KULA GOLD LIMITED
ABN 83 126 741 259
2021 ANNUAL REPORT
Kula Gold Limited
Directors’ report
31 December 2021
Corporate Directory
Directors:
Mark Stowell
Mark Bojanjac
John Hannaford
Simon Adams
Chairman
Director
Director
Director
Company secretary:
Luke Abbott
Registered office:
Suite 2, 20 Howard Street
Perth WA. Australia 6000
PO Box Z5207
St Georges Tce
Perth
W. Australia 6831
Telephone: +61 (0)8 6144 0592
Email:
cosec@kulagold.com.au
Website:
www.kulagold.com.au
Auditor:
Elderton Audit Pty Ltd
Level 2
267 St George’s Terrace
Perth
W. Australia 6000
Share registry:
Link Market Services
Level 12, QV1 Building
250 St George’s Terrace
Perth
W. Australia 6000
Telephone: 1300 554 474 or + 61 2 8280 7111
Stock exchange listing:
Australian Securities Exchange
Level 40, Central Park
152 St George’s Terrace
Perth
W. Australia 6000
ASX code: KGD
2
Kula Gold Limited
Directors’ report
31 December 2021
Directors’ Report
The Directors present their report, together with the financial statements of Kula Gold Limited (also referred to
hereafter as the ‘Company’ or ‘Kula’) for the year ended 31 December 2021.
1. Review of operations
During the year, the company continued its focus on mineral exploration on the Southern Cross gold/Kaolin/Lithium,
and Brunswick Ni-PGE, Lithium region projects.
1.1. Southern Cross Region
Location map of Southern Cross tenements
1.1.1. Marvel Loch - Airfield Project
The Marvel Loch - Airfield Project has recently been substantially expanded north of E 77/2621 after identifying
prospective geological structures from geophysics and geochemistry which are capable of hosting significant gold
resources. These exploration licenses cover over 580 km2 but are yet to be granted.
Exploration work during the year focussed on advancing the Crayfish Gold Prospect and the Boomerang Kaolin
Prospect.
Geochemical sampling covering approximately 50 line-kms was completed over priority target areas within E77/2621,
identifying a new gold prospect: G-Star (ASX release 9 November 2021).
3
Kula Gold Limited
Directors’ report
31 December 2021
Location map of Marvel Loch tenements (part of Southern Cross group of projects)
Crayfish Gold Prospect
Four (4) Aircore and 20 RC holes, were completed at the Crayfish Gold Prospect in April 2021. This program resulted
in the discovery of previously unmapped amphibolite within the Crayfish Prospect - considered a major technical
breakthrough given the largest producing gold mines within the prolific Sothern Cross region are hosted by regional
greenstone belts (ASX Release 2 July 2021).
In order to better understand the structural and lithological relationships of the amphibolite at the Crayfish prospect,
and in effort to expand the company’s geological knowledge of the area, a three-hole diamond drilling program was
completed. All drill holes intercepted greenstone, pegmatite and quartz veining (ASX Release 15 December 2021),
and observations from these drill holes have been fundamental in subsequent geological interpretation and
exploration targeting over the entire Marvel Loch-Airfield Project.
Boomerang Kaolin Prospect
Designed to test a gold target, three (3) RC holes (totalling 258m) were completed at Boomerang in April 2021. All
three holes intercepted high quality Kaolin (ASX release 13 July 2021).
These intercepts included a 42m average true thickness and 10m at 7% Halloysite downhole in first drillhole (ASX
Release 13 July 2021). The thick, potentially laterally extensive and pure kaolin warranted a significant RC drill program
to delineate a potential resource. 78 holes were completed, with each RC hole pushed at least 10-15m past the kaolin
clay horizon to test for the underlying rock for gold anomalism. 2 diamond holes have recently been completed for
metallurgical and resource density test work. Sedgman have been appointed to manage the metallurgical test work,
and Hyland Geological and Mining Consultants have been appointed to complete the resource estimation work.
The logistics and infrastructure at and adjacent to Boomerang are excellent, with bitumen road a few kilometres from
the project on the Company’s tenement and rail access, water pipelines and towns are in close proximity, as shown
on the map below.
4
Kula Gold Limited
Directors’ report
31 December 2021
Location map of Boomerang Kaolin Prospect within tenement E77/2621
Rankin Dome Lithium, Gold/ Nickel Project
The Rankin Dome project is held by EL 77/2709, EL 77/2753 & EL 77/2768 tenements directly west and northwest
of the town of Southern Cross. Historical drilling in 1972 by International Nickel Australia intersected 27m @ 0.17%
Ni on the project validating the prospective nature of the Ultramafics which trend SE.
Auger geochemical sampling, designed as an exploratory first pass in the unexplored NW quadrant of E77/2768, was
completed. Assay results from this program revealed an anomalous Lithium cluster coinciding with a magnetic feature
of a 1.5km extent (ASX release 3 February 2022). This tenement is located approximately 130km NW of the world class Mt
Holland Lithium mine in the same terrain as the Yilgarn Province. Mt Holland’s under development by a joint venture
between subsidiaries of Sociedad Química y Minera de Chile S.A. (SQM) and Wesfarmers Limited to develop and
operate the Mount Holland Lithium Project, which will be a unique, fully integrated producer of battery quality lithium
hydroxide in Western Australia.
Second pass auger was conducted in January 2022, with results pending.
5
Kula Gold Limited
Directors’ report
31 December 2021
Auger geochemistry results (Lithium) with regional mag underlaying on E77/2768, showing Lithium results in the SW
line of auger drilling (ASX release 3 February 2022)
Westonia Gold Project
The Company’s geologists undertook reconnaissance work over the Westonia Gold Project (2km from Ramelius
Ltd.’s Edna May Gold mine) to assess the surficial cover to determine an appropriate method for first pass
geochemical sampling. It was concluded that the surficial cover was amenable to auger geochemical sampling.
Rock chip samples were taken at various locations on the tenement, and an auger program was conducted
recently, results pending.
6
Kula Gold Limited
Directors’ report
31 December 2021
Westonia Project Map
1.2.
Southwest Region
Brunswick Ni-PGE Project
The Brunswick Ni-PGE-Au Project is located in the SouthWest Region of WA, and forms a significantland holding in
the prospective Southwest Terrane Greenstones – host to Chalice Gold Mines Ltd, Julimar Ni-Cu-PGE-Au Project
to the North.
The Project is made up of 5 tenements and has a historical gold project located east of Brunswick Junction and
another south of Donnybrook, also prospective for Lithium bearing pegmatites.
Field work successfully identified chalcopyrite – pyrite + pyrrhotite - sphalerite sulphides at one location and pXRF
readings up to 0.18%Ni in altered ultramafic rock in another location. During the year, the Kula geological team
have taken over 1000 soil and 150 rock samples over the tenements. Results have been delayed due to an assay
lab issue, however this is now back on track and final results are awaited for interpretation and next stages of work.
7
Kula Gold Limited
Directors’ report
31 December 2021
In addition to historical gold mines and workings, E70/5660 (above map) contains historical drill results from a West
Coast Holdings/BP Minerals joint venture drill program in 1983/84 which included 15m @9.92g/t Au from 61m depth
among other gold intercepts. In 1987/88 BHP conducted follow up drilling on the tenement intercepting 1m @49.2g/t
Au from 39m depth (ASX Release 30 September 2021).
Grab samples by the Kula geological team in 2021 at the historical Hunters Ventures headframe produced assay
results up to 7.07g/t Au, confirming the existence of gold occurring in economic concentrations within the area.
1.3. Kurnalpi Region
Lake Rebecca Gold Project
Lake Rebecca consists of 311km² of tenure in the Laverton Tectonic Zone which is one of the worlds most prolific
gold belts which has produced ~30Moz. The licenses are Adjacent to Ramelius Resources Ltd (ASX: RMS)
tenements, ~10km south of their Lake Rebecca project where >1million ounce gold resource has been discovered
(announced Feb-2020). E79 Gold Mines recently completed an IPO and has a 20,000-meter aircore drill program
ongoing in the area including at their Lake Yindana Project (shown) .
Newly interpreted greenstone traverses into Kula’s ground as shown by the white dotted lines
8
Kula Gold Limited
Directors’ report
31 December 2021
The Lake Rebecca Project illustrating newly interpreted greenstone within the white dotted lines
Forward Looking Statements:
Any forward-looking information contained in this report is made as of the date of this report. Except as required
under applicable securities legislation, Kula Gold Ltd does not intend, and does not assume any obligation, to update
this forward-looking information. Any forward-looking information contained in this report is based on numerous
assumptions and is subject to all of the risks and uncertainties inherent in the Company’s business, including risks
inherent in resource exploration and development. As a result, actual results may vary materially from those described
in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information
due to the inherent uncertainty thereof.
2. Corporate
A successful capital raise was completed on the 12 of March 2021 which raised approximately $0.93m (before
costs).
A successful capital raise was completed on the 28 of July 2021 which raised approximately $1.8m (before
costs).
9
3. Directors
The names, qualifications and experience of the Directors in office during or since the end of the financial year
are as follows (Directors were in office for the entire period unless otherwise stated):
Mark Stowell
B.Bus, CA, Chairman, Director of Kula Gold since September 2010
Kula Gold Limited
Directors’ report
31 December 2021
Mr Stowell is a chartered accountant with over 20 years of corporate finance and
resource business management experience. He served as manager in the
corporate division of Arthur Andersen and was subsequently involved in the
establishment and management of a number of successful ventures as principal,
including resource companies operating in Australia and internationally.
Mr Stowell was a founder of Anvil Mining Ltd (DRC) and on its Board for seven
years until 2000. He was also a founder and non-executive director of Incremental
Petroleum Limited, an oil and gas producer with operations in Turkey and the USA
until its takeover in 2009. He was Chairman and founder of Mawson West Ltd, a
copper producer and explorer which completed an IPO on the Toronto Stock
Exchange in one of the largest base metal IPO's of 2011.
Other directorships:
Current:
Southern Hemisphere Mining Ltd (Chairman)
Previous 3 years (no longer current):
Eon NRG Ltd
Mark Bojanjac
BCom, CA, Non-executive Director since August 2017
Mr Bojanjac is a Chartered Accountant with over 25 years’ experience in developing
resource companies. Mr Bojanjac was a founding director of Gilt-Edged Mining
Limited which discovered one of Australia’s highest-grade gold mines and was
managing director of a public company which successfully developed and financed
a 2.4m oz gold resource in Mongolia. He also cofounded a 3 million oz gold project
in China.
Mr Bojanjac was most recently Chief Executive Officer of Adamus Resources
Limited and oversaw its advancement from an early stage exploration project
through its definitive feasibility studies and managed the debt and equity financing
of its successful Ghanaian gold mine.
Other directorships
Current:
Polar X Ltd (Executive Chairman)
Previous 3 years (no longer current):
Geopacific Resources Ltd (Non-executive Director)
Simon Adams
B.Bus, ACIS, Non-executive Director since 4 October 2019
(Company Secretary from July 2019 to February 2021)
Mr Adams has a wide range of experience in the area of corporate and financial
management, corporate compliance and business development. Mr Adams has
worked in a range of industries across the resource and industrial sectors including
oil and gas production, pearl production and distribution, power generation systems,
hard-rock exploration and production and finance.
Other directorships
Current:
Eon NRG Ltd (Director)
Previous 3 years (no longer current):
Nil
10
John Hannaford
BCom, CA, FFin, Non-executive Director since 25 May 2020
Kula Gold Limited
Directors’ report
31 December 2021
Mr Hannaford is an experienced Company Director & executive with extensive
experience as an ASX Director, including as Chairman. A qualified Chartered
Accountant and Fellow of the Securities Institute of Australia, Mr Hannaford has
founded and listed several companies that successfully listed in ASX. He has
also advised numerous companies through the ASX listing process in his
Corporate Advisory career. He has established an extensive corporate
network and gained a highly distinguished reputation over the last twenty years
corporate life in Australia.
Other directorships
Current:
Mt Monger Resources Limited; Forrestania Resources Limited, Eon NRG Ltd
Previous 3 years (no longer current):
Paterson Resources Ltd (formerly Hardey Resources Ltd)
4. Principal activities
The Company’s principal activity is the identification and exploration of prospective metals, in particular gold, in
Western Australia.
5. Result of operations
The net loss from operations of the Company was $1,645,522 (2020 – Loss of $548,943).
6. Dividends
No dividend was paid or declared by the Company in the year and up to the date of this report.
7. Significant matters relating to the ongoing viability of operations
No significant events occurred.
8. Significant events occurring after the reporting date
No significant events occurred.
9. Likely developments and expected results of operations
Likely development for the Company as it carries out its business plan are as follows:
expedite the approval of exploration licenses on its West Australian tenements that were applied for in 2021;
continuing to meet its commitments relating to exploration tenements and carrying out further exploration,
permitting and development activities.
10. Environmental regulation
The Company is subject to the state and federal environmental regulation of Western Australia and Australia
respectively. Kula needs to ensure the appropriate standard of environmental care is achieved, and in doing so,
that it is aware of and is in compliance with all environmental legislation. The directors of the Company are not
aware of any breach of environmental legislation for the period under review.
11. Shares under option
3,100,000 unlisted options that convert into fully paid ordinary securities were issued during the year. These
options have an expiry of 1 July 2026 and an exercise price of $0.06.
600,000 unlisted options that convert into fully paid ordinary securities were issued during the year. These options
have an expiry of 1 August 2025 with an exercise price of $0.085.
12. Indemnification and insurance of officers
The Company has made agreements indemnifying all the Directors and Officers of the Company against all
losses or liabilities incurred by each Director or Officer in their capacity as Directors or Officers of the Company
to the extent permitted by the Corporations Act 2001. The indemnification specifically excludes wilful acts of
negligence. The Company paid insurance premiums in respect of Directors’ and Officers’ Liability Insurance
contracts for current Officers of the Company, including Officers of the Company’s controlled entities during the
year. The liabilities insured are damages and legal costs that may be incurred in defending civil or criminal
proceedings that may be brought against the Officers in their capacity as officers of the Company. The total
amount of insurance premiums paid has not been disclosed due to confidentiality reasons.
11
Kula Gold Limited
Directors’ report
31 December 2021
13. Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify the auditors, Elderton Audit Pty Ltd
(“Elderton”), as part of the terms of its audit engagement agreement against claims by third parties arising from
the audit (for an unspecified amount). No payment has been made to indemnify Elderton during or since the
financial year.
14. Employees
The Company had two employees at 31 December 2021, being one full time Company Secretary and one full
time Field Assistant. The Company relies on the services of contractors and consultants to perform all of its
geological works.
15. Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose
of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
During the current and previous year, no fees were paid or payable for non-audit services provided by the auditor
of the Company, its related practices and non-related audit firms:
16. Functional and presentation currency
The amounts included in the Directors’ report and financial statements are presented in Australian dollars, which
is the Company’s functional and presentation currency.
17. Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001
is set out on page 34 and forms part of this report.
18. Meetings of directors
The numbers of meetings of the Company’s Board of directors and of each Board committee held during the year
ended 31 December 2021, and the numbers of meetings attended by each director were:
Board meetings
Number eligible
to attend
7
7
7
7
Number
attended
7
6
7
7
Name
M Stowell
M Bojanjac
S Adams
J Hannaford
19. Corporate governance
The Board of Directors is responsible for the overall strategy, governance and performance of the Company.
The Board has adopted a corporate governance framework which it considers to be suitable given the size, nature
of operations and strategy of the Company. To the extent that they are applicable, and given its circumstances,
the Company adopts the eight essential Corporate Governance Principles and Best Practice Recommendations
('Recommendations') published by the Corporate Governance Council of the ASX. The Company’s Corporate
Governance Statement and Appendix 4G, both of which have been lodged with ASX, are available on the
Company’s website: www.kulagold.com.au.
12
Kula Gold Limited
Directors’ report
31 December 2021
Remuneration report (audited)
This report outlines the remuneration arrangements in place for Directors and other key management personnel of
the Company in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the
purpose of this report, Key Management Personnel (“KMP”) 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 Parent entity.
Details of Directors and Key Management Personnel
The directors and other KMP of the Company during or since the end of the financial year were:
Directors
Mr. Mark Stowell (Chairman)
Mr. Mark Bojanjac (non-executive)
Mr Simon Adams (non-executive)
Mr John Hannaford (non-executive)
Remuneration Policy
In the absence of a remuneration committee, the Board is responsible for determining and reviewing compensation
arrangements for the Directors and executives. The key principles which apply in determining remuneration
structure and levels are:
establish appropriate performance hurdles for variable executive remuneration.
set competitive fixed remuneration packages to attract and retain high calibre directors and executives;
structure variable remuneration rewards to reflect the stage of development of the Company’s operations; and
The Board undertakes an annual review of remuneration arrangements and may seek Independent external advice
if required but did not employ a remuneration consultant during the year ended 31 December 2021.
The structure of Non-Executive Director and Executive remuneration is separate and distinct.
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 high calibre, whilst incurring costs that are acceptable to shareholders.
In accordance with the Company’s Constitution and the ASX Listing Rule, the maximum aggregate remuneration that
may be paid to Non-Executive Directors is currently set at $300,000 per annum. The amount of aggregate
remuneration and the manner in which it is apportioned is reviewed annually. The Board considers the fees paid to
non-executive directors of comparable companies and external advice (if required), when undertaking the annual
review process.
Executive Director and Senior Manager Remuneration
Remuneration consists of fixed and variable components (currently comprising a long-term incentive scheme).
Fixed remuneration of executive directors/managers currently consists of cash remuneration. Fixed remuneration
levels are reviewed annually by the Board, taking into consideration past performance, time commitments, relevant
market comparatives and the Company’s stage of development. The Board has access to external advice if
required.
The Board determines the appropriate form and levels of variable remuneration as and when they consider rewards
are warranted.
The following table shows the Company’s performance over the reporting period and the previous four financial
years against overall remuneration for these years:
2021
2020
Year-end share price
Profit/(Loss) per share
Total KMP Remuneration
$0.048
($0.87)
$170,000
$0.042
($0.006)
187,839
2019
$0.037
$0.00
$340,145
2018
$0.020
($0.001)
$322,772
2017
$0.023
($0.004)
$321,215
13
Details of the remuneration of the directors and key management personnel of the Company are set out in the
following tables:
Key management personnel –
Kula Gold Limited
Directors’ report
31 December 2021
2021
Directors
M Stowell
M Bojanjac
S Adams
J Hannaford
Total paid by the
Company
2020
Directors
M Stowell
M Bojanjac
S Adams
J Hannaford
Total paid by the
Company
Director
Fee
$
9,000
6,000
6,000
6,000
Base
Salary
$
-
-
-
-
-
56,000
36,000
24,000
27,000
27,000
143,000
Consult-
ing
$
Annual
Leave
$
Post-
employment
benefits
$
Termin-
ation
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL
$
65,000
42,000
30,000
33,000
170,000
Base
Salary Director Fee
$
-
-
-
-
$
3,000
3,000
3,000
3,000
Consult
-ing
$
85,300
12,000
78,539
-
Annual Leave
$
-
-
-
-
Post-
employme
nt benefits
$
-
-
-
-
Termin-
ation
$
-
-
-
-
-
12,000
175,839
-
-
-
TOTAL
$
88,300
15,000
81,539
3,000
187,839
Bonus
There were no bonuses paid or entitled to be paid in 2021 (2020: Nil).
Share holdings
The number of shares in the Company held during the financial year by Directors and Key Management Personnel
of the Company, including their personally related parties, is set out below.
2021
M Stowell
M Bojanjac
J Hannaford
S Adams
Balance at the
start of the year
18,072,982
3,000,000
14,212,091
774,997
Granted as
compensation
-
-
-
-
Other changes
during the year
-
-
264,854
-
Balance at the end
of the year
18,072,982
3,000,000
14,476,945
774,997
Other transactions with key management personnel
Ascot Park Enterprises Pty Ltd and Merchant Holdings Pty Ltd, both related parties of Mr Stowell provides, rented
premises and specialised XRF equipment on normal commercial terms to the company. The rent and outgoings
paid to these entities by Kula Gold Ltd in 2021 was $19,349 (2020 - $9,485) and $24,300 (2020 – $2,400) respectively.
END OF REMUNERATION REPORT
This report is made in accordance with a resolution of directors.
Simon Adams
Director
Perth, 31 March 2022
14
Kula Gold Limited
Statement of profit and loss and other comprehensive income
For the year ended 31 December
Notes
2021
$
2020
$
Other income
5
14,541
36,601
Expenses
Administration expenses
Share based payments
Exploration expenses
Finance costs
Gain/(Loss) of disposal of asset
Profit/(Loss) from continuing operations
Income tax expense
Loss for the year after tax
Other comprehensive expense
Movement in fair value of financial assets
Total other comprehensive loss for the year
Total comprehensive loss for the year
Loss for the year attributable to:
Equity holders of the parent
Total comprehensive loss for the year
Attributable to:
Equity holders of the parent
6
16(a)
(536,319)
(86,047)
(1,037,697)
-
-
(1,660,063)
(296,598)
-
(281,869)
(7,410)
331
(548,943)
7
-
(1,645,522)
-
(548,943)
-
-
(1,645,522)
-
-
(548,943)
(1,645,522)
(548,943)
(1,645,522)
(1,645,522)
(548,943)
(548,943)
Cents
Cents
Loss per share attributable to the ordinary equity holders of
the Company:
Basic and diluted loss per share in cents
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
8
(0.87)
(0.53)
15
Kula Gold Limited
Statement of financial position
As at 31 December
Notes
2021
$
2020
$
ASSETS
Current assets
Cash and cash equivalents
Receivables and other assets
Total current assets
Non-current assets
Property, plant and equipment
Right of use assets
Exploration Tenement
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Lease liability
Total current liabilities
Non-current liabilities
Provisions
Lease liability
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Equity attributable to equity holders of parent
Non-controlling interest
Total equity
9
10
11
12
13
14
12
14
12
15
16(a)
16(b)
2,138,935
152,178
2,291,112
1,188,957
65,476
1,254,433
-
26,769
408,189
434,958
-
44,664
-
44,664
2,726,071
1,299,097
520,999
5,292
17,895
544,186
112,466
-
17,895
130,361
31,000
10,501
41,501
-
27,581
27,581
585,687
157,942
2,140,383
1,141,155
152,838,508
549,805
150,279,805
463,758
(151,247,930) (149,602,408)
1,141,155
-
1,141,155
2,140,383
-
2,140,383
The above statement of financial position should be read in conjunction with the accompanying notes.
16
Notes
Contributed
equity
Share-based
payments
reserve
Consolidation
reserve
Total
reserves
Accumulated
losses
Balance at 1 January 2020
148,431,253
65,000
398,758
463,758
(149,053,465)
Profit/(Loss) for the year
Other Comprehensive Income
Total comprehensive
income/(loss) for the year
Contribution of equity, net of
transaction costs
-
-
-
1,848,551
-
-
-
-
-
-
-
-
-
-
-
-
Kula Gold Limited
Statement of changes in equity
For the year ended 31 December
Total equity
(158,454)
(548,943)
-
(548,943)
-
(548,943)
(548,943)
-
1,848,551
Balance at 31 December 2020
15, 16
150,279,804
65,000
398,758
463,758
(149,602,408)
1,141,154
Balance at 1 January 2021
150,279,804
65,000
398,758
463,758
(149,602,408)
1,141,154
Profit/(Loss) for the year
Other Comprehensive Income
Total comprehensive
income/(loss) for the year
ESIP Option Allotment
Contribution of equity, net of
transaction costs
-
-
-
-
2,558,704
-
-
-
86,047
-
-
-
-
-
-
-
-
-
86,047
-
(1,645,522)
-
(1,645,522)
-
(1,645,522)
(1,645,522)
-
-
86,047
2,558,704
Balance at 31 December 2021
15, 16
152,838,508
151,047
398,758
549,805
(151,247,930)
2,140,383
The above statement of changes in equity should be read in conjunction with the accompanying notes.
17
Kula Gold Limited
Statement of cash flows
For the year ended 31 December
Notes
2021
$
2020
$
Cash flows from operating activities
Payments to suppliers and employees – continuing operations
Receipts for services
Receipts from ATO
Interest income
Net cash outflow from operating activities
(1,409,797)
-
14,520
22
(1,395,255)
(686,012)
-
36,500
95
(649,417)
20
Cash flows from investing activities
Proceeds from sale of investment
Purchase of fixed assets
Exploration Expenditure
Net cash inflow from investing activities
Cash flows from financing activities
Loan advance from Merchant Holdings Pty Ltd and Geopacific
Resources Ltd
Loan repayment to Merchant Holdings Pty Ltd and Geopacific
Resources Ltd
Net proceeds from equity raised
Net cash outflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at end of year
9
-
(12,378)
(377,189)
(389,567)
1,890
(3,299)
-
(1,409)
-
13,000
-
2,734,800
2,734,800
949,978
1,188,957
2,138,935
(134,810)
1,940,222
1,818,412
1,167,586
21,371
1,188,957
The above statement of cash flows should be read in conjunction with the accompanying notes.
18
Kula Gold Limited
Notes to the financial statements
31 December 2021
Summary of significant accounting policies
1
The principal accounting policies adopted in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated. These financial statements are
the financial statements of Kula Gold Limited.
(a) Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board and Corporations Act 2001. Kula Gold Limited is a
for-profit entity for the purposes of preparing the financial statements.
The financial statements of Kula Gold Limited also comply with International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board (IASB).
These financial statements have been prepared under the historical cost convention except for the Financial Asset which
is carried at fair value.
(b) Going concern
The financial report has been prepared on the going concern basis, which contemplates continuity of normal business
activities and realisation of assets and settlement of liabilities in the ordinary course of business.
For the year ended 31 December 2021, the Company incurred a loss from operations of $1,645,522 (2020: loss of
$548,943) and recorded net cash outflows from operating activities of $1,395,255 (2020: $649,471). At 31 December
2021, the Company had net current assets of $1,746,926 (2020: $1,124,071) with a cash balance of $2,138,935 (2020:
$1,188,957).
The Company’s ability to continue as a going concern is dependent upon it maintaining sufficient funds for its operations
and commitments. The Directors continue to be focused on meeting the Company’s business objectives and is mindful
of the funding requirements to meet these objectives. The Directors consider the basis of going concern to be appropriate
for the following reasons:
The current cash balance of the Company relative to its fixed and discretionary expenditure commitments;
given the Company’s market capitalisation and the underlying prospects for the Company to raise further funds from
the capital markets; and
the fact that future exploration and evaluation expenditure is generally discretionary in nature (i.e. at the discretion of
the Directors having regard to an assessment of the Company’s eligible expenditure to date and the timing and
quantum of its remaining earn-in expenditure requirements). Subject to meeting certain minimum expenditure
commitments, further exploration activities may be slowed or suspended as part of the management of the Company’s
working capital.
The Directors are confident that the Company can continue as a going concern and as such are of the opinion that the
financial report has been appropriately prepared on a going concern basis. However, should the Company be unable to
raise further required financing from its major lender or other sources, there is uncertainty which may cast doubt as to
whether or not the Company will be able to continue as a going concern and whether it will realise its assets and extinguish
its liabilities in the normal course of business and at the amounts stated in the financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts nor to the amounts and classification of liabilities that might be necessary should the Company not continue as a
going concern.
(c) Critical accounting estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 3.
(d) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the Company’s operations are measured using the currency of the
primary economic environment in which it operates (”the functional currency”). The financial statements are presented in
Australian dollars, which is the Company's functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
19
Kula Gold Limited
Notes to the financial statements
31 December 2021
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in profit or loss, except when they are attributable to part of the net investment in a foreign operation.
(e) Revenue recognition
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial
assets.
(f)
Income tax
The income tax expense or benefit for the period is the tax payable on the current period's taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of
the reporting period in the countries where the Company’s subsidiaries operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject
to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Deferred income tax is provided using the balance sheet full liability method on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred income tax
liability is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither the accounting nor the taxable profit or loss. Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability
is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases
of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities
are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax
balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
(g) Financial assets at fair value through other comprehensive income (“Financial Assets”)
Investments in equity instruments of other entities (other than subsidiaries) are Financial Assets and are initially recognised
at their fair value. After initial recognition investments in equity investments have been designated as fair value through
other comprehensive income. When the equity investment is derecognised, fair value movements within other
comprehensive income are not recycled through profit or loss.
(h) Leases
The accounting policy for leases under AASB 16 is as follows:
For any new contracts entered into as a lessee, the Company considers whether a contract is, or contains a lease. A lease
is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of
time in exchange for consideration’.
To apply this definition the Company assesses whether the contract meets three key evaluations which are whether:
•
the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being
identified at the time the asset is made available to the Company;
the Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout
the period of use, considering its rights within the defined scope of the contract; and
the Company has the right to direct the use of the identified asset throughout the period of use. The Company assesses
whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.
•
•
At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance sheet. The
right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct
costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease, and
any lease payments made in advance of the lease commencement date (net of any incentives received). The Company
depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the right-of-use asset for
impairment when such indicators exist. At the commencement date, the Company measures the lease liability at the
present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate
is readily available or the Company’s incremental borrowing rate.
20
Kula Gold Limited
Notes to the financial statements
31 December 2021
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance
fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee
and payments arising from options reasonably certain to be exercised. Subsequent to initial measurement, the liability will
be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification,
or if there are changes in in-substance fixed payments. When the lease liability is remeasured, the corresponding
adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero. The
Company has elected to account for short-term leases and leases of low-value assets using the practical expedients.
Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense
in profit or loss on a straight-line basis over the lease term. Lease liabilities are shown directly on the statement of financial
position (current and non-current).
(i) Business combinations
The acquisition method of accounting is used to account for all business combinations regardless of whether equity
instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the
fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Company. The
consideration transferred also includes the fair value of any asset or liability resulting from a contingent consideration
arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition related costs are expensed
as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition
basis, the Company recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling
interest's proportionate share of the acquiree’s net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree over the fair value
of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net
identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is
recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate
at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
(j) Profit or loss from discontinued operations
A discontinued operation is a component of the entity that either has been disposed of, or is classified as held for sale,
and:
represents a separate major line of business or geographical area of operations
is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations;
or
is a subsidiary acquired exclusively with a view to resale
Profit or loss from discontinued operations, including prior year components of profit or loss, are presented in a single
amount in the statement of profit or loss and other comprehensive income. This amount, which comprises the post-tax
profit or loss of discontinued operations and the post-tax gain or loss resulting from the measurement and disposal of
assets classified as held for.
The disclosures for discontinued operations in the prior year relate to all operations that have been discontinued by the
reporting date for the latest period presented.
(k) Impairment of non-financial assets
Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and
value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets
(cash-generating units). Non-financial assets, other than goodwill and exploration and evaluation expenditure, that suffered
an impairment are reviewed for possible reversal of the impairment at each reporting date.
(l) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits
held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
21
Kula Gold Limited
Notes to the financial statements
31 December 2021
(m) Trade and other receivables
Initial recognition
Trade receivables are initially recognised at their transaction price and other receivables at fair value. Receivables that are
held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal
and interest are classified and subsequently measured at amortised cost. Receivables that do not meet the criteria for
amortised cost are measured at fair value through profit or loss.
Subsequent measurement
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net
changes in fair value recognised in the statement of profit or loss.
Impairment
The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried
at amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk
since initial recognition of the respective financial instrument. The Company always recognises the lifetime expected credit
loss for trade receivables carried at amortised cost. The expected credit losses on these financial assets are estimated
based on the Company’s historic credit loss experience, adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of both the current as well as forecast conditions at the reporting date.
In relation to all other receivables measured at amortised cost, the Company applies the credit loss model. The expected
credit loss model requires the Company to account for expected credit losses and changes in those expected credit losses
at each reporting date to reflect changes in credit risk since initial recognition of the financial asset. In particular, the
Company measures the loss allowance at an amount equal to lifetime expected credit loss (“ECL”) if the credit risk on the
instrument has increased significantly since initial recognition. On the other hand, if the credit risk on the financial
instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that
financial instrument at an amount equal to the ECL within the next 12 months.
The Company considers an event of default has occurred when a financial asset is more than 90 days past due or external
sources indicate that the debtor is unlikely to pay its creditors, including the Company. A financial asset is credit impaired
when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as a default or
past due event has occurred. The Company writes off a financial asset when there is information indicating the counterparty
is in severe financial difficulty and there is no realistic prospect of recovery
(n) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They carried at amortised cost using the effective interest rate method and, except for those with maturities
greater than 12 months after the reporting period which are classified as non-current assets, are classified as current
assets.
(o) Impairment of financial assets
The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or
group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are
incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial
recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of
the financial asset or group of financial assets that can be reliably estimated.
For loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at
the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss
is recognised in the statement of comprehensive income. If a loan has a variable interest rate, the discount rate for
measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient,
the Company may measure impairment on the basis of an instrument’s fair value using an observable market price.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised (such as an improvement in the debtor’s credit rating), the reversal
of the previously recognised impairment loss is recognised in the statement of comprehensive income.
(p) Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item
22
Kula Gold Limited
Notes to the financial statements
31 December 2021
can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are
incurred.
Depreciation on other assets is calculated using the straight line method to allocate their cost, net of their residual values,
over their estimated useful lives as follows:
- Buildings and leasehold improvements
- Motor vehicles
- Plant and equipment
- Furniture and fittings
25 years
3 years
6 years
6 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
statement of comprehensive income.
(q) Exploration and evaluation expenditure
Exploration and evaluation costs related to an area of interest are expensed as incurred except where they may be carried
forward as an item in the statement of financial position where the rights of tenure of an area are current and one of the
following conditions is met:
(i)
(ii)
the costs are expected to be recouped through successful development and exploitation of the area of interest, or
alternatively, by its sale; or
exploration and/or evaluation activities in the area of interest have not at the reporting date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active
and significant operations in, or in relation to, the area of interest is continuing.
Exploration and evaluation expenditure is written-off when it fails to meet at least one of the conditions outlined above or
an area of interest is abandoned. Exploration and evaluation assets are assessed for impairment when facts and
circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable
amount. When facts and circumstances suggest that the carrying amount exceeds the recoverable amount, the impairment
loss will be measured in accordance with the Company’s impairment policy (note 1(m)).
(r) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables
are presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised
initially at their fair value and subsequently measured at amortised cost using the effective interest method.
(s) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in profit or loss over the period of the borrowings using the effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or
all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is
no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a repayment for
liquidity services and amortised over the period of the facility to which it relates.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting date.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharge,
cancelled or expired.
(t) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds.
(u) Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it
23
Kula Gold Limited
Notes to the financial statements
31 December 2021
is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect
to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the
present obligation at the reporting date. The discount rate used to determine the present value reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the
passage of time is recognised as interest expense.
(v) Rehabilitation provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that
can be measured reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
A provision is made for the estimated cost of rehabilitation relating to areas disturbed during exploration activities.
Provision has been made in full for all disturbed areas at the reporting date based on current estimates of costs to
rehabilitate such areas.
Uncertainty exists as to the amount of rehabilitation obligations which will be incurred due to the impact of changes in
environmental legislation.
(w) Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and other short term benefits expected to be settled
within 12 months after the end of the period in which the employees render the related service are recognised in respect
of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled.
Other long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of
the period in which the employee renders the related service 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 end of the reporting period using the projected unit credit method. Consideration is given to the expected future
wage and salary levels, experience of employee departures and periods of service. Expected future payments are
discounted using market yields at the end of the reporting period on high quality corporate bonds with terms to maturity
and currency that match, as closely as possible, the estimated future cash outflows.
The obligations are presented as current liabilities in the statement of financial position if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual
settlement is expected to occur.
Share-based payments
Share-based compensation benefits are provided to employees via the Kula Gold Limited Option Plan (“Plan”). Information
relating to the Plan is set out in note 18.
The fair value of options granted under the Plan is recognised as an employee benefit expense with a corresponding
increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted,
which includes any market performance conditions and the impact of any non-vesting conditions, but excludes the impact
of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The
total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions
are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to
vest based on the non-marketing vesting conditions. It recognises the impact of the revision to original estimates, if any, in
profit or loss, with a corresponding adjustment to equity.
(x) Contributed equity
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.
(y) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
24
Kula Gold Limited
Notes to the financial statements
31 December 2021
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
Financial Risk Management
2
The Company's activities expose it to a variety of financial risks: market risk (including currency risk, equity price risk and
interest rate risk), credit risk and liquidity risk. The Company's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
Company. The Company uses different methods to measure different types of risk to which it is exposed. These methods
include sensitivity analysis in the case of interest rate and foreign exchange risks. Liquidity risk is managed by budgets to
structure maturity dates of investments to meet anticipated outgoings of expenditure.
Risk management is carried out under policies approved by the Board of directors.
(a) Market risk
i. Foreign exchange risk
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis
and cash flow forecasting.
It is not the Company’s present policy to hedge foreign exchange risk.
The Company's functional currency is Australian dollars (AUD).
The Company does not have significant foreign currency risk at the statement of financial position date.
ii.
Interest rate risk
The Company is exposed to interest rate risk arising from cash and cash equivalents.
Company sensitivity
At 31 December 2021, the Company's exposure to interest received rates is not deemed to be material to its
primary activities and the interest is generally floating rate. Interest payable would not be deemed material to
the results of the Company. Reasonably possible movements in interest rates would not have a material impact
on the results of the Company or the fair value of any borrowings.
iii. Credit risk
Cash deposits are held with a major Australian Bank, National Australia Bank (NAB). All counterparties with whome
the Company holds cash on deposit have a credit rating with Standard and Poors of A or above (long term)
(b) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through timing of
rollover dates on its term deposits as funds allow. This ensures the best balance between highest interest rates available
and funding requirements.
Maturities of financial liabilities
The tables below analyse the Company's financial liabilities into relevant maturity groupings based on the remaining period
at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted
cash flows.
25
Kula Gold Limited
Notes to the financial statements
31 December 2021
At 31 December 2021
Less
than 6
months
Contractual maturities of financial liabilities
Total
contractual
cash flows
Between
2 and 5
years
Between
1 and 2
years
Over 5
years
6 - 12
months
Carrying
Amount
liabilities
Trade and other payables/Borrowings
Total non-derivatives
520,999
520,999
-
-
-
-
-
-
-
-
520,999
520,999
520,999
520,999
Less than
6 months
6 - 12
months
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash flows
At 31 December 2020
Trade and other payables/Borrowings
Total non-derivatives
112,466
112,466
-
-
-
-
-
-
-
-
112,466
112,466
Carrying
Amount
liabilities
$'000
112,466
112,466
Contractual maturities of financial liabilities
(c) Fair value measurements
The methods for estimating fair value are outlined in the relevant notes to the financial statements. The carrying amounts
of financial assets and liabilities of the Company approximates their fair values. The fair value of the unlisted investment
has been determined using comparable transactions.
Under AASB 13 the fair value measurements used for the equity investment is level 3 on the fair value hierarchy. Level
3 is defined as the valuation technique for which the lowest level input that is significant to the fair value measurement is
unobservable.
Critical Accounting Estimates and Judgements
3
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
The Company makes judgements, estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, seldom equal the related actual results. The judgements, estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below.
Segment information
4
The Company has determined that it operates in one operating segment, being exploration in Western Australia and this
is the basis on which internal reports are provided to the Directors for assessing performance and determining the
allocation of resources in the Company. Accordingly, the financial results of the segment are equivalent to the financial
statements of the Company as a whole.
5
Other income
Interest income
Receipts from Government Payments
Other income
2021
$
2020
$
21
-
14,520
14,541
95
36,500
6
36,601
26
6
Administration expenses from continuing operations
Depreciation
Furniture and Fittings
Right of use assets
Employee benefit expense
Share based payment
Professional and consulting expenses
Interest on right of use liabilities
Other expenses
7
Income tax
Current income tax expense
(Decrease)/increase in deferred income tax
Total income tax (benefit)/expense
(a)
Numerical reconciliation of income tax expenses to prima facie
tax payable
Profit/(Loss) from operations before income tax expense
Tax expense/(benefit) at the Australian tax rate of 25% (2020:
26%)
Tax effect of amounts which are not deductible (taxable) in
calculating taxable income:
Income tax benefit not recognised
Carried forward losses utilised
Total income tax expense
(b)
Tax losses
Australian unused tax losses for which no deferred tax asset has
been recognised
Potential tax benefit at the Australian tax rate of 25% (2020: 26%)
Kula Gold Limited
Notes to the financial statements
31 December 2021
2021
$
2020
$
12,377
17,895
195,156
86,047
17,374
2,274
291,243
622,366
-
-
-
3,299
9,021
187,447
-
22,482
1,353
72,996
296,598
-
-
-
(1,645,522)
(548,943)
(411,380)
(164,683)
21,703
389,677
-
164,683
-
4,987,148
126,787
2,728,510
709,413
Benefits for tax losses will only be obtained if:
(i)
the entity derives future Australian assessable income of a nature and
of an amount sufficient to enable the benefit from the deductions for
the losses to be realised;
the entity continues to comply with the conditions for utilisation
imposed by tax legislation; and
(ii)
(iii) no changes in tax legislation adversely affect the Company in realising
the benefit from the deductions for the losses.
8
Earnings per share
Basic loss per share amounts are calculated by dividing profit / (loss) for the period attributable to ordinary equity
holders of the Company by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings / (loss) per share amounts are calculated by dividing the profit / (loss) attributable to ordinary equity
holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the
weighted average number of ordinary shares that would be issued on conversion of all diluted potential ordinary
shares into ordinary shares.
The following reflects the income and share data used in the basic earnings per share computations:
27
8 Earnings per share (Cont)
Kula Gold Limited
Notes to the financial statements
31 December 2021
2021
$
2020
$
Profit/(loss) attributable to ordinary equity holders of the parent for basic
and diluted earnings per share
(1,645,522)
(548,945)
The weighted average number of ordinary shares on issue during the
financial year used in the calculation of basic earnings per share
Effect of dilution:
Share options
The weighted average number of ordinary shares on issue during the
financial year used in the calculation of diluted earnings per share
Basic earnings/(loss) per share
Diluted earnings per share
9
Cash and cash equivalents
Cash at bank and in hand
10 Receivables and other assets
Goods and services tax receivable
Prepayment and other receivables
11 Property, plant and equipment
Gross carrying amount – at cost
Accumulated depreciation
Net carrying amount
Opening book value (net of depreciation)
Acquisitions
Depreciation charge
Disposal
Closing book amount (net of depreciation)
No.
No.
189,917,358
103,180,458
-
-
189,917,358
103,180,458
Cents per
share
(0.87)
(0.87)
Cents per
share
(0.53)
(0.53)
2,138,935
2,138,935
1,188,957
1,188,957
2021
$
2020
$
59,418
92,760
152,178
94,588
(94,588)
-
-
12,378
(12,378)
-
-
25,082
40,394
65,476
82,210
(82,210)
-
-
3,298
(3,298)
-
-
28
Kula Gold Limited
Notes to the financial statements
31 December 2021
12 Right of use assets and lease liabilities
The Company leases office facilities in Perth, W. Australia. The lease runs for a period of three years with an
option to renew available at the end of the lease period. Lease payment amounts are set based on fixed annual
increases.
2021
$
2020
$
a. Right of use asset
Buildings -
Cost
Opening balance
Additions
Closing balance
Accumulated depreciation
Opening balance
Additions
Closing balance
Closing balance
b. Right of use liabilities
Current lease liabilities
Opening balance
Additions
Movements
Closing balance
Non-current lease liabilities
Opening balance
Additions
Movements
Closing balance
13 Exploration Tenements
Carrying Value
Opening Balance
Capitalisation of tenement
Closing Balance
53,685
-
53,685
(9,021)
(17,895)
(26,769
26,769
17,895
-
-
17,895
27,581
-
(17,079)
10,501
2021
408,189
-
408,189
408,189
Company is of the view that the only tenement that meets criteria (1.q.i) and (1.q.ii) is the Boomerang project on
tenement E77/2621 where the company has the potential to identify a resource in the future.
14 Provisions
Current provisions -
Employee entitlements - annual leave
Non-current provisions -
Provisions of rehabilitation
15 Equity
Share Capital
215,175,632 fully paid ordinary shares
(2020: 155,805,632)
Movement in share capital
Equity at start of the year
Allotment of shares*
Equity at end of period
Year ended
31 December 2021
$
150,279,805
2,558,703
152,838,508
No.
155,805,632
59,370,000
215,175,632
29
2021
$
2020
$
5,292
31,000
152,838,508
150,279,805
Year ended
31 December 2020
$
148,431,253
1,848,552
150,279,805
No.
58,794,579
97,011,053
155,805,632
-
53,685
53,685
-
(9,021)
(9,021)
44,664
-
17,895
-
17,895
-
35,791
(8,210)
27,581
2020
-
-
-
-
-
-
Kula Gold Limited
Notes to the financial statements
31 December 2021
2021
$
2020
$
151,047
398,758
549,805
65,000
86,047
151,047
65,000
398,758
463,758
65,000
-
65,000
Year ended
31 December 2021
No
$
-
86,047
86,047
-
3,700,000
3,700,000
16 Reserves and accumulated losses
Share-based payments reserve
Consolidation reserve
(a) Movement in reserves
Share-based payments reserve
Balance at start of the year
ESIP Option Allotment
Balance at end of the year
Movement in ESIP options
Options at start of the year
Options issued during the period
Options at end of period
The company issued 3,700,000 options to its employees. These options were valued using the Black Scholes
model. Key variables for the valuations were as follows:
No of Options
Current Price
Volatility
Risk Free Rate
Exercise price
Maturity Date
Start Date
No of Options
Current Price
Volatility
Risk Free Rate
Exercise price
Maturity Date
Start Date
600,000
$0.066
106%
0.57%
$0.085
1- AUG- 2025
16-AUG - 2021
3,100,000
$0.04
107.71%
0.79%
$0.06
1 – July - 2026
28-June-2021
Consolidation reserve
Balance at start of the year
Balance at end of the year
(b) Accumulated losses
Opening balance
Net profit/(loss) for the year
Reclassification of reserves to accumulated losses
Closing balance
30
Year ended
31 December 2021
$
$
398,758
398,758
398,758
398,758
(149,602,408)
(1,645,522)
-
(151,247,930)
(149,053,465)
(548,944)
-
(149,602,408)
16 Reserves and accumulated losses (Cont)
(c) Nature and purpose of reserves
(i)
Share-based payments reserve
The share-based payments reserve is used to recognise the grant
date fair value of options issued.
(ii)
Consolidation reserve
This reserve represents the difference between the minority interest
recognised and the equity contributions received from Geopacific
Resources Ltd in 2019.
17 Key management personnel disclosures
(a) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Termination benefits
Detailed remuneration disclosures are provided in the remuneration report
on pages 13 to 14
18 Remuneration of auditors
During the year the following fees were paid or payable for services
provided by the auditor of the parent entity, its related practices and
non-related audit firms:
Audit and other assurance services
Elderton
Kula Gold Limited
Notes to the financial statements
31 December 2021
Year ended
31 December 2021
$
$
170,000
-
-
170,000
187,784
-
-
187,784
17,378
17,378
26,075
26,075
19 Related party transactions
From July 2020, the Company commenced a lease of premises at 20 Howard Street, Perth from an entity that is
controlled by Mark Stowell. The terms of this lease are set at a rate that is considered to be arms length for
comparable premises. The rental income paid for this premises during 2021 was $19,349 (2020 - $9,485).
During 2020, the Company hired specialised XRF equipment from an entity that is controlled by Mark Stowell on
commercial arms length terms. The hire fees paid for this equipment during 2021 were $24,300 (2020 - $2,400)
Other than above, the Company had no related party transactions for the year ended 31 December 2021.
31
Kula Gold Limited
Notes to the financial statements
31 December 2021
2021
$
2020
$
(1,645,522)
30,273
5,607
5,292
276,117
-
(49,942)
(17,080)
-
-
(1,395,255)
(548,943)
12,320
-
-
(68,845)
-
(42,818)
(8,210)
(331)
7,410
(649,417)
20 Reconciliation of profit/(loss) after income tax to net cash outflow
from operating activities
Operating activities:
Profit/(loss) for the year
Depreciation and amortisation
Equity remuneration paid
Change in annual leave provision
(Decrease)/ Increase in trade and other payables
Increase/(Decrease) in receivable
(Increase)/Decrease in prepayments
(Increase)/Decrease in right of use assets
Loss/(Gain) on disposal of assets
Finance costs
Net cash outflow from operating activities
21 Events occurring after the reporting date
NIL
End of Financial Report
32
Kula Gold Limited
Directors' declaration
31 December 2021
In accordance with a resolution of the directors of Kula Gold Limited, I state that:
1. In the opinion of the directors:
(a) the financial statements and notes of Kula Gold Limited for the financial year ended 31 December 2021 are
in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company’s financial position as at 31 December 2021 and of its
performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001;
(b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed
in Note 1; and
(c) subject to the matters set out in note 1(b), there are reasonable grounds to believe that Kula Gold Limited
will be able to pay its debts as and when they become due and payable.
2. This declaration has been made after receiving the declarations required to be made to the directors by the Chief
Financial Officer and a Company Director in accordance with section 295A of the Corporations Act 2001 for
financial year ended 31 December 2021.
On behalf of the Board
Simon Adams
Director
Perth
31 March 2022
33
Auditor's Independence Declaration
As auditor for the audit of Kula Gold Limited for the year ended 31 December 2021, I declare that, to the
best of my knowledge and belief, there have been:
I)
II)
no contraventions of the independence requirements of the Corporations Act 2001 in
relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Elderton Audit Pty Ltd
Nicholas Hollens
Managing Director
31 March 2022
Perth
T +61 8 6324 2900 E info@eldertongroup.com A Level 2, 267 St Georges Terrace, Perth WA 6000
ABN 51 609 542 458 W www.eldertongroup.com P PO Box 983 West Perth WA 6872
34
Independent Audit Report to the members of Kula Gold Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Kula Gold Limited (the Company), which comprises the statement of financial position
as at 31 December 2021, the statement of profit or loss and other comprehensive income, the statement of changes in equity
and the 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 Company is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Company's financial position as at 31 December 2021 and of its financial performance
for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described as in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for
Professional Accountants (the code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors
of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter
described below to be a key audit matter to be communicated in our report.
Total Expenditure
Refer to accounting policy Note 1
Key Audit Matter
How our audit addressed the matter
the
Expenditure is a substantial
financial
the Company,
representing the majority of shareholder funds
spent during the financial year.
statements
figure
of
in
Given this represents a significant volume of
transactions, we considered it necessary to
assess whether the Company’s expenses had
been accurately recorded, whether the services
provided had been delivered in the appropriate
period, and whether all expenses related to
activities undertaken by Kula Gold.
Our audit work included, but was not restricted to, the following:
• We examined the Company’s approval processes in relation to
making payments to its suppliers and employees.
• We selected a systematic sample of expenses using different
sampling methods, and vouched each item selected to invoices
and other supporting documentation.
• We reviewed post year end payments and invoices to ensure
that all goods and services provided during the financial year
were recognised in expenses for the same period.
35
•
•
For exploration expenses, we ensured that those relate to valid
tenements and in case of capitalisation, have been recognised
in accordance with AASB 6 Exploration For And Evaluation Of
Mineral Resources.
From those charged with governance of the Company we
requested confirmations from all directors and other key
management personnel of the Company during the financial year
of their remuneration and any other transactions between them,
their related parties and the Company.
• Performed analytical review and substantiated significant
variance from expected amounts
Based on our testing, no issues were noted.
Other Information
The directors are responsible for the other information. The other information obtained at the date of this auditor's report is
included in the annual report 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 on the other information obtained prior to the date of this auditor's report, 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 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 Company’s ability 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 Company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of the 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
36
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’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 Company’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 Company 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.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 13 to 14 of the directors’ report for the year ended 31 December
2021. The directors of the Kula Gold Limited 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 in accordance with Australian Auditing Standards.
Opinion
In our opinion, the Remuneration Report of Kula Gold Limited for the year ended 31 December 2021 complies with section
300A of the Corporations Act 2001.
Elderton Audit Pty Ltd
Nicholas Hollens
Managing Director
Perth
31 March 2022
37
Additional ASX information
The following additional information required by the Australian Securities Exchange Limited and not shown elsewhere
in the report. The information is current as at 21 March 2021.
Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
Holding
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
UPDATE to CURRENT
Unquoted options
Ordinary shares
Number of
Holders
52
44
54
369
252
771
Number of
Shares
11,918
118,744
445,954
15,973,968
198,625,048
215,175,632
3,700,000 unlisted options that convert into fully paid ordinary securities were issued during the year.
Twenty largest holders of quoted equity securities
No. Shareholder
AMBER CLOUD PTY LTD
BOWMAN GATE PTY LTD
MERCHANT HOLDINGS PTY LTD
RIVERVIEW CORPORATION PTY LTD
JOHN & EMMA HANNAFORD SUPERANNUATION PTY LTD
DURBECK PTY LTD
MR RICHARD ALEXANDER CALDWELL
MR ALAN CONIGRAVE
CITICORP NOMINEES PTY LIMITED
MR ADAM ANDERSON
KALARRA HOLDINGS PTY LTD
1
2
3
4
5
6
7
8
9
10
10 GURRAVEMBI INVESTMENTS PTY LTD
11
12 MRS DANIELLE SUSAN BORGAS
12
13
14
14
15 MR JAY HUGHES & MRS LINDA HUGHES
16 MR DAVID JOHN MASSEY & MRS KELLY ANN MASSEY
17 GRAHAM BROWN PTY LTD
18
18 MR JASON FRANK MADALENA
818 CORPORATE PTY LTD
19
VASSI SUPER FUND PTY LTD
20
SYMINGTON PTY LTD
PETERLYN PTY LTD
HENGGELER SUPER PTY LTD
LAKE PACIFIC PTY LTD
RALLOU PTY LTD
Ordinary shares
Number held
Percentage of
quoted shares
35,904,000
16,822,982
7,201,425
5,500,000
4,965,000
4,200,000
3,500,000
3,437,811
3,250,000
3,000,000
3,000,000
2,650,000
2,500,000
2,500,000
2,400,000
2,000,000
2,000,000
1,600,000
1,577,844
1,507,500
1,500,000
1,500,000
1,459,970
1,424,995
115,401,527
16.69
7.82
3.35
2.56
2.31
1.95
1.63
1.60
1.51
1.39
1.39
1.23
1.16
1.16
1.12
0.93
0.93
0.74
0.73
0.70
0.70
0.70
0.68
0.66
53.64
38
Substantial holders
Substantial holders in the Company are set out below:
Name of substantial shareholder
Bowman Gate Pty Ltd
Merchant Holdings Pty Ltd and Ascot Park Pty Ltd
Riverview Corporation Pty Ltd, John and Emma Hannaford Superannuation
Pty Ltd and JAEK Holdings Pty Ltd
Number of
shares held
36,100,000
18,072,982
Percentage of
issued shares
16.78
8.40
14,476,945
68,649,927
6.73
31.91
Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a) Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a
poll each share shall have one vote.
(b) Options
No voting rights.
Interest in Mining Tenements (as at date of this report)
Country/Location
Tenement No
Interest Granted
Area Sqkm
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Date
27-Jan-22
21-Apr-20
10-Mar-21
N/A
26-Jul-21
06-May-21
28-Apr-21
11-May-21
26-May-21
03-Sep-20
08-Oct-21
08-Oct-21
08-Oct-21
08-Oct-21
08-Oct-21
08-Oct-21
26-Mar-21
N/A
N/A
N/A
23-Feb-21
38
150
47
115
240
3
3
55
17
117
160
65
160
143
6
50
106
170
206
206
45
Australia, WA Goldfields, Boorabbin
Australia, WA Goldfields, Kurnalpi
Australia, WA Goldfields, Kurnalpi
Australia, WA Goldfields, Kurnalpi
Australia, WA South West, Brunswick
Australia, WA South West, Brunswick
Australia, WA South West, Brunswick
Australia, WA Goldfields, Burracoppin
Australia, WA South West, Brunswick
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA Goldfields, Southern Cross
Australia, WA South West, Brunswick
E15/1819
E28/2942
E28/3029
E28/3137
E70/5599
E70/5645
E70/5660
E70/5693
E70/5703
E77/2621
E77/2709
E77/2753
E77/2756
E77/2757
E77/2762
E77/2766
E77/2768
E77/2806
E77/2807
E77/2808
E70/5513
39