designed to:
‐
• Extend by approximately 300m the strike extent of the Cardinia Hill mineralised
structure and confirm the tenor of the mineralisation;
• Test at depth below the limit of AC drilling (nominally 40m) if the historical near surface
AC results persisted; and
• Confirm the geological interpretation that mineralised positions are associated with
quartz sulphide lodes with similar relationship of pathfinder metals to the Eastern
Corridor mineralisation; and
• Confirm that all or nearly all mineralisation in the area is consistent with the Eastern
Corridor Mineralised System geological interpretation.
The final assay results included narrow, high-grade intercepts such as 2m at 14.5g/t Au from
120m in CH22RC192, 1m at 6.11g/t Au from 63m in CH22RC188 and 1m at 7.17g/t Au from
50m in CH22RC203, together with other significant results located on a single quartz and
sulphide rich zone trending north from Cardinia Hill towards the East Lynne high grade air-core
drilling results (5m at 35.1g/t Au from 40m in EL20AC192, reported 14th September 2020)
located approximately 600m north of the Cardinia Hill results.
The new assay results support and reinforce the results reported on 30th August 2021 at
Cardinia Hill and 12 April 2022, from the nearby Rangoon deposits confirming deposits within
the Eastern Corridor, including Cardinia Hill, Helens, Fiona, Rangoon and East Lynne form a
coherent mineralised system that spans an area of approximately 5.0km by 1.0km.
The style of mineralisation encountered in the Eastern Corridor and at the Cardinia Hill
extension drilling is consistent, being quartz and pyrite-rich zones with strong correlation
between sulphide content and gold grade. The extensive multi-element assaying completed in
the Eastern Corridor has confirmed that the sulphides are also rich in Silver and strongly
anomalous in Copper, Antimony, Molybdenum, Selenium and Tellurium suggesting the
structurally controlled mineralisation lies above a significant intrusion related source.
These results reinforce Kin Mining’s view that the Eastern Corridor gravity lows highlighted in
the detailed geophysical survey over the greater Cardinia area (see Figure 4) , mark the
positions of buried porphyry intrusions and the associated alteration of the mafic host rocks in
the area. The extensions of known, near surface mineralisation that trend along gravity lows,
remain priority exploration targets for new discoveries for the Company’s exploration team.
19
DIRECTORS’ REPORT
Rangoon
The Rangoon prospect is located approximately 3km north-east from the centre of the Cardinia
Project within the Eastern Corridor.
Drill results at Rangoon during the period included:
• Over 1,000m of Diamond drilling, and
• Over 11,000m RC drilling.
The Phase 4 drilling confirmed the discovery of new zones of high-grade mineralisation at
depth and to the east of the existing Rangoon Mineral Resource position.
The Phase 5 RC drilling was focused on down-dip extensions of previous high grade RC drilling
results including 3m at 21.1g/t, 3m at 8.4g/t, 2m at 6.78g/t and 6m at 2.92g/t Au and comprised
mostly broad-spaced drilling spanning approximately 800m of strike length. The RC drilling
contributed to a better understanding of the geology of the area to the east of the Helens Fault
which is marked by the Helens and Rangoon historical workings.
At Rangoon, the workings and previous broad-spaced RC and diamond core drilling
intersected east-dipping quartz sulphide lodes. It is interpreted that the east-dipping quartz
sulphide lodes link at depth, to the Fiona Fault located 100m to the east and potentially to the
Cardinia Hill Fault located a further 300m to the east.
The Rangoon target therefore represents a potential new structural position away from the
historical drilling locations and surface workings which reinforces the significant prospectivity
of the Eastern Corridor as a large mineralised system with several mineralised orientations,
where deposits integrate at depth and originate from a common source (see Figure 5).
Highlights of Rangoon drilling included:
• 3m at 21.1g/t Au from 98m (RN21RC093)
• 3m at 8.40g/t Au from 106m (RN21DD081)
• 4m at 2.57g/t Au from 66m and 8m at 1.84g/t Au from 83m within 40m at 0.81g/t from
66m (RN21RC091)
• 6m at 1.26g/t Au from 79m and 4m at 1.77g/t Au from 96m within 63m at 0.61g/t from
63m (RN21RC099)
• 32m at 2.98g/t Au from 129m including 12m at 5.62g/t from 129m and 12m at 2.25g/t
from 149m (RN22RC161)
• 43m at 1.03g/t Au from 39m including 15m at 1.55g/t from 48m (RN22RC145)
• 31m at 1.07g/t Au from 55m including 6m at 3.17g/t from 55m (RN22RC146)
• 27m at 1.05g/t Au from 75m including 14m at 1.31g/t from 88m (RN22RC147)
• 23m at 1.28g/t Au from 53m including 7m at 3.49g/t from 54m (RN22RC140)
• 15m at 3.03g/t Au from 162m (RN22RC162)
• 12m at 2.25g/t Au from 149m (RN22RC161)
• 11m at 2.01g/t Au from 102m (RN22RC143)
• 7m at 2.77g/t Au from 76m (RN22RC166)
20
DIRECTORS’ REPORT
• 4m at 6.19g/t Au from 121m (RN22RC167)
• 19m at 2.48g/t Au from 91m (RN21RC109)
• 12m at 3.04g/t Au from 62m (RN21RC120)
• 4m at 5.50g/t Au from 145m and 2m at 4.67g/t Au from 128m (RN21RC110)
• 4m at 4.39g/t Au from 44m (RN21RC119)
• 6m at 2.43g/t Au from 86m (RN21RC121)
• 4m at 2.66g/t Au from 135m (RN21RC118)
• 1m at 17.5g/t Au from 119m (RN21RC117); and
The geology team have delineated zones up to 43m wide of near-surface mineralisation
grading between 1.0g/t and 1.3g/t and located in structural positions that dip shallowly east
and link at surface to the Helens Fault. These broad zones generally contain a core of higher
grade (5-10m of +2.5g/t Au) sulphide mineralisation that is traceable along strike and down-
dip. These east-dipping zones contain both higher-grade quartz sulphide ore and altered rock
containing disseminated sulphide between the higher-grade lodes.
The results from drilling this year have confirmed the extension of the shallow, east-dipping
lodes at Rangoon to depths up to 130m below surface for a strike extension of 400m. Ore
grade mineralisation is generally seen adjacent to the Helens Fault in one or two parallel,
sulphide-rich zones, generally 7m to 15m in drill thickness within altered host rock. Drilling
along the Helens Fault positions show steep and shallow east dipping nature of the sulphide-
rich zone adjacent to the fault.
The mineralisation remains open along strike to the south and down-dip to the east.
All of these successful drilling programs supported an updated MRE for the Rangoon deposit
of 2.29Mt at 1.29g/t Au for 94koz of contained gold, an increase of 62koz from the previous
estimate.
21
DIRECTORS’ REPORT
Figure 5: Recent Rangoon and Fiona drill hole locations and highlights.
22
DIRECTORS’ REPORT
Figure 6: Rangoon drill hole cross section indicating the position of new zones of
mineralisation dipping shallowly to the east.
Helens East
RC drilling was completed in April 2022, comprising 15 RC holes for 1,620m generally at broad
spacing, up to 100m below and along strike from previous drilling. The program was designed
to drill test the position of the Helens East Fault and intersect interpreted steep-dipping, quartz
sulphide lodes below and along strike to the south of the Fiona deposit.
Also targeted were potential new structural positions away from the historical drilling locations
and surface workings.
Assays have been returned for all 15 holes, with highlights including:
• 7m at 24.7g/t Au from 107m (HE22RC022)
• 3m at 5.38g/t Au from 108m (HE22RC030)
• 2m at 6.50g/t Au from 33m (HE22RC033)
• 1m at 7.98g/t Au from 9m (HE22RC028)
• 1m at 5.20g/t Au from 32m (HE22RC025)
23
DIRECTORS’ REPORT
The results have confirmed the extension of high-grade mineralisation at depth below and to
the south of the existing 32koz Fiona Mineral Resource as well as the discovery of new, steep-
dipping lodes of quartz sulphide mineralisation to the east of and parallel to the Helens Lodes.
Newly discovered mineralised positions are up to 100m below surface and extending over
approximately 500m of strike length.
New Helens East mineralised lodes are steep and trend parallel to the Helens lodes further to
the west. Intersections such as in HE22RC022 (7m at 24.6g/t Au from 107m) below Fiona and
HE22RC030 (3m at 5.38g/t Au from 108m) and HE22RC033 (2m at 6.5g/t Au from 33m) further
south demonstrate the high-grade nature of these new zones and their persistence to
considerable depth.
These results reinforce previous near-surface RC drilling results at the Fiona deposit such as
in HE17RC099 (7m at 5.99g/t Au from 23m), HE17RC082 (15m at 3.50 g/t Au from 32m) and
HE17RC026 (8m at 6.83g/t Au from 22m).
In addition, zones of deeper, sulphide mineralisation have previously been intersected in
broad-spaced regional RC drilling along this trend including HE20RC358 (which returned 21m
at 3.58g/t Au from 45m including 5m at 4.28 g/t from 50m and 7m at 6.16 g/t from 58m).
Fiona
Drilling at Fiona comprised 15 RC holes for 1,436m. The drilling was designed to better
understand the geology of the Fiona area and intersect interpreted felsic porphyry intrusions
at depth to the north and south of the historical drilling locations and historical surface workings.
Assays results included:
• 1m at 6.3g/t Au from 49m within 23m at 0.84g/t Au from 27m (FI21RC007)
• 3m at 2.16g/t Au from 30m (FI21RC013)
The results have confirmed the extension of the Fiona mineralisation approximately 100m to
the north of the historical drilling and up to 80m below surface. Mineralisation appears to dip
steeply west, parallel to the Fiona near surface mineralisation. Intersections such as in
FI21RC007 (which returned 23m at 0.84g/t Au from 27m) indicate the nature of broad
intersections of mineralisation with narrow high-grade cores at Fiona.
Regional Exploration Program
Kin owns six separate projects located east and west of the centrally located CGP (Figure 7)
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.
24
DIRECTORS’ REPORT
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 nearby mining and processing operations.
The key parameters governing these development options is the distance from Cardinia and
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.
Figure 7: Kin Mining’s regional project areas close to Leonora, Western Australia.
Mount Flora
Following the maiden air-core drilling program (269 drill-holes for 10,166m on 11 lines of drilling
at 200m line spacings) in April 2021 that returned results like 22m at 8.96g/t and 8m at 2.79g/t,
the Company completed a number of follow up programs of work on the Mt Flora deposit during
the year.
A further 268 air-core holes (for 10,763m) was completed in July 2021 followed by a single
diamond hole in the same quarter. Then in November 2021 an initial RC program of 25 holes
for 3,169m was completed mostly on 80m spaced and 40m spaced sections spanning
25
DIRECTORS’ REPORT
approximately 600m of strike length. Initial RC drilling beneath anomalous AC drilling results
was also completed at the North
Western Zone.
‐
• 8m at 3.75g/t Au from 32m (MF21AC710)
• 16m at 1.16g/t Au from 24m (MF21AC715)
• 4m at 4.34g/t Au from 12m (MF21AC760)
• 4m at 1.30g/t Au from 24m (MF21AC719)
• 5.3m at 6.49g/t Au including 2.6m at 8.84g/t Au from 188.3m (MF21DD001); and
• 8.1m at 2.58g/t Au including 4.0m at 4.80g/t Au from 54.0m (MF21DD001)
• 2m at 9.67g/t Au from 78m and 2m at 4.34g/t Au from 97m (MF21RC019);
• 1m at 25.5g/t Au from 86m (MF21RC003);
• 2m at 4.06g/t Au from 31m (MF21RC013);
• 1m at 7.58g/t Au from 63m (MF21RC022);
• 6m at 2.00g/t Au from 45m (MF21RC002);
• 18m at 1.57g/t Au from 119m (MF21RC017) including 4m at 2.23g/t Au from 119m and
2m at 5.65g/t Au from 135m; and
• 22m at 0.86g/t Au from 102m (MF21RC026) including 3m at 2.40g/t Au from 102m and
2m at 2.35g/t Au from 122m.
Figure 8: Mount Flora Eastern Zone cross section (6817710mN) illustrating the position of
diamond drill hole MF21DD001 relative to the near-surface mineralisation intersected in AC
drilling and completed RC drilling.
Of the RC results, MF21RC017 returned a broad intercept of 18m at 1.57g/t Au from 119m
including 4m at 2.23g/t Au from 119m and 2m at 5.65g/t Au from 135m, from a zone located
26
DIRECTORS’ REPORT
up-dip from the diamond hole intersection of 5.3m at 6.49g/t from 188.3m (MF21DD001). This
broad intersection was within an extensive zone of sulphide mineralisation and pervasive
scheelite veining.
In addition, several holes intersected relatively narrow zones of high-grade gold mineralisation
such as 2m at 4.06g/t Au from 31m, 2m at 9.67g/t Au from 78m and 2m at 4.34g/t Au from
97m along strike from the high-grade results recorded in initial AC and diamond drilling,
indicating that a core of high-grade mineralisation is present at the Eastern target.
At the Northern Target, narrow zones of high-grade mineralisation such as 6m at 2.00g/t Au
from 45m and 1m at 25.5g/t Au from 86m have provided an initial assessment of the potential
below this shallow target.
Confirmation of the presence of a high-grade primary gold system beneath the air-core drilling
at both the Eastern and Northern target is a significant development, providing further
confidence in the potential of the emerging Mt Flora discovery.
These zones of deeper high-grade mineralisation display a distinctive style of alteration, with
quartz-carbonate-pyrite-scheelite veining present in a silica-biotite altered basalt. The
mineralisation is rich in tungsten (W) with elevated tellurium (Te) and sulphur (S), which are
pathfinder elements being used to map the alteration system.
Overall, the combination of soil geochemistry, AC drilling, diamond drilling and primary
mineralisation returned from RC drilling all confirm the discovery of several zones of strong
gold mineralisation associated with a regional structure, coupled with a distinctive alteration
signature.
The Mount Flora prospect remains one of several satellite exploration targets being explored
by the Company’s geological team alongside its flagship asset, the 1.28Moz Cardinia Gold
Project.
Iron King
The Iron King prospect is a potential satellite project located 45km north of Leonora in Western
Australia separate to the Company’s CGP.
The drilling, at both the Axford and Iron King West lines of mineralisation, has confirmed the
potential of the Iron King Project to emerge as a significant new discovery which the Company
plans to follow-up as part of its growing pipeline of regional exploration priorities across the
region.
The Axford and Iron King West targets were identified through multi-element soil geochemical
surveys completed in mid-2020. The follow-up drilling program completed during the
September 2021 Quarter comprised 6,048m of AC drilling at nominal 200m line spacing
targeting two separate 2.0km long multi-element soil geochemical anomalies.
27
DIRECTORS’ REPORT
Axford Air-core Lines
The Axford target is located in the north-eastern sector of the Iron King Project, approximately
1.0km north of the historically mined Iron King open pit. See Figure 9.
Previous AC drilling at Axford in August 2020 returned intercepts including 6m at 1.91g/t Au
from 40m in AX20AC116 and 4m at 2.08g/t Au from 40m in AX20AC117. This drilling by Kin
Mining targeted extensions to historical workings previously referred to as the Crystal Ridge
prospect.
During the September 2021 Quarter, the Company completed a 4,437m AC drilling program
on 11 additional lines at nominal 100m and 200m line spacing at Axford targeting strike
extensions of the existing mineralisation and parallel zones of mineralisation highlighted in the
August 2020 drilling and soil geochemical program.
Highlights from this latest round of drilling included 4m at 1.01g/t Au from 12m (AX21AC217),
2m at 0.96g/t Au from 44m to BoH (AX21AC206) and 4m at 1.05g/t Au from 12m
(AX21AC191), with the results confirming the continuity of mineralisation over a distance of
800m.
Figure 9: Location of the Axford target AC drilling program. Historical drilling results shown in
grey labels were derived from historical Kin Mining RAB drilling and Kin AC drilling completed
in 2020.
Iron King West Air-core Lines
Air-core drilling was also conducted at Iron King West prospect. The historical Iron King open
pit produced approximately 20,000 tonnes at 9.0g/t Au for 5,600oz of gold mined.
28
DIRECTORS’ REPORT
Historical drilling results at Iron King were derived from RC drilling completed in 1980’s as
limited extensions of the historically mined pit area. Intersections such as 1m at 27.5g/t Au
from 3m in IK010 highlight the high-grade nature of the mineralisation in and around the open
pit and historical workings.
During the September Quarter, the Company completed a 1,609m AC program on six lines at
nominal 200m line spacing at Iron King West targeting strike extensions of the existing
mineralisation and parallel zones of mineralisation highlighted in the 2020 soil geochemical
program.
Highlights from this program included 4m at 2.93g/t Au from 0m and 4m at 1.18g/t Au from
20m (IW21AC033) and 4m at 1.18g/t Au from 8m (IW20AC034).
The results confirm the continuity of mineralisation in AC drilling over a distance of 500m at
Iron King, with mineralisation identified along strike from limited historical drilling.
Bottom-of-hole multi-element analysis shows a very strong pathfinder mineral association, in
particular with silver and arsenic, with elevated bismuth and zinc also present.
The majority of the drilling at the Iron King prospect was very shallow, with a significant number
of the holes being less than 5m in depth due to near fresh material at surface. The shallow
weathering profile means geochemical dispersion of gold withing the oxide zone is limited, and
the associated elements will be important in locating primary zones of gold mineralisation.
Regional Target Generation
Work to generate early-stage targets has been ongoing. In late 2021 more than 4,000 auger
samples were collected from the Randwick, Murrin Murrin and Gambier Lass projects. In
addition, further auger sampling has been completed for the broader Cardinia area. The multi-
element assay results from this phase of surface sampling work will be used to assist in target
generation. Drill program targeting will commence in parallel with the G88 Project assessment.
Desdemona South JV – Genesis Minerals earning 60%
Genesis continued their earn-in under the terms of the JV. Regional aircore programs
completed in prior quarters were reported with no significant mineralised positions intersected.
Desdemona North JV – Yilgarn Exploration Ventures earning 75%
YEV continued their earn-in under the terms of the JV. Deep diamond drilling completed in
previous quarters targeting the interpreted Gwalia position at depth was relogged and samples
submitted for age dating, mineral and alteration identification.
29
DIRECTORS’ REPORT
METALLURGICAL TEST WORK PROGRAM
Kin has continued to progress the metallurgical understanding of its ore types throughout the
year. Strong metallurgical testwork results were reported from sulphide ores from the Cardinia
Hill, Helens and Lewis deposits, all located within the Cardinia area of the CGP.
The metallurgical testwork program was designed to confirm the most cost-effective
processing route for each ore type confirmed within the large, rapidly developing Western and
Eastern Corridor mineralised complex which make up the Cardinia area.
Where sulphide ore has been drilled below the oxidation depth, common features of all the
mineralised locations have been noted in geological logging and multi-element assays. These
features include strong associations between gold mineralisation and pyrite, moderate levels
of silver mineralisation and anomalous copper, lead, molybdenum, selenium, tellurium and
zinc. These pathfinder minerals are also expected to report to flotation concentrates as they
are associated with the sulphide style of mineralisation dominant at Cardinia.
A number of metallurgical testwork programs were undertaken at Cardinia up until 2019,
including the completion of the 2019 Pre-Feasibility Study which showed high metallurgical
recoveries generally based on oxide and transitional ore samples available up until that point
in
time. Optimisation work by Independent Metallurgical Operations (IMO) showed
conventional 150μm grind, gravity and 48-hour leaching results in, on average, 94.5% recovery
for Oxide and Transitional ore types across Cardinia.
Test work at that time also showed generally lower metallurgical recovery for Fresh ores
associated with sulphide mineralisation. Metallurgical recovery of Variability Composites
showed recoveries of between 68.7% and 91.1% for Helen’s sulphide ores and between 76.6%
and 91.1% for Lewis sulphide ores using the conventional grind-gravity-leach process.
Weighted average recovery of 81.5% was achieved for Fresh sulphide ores from Cardinia.
When applied as modifying factors to mining and processing production estimates, these
results reduced the proportion of Fresh sulphide ore able to be economically extracted and
reduced pit design depth, ore supply and estimated economic return in the 2019 PFS.
The latest testwork results show that rougher flotation, concentrate regrinding and leaching
under optimal conditions delivers a significant improvement in sulphide ore metallurgical
recovery. Recoveries increased by up to 12.4% at Lewis, 12.6% at Helens and 6.3% at
Cardinia Hill on samples tested. These results indicate that coarse Primary Grind, Rougher
Flotation and regrinding of concentrates prior to leaching is likely to be included in the flow
sheet for treatment of sulphide ores from Cardinia.
Metallurgical recovery is likely to be approximately 97% for Cardinia Hill sulphide ores based
on optimal conditions testwork, 91% for Helens and 87% for Lewis sulphide ore based on
sighter testwork completed to date.
Further testwork programs will be undertaken as drilling penetrates deeper, sulphide dominant
ores at the Rangoon, Fiona and Helens East deposits.
30
DIRECTORS’ REPORT
CORPORATE
Capital Raising Activities
On 12 November 2021 Kin issued 66,498,202 new shares pursuant to a Rights Issue and
raised $6.982M.
In addition, the Company issued shares to Directors and executives of the Company as follows:
• 6 August 2021 – an issue of 317,992 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 AGMs,
• 6 August 2021 – an issue of 125,412 new shares to Company Executives pursuant to
the satisfaction of Performance Rights vesting conditions related to their employment
contracts.
Acquisition of Shares by St Barbara Limited and NBIO
During the year, a parcel of 146,275,804 Kin Mining shares held by Harmanis Holdings was
purchased by St Barbara Limited (ASX: SBM). St Barbara lodged a substantial shareholder
notice for 158,125,983 shares representing a 19.79% stake in Kin.
St Barbara is an ASX-200, Australian based gold producer with operations in Western
Australia, Canada and PNG, including its Leonora Province Operations, located near Kin’s
Cardinia Gold Project. The Leonora assets of St Barbara include the Gwalia underground mine
and a 1.4 Mtpa processing plant.
On 7 October 2021 the Kin Board announced that it had received a non-binding indicative offer
(NBIO) to acquire 100% of Kin shares via a Scheme of Arrangement at an implied price of
$0.16 per Kin share in St Barbara shares from St Barbara.
The NBIO was subject to a number of conditions, including no leak or public disclosure of the
NBIO, due diligence, the unanimous recommendation of the Kin Board, the execution of a
scheme implementation agreement between SBM and Kin containing exclusivity mechanisms,
and no further issuance of equity securities by Kin.
The Proposed Transaction, if it had been implemented, would amongst other things have
required the approval by a majority of shareholders (other than SBM) holding 75% of the
shares voting in favour of the Proposed Transaction at the scheme meeting.
The Kin Board considered the NBIO, engaged with SBM, and canvassed the views of its major
and substantial shareholders other than SBM who collectively hold in excess of 25% of the
total Kin shares on issue. The Board determined that the proposed NBIO could not progress
because the Proposed Transaction was not acceptable to the major and substantial
shareholders other than SBM, and therefore would not have been approved by the requisite
75% voting majority of Kin’s shareholders.
As a result, SBM withdrew the NBIO.
31
DIRECTORS’ REPORT
Earn-in and Joint Venture agreement with Golden Mile Resources
In January 2022, Kin entered into an Earn-in and Joint Venture agreement with Golden Mile
Resources Ltd (ASX: G88 – “G88”) over 120km2 of exploration tenure located adjacent to the
CGP.
The G88 ground, made up of three prospect areas, comprises strategically-located contiguous
tenements that sit adjacent to Kin’s CGP, as well as regional exploration ground that includes
a number of exploration targets to further expand the Company’s growth pipeline in the
Leonora region.
Figure 10: Regional map showing Kin’s tenure (Purple) and Golden Mile Resources’ Earn-in
tenure (Orange).
32
DIRECTORS’ REPORT
Under the terms of the agreement, Kin will have the right to earn an initial 60% interest in the
Golden Mile Resources tenements, with the ability to increase to 80% ownership through a
series of staged milestones. The Joint Venture will provide Kin with an additional 120km2 of
tenure, located along the same regional structural corridors that have already yielded
significant targets and Mineral Resources for Kin (see Figure 10).
Farm-In and Joint Venture Terms
The Farm-In terms are as follows:
• Stage 1:
o Kin must incur expenditure of not less than $250,000 (Minimum Expenditure)
on the JV Area with 18 months of Commencement before it can withdraw from
the agreement.
o Kin may earn a 60% interest in the JV Area by incurring $750,000 Exploration
Expenditure (including the $250,000 minimum expenditure requirement) on the
JV Area within 36 months of Commencement.
o Once Kin completes Stage 1 requirements, G88 may elect to form a Joint
Venture with participating interests of 60% Kin and 40% G88, or grant Kin the
right to elect to progress to Stage 2.
• Stage 2:
o Kin may earn an 80% interest in the JV Area by incurring a further $1,250,000
Exploration Expenditure on the JV Area within a further 36 months (in total
$2.0M expenditure over 72 months) of Commencement.
o Once Kin completes Stage 2 requirements, G88 may elect to form a Joint
Venture with participating interests of 80% Kin and 20% G88, or grant Kin the
right to form a JV.
• Stage 3:
o Standard terms and conditions for JV participation managed by Kin.
o
If a party elects to dilute and their interest falls to 10% then their interest reverts
to a Net Smelter Royalty on gold production from the tenements.
Option to purchase tenement
During the year the Company secured an option to purchase the 33% of tenement M39/279 it
did not previously own. The tenement forms part of the Company’s Murrin Murrin project.
Board and Management Changes
There were no changes to the composition of the Board and Management during the period.
Subsequent to the end of the year Mr Rowan Johnston was appointed to the Board of Directors
of the Company. Mr Johnston is an experienced mining company director with existing and
recent roles in gold mining companies in the local Leonora area and elsewhere in the Western
Australian gold mining industry.
Cash Position
At 30 June 2022, Kin had $3.646 million cash on hand.
33
DIRECTORS’ REPORT
Subsequent Events
On 15 July 2022 Mr. Rowan Johnston was appointed to the Board of the Company as a Non-
executive Director. Mr. Johnstons experience and career details are described in the Directors
Report.
On 25 August 2022 Kin Issued 129,900,000 new shares in a placement to raise $9.743M
before costs.
On 12 September 2022 the Company closed the 1 for 7 Entitlement Issue that was announced
on 18 August 2022. The Entitlement Issue closed with 52,487,569 applications for new shares
and a shortfall of 89,802,995 shares. The issue of these entitlement shares raised $3.937M in
funds for the Company. The shortfall shares can be issued at the discretion of the Board up
until 12 December 2022 at no less than the offer price.
On 15 September 2022 4,000,000 options with an exercise price of $1.25 expired. See Note
15 for details of these options.
During September 2022 the Company acquired shares in an ASX listed Company at a cost of
$1.978M as an investment.
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.
34
DIRECTORS’ REPORT
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.
35
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 2022. 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
R Johnston
Non-executive Chairman
Managing Director
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director (appointed 15 July 2022)
Other Key Management:
S Jones
G Grayson
C Moloney
Chief Financial Officer and Company Secretary
Exploration Manager
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:
36
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Revenue
2022
7,715
2021
23,190
2020
2019
2018
15,670
49,133
41,306
Net (loss) after tax
(11,347,986)
(15,407,840)
(7,242,452)
(14,555,272)
(15,793,246)
Loss per share
Share price at year-end
(1.35)
0.067
(2.11)
0.115
(1.30)
0.115
(3.70)
0.052
(8.00)
0.120
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.
37
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.
38
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 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.
At the 25 November 2021 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.
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 $63,648 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 $352,345 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.
39
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Brian Dawes, Non-Executive Director
• Director’s fees of $47,736 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 $47,736 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 $47,736 per annum.
• Long term incentives as granted by the Board as part of a grant of benefits to
Directors and subject to shareholder approval.
Rowan Johnston, Non-Executive Director
• Director’s fees of $47,736 per annum.
Stephen Jones, Chief Financial Officer & Company Secretary
• Base annual remuneration of $293,804 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 $261,354 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:
40
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
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.
Chad Moloney, Mining Manager (appointed 1 July 2021)
• Base annual remuneration of $291,200 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
30 June 2022
Salary & fees
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
Other KMP
S Jones
G Grayson
C Moloney
$
61,200
41,727
315,225
45,900
45,900
258,936
228,457
256,432
Other1
$
-
-
61,622
-
-
25,692
22,854
25,464
Post-employment
benefits
Superannuation
$
Share-based
payments
Performance
Rights
$
-
4,173
23,568
-
-
23,568
22,846
23,568
-
-
-
-
-
-
-
-
Performance
Related
Total
$
61,200
45,900
%2
-
-
400,415
15%
45,900
45,900
308,196
274,157
305,464
135,632
1 Other benefits were paid in accordance with short term incentives in executive employment contracts.
2
Percentage of total remuneration.
1,253,777
97,723
- 1,487,132
-
-
8%
8%
8%
9%
41
DIRECTORS’ REPORT
Short-term employee
benefits
Post-
employment
benefits
30 June 2021 Salary & fees
Other 1
Superannuation
Share-based payments
Shares and
share
options4
Performance
Rights 2
Performance
Related 3
Total
%
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
-
3,579
21,694
-
-
21,694
21,375
21,694
90,036
$
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
-
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 total 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
42
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Shareholdings of key management personnel
2022
Balance at
01/07/21
No.
Shares
Purchased
No.
Shares
Issued
No.
Shares
Acquisition
No.
Shares on
Resignation
No.
Balance at
30/06/22
No.
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
Other KMP
S Jones
G Grayson
C Moloney
2021
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
Other KMP
S Jones
G Grayson
J Kelly
10,742,463
2,012,289
1,008,441
1,085,478
455,752
361,219
107,000
-
857,537
309,584
204,067
166,998
185,501
65,784
15,000
-
-
-
317,992
-
-
66,371
59,041
-
15,772,642
1,804,471
443,404
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,600,000
2,321,873
1,530,500
1,252,476
641,253
493,374
181,041
-
18,020,517
Shares
Purchased
No.
Shares
Issued
No.
Shares
Acquisition
No.
Shares on
Resignation
No.
Balance at
30/06/21
No.
Balance at
01/07/20
No.
9,599,220
1,476,362
308,853
649,999
150,000
361,219
56,000
-
1,000,780
393,464
435,145
350,001
220,274
-
51,000
-
142,463
142,463
264,443
85,478
85,478
-
-
-
12,601,653
2,450,664
720,325
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,742,463
2,012,289
1,008,441
1,085,478
455,752
361,219
107,000
-
15,772,642
43
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Option holdings of key management personnel
2022
Directors
G Graziano
B Dawes
A Munckton
N Andersen
H Plaggemars
KMP
S Jones
G Grayson
C Moloney
2021
Directors
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
KMP
S Jones
J Kelly
G Grayson
Balance
at 01/07/21
No.
3,500,000
500,000
-
500,000
500,000
-
-
-
5,000,000
Balance
at 01/07/20
No.
5,000,000
-
-
-
-
-
-
-
5,000,000
Options
Purchased
No.
Options
Expired
No.
Options
Issued
No.
Options on
Resignation
No.
Balance
at 30/06/22
No.
-
-
-
-
-
-
-
-
-
(2,000,000)
-
-
-
-
-
-
-
(2,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
500,000
-
500,000
500,000
-
-
-
3,000,000
Options
Purchased
No.
Options
Expired
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
Value of options expired during the year
The value of options expired unexercised during the year was $Nil.
44
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Share-based remuneration granted as compensation
No share based remuneration was granted in the current year.
Performance Rights holdings of key management personnel
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
The June 2020 LTI’s have all expired following the passage of 3 year end’s since they were
granted.
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
In November 2021 the shareholders agreed to grant June 2022 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 2021 – 30 June 2022
1 July 2022 – 30 June 2023
1 July 2023 – 30 June 2024
$33,879
$33,879
$33,879
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.
45
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 2022) the Board determined that nil
(0%) of the vesting conditions for Tranche 1 of the June 2022 LTI’s, Tranche 2 of the June
2021 LTI’s and Tranche 3 of the June 2020 LTI’s, had been met for the current year. No shares
will be issued for this period.
There were no options exercised during the year.
46
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Share options
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. For 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. For the year ended 30 June 2021 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. After the year end the
Board of Directors determined that Mr Munckton had met nil (0%) of the performance criteria
set for the third tranche of these performance rights to vest. As a result no further performance
rights will vest in relation to these Long Term Incentives.
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. For the year ended 30 June 2021 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. After the year end the Board of Directors determined that
Mr Munckton had met nil (0%) of the performance criteria set for the second tranche of these
performance rights to vest.
At the Annual General Meeting of shareholders on 25 November 2021 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 2022. After the year end the Board of Directors
determined that Mr Munckton had met nil (0%) of the performance criteria set for the first
tranche of these performance rights to vest.
Other executives have Long Term Incentives as part of their remuneration included in their
Executive Employment Agreements for the year ended 30 June 2022. After the year end the
Board of Directors determined that nil (0%) of the performance criteria set for the first tranche
of these performance rights has been met.
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 $61,200 (2021: $55,833), excluding GST, none of which was
outstanding at 30 June 2022 (2021: Nil). No interest was payable or accrued.
47
DIRECTORS’ REPORT
REMUNERATION REPORT (CONTINUED)
Burra Woolshed Investments Pty Ltd, a company of which Mr. Anderson is a Director, charged
the Group director fees of $45,900 (2021: $41,250), excluding GST, none of which was
outstanding at 30 June 2022 (2021: Nil). No interest was payable or accrued.
Value Consult, a company of which Mr. Plaggemars is a Director, charged the Group director
fees of $45,900 (2021: $41,250), excluding GST, none of which was outstanding at 30 June
2022 (2021: 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
2 December 2020
2,000,000
$0.2433
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
48
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
Meetings of Remuneration
and Nomination Committee
Number of meetings held:
Number of meetings attended:
G Graziano
B Dawes
A Munckton
N Anderson
H Plaggemars
R Johnson
23
23
23
23
23
23
(a)
(a) Appointed after the year on 15 July 2022
Proceedings on behalf of the Company
1
1
1
1
1
1
(a)
3
3
3
3
3
3
(a)
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 20 to the financial statements. No non-audit services were
provided during the year ended 30 June 2022 (2021: $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 52 and forms part of this
directors’ report for the year ended 30 June 2022.
Signed in accordance with a resolution of the directors.
Andrew Munckton
Managing Director
Perth, Western Australia
Dated this 23rd day of September 2022
49
DIRECTORS’ REPORT
Competent Persons Statement
Mineral Resource Estimation
The information contained in this report relating to Mineral Resource Estimation results for the Cardinia Hill, Bruno
Lewis and Hobby deposit relates to information compiled by Cube consulting (Mr Mike Millad). Mr Millad is a
Member of the Australian Institute of Geoscientists (#5799) and a full time employee of Cube Consulting. Mr
Millad 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, Michaelangelo, Leonardo, Forgotten Four and Krang relates to information compiled by Mr Jamie
Logan of Polaris. Mr Logan is a member of the Australian Institute of Geoscientists and is a full time employee of
Polaris, an industry leading consultancy group. 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".
Exploration Results
The information contained in this report relating to Exploration Results relates to information compiled or reviewed
by Glenn Grayson. Mr Grayson is a member of the Australasian Institute of Mining and Metallurgy and is a full time
employee of the company. Mr Grayson 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".
Mr Millad, Mr Logan and Mr. Grayson consent to the inclusion in this report of the matters based on information in
the form and context in which it appears.
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.
50
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 2022 is
dated as at 30 June 2022 and was approved by the Board on 15 September 2022. The
is available on Kin Mining NL’s website at
Corporate Governance Statement
https://www.kinmining.com.au/about/governance/.
51
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 2022, 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
23 September 2022
L Di Giallonardo
Partner
52
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Continuing operations
Revenue:
Interest income
Other income
Gain / (loss) on sale of assets
Depreciation and amortisation expense
Administration expenses
Consultant expenses
Employee expenses
Share based payment expense
Occupancy expenses
Travel expenses
Provision for rehabilitation
Exploration and evaluation costs
Loss before income tax
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
2022
$
2021
$
2
10
2
13
11
3
7,714
-
450
(182,400)
(556,507)
(125,200)
(804,063)
-
(67,557)
(12,493)
(1,400,000)
(8,207,930)
(11,347,986)
-
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)
-
(11,347,986)
(15,407,840)
-
-
-
-
Total comprehensive loss for the year
(11,347,986)
(15,407,840)
Basic and diluted loss per share (cents per share)
5
(1.35)
(2.11)
The accompanying notes form part of these consolidated financial statements.
53
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
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
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
2022
$
2021
$
7
8
9
10
12
13
14
3,646,298
67,586
49,882
3,763,766
7,443,297
157,609
45,714
7,646,620
10,170,624
10,170,624
13,934,390
10,329,110
10,329,110
17,975,730
596,590
596,590
1,628,866
1,628,866
2,900,000
2,900,000
3,496,590
10,437,800
1,500,000
1,500,000
3,128,866
14,846,864
95,694,551
2,030,571
(87,287,322)
10,437,800
88,755,629
2,030,571
(75,939,336)
14,846,864
The accompanying notes form part of these consolidated financial statements.
54
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Issued
capital
$
Accumulated
losses
$
Notes
Share
based
payments
reserve
$
Total equity
$
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
Balance as at 1 July 2021
88,755,629
(75,939,336)
2,030,571
14,846,864
Loss for the year
Total comprehensive loss for
the year
Shares issued during the year
Share issue costs
-
(11,347,986)
-
6,982,311
(43,389)
(11,347,986)
-
-
-
-
-
-
(11,347,986)
(11,437,986)
6,982,311
(43,389)
Balance as at 30 June 2022
95,694,551
(87,287,322)
2,030,571
10,437,800
The accompanying notes form part of these consolidated financial statements.
55
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
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
2022
$
2021
$
(10,712,143)
-
-
-
7,715
(10,704,428)
(11,748,801)
(1,827,903)
(775,394)
80,953
23,190
(14,247,955)
450
(31,943)
(31,493)
115,843
(311,028)
(195,185)
6,982,311
(43,389)
-
6,938,922
(3,796,999)
7,443,297
3,646,298
20,541,084
(320,643)
(1)
20,220,440
5,777,300
1,665,997
7,443,297
7
7
7
The accompanying notes form part of these consolidated financial statements.
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
Adoption of new and revised standards
(b)
Standards and Interpretations applicable to 30 June 2022
In the year ended 30 June 2022, 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 2022. 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 23 September 2022.
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).
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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 15.
(e)
Going concern
Notwithstanding the fact that the Group incurred an operating loss of $11,347,986 for the year ended 30 June 2022,
had net cash outflow from operating activities of $10,704,428 and investing activities of $31,493, the directors are
of the opinion that the Group is a going concern for the following reasons.
The Company completed an equity issue of 129,900,000 shares in a placement on 25 August 2022 at $0.075 per
share to raise $9,742,500 (before costs of the issue).
On 12 September 2022 the Company closed the 1 for 7 Entitlement Issue that was announced on 18 August 2022.
The Entitlement Issue closed with 52,487,569 applications for new shares and a shortfall of 89,802,995 shares. The
issue of these entitlement shares raised $3,936,568 in funds for the Company.
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Going concern (continued)
(e)
Based on the Directors cashflow forecasts which include these capital raisings subsequent to balance date, the
Group will have sufficient funds to meet its commitments for at least the period of 12 months from signing of this
report. As a result, the financial report has been prepared on a going concern basis.
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.
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
Trade and other payables
(n)
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.
Provisions
(o)
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 profit or loss and other 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.
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(p)
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
(q)
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.
Earnings/ loss per share
(r)
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
(s)
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.
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Parent entity financial information
(t)
The financial information for the parent entity, Kin Mining NL, disclosed in Note 19 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.
(u)
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.
(v)
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.
(w)
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
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(w)
Lease liabilities (continued)
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.
(x)
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.
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.
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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
•
•
Short term rentals
Buy back of Sprott Royalty
2022
$
2021
$
-
-
-
80,030
923
80,953
2022
$
2021
$
67,557
-
61,969
775,394
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
2022
$
2021
$
(11,347,986)
(15,407,840)
(3,404,396)
(4,622,352)
43,093
84,610
3,361,303
4,537,742
-
-
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 $23,973,358 (2021: $20,579,764). 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.
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 5: LOSS PER SHARE
Basic/diluted loss per share
2022
Cents per
share
(1.35)
2021
Cents per
share
(2.11)
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
$
(11,347,986)
$
(15,407,840)
841,493,774 731,886,775
The potential ordinary shares that could be dilutive in the future are the options discussed at Note 15.
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
2022
$
3,646,298
-
3,646,298
2021
$
4,413,297
3,030,000
7,443,297
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
Restoration and rehabilitation provision
Depreciation and amortisation of non-current assets
(Gain) / 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
2022
$
(11,347,986)
1,400,000
182,400
(450)
-
-
2021
$
(15,407,840)
-
180,452
40,754
-
282,034
85,006
(150,075)
(1,023,398)
(10,704,428)
806,720
(14,247,955)
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 8: TRADE AND OTHER RECEIVABLES
Other debtors (GST)
Other debtors
2022
$
2021
$
64,758
2,828
67,586
148,259
9,350
157,609
Aging of past due but not impaired - There are no past due amounts at the reporting date.
NOTE 9: OTHER ASSETS
Current
Prepayment – others
2022
$
2021
$
49,882
49,882
45,714
45,714
NOTE 10: PROPERTY, PLANT AND EQUIPMENT
Balance at 1 July 2020
Additions
Disposal
Depreciation charge for the year
Balance at 30 June 2021
Additions
Disposal
Depreciation charge for the year
Balance at 30 June 2022
Cost
Accumulated Depreciation
Balance at 30 June 2022
Freehold
land and
buildings
$
2,944,125
-
-
(44,399)
2,899,726
-
-
(44,775)
2,854,951
3,038,615
(183,664)
2,854,951
Assets in
construction
Plant and
equipment
Motor Vehicles
Total
$
6,815,549
76,595
-
-
6,892,144
-
-
-
6,892,144
6,892,144
-
6,892,144
$
407,061
38,960
(46,921)
(85,768)
313,332
23,914
-
(92,843)
244,403
765,819
(521,416)
244,403
$
216,734
57,459
-
(50,285)
223,908
-
-
(44,782)
179,126
$
10,383,469
173,014
(46,921)
(180,452)
10,329,110
23,914
-
(182,400)
10,170,624
400,691
(221,565)
174,126
11,097,269
(926,645)
10,170,624
The useful life of the assets was estimated as follows for both 2022 and 2021:
Buildings
Plant and equipment
Motor vehicles
Computer equipment
5 to 25 years
5 to 20 years
5 years
2 to 3 years
The Cardinia Gold Project (CGP) includes the freehold land and buildings and assets in construction. Assets in
construction comprise early works on the CGP gold processing plant in 2018 and will be depreciated over the life
of the plant once production commences.
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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
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
2022
$
2021
$
50,813,262
8,207,930
38,387,059
12,426,203
59,021,192
50,813,262
(8,207,930)
(12,426,203)
-
-
2022
$
2021
$
265,942
211,002
119,646
596,590
797,833
707,032
124,001
1,628,866
(i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
NOTE 13: PROVISIONS
Non-Current
Restoration and rehabilitation provision
Opening balance
Change in estimate
Closing balance
2022
$
2021
$
2,900,000
2,900,000
1,500,000
1,500,000
1,500,000
1,400,000
2,900,000
1,500,000
-
1,500,000
Kin has an obligation for 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 $2.9M.
• 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 a 2.5% (2021:8%) discount rate.
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 14: ISSUED CAPITAL
2022
$
2021
$
Ordinary shares issued and fully paid
95,694,551
88,755,629
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
Placement of shares
Shares issued on vesting of performance rights
443,404
Shares issued to Directors as remuneration
Share issue costs
Balance at end of year
2022
2021
No.
$
No.
$
799,192,341
88,755,629
629,690,835
68,455,189
66,498,202
6,982,311
153,904,932
18,904,696
-
-
-
-
-
-
14,876,249
1,636,387
264,443
455,882
-
80,000
(43,389)
-
(320,643)
866,133,947
95,694,551
799,192,341
88,755,629
NOTE 15: OPTIONS AND PERFORMANCE RIGHTS
Movement in options on issue
2022
2021
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)
12,000,000
-
(6,000,000)
6,000,000
0.957
-
1.000
0.914
19,000,000
2,000,000
(9,000,000)
12,000,000
0.934
0.243
0.750
0.957
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:
$0.2433
0.25%
110%
ii. 2021 – 9,000,000 Unlisted options with an exercise price of $0.75 expired unexercised on 15 September
Exercise price:
Interest rate:
Volatility:
25/11/20
24/11/23
$0.1800
2020.
iii. 2022 - 6,000,000 Unlisted options with an exercise price of $1.00 expired unexercised on 15 September
2021.
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 225 days.
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 15: OPTIONS AND PERFORMANCE RIGHTS (cont)
Movement in performance rights on issue
Granted performance rights
Mr Andrew Munckton, Mr Stephen Jones, Mr Glenn Grayson and Mr Chad Moloney have Annual Long Term
Incentives (LTI) included in their employment contracts. The following performance rights have been granted.
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
In November 2021 the shareholders agreed to grant June 2022 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 2021 – 30 June 2022
1 July 2022 – 30 June 2023
1 July 2023 – 30 June 2024
$33,879
$33,879
$33,879
Mr Stephen Jones, Mr Glenn Grayson and Mr Chad Moloney have Annual Long Term Incentives (LTI) included in
their employment contracts at 20% of their TFR.
Vested performance rights
The granted 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.
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 15: OPTIONS AND PERFORMANCE RIGHTS (cont)
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.
2022 Vesting
After the end of the current financial year (year to 30 June 2022) the Board determined that none of the vesting
conditions for Tranche 1 of the June 2022 LTI’s, Tranche 2 of the June 2021 LTI’s or Tranche 3 of the June 2020
LTI’s had been met for the current year and no shares were issued.
2021 Vesting
After the end of the prior financial year (year to 30 June 2021) the Board determined that
•
•
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.
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 relevant periods is determined based on the share price at grant
date times the number of shares that were ultimately issued when the performance rights vested.
2022
2021
No.
Value of
performance
rights
$
No.
Value of
performance
rights
$
Issued to Director
Issued to employees
-
-
-
-
317,992
125,412
29,038
15,676
NOTE 16: 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 2021. 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.
73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 16: FINANCIAL INSTRUMENTS (continued)
Categories of financial instruments
Financial assets
Cash and cash equivalents
Other debtors
Financial liabilities
Trade and other payables
2022
$
2021
$
3,646,298
-
3,646,298
7,443,297
9,350
7,452,647
596,590
596,590
1,408,949
1,408,949
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.
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.
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 16: FINANCIAL INSTRUMENTS (continued)
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 2022
Trade and other payables
30 June 2021
Trade and other payables
Borrowings – interest bearing
Weighted
average
interest
rate
%
-
-
Weighted
average
interest
rate
%
-
-
-
Less than
1 month
$
596,590
596,590
1 – 3
months
$
3 months
– 1 year
$
1 – 5
years
$
-
-
-
-
5+ years
$
-
-
-
-
Less than
1 month
$
1,408,949
-
1,408,949
1 – 3
months
$
-
-
-
3 months
– 1 year
$
-
-
-
1 – 5
years
$
-
-
-
5+ years
$
-
-
-
75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17: 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
2022
$
2021
$
3,329,660
-
-
3,329,660
2,992,415
-
-
2,992,415
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 2022 or 30 June 2021.
NOTE 18: 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
2022
%
100
100
100
100
100
100
2021
%
100
100
100
100
100
100
2022
$
49,337,469
2021
$
43,519,052
1,137
11,103,394
4,905,181
6,614,377
1,159
864
11,102,845
3,531,058
5,174,226
883
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.
Other transactions with related parties
Pathways Corporate Pty Ltd, a company of which Mr. Graziano is a Director, charged the Group director fees of
$61,200 (2021: $55,833), excluding GST, none of which was outstanding at 30 June 2022 (2021: 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 $45,900 (2021: $41,250), excluding GST, none of which was outstanding at 30 June 2022 (2021: Nil). No
interest was payable or accrued.
Value Consult, a company of which Mr. Plaggemars is a Director, charged the Group director fees of $45,900 (2021:
$41,250), excluding GST, none of which was outstanding at 30 June 2022 (2021: Nil). No interest was payable or
accrued.
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 19: 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 income
Total comprehensive loss
2022
$
2021
$
3,763,766
43,300
3,807,066
7,646,621
58,598
7,705,219
596,589
-
596,589
1,248,987
-
1,248,987
95,694,551
2,030,571
(94,514,645)
3,210,477
88,755,630
2,030,571
(84,329,969)
6,456,232
2022
$
(10,184,676)
-
(10,184,676)
2021
$
(15,066,680)
-
(15,066,680)
The Parent Entity (Kin Mining NL) has no commitments or contingencies other than as disclosed in these Notes to
the Consolidated Financial Statements.
NOTE 20: AUDITOR’S REMUNERATION
The auditor of Kin Mining NL is HLB Mann Judd.
Auditor of the parent entity
Audit or review services
2022
$
2021
$
40,068
40,068
33,981
33,981
NOTE 21: 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
2022
2021
$
1,389,409
97,723
-
1,487,132
$
1,424,084
90,036
281,714
1,795,834
77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 22: SUBSEQUENT EVENTS
On 15 July 2022 Mr. Rowan Johnston was appointed to the Board of the Company as a Non-executive Director.
Mr. Johnstons experience and career details are described in the Directors Report.
On 25 August 2022 the Company completed a placement of 129,900,000 shares at $0.075 per share to raise
$9.743M before costs.
On 12 September 2022 the Company closed the 1 for 7 Entitlement Issue that was announced on 18 August 2022.
The Entitlement Issue closed with 52,487,569 applications for new shares and a shortfall of 89,802,995 shares. The
issue of these entitlement shares raised $3.937M in funds for the Company. The shortfall shares can be issued at
the discretion of the Board up until 12 December 2022 at no less than the offer price.
On 15 September 2022 4,000,000 options with an exercise price of $1.25 expired. See Note 15 for details of these
options.
During September 2022 the Company acquired shares in an ASX listed Company at a cost of $1.978M as an
investment.
78
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 2022 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.
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.
b.
c.
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 2022.
This declaration is signed in accordance with a resolution of the board of directors.
Managing Director
Dated this 23rd day of September 2022
79
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 2022, 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 2022 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.
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.
80
We have determined the matters described below to be the key audit matters to be communicated in
our report.
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 freehold land and
buildings and assets in construction with a
carrying value of $9.75 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
the following:
- 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 conducted our own assessment of
potential indicators of impairment;
- We enquired with management, reviewed
ASX announcements and reviewed 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 2022 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.
81
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
− Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
− Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
− Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
− Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
82
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included the directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Kin Mining NL for the year ended 30 June 2022 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
23 September 2022
L Di Giallonardo
Partner
83
ADDITIONAL SECURITIES EXCHANGE INFORMATION
1. Shareholding
(a) Distribution schedule and number of holders of equity securities at
1 -1,000
1,001 -
5,000
5,001 –
10,000
10,001 –
100,000
100,001
and over
Fully Paid Ordinary Shares (KIN)
Unlisted Options – $0.2433 2/12/23
183
-
187
-
262
-
887
-
490
4
Total
2,009
4
The number of holders holding less than a marketable parcel of fully paid ordinary shares at 19 September 2022
is 469.
(b) 20 largest holders of quoted equity securities as at
The names of the twenty largest holders of fully paid ordinary shares (ASX Code: KIN) as at 19 September 2022.
Rank Name
1 Delphi Unternehmensberatung Aktiengesellschaft
2 St Barbara Limited
3 2Invest Ag
4 CS Fourth Nominees Pty Limited
5 BNP Paribas Nominees Pty Ltd
6 Macs Australia Group Pty Ltd
7 Deutsche Balaton Aktiengesellschaft
8 UBS Nominees Pty Ltd
9 Sparta Ag
10
IParks Property Group Pty Ltd
11 Delphi Unternehmensberatung Aktiengesellschaft
12 Mostia Dion Nominees Pty Ltd
13 Cranport Pty Ltd
14 Giuseppe Paolo Graziano
15 Curious Capital Group Pty Ltd
16 Capricorn Mining Pty Ltd
17 Donnybrook Holdings Pty Ltd
18 Mr Luigi Antonio D'adamo + Mr Domenic Leo D'adamo
19 Mitchell Family Investments (Qld) Pty Ltd
20 Goddard Investments No 1 Pty Limited
Total
Number
Percentage
238,845,026
158,125,983
22.78
15.08
67,459,364
43,851,598
34,723,224
29,059,890
22,285,715
19,833,334
19,678,255
17,481,661
16,064,830
9,540,309
9,483,146
8,000,000
8,000,000
7,556,026
6,824,762
6,356,000
6,262,840
5,485,715
6.43
4.18
3.31
2.77
2.13
1.89
1.88
1.67
1.53
0.91
0.9
0.76
0.76
0.72
0.65
0.61
0.6
0.52
734,917,678
70.09
84
ADDITIONAL SECURITIES EXCHANGE INFORMATION
(c) Substantial Shareholders
Holder
1 Delphi Unterehmensberatung Aktiengesellschaft
2 St Barbara Limited
3 Mostia Dion
Shares
Percent
364,333,190
158,125,983
55,605,021
34.75
15.08
5.30
(d) Unquoted Securities
The number of unquoted securities on issue at 19 September 2022:
Unquoted Securities
Number on Issue
Exercise Price
Expiry Date
Unquoted Options
2,000,000
$0.2433
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.
85
TENEMENT TABLE
TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3
Change
During Quarter
REDCASTLE
65 kms South West of Laverton
Tenement ID
M39/1108
P39/6118
Ownership
at end of Quarter
100%
100%
Change
During Quarter
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%
Change
During Quarter
RANDWICK
45 kms North East of Leonora
Change
During Quarter
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement ID
M37/1316
M37/1343
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
86
TENEMENT TABLE
DESDEMONA
20 kms South of Leonora Townsite
PIG WELL
25 kms East of Leonora Townsite
Change
During Quarter
Tenement ID
Tenement ID
E37/1152
E37/1156
E37/1201
E37/1203
E37/1315
E37/1326
E40/283
E40/323
E40/366
E40/369
M40/330
M40/346
P37/8500
P37/8504
P40/1464
P40/1525
P40/1526
P40/1527
P40/1540
Ownership
at end of Quarter
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
Acquired 30/03/2022
Acquired 30/03/2022
Acquired 30/03/2022
IRON KING / MT FOURACRE
45 kms North North West of Leonora
Change
During Quarter
Tenement ID
E37/1134
M37/1327
M37/1364
P37/8359
P37/8455
P37/8458
P37/8459
P37/8460
P37/8461
P37/8491
Ownership
at end of Quarter
100%
100%
0%
100%
100%
100%
100%
100%
100%
100%
Change
During Quarter
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%
P37/8948
P37/8949
P37/8950
P37/8951
P37/8952
P37/8953
P37/8954
P37/8955
P37/8956
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
RAESIDE
8 kms East of Leonora Townsite
Tenement ID
E37/1300
Ownership
at end of Quarter
100%
Change
During Quarter
87
TENEMENT TABLE
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
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%
CARDINIA / MERTONDALE
35 kms East & North East of Leonora Townsite
Change
During Quarter
Tenement ID
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
P37/9171
P37/9172
P37/9173
P37/9221
P37/9222
P37/9223
P37/9224
P37/9225
P37/9226
P37/9227
P37/9228
P37/9229
P37/9230
Change
During Quarter
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%
88
TENEMENT TABLE
P37/8542
P37/8543
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
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
CARDINIA / MERTONDALE (Continued)
35 kms East & North East of Leonora Townsite
P37/9231
P37/9232
P37/9326
P37/9327
P37/9328
P37/9509
P37/9510
P37/9511
P37/9541
100%
100%
100%
100%
100%
100%
100%
100%
100%
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%
Change
During Quarter
89