LATIN RESOURCES LIMITED
ACN: 131 405 144
Unit 3, 32 Harrogate Street, West
Leederville, Western Australia 6008
P 08 6117 4798
E info@latinresources.com.au
31 March 2021
Lodgement of Audited Annual Report
Latin Resources Limited (“Latin” or “the Company”) is very pleased to advise of very positive results for
the year ended 31 December 2020 highlighted as follows:
• The consolidated profit after tax of the Group for the year ended 31 December 2020 was $3.5
million (2019: loss of $5.5 million).
• The net assets of the Group have increased to $11 million (2019: net assets deficiency of
$736,824).
• The Group has a strong cash position of $4.5 million at 31 December 2020 (2019: $733,282)
which subsequently has been further bolstered from the proceed of the exercise of LRSOC
options by option holders to date.
The Company is now debt free and in a very healthy financial position and looks forward to progressing
its projects in 2021 to the next level of development.
For further information please contact:
Chris Gale
Executive Director
Latin Resources Limited
+61 8 6117 4798
Sarah Smith
Company Secretary
Latin Resources Limited
+61 8 6117 4798
info@latinresources.com.au
www.latinresources.com.au
info@latinresources.com.au
www.latinresources.com.au
Latin Resources Limited
ABN: 81 131 405 144
Audited Financial Report
31 December 2020
CORPORATE DIRECTORY
DIRECTORS
SHARE REGISTRY
Mr David Vilensky
(Non-Executive Chairman)
Mr Christopher Gale
(Executive Director)
Mr Brent Jones
(Non-Executive Director)
Mr Pablo Tarantini
(Non-Executive Director)
COMPANY SECRETARY
Ms Sarah Smith
REGISTERED OFFICE
Unit 3, 32 Harrogate Street, West Leederville
Western Australia
Telephone
+61 8 6117 4798
E-mail
info@latinresources.com.au
PERU OFFICE
Calle Cura Bejar 190.
Oficina 303,
San Isidro / Lima - Perú
Teléfono
+51 1 421 2009
ARGENTINA OFFICE
Maipú 1210 Piso 8 (C1006ACT) CABA,
Buenos Aires, Argentina
Teléfono
+54 11 4872 8142
Computershare Investor Services Pty Limited
Level 11
172 St Georges Terrace
Perth, 6000
Western Australia
SOLICITORS
Steinepreis Paganin
Level 4
The Read Buildings
16 Milligan Street
Perth 6000
Western Australia
STOCK EXCHANGE
Australian Securities Exchange Limited (LRS)
BANKERS
ANZ
6/646 Hay Street
Subiaco 6008
Western Australia
NAB
Central Business
Banking Centre
Perth 6000
Western Australia
AUDITORS
Hall Chadwick Audit (WA) Pty Ltd
283 Rokeby Road
SUBIACO WA 6008
Latin Resources Limited (ABN 81 131 405 144)
2
CONTENTS
1
2
3
4
5
6
7
8
9
10
11
12
Review of Operations
Directors’ Report
Consolidated Statement of profit & 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
Auditors’ independence declaration
Independent auditors’ report
Additional information required by the ASX
Tenement schedule
Page
4
16
30
31
32
33
34
61
62
63
68
70
Latin Resources Limited (ABN 81 131 405 144)
3
REVIEW OF OPERATIONS
Latin Resources Limited is an Australian-based mineral exploration company with several projects in Latin America and
Australia. Australian projects include the Yarara gold project in the NSW Lachlan Fold belt, Noombenberry Halloysite
Project near Merredin, WA, and the Big Grey Project in the Paterson region, WA. The company is also actively progressing
its Copper Porphyry MT03 project in the Ilo region, Peru, with joint venture partner First Quantum Minerals Ltd.
During the year, the Company signed a joint venture agreement with the Argentinian company Integra Capital to fund the
next phase of exploration on its lithium pegmatite projects in Catamarca, Argentina.
OPERATIONS
Noombenberry Halloysite Project – Australia
The Company’s 100%-owned Noombenberry Project is east-southeast of Merredin, Western Australia.
Figure 1: Noombenberry Project Tenure and Location map
In January 2020, the Company announced positive results from a first pass sampling program conducted at the
Noombenberry Project. It submitted four samples collected from the surface to First Test Minerals, a long-established UK-
based kaolin and halloysite specialist. Scanning Electron Microscopy was carried out to identify halloysite occurrence in
samples. Latin took 13 samples from the Noombenberry project site which exhibits outcropping across an area of
approximately 50km².
Latin Resources Limited (ABN 81 131 405 144)
4
REVIEW OF OPERATIONS
Figure 2: 13 Samples taken from 4 locations sent to First Test Minerals
The results1 presented by the independent experts confirmed the prospectivity of the project area and the best results
(Location 4) were taken from 3m below ground level. Samples from Location 4 delivered high-grade kaolin results from the
45 to 180 micron category, up to 15% halloysite by weight and up to 38.9% kaolinite by weight, and over 68% kaolinite at
Location 3 and 44% kaolinite at Location 1. The encouraging grades gave confidence to further explore the project via a
deeper and expanded drill program with assistance from First Test Minerals.
Latin’s technical team conducted a site reconnaissance and prospecting exercise over the Noombenberry Project in early
September 2020 to advance site access discussions with key landholders and finalise a site access track for the drilling
campaign. Latin lodged drilling permits with DMIRS.
Phase 1 drilling was intended to indicate continuity of the identified high-value Halloysite mineralisation, as well as allow
sample collection throughout the mineralised thickness for deposit analysis and indication of tenor. Additional
reconnaissance prospecting on site led the Company to secure additional tenure in the area through the submission of a
new exploration licence.
Latin advised in January 2021 it had completed first pass and infill air-core drilling at Noombenberry.
The Company completed 197 drill holes for a total of 4,430m of vertical shallow air-core drilling2 over an area of
approximately 4.5km by 4.0km (18km2), to test the extent of a known Kaolinite-Halloysite occurrence where previous
sampling returned results of 38.9% Kaolinite, 15% Halloysite and 31.8% K-feldspar from the 45-180 micron fraction.
The initial phase of drilling on a regular 400m x 400m grid pattern was completed prior to the Christmas break, with a
second phase of off-set infill drilling to a nominal 200m x 200m pattern focused on thicker zones of logged kaolinitic clays
completed in the first weeks of January 2021 (Figure 3).
Logging of air-core drill cuttings confirmed significant intersections of bright white kaolinite across the area tested, with a
maximum logged down hole intersection of 50m (Figure 4 - NBAC058). This sequence of well-developed kaolinitic clay
(saprolite) beneath a thin layer of soil cover is consistent across the area tested, as demonstrated in a simplified geological
cross section 6,494,000mN which cuts through the center of area of drilling (Figure 5).
Approximately 750 composite samples were collected from the logged kaolinite saprolite zone, and submitted for detailed
test work including: X-Ray Fluorescence (XRF), X-Ray Diffraction (XRD), brightness testing, and Scanning Electron
Microscopy (SEM). While not all results have been returned from the laboratory, the results received to date have
confirmed that the Noombenberry project contains ultra-bright white Kaolinite (>80 ISO-B Brightness), and high grade
halloysite with the highest individual result returned to date of 37% halloysite3.
A list of selected significant results received to date are included in Table 1 below:
1 Refer to ASX announcement dated 20 November 2019 and 22 January 2020, for sampling details and results
2 Refer to ASX announcement dated 19 January 2021 for drill collar details
3 Refer to ASX Announcement dated 24 February 2021
Latin Resources Limited (ABN 81 131 405 144)
5
REVIEW OF OPERATIONS
Figure 3: Noombenberry Project Air-Core Drill Collar Location Plan
Latin Resources Limited (ABN 81 131 405 144)
6
REVIEW OF OPERATIONS
Figure 4 – Air-core drill cuttings from Drill holes4 NBAC058 (0-63m) left, and NBAC044 (0-33m) right
Figure 5 – Air-core drill section 6,494,000mN
4 Refer to ASX announcement dated 19 January 2021 for drill collar details
Latin Resources Limited (ABN 81 131 405 144)
7
REVIEW OF OPERATIONS
Hole ID
From
(m)
NBAC011
including:
NBAC012
including:
NBAC014
NBAC015
including:
NBAC017
including:
NBAC021
including:
NBAC022
including:
and
NBAC031
NBAC034
including:
NBAC055
Including:
NBAC058
including:
9
9
8
12
19
13
32
2
2
10
18
9
9
24
2
5
9
3
8
8
26
To
(m)
27
12
24
24
27
45
45
20
10
24
24
26
16
26
7
21
13
20
11
55
43
Interval
(m)
18
3
16
12
8
32
13
18
8
14
6
17
7
2
5
16
4
17
3
47
17
-45um
(%)
41.1
42.6
34.0
36.6
34.4
43.4
32.4
41.7
43.6
46.3
41.5
73.4
59.4
68.4
35.6
34.4
32.9
34.6
49.8
33.0
41.6
Fe2O3
(%)
0.6
0.5
0.9
1.0
1.1
0.6
0.6
0.6
0.7
0.6
0.7
0.8
1.4
0.6
1.1
0.9
0.7
1.0
0.2
0.8
0.6
Al203
(%)
34.9
37.6
33.0
32.9
32.0
35.5
32.8
34.0
34.9
35.7
33.3
37.5
36.6
37.0
35.0
32.4
34.4
33.4
36.4
33.4
33.7
TiO2
(%)
0.5
0.7
0.5
0.4
0.3
0.3
0.3
0.4
0.7
0.4
0.4
1.4
1.5
1.3
1.3
0.4
0.3
0.4
0.4
0.6
0.5
SiO2
(%)
49.6
47.4
51.3
51.1
52.3
49.3
51.6
51.2
50.5
49.2
51.2
46.2
46.7
46.4
48.2
52.2
50.4
51.2
48.6
51.8
51.4
Kaolinite
(%)
80.1
77.0
66.2
61.8
53.7
75.6
46.4
68.0
68.2
80.7
67.0
79.2
66.6
76.3
80
65
66
65
65
79
73
Halloysite
(%)
4.3
19.2
12.2
14.8
18.6
11.8
28.9
13.5
20.1
4.0
7.2
15.0
27.3
14.6
10
7
14
12
23
7
12
Brightness
(%)
80
79
74
75
64
81
79
79
81
82
80
77
72
80
73
77
81
75
86
77
80
Table 1: Selected Significant test work results from the Noombenberry Halloysite- Kaolin Project WA5.
The Company has engaged RSC Mining and Mineral Exploration as geological consultant to undertake the maiden resource
estimate for the Noombenberry Project. Work on the estimation process is well underway with the construction of
geological wireframes that will form the basis of the resources model. All results are anticipated to be returned from the
laboratory in early April 2021.
Latin has signed land access agreements with key landholders on the Noombenberry Project prior to the drill program,
enabling the Company to progress the project through the feasibility study levels.
Prices of both kaolin and halloysite have been rising with commercial grade kaolin selling for up to A$600 per tonne and
high-grade halloysite selling for up to A$4000 per tonne6.
Yarara Gold Project, NSW
In June 2020, Latin announced it had signed a binding farm-in terms sheet with Mining and Energy Group Pty Ltd to earn
up to a 75% interest in a gold project, Yarara, within the highly prospective Lachlan Fold gold belt of NSW (Figure 6).
Lachlan Fold Belt is a well-established mineral province hosting several world class mining operations such as Cadia, North
Parkes, Tomingley, Cowal and Peak Hill gold mines and is experiencing significant renewed interest following several
exploration successes.
5 Refer to ASX Announcements dated 24 February 2021, 10 March 2021, 17 March 2021 for full details and JORC tables
6 Refer Andromeda Metals Ltd (ASX: ADN) Investor Presentation dated 11 September 2020
Latin Resources Limited (ABN 81 131 405 144)
8
REVIEW OF OPERATIONS
Mine
Max
working
DEPTH
Production Dates
Average
Grade
Output (Oz Au)
Rangatira
45m
1877,1905,1935
60 g/t
781
Just in Time
24m
1876,1905,1935
30 g/t
Perseverance
66m
1875-81, 1905-10
45 g/t
22,515
2,540
Four Mile
Creek&
Mountaineer
TOTAL
1935-37
50m
1870’s 1902-06
1935
45 g/t
Unknown
16-37 g/t
26,036
Table 2: Data taken from the Wagga Wagga 1:250,000 Metallogenic Map – Mine data and Metallogenic Study (Mine No.
195-200), Geological Survey of New South Wales 1982 as published in the JC Downes Report, October 2003. The information
presented in the above table is open to the public via the Geological Survey of New South Wales, Mine data and
Metallogenic Study (Mine No. 195-200) and this information is to be used to assist the company in its exploration efforts
over the Yarara Gold Project. https://search.geoscience.nsw.gov.au/report/R00055625
The three areas of interest to the Company within the Yarara Project are Yarara Reefs (North), Carboona (Centre) and
Ournie (South) (Figure 7).
Figure 6– Yarara Project (EL8958) Exploration License regional tenement location – Lachlan Fold belt NSW
Latin Resources Limited (ABN 81 131 405 144)
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REVIEW OF OPERATIONS
The project area contains numerous old gold workings with at least four main historic high-grade gold mines that targeted
high-grade quartz vein systems, including the Billabong Mine, Rangatira Mine, Perseverance Mine and Just-in-Time Mine.
An initial structural interpretation based on the available regional datasets highlighted well over 30 target areas, including
numerous priority areas, which Latin believes are highly prospective for a range of gold mineralisation styles.
During the December 2020 quarter, Latin continued its efforts to secure land access in priority target areas of the Yarara
Project (EL8958), allowing the Company to plan on-ground reconnaissance mapping and prospecting for early January
2021.
In parallel with landholder negotiations, Latin prepared access permits to allow reconnaissance drilling in the state forest
area covering the highly prospective Perseverance and Just-in-Time mines for submission to the relevant state authorities.
Latin completed compilation and detailed review of the available regional and project scale geological, geophysical and
historic geochemical data covering the project.
The Company is expanding its NSW-based exploration team, including the recruitment of a Senior Geologist to be based in
Orange, who will drive on-ground exploration efforts across the Yarara and Manildra Projects.
Figure 7 – Yarara Gold Project showing regional geology and structures, with priority targets and historic gold occurrences
and mines
Latin Resources Limited (ABN 81 131 405 144)
10
REVIEW OF OPERATIONS
Manildra Gold project, NSW
Latin secured a major new project in November 2020, within the east Lachlan Fold Belt of NSW, through the successful
submission of a new tenement application, ELA6145. The project covers some 280km2 of highly prospective Silurian age
volcanic and sedimentary rocks in the eastern Lachlan Fold Belt, straddling the regional scale Manildra Fault structure for
some 30km along strike, which hosts a number of gold and copper occurrences, including the historic Lady Burdett mining
centre (Figure 8 & Figure 9).
Figure 8: ELA6145 Project Location and regional setting, highlighting major Gold Mines and Deposits in the district7.
Following the granting of the new tenement and securing land access and other statutory approvals, Latin proposes to
complete regional and project scale first pass targeting exploration, which may include geophysical surveys and low-impact
geochemical sampling, followed by RC drilling of any defined targets.
7 Cadia Mine reserves taken from Newcrest mining Ltd Market release dated 13 February 2020, “Annual Mineral Resources and Ore Reserves Statement”.
McPhillamys resources taken from https://regisresources.com.au/McPhillamys-Gold-Project/mcphillamys-gold-project.html; Copper Hill Porphyry
exploration results taken form Godolphin resources Ltd ASX Announcement dated 20 October 2020; Junction Reef Historic reserves taken from Golden
Cross Resources Ltd September Quarterly Report dated 29 October 2020, Lady Burdett Gold fields results taken from DIS reports RE0008558, RE0009084,
RE0012105 & R11070340 – Refer to LRS ASX Announcement dated 3 December 2020.
Latin Resources Limited (ABN 81 131 405 144)
11
REVIEW OF OPERATIONS
Burdett Project, NSW
Latin secured another major new project within the east Lachlan Fold Belt of NSW, through the acquisition of tenement
application ELA6024, or Burdett Project, covering 252km2 of highly prospective Silurian age volcanic and sedimentary rocks
(Figure 8 & Figure 9).
The project area straddles the regional scale Canowindra Shear Zone, expanding Latin’s tenement holding to more than
530km2 in this highly prospective gold region; covering the north-west extension to the historic Lady Burdett Gold Mining
centre, where previous drilling has returned significant gold intersections, including: 26m @ 1.5g/t Au and 3m @ 7.82 g/t
Au8, close to surface.
Figure 9: ELA6145 & ELA6024 Project Locations and major structural trends and prospective corridors, highlighting major
Gold Mines and Deposits in the district9.
8 Refer to LRS ASX Announcement dated 3 December 2020
9 Cadia Mine reserves taken from Newcrest mining Ltd Market release dated 13 February 2020, “Annual Mineral Resources and Ore Reserves Statement”.
McPhillamys resources taken from https://regisresources.com.au/McPhillamys-Gold-Project/mcphillamys-gold-project.html; Copper Hill Porphyry
exploration results taken form Godolphin resources Ltd ASX Announcement dated 20 October 2020; Junction Reef Historic reserves taken from Golden
Cross Resources Ltd September Quarterly Report dated 29 October 2020, Lady Burdett Gold fields results taken from DIS reports RE0008558, RE0009084,
RE0012105 & R11070340 – Refer to LRS ASX Announcement dated 3 December 2020.
Latin Resources Limited (ABN 81 131 405 144)
12
REVIEW OF OPERATIONS
Historic reporting of these gold intersections suggests the orientation of the mineralised lenses may be east-west, within
the north-south trending Canowindra shear structure, with the historical drilling orientated sub-parallel to the lenses. Latin
will undertake detailed prospect scale mapping and rock-chip sampling of the area to better understand the controls to
mineralisation before undertaking further drill testing.
Argentinian Lithium projects
In June 2020, Latin announced it had signed a joint venture agreement on the Company’s Catamarca lithium pegmatite
projects with Argentinian investment group Integra Capital S.A. Integra has a diversified portfolio in more than 10 countries
and is one of Argentina’s largest lithium explorers, holding more than 400,000 hectares of lithium brines projects in Jujuy
and Catamarca provinces.
On 1 October 2020, Latin announced Integra had completed due diligence and would enter into a transformational joint
venture agreement on the projects. The agreement aligns with the strategic approach by Latin in identifying, acquiring and
advancing large-scale land positions of highly prospective mineral projects to attract joint venture partners. The signing of
the final Joint Venture Agreement was completed in October, with Mr Jose Luis Manzano of Integra Capital taking a 10%
placement in Latin Resources to become Latin’s largest shareholder.
Integra will spend up to US$1 million (A$1.4 million) under a Joint Venture that will underpin an aggressive exploration
program on the Catamarca concessions.
With the primary aim of delivering a maiden JORC resource, the Joint Venture focus will then turn to project development,
including feasibility, engineering and metallurgy studies to produce a lithium spodumene concentrate. Latin has already
developed a high-level scoping study with consulting engineers Primero Group to develop the Argentinian lithium assets.
Under the JV, Latin will be free-carried through initial exploration with financing for the construction of the processing
plant to be in line with percentage ownership between Integra and Latin of the project partnership at the time of the Final
Investment Decision.
Pachamanca/MT-03 Copper Project – Peru
In February 2020, Latin announced its subsidiary Peruvian Latin Resources SAC had signed an extension to the Binding
Terms executed with Minera Antares Peru SAC, a subsidiary of Canadian copper producer First Quantum Minerals Ltd.
The current term sheet was extended to 31 December 2020. On-ground activities on Latin’s Joint Venture with First
Quantum over the MT03 Copper Project were delayed because of Covid-19 lockdown restrictions and a state of emergency
in Peru.
A detailed ground magnetic survey is planned over the MT-03 anomaly to assist in the targeting of the planned maiden
drill testing of the initial anomaly. While Covid-19 restrictions in Peru remained in force, Latin continues to work with local
contract groups.
Guadalupito Project – Peru
Subsequent to 30 June 2020, Latin's wholly owned subsidiary Peruvian Latin Resources S.A.C ("PLR") lawfully terminated
the Contract of Transference of Mining Rights ("Contract") relating to the Guadalupito Project. As a result of the
termination of the Contract ownership of the Mining Rights have reverted back to the Vendors and PLR was released from
any obligation to pay to the vendors any unpaid portion of the purchase price for the Mining Rights. In other words, all
liabilities of PLR relating to the Mining Rights have been extinguished. This impact of the termination is disclosed as part
of the discontinued operation in the Consolidated Statement of Profit and Loss and Other Comprehensive Income.
Latin Resources Limited (ABN 81 131 405 144)
13
REVIEW OF OPERATIONS
CORPORATE
Capital raising
Share Purchase Plan
In June, Latin completed a Share Purchase Plan, offering eligible shareholders on the Record Date the lowest price per
Share permitted by the ASX Listing Rules, being $0.005 (i.e. 80% of the 5-day VWAP of traded Shares immediately prior to
the 25 June 2020 announcement) together with one free attaching Listed Option for every one Share issued under the SPP.
The SPP Offer allowed Eligible Shareholders to subscribe for up to $15,000 worth of SPP Shares together with the
equivalent number of free attaching SPP Options. A prospectus in relation to the SPP Offer was lodged by Latin with ASIC
and ASX on 30 June 2020.
The Offer closed on 14 July 2020 and was heavily oversubscribed with the Company receiving applications for a total of
230,160,000 shares raising a total of $1,150,800. The Company completed a scale-back of applications equally on a pro-
rata basis. The 125,458,494 SPP Shares were issued on 17 July 2020.
Placement
During the June 2020 quarter, the Company completed a share placement to professional and sophisticated investors to
raise capital for exploration, project development, working and other capital requirements.
The Placement raised $215,200 (before costs) through placing 53,800,000 shares in LRS at an issue price of $0.004 per
Share, with 1 free attaching listed options for every 1 Share subscribed for and issued, with an expiry date 31 December
2022 and $0.012 exercise price. The Listed Options will be issued subject to shareholder approval. The Placement was
made without a prospectus or other disclosure document using the Company’s existing placement capacity under ASX
Listing Rule 7.1.
In September 2020, Latin completed an oversubscribed placement of 59,272,728 shares at an issue price of $0.011 to
sophisticated and professional investors to raise $652,000 (before costs). The placement was oversubscribed by $152,000
and completed at a 4% premium to the Company’s 10-day VWAP.
Participants received a 1 for 1 free-attaching LRSOC listed option (exercise price $0.012 – expiry 31 December 2022).
The Placement shares and options were issued using the shareholder approval obtained at the Annual General Meeting
on 31 July 2020.
Latin designated proceeds from the Placement to fund exploration work on Latin’s Yarara gold project in NSW, project
development, maintaining the Company’s South American mineral properties in good standing and for working capital.
In December 2020, the Company raised $5 million via the placement of 166,667,000 shares at an issue price of $0.03 per
share. The Placement Shares were issued to sophisticated and professional investors of Euroz Hartleys Ltd, which acted
as sole Lead Manager of Placement. Euroz Hartleys received a Lead Manager fee of 6% of total funds raised. Funds from
the Placement have been designated to accelerate the exploration and drilling program at Noombenberry Kaolin Halloysite
project and Lachlan Fold Gold projects.
The Company also issued 4,250,000 shares to Stocks Digital in lieu of cash fees for digital advertising and marketing services
provided in the December 2020 quarter. In addition, a total of 6,504,962 LRSOC Options (exercisable at $0.012) were
exercised and converted into fully paid ordinary shares.
Entitlement Offer
Latin Resources received applications for 17,029,511 Shares at an issue price of $0.006 each with 8,514,755 free attaching
Options exercisable at $0.012 at any time up to 31 December 2022, in accordance with the non-renounceable entitlement
offer pursuant to the Prospectus lodged with ASX on 12 December 2019.
Total consideration received from the applications was $102,177. The Shares subscribed for under the Offer, and free
attaching Options were issued on 21 February 2020. A total of 2,084,650 Shares and 1,042,324 free attaching Options were
issued to Directors for their participation in the Entitlement Offer.
Latin Resources Limited (ABN 81 131 405 144)
14
REVIEW OF OPERATIONS
Director Share purchase
Director Brent Jones exercised 999,201 LRSOC options, to acquire 999,201 fully paid ordinary shares for a consideration of
$11,990 demonstrating his commitment and belief in the company’s prospects. Subsequent to 31 December 2020,
Directors David Vilensky and Chris Gale have between them exercised a combined total of 16,826,848 LRSOC Options to
acquire 16,826,848 fully paid ordinary shares for a total consideration of $201,922.
Board Appointment
In November 2020, Latin appointed Mr Pablo Tarantini as a Non-Executive Director.
Mr Tarantini’s appointment to the Board follows the recent signing of the transformative joint venture agreement on the
Company’s Catamarca lithium pegmatite projects with Argentinian investment group Integra Capital S.A. Integra have now
become a cornerstone investor of Latin, with a shareholding of 10% of the Company through their President Jose Luis
Manzano.
Latin appoints Head of Exploration
In August 2020, Latin appointed highly experienced geologist Mr Tony Greenaway BSc (Geol), as the Company’s head of
exploration. Mr Greenaway is a senior geologist with broad experience gained over 23 years and covering operations in
Australia (WA and Lachlan Fold), Africa, South America (Chile), Central America (Mexico) and Asia (Indonesia). It is
envisaged Latin’s recent acquisition of the Lachlan Fold Belt located Yarara Gold Project would benefit immediately from
Mr Greenaway’s background across project initiation, planning and progress.
Convertible Security Funding Agreement
In February 2021, Latin announced it had concluded its Convertible Security Funding Agreement with Lind Partners New
York by repaying the debt in full. Following this early termination of the convertible funding agreement with Lind, the
Company remains in a positive financial position with 5 quarters of funding available and no debt. The Company’s cash
balance of $4.5 million as at 31 December 2020 is also being strengthened by a steady flow of funds from option holders
exercising in-the-money LRSOC Options ($0.012 LRSOC, Expiry 31 Dec 2022) of which approximately $6,000,000 remains
outstanding.
Competent Person Statement:
The information in this announcement that relates to Mineral Resource estimates, Exploration Results and general project
comments is based on information compiled by Antony Greenaway, a Competent Person who is a Member of The Australian
Institute of Geoscientists. Mr. Greenaway is an employee of Latin Resources. Mr. Greenaway has sufficient experience which
is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking
to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr. Greenaway consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
No new information that is considered material is included in this document. All information relating to exploration results
has been previously released to the market and is appropriately referenced in this document. JORC tables are not considered
necessary to accompany this document.
Latin Resources Limited (ABN 81 131 405 144)
15
DIRECTORS’ REPORT
The directors present their report together with the financial statements of the Group consisting of Latin Resources Limited
(Latin or the Company) and its subsidiaries (together the Group) for the year ended 31 December 2020.
Directors
The names and details of the Company’s directors in office during the financial period and until the date of this report are
set out below. The directors were in office for this entire period unless otherwise stated.
DAVID VILENSKY (Independent Non-Executive Chairman)
David Vilensky is a practising corporate lawyer and an experienced listed company director. He is the Managing Director
of Perth law firm Bowen Buchbinder Vilensky and has more than 35 years’ experience in the areas of corporate and
business law and in commercial and corporate management. Mr Vilensky practises in the areas of corporate and
commercial law, corporate advisory, mergers and acquisitions, mining and resources and complex dispute resolution.
Mr Vilensky acts for a number of listed and public companies and advises on directors’ duties, due diligence, capital raisings,
compliance with ASX Listing rules, corporate governance and corporate transactions generally.
Mr Vilensky is also a non-executive director of ASX listed telecommunications company, Vonex Ltd (ASX:VN8) and Oar
Resources Limited (ASX: OAR).
Mr Vilensky holds a BA LLB degree from the University of Cape Town and is a Member of the Law Society of Western
Australia".
CHRISTOPHER GALE (Executive Director)
Christopher (Chris) Gale is the Executive Director of Latin Resources. Mr Gale has extensive experience in senior
management roles in both the public and private sectors, especially in commercial and financial roles. He has also held
various board and executive roles at a number of mining and technology companies during his career.
Former Chairman of the Council on Australian Latin American Relations (COALAR) established by the Australian
Government Department of Foreign Affairs and Trade (DFAT) from 2012 to 2018.
He is also a founding director of Allegra Capital, a boutique corporate advisory firm based in Perth and is a member of the
Australian Institute of Company Directors (AICD).
Mr Gale is also a non-executive director of Westminster Resources Limited (TSXV: WMR) (appointed July 2018) and
Executive Chairman of Oar Resources Limited (ASX: OAR).
BRENT JONES (Non-Executive Director)
Mr. Jones is an experienced financial services professional currently acting as director of Sequoia Financial Group Ltd
(ASX:SEQ) Professional Services division. Prior to the sale of InterPrac Ltd to Sequoia in 2017, Mr. Jones was the Managing
Director of InterPrac Limited from 2007, an unlisted public company specializing in AFSL, credit and legal services to the
accounting industry.
Whilst with InterPrac and currently at Sequoia Financial Group, Mr Jones has supported and participated in many public
and private capital markets transactions.
Mr. Jones has a Bachelor of Computing in information technology, is a member of the National Tax and Accountants
Association and is a Graduate of the Australian Institute of Company Directors (AICD).
Other directorships of Australian listed companies held by Mr Jones in the last three years are: Nil
PABLO TARANTINI (Non-Executive Director)
Mr. Tarantini is experienced professional in the mining industry. He has served as Executive Director of the Argentinian
Bureau of Investment and International Trade, coordinating investment initiatives, and contributing with his vast
experience in several industries and countries. In that role, Mr Tarantini worked together with mining companies settled
in the country and supported the promotion of the mining activity in Argentina, along with the Argentinian Secretary of
Mining.
He has served as President and Executive Director of SAPISA and Minera Don Nicolás, an Argentinian private fund and one
of its investments in the mining sector, respectively. Minera Don Nicolas is the first mining project based on Argentinian
capital. He has also served as M&A Director at General Electric and Advent International Corporation for Latin America,
and as Manager at A.T. Kearney. In all these roles, he carried out businesses and projects at the regional level.
Latin Resources Limited (ABN 81 131 405 144)
16
DIRECTORS’ REPORT
Mr. Tarantini is a Public Accountant and holds a Bachelor’s Degree in Business Administration from Universidad Católica
Argentina (UCA) and a Master in Business Administration from Harvard Business School.
Other directorships of Australian listed companies held by Mr Tarantini in the last three years are: Nil
Directors’ shares and share rights
As at the date of this report, the interests of the Directors in the shares and options of Latin are as follows:
Director
David Vilensky
Brent Jones
Chris Gale
Pablo Tarantini
Ordinary shares
Number
14,848,259
23,979,817
15,844,182
-
Share rights
Number
3,481,791
2,686,567
15,850,746
-
Loan funded
shares
1,000,000
1,000,000
2,000,000
-
Share options
Number
-
20,833,250
40,000
-
Company secretary
SARAH SMITH
Ms Smith holds a Bachelor of Business and is a Chartered Accountant with significant experience in the administration of
ASX listed companies, as well as capital raisings and IPOs, due diligence reviews and ASIC compliance.
Principal activities
The principal activities during the year of entities within the consolidated entity were the exploration and evaluation of
mining projects in Australia, Peru, Argentina and Brazil.
Financial review
RESULTS
The consolidated profit after tax of the Group for the year ended 31 December 2020 was $3,551,246 (2019: loss of
$5,539,154).
The result comprises of gain from discontinued operation of $4.7 million (2019: loss of $1.2 million), reversal of prior year
impairment of $0.8 million (2019: nil), finance expenses of $0.4 million (2019: $0.6 million), employee benefits expense of
$0.7 million (2019: $0.7 million) and other income and expense items $0.9 million (2019: $1.9 million).
ASSETS
Total assets increased marginally by $0.6 million during the year to $13.3 million. The movement primarily comprised of
an increase in cash of $3.8 million and an increase in investment and other assets by about $1.3 million, which were offset
with the decrease in value of exploration expenditure of $4.2 million and trade and other receivables by about $0.26
million.
LIABILITIES
Total liabilities decreased by $11.1 million to $2.3 million during the year. The decrease was due to the decrease in interest
bearing loans and borrowings by about $1.6 million together with the decrease of $9.2 million in deferred consideration
for the Guadalupito Project due to the termination of the agreement to acquire the project, and a decrease in trade and
other payables of $0.3 million.
EQUITY
Total equity increased by $11.7 million during the year to $11 million. The increase reflects the current period profit of
$3.5 million for the year together with an increase in share capital of $8.25 million.
SHAREHOLDER RETURNS
The Company’s share price decreased during the period however the market capitalisation of the company increased due
to share and placement issues to fund the Company’s defined strategic direction in the area of lithium in line with its long-
term strategy of mineral exploration in South America.
Latin Resources Limited (ABN 81 131 405 144)
17
DIRECTORS’ REPORT
Shareholder returns for the last 5 years is as follows:
Profit/(Loss) attributable to the Group ($)
Basic earning/(loss) per share (Cents)
Dividends ($)
Closing share price ($)
Total shareholder return (%)
Dividends
December
2020
3,551,246
0.6
Nil
$0.033
560
December
2019
(5,539,154)
(3.7)
Nil
$0.005
(93)
December
2018
(5,553,476)
(0.2)
Nil
0.003
(73)
December
2017
(2,381,967)
(0.12)
Nil
0.011
(8)
December
2016
(7,844,976)
(0.63)
Nil
0.012
140
No amounts have been paid or declared by way of a dividend since the end of the previous financial period and up until
the date of this report. The Directors do not recommend the payment of any dividend for the financial year ended 31
December 2020.
Liquidity and capital resources
The Group’s principal source of liquidity as at 31 December 2020 is cash and cash equivalents of $4,533,257 (2019:
$733,282).
Funding for 2021 is expected from a combination of proceeds from the sale or joint venturing of interests in existing
projects, further capital raisings, and the conversion of options.
Shares, share rights and options
As at 31 December 2020 the Company had 1,190,910,311 fully paid Shares on issue, 4,000,000 loan funded unquoted
shares on issue, 649,648,381 Share Options on issue.
SHARES
A total of 847,544,516 fully paid ordinary shares were issued during the year. A breakdown of the shares issued is shown
at Note 19 of the financial statements.
SHARE RIGHTS
During the year no share rights were issued to directors or employees.
OPTIONS
During the year 511,903,342 options were issued as part of the entitlement issue, SPP, share placement and project
acquisition. 6,504,962 options were exercised during the period.
As at the date of this report there were 649,648,381 Share Options on issue.
Option holders do not have the right, by virtue of the option, to vote or participate in any share issue of the Company or
any related body corporate.
Significant changes in the state of affairs
There have been no significant changes in the state of affairs of the Group other than those listed above.
Latin Resources Limited (ABN 81 131 405 144)
18
DIRECTORS’ REPORT
Risk management
The Board is responsible for identifying business risks and implementing actions to manage those risks and corporate
systems to assure quality. The Board delegates these tasks to management who provide the Board with periodic reports
identifying areas of potential risks and the safeguards in place to efficiently manage material business risks. Strategic and
operational risks are reviewed at least annually as part of the forecasting and budgeting process.
The Executive Director and Chief Financial Officer have provided assurance in writing to the Board that they believe that
the Group’s material business risks are being managed effectively and that the Group’s financial reporting, risk
management and associated compliance and controls have been assessed and are operating effectively so far as they
relate to the financial report.
Significant events after balance date
On 01 February 2021, the Company announced that it has concluded the Convertible security funding agreement with Lind
Partners New York by paying the outstanding balance $ 900,000 on 7 January 2021 and issuing 20,000,000 unlisted options
exercisable at $0.03 on or before 01 December 2022 on 29 January 2021.
On 2 March 2021, Directors David Vilensky and Chris Gale have between them exercised a combined total of 16,826,848
LRSOC Options to acquire 16,826,848 fully paid ordinary shares for a total consideration of $201,922.
Impact of COVID-19
As previously disclosed, the Group has exploration projects in Latin America (Peru, Argentina and Brazil). The region has
been badly affected by COVID-19. The Group’s offices in Latin America are now closed and staff are working from home.
Despite this, the Group assessment has determined that there has been no significant impact on the performance or
financial position of the Group as at 31 December 2020, other than as disclosed in Note 31: Discontinued Operations.
Likely developments and expected results
In 2021 the Group intends to continue to progress its mineral projects in Argentina and Peru via JV arrangements or via
the sale of its interests in the projects while continuing to focus on further exploration for its Australian Project. The Group
will also continue to look for other opportunities that will create value for its shareholders.
Environmental regulation and performance
The Group carries out exploration and evaluation activities at its operations in Peru and Argentina which are subject to
environmental regulations. During the year there has been no significant breach of these regulations.
Indemnification and insurance of directors and officers
During the year insurance premiums were paid to insure the Directors and officers against certain liabilities arising out of
their conduct while acting as a director or an officer of the Company. Under the terms and conditions of the insurance
contract, the nature of the liabilities insured against and the premium paid cannot be disclosed.
Latin Resources Limited (ABN 81 131 405 144)
19
DIRECTORS’ REPORT
Directors’ meetings
The number of meetings of directors (including meetings of committees of directors) held for the year ended 31 December
2020 and the number of meetings attended by each director is as follows:
Director
David Vilensky
Chris Gale
Brent Jones
Pablo Tarantini
Board meetings held
Board meetings attended
8
8
8
1
8
8
8
1
Committee membership
During the year the Board did not set up separate Committees. The Board carried out the duties that would ordinarily be
carried out by the Nomination, Remuneration and Audit and Risk Management Committees.
Corporate governance statement
The Company’s Corporate Governance statement is located on the Company’s website at www.latinresources.com.au.
Diversity
Latin strives to be an equal opportunity employer and we will not discriminate against prospective employees based on
gender or any other non-skill related characteristic. We pride ourselves on the diversity of our staff and encourage suitably
qualified young people, women, people from cultural minorities and people with disabilities to apply for positions.
Whilst efforts will be made to identify suitably qualified female candidates and candidates from a diversity of backgrounds
when seeking to fulfil positions, the Company does not believe it is meaningful, nor in the best interests of shareholders
to set formal targets for the composition of employees based on gender or any other non-skill related characteristic nor
detailed policies in this regard.
The Board has established a policy regarding diversity and details of the policy are available on the Company’s website.
Gender composition of the Group’s workforce for the 2020 year is included in the Company’s Corporate Governance
Statement
Auditors’ independence declaration
The auditors’ independence declaration is set out on page 62 and forms part of the Directors’ report for the year ended
31 December 2020.
Non-audit services
Non-audit services provided by the Group’s auditor Hall Chadwick during the year ended 31 December 2020 is shown at
Note 28 of the financial statements.
The directors are satisfied that the provision of non-audit services, during the year by the auditor is compatible with the
general standard of independence for auditors imposed by the Corporation Act 2001. The nature and scope of each type
of non-audit service provided means that auditor independence was not compromised.
Latin Resources Limited (ABN 81 131 405 144)
20
DIRECTORS’ REPORT
Remuneration report (Audited)
This remuneration report for the year ended 31 December 2020 outlines the remuneration arrangements of the Group in
accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This information has been
audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who are defined
as those persons having authority and responsibility for planning, directing and controlling the major activities of the
Group, directly and indirectly, including any director (whether executive or otherwise) of the parent company.
For the purposes of this report, the term executive includes executive directors and other senior management of the
Group.
DIRECTOR AND SENIOR MANAGEMENT
Non-executive directors
David Vilensky
Brent Jones
Pablo Tarantini
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Executive director
Chris Gale
Other Executives
Sarah Smith
Yugi Gouw
Anthony Greenaway
Executive Director
Company Secretary
Chief Financial Officer
Exploration Manager
REMUNERATION GOVERNANCE
Remuneration Committee
The Board carries out the duties that would ordinarily be carried out by the Remuneration Committee under the
Remuneration Committee Charter including the following processes to set the level and composition of remuneration for
Directors and senior executives and ensuring that such remuneration is appropriate and not excessive.
The Board approves the remuneration arrangements of the Executive Director and other executives and all awards made
under incentive plans following recommendations from the Remuneration Committee.
The Board also sets the remuneration of Non-executive directors, subject to the fee pool approved by shareholders.
The Board approves, having regard to the recommendations of the Executive Director, the level of incentives to other
personnel and contractors.
The Board seeks external remuneration advice as and when required to ensure it is fully informed when making
remuneration decisions. Remuneration advisors are engaged by and report directly to the Board. No consultants were
used or paid by the Group during the year.
NON-EXECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS
The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The Constitution and the ASX listing rules specify that the aggregate remuneration of Non-executive directors shall be
determined from time to time by a general meeting of shareholders. The current limit is $350,000 which remains
unchanged from when the company first listed on the ASX.
Non-executive directors are remunerated by way of fees based on remuneration of executive directors of comparable
companies and scope and extent of the Company’s activities. Non-executive directors are also entitled to participate in the
Non-executive director Deferred Rights plan which was re-approved by shareholders on 31 July 2020. Directors do not
receive retirement benefits nor do they participate in any incentive programs.
No share rights were issued to directors during the year.
28,283,250 free attaching LRSOC Options were issued together with 28,283,250 fully paid ordinary shares to non-executive
directors in lieu of their outstanding directors’ fees from current and prior year.
Latin Resources Limited (ABN 81 131 405 144)
21
DIRECTORS’ REPORT
Non-executive director Deferred rights plan
The Non-Executive Director Deferred Rights Plan was re-approved by shareholders on 31 July 2020 for the purpose of
retaining Non-executive directors, controlling the cash cost of directors fees and aligning the interests of Non-executive
directors with shareholders and providing them with the opportunity to participate in the future growth of the Group.
Under the plan the Group may offer share rights to Non–executive directors of the Company. Share rights issued under
the Deferred rights plan comprise of retention rights being rights that vest and may be exercised into Restricted Shares,
based on completion of a period of service.
The Board in their absolute discretion determine the number of share rights to be offered and the criteria that may apply.
Offers made under the Deferred rights plan must set out the number of share rights, the vesting conditions and the
measurement period.
The retention rights are issued for no consideration, however, the vesting of the benefits are conditional on achieving
certain measurable performance measures. The performance measure for retention rights is the completion of service for
the year. Vesting of the share rights is measured over a three-year interval after the commencement of the respective
measurement period. At the end of the measurement period and subject to the performance measures, each share right
will convert into one ordinary share in the Company. The Group is aware that the vesting of share rights is treated as
income to executives and attracts tax in a similar manner to cash payments irrespective of the executive selling or retaining
the resulting shares.
The maximum percentage of base remuneration that a Non-executive director may receive in share rights is 100% which
is pre-determined based on the advice of the remuneration consultant.
Where a non-executive director or employee ceases employment prior to their incentives vesting due to resignation or
termination for cause, incentives will be forfeited. Where a non-executive director or employee ceases employment for
any other reason, they may at the Board’s discretion, retain a number of unvested share rights on a pro-rata basis to reflect
their period of service during the measurement period. These unvested share rights only vest subject to meeting the
relevant performance measures.
The Board will not seek any increase in the aggregate remuneration for the Non-executive director pool at the AGM.
EXECUTIVE REMUNERATION ARRANGEMENTS
The Group aims to reward executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Group that is competitive by market standards and aligns their interests with those of
shareholders.
Executive remuneration consists of fixed remuneration and variable remuneration comprising short term incentives and
long-term incentives.
Fixed remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to the position
and is competitive in the market.
Fixed remuneration is reviewed annually by the Board through a process that considers individual performance, Group
performance and market conditions.
Variable remuneration
The Company established an Incentive Rights Plan (the Plan) that was re-approved by shareholders on 31 July 2020 and
applies to full time and permanent part time employees and contractors.
The Plan provides the Company with a range of incentives to attract, retain and align the interest of shareholders and
employees and contractors.
Short term incentives
Short term incentives (STI) may include cash and shares and are awarded to executives based on the achievement of KPI’s.
Given the current stage of the Company’s evolution and the market conditions for mineral exploration and development
companies, any entitlement to STI is determined at the discretion of the Board (Remuneration Committee).
Latin Resources Limited (ABN 81 131 405 144)
22
DIRECTORS’ REPORT
Long term incentives
Long term incentives (LTI) are considered annually by the Remuneration Committee to align remuneration with the
creation of shareholder value over the long term.
LTI’s can include:
cash;
retention rights being rights that vest and may be exercised into Restricted Shares, based on completion of a period of
service and comprise no more than third of the LTI value; and
performance rights, being rights that vest and may be exercised into Restricted Shares, based on achievement of
specified performance objectives and comprise no more than two thirds of the LTI value.
The retention and performance rights are issued for no consideration, however, the vesting of the benefits are conditional
on achieving specific measurable performance measures that are aligned with the Group’s strategic objectives.
The following performance measures were used, in equal weighting:
Completion of service for the year; and
Shareholder returns (Total shareholder return of 15% per annum or greater).
Vesting of the LTI is measured over a three-year interval after the commencement of the respective measurement period.
At the end of the measurement period and subject to the performance measures, each share right will convert into one
ordinary share in the Company. The Group is aware that the vesting of share rights is treated as income to executives and
attracts tax in a similar manner to cash payments irrespective of the executive selling or retaining the resulting shares.
The maximum percentage of base remuneration that an executive may receive as a LTI is pre-determined based on the
advice of the remuneration consultant. The maximum percentage of base remuneration that the Executive Director can
receive is 60% and for other executives it is 45%.
Where a director or employee ceases employment prior to their incentives vesting due to resignation or termination for
cause, incentives will be forfeited. Where a director or employee ceases employment for any other reason, they may at
the Board’s discretion, retain a number of unvested share rights on a pro-rata basis to reflect their period of service during
the LTI grant performance period. These unvested share rights only vest subject to meeting the relevant LTI performance
measures.
Employment agreements and contracts
The Group has entered into contracts and agreements with executives the details of which are provided below.
Non-Executive Directors
The Chairman and Non-Executive Directors are elected to the Board by shareholders on rotation. The pool of directors’
remuneration, including cash payments for directors’ fees and share based incentive remuneration, is approved by
shareholders in Annual Meeting.
In accordance with the total directors’ fees approved by shareholders, the Board has agreed the following directors’ fees
to be paid:
Chairman
-
- Non-Executive directors
$64,800 per annum
$50,000 per annum
No committee fees are paid.
Executive Director
The Executive Director is currently employed under a consultancy agreement for a two-year term ending on 30 September
2021. Mr Gale is paid a fixed remuneration of A$270,000 per annum with an uplift in remuneration in the event of an
increase in the market capitalisation of the Company.
The Group may terminate the agreement with or without cause by giving one month and six months’ notice respectively.
The Executive Director may terminate the agreement with or without cause by giving 21 days and three months’ notice
respectively. If the agreement is terminated without cause or due to a change of control the Executive Director is entitled
to a payment equivalent of up to two year fees, the value of any annual fringe benefits and any vested entitlement under
a LTI plan.
The Group retains the right to terminate the agreement immediately by making a payment in lieu of notice for termination
by either party without cause.
Latin Resources Limited (ABN 81 131 405 144)
23
DIRECTORS’ REPORT
Exploration Manager
The Exploration Manager is employed under an employment agreement with no fixed term where either party may
terminate the agreement with or without cause by giving one month notice.
Company Secretary
The Company Secretary is employed under a consultancy agreement which is ongoing. Either party may terminate the
agreement by giving 60 days written notice. The monthly retainer fee for the Company Secretary is $3,000 per month
excluding GST with additional fees charged for shareholder meetings and corporate actions.
Chief Financial Officer (CFO)
The current CFO is employed under an employment agreement with no fixed term where either party may terminate the
agreement with or without cause by giving one month and three months’ notice respectively.
The previous CFO was employed under a consultancy arrangement with either party may terminate the agreement
immediately by giving written notice.
Prohibition on trading
The Remuneration policy prohibits directors and employees that are granted shares as a result of share rights from entering
into arrangements that limit their exposure to losses that would result from share price decreases. The policy also requires
directors, and employees to seek approval from the Company prior to that individual buying or selling any company
securities. Directors and employees are not permitted to trade during a closed period. Procedures are in place where
trading during a closed period is sought in exceptional circumstances.
Latin Resources Limited (ABN 81 131 405 144)
24
DIRECTORS’ REPORT
REMUNERATION OF KEY MANAGEMENT PERSONNEL AND EXECUTIVES FOR THE YEAR ENDED 31 DECEMBER 2020
Short-term benefits
Post-
employment
Other long-
term benefits
Share-based payments
Total
Performance
related
Equity
compensation
12 months to
31 Dec 2020
Salary &
Fees
Bonus
Non-cash
benefits
Super
Long service
leave
$
$
$
$
$
Directors
D. Vilensky
C. Gale
B. Jones
P. Tarantini1
Other KMP
S. Smith
Y. Gouw2
A. Greenaway3
64,800
-
270,000
20,000
50,000
8,333
44,150
76,410
38,141
-
-
-
-
-
Total
551,834
20,000
-
-
-
-
-
-
-
-
-
-
-
-
-
7,259
3,623
10,882
-
-
-
-
-
-
-
-
1 Mr. Tarantini was appointed on 2nd November 2020 as a Non-Executive Director.
2 Mr. Gouw was appointed on 20th January 2020 as Chief Financial Officer.
3 Mr. Greenaway was appointed on 11th August 2020 as General Manager - Explorations.
Share
rights/
Options4
$
22,350
52,312
62,500
-
-
-
-
-
-
-
-
8,000
8,000
-
137,162
16,000
Shares
Loan funded
shares
$
$
$
%
%
-
-
-
-
-
-
-
-
87,150
342,312
112,500
8,333
52,150
91,669
41,764
735,878
26
21
56
-
15
9
-
25
-
-
-
-
-
-
-
-
4 Free attaching LRSOC Options were issued to directors as part of the payment of the outstanding directors’ fees which was paid by ordinary shares in accordance with shareholder
approval granted on 31 July 2020 .
Latin Resources Limited (ABN 81 131 405 144)
25
DIRECTORS’ REPORT
REMUNERATION OF KEY MANAGEMENT PERSONNEL AND EXECUTIVES FOR THE YEAR ENDED 31 DECEMBER 2019
Short-term benefits
Post-
employment
Other long-
term benefits
Share-based payments
Total
Performance
related
Equity
compensation
12 months to 31
Dec 2019
Salary &
Fees
Bonus
Non-cash
benefits
Super
Long service
leave
$
$
$
$
$
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
J. Grygorcewicz1
S. Moyle 2
Total
64,800
295,000
50,000
52,106
86,100
72,938
620,944
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,545
4,545
-
-
-
-
-
-
-
Share
rights
$
-
82,279 3
-
-
-
-
82,279
Shares
Loan funded
shares
$
$
$
%
%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
64,800
377,279
50,000
52,106
86,100
77,483
707,768
-
22
-
-
-
-
22
-
-
-
-
-
-
-
1 Mr Grygorcewicz’s consultancy contract with the Company was terminated effective 31 December 2019.
2 Mr Moyle contract with the Company was changed into a consultancy arrangement before termination effective 31 August 2019.
3 $82,279 relates to 48,026,319 incentive and 9,005,323 retention share rights approved for issue by shareholders in prior years. Of this amount $32,912 was expensed and the balance
was capitalised.
On 29 March 2019 and subsequent to year the 48,026,319 incentive rights did not meet the performance criteria and lapsed and no financial benefit was realised.
Latin Resources Limited (ABN 81 131 405 144)
26
DIRECTORS’ REPORT
ADDITIONAL DISCLOSURES RELATING TO REMUNERATION
(a) Share holdings of key management personnel
31 Dec 2020
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw1
A. Greenaway2
Balance at
start of year
Granted as
remuneration
On exercise of
options/conversion
of rights
Net change
other
Balance at
end of year
602,366
732,874
1,473,877
7,450,0003
17,437,5003
20,833,2503
-
-
999,201
1,079,213
(9,312,596)
(1,250,890)
9,131,579
8,857,778
22,055,438
-
-
-
500,000
500,000
-
-
-
-
(131,094)
-
-
368,906
500,000
-
2,809,117
46,720,750
999,201
(9,615,367)
40,913,701
1 Mr. Gouw was appointed on 20th January 2020 as Chief Financial Officer.
2 Mr. Greenaway was appointed on 11th August 2020 as General Manager - Explorations.
3 At the Annual General Meeting held on 31 July 2020, shareholders approved the settlement of outstanding Directors’
fees with fully paid ordinary shares and listed LRSOC options.
31 Dec 2019
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
J. Grygorcewicz 1
S Moyle 2
Balance at
start of year
15,059,136
9,531,042
29,346,899
Granted as
remuneration
-
-
-
On exercise of
options
-
-
8,790,792
Net change
other
(14,456,770) 3
(17,588,960) 3
(27,873,022) 3
Balance at
end of year
602,366
732,874
1,473,877
-
1,000,000
1,000,000
56,937,077
-
-
-
-
-
-
-
8,790,792
-
(1,000,000)
(1,000,000)
(62,918,752)
-
-
-
2,809,117
1 Mr Grygorcewicz consultancy contract with the Company was terminated effective 31 December 2019.
2 Mr Moyle consultancy contract with the Company was terminated effective 31 August 2019.
3 The Reduction is due to 1:25 share consolidation.
Loan Funded Shares
31 Dec 2020
D. Vilensky
C. Gale
B. Jones
31 Dec 2019
D. Vilensky
C. Gale
B. Jones
Balance at
start of year
1,000,000
2,000,000
1,000,000
4,000,000
Balance at
start of year
25,000,000
50,000,000
25,000,000
100,000,000
Granted as
remuneration
-
-
-
-
Granted as
remuneration
-
-
-
-
On exercise of
options
-
-
-
-
On exercise of
options
-
-
-
-
Net change
other1
-
-
-
-
Net change
other
(24,000,000)
(48,000,000)
(24,000,000)
(96,000,000)
Balance at
end of year
1,000,000
2,000,000
1,000,000
4,000,000
Balance at
end of year
1,000,000
2,000,000
1,000,000
4,000,000
There were no loans to key management personnel during the financial year 2019 and 2020.
Latin Resources Limited (ABN 81 131 405 144)
27
DIRECTORS’ REPORT
ADDITIONAL DISCLOSURES RELATING TO REMUNERATION
In 2018, At the Annual General Meeting held 28 May 2018, shareholders approved the adoption of the Latin Resources
Limited Loan Funded Share Plan and also approved the issue of 100,000,000 loan funded shares to directors. The loan
funded shares are issued at cost of 1.1 cents per share which is funded by a loan from the Company. The loans are interest
free and with limited recourse to the participant and are unquoted shares until the loan has been repaid. The Plan
requires the loan to be repaid before the participant can sell their shares. 1 The reduction is due to the 1:25 share
consolidation.
(a) Share right holdings of key management personnel (continued)
31 Dec 2020
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw
A. Greenaway
31 Dec 2019
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
J. Grygorcewicz
S. Moyle
Balance at
start of year
Granted as
remuneration
Converted to
Shares
Net change
other
Balance at
end of year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
start of year
-
57,031,642
-
Granted as
remuneration
-
-
-
Converted to
Shares
-
(9,005,323)
-
Net change
other
-
(48,026,319)
-
Balance at
end of year
-
-
-
-
-
-
57,031,642
-
-
-
-
-
-
-
(9,005,323)
-
-
-
(48,026,319)
-
-
-
-
(b) Vesting profile of share rights granted to key management personnel
Directors
D. Vilensky
C. Gale – Retention rights1
C. Gale – Performance rights1
B. Jones
Other KMP
S. Smith
J. Grygorcewicz
Number
Grant date
Vested in
year (%)
Net
change
other (%)
Date at which share
rights are to be
vested
-
9,005,323
48,026,319
-
-
31/10/2016
31/10/2016
-
-
-
-
-
-
100
-
-
-
-
-
-
100
-
-
-
-
31/10/2019
31/10/2019
-
-
-
1 48,026,319 of the performance rights issued to Mr Gale lapsed as they did not meet the vesting criteria.
Latin Resources Limited (ABN 81 131 405 144)
28
DIRECTORS’ REPORT
ADDITIONAL DISCLOSURES RELATING TO REMUNERATION
(c) Option holdings of key management personnel
The number of options held by directors and other key management personnel both directly and indirectly are set out
below.
31 Dec 2020
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw
A. Greenaway
Balance at
start of year
Granted as
remuneration
Exercised
Net change
other
Balance at
end of year
Vested
exercisable
Vested not
exercisable
-
-
-
-
-
-
-
7,450,0001
17,437,5001
20,833,2501
-
812,152
- (2,383,752)
999,201
(999,201)
8,262,152
15,053,748
20,833,250
-
-
-
45,720,750
-
-
-
(999,201)
-
-
-
(572,399)
-
-
-
44,149,150
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 At the Annual General Meeting held on 31 July 2020, shareholders approved the settlement of outstanding Directors’ fees
with fully paid ordinary shares and listed LRSOC options.
31 Dec 2019
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
J. Grygorcewicz 1
S. Moyle
Balance at
start of year
Granted as
remuneration
Exercised
Net change
other
Balance at
end of year
Vested
exercisable
Vested not
exercisable
-
-
-
-
1,000,000
-
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,000,000)
-
(1,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 Mr Grygorcewicz consultancy contract with the Company was terminated effective 31 December 2019.
(d) Loans to key management personnel
There were no loans to key management personnel during 2020 and 2019 financial years.
(e) Other transactions with key management personnel
Refer Note 23 for details of other transactions with directors. There were no other transactions with other key management
personnel during the current or prior year.
This Report is signed in accordance with a resolution of the Board of Directors.
David Vilensky
Chairman
Signed on 31 March 2020
Latin Resources Limited (ABN 81 131 405 144)
29
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the twelve months ended 31 December 2020
Interest revenue
Other income and losses
Depreciation and amortisation expense
Employee benefits expense
Finance expenses
Equity share of associated company gain/(loss)
Profit/(Loss) on fair value of financial assets through profit or loss
Impairment
Reversal of impairment
Other expenses
Profit/(Loss) continuing operations before tax
Income tax benefit
Notes
31 Dec 2020
$
31 Dec 2019
$
5
13
6(a)
6(b)
12
12
6(c)
7
360
176,522
(16,606)
(714,888)
(402,429)
42,413
6,455
-
765,835
(1,029,496)
(1,171,834)
905
(1,119,481)
(19,123)
(655,909)
(581,481)
(215,069)
(300,822)
(836,145)
-
(630,396)
(4,357,521)
-
-
Profit/(Loss) for the year from continuing operations
(1,171,834)
(4,357,521)
Profit/(Loss) attributable to owners of the Parent Company
(1,171,834)
(4,357,521)
Gain/(Loss) from discontinued operation
31
4,723,080
(1,181,633)
Net profit for the period
3,551,246
(5,539,154)
Other comprehensive income/(expense)
Items that cannot be reclassified to profit or loss in subsequent periods:
Items that may be reclassified to profit or loss in subsequent periods:
Exchange differences on translating foreign operations
-
-
20
(491,090)
672,078
Total comprehensive profit/(loss) for the year attributable to owners
of the Parent Company
3,060,156
(4,867,076)
Basic earning/(loss) per share (Cents)
Diluted earning/(loss) per share (Cents)
8
8
0.6
0.4
(3.7)
(3.7)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
Latin Resources Limited (ABN 81 131 405 144)
30
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2020
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Investments accounted for using the equity method
Plant and equipment
Other assets
Exploration and evaluation assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Interest bearing loans and borrowings
Deferred consideration
Provisions
Total current liabilities
Non-current liabilities
Deferred consideration
Total non-current liabilities
Total liabilities
Net (deficiency)/assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
Notes
31 Dec 2020
$
31 Dec 2019
$
9(a)
10
11(a)
12
13
11(b)
14
15
16
17(a)
18
17(b)
4,533,257
331,719
43,700
4,908,676
733,282
591,685
43,700
1,368,667
924,860
39,347
376,000
7,082,034
8,422,241
13,330,917
-
55,757
-
11,292,382
11,348,139
12,716,806
1,356,643
900,000
-
43,910
2,300,553
1,693,434
2,535,755
22,000
41,330
4,292,519
-
-
2,300,553
11,030,364
9,161,111
9,161,111
13,453,630
(736,824)
19
20
21
56,467,554
10,934,219
(56,371,409)
11,030,364
48,218,621
10,967,210
(59,922,655)
(736,824)
The above consolidated statement of financial position should be read in conjunction with accompanying notes
Latin Resources Limited (ABN 81 131 405 144)
31
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the twelve months ended 31 December 2020
Contributed
equity
Share based
payment
reserve
$
$
Foreign
currency
translation
reserve
$
Accumulated
losses
Total
$
$
Balance at 1 January 2019
45,902,186
4,617,161
5,227,684
(54,383,501)
1,363,530
Profit/(Loss)for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
Issue of shares
Share based payments
Transaction costs
Balance at 31 December 2019
-
-
2,690,935
-
(374,500)
48,218,621
-
-
-
-
672,078
672,078
-
(5,539,154)
-
(5,539,154)
-
450,287
-
5,067,448
-
-
5,899,762
-
-
(59,922,655)
(5,539,154)
672,078
(4,867,076)
2,690,935
450,287
(374,500)
(736,824)
Balance at 1 January 2020
48,218,621
5,067,448
5,899,762
(59,922,655)
(736,824)
Profit/(Loss) for the year
Other comprehensive income/(loss)
Total comprehensive income/(loss)
Issue of shares
Share based payments
Transaction costs
Balance at 31 December 2020
-
-
-
7,175,739
1,657,583
(584,389)
56,467,554
-
-
-
-
458,099
-
5,525,547
-
(491,090)
(491,090)
-
-
-
5,408,672
3,551,246
-
3,551,246
-
-
-
(56,371,409)
3,551,246
(491,090)
3,060,156
7,175,739
2,115,682
(584,389)
11,030,364
The above consolidated statement of changes in equity should be read in conjunction with accompanying notes.
Latin Resources Limited (ABN 81 131 405 144)
32
CONSOLIDATED STATEMENT OF CASH FLOWS
For the twelve months ended 31 December 2020
Cash flows from operating activities
Receipts from other income
Payments to suppliers and employees
Interest received
Interest and other charges paid
Net cash flows used in operating activities
Cash Flows from investing activities
Payments for plant and equipment
Payments to acquire investments
Payments for exploration and evaluation assets
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from the issue of equity
Transaction costs of issuing shares
Proceeds from options exercised
Proceeds from / (repayment of) borrowing
Transaction costs of borrowings
Net cash from financing activities
Net (decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Net foreign exchange difference
Cash and cash equivalents at the end of the year
Notes
31 Dec 2020
$
31 Dec 2019
$
76,704
(1,101,479)
360
(48,583)
(1,072,998)
(4,806)
(110,157)
(748,495)
(863,458)
7,175,739
(434,390)
13,082
(1,018,000)
-
5,736,431
3,799,975
733,282
-
4,533,257
-
(722,791)
905
-
(721,886)
-
-
(840,805)
(840,805)
1,523,100
(170,691)
-
770,000
(31,200)
2,091,209
528,518
204,764
-
733,282
9(b)
13
9(a)
The above consolidated statement of cash flows should be read on conjunction with accompanying notes.
Latin Resources Limited (ABN 81 131 405 144)
33
NOTES TO THE FINANCIAL STATEMENTS
1. Corporate information
The consolidated financial statements of the Group, being Latin Resources Limited (the Company or Parent) and its subsidiaries
(collectively, the Group), for the year ended 31 December 2020 were authorised for issue in accordance with a resolution of
the directors on 31 March 2021.
Latin Resources Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the
Australian Securities Exchange.
The nature of the operations and principal activities of the Group are described in the directors’ report. Information on the Group’s
structure and other related party relationships is provided in Note 23(c).
2. Summary of significant accounting policies
(a) BASIS OF PREPARATION
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting
Standards Board. The financial report has also been prepared on a historical cost basis except for certain financial instruments
which are fair value.
The financial report is presented in Australian dollars and all values are rounded to the nearest dollar unless otherwise stated.
(b) COMPLIANCE WITH IFRS
The financial report also complies with International Financial reporting Standards (‘IFRS’) as issued by the International
Accounting Standards Board.
(c)
CHANGE IN ACCOUNTING POLICY AND DISCLOSURES.
The accounting policies adopted are consistent with those of the previous financial year except as noted below.
(d) BASIS OF CONSOLIDATION
The consolidated financial statements comprise the financial statements of Latin Resources Limited and its subsidiaries as at the end of
each reporting period.
Subsidiaries are all those entities over which the Group has the power to govern the financial and operating policies so as
to obtain benefits from their activities. Information regarding subsidiaries is disclosed in Note 23(c).
The financial statements of subsidiaries are prepared for the same reporting period as the Parent company, using consistent
accounting policies or adjustments are made to the financial statements of subsidiaries to bring their accounting policies into
line with those used by other members of the Group.
In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses and
profits and losses resulting from inter-group transactions, have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by the Group and cease to be consolidated
from the date on which control is transferred out of the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. The acquisition method of
accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities
assumed and any non-controlling interest in the acquiree. The identifiable assets acquired and the liabilities assumed are
measured at their acquisition date fair values.
The difference between the above items and the fair value of the consideration (including the fair value of any pre-existing
investment in the acquiree) is goodwill or a discount on acquisition.
(e) COMPARATIVE INFORMATION
Certain comparative information in the financial report may have been reclassified to aid comparability with the current year.
Latin Resources Limited (ABN 81 131 405 144)
34
NOTES TO THE FINANCIAL STATEMENTS
(f) GOING CONCERN
The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities
and the realisation of assets and settlement of liabilities in the ordinary course of business.
(g) SEGMENT REPORTING
An operating segment is a component of an entity that engages in business activities from which it may earn revenues
and incur expenses (including revenues and expenses relating to transactions with other components of the same entity),
whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its performance and for which discrete financial information is
available.
Operating segments have been identified based on the information provided to the chief operating decision makers
being the Board.
Operating segments that meet the quantitative criteria as prescribed by AASB 8 are reported separately. However, an
operating segment that does not meet the quantitative criteria is still reported separately where information about the
segment would be useful to users of the financial statements.
The Group determines and presents operating segments based on the information internally provided to the Board.
(h) REVENUE
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can
be reliably measured, regardless of when the payment is being made. Revenue is measured at fair value of the consideration
received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties. 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.
(i) CURRENT VERSUS NON-CURRENT CLASSIFICATION
The Group presents assets and liabilities in the statement of financial position based on current/non-current classification.
An asset is current when it is:
Expected to be realized or intended to be sold or consumed in normal operating cycle;
Held primarily for the purpose of trading;
Expected to be realized within twelve months after the reporting period; or
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period.
All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in a normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Group classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets
and liabilities.
Latin Resources Limited (ABN 81 131 405 144)
35
NOTES TO THE FINANCIAL STATEMENTS
(j)
INCOME TAX
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, and the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in
joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the
temporary difference will reverse in the foreseeable future and taxable profit will be available against which the
temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be
utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it
has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities related to the same taxable entity and the same
taxation authority.
(k) GOODS AND SERVICES TAX
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 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 cash flow statement 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.
Latin Resources Limited (ABN 81 131 405 144)
36
NOTES TO THE FINANCIAL STATEMENTS
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
(l) LEASES
Leases in which a significant portion of the risks and rewards of ownership benefits are retained by the lessor are classified
as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to
Profit or Loss on a straight-line basis over the life of the lease.
(m) 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.
(n) EARNINGS PER SHARE
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the year, adjusted for bonus elements in ordinary shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
(o) CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term
borrowings in current liabilities in the Statement of Financial Position.
(p) FINANCIAL ASSETS
Shares held for trading have been classified as financial assets at fair value through profit or loss. Financial assets held for
trading purposes are stated at fair value, with any resultant gain or loss recognised in profit or loss. The fair value of
investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices
at the close of business on the reporting date. Assets in this category are classified as current assets if they are expected to
be realised within 12 months otherwise they are classified as non-current assets.
(q) PROPERTY, PLANT & EQUIPMENT
Plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Depreciation is calculated
on a straight-line basis over the estimated useful life of the asset as follows:
Plant and equipment - over 3 to 5 years; and
Motor Vehicles - over 8 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its
use or 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 period the item is derecognised.
(r) EXPLORATION AND EVALUATION EXPENDITURE
Expenditure on exploration and evaluation expenditure is accounted for in accordance with the ‘area of interest’ method.
Exploration and evaluation expenditure is capitalised provided the rights to tenure of the area of interest is current and
either:
Latin Resources Limited (ABN 81 131 405 144)
37
NOTES TO THE FINANCIAL STATEMENTS
the exploration and evaluation activities are expected to be recouped through successful development and exploitation of the
area of interest or, alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage that permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant
operations in, or relating to, the area of interest are continuing.
When technical feasibility and commercial viability of extracting a mineral resource have been demonstrated then any
capitalised exploration and evaluation expenditure is reclassified as capitalised ‘Mine properties in development’. Prior to
reclassification, capitalised exploration and evaluation expenditure is assessed for impairment.
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at the cash generating
unit level whenever facts and circumstances suggest that the carrying value of the asset may exceed its recoverable amount.
An impairment exists when the carrying amount 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. Any impairment losses are
recognised in the statement of profit or loss and other comprehensive income.
Refer Note 3 and 14 for details regarding the impairment charge for the reporting period.
(s) TRADE AND OTHER PAYABLES
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to
the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future
payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30
days of recognition.
(t) DEFERRED CONSIDERATION
Deferred consideration arises when settlement of all or any part of the cost of an exploration and evaluation properties is
deferred.
It is stated at fair value at the date of acquisition, which is determined by discounting the amount due to present value at that
date.
Interest is imputed on the fair value of non-interest bearing deferred consideration at the discount rate and capitalised as part
of exploration and evaluation properties.
At each balance sheet date deferred consideration comprises the remaining deferred consideration valued at acquisition plus
interest imputed on such amounts from acquisition to the balance sheet date.
(u) PROVISIONS
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.
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 income statement net of any reimbursement.
Provisions are measured at the present value of managements best estimate of the expenditure required to settle the
present obligation at the balance sheet date. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects the time value of money and the risks specific to the liability. The increase in the
provision resulting from the passage of time is recognised in finance costs.
(v) FINANCIAL LIABILITIES
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
Latin Resources Limited (ABN 81 131 405 144)
38
NOTES TO THE FINANCIAL STATEMENTS
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and
derivative financial instruments.
Subsequent measurement
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
Effective Interest Rate method (EIR). Gains and losses are recognised in profit or loss when the liabilities are derecognised as
well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.
This category generally applies to interest-bearing loans and borrowings. For more information, refer to Note 16.
(w) EMPLOYEE BENEFITS
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months
of the reporting date are recognised in respect of employees’ services up to the reporting 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.
Long service leave and other employment entitlements
The liability for long service leave and other employment entitlements is recognised and measured as the present value of
expected future payments to be made in respect of services provided by employees up to the reporting date using the
projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service.
Expected future payments are discounted using market yields at the reporting date on national government bonds with
terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
(x) FOREIGN CURRENCY TRANSLATION
Functional and presentation currency
The consolidated financial statements are presented in Australian dollars, which is Latin Resources Limited’s functional and
presentation currency.
Each entity in the Group determines its own functional currency based on the primary economic environment and items
included in the financial statements of each entity are measured using that functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency at the
exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies
are retranslated at a rate of exchange ruling at the reporting date.
All exchange differences in the consolidated financial statements are taken to the profit or loss with the exception of
differences on foreign currency borrowings that provide a hedge against a net investment in a foreign operation. These are
taken directly to equity until the disposal of the net investment, at which time they are recognised in the profit or loss. On
disposal of a foreign operation, the cumulative amount recognised in equity relating to that particular foreign operation
is recognised in the profit or loss. Tax charges and credits attributable to exchange differences on those borrowings are also
recognised in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value was determined.
Latin Resources Limited (ABN 81 131 405 144)
39
NOTES TO THE FINANCIAL STATEMENTS
Group companies
The functional currency of Peruvian Latin Resources SAC, Minera Dylan SAC, Recursos Latinos S.A. and Mineracao Ferro
Nordeste Ltda is United States dollars.
The functional currency of these subsidiaries has been translated into Australian dollars for presentation purposes. The
assets and liabilities of this subsidiary are translated using the exchange rates prevailing at the reporting date; revenues
and expenses are translated using average exchange rates for the period; and equity transactions eliminated on
consolidation are translated at exchange rates prevailing at the dates of transactions.
The resulting difference from translation is recognised in a foreign currency translation reserve through other
comprehensive income.
(y) INVESTMENT IN ASSOCIATES
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in
the financial and operating policy decisions of the investee, but is not control over those policies.
The considerations made in determining significant influence are similar to those necessary to determine control over
subsidiaries. The Group’s investment in its associates is accounted for using the equity method. Under the equity method,
the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise
changes in the Group’s share of net assets of the associate since the acquisition date. The statement of profit or loss
reflects the Group’s share of the results of operations of the associate.
(z) SHARE BASED PAYMENT TRANSACTIONS
Equity-settled share-based payments are measured at the fair value determined at the grant date of the equity-settled share-
based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity
instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group
revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates,
if any, is recognised in the Statement of comprehensive income such that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to reserves.
Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the
goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the
fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders
the service.
For cash-settled share-based payments, a liability equal to the portion of the goods or services received is recognised at the current
fair value determined at each reporting date.
(ab) FAIR VALUE OF ASSETS AND LIABILITIES
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on
the requirements of the applicable Accounting Standard.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability; or
In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Latin Resources Limited (ABN 81 131 405 144)
40
NOTES TO THE FINANCIAL STATEMENTS
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable; or
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether
transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
(ac) DISCONTINUED OPERATION
Recognition and Measurement
A discontinued operation is a component of the Group that has either been disposed of, or is 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, is analysed in Note 31.
(ad) APPLICATION OF NEW AND REVISED ACCOUNTING STANDARDS
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (“AASB”) that are mandatory for the current reporting period. The adoption of these Accounting
Standards and Interpretations did not have any significant impact on the financial performance or position of the Group
during the financial year.
3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
In the process of applying the Group’s accounting policies management makes judgements. In addition the carrying amounts
of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key
judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of certain assets and liabilities within the next annual reporting period are:
Determination of mineral resources and ore reserves
The Group reports its mineral resources and ore reserves in accordance with the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves, 2004 Edition (the JORC code) as a minimum standard. The
information on mineral resources and ore reserves were prepared by or under the supervision of Competent Persons as
defined in the JORC code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid
at the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic
status of reserves and may, ultimately, result in reserves or resources being restated.
Impairment of Exploration and evaluation assets
The Group accounts for Exploration and evaluation assets in accordance with its policy (refer Note 1(s)).
Latin Resources Limited (ABN 81 131 405 144)
41
NOTES TO THE FINANCIAL STATEMENTS
An impairment exists when the carrying amount 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. Any impairment losses are
recognised in the statement of profit or loss and other comprehensive income.
The Group’s projects are considered to not be at the stage that permits a reasonable assessment of the existence or
otherwise of economically recoverable reserves.
The future recoverability of Exploration and evaluation assets is dependent on a number of factors, including whether the
Group decides to exploit the related concession itself or, if not, whether it can successfully recover the related exploration
and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future technological changes,
which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations)
and changes to commodity prices.
To the extent that capitalised Exploration and evaluation expenditure is determined not to be recoverable in the future,
profits and net assets will be reduced in the period in which this determination is made.
Deferred income tax benefit from carried forward tax losses
The future recoverability of the carried forward tax losses are dependent upon Group’s ability to generate taxable profits in
the future in the same tax jurisdiction in which the losses arise. This is also subject to determinations and assessments made
by the taxation authorities.
The recognition of a deferred tax asset on carried forward tax losses (in excess of taxable temporary differences) is dependent
on management’s assessment of these two factors. The ultimate recoupment and the benefit of these tax losses could differ
materially from management’s assessment.
IGV/VAT recoverability
Included in the Expenditure and Evaluation assets (Note 14) is an amount that relates to VAT paid by the group that will only
be recovered by Peruvian subsidiary through making future sales. A portion of this amount relates to VAT expenditure on
Guadalupito Project. The Directors have confirmed that the termination of the Guadalupito project does not impact the rights
of the Group to benefit from the total VAT recoverable from future sales.
Tax impact on discontinued operation
The Group has consulted with tax consultant in regards to the gain and loss arising from the discontinued operation. With
that understanding, the Group has determined that there is no taxation impact from the discontinued operation.
Latin Resources Limited (ABN 81 131 405 144)
42
NOTES TO THE FINANCIAL STATEMENTS
4. OPERATING SEGMENT INFORMATION
The Group has identified its operating segments in accordance with its accounting policy as set out in Note 2(h) and based
on the internal reports that are reviewed and used by the Board (chief operating decision maker) in assessing performance
and in determining the allocation of resources. The Group’s four operating segments are Australia, Brazil, Peru and Argentina.
The following is an analysis of the Group’s revenues, results, assets, liabilities by reportable operating segment.
2020
Australia
Peru
Argentina
Brazil
$
$
360
141,698
142,058
-
35,710
35,710
(6,082)
(10,524)
(25,337)
(399,153)
(331)
-
811
-
(7)
(878)
$
-
-
-
-
-
-
-
-
(672,422)
42,413
(213,129)
-
(64,963)
-
-
-
-
-
-
(1,060,919)
(918,861)
6,717,555
(1,391,455)
-
(223,720)
(188,010)
2,319,016
(784,290)
-
-
-
(64,963)
(64,963)
3,817,784
(97,268)
476,562
(27,540)
4,806
373,449
-
1,485,505
-
57,567
-
7,300
376,000
-
-
-
754,255
1,485,505
57,567
7,300
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Discontinued
Operations
$
-
-
-
-
-
-
-
-
-
-
Total
$
360
177,408
177,768
(16,606)
(25,337)
(398,342)
(331)
(885)
(950,514)
42,413
(4,299,991)
(4,299,991)
10,754,313
10,754,313
(1,731,242)
4,723,080
4,723,080
-
-
-
-
-
-
(1,731,242)
3,373,478
3,551,246
13,330,917
(2,300,553)
4,806
1,923,821
376,000
2,304,627
Revenue
Interest revenue
Other income
Total revenue
Results
Depreciation & amortisation
expense
Share based payments
Interest expense
Borrowing cost
Net foreign exchange
gain/(loss)
Other expenses
Share of Associate Company
loss
Exploration and evaluation
expenses
Gain on extinguishment of
liability
Unwinding of interest
Total expenses
Segment profit/(loss)
Segment assets
Segment liabilities
Additions to non-current
assets
Plant & equipment
Exploration & evaluation
assets
Deposit for acquisition of
Burdett project
Total additions to non-
current assets
Latin Resources Limited (ABN 81 131 405 144)
43
NOTES TO THE FINANCIAL STATEMENTS
2019
Revenue
Interest revenue
Other income
Total revenue
Results
Depreciation & amortisation
expense
Share based payments
Interest expense
Loss on sale of exploration
project
Net foreign exchange
gain(loss)
Other expenses
Share of Associate Company
loss
Unwinding of interest
Total expenses
Segment loss
Segment assets
Segment liabilities
Additions to non-current
assets
Plant & equipment
Exploration & evaluation
assets
Total additions to non-
current assets
Australia
$
Peru
$
Argentina
$
Brazil
$
Discontinued
Operations
$
905
-
905
-
123,659
123,659
(7,503)
(11,620)
(32,912)
(409,106)
(1,136,967)
-
-
-
-
-
-
-
-
-
-
(6,138)
(3,176)
(1,233,826)
(1,203,963)
(215,069)
(201,197)
-
(20,608)
-
-
(3,011,658)
(3,010,753)
-
(215,993)
(92,334)
-
(1,254,434)
(1,254,434)
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
905
123,659
124,564
(19,123)
(32,912)
(409,106)
(1,136,967)
(1,243,140)
(1,425,768)
(215,069)
-
-
-
-
-
-
-
-
-
-
(1,181,633)
(1,181,633)
(1,181,633)
(1,181,633)
(5,663,718)
(5,539,154)
639,398
(3,176,552)
3,112,298
(1,021,673)
3,864,522
(31,309)
478,563
(40,985)
4,622,025
(9,183,111)
12,716,806
(13,453,630)
-
-
-
-
-
-
198,943
119,827
(82,630)
450,207
46,036
732,383
198,943
163,175
(82,630)
450,207
46,036
732,383
Segment loss represents the loss incurred by each segment without allocation of corporate overhead costs. This is the
information reported to the chief operating decision maker for the purposes of resource allocation and assessment of
segment performance.
5. OTHER INCOME AND LOSSES
Sundry income
Administration Fees
Other
6.
EXPENSES
(a) Employee benefits expense
Employee benefits and Director Fees
Employee Share based payments (refer note 22)
2020
$
112,413
64,994
(885)
176,522
2019
$
123,659
-
(1,243,140)
(1,119,481)
(545,726)
(169,162)
(714,888)
(622,997)
(32,912)
(655,909)
1 Out of Employee share based payments of $169,162 (2019: $82,279), the full amount (2019: $32,912) was expensed
during the year with the nil balance (2019: $49,367) being capitalised.
Latin Resources Limited (ABN 81 131 405 144)
44
NOTES TO THE FINANCIAL STATEMENTS
(b) Finance expenses
Bank fees and charges
Interest expense
Other finance charges
(c) Other expenses
Administration expenses
Corporate expenses
Occupancy expenses
Receivable written-off
Share based payments2
(3,755)
(398,342)
(332)
(402,429)
(210,251)
(612,528)
(21,232)
(160,148)
(25,337)
(1,029,496)
2 Represent the value of the LRSOC Options issued to the holder of LRSOB Options for nil consideration.
7.
INCOME TAXES
The components of income tax benefit comprise:
Current income tax benefit
Deferred income tax benefit
Income tax benefit reported in the consolidated statement of profit or
loss and other comprehensive income
Income tax expense recognised in equity
Accounting loss before tax
At the statutory income tax rate of 27.5% (in Australia and Peru)
Other non-deductible expenditure for income tax purposes
R&D tax rebate claim
Unrecognised tax losses
Income tax benefit reported in the consolidated statement
comprehensive income
Deferred tax assets
Carried forward revenue losses - Australia
Carried forward revenue losses - Peru
Carried forward revenue losses - Brazil
Carried forward revenue losses - MD (Peru)
Carried forward revenue losses - Argentina
Exploration and evaluation assets
Provisions and accruals
Other
Deferred Consideration Write Back
Gross deferred tax asset
Offset against deferred tax liability
Unrecognised tax losses
Deferred tax liabilities
Exploration and evaluation assets
Plant and equipment
Carried forward revenue losses - Peru
Gross deferred tax liability
Offset against deferred tax asset
Net deferred tax liability
(4,397)
(409,106)
(167,978)
(581,481)
(139,807)
(437,417)
(53,172)
-
-
(630,396)
2020
$
-
-
-
2020
$
-
-
-
3,551,246
976,593
-
(5,539,154)
(1,523,267)
-
(976,593)
1,523,267
-
-
3,840,197
-
197,776
(143)
513,423
(226,096)
30,684
(22,925)
-
4,332,916
-
4,332,916
-
-
-
-
-
-
3,334,414
-
197,776
420
495,559
15,658
16,263
626,669
-
4,686,759
-
4,686,759
-
-
-
-
-
-
Latin Resources Limited (ABN 81 131 405 144)
45
NOTES TO THE FINANCIAL STATEMENTS
8.
EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
2020
Cents
0.6
0.4
$
2019
Cents
(3.7)
(3.7)
$
Loss used in calculating basic and diluted earnings/(loss) per share
3,551,246
(5,539,154)
Weighted average number of ordinary shares used in calculating basic
earnings/(loss) per share*
Weighted average number of ordinary shares used in calculating diluted
earnings/(loss) per share*
Number
Number
622,423,444
151,435,353
957,869,218
151,435,353
* The weighted average number of shares takes into account the weighted average effect of changes in share
transactions during the year. At balance date there were 649,648,381 (2019: 144,250,001) share options and nil (2019:
nil) share rights on issue which were considered dilutive only for the current period and therefore included from the
weighted average number of ordinary shares used in calculating dilutive earnings per share.
9.
CASH
(a) Cash and short term deposits
Cash in hand
Cash at bank
2020
$
306
4,532,951
4,533,257
2019
$
309
732,973
733,282
(b) Reconciliation of net loss after income tax to net cash flows from operating activities:
Profit/(Loss) for the year
3,551,246
(5,539,154)
Adjustments to reconcile loss after tax to net cash flows from operating activities:
(Gain) on sale of investments
(Profit)/Loss on fair value of financial assets through profit and loss
Reversal of prior year impairment
Depreciation
Transaction cost of borrowing
Accrued interest payable
Share of (gain)/loss from associated companies
Net (gain)/loss on disposal of discontinued operations
Share based payments
Net foreign exchange loss/(gain)
Unwinding of the effective interest rate
Working capital adjustments:
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions for annual leave
Net cash flows used in operating activities
Non-cash financing and investing activities
(6,455)
(765,835)
16,606
-
353,845
(42,413)
(4,723,080)
169,162
(31,472)
-
396,057
6,760
2,581
(1,072,998)
-
1,119,481
-
19,123
31,200
409,106
215,069
-
165,266
876,657
1,181,633
176,561
647,075
(23,903)
(721,886)
Latin Resources Limited (ABN 81 131 405 144)
46
NOTES TO THE FINANCIAL STATEMENTS
During the year, the Group issued 266,611,821 fully paid ordinary shares to settle expenses and liabilities amounting to
$1,165,583. The Group also issued 10,000,000 fully paid ordinary shares valued at $340,000 and issued 2,000,000 LRSOC
options valued at $36,000 to acquire the Burdett project. The Yarara JV interest was also acquired by issuing 40,000,000
fully paid ordinary shares, valued at $120,000.
10. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Other receivables
Related party receivables
Tax credits
Prepayments
2020
$
171,859
50,935
12,999
88,014
7,912
331,719
2019
$
302,704
220,499
16,372
43,860
8,250
591,685
The Group applies simplified approach to providing for expected credit losses prescribed by AASB 9, which permits the
use of the lifetime expected loss provision for all trade receivables. To measure the expected credit losses, trade
receivables have been grouped based on shared credit risk characteristics and the days past due. The expected credit
losses also incorporate forward-looking information.
11. OTHER ASSETS
(a) Current Asset
Security deposits and bonds
(b) Non-current Asset
Acquisition of the Burdett project1
2020
$
43,700
43,700
376,000
376,000
2019
$
43,700
43,700
-
-
1 The Group acquired Burdett gold tenement which currently still in application from Syndicate Minerals Pty Ltd (ASX
announcement dated 03 December 2020). The consideration for the acquisition is as follows:
10,000,000 fully paid ordinary shares in Latin Resources Ltd
2,000,000 LRSOC Options.
12.
INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD
Shares in listed entities
Associated Company Investment – at carrying value 1
Equity Share of Associated Company profit/(loss)
Movement:
Opening balance
Additional investment
Share of (loss)/profit from associates
Impairment
Reversal of prior year impairment
Closing balance
2020
$
882,447
42,413
924,860
2020
$
-
116,612
42,413
-
765,835
924,860
2019
$
249,344
(249,344)
-
2019
$
1,051,214
-
(215,069)
836,145
-
-
1 Investment in Associate arising from settlement of the sale of the Peru Ilo copper project. At balance date the Company
has a 27.62% (2019:40.19%) direct shareholding in the capital of Westminster Resources Limited.
Latin Resources Limited (ABN 81 131 405 144)
47
NOTES TO THE FINANCIAL STATEMENTS
13. PLANT AND EQUIPMENT
Furniture and equipment
At cost
Less: Accumulated depreciation
Furniture and equipment
Balance at beginning of period
Additions
Disposals
Depreciation expense
Effects of exchange rate movements
Balance at end of period
14. EXPLORATION AND EVALUATION ASSETS
Balance at beginning of period
Additions
Acquisition of the Noombenberry project1
Acquisition of the Yarara project 2
Discontinued Operations
Other expenses (GST/VAT movement) 3
Foreign currency translation movement
Balance at end of period
2020
$
185,962
(146,615)
39,347
55,757
4,806
-
(16,606)
(4,610)
39,347
2020
$
11,292,382
748,495
-
150,000
(4,299,991)
9,246
(818,098)
7,082,034
2019
$
197,299
(141,542)
55,757
80,374
-
-
(19,123)
(5,494)
55,757
2019
$
8,866,009
890,171
181,845
-
-
1,693,990
(339,633)
11,292,382
1 The Group acquired the Noombenberry Halloysite Project and Big Grey Silver-Lead Project through the acquisition of Electric
Metals Pty Ltd (ASX Announcement dated 24 October 2019). The consideration for the acquisition is as follows:
25,000,000 fully paid ordinary shares in Latin Resources Ltd
6,250,000 options to subscribe for Shares, exercise price $0.012, expiry 31 December 2022
The Vendor will also be eligible for 16.5 million fully paid ordinary shares in Latin Resources Ltd and 4.125 million
options to subscribe for Shares, exercisable at $0.012, on or before 31 December 2022 on a successful
Kaolin/Halloysite JORC inferred resource of 3 million tonnes at 30% Ceramic Alumina (Al2O3) or greater.
2 The Group acquired the Yarara Project through a binding farm-in terms sheet with Mining and Energy Group Pty Ltd (MEG)
to earn up to a 75% interest in gold project (ASX announcement date 25 June 2020). The consideration for the acquisition is
as follows:
$30,000 non-refundable deposit to MEG
40,000,000 fully paid ordinary shares at a deemed issue price of $0.003 per share
Payment of $20,000 cash and issuing $130,000 worth of LRS shares made upon grant of drill permits for the first phase of
drilling on the tenement.
3 The Goods and services tax/value added tax (GST/VAT) refers to a receivable by the company’s subsidiary in Peru and
Argentina which can only be offset against GST/VAT attributable to future sales. The prior year balance has been reclassified
from Non-Current Trade and Other Receivables.
15. TRADE AND OTHER PAYABLES
Trade payables
Other payables
Accruals
2020
$
1,123,384
154,766
78,493
1,356,643
2019
$
1,409,872
218,562
65,000
1,693,434
Trade payables are generally 30 days term from end of month of supply.
Latin Resources Limited (ABN 81 131 405 144)
48
NOTES TO THE FINANCIAL STATEMENTS
16.
INTEREST BEARING LOANS AND BORROWINGS
Convertible Security Funding - Lind 1
Convertible Note 2
1 Convertible Security Funding - Lind
2020
$
900,000
-
900,000
2019
$
2,015,755
520,000
2,535,755
Security for the facility is provided by a general security agreement by the Company in favour of Lind and pledges over
all shares in each subsidiary and the Company. A total of 144,500,000 ordinary fully paid shares (collateral shares) have
been issued as to the convertible note holder prior to 1:25 share consolidation in 2019.
As part of the transaction costs, prior to 1:25 option consolidation in 2019, the company issued 110,000,000 listed
options exercisable at 1 cent per share which expired on 12 October 2019, 166,666,667 unlisted options exercisable at
0.43 cents per share expiring 18 December 2022, and 200,000,000 unlisted options exercisable at 0.13 cents per share
expiring 3 July 2023.
The Convertible security provides a funding limit of $6 million and repayable in either cash or shares at the election of
the Company. The Facility was originally for a period of 24 months with a maturity date of 26 June 2020, which was
extended by mutual agreement to 31 December 2020. The convertible note holder has the election of requesting
repayment of the original convertible note valued at $2,000,000 by acquiring a direct 5% interest in the Argentina
Projects. As at 31 December 2020, $900,000 remains outstanding under the Facility.
Subsequent to the end of the financial period, the Company has made full repayment on 7 January 2021 and terminated
the Facility.
2 Convertible Note
The Convertible Note was fully repaid in July 2020, via conversion to fully paid ordinary shares at the lower of $0.012
per share or 20% discount to historical 5 days VWAP prior to the date the Noteholders’ sent the Conversion Notice, with
a floor price of $0.004. Upon conversion the Noteholders also received for every $1.00 raised under the Notes, 80 free
attaching options exercisable at $0.012 on or before 31 December 2022.
17. DEFERRED CONSIDERATION
(a) Current
(b) Non-current
TOTAL
2020
$
-
-
-
2019
$
22,000
9,161,111
9,183,111
The deferred consideration balances reflect the current and non-current portions of the present value of the remaining
consideration (2019: US$10.0 million) the Group is required to pay in cash and shares for the acquisition of the
concessions relating to the Guadalupito project, which has now been relinquished and agreement terminated (Refer to
Note 31: Discontinued Operations).
The deferred consideration payable was originally as follows:
Share issues
-
January 2019 4,000,000 fully paid shares
Cash Payments
Within 6 months of favourable feasibility study
Within 18 months of favourable feasibility study
Within 30 months of favourable feasibility study
Within 42 months of favourable feasibility study
Within 54 months of favourable feasibility study
-
-
-
-
-
The favourable feasibility study is to be published no later than July 2019.
US$250,000
US$750,000
US$1,000,000
US$2,000,000
US$6,000,000
Latin Resources Limited (ABN 81 131 405 144)
49
NOTES TO THE FINANCIAL STATEMENTS
18. PROVISIONS
Employee benefits – Leave entitlements
19. CONTRIBUTED EQUITY
(a) Issued capital
Issued shares
(b) Movements in issued capital
Issued shares
Balance 1 January 2020
Entitlement Offer
Placement
Conversion of convertible notes (190,000)
Share Purchase Plan
Conversion of convertible notes (330,000)
Payment for Director fees with shares
Convertible Security repayment
Repayment of creditors with shares
Placement – acquisition of the JV for Yarara project
Placement
LRSOC Option Conversion
Placement – Integra
Shares issued to employees
Placement - acquisition of the Burdett project
Placement - S3 Consortium
Placement
Transaction costs
Balance 31 December 2020
2020
$
43,910
2020
$
2019
$
41,330
2019
$
56,467,554
48,218,621
Number
$
347,365,795
17,029,511
53,800,000
38,000,000
125,458,494
58,928,571
45,720,750
114,000,000
5,712,500
40,000,000
59,272,728
6,504,962
100,200,000
2,000,000
10,000,000
4,250,000
166,667,000
-
1,194,910,311
48,218,621
102,177
215,200
190,000
627,292
330,000
182,883
342,000
45,700
120,000
652,000
78,060
501,000
32,000
340,000
75,000
5,000,010
(584,389)
56,467,554
Balance 1 January 2019
2,888,670,639
45,902,186
Placement
Share Purchase Plan
Convertible Security repayment - January 20191
Convertible Security repayment - February 20191
Convertible Security repayment - March 20191
Convertible Security repayment - April 20191
Convertible Security repayment - May 20191
Convertible Security repayment - June 20191
Collateral shares2
Deferred rights conversion3
Share consolidation4
Placement
Acquisition - Electric Metals Pty Ltd
Cost of Broker options issues
Transaction costs
26,980,000
261,550,000
44,444,445
60,000,000
93,088,236
102,692,308
130,000,000
173,333,334
100,000,000
11,707,633
(3,736,767,467)
166,666,667
25,000,000
-
-
53,835
523,100
120,000
120,000
156,000
156,000
156,000
156,000
100,000
-
-
1,000,000
150,000
(203,809)
(170,691)
Balance 31 December 2019
347,365,795
48,218,621
1 Repayment of Convertible security Funding in shares at $120,000 per month for January – February 2019 and at
$156,000 for March – June 2019.
2 Collateral shares issued as security for additional drawdown under Convertible Security Funding Agreement
Latin Resources Limited (ABN 81 131 405 144)
50
NOTES TO THE FINANCIAL STATEMENTS
3 Vesting of incentive rights issued in accordance with Incentive Rights Plan approved by shareholders on 27 November
2017.
4 Share consolidation on 1:25 basis.
20. RESERVES
(a) Foreign currency translation reserve
Balance at beginning of year
Foreign currency translations
Balance at the end of the year
(b) Share based payments reserve
Balance at the beginning of year
Capital raising costs – issue of broker options
Loan establishment costs
Share based payments
Replacement option
Project acquisition
Borrowing cost
Balance at the end of the year
Total reserves
Nature and purpose of reserves
2020
$
5,899,762
(491,090)
5,408,672
2020
$
5,067,448
150,000
-
137,162
25,337
36,000
109,600
5,525,547
2019
$
5,227,684
672,078
5,899,762
2019
$
4,617,161
203,809
132,354
82,279
-
31,845
-
5,067,448
10,934,219
10,967,210
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial
statements of foreign subsidiaries.
Share based payments reserve
The share-based payments reserve is used to recognise the value of equity benefits provided to directors, employees and
other parties. Refer Note 22 for further details regarding share-based payments.
Options outstanding
(includes share-based payment options and non-share based payment options)
Balance at 1 January 2020
Issued during the year – quoted1,2,3,4,5,6,7,8,9
Issued during the year – unquoted
Options exercised
Balance at 31 December 2020
Number
of
options
Weighted average
exercise price
144,250,001
511,903,342
-
(6,504,962)
649,648,381
$0.018
$0.012
-
$0.012
$0.012
Consisting of:
Quoted options - exercisable at $0.012 per share expiring 31 December 2022
Exercisable at $0.012 per share expiring 31 December 2022 (subject to
voluntary escrow)
Unquoted options - exercisable at $0.0325 cents per share expiring 03 July 2023
exercisable at $0.1075 per share expiring 18 December 2022
534,781,714
100,200,000
8,000,000
6,666,667
Latin Resources Limited (ABN 81 131 405 144)
51
NOTES TO THE FINANCIAL STATEMENTS
1 8,514,744 free attaching LRSOC listed options were issued on a 1 for 2 basis in relation to the entitlement offer completed
in February 2020. 25,336,626 replacement LRSOC listed options were issued as per the Prospectus dated 9 December 2019.
2 125,458,494 and 53,800,000 free attaching LROC listed options were issued on a 1 for 1 basis in relation to the placement
and SPP completed in June and July 2020.
3 15,200,000 listed LRSOC options were issued on conversion of 190,000 convertible notes.
4 26,400,000 listed LRSOC options were issued on conversion of 330,000 convertible notes.
5 45,720,750 listed LRSOC options were issued to the directors as part of the settlement of their outstanding directors’ fee.
6 50,000,000 listed LRSOC options issued to Hartleys for introduction and facilitation services in relation to MEG transaction.
7 59,272,728 listed LRSOC options were issued on a 1 for 1 basis in relation to the placement completed in September 2020.
8 100,200,000 listed LRSOC options were issued on a 1 for 1 basis in relation to the placement completed to Integra Capital
in October 2020.
9 2,000,000 listed LRSOC options were issued as part of the acquisition of the Burdett project in December 2020.
SHARE BASED PAYMENTS RESERVE
The share-based payments reserve is used to recognise the value of equity benefits provided to directors, employees and
other parties. Refer Note 22 for further details regarding share-based payments.
21. ACCUMULATED LOSSES
Balance at the beginning of the year
Loss after income tax
Balance at the end of the year
22. SHARE BASED PAYMENTS
Expenses arising from share-based payment transactions to key management
personnel
Employee share benefits payments
2020
$
(59,922,655)
3,551,246
(56,371,409)
2019
$
(54,383,501)
(5,539,154)
(59,922,655)
2020
$
2019
$
153,162
82,279
Employee share-based payments benefits totalled $153,162 (2019: $82,279), of which the full amount (2019: $32,912)
was expensed during the year.
(a) Share rights
Incentive rights plan
The Incentive rights plan was approved by shareholders on 30 November 2012 for the purpose of attracting, motivating
and retaining key employees and providing them with the opportunity to participate in the future growth of the Group.
Under the plan the Group may offer share rights to eligible persons. Executive directors and full time and permanent part
time employees are eligible persons for the purposes of the Incentive rights plan.
Share rights issued under the Incentive rights plan comprise of retention rights being rights that vest and may be exercised
into Restricted Shares, based on completion of a period of service and performance rights, being rights that vest and may
be exercised into Restricted Shares, based on achievement of specified performance objectives.
The Board, based on the recommendation of the Remuneration Committee, in their absolute discretion determine the
number of share rights to be offered and any performance criteria that may apply. Offers made under the Incentive rights
plan must set out the number of share rights, the vesting conditions and the measurement period.
The retention and performance rights are issued for no consideration, however, the vesting of the benefits are conditional
on achieving specific measurable performance measures that are aligned with the Group’s strategic objectives.
Vesting of the share rights is measured over a three-year interval after the commencement of the respective
measurement period. At the end of the measurement period and subject to the performance measures and each share
right will convert into one ordinary share in the Company.
Latin Resources Limited (ABN 81 131 405 144)
52
NOTES TO THE FINANCIAL STATEMENTS
Where a director or employee ceases employment prior to their incentives vesting due to resignation or termination for
cause, incentives will be forfeited. Where a director or employee ceases employment for any other reason, they may at
the Board’s discretion, retain a number of unvested share rights on a pro-rata basis to reflect their period of service
during the measurement period. These unvested shares only vest subject to meeting the relevant performance measures.
Non-executive Director Deferred rights plan
The Deferred rights plan was approved by shareholders on 27 May 2014 for the purpose of retaining Non-executive
directors, controlling the cash cost of directors fees and aligning the interests of Non-executive directors with
shareholders and providing them with the opportunity to participate in the future growth of the Group.
Under the plan the Group may offer share rights to Non–executive directors of the Company. Share rights issued under
the Deferred rights plan comprise of retention rights being rights that vest and may be exercised into Restricted Shares,
based on completion of a period of service.
The Board based on the recommendation of the Remuneration Committee in their absolute discretion determine the
number of share rights to be offered and the criteria that may apply. Offers made under the Deferred rights plan must
set out the number of share rights, the vesting conditions and the measurement period.
The retention rights are issued for no consideration, however, the vesting of the benefits are conditional on achieving
certain measurable performance measures.
Vesting of the share rights is measured over a three-year interval after the commencement of the respective
measurement period. At the end of the measurement period and subject to the performance measures and the share
rights will convert into one ordinary share in the Company.
Where a non-executive director ceases employment prior to their incentives vesting due to resignation or termination
for cause, incentives will be forfeited. Where a non-executive director ceases employment for any other reason, they
may at the Board’s discretion, retain a number of unvested share options on a pro-rata basis to reflect their period of
service during the measurement period. These unvested shares only vest subject to meeting the relevant performance
measures.
Share rights outstanding
There were no share rights outstanding as at 31 December 2020 (2019: nil).
Shares issued as share based payments
Loan Funded shares
At the Annual General Meeting held 28 May 2018, shareholders approved the adoption of the Latin Resources Limited
Loan Funded Share Plan and also approved the issue of 100,000,000 loan funded shares to directors. The loan funded
shares are issued at 1.1 cents per share. The loans are interest free and with limited recourse to the participant and are
unquoted shares until the loan has been paid. The Plan requires the loan to be repaid before the participant can sell their
shares. As at 31 December 2019, after the 1:25 share consolidation, the balance of the loan funded shares to directors is
4,000,000.
Loan funded shares with market-based vesting conditions are also valued at the 10-day VWAP share price prior to the
grant date however a 20% discount is applied to the valuation to take into account the likelihood of meeting any market
based vesting conditions.
(b) Options
Valuation of Options to Brokers and Convertible Note Holder
2020
All listed LRSOC Options were valued at the grant date market price.
15,200,000 LRSOC Options issued to convertible note holder on conversion and were valued at $0.002 on the grant date.3
26,400,000 LRSOC Options issued to convertible note holder on conversion and were valued at $0.003 on the grant date.4
The Company issued free attaching 45,720,750 LRSOC Options to the Directors as part of the settlement of their
outstanding directors’ fees via the issue of ordinary shares.5
Latin Resources Limited (ABN 81 131 405 144)
53
NOTES TO THE FINANCIAL STATEMENTS
The Company issued 50,000,000 LRSOC Options to Euroz Hartleys for introductory and facilitation services in relation to
the Yarara project JV transaction. 6
The Company issued 2,000,000 LRSOC Options in relation to the acquisition of Burdett project from Syndicate Minerals Pty
Ltd.7
2019
No options were issued to key management personnel during the year 2019.
Before the 1:25 option consolidation 200,000,000 unquoted options were issued in June 2019 to the convertible loan
holder and valued using Black and Scholes valuation pricing model 1.
After the 1:25 option consolidation, 46,250,000 quoted options were issued in December 2019 to the placement
participants, broker and the vendor of Electric Metals Pty Ltd acquisition. The options were valued using Black and Scholes
valuation pricing model 2.
Where relevant, the expected life used in the model has been adjusted based on management’s best estimate for the
effects of non-transferability, exercise restrictions (including the probability of meeting market conditions attached to the
option), and behavioural considerations.
Input variables
Grant date share price
Exercise price
Expected volatility
Risk-free interest rate
Option life
Grant date
Expiry date
Fair value at grant date
Input variables
Grant date share price
Exercise price
Expected volatility
Risk-free interest rate
Option life
Grant date
Expiry date
Fair value at grant date
Input variables
Grant date share price
Exercise price
Expected volatility
Risk-free interest rate
Option life
Grant date
Expiry date
Fair value at grant date
31 Dec 20191
$0.009
$0.012
100%
0.71%
3 Years
11 Dec 2019
31 Dec 2022
$0.005095
31 Dec 20204
$0.0056
$0.012
-%
-%
2.5 Years
16 Jul 2020
31 Dec 2022
$0.003
31 Dec 20192
$0.0015
$0.0013
50%
1.14%
4 Years
3 July 2019
3 July 2023
$0.000662
31 Dec 20205
$0.004
$0.012
-%
-%
2.4 Years
13 Aug 2020
31 Dec 2022
$0.003
31 Dec 20203
$0.005
$0.012
-%
-%
2.5 Years
02 Jul 2020
31 Dec 2022
$0.002
31 Dec 20206
$0.004
$0.012
-%
-%
2.4 Years
13 Aug 2020
31 Dec 2022
$0.003
31 Dec 20207
$0.018
$0.012
-%
-%
2 Years
21 Dec 2020
31 Dec 2022
$0.018
Latin Resources Limited (ABN 81 131 405 144)
54
NOTES TO THE FINANCIAL STATEMENTS
23. RELATED PARTY DISCLOSURES
Information regarding individual directors’ and executives’ compensation and equity instrument disclosures are disclosed
in the Remuneration report.
(a) Compensation of directors and other key management personnel
Short term employee benefits
Post-employment benefits
Share based payments
(b) Transactions with related parties
2020
$
527,684
10,882
137,162
675,728
2019
$
620,944
4,545
82,279
707,768
Bowen Buchbinder Vilenksy, a legal firm associated with Mr Vilensky, charged fees totalling $16,600 excluding GST for the
year ended 31 December 2020 in relation to legal fees.
Oar Resource Limited, a listed company with Mr Gale and Mr Vilensky as Directors, was invoiced $86,837 excluding GST
for the shared administration services provided by Latin Resources’ facilities and staff during the year ended 31 December
2020.
(c) Subsidiaries
The consolidated financial statements include the financial statements of Latin Resources Limited and its subsidiaries which
are listed below.
Equity holding
Name of entity
Peruvian Latin Resources SAC (PLR)
Minera Dylan SAC (MD)
Mineracao Ferro Nordeste Ltda (MFN)
Recursos Latinos S.A.
Electric Metals Pty Ltd
Associated Company
Westminster Resources Limited
Country of incorporation
Peru
Peru
Brazil
Argentina
Australia
2020
%
100
100
100
100
100
2019
%
100
100
100
100
-
Canada
27.62
40.19
Peruvian Latin Resources Limited SAC (PLR) and Mineracao Ferro Nordeste Ltda (MFN) are effectively 100% owned by the
Company through 99.9% of shares held directly and 0.1% of shares are held in trust on behalf of the Company. Minera
Dylan SAC is 50% each owned by the Company and PLR.
The Company has advanced funds to Recursos Latinos S.A., PLR and MFN which at the date of this report do not attract
interest and are not subject to a repayment schedule.
(d) Ultimate parent company
Latin Resources Limited is the ultimate parent of the Group.
Latin Resources Limited (ABN 81 131 405 144)
55
NOTES TO THE FINANCIAL STATEMENTS
24. COMMITMENTS
Exploration Commitments:
Not later than one year
Later than one year but not later than five years
Later than five years
25. CONTINGENCIES
2020
$
264,000
642,000
-
906,000
2019
$
-
-
-
-
Noombenberry Halloysite Project and Big Grey Silver-Lead Project – Contingent Consideration Obligation
The Acquisition Agreement require the Group to pay the Vendor 16.5 million fully paid ordinary shares in Latin Resources
Ltd and 4.125 million options to subscribe for Shares, exercisable at $0.012, on or before 31 December 2022 on a successful
Kaolin/Halloysite JORC inferred resource of 3 million tonnes at 30% Ceramic Alumina (Al2O3) or greater.
26. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group also has transactional currency exposures from operating costs and concession payments that are denominated
in currencies other than the Australian dollar (AUD). The currencies in which these transactions are primarily denominated
are the United States dollar (USD).
The Board attempts to mitigate the effect of its foreign currency exposure by acquiring USD in accordance with budgeted
expenditures when the exchange rate is favourable. Where possible receipts of USD are maintained in a USD account as a
natural hedge. The USD are converted to AUD at prevailing rates as AUD funds are required.
As at 31 December 2020, the Group had the following exposure to USD that is not designated in cash flow hedges:
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Financial liabilities
Trade and other payables
Provisions
Deferred consideration1
2020
$
33,084
1,828,421
-
1,861,505
(1,163,739)
(7,618)
-
(1,171,357)
2019
$
32,221
2,174,585
-
2,206,806
(1,047,437)
(34,902)
(9,183,111)
(10,265,450)
Net exposure
690,148
(8,058,644)
1 As at 31 December 2020, the Group has no obligation to pay US$10.0 million (2019: US$10.0 million) in various instalments
by 1 January 2024. The liability was previously recognised in the Group’s subsidiary in Peru whose functional currency is
US dollars.
The following sensitivity analysis is based on the judgements by management of reasonably possible movements in foreign
exchange rates after consideration of the views of market commentators. The sensitivity is also based on foreign currency
risk exposures to financial asset and liability balances as at 31 December 2020.
The following tables demonstrate the sensitivity to a reasonably possible change in the AUD/USD exchange rate with all
other variables held constant.
The impact on the Group’s pre-tax profit is due to changes in the fair value of monetary assets and liabilities. The impact
on the Group’s equity is due to changes in the fair value of the deferred consideration.
The Group’s exposure for all other currencies is not material.
Latin Resources Limited (ABN 81 131 405 144)
56
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
AUD/USD +10%
AUD/USD -10%
31 December 2019
AUD/USD +10%
AUD/USD -10%
Effect on loss
before tax
$
69,015
(69,015)
Effect on equity
$
69,015
(69,015)
112,447
(112,447)
112,447
(112,447)
The movement in pre-tax profit is a result of changes to the fair value of monetary assets and liabilities denominated in
USD.
The deferred consideration liability was previously recognised in the Group’s subsidiary in Peru whose functional currency
is US dollars. Hence the sensitivity of deferred consideration is recognised in equity. The sensitivity is measured based on
the carrying amount of the liabilities rather than the contractual cash outflows up to 1 January 2024.
Apart from the above exposure to AUD/USD exchange rate, the Group also has an investment in listed securities listed on
the TSXV and denominated in Canadian dollars (CAD). At 31 December 2020 this investment was valued at $1,227,110 prior
to applying its share of loss from the TSXV listed company. A 10% movement in the AUD /CAD would result in the
investment carrying value increasing/decreasing by $122,711.
(a) Interest rate risk
Interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates.
The Group is exposed to interest rate risk on its cash and cash equivalent balances.
The Board constantly monitors its interest rate exposure and attempts to maximise interest income by using a mixture of
fixed and variable interest rates, whilst ensuring sufficient funds are available for the Group’s operating activities.
As at 31 December 2020 the Group had the following exposure to Australian variable interest rate risk.
The convertible security funding effective interest rate is determined on the uplift of 20% of drawn values and the
associated transactions costs, therefore the impact of prevailing market interest rate risk is minimal.
Financial assets
Cash and cash equivalents
Convertible Security Funding
2020
$
2019
$
4,499,867
700,760
900,000
2,535,755
Movement of 50 basis points on the interest rate (considered a reasonably possible change) would not have a material
impact on the consolidated loss or equity.
(b) Credit risk
Credit risk is the risk to the Group if a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss.
The Group’s maximum exposure to credit risk at the reporting date in relation to each class of recognised financial asset is
the carrying amount of those assets as indicated in the Consolidated Statement of Financial Position.
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents (refer Note 9(a)) and
trade and other receivables (refer Note 10(a) and (b)) and investment in associates (refer Note 12).
The Group only trades with recognised creditworthy third parties. The Group only invests in high credit quality financial
institutions with a credit rating of investment grade or better.
Latin Resources Limited (ABN 81 131 405 144)
57
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
Trade and other payables
Interest bearing liabilities
Deferred consideration
31 December 2019
Trade and other payables
Interest bearing liabilities
Deferred consideration
(c) Price risk
Less than
1 month
$
1,356,643
900,000
-
2,256,643
Less than
1 month
$
1,693,434
468,000
-
2,161,434
1-3
months
$
-
-
-
-
1-3
months
$
-
513,000
356,837
869,837
3-12
months
$
-
-
-
-
3-12
months
1-5
years
$
-
-
-
-
1-5
years
$
-
1,554,755
1,070,511
2,625,266
$
-
-
12,846,132
12,846,132
5+
years
$
-
-
-
-
5+
years
Total
$
1,356,643
900,000
-
2,256,643
Total
$
-
-
-
-
$
1,693,434
2,535,755
14,273,480
18,502,669
The Group is exposed to equity securities price risk. This arises from investments held and classified on the statement of
financial position as at fair value through profit or loss. The Group is not exposed to commodity price risk.
The Group’s equity investment is publicly traded on the Australian Securities Exchange (ASX).
A movement of 10% in the fair value of financial assets at fair value through profit and loss (considered a reasonably
possible change) on the Group’s post tax loss for the year and on equity would not have been material.
(d) Capital management
The Board is responsible for capital management of the Group. The Board’s objective is to ensure the entity continues as
a going concern as well as to maintain an optimal structure to reduce the cost of capital.
The Group is dependent from time to time on its ability to raise capital from the issue of new shares, obtain debt and its
ability to realise value from its existing assets. This involves the use of cashflow forecasts to determine future capital
management requirements.
Capital management is undertaken to ensure a secure, cost effective and flexible supply of funds is available to meet the
Group’s operating and capital expenditure requirements.
As at 31 December 2020 the Group is not subject to any external capital requirements.
27. EVENTS AFTER THE REPORTING PERIOD
On 01 February 2021, the Company announced that it has concluded the Convertible security funding agreement with
Lind Partners New York by paying the outstanding balance $ 900,000 on 7 January 2021 and issuing 20,000,000 unlisted
options exercisable at $0.03 on or before 01 December 2022 on 29 January 2021.
On 2 March 2021, Directors David Vilensky and Chris Gale have between them exercised a combined total of 16,826,848
LRSOC Options to acquire 16,826,848 fully paid ordinary shares for a total consideration of $201,922.
Latin Resources Limited (ABN 81 131 405 144)
58
NOTES TO THE FINANCIAL STATEMENTS
28. AUDITOR’S REMUNERATION
Amounts received or due and receivable by the auditor for:
An audit or review of the financial report of the consolidated group
Underprovision for prior year audit
Amounts received or due and receivable by related practices of the auditor for:
An audit or review of the financial report of the consolidated group
Other services in relation to the consolidated group
Amounts received or due and receivable by non-related practices of the auditor for:
An audit or review of the financial report of the consolidated group
29. PARENT ENTITY INFORMATION
2020
$
37,150
-
-
-
37,150
-
37,150
2020
$
2019
$
49,580
8,066
-
-
57,646
-
57,646
2019
$
(a) Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
(b) Financial performance
(Loss)/Profit of the parent entity
Total comprehensive profit/(loss) of the parent entity
Exploration Commitments:
Not later than one year
Later than one year but not later than five years
30.
IMPACT OF COVID-19
4,620,815
7,747,160
855,852
7,695,177
12,367,975
8,551,029
1,337,611
-
1,337,611
11,030,364
56,347,554
5,519,092
(50,836,282)
11,030,364
3,188,180
-
3,188,180
5,362,849
48,218,621
5,067,448
(47,923,220)
5,362,849
(2,199,464)
(2,199,464)
(4,654,564)
(4,654,564)
264,000
642,000
906,000
-
-
-
As previously disclosed, the Group has exploration projects in Latin America (Peru, Argentina and Brazil). The region has
been badly affected by COVID-19. The Group’s offices in Latin America are now closed and staff are working from home.
Despite this, the Group assessment has determined that there has been no significant impact on the performance or
financial position of the Group as at 31 December 2020, other than as disclosed in Note 31: Discontinued Operations
Latin Resources Limited (ABN 81 131 405 144)
59
NOTES TO THE FINANCIAL STATEMENTS
31. DISCONTINUED OPERATIONS
In 2011, the Group entered into an agreement to acquire the Guadalupito Project in Peru for US$20,035,000 to be paid in
instalment over 10 years. The acquisition was completed when it was ratified by shareholders on 11 August 2011. The
transaction has been recorded in the accounts based on the present value of the instalments.
In 2015, the Group signed a letter agreement with the Vendor of the Guadalupito Project where the purchase price is reduced
by US$7.219 million leaving a remaining payable amount of US$10 million. A new payment schedule has also been agreed
with the pending amount to be paid in 5 annual instalments beginning 6 months after the release to the market of a
favourable Definitive Feasibility Study (DFS) that the Company has a maximum of four years to achieve (no later than July
2019). In addition, 2 million ordinary shares to be issued to the Vendor on January 2016, 2017, 2018 and 2019 (Refer to Note
17: Deferred Consideration).
Subsequent to 30 June 2020, Latin's wholly owned subsidiary Peruvian Latin Resources S.A.C ("PLR") lawfully terminated the
Contract of Transference of Mining Rights ("Contract") relating to the Guadalupito Project. As a result of the termination of
the Contract ownership of the Mining Rights have reverted back to the Vendors and PLR was released from any obligation to
pay to the vendors any unpaid portion of the purchase price for the Mining Rights. There was no material cash flow
attributable to the discontinued operations with the gain of $4,723,080 being comprised of the net from the written off
exploration and evaluation assets and the extinguishment of deferred consideration liability that does not involved any cash
movement.
Assets and liabilities of discontinued operations
Assets
Exploration and Evaluation assets
Liabilities
Deferred Consideration liabilities
Net Assets
Results of discontinued operations
Unwinding of the effective interest rate1
Results from operating activities
Net Liability disposed
Results from operating activities after tax
Other comprehensive income from discontinued
operations
Exchange gain/loss from discontinued operations
Cash flows gained from/(used in) discontinued
operations
Net cash gained from operating activities
Net cash flow for the year
2020
$
2019
$
4,299,991
4,622,025
(10,754,313)
(6,454,322)
(9,183,111)
(4,561,086)
(1,731,242)
(1,731,242)
6,454,322
4,723,080
4,723,080
(1,181,633)
(1,181,633)
-
(1,181,633)
(1,181,633)
-
-
-
-
-
-
-
-
1 Unwinding of the effective interest rate refers to the discounting of the remaining cost of the concessions relating to the
Guadalupito project.
Latin Resources Limited (ABN 81 131 405 144)
60
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Latin Resources Limited, I state that:
1. In the opinion of the directors:
(a) The financial statements and notes of Latin Resources Limited for the financial year ended 31 December 2020 are in
accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2020 and of
its performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001;
(b)
(c)
the financial statements and notes also comply with International Financial Reporting Standards, as stated in note
2(b); and
there are reasonable grounds to believe that the Company 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 executive
director and chief financial officer in accordance with section 295A of the Corporations Act 2001 for the financial
year ended 31 December 2020.
On behalf of the Directors
David Vilensky
Chairman
Signed on 31 March 2020
Latin Resources Limited (ABN 81 131 405 144)
61
AUDITORS’ INDEPENDENCE DECLARATION
Latin Resources Limited (ABN 81 131 405 144)
62
INDEPENDENT AUDITOR’S REPORT
Latin Resources Limited (ABN 81 131 405 144)
63
INDEPENDENT AUDITOR’S REPORT
Latin Resources Limited (ABN 81 131 405 144)
64
INDEPENDENT AUDITOR’S REPORT
Latin Resources Limited (ABN 81 131 405 144)
65
INDEPENDENT AUDITOR’S REPORT
Latin Resources Limited (ABN 81 131 405 144)
66
INDEPENDENT AUDITOR’S REPORT
Latin Resources Limited (ABN 81 131 405 144)
67
ASX ADDITIONAL INFORMATION
Additional information required by the ASX Limited Listing Rules not disclosed elsewhere in this Annual Report is set
out below. The information was applicable as at 25 March 2021.
Class of equity securities and voting rights
SHARES
There were 1,322,691,080 ordinary fully paid shares on issue. All issued ordinary shares carry one vote per share.
There were also 4,000,000 unquoted ordinary loan funded shares on issue.
SHARE RIGHTS
There were 22,019,104 share rights on issue.
OPTION
The Company has the following classes of options on issue as at 25 March 2021 as detailed below. Options do not carry
any rights to vote.
Code
LRSOC
Class
Terms
Listed
Unlisted
Unlisted
Unlisted
Unlisted
Exercisable at $0.012 each and expiring on 31 December 2022
Exercisable at $0.1075 each and expiring on 18 December 2022
Exercisable at $0.0325 each and expiring on 3 July 2023
Exercisable at $0.03 each and expiring on 1 December 2022
Exercisable at $0.03 each and expiring on 12 February 2024
Number
526,863,683
6,666,667
8,000,000
20,000,000
25,000,000
VOTING RIGHTS
In accordance with the Company’s Constitution:
on a show of hands every shareholder present in person or by proxy, attorney or representative of a shareholder has one
vote and
on a poll every shareholder present in person or by proxy, attorney or representative of a shareholder has in respect of
fully paid shares, one vote for every share held. No class of option holder has a right to vote, however the shares issued
upon exercise of options will rank parri passu with the then existing issued fully paid ordinary shares.
Distribution of equity securities
THE NUMBER OF EQUITY HOLDERS BY SIZE AND HOLDING, IN EACH CLASS ARE:
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Ordinary shares
(listed)
364
933
1,582
5,041
1,720
9,640
Share rights
(unlisted)
-
-
-
-
3
3
Loan funded
shares
(unquoted)
-
-
-
-
3
3
Options
(listed)
22
30
27
313
472
864
Options
(unlisted)
-
-
-
-
2
2
HOLDING LESS THAN A MARKETABLE PARCEL
2,973
-
-
105
-
RESTRICTED SECURITIES
105,200,000 fully paid ordinary shares are subject to voluntary escrow. Other than this, the Company has no Restricted
Securities on issue.
Substantial shareholders
The substantial shareholders in the Company, as disclosed in substantial shareholding notices given to the company
are:
Latin Resources Limited (ABN 81 131 405 144)
68
ASX ADDITIONAL INFORMATION
Shareholder
MR JOSE LUIS MANZANO
Twenty largest holders of quoted shares
Rank
Shareholder
No. of Shares Held
100,200,000
% Held
7.58
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13
14.
15.
16.
17.
18.
19.
20.
Total
MR JOSE LUIS MANZANO
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
CHRIS GALE + STEPHANIE GALE
UNRANDOM PTY LTD
COILENS CORPORATIONS PTY LTD
MR WILLIAM SCOTT ALDERS
TWO TOPS PTY LTD
ZENIX NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
AQUILINE NOMINEES PTY LTD
MOONAH CAPITAL PTY LTD
COMMSEC NOMINEES PTY LTD
MR PATRICK PANCUR
MR VINCENZO BRIZZI + MRS RITA LUCIA BRIZZI
MR PAUL NAGLE
MR DENNIS GRAHAM HULSE
MR ANTHONY POLONI
SYNDICATE MINERALS PTY LTD
TANGO88 PTY LTD
Twenty largest holders of quoted options
Rank
Shareholder
MR JOSE LUIS MANZANO
UNRANDOM PTY LTD
MR RITCHIE JAY CAMPBELL
MRS JIEYA ZHU
MR PAUL NAGLE
AHM NSW PTY LTD
CITICORP NOMINEES PTY LIMITED
MR DRAGOSLAV JEVTIC + MRS NICOLE JEVTIC
JSML PTY LTD
MR BENJAMIN LUONG HUYNH
SHANE FERNANDO HOLDINGS PTY LTD
MR DAVID WAYNE AUSTIN + MRS CHRISTINA YIT LING AUSTIN
MR PHILIP UMBERTO RE
GOVINDA FREEDOM FUND PTY LTD
EQUITY TRUSTEES SUPERANNUATION LIMITED
LIND GLOBAL MACRO FUND LP
MR STEPHEN SHERRIN
MR GARETH JOHN EDWARDS
QUIETEK INTERNATIONAL PTY LTD
MR NING HAN + DR MIN RU QIU
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Total
No. of Shares
Held
100,200,000
90,843,980
42,446,434
21,398,527
18,861,376
15,848,259
14,107,558
13,000,000
8,500,000
8,278,796
7,600,000
7,509,814
7,286,762
6,509,434
6,270,556
6,000,000
5,000,000
5,000,000
5,000,000
5,000,000
394,661,496
% Held
7.58
6.87
3.21
1.62
1.43
1.20
1.07
0.98
0.64
0.63
0.57
0.57
0.55
0.49
0.47
0.45
0.38
0.38
0.38
0.38
29.84
No. of Options
Held
100,200,000
20,833,250
9,512,315
8,500,000
8,000,000
7,985,034
7,887,934
6,700,000
6,000,000
5,635,435
5,548,214
% Held
19.02
3.95
1.81
1.61
1.52
1.52
1.50
1.27
1.14
1.07
1.05
5,500,000
1.04
5,350,000
5,000,000
4,806,348
4,545,455
4,500,000
4,450,000
4,200,000
4,147,000
229,300,985
1.02
0.95
0.91
0.86
0.85
0.84
0.80
0.79
43.52
Latin Resources Limited (ABN 81 131 405 144)
69
TENEMENT SCHEDULE
PERU
LATIN ILO ESTE I 1
LATIN ILO ESTE II 1
LATIN ILO ESTE III 1
LATIN ILO ESTE IX 1
LATIN ILO NORTE 3 1
LATIN ILO NORTE 4 1
LATIN ILO NORTE 6 1
BRIDGETTE 1 1
ESSENDON 26 1
LATIN ILO NORTE 7 1
LATIN ILO NORTE 8 1
MADDISON 1 1
KELLY 00 1
DOCKERS 1
DOCKERS 2
DOCKERS 3
DOCKERS 4
FREMANTLE 7
LATIN MORRITO 1
LATIN MORRITO 2
VANDALS 1
VANDALS 2
01-05005-08
01-05003-08
01-05001-08
01-01952-14
01-00830-09
01-00831-09
01-02511-09
01-01844-11
01-01849-11
01-02512-09
01-02513-09
01-01845-11
01-01840-11
01-01865-11
01-01866-11
01-01867-11
01-01868-11
01-02068-10
01-02827-09
01-02828-09
01-02437-10
01-02438-10
BRAZIL
MINAS GERAIS LITHIUM
830578/2019
MINAS GERAIS LITHIUM
830579/2019
MINAS GERAIS LITHIUM
830580/2019
MINAS GERAIS LITHIUM
830581/2019
MINAS GERAIS LITHIUM
830582/2019
AUSTRALIA
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
MOUNT CRAMPHORNE2
BIG GREY
MANILDRA2
BURDETT2
YARARA3
E77/2622
E77/2624
E77/2725
E77/2724
E70/5650
E70/5649
E77/2719
E45/5246
ELA6145
ELA6024
EL8958
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Brazil
Brazil
Brazil
Brazil
Brazil
WA
WA
WA
WA
WA
WA
WA
WA
NSW
NSW
NSW
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
27.62%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
Concession
NOTES
1 Indirect interest via 27.62% shareholding in Westminster Resources Ltd
2 Tenement in application
3 Binding Farm-in Agreement with Mining and Energy Group Pty Ltd
Latin Resources Limited (ABN 81 131 405 144)
70
TENEMENT SCHEDULE
ARGENTINA
Catamarca
LATINA 1
LATINA 2
LATINA 3
LATINA 4
LATINA 5
LATINA 6
LATINA 7
LATINA 8
LATINA 9
LATINA 10
LATINA 11
LATINA 12
LATINA 13
LATINA 14
LATINA 15
LATINA 16
LATINA 17
LATINA 18
LATINA 19
LATINA 20
LATINA 21
LATINA 22
San Luis
1/18
3/18
5/18
6/18
4/18
2/18
13/18
14/18
12/18
11/18
10/18
9/18
8/18
7/18
163/18
207/18
208/18
209/18
210/18
211/18
212/18
213/18
PORTEZUELO
ESTANZUELA
LA META
TILISARAO
BAJO DE VELIZ
DE GEMINIS
MARIA DEL HUERTO
65-C-2016
64-C-2016
63-C-2016
66-C-2016
76-C-2016
84-C-2016
85-C-2016
MARIA DEL HUERTO
134-Q-1936
ESTANZUELA SUR
LOS MEMBRILLOS
QUINES SUR
64-R-2017
65-R-2017
66-R-2017
PASO GRANDE NORTE
67-R-2017
SOLITARIO
TRAPICHE NORTE
ESTANZUELA NORTE
QUINES
LA TOMA NORTE
QUINES ESTE
PASO GRANDE SUR
TRAPICHE SUR
LA TOMA SUR
68-R-2017
69-R-2017
70-R-2017
71-R-2017
72-R-2017
72-R-2017
1-R-2018
2-R-2018
3-R-2018
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
Argentina
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%
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Mining Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Exploration Concession
Latin Resources Limited (ABN 81 131 405 144)
71