2021 Annual ReportFor year ending 31 December 2021 ASX:LRS latinresources.com.au
2
01. Chairman’s Letter
02. Review of Operations
03. Director’s Report
04. Consolidated Statement
of Profit or Loss and other
comprehensive Income
05. Consolidated Statement
of Financial Position
06. Consolidated Statement
of Changes in Equity
07. Consolidated Statement
of Cash Flows
08. Notes to the Financial Statements
09. Director’s Declaration
10. Auditor’s Independence Declaration
11.
Independent Auditor’s Report
12. ASX Additional Information
13. Tenement Schedule
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08
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30
36
37
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39
68
69
70
76
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ContentsLatin Resources
2021 Annual Report
3
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth 6000, Western Australia
Telephone: 1300 787 272
Facsimile: (+61) (8) 9323 2033
SOLICITORS
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street, Perth 6000, Western Australia
Western Australia
STOCK EXCHANGE
Australian Securities Exchange (ASX)
Code: 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 6008, Western Australia
DIRECTORS
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 6007, Western Australia
Telephone: +61 8 6117 4798
Email: info@latinresources.com.au
PERU OFFICE
Calle Cura Bejar 190.
Oficina 303, San Isidro
Lima, Peru
Teléfono: +51 1 421 2009
ARGENTINA OFFICE
Maipú 1210 Piso 8 (C1006ACT) CABA,
Buenos Aires, Argentina
Teléfono: +54 11 4872 8142
BRAZIL OFFICE
Machado Gobbo Advogados
SHIS QI 9 Conjunto 17 Casa 16
Lago Sul, Brasília-DF, 71.625-170
Teléfono: +55 (61) 3321-0074
Corporate Directory
4
Dear Shareholders
The 2021 financial year has been one of significant progress and excitement for Latin
Resources Limited (“Company”) despite the COVID-19 pandemic continuing to disrupt
the business world in key areas such as travel, recruitment of new employees and
restrictions on face to face meetings.
Undoubtedly, a highlight for the Company during the
year in question was the share price reaching 10 cents
in February 2021 which gave the Company a market
capitalisation of more than $100m for the first time
in its history. It created a lot of wealth for many new
and existing shareholders and proved to the market
what the Company is capable of. It also resulted in a
substantial number of ‘in the money’ options being
exercised which brought fresh capital into the
Company of $2,278,357.
The significance of this milestone for the Company is
that in past Chairman’s letters a common theme has
been to emphasise the importance that the Board of
the Company places on rewarding shareholders and
enhancing shareholder value. These objectives have
not always been fulfilled for a variety of factors many
of which have been beyond the control the Company.
What the Company strives for is success and it is this
success which is inevitably the driver of an improved
share price and market capitalisation.
In my last Chairman’s letter dated 22 July 2020 I
made mention of transformational projects that
have come about as a result of the strategic focus of
the Company to identify and explore potential value
accretive mineral projects. I am excited about two
projects in particular which have become the current
focus of the Company.
“
I am excited about two
projects in particular which
have become the current
focus of the Company.
Chairman’s Letter01Latin Resources
5
1. SALINAS LITHIUM PROJECT
IN BRAZIL
It is not in dispute that Brazil is the world’s eighth
largest economy and is Latin America’s largest and
most pro-mining jurisdiction. Minas Gerais is also
known for its superior mining infrastructure and
services.
As far back as August 2019 the Company identified
the Minas Gerais Province in Brazil as being vastly
underexplored for world class lithium spodumene
deposits. To that end, the Company developed a
strategy to build a significant lithium footprint in the
district with the focus given to tenements secured by
the Company in the Bananal Valley area of its Salinas
Lithium Project in Minas Gerais where pegmatites
containing spodumene were identified during field
work and mapping confirming the projects high
prospectivity for lithium. As part of that strategy,
preliminary drill sites were selected, finalised and
permits for drill targets were obtained. Unfortunately
with the Covid pandemic hitting Brazil exceptionally
hard, the work was delayed for over 18 months.
Once the exploration team was back on site in 2021
and building on the extensive sampling and mapping
undertaken by the Company during 2021, as was
announced by the Company to ASX on 16 February
2022 and again on 3 March 2022, drilling results at
the Company’s 100% wholly owned Salinas Lithium
Project, located in the north east of Minas Gerais,
confirmed the continuity and thickening of lithium
spodumene pegmatites along strike. In summary, the
Company’s drilling program now underway continues
to intersect three separate spodumene pegmatites.
Importantly, these pegmatites are increasing in
thickness. The Company is excited by the early signs
from its greenfield lithium discovery at its Salinas
Lithium Project.
The Salinas Lithium Project certainly falls within the
category of a transformative project and so far the
results speak for themselves. We believe there are
exciting times ahead for the Company in relation to
this project alone. This is especially the case given
the buoyancy of the global lithium sector and the
increasing demands for supply of this resource.
2021 Annual Report
6
Latin Resources
2. CLOUD NINE (NOOMBENBERRY)
HALLOYSITE-KAOLIN DEPOSIT IN WA
The Company acquired the Noombenberry (now
known as Cloud Nine) Halloysite-Kaolin Deposit
located approximately 350 kilometres east of Perth
in late 2019. Since securing the project the Company
carried out significant field work including soil
sampling assays by an independent UK based
kaolin and halloysite specialist.
The results presented by the independent expert
confirmed the prospectivity of the project and gave
the Company the confidence to further explore the
project via a deeper and expanded drill program.
The Company then commenced an intensive two
phase aircore vertical drilling program involving a
total of 4,431 meters of drilling.
On 31 May 2021 the Company announced to the ASX
its maiden Inferred (JORC 2012) Mineral Resource
estimate prepared by independent consultancy RSC
Global Pty Ltd. As announced, Cloud Nine has the
potential to become the single largest undeveloped
kaolin-halloysite deposit in Australia with substantial
potential growth with the mineralisation open in all
directions. Its large scale places Cloud Nine as a
globally significant halloysite project with exceptional
growth potential.
A global inferred mineral resource of 207 million
tonnes of kaolinised granite has been estimated
comprising 123 million tonnes of bright white kaolin
bearing material and 84 million tonnes of kaolin/
halloysite bearing material. The JORC resource
was developed within 18 months during the Covid
pandemic, a credit to our exploration team who
worked through very difficult conditions.
In August 2021 the Company announced to the ASX
the completion of the Cloud Nine infill and step-out
drilling program involving a total of 359 new aircore
drillholes for 9,640 meters to extend the resource a
further 4 kilometres to the north, the commencement
of detailed metallurgical test work and the
commencement of a scoping study to determine
the best pathway to production.
The Cloud Nine project has put the Company on
the map in the emerging kaolin-halloysite sector
and provides the best opportunity to transform the
Company from explorer to producer within a relatively
brief period. Drilling is continuing with the dual focus
of both uplifting the current resource to indicated
or measured status, and to further increase the
resource. Cloud Nine is a world class deposit situated
close to major road and rail infrastructure with the
potential for shallow open-pit mining.
As pointed out, it has provided the Company
with an outstanding opportunity to push towards
development and has added enormous value to
the Company.
The Company is fast tracking the deposit through
to development and is already in discussions with
potential offtake partners. All of these milestones are
significant achievements for the Company and augur
well for its future success.
On 23 September 2021 the Company was pleased
to announce that it had adopted the Environmental,
Social and Governance (ESG) framework with a
purpose statement “Developing minerals to provide
the world with environmentally sustainable products”.
This committed the Company to complying with the
applicable laws and regulations including the 21
core metrics and disclosures created by the World
Economic Forum.
Further enhancing its ESG credentials, the Company
secured a collaborative research agreement with
CRC CARE Pty Ltd, a company associated with the
University of Newcastle, to fund over a three year
period the research and development of innovative
methane reduction technologies to exploit the
halloysite from the Company’s 100% owned Cloud
Nine project. The funding is linked to a series of
agreed milestone deliverables with the research
results and intellectual property rights associated
with and derived from the research results being
owned 100% by the Company.
A further milestone for the Company was the listing
on the ASX on 24 December 2021 of copper focused
Solis Minerals Ltd. in which the Company is the
largest shareholder with a 13.14% stake valued at
$1.6 million as at 31 December 2021 plus one seat
on the Solis board.
With investments and cash in the bank of more than
$4 million the Company is currently well funded
enabling it to focus its attention on continued
exploration at Cloud Nine and in Brazil. There is
renewed interest in the Company as we embark on the
next transformational period. Over the coming weeks
and months there will be encouraging news to report
on these projects and activities which we hope will
further change the fortunes of the Company and bring
joy to our loyal shareholders.
7
“
Cloud Nine’s large
scale places as a globally
significant halloysite
project with exceptional
growth potential.
The Company has been fortunate to be lead through
the period the subject of this annual report by an
exceptional management team headed by our
hardworking Managing Director Chris Gale and our
Exploration Manager Tony Greenaway who is a very
experienced geologist with a long history within the
resources industry.
I would like to thank our shareholders for your
continued support and belief in the Company to
achieve the strategic goals it has set out. The Board
remains focused on delivering on these strategic
goals and providing our shareholders with long term
growth. I believe the year ahead will demonstrate just
what the Company is capable of accomplishing.
I also thank our management and exploration team,
our staff and our external consultants and drilling
contractors for their efforts during 2021 and 2022,
a period in which the Company has continued to
face disruption and uncertainty due to the COVID-19
pandemic and its associated restrictions which from
time to time have made our operations challenging.
I also take this opportunity to thank and note my
appreciation of the collective efforts and wisdom
of my fellow Board members.
I look forward to keeping you updated on our
progress of what is shaping up to be another
very exciting year ahead.
Yours sincerely,
David Vilensky
Chairman
2021 Annual Report
8
Review of Operations02Latin Resources
2021 Annual Report
9
Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”)
is an Australian-based mineral exploration company, with projects in
Australia and South America, that is developing mineral projects in
commodities that progress global efforts towards Net Zero emissions.
Post the end of the reporting period, the Company
commenced a 14-hole, 2,000m diamond drilling
program at the Salinas Lithium Project. Six diamond
drill holes have been completed on four sections
covering 500m of strike, with all holes intersecting
multiple spodumene bearing pegmatites. Logging has
confirmed that the individual pegmatites range in true
thickness to a maximum of 21.1m1, with a cumulative
intersection of over 36m in hole SADD0042. Initial
assay results from holes SADD001 and SADD002 are
anticipated in the next few weeks.
“
Latin considers these results,
including two adjacent samples
returning grades of 2.71% Li2O
and 1.45% Li2O respectively,
to represent an extremely high
priority area for the Company.
1. OPERATIONS
1.1. SALINAS LITHIUM PROJECT, BRAZIL
The Salinas Lithium Project is located in the highly
prospective Jequitinhonha Valley district of Minas
Gerais Provence of eastern Brazil. Minas Gerais hosts
the Eastern Brazilian lithium pegmatite province,
home to TSX-V listed Sigma Lithium Corporation and
lithium producer Companhia Brasileira de Lítio (CBL).
The Company was previously restricted in accessing
the Salinas Project due to Covid-19 travel restrictions,
however after re-signing option agreements for
project extensions, the Company managed to get
on the ground in September, undertaking initial
reconnaissance mapping and sampling.
Initial reconnaissance mapping completed over
the tenement confirmed the presence of a series
of parallel spodumene bearing pegmatites over
a strike of greater than one kilometre. A series of
outcrop samples were collected and submitted
to the laboratory for analysis.
Results confirmed that the mapped pegmatites
contain lithium bearing spodumene with one sample
returning a grade of 2.71% Li2O from highly weathered
outcrop, and several others returning anomalous
lithium grades.
These initial results represent a significant anomaly
in an area of highly weathered outcrop. Lithium, being
a highly volatile element is rapidly leached when
exposed, therefore lowering Li grades in weathered
material. As such, visual identification of remnant
spodumene in outcrop, which is often pseudo-
morphed by micaceous minerals containing no
lithium, is highly encouraging in itself.
Latin considers these results, including two adjacent
samples returning grades of 2.71% Li2O and 1.45%
Li2O respectively, to represent an extremely high
priority area for the Company.
1. Refer to ASX Announcement dated 16 March 2022
10
Latin Resources
Figure 1: Salinas Lithium Project location map
Figure 2: Bananal Valley Project – Latin Resources Senior Geologist with spodumene rich pegmatite core, and core logging on site
2021 Annual Report
11
Figure 3: Bananal Valley Project – completed drill collars and planned Phase I and Phase II drill sites and spodumene
sampling results
Figure 4: Oblique drill section B – B’ SADD004 showing a significant thickening of the pegmatites along strike and down dip2
2. Refer to ASX Announcement dated 16 March 2022
12
Latin Resources
Figure 5: Cloud Nine tenure and location map
“
The Cloud Nine project has put the
Company on the map in the emerging
kaolin-halloysite sector and provides
the best opportunity to transform the
Company from explorer to producer
within a relatively brief period.
13
1.2. CLOUD NINE HALLOYSITE-K AOLIN DEPOSIT
– MERREDIN, WESTERN AUSTRALIA
The Company’s 100%-owned Cloud Nine Halloysite-
Kaolin Deposit (“Cloud Nine”) is located east-
southeast of Merredin, Western Australia.
Following the discovery of the Cloud Nine Halloysite-
Kaolin Deposit in 2020, the Company significantly
advanced the deposit during the reporting period.
At the start of the period, the Company completed
multiple drilling campaigns including first pass 400m
x 400m Phase I, and 200m x 200m infill drilling.
A total of 197 holes were drilled for 4,431 metres,
with 747 composite samples delivered to the
laboratory for analysis.
The analysis has confirmed the presence of a
consistent flat-lying blanket of ultra-bright white
kaolinite across the area tested, containing
high-grade halloysite mineralisation.
“
The Company significantly
advanced the deposit
during the reporting period.
Best results included:
• NBAC017: 18m @ 13% halloysite, 68% Kaolinite,
79 ISO-B from 2m3
•
Incl. 8m @ 20% halloysite, 68% Kaolinite,
81 ISO-B from 2m
• NBAC015: 32m @ 12% halloysite, 76% Kaolinite,
81 ISO-B from 13m3
•
Incl. 13m @ 29% halloysite, 46% Kaolinite,
79 ISO-B from 32m
• NBAC119: 26m @ 24% halloysite, 57% Kaolinite,
80 ISO-B from 8m4
•
Incl. 8m @ 35% halloysite, 61% Kaolinite,
80 ISO-B from 8m
• NBAC081: 41m @ 12% halloysite, 72% Kaolinite,
81 ISO-B from 6m4
•
Incl. 12m @ 24% halloysite, 52% Kaolinite,
82 ISO-B from 22m
• NBA159: 23m @ 13% halloysite, 73% Kaolinite,
80 ISO-B from 11m5
•
Incl. 12m @ 22% halloysite, 71% Kaolinite,
82 ISO-B from 11m and 4m @ 44% halloysite,
45% Kaolinite, 84 ISO-B from 19m
• NBAC161: 3m @ 19% halloysite, 70% kaolinite,
79 ISO-B from 11m5
•
Incl. 8m @ 31% halloysite, 63% Kaolinite,
82 ISO-B from 17m
Figure 6: Air-core infill drilling at the
Cloud Nine Deposit, Merredin WA
3. Refer to ASX Announcement dated 24 February 2021
4. Refer to ASX Announcement dated 8 April 2021
5. Refer to ASX Announcement dated 28 April 2021
2021 Annual Report
14
Latin Resources
In May, the Company announced a maiden Mineral
Resource estimate for Cloud Nine, completed by
independent consultancy RSC Global Pty Ltd (“RSC”).
A global Inferred Mineral Resource of 207 million
tonnes6 of kaolinised granite was estimated (Figure
3), comprising two separate domains:
• 123 million tonnes of bright
white kaolin-bearing material; and
• 84 million tonnes of
kaolin/halloysite-bearing material.
The halloysite sub-domain yields 50Mt grading 6%
halloysite using 1% halloysite cut-off, or 27Mt grading
8% halloysite using a 5% halloysite cut-off within the
minus 45-micron (45 µm) subfraction. The large-
scale of the Mineral Resource places Cloud Nine
as a globally significant halloysite project, and with
exceptional growth potential remaining, given the
deposit is open in all directions.
As part of the focused advancement of Cloud Nine,
the Company completed a series of close spaced
aircore drillholes at 50 metre centres as part of a
wider infill and extension drilling campaign.
The close-spaced holes, completed along a 1km
north-south line and a 1km east west line, were aimed
at providing sufficient data to assess the variability of
an area of ultra-bright white kaolinite and high-grade
halloysite.
Results from this work has confirmed that both the
thickness and brightness of the kaolinised granite
is extremely consistent within the area tested.
A near surface blanket, up to 28 metres thick,
of ultrabright (>80 ISO-B), has been defined over
an area approaching one square kilometre.
These exceptional results give the Company
confidence to commence fast tracking of mining and
other related studies, focused on an initial simple
Direct Shipping Ore (“DSO”) operation for the ultra-
bright white kaolinite material. These studies will
include detailed metallurgical testwork, which is
currently underway, mine design and scheduling,
environmental and other approvals, shipping and
logistics, capex-opex modelling, and project execution
plans along with other related work streams.
“
It has provided the Company
with an outstanding opportunity
to push towards development
and has added enormous
value to the Company.
Figure 7: Cloud Nine Deposit, Merredin WA
– showing air core drill collar locations over the Resource
estimate block model coloured by kaolin brightness
6. Refer to ASX Announcement dated 31 May 2021
2021 Annual Report
15
exposure of Latin over the three-year period in terms
of the funding of the research projects with payments
staggered over the three-year period linked to a series
of agreed milestone deliverables. Latin has the right
to cease funding either or both research projects at
any time in the absence of the key deliverables.
The research projects to be undertaken by CRC CARE
are designed to develop applications that are superior
to those of other natural materials including:
• Microbial intervention: use of halloysite in feed
supplement formulation to influence methane
producing rumen microbes.
• Nutrient and methane adsorption in the
cattle industry: real-time capture and desorption
of animal gas emissions for energy conversion as
well as capturing nutrients from animal excreta.
• Carbon capture: adsorption at various pressures
(industrial uses) and conversion of the captured
carbon into fuel or the whole adsorbent into
value-added material such as building material
or fertiliser.
• Low-cost precise purification of halloysite
nanotubes (“HNT”): from variants of halloysite
and kaolinite mixtures (pure HNT can generate
double the revenue of HNT/kaolinite mixes).
“
In November, the Company
executed a binding agreement
with world renowned CRC CARE
to research and develop emission
reduction technologies.
1.2.1. METALLURGICAL TESTWORK PROGRAM
As a part of the Mineral Resource infill drilling
program, the Company collected two separate
metallurgical bulk samples for preliminary testwork.
Specialist consultants, working with Nagrom
Metallurgical Laboratories in Perth, are well advanced
on this work, which is aimed at determining the
most suitable unit operations to extract an on-grade
kaolin/halloysite concentrate. Early results from
size by assay and attritioning tests have shown that
a significantly improved yield can be achieved in
the fine fractions, with work now optimising the unit
operations to further increase the recovery of the
kaolin/halloysite concentrate.
The final process flowsheet will provide detailed
mineralogical and metallurgical inputs for PFS and
potential DSO product.
1.2.2. ALTERNATE ANALYSIS
PATHWAY DEVELOPMENT
The Company experienced significant delays in the
return of assay results. In order to combat this and
de-bottleneck the analytical workflow, the Company
worked with Cloud Nine resource consultants, RSC
Global Pty Ltd (“RSC”), to develop an alternate
analysis pathway to the current X-Ray Diffraction
(“XRD”) methodology.
This work, which involves a combination of Fourier
Transform Infra-Red (“FTIR”) spectral analysis and
Machine Learning (“ML”), will potentially enable
more rapid quantification of kaolinite and particularly
halloysite abundances.
1.2.3. CRC CARE HALLOYSITE R&D PROJECT
In November, the Company executed a binding
agreement with world renowned CRC CARE Pty Ltd
(“CRC CARE”) to research and develop emission
reduction technologies, utilising the Company’s
halloysite mineral from the Cloud Nine deposit in WA.
CRC CARE is an independent organisation that
works with end users to perform research, develop
technologies and provide policy guidance for
assessing, cleaning up and preventing contamination
of soil, water and air. Previous collaborators include
BHP, Rio Tinto and the Australian Department of
Defence. CRC CARE scientists have extensive
experience in clay research, leading to environmental
products with commercial applications.
Under the agreement reached with CRC CARE,
complementary to its current activities that include
exploration for halloysite at its 100% owned Cloud
Nine deposit in WA, Latin will fund two key research
projects running in parallel to the extent of $3.2m
over a three-year period. The $3.2m is the maximum
16
Latin Resources
Figure 8: Proposed CRC CARE research projects
2021 Annual Report
17
Figure 9: Soil Sampling at the Peep O’Day Gold Prospect, Yarara Project NSW
Figure 10: Peep O’Day Gold Prospect showing rock chip sample location and gold grades7
7. Refer to ASX Announcement dated 24 June 2021
18
Latin Resources
1.2.4. CLOUD NINE - NEXT STEPS
1.4. MT-03 COPPER PROJECT – PERU
The exceptional results to date at Cloud Nine have
provided the Company confidence to commence
fast tracking of mining and other related studies,
focused on an initial simple Direct Shipping Ore (DSO)
operation for the ultrabright white kaolinite material.
The Company is progressing initial desktop scoping
studies, including detailed metallurgical test
work, updating of the geological model and other
preliminary studies.
The objective of the studies is to consider
the opportunity for a capital light approach to
development through mining and selling an initial
DSO product, while the Company continues more
detailed studies and metallurgical test work to assess
opportunities associated with a more processed and
potentially higher value kaolin product.
It is anticipated that this work will lead to an upgrade
of the Maiden JORC Inferred Mineral Resource
estimate, once all results from the infill drilling have
been received. It is expected that this will result in
an increase in the JORC classification to Indicated
status, with the potential to bring some areas into the
measured status.
Other site works proposed for 2022 include additional
geotechnical drilling, bulk sampling for additional
metallurgical test work and the production potential
offtake product samples, baseline environmental
studies and preliminary mine design and costings.
1.3. 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.
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.
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.
No field work was undertaken during the reporting
period due to increased exposure of Covid in 2021,
however the Company is finalising plans for field work
to commence in the second quarter of 2022.
On-ground activities on the MT-03 Copper Project
continued to be delayed because of Covid-19
lockdown restrictions in Peru.
A detailed ground magnetic survey has been
completed over the MT-03 anomaly to assist in the
targeting of the planned maiden drill testing of the
initial anomaly. SGS Perth completed the modelling
of the data and have advised of recommended drill
testing of the magnetic anomaly.
Drill permitting has commenced with exploration
drilling to commence in the June quarter 2022.
1.5. OTHER PROJECTS
The Company has a number of other Australian
projects, including the Big Grey Project in the
Patterson region of WA and the Yarara Project
in NSW.
On-ground mapping and reconnaissance prospecting
work and a detailed systematic surface geochemical
sampling programs were undertaken across a number
of target area across the Company’s extensive NSW
tenement portfolio, including at the Peep O’Day
Prospect within the NSW Yarara Project in 2021.
Analysis of 57 rock chip samples collected along the
historic Peep O’Day workings have returned numerous
samples with grades greater than 1.0 g/t Au, with a
peak of 9.79 g/t Au over a strike extent of 1.3km, with
the structure open along strike to the north and south
(Figure 10).
project.“
The large-scale of the Mineral
Resource places Cloud Nine as
a globally significant halloysite
Proposed follow up work at the Peep O’ Day Prospect
includes a detailed drone magnetic survey to assist
in identifying potential cross cutting controlling
structures, and initial drill testing of the highlighted
gold bearing structure.
Wet weather and Covid-19 related restrictions
impacted further programs on our NSW projects.
The exploration team in NSW spent time compiling
historic data and progressing land access
negotiations during the halt in field operations.
Due to a focus on Cloud Nine and Salinas, the
Company is assessing divestment or joint
venture opportunities for these projects.
2021 Annual Report
19
2. INVESTMENTS
In 2018, the Company sold a group of projects in Peru
to TSX-V listed Westminster Resources Limited (later
renamed Solis Minerals Ltd.) for cash and scrip. In
December of 2021, Solis completed a dual-listing onto
the Australian Securities Exchange (ASX), with Latin
retaining a strategic 13.14% shareholding in Solis.
Latin has invested a total of $683,816 into Solis
Minerals which is valued at $1.6million as at 31
December 2021.
Solis holds three large-scale high-quality projects
in one of the world’s richest copper districts in the
Andes porphyry copper belt. The newly acquired
Mostazal Copper Project in Chile contains eight
exploitation licenses totalling 16 km2.
Solis commenced its maiden drill program at
Mostazal in January 2022.
Preliminary interpretation of the geophysical data
indicate mineralisation at surface has a striking
correlation to four deeply rooted magnetic
anomalies – two of which measure a
combined 1.6km in diameter.
Detailed historical resource studies have been
produced along with 60 drill holes totalling
11,380 m. Mostazal is host to historical
and recent small-scale production.
Further information on Solis Minerals can
be found at solisminerals.com.
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.
20
Latin Resources
Director’s Report03
Latin Resources Limited – Annual Report 2021
2021 Annual Report
21
20
03 Director’s 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 2021.
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 several mining and technology companies during his career.
Mr Gale is also a non-executive Chairman of Solis Minerals Limited (ASX:SLM TSXV: SLMN) (appointed July 2018) and
Executive Chairman of Oar Resources Limited (ASX: OAR). Chris is the 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 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).
BRENT JONES (Non-Executive Director)
Mr. Jones is an experienced financial services professional who has held numerous directorships and managerial
positions. Currently Mr Jones acts as Managing Director of Professional Services at Sequoia Financial Group (ASX:SEQ).
A national supplier of diversified professional services to the Accounting and Advice industry.
As a professional and personal investor Mr Jones has been exposed to numerous M&As, IPOs, capital raisings, early seed
funding and development funding activities.
Mr. Jones has a degree in Information Technology from Monash University, 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.
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.
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Latin Resources Limited – Annual Report 2021
Latin Resources
21
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
16,554,908
30,288,854
18,901,062
-
Share rights
Number
1,740,895
1,343,283
7,925,373
-
Loan funded shares
1,000,000
1,000,000
2,000,000
-
Share options
Number
-
15,833,250
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 loss after tax of the Group for the year ended 31 December 2021 was $4,366,344 (2020: profit of
$2,323,304).
The result comprises of finance expenses of $0.7million (2020: $0.4 million), employee benefits expense of $1.4 million
(2020: $1.9 million) and other income and expense items $2.4million (2020: $0.9 million). Last year result comprises of
gain from discontinued operation of $4.7 million and reversal of prior year impairment of $0.8 million.
Assets
Total assets increased by $1.7 million during the year to $15 million. The movement primarily comprised of an increase
in exploration expenditure of $4.7 million, an increase in trade and other receivable of $0.4 million and an increase in
investments of $ 0.7 million, which were offset with the decrease in cash of $3.9 million.
Liabilities
Total liabilities decreased by $0.6 million to $1.7 million during the year. The decrease was due to the decrease in
interest bearing loans and borrowings by about $0.9 million and an increase in trade and other payables of $0.3 million.
Equity
Total equity increased by $2.2 million during the year to $13.3 million. The increase reflects the current period loss of
$4.4 million for the year together with an increase in share capital of $3.4 million.
Shareholder returns
The Company’s share price decreased during the period however the market capitalisation of the company increased
due to share and placement issues to fund the Company’s defined strategic direction in the area of lithium in line with
its long- term strategy of mineral exploration in South America.
Shareholder returns for the last 5 years is as follows:
Profit/(Loss) attributable to the Group ($)
Basic earning/(loss) per share (Cents)
Dividends ($)
Closing share price ($)
Total shareholder return (%)
*Refer Note 31: Adjustment of Comparatives
December
2021
(4,366,344)
(0.3)
Nil
$0.029
(12)
December
2020*
2,323,304
0.4
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)
Latin Resources Limited – Annual Report 2021
2021 Annual Report
23
22
DIVIDENDS
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 2021.
LIQUIDITY AND CAPITAL RESOURCES
The Group’s principal source of liquidity as at 31 December 2021 is cash and cash equivalents of $642,784 (2020:
$4,533,257).
Funding for 2022 is expected from a combination of capital raisings, and the conversion of options.
SHARES, SHARE RIGHTS AND OPTIONS
As at 31 December 2021 the Company had 1,422,776,263 fully paid Shares on issue, 4,000,000 loan funded unquoted
shares on issue, 508,570,167 Share Options on issue.
Shares
A total of 227,865,952 fully paid ordinary shares were issued during the year. A breakdown of the shares issued is shown
at Note 18 of the financial statements.
Share rights
During the year 10,280,597 deferred share rights and 26,417,910 incentive rights were issued to directors and 4,112,239
deferred share rights and 10,567,164 incentive rights were converted in accordance with the share right plan approved
by the shareholders.
Options
During the year 49,125,000 options were issued and 190,203,214 options were exercised during the period.
As at the date of this report there were 508,570,167 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.
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 28 February 2022, the Company announced that it has executed an Options Funding Agreement to receive funding
of $2,500,000 (face value $2,750,000) from Lind Asset Management XII, LLC. The Company will repay the funding
progressively with proceeds from LRSOC options as they are exercised, or earlier, at the Company’s election. The
Company also issued 35,000,000 unlisted LRS options to Lind Asset Management, exercisable at $0.05 on or before 31
March 2026.
On 4 March 2022, Director Brent Jones has exercised 5,000,000 LRSOC Options to acquire 5,000,000 fully paid ordinary
shares for a total consideration of $60,000.
IMPACT OF COVID-19
The Group has exploration projects in Latin America (Peru, Argentina and Brazil) where the region has been badly
affected by COVID-19. Despite the situation, the Group has managed to undertake ground exploration in some areas
during the period and made the assessment that there has been no significant impact on the performance or financial
position of the Group as at 31 December 2021 due to COVID-19.
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Latin Resources Limited – Annual Report 2021
Latin Resources
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LIKELY DEVELOPMENTS AND EXPECTED RESULTS
In 2022, the Group intends to continue to progress its mineral projects in commodities that progress global efforts
towards Net Zero emissions both in Australia and Latin America. 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.
DIRECTORS’ MEETINGS
The number of meetings of directors (including meetings of committees of directors) held for the year ended 31
December 2021 and the number of meetings attended by each director is as follows:
Director
Board meetings held
Board meetings attended
David Vilensky
Chris Gale
Brent Jones
Pablo Tarantini
COMMITTEE MEMBERSHIP
9
9
9
9
9
9
9
7
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 2021 year is included in the Company’s Corporate Governance
Statement
AUDITORS’ INDEPENDENCE DECLARATION
The auditors’ independence declaration is set out on page 69 and forms part of the Directors’ report for the year
ended 31 December 2021.
Non-audit services
Non-audit services provided by the Group’s auditor Hall Chadwick during the year ended 31 December 2021 is shown
at Note 27 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 – Annual Report 2021
2021 Annual Report
25
24
REMUNERATION REPORT (AUDITED)
This remuneration report for the year ended 31 December 2021 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
Non-Executive Chairman
Brent Jones
Non-Executive Director
Pablo Tarantini
Non-Executive Director
Executive director
Chris Gale
Executive Director
Other Executives
Sarah Smith
Yugi Gouw
Company Secretary
Chief Financial Officer
Anthony Greenaway
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.
During the year 10,280,597 deferred share rights were issued to directors and 4,112,239 deferred share rights were
converted on 2 March 2021 in accordance with the share right plan approved by the shareholders.
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Latin Resources Limited – Annual Report 2021
Latin Resources
25
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 – Annual Report 2021
2021 Annual Report
27
26
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
$64,800 per annum
Non-Executive directors
$50,000 per annum
No committee fees are paid.
Executive Director
The Executive Director is currently employed under a renewed consultancy agreement for a three-year term ending on
30 September 2024. Mr Gale is paid a fixed remuneration of A$359,000 per annum during the year due to an uplift in
remuneration from the 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.
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Latin Resources Limited – Annual Report 2021
Latin Resources
27
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.
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.
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.
2021 Annual Report
29
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Latin Resources Limited – Annual Report 2021
2021 Annual Report
31
30
ADDITIONAL DISCLOSURES RELATING TO REMUNERATION
(a)
Share holdings of key management personnel
Balance at
start of year
Granted as
remuneration
On exercise of
options/conversion
of rights
Net change
other
Balance at
end of year
31 Dec 2021
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw
A. Greenaway
31 Dec 2020
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw1
A. Greenaway2
9,131,579
8,857,778
22,055,438
368,906
500,000
100,000
41,013,701
Balance at
start of year
602,366
732,874
1,473,877
-
-
-
10,550,013
19,065,193
1,757,712
(4,833,333)
(12,078,789)
166,667
14,848,259
15,844,182
23,979,817
-
-
1,000,000
1,000,000
Granted as
remuneration
7,450,0003
17,437,5003
20,833,2503
-
-
-
31,372,918
On exercise of
options
-
-
999,201
(368,906)
-
-
(17,114,361)
Net change
other
1,079,213
(9,312,596)
(1,250,890)
-
-
-
2,809,117
500,000
500,000
-
46,720,750
-
-
-
999,201
(131,094)
-
100,000
(9,515,367)
-
500,000
1,100,000
56,272,258
Balance at
end of year
9,131,579
8,857,778
22,055,438
368,906
500,000
100,000
41,013,701
1 Mr. Gouw was appointed on 20th January 2020 as Chief Financial Officer.
2 Mr. Greenaway was appointed on 11thAugust 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.
Loan Funded Shares
31 Dec 2021
D. Vilensky
C. Gale
B. Jones
31 Dec 2020
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
1,000,000
2,000,000
1,000,000
4,000,000
Granted as
remuneration
-
-
-
-
Granted as
remuneration
-
-
-
-
On exercise of
options
-
-
-
-
On exercise of
options
-
-
-
-
Net change
other1
-
-
-
-
Net change
other
-
-
-
-
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 2020 and 2021.
Latin Resources
32
Latin Resources Limited – Annual Report 2021
31
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. The reduction in the loan funded shares is due to the 1:25 share
consolidation done in 2019.
(b)
Share right holdings of key management personnel
31 Dec 2021
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw
A. Greenaway
Balance at
start of year
Granted as
remuneration
Converted to
Shares
Net change other
-
-
-
-
-
-
-
5,802,985
26,417,910
4,477,612
(2,321,194)
(10,567,164)
(1,791,045)
-
-
-
36,698,507
-
-
-
(14,679,403)
-
-
-
-
-
-
-
Balance at
end of year
3,481,791
15,850,746
2,686,567
-
-
-
22,019,104
At the Annual General Meeting held on 10 February 2021, shareholders approved 5,802,985 deferred rights to Mr Vilensky
and 4,477,612 deferred rights to Mr Brent and 8,717,910 retention rights, together with 17,700,000 performance rights to
Mr Gale.
31 Dec 2020
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw
A. Greenaway
Balance at
start of year
-
-
-
Granted as
remuneration
-
-
-
Converted to
Shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Net change other
-
-
-
-
-
-
-
Balance at
end of year
-
-
-
-
-
-
-
Latin Resources Limited – Annual Report 2021
2021 Annual Report
33
32
ADDITIONAL DISCLOSURES RELATING TO REMUNERATION
(c)
Vesting profile of share rights granted to key management personnel
Number
Grant date
Vested in year
(%)
Net change
other (%)
Directors
C. Gale – Retention Rights
Tranche 1
Tranche 2
Tranche 3
C. Gale – Performance Rights
Tranche 1
Tranche 2
Tranche 3
D. Vilensky – Deferred Rights
Tranche 1
Tranche 2
Tranche 3
B. Jones – Deferred Rights
Tranche 1
Tranche 2
Tranche 3
Other KMP
S. Smith
Y. Gouw
A. Greenaway
3,487,164
2,615,373
2,615,373
7,080,000
5,310,000
5,310,000
2,321,194
1,740,895
1,740,896
1,791,045
1,343,284
1,343,283
-
-
-
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
-
-
-
1 Tranche 1 of the share rights was converted to shares on 2 March 2021.
2 Tranche 2 of the share rights was converted to shares on 8 March 2022.
(d)
Option holdings of key management personnel
100
100
-
100
100
-
100
100
-
100
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Measurement
date of share
rights
31/12/20201
31/12/20212
31/12/2022
31/12/20201
31/12/20212
31/12/2022
31/12/20201
31/12/20212
31/12/2022
31/12/20201
31/12/20212
31/12/2022
-
-
-
The number of options held by directors and other key management personnel both directly and indirectly are set out below.
31 Dec 2021
Directors
D. Vilensky
C. Gale
B. Jones
Other KMP
S. Smith
Y. Gouw
A. Greenaway
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
8,262,152
15,053,748
20,833,250
-
-
-
44,149,150
-
-
-
-
-
-
-
(8,262,152)
(15,013,748)
-
-
-
-
(23,275,900)
-
-
-
-
-
-
-
-
40,000
20,833,250
-
-
-
20,873,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
start of year
Granted as
remuneration
Exercised
Net change
other
Balance at
end of year
Vested
exercisable
Vested not
exercisable
-
-
-
-
-
-
-
7,450,0003
17,437,5003
20,833,2503
-
-
(999,201)
812,152
(2,383,752)
999,201
8,262,152
15,053,748
20,833,250
-
-
-
45,720,750
-
-
-
(999,201)
-
-
-
(572,399)
-
-
-
44,149,150
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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.
Latin Resources
34
Latin Resources Limited – Annual Report 2021
33
ADDITIONAL DISCLOSURES RELATING TO REMUNERATION
(e)
Loans to key management personnel
There were no loans to key management personnel during 2021 and 2020 financial years.
(f)
Other transactions with key management personnel
Refer Note 22 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 2022
Latin Resources Limited – Annual Report 2021
2021 Annual Report
35
34
04 Consolidated Statement of Profit or Loss and Other Comprehensive
04. Consolidated Statement of Profit or Loss and other Comprehensive Income
Income
For the twelve months ended 31 December 2021
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
Reversal of impairment
Other share based payment
Other expenses
Profit/(Loss) continuing operations before tax*
Income tax benefit
31 Dec 2021
$
83
99,038
(24,573)
(1,404,909)
(722,073)
(108,140)
246,033
-
(1,316,046)
(1,135,757)
(4,366,344)
31 Dec 2020
$
Restated*
360
176,522
(16,606)
(1,942,830)
(402,429)
42,413
6,455
765,835
-
(1,029,496)
(2,399,776)
-
-
Notes
5
13
6(a)
6(b)
12
12
6(c)
6(d)
7
Profit/(Loss) for the year from continuing operations*
(4,366,344)
(2,399,776)
Profit/(Loss) attributable to owners of the Parent Company*
(4,366,344)
(2,399,776)
Gain/(Loss) from discontinued operation
30
-
4,723,080
Net profit/(Loss) for the period*
(4,366,344)
2,323,304
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
-
-
19
(38,908)
(491,090)
Total comprehensive profit/(loss) for the year attributable to owners
of the Parent Company*
(4,405,252)
1,832,214
Profit/(Loss) attributable to:
Owners of the Parent Company
Non-controlling Interests
Total comprehensive profit/(loss) attributable to:
Owners of the Parent Company
Non-controlling Interests
Basic earning/(loss) per share (Cents)*
Diluted earning/(loss) per share (Cents)*
* Refer to Note 31: Adjustment of Comparatives
8
8
(4,355,427)
(10,917)
(4,366,344)
(4,394,335)
(10,917)
(4,405,252)
(0.3)
(0.2)
2,323,304
-
2,323,304
1,832,214
-
1,832,214
0.4
0.2
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
36
Latin Resources
05. Consolidated Statement of Financial Position
Latin Resources Limited – Annual Report 2021
35
05 Consolidated Statement of Financial Position
For the twelve months ended 31 December 2021
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Investments
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
Provisions
Total current liabilities
Non-current liabilities
Total non-current liabilities
Total liabilities
Net (deficiency)/assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Parent’s Interest
Non-Controlling Interest
Total equity
Notes
31 Dec 2021
$
31 Dec 2020
$
9(a)
10
11(a)
12
13
11(b)
14
15
16
17
18
19
20
20
642,784
765,713
82,555
1,491,052
4,533,257
331,719
43,700
4,908,676
1,627,323
116,462
-
11,760,126
13,503,911
14,994,963
924,860
39,347
376,000
7,082,034
8,422,241
13,330,917
1,660,416
-
60,654
1,721,070
1,356,643
900,000
43,910
2,300,553
-
-
1,721,070
13,273,893
-
-
2,300,553
11,030,364
59,835,942
15,156,535
(61,954,778)
13,037,699
236,194
13,273,893
56,467,554
12,162,161
(57,599,351)
11,030,364
-
11,030,364
The above consolidated statement of financial position should be read in conjunction with accompanying notes.
2021 Annual Report
37
36
Total
$
-
-
-
-
-
-
-
-
$
(736,824)
2,323,304
(491,090)
1,832,214
7,175,739
3,343,624
(584,389)
11,030,364
06. Consolidated Statement of Changes in Equity
Latin Resources Limited – Annual Report 2021
06 Consolidated Statement of Changes in Equity
For the twelve months ended 31 December 2021
Contributed
equity
Share based
payment
reserve
$
$
Foreign
currency
translation
reserve
$
Accumulated
losses
Non-
Controlling
Interest
$
Balance at 1 January 2020
48,218,621
5,067,448
5,899,762
(59,922,655)
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*
Balance at 1 January
2021*
Profit/(Loss) for the year
Other comprehensive
income/(loss)
Total comprehensive
income/(loss)
Issue of shares
Share based payments
Issue of Equity in
Subsidiary
Transaction costs
Balance at 31 December
2021
-
-
-
-
-
(491,090)
2,323,304
-
(491,090)
2,323,304
7,175,739
1,657,583
(584,389)
56,467,554
-
1,686,041
-
6,753,489
-
-
-
5,408,672
-
-
-
(57,599,351)
56,467,554
6,753,489
5,408,672
(57,599,351)
-
11,030,364
-
-
-
-
-
-
-
(38,908)
(4,355,427)
-
(10,917)
-
(4,366,344)
(38,908)
(38,908)
(4,355,427)
(10,917)
(4,405,252)
2,302,439
1,093,516
-
-
3,033,282
-
-
-
-
-
-
-
-
-
247,111
2,302,439
4,126,798
247,111
(27,567)
59,835,942
-
9,786,771
-
5,369,764
-
(61,954,778)
-
236,194
(27,567)
13,273,893
* Refer to Note 31: Adjustment of Comparatives.
The above consolidated statement of changes in equity should be read in conjunction with accompanying notes.
38
Latin Resources
07. Consolidated Statement of Cash Flows
Latin Resources Limited – Annual Report 2021
37
07 Consolidated Statement of Cash Flows
For the twelve months ended 31 December 2021
Notes
31 Dec 2021
$
31 Dec 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
Proceeds from disposal of fixed assets
Payments for security deposits
Net cash flows used in investing activities
9(b)
13
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
Proceeds from share issues in subsidiary to outside equity
interest
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
9(a)
40,077
(1,790,825)
83
(10,614)
(1,761,279)
(97,705)
(564,570)
(3,046,001)
36
(38,855)
(3,747,095)
2,298,357
(27,567)
-
(900,000)
247,111
1,617,901
(3,890,473)
4,533,257
-
642,784
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
The above consolidated statement of cash flows should be read on conjunction with accompanying notes.
2021 Annual Report
39
08. Notes to the Financial Statements
Latin Resources Limited – Annual Report 2021
38
08 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 2021 were authorised for issue in accordance with
a resolution of the directors on 31 March 2022.
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.
(a)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 in to 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.
40
Latin Resources
Latin Resources Limited – Annual Report 2021
(f)
Going concern
39
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.
The Group incurred a loss for the period of $4,366,344 (2020: $2,399,776) and net operating cash outflow of $1,761,279
(2020: $1,072,998). As at 31 December 2021, the Group's cash and cash equivalents decreased to $642,784 (2020:
$4,533,257) and had a working capital deficit of $230,018.
The directors have prepared a cash flow forecast, which indicates that the Consolidated Group will have sufficient cash
flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this
report. The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to
secure funds by raising capital from equity markets and managing cash flow in line with available funds.
On 28 February 2022, the Company announced that it has executed an Options Funding Agreement to receive funding
of $2,500,000 (face value $2,750,000) from Lind Asset Management XII, LLC. The Company will repay the funding
progressively with proceeds from LRSOC options as they are exercised, or earlier, at the Company’s election. The
Company also issued 35,000,000 unlisted LRS options to Lind Asset Management, exercisable at $0.05 on or before 31
March 2026 (Note 26: Events After The Reporting Period).
Based on the cash flow forecast and other factors referred to above, the Directors are satisfied that the going concern
basis of preparation is appropriate. In particular, given the Group’s history of raising capital to date and the support
from its shareholders, the directors are confident of the Group’s ability to raise additional funds as and when they are
required.
Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its
liabilities other than in the normal course of business and at amounts different to those stated in the financial
statements. The financial statements do not include any adjustments relating to the recoverability and classification of
asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to
continue as a going concern and meet its debts as and when they fall due.
(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.
Latin Resources Limited – Annual Report 2021
(i)
Current versus non-current classification
2021 Annual Report
41
40
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.
(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.
42
Latin Resources
Latin Resources Limited – Annual Report 2021
41
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.
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.
Latin Resources Limited – Annual Report 2021
(q)
Property, plant & equipment
2021 Annual Report
43
42
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:
•
•
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.
44
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43
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.
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.
Latin Resources Limited – Annual Report 2021
2021 Annual Report
45
44
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.
Group companies
The functional currency of overseas subsidiaries within the Group 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.
(aa)
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.
46
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Latin Resources Limited – Annual Report 2021
45
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.
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.
(bb)
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 30.
(cc)
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.
Latin Resources Limited – Annual Report 2021
Impairment of Exploration and evaluation assets
2021 Annual Report
47
46
The Group accounts for Exploration and evaluation assets in accordance with its policy (refer Note 1(s)).
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.
Share based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by an external valuation using a Monte
Carlo simulation model, using the assumptions detailed in Note 21 share-based payments.
48
Latin Resources
Latin Resources Limited – Annual Report 2021
4.
OPERATING SEGMENT INFORMATION
47
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.
2021
Australia
Peru
Argentina
Brazil
Revenue
Interest revenue
Other income
Total revenue
Results
Depreciation & amortisation
expense
Finance cost
Net foreign exchange
gain/(loss)
Other expenses
Share of Associate Company
loss
Revaluation gain on
investment
Total expenses
Segment profit/(loss)
Segment assets
Segment liabilities
Additions to non-current
assets
Plant & equipment
Exploration & evaluation
assets
Milestone consideration of
exploration assets –
Noombenberry Project
Total additions to non-
current assets
$
$
83
81,427
81,510
-
10,441
10,441
(18,148)
(6,425)
(655,009)
7,979
(425)
(808)
$
-
-
-
-
-
-
$
-
-
-
-
(459)
-
(2,857,300)
(108,140)
(73,078)
-
(989,959)
-
(2,556)
-
246,033
(3,384,585)
(3,303,075)
(80,736)
(70,295)
8,096,358
(863,562)
2,500,549
(798,968)
(989,959)
(989,959)
3,680,019
(28,139)
(3,015)
(3,015)
718,037
(30,401)
97,814
2,898,223
-
227,910
1,347
68,352
-
121,732
985,875
-
-
-
3,981,912
227,910
69,699
121,732
Discontinued
Operations
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
83
91,868
91,951
(24,573)
(655,893)
7,171
(3,922,893)
(108,140)
246,033
(4,458,295)
(4,366,344)
14,994,963
(1,721,070)
99,161
3,316,217
985,875
4,401,253
Latin Resources Limited – Annual Report 2021
2021 Annual Report
49
48
2020
Australia
$
Peru
$
Argentina
$
Brazil
$
Discontinued
Operations
$
Revenue
Interest revenue
Other income
Total revenue
Results
Depreciation & amortisation
expense
Share based payments
Finance 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
360
141,698
142,058
-
35,710
35,710
(6,082)
(10,524)
(25,337)
(399,484)
-
811
(7)
(878)
-
-
-
-
-
-
(1,900,364)
42,413
(213,129)
-
(64,963)
-
-
-
-
-
-
(2,288,861)
(2,146,803)
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
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
360
177,408
177,768
(16,606)
(25,337)
(398,673)
(885)
(2,178,456)
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)
2,145,536
2,323,304
13,330,917
(2,300,553)
4,806
1,923,821
376,000
2,304,627
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.
* Refer to Note 31: Adjustment of Comparatives
50
Latin Resources
Latin Resources Limited – Annual Report 2021
5.
OTHER INCOME AND LOSSES
Sundry income
Administration Fees
Other
6.
(a)
EXPENSES
Employee benefits expense
Employee benefits and Director Fees
Employee and Director Share based payments (refer note 21) 1,2
49
2020
$
112,413
64,994
(885)
176,522
2021
$
14,632
77,235
7,171
99,038
(830,842)
(574,067)
(1,404,909)
(545,726)
(1,397,104)
(1,942,830)
1 Out of Employee share based payments of $574,067 (2020: $1,397,104), the full amount (2020: $1,397,104) was expensed during the year with the nil
balance (2020: nil) being capitalised.
2 Refer to Note 31: Adjustment of Comparatives
(b)
Finance expenses
Bank fees and charges
Interest expense
Share based payment - Lind Partners3
Other finance charges
(7,305)
(3,216)
(652,621)
(58,931)
(722,073)
(3,755)
(398,342)
-
(332)
(402,429)
3 20,000,000 Unlisted Options exercisable at $0.03 on or before 1 December 2022 was issued on 29 January 2021 to Lind Partners New York as part of the
security funding settlement (Refer to ASX Announcement - 1 February 2021).
(c)
Other share based payment
Share based payment – corporate advisory services4
(1,316,046)
(1,316,046)
-
-
4 25,000,000 Unlisted Option exercisable at $0.03 on or before 12 February 2024 was issued to Euroz Hartleys on 12 February 2021 after receiving
shareholder approval on 10 February 2021. The share-based payment was amortised over 18 months in accordance with the agreement, with amount in
relation the remaining period classified as prepayment (Refer to Note 10 & 19).
(d)
Other expenses
Administration expenses
Corporate expenses
Occupancy expenses
Receivable written-off
Share based payments - Other
(267,592)
(835,121)
(33,044)
-
-
(1,135,757)
(210,251)
(612,528)
(21,232)
(160,148)
(25,337)
(1,029,496)
Latin Resources Limited – Annual Report 2021
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 profit/(loss) before tax
At the statutory income tax rate of 26% (27.5% in 2020) (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
Carried forward revenue losses -LDN
Carried forward revenue losses - BL
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
2021 Annual Report
51
50
2021
$
-
-
-
(4,366,344)
(1,135,249)
-
-
1,135,249
2020
$
-
-
-
2,323,304
638,909
-
-
(638,909)
-
-
4,692,849
-
186,988
4,254
498,144
(22,841)
(784)
3,860
43,056
117,452
-
5,522,978
-
5,522,978
-
-
-
-
-
-
3,840,197
-
197,776
(143)
513,423
-
-
(226,096)
30,684
(22,925)
-
4,332,916
-
4,332,916
-
-
-
-
-
-
52
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Latin Resources Limited – Annual Report 2021
8.
EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share1
Diluted earnings/(loss) per share1
51
2020
Cents
0.4
0.2
$
2021
Cents
(0.3)
(0.2)
$
Loss used in calculating basic and diluted earnings/(loss) per share1
Weighted average number of ordinary shares used in calculating basic
earnings/(loss) per share2
Weighted average number of ordinary shares used in calculating diluted
earnings/(loss) per share2
(4,366,344)
Number
2,323,304
Number
1,391,886,450
622,423,444
1,951,813,857
957,869,218
1 Refer to Note 31: Adjustment of Comparatives
2 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 508,570,167 (2020: 649,648,381) share options and 14,546,071 (2020: 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
Cash and short term deposits
Cash in hand
Cash at bank
2021
$
306
642,478
642,784
Reconciliation of net loss after income tax to net cash flows from operating activities:
Profit/(Loss) for the year
(4,366,344)
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
Options issued to corporate advisor
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
(137,893)
-
24,573
1,694,719
652,621
-
-
574,067
1,099
-
(528,917)
308,053
16,743
(1,761,279)
2020
$
306
4,532,951
4,533,257
2,323,304
-
(6,455)
(765,835)
16,606
-
353,845
(42,413)
(4,723,080)
1,397,104
(31,472)
-
396,057
6,760
2,581
(1,072,998)
During the year, the Group issued 4,950,000 fully paid ordinary shares to settle expenses and liabilities amounting to
$219,516. The Group also issued 16,500,000 fully paid ordinary shares valued at $825,000 as Milestone securities for the
acquisition of Electric Metals upon achievement of the milestone.
Latin Resources Limited – Annual Report 2021
10.
TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Other receivables
Related party receivables
Tax credits
Prepayments
Prepayments – Corporate Advisory Services (Refer to Note 6c)
2021 Annual Report
53
52
2020
$
171,859
50,935
12,999
88,014
7,912
-
331,719
2021
$
230,394
68,498
14,735
54,116
19,297
378,673
765,713
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
Current Asset
(a)
Security deposits and bonds
(b)
Non-current Asset
Acquisition of the Burdett project1
2021
$
82,555
82,555
-
-
2020
$
43,700
43,700
376,000
376,000
1 The Group acquired Burdett gold tenement from Syndicate Minerals Pty Ltd for the consideration of 10,000,000 fully paid Ordinary Shares in Latin
Resources Ltd and 2,000,000 LRSOC Options. During the year the Burdett gold tenement has been transferred to Exploration and Evaluation assets.
12.
INVESTMENT
Shares in listed entities
Associated Company Investment – at carrying value2
Equity Share of Associated Company profit/(loss) based on Equity method
Revaluation gain on investment based on market method
Movement:
Opening balance
Additional investment
Share of (loss)/profit from associates
Revaluation gain on investment
Reversal of prior year impairment
Closing balance
2021
$
1,489,430
(108,140)
246,033
1,627,323
2021
$
924,860
564,570
(108,140)
246,033
-
1,627,323
2020
$
882,447
42,413
-
924,860
2020
$
-
116,612
42,413
-
765,835
924,860
2 The investment in Solis Minerals Limited formerly known as Westminster Resources Limited originated from the settlement of the sale of the Peru Ilo copper
project. At balance date the Company has a 13.14% (2020:27.62%) ownership interest. The ownership dilution was due to additional shares issued by Solis
Mineral Limited for its dual listing on ASX. The valuation of the investment is currently measured at fair value through Other Comprehensive Income.
54
Latin Resources
Latin Resources Limited – Annual Report 2021
13.
PLANT AND EQUIPMENT
Furniture and equipment
At cost
Less: Accumulated depreciation
Furniture and equipment
Balance at beginning of period
Additions
Depreciation expense
Effects of exchange rate movements
Balance at end of period
14.
EXPLORATION AND EVALUATION ASSETS
Balance at beginning of period
Additions
Milestone consideration for the Noombenberry Project1
Acquisition of the Yarara project
Acquisition of Burdett project2
Discontinued Operations
Other expenses (GST/VAT movement) 3
Foreign currency translation movement
Balance at end of period
53
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
2021
$
294,100
(177,638)
116,462
39,347
99,161
(24,573)
2,527
116,462
2021
$
7,082,034
3,254,912
985,875
-
376,000
-
100,164
(38,859)
11,760,126
1 The Acquisition Agreement require the Group to pay the Vendor, 16.5 million fully paid ordinary shares and 4.125 million options exercisable at $0.012
on or before 31 December 2022 on a successful Kaolin/Halloysite JORC Inferred Resources of 3 million tonnes at 30% Ceramic Alumina or greater.
2 Group acquired the Burdett Project in 2020, the acquisition was previously classified under Other Assets due to the tenement only being granted in 2021.
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
Trade payables are generally 30 days term from end of month of supply.
16.
INTEREST BEARING LOANS AND BORROWINGS
Convertible Security Funding – Lind4
2021
$
1,396,645
173,516
90,255
1,660,416
2021
$
-
-
2020
$
1,123,384
154,766
78,493
1,356,643
2020
$
900,000
900,000
4 During the year, the Company has repaid the $900,000 debt in full and concluded the Convertible Security Funding Agreement with Lind Partners New
York.
Latin Resources Limited – Annual Report 2021
17.
PROVISIONS
Employee benefits – Leave entitlements
18.
CONTRIBUTED EQUITY
Issued capital
(a)
Issued shares
Movements in issued capital
(b)
Issued shares
Balance 1 January 2021
Options conversion
Shares issued in lieu of fees to consultant
Vesting and conversion of incentive rights
Vesting and conversion of deferred rights
Director participation in Placement
Shares issued to employees and contractors
Milestone consideration to the Vendor of Electric Metals
Costs of issue
Balance 31 December 2021
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
2021 Annual Report
55
2021
$
60,654
54
2020
$
43,910
2021
$
2020
$
59,835,942
56,467,554
Number
$
1,194,910,311
190,203,214
4,450,000
10,500,498
4,045,573
666,667
1,500,000
16,500,000
-
1,422,776,263
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
-
56,467,554
2,282,439
200,000
-
-
20,000
68,516
825,000
(27,567)
59,835,942
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)
Balance 31 December 2020
1,194,910,311
56,467,554
19.
RESERVES
(a)
Foreign currency translation reserve
Balance at beginning of year
Foreign currency translations
Balance at the end of the year
2021
$
5,408,672
(38,908)
5,369,764
2020
$
5,899,762
(491,090)
5,408,672
56
Latin Resources
Latin Resources Limited – Annual Report 2021
(b)
Share based payments reserve
Balance at the beginning of year
Capital raising costs – issue of broker options
Share based payment – Lind Partners1
Share based payment – corporate advisory services2
Share based payments – Share rights to directors3
Replacement option
Project acquisition /milestone consideration
Borrowing cost
Balance at the end of the year
2021
$
6,753,489
-
652,621
1,694,719
525,067
-
160,875
-
9,786,771
55
2020
$
5,067,448
150,000
-
-
1,365,104
25,337
36,000
109,600
6,753,489
Total reserves
15,156,535
12,162,161
1 The unlisted options exercisable at $0.03 on or before 1 December 2022 was issued on 29 January 2021 to Lind Partners New York as part of the security
funding settlement (Refer to ASX Announcement - 1 February 2021).
2 The terms and conditions of the options has been disclosed in the Notice of Meeting for the shareholder meeting held on 10 February 2021 and the
issue was approved by shareholders at the meeting.
3 The terms and conditions of the share rights has been disclosed in the Notice of Meeting for the shareholder meeting held on 10 February 2021 and
the issue was approved by shareholders at the meeting (Refer to Note 31: Adjustment of Comparatives).
Nature and purpose of reserves
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 21 for further details regarding share-based payments.
Number of options
Weighted average
exercise price
Options outstanding
(includes share-based payment options and non-share based payment
options)
Balance at 1 January 2021
Issued during the year – quoted4,
Issued during the year – unquoted5,6
Options exercised
Balance at 31 December 2021
649,648,381
4,125,000
45,000,000
(190,203,214)
508,570,167
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 $0.0325cents per share expiring 03 July 2023
exercisable at $0.1075 per share expiring 18 December 2022
exercisable at $0.03 per share expiring 1 December 2022
exercisable at $0.03 per share expiring 12 February 2024
$0.012
$0.012
$0.03
$0.012
$0.012
348,703,500
100,200,000
8,000,000
6,666,667
20,000,000
25,000,000
4 4,125,000 listed LRSOC options were issued to Milestone securities for the acquisition of Electric Metals upon achievement of milestone in June 2021.
5 20,000,000 unlisted options were issued to Lind pursuant to the Deed of Settlement and Release relating to the settlement of the outstanding debt in
January 2021.
6 25,000,000 unlisted options were issued to Euroz Hartley Limited for the provision of corporate advisory services that support the Company’s
exploration activities in February 2021.
Latin Resources Limited – Annual Report 2021
Share based payments reserve
2021 Annual Report
57
56
The share-based payments reserve is used to recognise the value of equity benefits provided to directors, employees and
other parties. Refer Note 21 for further details regarding share-based payments.
20.
ACCUMULATED LOSSES
Balance at the beginning of the year*
Profit/(Loss) after income tax*
Balance at the end of the year*
Non-controlling interest
Issue of Equity in Subsidiary
Loss for the period
* Refer to Note 31: Adjustment of Comparatives
21.
SHARE BASED PAYMENTS
Expenses arising from share-based payment transactions to key
management personnel
Employee share benefits payments
Performance rights issued to Director*
Retention rights issued to Director*
Deferred rights issued to Directors*
* Refer to Note 31: Adjustment of Comparatives
2021
$
(57,599,351)
(4,355,427)
(61,954,778)
2020
$
(59,922,655)
2,323,304
(57,599,351)
247,111
(10,917)
236,194
2021
$
49,000
232,490
134,256
158,321
574,067
-
-
-
2020
$
153,162
621,890
278,101
327,951
1,381,104
Employee and Directors share-based payments benefits totalled $574,067 (2020: $1,381,104), of which the full amount
(2020: $1,381,104) was expensed during the year.
Share-based payment on Share rights:
Share Rights
Performance Rights
Tranche 1
Tranche 2
Tranche 3
Retention Rights
Tranche 1
Tranche 2
Tranche 3
Deferred Rights
Tranche 1
Tranche 2
Tranche 3
Grant Date
Vesting Date
Share based
payment
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
10/02/2021
31/12/2020
31/12/2021
31/12/2022
31/12/2020
31/12/2021
31/12/2022
31/12/2020
31/12/2021
31/12/2022
-
140,981
91,509
232,490
-
86,307
47,949
134,256
-
101,778
56,543
158,321
525,067
58
Latin Resources
Latin Resources Limited – Annual Report 2021
(a)
Share rights
Incentive rights plan
57
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.
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
During 2021, 8,717,910 retention share rights and 17,700,000 performance share rights as well as 10,280,597 deferred
share rights were issued. There were 5,230,746 retention share rights and 10,620,000 performance share rights as well as
6,168,358 deferred share rights still outstanding as at 31 December 2021 (2020: nil).
Latin Resources Limited – Annual Report 2021
Valuation of Performance Share Rights to
Executive Director
Grant date
Measurement date
Expected Volatility
Exercise price
Risk-free interest rate
Share price at grant date
2021 Annual Report
59
58
Tranche 1
Tranche 2
Tranche 3
10 February 2021
31 December 20201
195.50%
$0.0550
0.09%
$0.055
10 February 2021
31 December 20212
195.50%
$0.0531
0.09%
$0.055
10 February 2021
31 December 2022
205.20%
$0.0517
0.09%
$0.055
Valuation of Retention Share Rights to
Executive Director
Grant date
Measurement date
Exercise price
Share price at grant date
Tranche 1
Tranche 2
Tranche 3
10 February 2021
31 December 20201
$0.055
$0.055
10 February 2021
31 December 20212
$0.055
$0.055
10 February 2021
31 December 2022
$0.055
$0.055
Valuation of Retention Share Rights to Non-
Executive Directors
Grant date
Measurement date
Exercise price
Share price at grant date
Tranche 1
Tranche 2
Tranche 3
10 February 2021
31 December 20201
$0.055
$0.055
10 February 2021
31 December 20212
$0.055
$0.055
10 February 2021
31 December 2022
$0.055
$0.055
1Tranche 1 of the share rights was converted to shares on 2 March 2021.
2Tranche 2 of the share rights was converted to shares on 8 March 2022.
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
2021
4,125,000 listed LRSOC options were issued to Milestone securities for the acquisition of Electric Metals upon achievement
of milestone in June 2021.3
20,000,000 unlisted options were issued to Lind pursuant to the Deed of Settlement and Release relating to the settlement
of the outstanding debt in January 2021.4
25,000,000 unlisted options were issued to Euroz Hartley Limited for the provision of corporate advisory services that
support the Company’s exploration activities in February 2021.5
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.6
26,400,000 LRSOC Options issued to convertible note holder on conversion and were valued at $0.003 on the grant date.7
60
Latin Resources
Latin Resources Limited – Annual Report 2021
59
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.8
The Company issued 50,000,000 LRSOC Options to Euroz Hartleys for introductory and facilitation services in relation to
the Yarara project JV transaction.9
The Company issued 2,000,000 LRSOC Options in relation to the acquisition of Burdett project from Syndicate Minerals
Pty Ltd.10
Input variables
Grant date share/option 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/option 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/option price
Exercise price
Expected volatility
Risk-free interest rate
Option life
Grant date
Expiry date
Fair value at grant date
31 Dec 20215
$0.079
$0.03
135%
0.10%
3 Years
15Feb 2021
12Feb2024
$0.068
31 Dec 20208
$0.004
$0.012
-%
-%
2.4 Years
13 Aug 2020
31 Dec 2022
$0.003
31 Dec 20213
$0.038
$0.012
-%
-%
1.5 Years
25 June 2021
31 Dec 2022
$0.039
31 Dec 20206
$0.005
$0.012
-%
-%
2.5 Years
02 Jul 2020
31 Dec 2022
$0.002
31 Dec 20209
$0.004
$0.012
-%
-%
2.4 Years
13 Aug 2020
31 Dec 2022
$0.003
31 Dec 20214
$0.046
$0.03
135%
0.08%
1.8 Years
28 Jan 2021
1 Dec 2022
$0.033
31 Dec 20207
$0.0056
$0.012
-%
-%
2.5 Years
16 Jul 2020
31 Dec 2022
$0.003
31 Dec 202010
$0.018
$0.012
-%
-%
2 Years
21 Dec 2020
31 Dec 2022
$0.018
22.
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*
* Refer to Note 31: Adjustment of Comparatives
2021
$
801,014
25,337
525,067
1,351,418
2020
$
527,684
10,882
1,365,104
1,903,670
Latin Resources Limited – Annual Report 2021
(b)
Transactions with related parties
2021 Annual Report
61
60
Bowen Buchbinder Vilensky, a legal firm associated with Mr Vilensky, charged fees totalling $25,290 excluding GST for the
year ended 31 December 2021 in relation to legal fees.
Oar Resource Limited, a listed company with Mr Gale and Mr Vilensky as Directors, was invoiced $140,283 excluding GST
for the shared administration and technical services provided by Latin Resources’ facilities and staff during the year ended
31 December 2021.
(c)
Subsidiaries
The consolidated financial statements include the financial statements of Latin Resources Limited and its subsidiaries
which are listed below.
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
Belo Lithium Mineracao Ltda
Litios del Norte S.A.
Associated Company
Solis Minerals Ltd. (formerly Westminster
Resources Limited)
Country of
incorporation
Peru
Peru
Brazil
Argentina
Australia
Brazil
Argentina
2021
%
100
100
100
100
100
100
88
Equity holding
2020
%
100
100
100
100
100
-
-
Canada
-
27.62
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, Belo Lithium and MFN which at the date of this report do
not attract interest and are not subject to a repayment schedule.
Litios del Norte S.A. has been incorporated as a wholly owned subsidiary for the Group’s Catamarca lithium pegmatite
projects in joint venture with Argentinian investment group Integra Capital S.A. The JV partner has subscribed for 12%
equity interest as at 31 December 2021.
At balance date the Company has a 13.14% (2020:27.62%) direct shareholding in the capital of Solis Minerals Limited
formerly known as Westminster Resources Limited. Due to its ownership dilution, Solis Minerals Limited is no longer
considered as an associated company (Note 12: Investment).
(d)
Ultimate parent company
Latin Resources Limited is the ultimate parent of the Group.
23.
COMMITMENTS
Exploration Commitments:
Not later than one year
Later than one year but not later than five years
Later than five years
Expenditure Commitments:
Not later than one year
Later than one year but not later than five years
Later than five years
2021
$
682,500
2,784,500
-
3,467,000
796,002
2,381,212
-
3,177,214
2020
$
264,000
642,000
-
906,000
-
-
-
-
62
Latin Resources
Latin Resources Limited – Annual Report 2021
24.
CONTINGENCIES
The Group has no contingent assets or contingent liabilities.
25.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
61
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 2021, 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
Financial liabilities
Trade and other payables
Provisions
2021
$
124,984
1,931,965
2,056,949
(847,936)
(8,086)
(856,022)
2020
$
33,084
1,828,421
1,861,505
(1,163,739)
(7,618)
(1,171,357)
Net exposure
1,200,927
690,148
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 2021.
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.
31 December 2021
AUD/USD +10%
AUD/USD -10%
31 December 2020
AUD/USD +10%
AUD/USD -10%
Effect on loss before
tax
$
120,093
(120,093)
69,015
(69,015)
Effect on equity
$
120,093
(120,093)
69,015
(69,015)
The movement in pre-tax profit is a result of changes to the fair value of monetary assets and liabilities denominated in
USD.
Latin Resources Limited – Annual Report 2021
(a)
Interest rate risk
2021 Annual Report
63
62
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 2021 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
2021
$
517,494
-
2020
$
4,499,867
900,000
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.
31 December 2021
Trade and other payables
Interest bearing liabilities
Deferred consideration
31 December 2020
Trade and other payables
Interest bearing liabilities
Deferred consideration
Less than
1 month
$
1,660,415
-
-
1,660,415
Less than
1 month
$
1,356,643
900,000
-
2,256,643
1-3
months
$
-
-
-
-
1-3
months
$
-
-
-
-
3-12
months
$
-
-
-
-
3-12
months
$
-
-
-
-
1-5
years
$
-
-
-
-
1-5
years
$
-
-
-
-
5+
years
$
-
-
-
-
5+
years
$
-
-
-
-
Total
$
1,660,415
-
-
1,660,415
Total
$
1,356,643
900,000
-
2,256,643
64
Latin Resources
Latin Resources Limited – Annual Report 2021
(c)
Price risk
63
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 2021 the Group is not subject to any external capital requirements.
(e)
Net fair values
The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and liabilities
approximates their carrying value.
The net fair value of financial assets and financial liabilities is based upon market prices at which an asset could be
exchanged, or a liability settled, between knowledgeable, willing parties in arm’s length transaction or by discounting the
expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles.
Listed equity investment has been valued by reference to market price prevailing at balance date.
26.
EVENTS AFTER THE REPORTING PERIOD
On 28 February 2022, the Company announced that it has executed an Options Funding Agreement to receive funding of
$2,500,000 (face value $2,750,000) from Lind Asset Management XII, LLC. The Company will repay the funding
progressively with proceeds from LRSOC options as they are exercised, or earlier, at the Company’s election. The Company
also issued 35,000,000 unlisted LRS options to Lind Asset Management, exercisable at $0.05 on or before 31 March 2026.
On 4 March 2022, Director Brent Jones has exercised 5,000,000 LRSOC Options to acquire 5,000,000 fully paid ordinary
shares for a total consideration of $60,000.
27.
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
Under provision 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
2021
$
45,400
-
-
-
45,400
-
45,400
2020
$
37,150
-
-
-
37,150
-
37,150
Latin Resources Limited – Annual Report 2021
28.
PARENT ENTITY INFORMATION
(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*
* Refer to Note 31: Adjustment of Comparatives
Exploration Commitments:
Not later than one year
Later than one year but not later than five years
Expenditure Commitments:
Not later than one year
Later than one year but not later than five years
Later than five years
29.
IMPACT OF COVID-19
2021 Annual Report
65
64
2020
$
2021
$
1,161,813
12,954,883
4,620,815
7,747,160
14,116,696
12,367,975
842,803
-
842,803
13,273,893
59,715,942
8,552,373
(54,994,422)
13,273,893
1,337,611
-
1,337,611
11,030,364
56,347,554
6,747,034
(52,064,224)
11,030,364
(4,156,241)
(4,156,241)
(3,427,406)
(3,427,406)
2021
$
682,500
2,784,500
3,467,000
2021
$
796,002
2,381,212
-
3,177,214
2020
$
264,000
642,000
906,000
2020
$
-
-
-
-
The Group has exploration projects in Latin America (Peru, Argentina and Brazil) where the region has been badly affected
by COVID-19. Despite the situation, the Group has managed to undertake ground exploration in some areas during the
period and made the assessment that there has been no significant impact on the performance or financial position of the
Group as at 31 December 2021 due to COVID-19.
66
Latin Resources
Latin Resources Limited – Annual Report 2021
30.
DISCONTINUED OPERATIONS
65
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
2021
$
2020
$
-
-
-
-
-
-
-
-
-
-
-
-
4,299,991
(10,754,313)
(6,454,322)
(1,731,242)
(1,731,242)
6,454,322
4,723,080
4,723,080
-
-
-
-
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 – Annual Report 2021
31.
ADJUSTMENT OF COMPARATIVES
2021 Annual Report
67
66
The Group has sought shareholder approval to issue to the Directors share rights based upon meeting performance and
tenure conditions commencing in 2020. Due to the impact of Covid 19, the shareholder meeting to approve the issue of
the rights did not take place until 10 February 2021. After careful consideration, the Group decided it is more appropriate
for share right tranches which relate to 2020 financial period to be reflected in the 2020 financial statements and have
adjusted the comparatives accordingly.
The independent valuation carried out by Bentleys for the Notice of Meeting announced on 8 January 2021 was based on
share price of $0.015. The high valuation of the share-based payment expense (based on share price of $0.055) was due to
accounting valuation prescribed by accounting standard that takes into account the rapid appreciation in the share price,
due to extremely positive exploration results between the date when the Notice of Meeting was prepared when the share
price was $0.015, and the actual date when the shareholder meeting was held when the share price had appreciated to
$0.055 (Refer Note 31: Adjustment of Comparatives). The valuation prescribed by the accounting standard is based on
share price of 5.5c.
Effect of the adjustment:
Had the share rights tranches which relates to 2020 financial period are included in the 2020 financial period, the following
table demonstrates the effect of this change. The change does not have an impact on cash flow.
Remuneration of Key Management Personnel and
Executives (Remuneration Report)
D. Vilensky - share-based payments
C. Gale - share-based payments
B. Jones - share-based payments
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Restated
31/12/2020
207,465
952,303
205,336
Change
185,115
899,991
142,836
Previously
Reported
31/12/2020
22,350
52,312
62,500
1,365,104
1,227,942
137,162
Employee benefits expense
(1,942,830)
(1,227,942)
(714,888)
Profit/(Loss) continuing operations before tax
(2,399,776)
(1,227,942)
(1,171,834)
Profit/(Loss) for the year from continuing operations
(2,399,776)
(1,227,942)
(1,171,834)
Profit/(Loss) attributable to owners of the Parent Company
(2,399,776)
(1,227,942)
(1,171,834)
Net profit for the period
Total comprehensive profit/(loss) for the year attributable
to owners of the Parent Company
2,323,304
(1,227,942)
3,551,246
1,832,214
(1,227,942)
3,060,156
Basic earning/(loss) per share (Cents)
0.4
(0.2)
0.6
Diluted earning/(loss) per share (Cents)
0.2
(0.2)
0.4
Consolidated Statement of Financial Position
Equity
Contributed Equity
Reserves
Accumulated losses
56,467,554
12,162,161
(57,599,351)
11,030,365
-
1,227,942
(1,227,942)
56,467,554
10,934,219
(56,371,409)
-
11,030,365
68
Latin Resources
09. Director’s Declaration
Latin Resources Limited – Annual Report 2021
09 Directors’ Declaration
67
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 2021 are in accordance with the Corporations Act 2001, including:
i)
ii)
giving a true and fair view of the consolidated entity’s financial position as at 31 December
2021 and of its performance for the year ended on that date; and
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 2021.
On behalf of the Directors
David Vilensky
Chairman
Signed on 31 March 2022
2021 Annual Report
69
10. Auditors’ Independence Declaration
Latin Resources Limited – Annual Report 2021
68
10 Auditors’ Independence Declaration
70
Latin Resources
Latin Resources Limited – Annual Report 2021
11. Independent Auditor’s Report
11 Independent Auditor’s Report
69
2021 Annual Report
71
Latin Resources Limited – Annual Report 2021
70
72
Latin Resources
Latin Resources Limited – Annual Report 2021
71
Latin Resources Limited – Annual Report 2021
2021 Annual Report
73
72
74
Latin Resources
Latin Resources Limited – Annual Report 2021
73
Latin Resources Limited – Annual Report 2021
2021 Annual Report
75
74
76
Latin Resources
12. ASX Additional Information
Latin Resources Limited – Annual Report 2021
12 ASX Additional Information
75
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 28 March 2022.
CLASS OF EQUITY SECURITIES AND VOTING RIGHTS
Shares
There were 1,493,922,407 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 11,009,551 share rights on issue.
Option
The Company has the following classes of options on issue as at 28 March 2022 as detailed below. Options do not carry
any rights to vote.
Code
LRSOC
Class
Terms
Listed
Unlisted
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
Exercisable at $0.05 each and expiring on 31 March 2026
Number
402,629,921
6,666,667
8,000,000
10,000,000
25,000,000
35,000,000
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)
136
100
787
4,735
1,773
7,531
Share rights
(unlisted)
-
-
-
-
3
3
HOLDING LESS THAN A MARKETABLE PARCEL
Loan funded
shares
(unquoted)
-
-
-
-
3
3
Options
(listed)
21
24
21
201
339
606
Options
(unlisted)
-
-
-
-
5
4
284
-
-
58
-
Restricted securities
The Company has no Restricted Securities on issue.
Latin Resources Limited – Annual Report 2021
SUBSTANTIAL SHAREHOLDERS
2021 Annual Report
77
76
The substantial shareholders in the Company, as disclosed in substantial shareholding notices given to the company are:
Shareholder
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
Twenty largest holders of quoted shares
No. of Shares Held
134,899,511
91,639,029
% Held
9.01
6.12
Rank
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13
14.
15.
16.
17.
18.
19.
20.
20.
Total
Shareholder
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
UNRANDOM PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR BRYCE MATTHEW WILSON
COILENS CORPORATIONS PTY LTD
CS FOURTH NOMINEES PTY LIMITED
MR WILLIAM SCOTT ALDERS
CHRIS GALE + STEPHANIE GALE
MR GARETH JOHN EDWARDS
MR HOANG HUY HUYNH
MOONAH CAPITAL PTY LTD
MRS LYNDELL AYLEN + MR CHRISTOPHER RAMON AYLEN
LIND ASSET MANAGEMENT XII LLC
SUPERHERO NOMINEES PTY LTD
S3 CONSORTIUM PTY LTD
MR ANTHONY JASON MARSHALL
MR VINCENZO BRIZZI + MRS RITA LUCIA BRIZZI
GLENVAR NOMINEES PTY LTD
MR PAUL NAGLE
MR MEDHAT SAWIRES
Twenty largest holders of quoted options
Shareholder
CITICORP NOMINEES PTY LIMITED
UNRANDOM PTY LTD
MR PAUL NAGLE
MRS JIEYA ZHU
JSML PTY LTD
MR DAVID WAYNE AUSTIN + MRS CHRISTINA YIT LING AUSTIN
RAM SYSTEMS PTY LIMITED
EQUITY TRUSTEES SUPERANNUATION LIMITED
MR STEPHEN SHERRIN
MR SHERMAN ALVO FRANCIS PICARDO
MR JUSTIN MACDONALD AITKEN
MR GIUSEPPE BORGOMASTRO
MR WILLIAM JAY GOODAIR
MRS ANTOINETTE KATEHOS
TWO TOPS PTY LTD
MR JASON LEE BERRY
MR NING HAN + DR MIN RU QIU
JBM TRADING PTY LTD
QUID CAPITAL PTY LTD
MR GABRIEL GOVINDA HEWITT
Rank
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
134,899,511
91,639,029
25,619,088
24,532,047
20,196,575
17,554,908
14,675,309
14,107,558
12,505,406
10,330,000
10,001,700
9,000,000
8,000,000
7,500,000
7,412,841
7,110,000
7,000,000
6,270,556
6,250,000
6,000,000
6,000,000
446,604,528
No. of Options Held
103,887,934
15,833,250
7,400,000
6,601,891
6,400,000
5,000,000
5,000,000
4,806,348
4,500,000
4,100,000
4,075,000
4,050,000
4,000,000
4,000,000
4,000,000
3,640,000
3,600,000
3,400,000
3,361,459
3,281,250
200,937,132
% Held
9.01
6.12
1.71
1.64
1.35
1.17
0.98
0.94
0.83
0.69
0.67
0.60
0.53
0.50
0.49
0.47
0.47
0.42
0.42
0.40
0.40
29.81
% Held
25.80
3.93
1.84
1.64
1.59
1.24
1.24
1.19
1.12
1.02
1.01
1.01
0.99
0.99
0.99
0.90
0.89
0.84
0.83
0.81
49.91
78
Latin Resources
13. Tenement Schedule
Latin Resources Limited – Annual Report 2021
13 Tenement Schedule
PERU
DOCKERS 1
DOCKERS 2
DOCKERS 3
DOCKERS 4
FREMANTLE 7
LATIN MORRITO 1
LATIN MORRITO 2
VANDALS 1
VANDALS 2
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
MINAS GERAIS LITHIUM
BentesMineração1
Carlos André 1
Granitos Salinas 1
AUSTRALIA
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
NOOMBENBERRY
832515/2021
831219/2017
830691/2017
831799/2015
E77/2622
E77/2624
E77/2725
E77/2724
E70/5650
E70/5649
MOUNT CRAMPHORNE
E77/2719
BIG GREY
MANILDRA
BURDETT
YARARA2
BOREE CREEK
BC GUNDAGAI
ARGENTINA
Catamarca
LATINA 13
LATINA 23
LATINA 33
LATINA 43
LATINA 53
LATINA 63
LATINA 73
LATINA 83
LATINA 93
LATINA 103
LATINA 113
LATINA 123
E45/5246
EL9148
EL9172
EL8958
EL9273
EL9274
1/18
3/18
5/18
6/18
4/18
2/18
13/18
14/18
12/18
11/18
10/18
9/18
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Peru
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
WA
WA
WA
WA
WA
WA
WA
WA
NSW
NSW
NSW
NSW
NSW
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%
77
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
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 – Annual Report 2021
2021 Annual Report
79
78
ARGENTINA
Catamarca
LATINA 133
LATINA 143
LATINA 153
LATINA 163
LATINA 173
LATINA 183
LATINA 193
LATINA 203
LATINA 213
LATINA 223
San Luis
PORTEZUELO
ESTANZUELA
LA META
TILISARAO
BAJO DE VELIZ
DE GEMINIS
MARIA DEL HUERTO
8/18
7/18
163/18
207/18
208/18
209/18
210/18
211/18
212/18
213/18
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
NOTES
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
1Tenement Concession under Option Agreement
2Binding Farm-in Agreement with Mining and Energy Group Pty Ltd
3JV with Integra Capital SA
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
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
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