2019
ANNUAL REPORT
C O N T E N T S
Company Directory
Chairman’s Report
Directors’ Review of Activities
Corporate Governance Statement
Directors’ Report
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Declaration of Auditor’s Independence
Independent Auditor’s Report
Shareholder Information
Tenement Listing
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Web
www.legendmining.com.au
ASX Code
LEG – ordinary shares
Email
legend@legendmining.com.au
ACN
060 966 145
2 0 1 9 A N N U A L R E P O R T
C OM PA N Y D I R E C T O R Y
Directors
Lawyers
Michael William Atkins (Chairman)
Mark William Wilson (Managing Director)
Derek William Waterfield (Executive Director-Technical)
DLA Piper
Level 31, Central Park
PERTH WA 6000
Secretary
Tony Walsh
Registered Office
Level 1
8 Kings Park Road
WEST PERTH WA 6005
Telephone:
Facsimile:
(08) 9212 0600
(08) 9212 0611
Bankers
Australian and New Zealand Banking Group Ltd
1275 Hay Street
WEST PERTH WA 6005
Auditors
Ernst & Young
11 Mounts Bay Road
PERTH WA 6000
Home Exchange
Australian Securities Exchange
2 The Esplanade
PERTH WA 6000
Share Registry
Advanced Share Registry Services
110 Stirling Highway
NEDLANDS WA 6009
Telephone: (08) 9389 8033
(08) 9389 7871
Facsimile:
L E G E N D M I N I N G L IM I T E D
1
1
LEGEND MINING LIMITED C H A I RM A N ’ S R E P O R T
The 2019 year commenced with anticipation of diamond drilling of the Mawson Prospect (formerly Area D)
at our Rockford Project in the Fraser Range. We were confident that we had done the lead up work to the
highest scientific and geological standard which underscored our belief that we had a real prospect of new
discovery in the Fraser Range.
This optimism was well founded as in December 2019 we were pleased to report the outstanding results of the
diamond drilling at Mawson returning a 70.15m intersection @ 0.52% Ni, 0.36% Cu, 0.03% Co including a highly
significant interval of 14.9m @ 1.07% Ni, 0.75% Cu, 0.06% Co. Importantly this mineralisation starts at the relatively
shallow depth of 76 metres from surface, and contains a combination of massive, semi-massive, net-textured, vein
and disseminated three phase sulphides.
These assays and the subsequent structural observations have confirmed the drillhole is a new discovery for Legend,
and is within a large mineralised system.
It was also significant that in July 2019 we signed transformational agreements with IGO and Creasy Group to raise
$9.8M at a 20% premium to the average share price for 2019, and to enter into three new joint ventures relating to
the Rockford Project. The significance of these agreements should not be underestimated, as we now have in our
Company access to the combined Fraser Range ‘intellectual property’ of Legend, the Creasy Group and IGO, plus the
financial capacity to prosecute our exploration strategy.
It should be noted that, as exciting as the Mawson prospect is, Legend has a strategically important 3,088 km2
project area including advanced prospects at Shackleton, Worsley, Crean, Octagonal and Magnus.
2
2019 ANNUAL REPORT C H A I RM A N ’ S R E P O R T
The 2020 field season, which is scheduled to commence in March 2020, promises to be a very exciting time for
Legend shareholders.
I would like to take this opportunity to thank our Executive team, led by Mark Wilson, Derek Waterfield and Tony
Walsh, for the professional job they have done to patiently and systematically work to consistently high standards to
bring about this discovery at Mawson. In addition, I acknowledge the professionalism that the team has demonstrated
in dealing with complex corporate actions, including the IGO/Creasy deal and the negotiated resolution of the Jindal
Steel and Power receivable, all largely done with our in-house team and without external advisors.
I also acknowledge the support and encouragement of our major shareholder Mark Creasy and his technical team,
along with all our contractors for the work they have done to assist in bringing about such a great result.
Your Board thanks you the shareholders for your continuing support and we look forward to an exciting year ahead.
You have demonstrated extraordinary alignment to our corporate direction and for that we thank you.
Michael Atkins
Chairman
18 March 2020
3
LEGEND MINING LIMITED D I R E C T O R S ’ R E V I EW O F A C T I V I T I E S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
ROCKFORD PROJECT – Fraser Range District
(Nickel-Copper, Copper-Zinc-Silver, Gold)
The Rockford Project is located in the highly prospective Fraser Range district of Western Australia and
covers a total area of 3,088km2 (see Figures 1 & 2). Exploration is primarily focussed on Nova-Bollinger
style nickel-copper, along with volcanogenic massive sulphide (VMS) style zinc-copper-silver and
Tropicana style structurally controlled gold mineralisation.
The Rockford Project comprises 14 contiguous granted
exploration licences with a detailed breakdown of
ownership, area and manager given below:
• Legend (100%) 238km2;
• Legend (70%)/Creasy Group (30%) Three JVs covering
2,192km2 with Legend manager;
•
•
IGO (60%)/Creasy Group (30%)/Legend (10% free
carry) JV covering 634km2 with IGO manager;
IGO (70%)/Legend (30% free carry) JV covering 24km2
with IGO manager.
The Rockford Project covers a strike length of ~100km
over a regional gravity high “ridge” associated with
dense mafic/ultramafic intrusive rocks of the Fraser
Zone, within the larger Albany-Fraser Orogen. The Nova-
Bollinger deposit and the Silver Knight nickel-copper
discovery, both located within the Fraser Zone, are
situated on a similar tenor gravity ridge to that of the
Rockford Project.
Figure 1: Rockford Project Location
4
2019 ANNUAL REPORT During 2019, Legend’s exploration activities undertaken were on two fronts (see Figure 2);
• Advanced exploration at the Mawson prospect (formerly named Area D),
• Continued exploration over regional aeromagnetic and gravity targets, including Worsley and Crean prospects,
and newly purchased tenements E28/1716 and E28/1717 which contain the advanced Octagonal and Magnus prospects.
Figure 2: Exploration Prospect Locations
5
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 2019LEGEND MINING LIMITED Mawson Prospect – (formerly Area D)
The Greater Mawson prospect is characterised by a 16km x
6km aeromagnetic feature closely associated with a strong
4mgal gravity high (see Figure 3). It is currently interpreted
as a cluster of several intrusives. High power moving loop
(MLTEM) and fixed loop (FLTEM) electromagnetic surveys
have identified 17 significant bedrock conductors (D1-D17)
outlining a broad synformal structure. Highly anomalous
nickel-copper results in aircore drilling over a 400m x 200m
area were returned to the east of D5 associated with mafic/
ultramafic intrusive host rocks.
Subsequent follow up exploration during 2019 involved,
aircore drilling, an induced polarisation (IP) survey, a
low frequency (LF-MLTEM) survey and a comprehensive
interpretation of all data. Exploration culminated in a
three hole diamond drilling programme, with drillhole
RKDD007 intersecting 70.15m @ 0.52% Ni, 0.36% Cu,
0.03% Co. This intersection included a highly significant
interval of 14.9m @ 1.07% Ni, 0.75% Cu, 0.06% Co,
containing a combination of massive, semi-massive, net-
textured, vein and disseminated three phase sulphides
hosted by mafic/ultramafic intrusives.
Figure 3: Mawson Aircore Drillholes over MLTEM Conductors on Aeromagnetics
6
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 20192019 ANNUAL REPORT A brief summary of 2019 exploration activities and
results is provided below.
An infill aircore drilling programme comprising 64
holes for 5,963m focussing on the up-dip projection
of 14 previously identified MLTEM conductors (D1-D5,
D9-D17) was completed during April-May 2019 (see
Figure 3). The aircore returned anomalous nickel-copper
geochemistry in several holes and successfully met its
objective of providing bedrock lithology information
associated with the footwall, top and hanging wall
positions of the modelled MLTEM conductor plates. The
drilling also highlighted that favourable nickel-copper
mafic/ultramafic intrusive host rocks including gabbro,
gabbronorite and pyroxenite were more widespread
across the greater Mawson area than expected.
A 3D IP survey was commissioned in April 2019 targeting
previously identified MLTEM conductors with the aim
of providing chargeability/resistivity data to assist
geophysical interpretation and ranking of conductors
for diamond drill testing. Unfortunately the survey was
severely affected by electromagnetic coupling effects,
plus the thickness, lateral continuity and conductivity
of the cover restricted the depth penetration to <100m,
and the survey was subsequently cancelled.
A programme of innovative LF-MLTEM was then
completed over the previously identified D5 conductor
as well as testing a 400m x 200m area with anomalous
nickel-copper aircore geochemistry. The survey
comprised four 3km lines spaced 200m apart and
utilised a 200 amp transmitter with 200m x 200m loops.
A very low frequency of 0.0625Hz was used (compared to
conventional survey frequencies of 0.125-0.5 Hz) aimed
at providing detailed information on the character and
possible source of the conductor.
The survey was successful in better constraining the
original D5 conductor, plus also highlighting a second very
strong discrete feature associated within the previously
defined D1 conductor. The remodelled parameters for
these two conductors are provided below in Table 1, with
both features recommended for diamond drill follow up.
During November-December 2019 a diamond drilling
programme comprising three holes (RKDD005-007) for
1,423.2m was completed at Mawson. The three drillholes
were targeting the D1 and D5 LF-MLTEM conductors
and anomalous nickel-copper geochemistry in previous
aircore drillholes (see Figure 4).
Table 1: Mawson LF-MLTEM Conductors (Modelled Parameters)
Conductor
Conductance
Dimensions
Depth to Top
Plate Orientation
D5
D1
2,200S
~42,000S
600m x 500m
600m x 600m
~210m
~215m
750 W dip
750 NW dip
7
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 2019LEGEND MINING LIMITED RKDD005 – D5 Conductor
RKDD007 – Aircore Ni-Cu Geochemical Anomaly
Drillhole RKDD005 (586.2m) was drilled to test the D5
LF-MLTEM conductor and anomalous nickel-copper
geochemistry in previous aircore holes. The hole
intersected two gabbronorite intrusive units with the
upper intrusive intersecting disseminated and blebby
pyrrhotite-chalcopyrite-pentlandite sulphides between
110.3-119.9m. Elevated nickel and copper values were
returned throughout this sulphide interval with a best
intersection of 2.5m @ 0.05% Ni, 0.10% Cu, 0.01% Co
from 110.5m.
RKDD005 also intersected a broad package of
mixed metasediment/granulite containing multiple
graphite±pyrrhotite bands, which coincide with the
position of the modelled D5 conductor and confirmed
by down hole electromagnetic (DHTEM) surveying.
RKDD006 – D1 Conductor
Drillhole RKDD006 (473.7m) was drilled to test the
very strong ~42,000S D1 LF-MLTEM conductor. The
hole intersected a broad metasediment and granulite
package containing multiple thick graphitic bands
between 262-321m, which was confirmed as the
targeted conductor (albeit shallower than the modelled
depth of ~350m) by DHTEM surveying. No significant
assays were returned from the hole.
Drillhole RKDD007 (363.3m) was designed to test
beneath anomalous nickel-copper geochemistry
associated with pyrrhotite-chalcopyrite-pentlandite
intersected in previous aircore drillholes RKAC183
and RKAC225, and follow up encouraging results from
RKDD005. RKDD007 was collared in the northern part
of a 400m x 200m supergene Ni-Cu-Co blanket defined
by aircore drilling (see Figure 4).
RKDD007 intersected a suite of mafic/ultramafic
intrusives (containing significant sulphide intervals),
bedded/banded metasediment, a second mafic/
ultramafic intrusive package, followed by an open
ended interval of mafic intrusive (see Figure 5).
A significant nickel-copper-cobalt intersection of 14.9m @
1.07% Ni, 0.75% Cu, 0.06% Co from 114m, including 2.1m
@ 2.03% Ni, 1.34% Cu, 0.11% Co from 115.5m was returned
associated with the upper mafic/ultramafic intrusive (see
Figures 5 & 6). A combination of massive, semi-massive,
net-textured, vein and disseminated three phase
sulphides occur in this zone. The 14.9m zone is bounded
uphole and downhole by broad halos of disseminated
sulphides (88.2-114m and 128.9-158.35m) giving an overall
70.15m downhole sulphide interval (see Tables 2 & 3).
Figure 4: Mawson Diamond Drillhole Locations on Aeromagnetics
8
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 20192019 ANNUAL REPORT Table 2 summarises the 70.15m sulphide intersection
and provides a breakdown with respect to four distinct
sulphide zones, namely the upper disseminated, the
14.9m main sulphide zone, the 2.1m high grade interval,
and the lower disseminated zone.
Table 2: Diamond Drillhole RKDD007 – Significant Sulphide Intervals
Hole
From
To
Int.
Ni %
Cu %
Co %
Description
RKDD007
RKDD007
RKDD007
Incl.
88.2
88.2
114.0
115.5
158.35
70.15
114.0
128.9
117.6
25.8
14.9
2.1
RKDD007
128.9
158.35
29.45
0.52
0.43
1.07
2.03
0.32
0.36
0.30
0.75
1.34
0.21
0.03
Full sulphide intersection
0.03
Upper disseminated zone
0.06 Main sulphide zone
0.11
High grade zone
0.02
Lower disseminated zone
Figure 5: Drill Section 6,598,600N with Diamond Drillhole RKDD007
9
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 2019LEGEND MINING LIMITED Table 3 provides data for the 22 individual samples
related to the 14.9m intersection (114-128.9m) including
Au, Pd and Pt values, which are highly anomalous and
significantly increase the prospectivity of Mawson.
Examples of sulphide textures/occurrence are
presented in Photos 1-5 and include; disseminated,
semi-massive breccia, massive, extension vein and net-
textured.
Table 3: Diamond Drillhole RKDD007 – Significant Assay Results (114-128.9m)
Hole
From (m)
RKDD007
RKDD007
114
115
RKDD007
115.5
RKDD007
116.15
RKDD007
116.7
To
(m)
115
115.5
116.15
116.7
117.05
RKDD007
117.05
117.6
RKDD007
117.6
RKDD007
RKDD007
RKDD007
118.65
119.45
120.15
RKDD007
120.55
RKDD007
121.2
RKDD007
121.75
RKDD007
RKDD007
RKDD007
RKDD007
RKDD007
122.5
123.3
124
125
126
RKDD007
126.95
RKDD007
RKDD007
RKDD007
128
128.5
128.7
118.65
119.45
120.15
120.55
121.2
121.75
122.5
123.3
124
125
126
126.95
128
128.5
128.7
128.9
Int (m)
1.0
0.5
0.65
0.55
0.35
0.55
1.05
0.8
0.7
0.4
0.65
0.55
0.75
0.8
0.7
1.0
1.0
0.95
1.05
0.5
0.2
0.2
Ni
(%)
1.20
1.36
2.59
0.88
2.67
2.10
0.23
1.94
1.46
0.90
0.73
1.17
0.29
1.53
0.40
0.46
0.71
0.82
0.77
1.28
0.62
1.71
Cu
(%)
0.64
0.68
1.58
0.76
3.01
0.56
0.19
1.27
0.71
1.04
0.73
1.04
0.30
0.78
0.28
0.34
0.54
0.77
0.60
1.52
0.48
0.37
Co
(%)
0.06
0.07
0.13
0.05
0.15
0.11
0.02
0.10
0.08
0.05
0.05
0.06
0.02
0.09
0.03
0.03
0.04
0.05
0.04
0.07
0.04
0.09
MgO (%) Au (ppb) Pd (ppb) Pt (ppb)
6.61
4.27
2.67
8.25
4.58
6.19
10.87
5.05
7.88
12.20
14.65
11.18
17.86
9.73
19.26
18.64
16.36
16.17
14.93
10.93
15.65
8.33
43
61
24
79
28
36
43
109
166
171
651
534
128
225
254
238
558
348
131
103
44
39
46
56
69
34
26
29
13
45
43
56
157
195
29
259
71
69
189
113
52
46
20
24
3
9
2
1,311
3
3
8
720
55
83
93
81
14
9
12
53
39
104
3
5
7
5
Figure 6: Ni-Cu Sulphide Mineralisation in Drillhole RKDD007
2.1m @ 2.03% Ni, 1.34% Cu, 0.11% Co from 115.5m (NQ2 core)
1 0
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 20192019 ANNUAL REPORT 1
2
3
4
5
Photos 1-5: Examples of sulphide textures in diamond drillhole RKDD007 (NQ2 core ~5cm)
1) Olivine websterite with mc-po-cpy-vl (Upper disseminated zone, 112.7m)
2) Norite clasts within semi-massive sulphide breccia po-cpy-pn (Main sulphide zone, 115m)
3) Massive sulphide po-cpy-pn with minor gabbronorite (High grade zone, 116m)
4) Extension vein po-cpy-pn with cubes of py-mc (Main sulphide zone, 127m)
5) Net-textured po-pn-cpy in olivine websterite (Lower disseminated zone, 135m)
(Abbr: po-pyrrhotite, cpy-chalcopyrite, pn-pentlandite, vl-violarite, mc-marcasite, py-pyrite)
1 1
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 2019LEGEND MINING LIMITED Worsley Prospect - Volcanogenic Massive Sulphide (VMS) Cu-Zn-Ag
A five hole aircore traverse (including RKAC505) with
400m spaced holes was completed in November 2018
originally designed to provide bedrock lithological and
geochemical information over the Worsley conductor
defined by previous MLTEM surveying. Drillhole
RKAC505 intersected 49m of ferruginous saprolite/
saprock with elevated Cu-Zn-Ag and trace amounts
of pyrite importantly coinciding with the up dip
projection of the Worsley conductor plate (see Figure 7).
Subsequent infill aircore around RKAC505 in March 2019
returned anomalous Zn-Cu-Fe-Ag geochemistry in holes
RKAC526 and RKAC594, along with a broad suite of VMS
pathfinder elements (see Table 4).
Figure 7: Worsley Aircore Drillholes and MLTEM Conductor on Aeromagnetics
Table 4: Worsley - Anomalous Multi-Element Aircore Results
Hole
From
RKAC526
RKAC526
RKAC594
RKAC594
Incl.
*RKAC505
28
40
24
40
52
88
To
40
60
40
68
56
97 EOH
Int
12
20
16
28
4
9
Zn %
Cu %
Ni % Fe % Ag g/t Description
0.03
0.11
0.05
0.19
0.71
0.06
0.09
0.02
0.01
0.02
0.02
0.09
0.01
0.02
0.01
0.03
0.11
0.01
21.58
17.64
28.28
16.38
15.92
22.94
0.26
0.05
0.07
1.37
1.71
1.47
Fe-rich Saprolite
Saprock/Mafic Granulite
Fe-rich Saprolite
Saprock/Intermed. Granulite
Intermed. Granulite
Mafic granulite
*RKAC505 - reported 5 December 2018
1 2
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 20192019 ANNUAL REPORT There is a clear association between the modelled
position/orientation of the Worsley conductor and the
anomalous geochemistry defined by two ferruginous
zones (see Figure 8). Further MLTEM surveying is
required to better constrain the conductor prior to
designing a diamond drill programme to test the
conductor at depth.
In addition to the multi-element signature described
above, the recent drilling at Worsley also returned
gold values >0.1 g/t Au in five drillholes (see Table
5). These anomalous results, which are over 10 times
background, define a >250m strike length and are also
closely associated with the top of the modelled Worsley
conductor (see Figure 7).
The multi-element assay results from the recent and
previous aircore drilling has greatly enhanced the
prospectivity of Worsley with respect to possible VMS
style mineralisation. The combination of elevated Zn-
Cu-Ag and a suite of VMS pathfinder elements in close
association with the modelled position of the Worsley
conductor further supports this prospectivity.
Figure 8: Drill Section 6,556,500N Showing Anomalous Geochemical Zones Relative to
Position of Modelled MLTEM Conductor
Table 5: Worsley - Anomalous Gold Aircore Results
Hole
From
RKAC592
RKAC592
RKAC594
RKAC595
RKAC597
RKAC599
RKAC599
RKAC599
72
92
88
72
120
40
56
80
To
76
96
90 EOH
80
122 EOH
44
60
84
Int
Au g/t
Description
4
4
2
8
2
4
4
4
0.10
0.10
0.15
0.15
0.11
0.10
0.24
0.14
Saprock / Felsic Granulite
Felsic Granulite
Mafic Granulite
Saprolite/ Saprock
Intermed. Granulite
Saprolite
Saprolite
Felsic Granulite
1 3
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 2019LEGEND MINING LIMITED Crean Prospect - Mafic/ultramafic related magmatic Ni-Cu
The Crean prospect lies within an interpreted structural
corridor near the western margin of the Fraser Zone (see
Figure 2) and is considered prospective for nickel-copper
mineralisation similar to Nova-Bollinger and Silver Knight.
An eight hole traverse with holes at 400m spacing was
completed in November 2018 originally designed to
test a coincident aeromagnetic low and gravity high
interpreted as a possible mafic/ultramafic (see Figure 9).
Drillhole RKAC520 intersected an olivine-rich ultramafic
intrusive with strong silica/goethite alteration and
returned an intersection of 11m @ 0.42% Ni, 0.01% Cu,
0.03% Co from 32m to end of hole, including a maximum
value of 3m @ 0.71% Ni from 40m to end of hole. The
full extent of this anomalous interval was not tested,
as the aircore rig was unable to penetrate the highly
siliceous ultramafic bedrock.
Figure 9: Crean Aircore Drillholes on Aeromagnetics
Ten infill aircore drillholes at 50/100/200m spacings
around RKAC520 were subsequently completed in
March 2019 to define the extent of the anomalous
nickel geochemistry (see Figure 9). Drillholes RKAC538
and RKAC539 drilled 100m and 200m south of RKAC520
respectively, both returned broad intervals with
anomalous nickel associated with the same olivine-rich
ultramafic unit (see Table 6).
The anomalous nickel footprint around drillhole
RKAC520 is directly related to the favourable ultramafic
intrusive host rock and is at least 200m long and
remains open to the south. A MLTEM survey is planned
over Crean aimed at identifying conductors related to
possible massive nickel-copper sulphide mineralisation.
Table 6: Crean - Anomalous Aircore Drillhole Results
Hole
From
RKAC538
RKAC539
*RKAC520
Incl.
16
20
32
40
To
44
54 EOH
43
43 EOH
Int
28
34
11
3
Ni %
0.17
0.19
0.42
0.71
Cu %
0.02
<0.01
0.01
0.01
Co %
Cr % Description
0.03
0.03
0.03
0.04
0.83
Saprolite, Fe/Si-rich ultramafic
0.63
Saprolite/saprock ultramafic
0.62
Saprolite/saprock ultramafic
1.14 Olivine-rich ultramafic
*RKAC520 - reported 5 December 2018
1 4
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 20192019 ANNUAL REPORT
CORPORATE
Transformational Agreements
On 9 July 2019, Legend signed transformational
agreements to raise $9.8M at a 20% premium to the
average share price for 2019, and to enter into three new
joint ventures (Ponton JVA 2019, Rockford JVA 2019 and
Legend/IGO JVA 2019) relating to its Rockford Project
(see Figure 10). Full details of these agreements are
provided in Legend’s 9 July 2019 and 27 August 2019
ASX announcements.
Annual Tax Return – R & D Claim
In October 2019 Legend submitted its 2019 annual tax
return, which included a research and development
(R&D) claim for reimbursement of $1.26M. The
cornerstone of Legend’s exploration activities at the
Rockford Project is using innovative geo-sensing MLTEM
surveys. These surveys qualify Legend for R&D cash
reimbursement for these surveys and other associated
activities via the annual tax return. In December 2019,
Legend received the R&D refund of $1.26M.
Cameroon Project Sale
On 8 May 2019 it was announced that Legend and Jindal
Mining & Exploration Limited had agreed to a payment
schedule for the final amount of $3 million owing to
Legend from the sale of the Cameroon Iron Ore project.
Payments of $250,000 per month are scheduled to
be paid commencing 31 October 2019 until 31 August
2020 (11 payments) with the final payment of $250,000
on 15 October 2020, totalling $3 million in full. The
outstanding amounts owing will continue to attract
interest at the rate of 4% per annum paid quarterly.
As at 31 January 2020, Legend has received $750,000
(three $250,000 monthly payments) and interest of
$32,658 from Jindal Steel and Power.
Figure 10: Rockford Project
– Tenure Post New JV Agreements
The information in this report that relates to Exploration Results is based on information compiled by Mr Derek Waterfield, a
Member of the Australian Institute of Geoscientists and a full time employee of Legend Mining Limited. Mr Waterfield has sufficient
experience that is relevant to the styles of mineralisation and types of deposit under consideration, and to the activity being
undertaken, 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” (JORC Code). Mr Waterfield consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
The information in this report that relates to Legend’s Exploration Results is a compilation of previously released to ASX by Legend
Mining (21 March 2019, 1 & 13 May 2019, 5 June 2019, 9 & 15 July 2019, 27 August 2019, 12 & 27 September 2019, 10 October 2019, 4, 19
& 27 November 2019, 9 December 2019, 15 & 23 January 2020) and Mr Derek Waterfield consents to the inclusion of these Results in
this report. Mr Waterfield has advised that this consent remains in place for subsequent releases by Legend of the same information
in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent. Legend
confirms that it is not aware of any new information or data that materially affects the information included in the original market
announcements and that all material assumptions and technical parameters in the market announcements continue to apply and have
not materially changed. Legend confirms that the form and context in which the Competent Person’s findings are presented have not
been materially modified from the original market announcements.
1 5
DIRECTORS’ REVIEW OF ACTIVITIESFor the year ended 31 December 2019LEGEND MINING LIMITED
CO R P O R A T E GO V E R N AN C E S T A T EM E N T
Legend Mining Limited and the Board are committed to achieving and demonstrating the highest standards of
corporate governance. Legend Mining Limited has reviewed its corporate governance practices against the
Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate
Governance Council.
The 2019 Corporate Governance Statement was approved by the Board on 18 March 2020 and is current as at
20 March 2020. A description of the Group’s current corporate governance practices is set out in the Group’s
Corporate Governance Statement which can be viewed at www.legendmining.com.au
16
D I R E C TO R S ’ R E POR T
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
The Directors submit their report for the year ended 31 December 2019.
1.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of this report are as
below. Directors were in office for this entire period unless otherwise stated.
Michael Atkins (Chairman, Non-Executive Director)
Mark Wilson (Managing Director)
Derek Waterfield (Executive Director - Technical)
2.
INFORMATION ON DIRECTORS AND COMPANY SECRETARY
Michael Atkins, BComm FAICD, is a Fellow of the Australian Institute of Company Directors and was previously a Fellow of the
Institute of Chartered Accountants in Australia.
Since 1987 he has been involved in the executive management and as a non-executive Chairman of numerous publicly listed
resource companies with operations in Australia, USA, South East Asia and Africa, including as managing director of Claremont
Petroleum NL and Beach Petroleum NL during their reconstruction phase, and as founder and executive chairman of Botswana
gold company Gallery Gold Ltd. Michael has been non-executive Chairman of numerous ASX listed companies, including
Westgold Resources and Azumah Resources.
He is currently a Senior Corporate Advisor to Canaccord Genuity (Australia) Ltd, and non-executive chairman of Castle Minerals
Ltd, and non-executive director of SRG Global Limited, both ASX listed. Mr Atkins was non-executive Chairman of Azumah
Resources Limited until his resignation in December 2019 and has not held any other former public company directorships in
the last three years.
Mark Wilson, MIEAust CPEng, is a Member of the Institution of Engineers, Australia and a Chartered Professional Engineer
with an Associateship in Civil Engineering from Curtin University in Western Australia. He has an extensive business
background, mainly in corporate management and project engineering. This has included site management of remote
construction projects and ten years of commercial construction as a founding proprietor of a Perth based company. Since 1995
he has held executive, non-executive, consulting and owner roles in resource focused companies. During the past three years,
Mr Wilson has also served as non-executive director of Australian listed company Tanga Resources Limited (resigned July 2017).
Derek Waterfield, BSc(Hons), is a Member of the Australian Institute of Geoscientists and a graduate of the University of
Queensland. He has over 30 years experience in gold, base metals, iron ore, nickel and uranium exploration throughout
Australia and Cameroon.
He started his career with CRA Exploration Pty Ltd and has held senior exploration leadership positions with Normandy Mining
and Newmont Australia, and led the team that discovered the Moolart Well gold deposit in the Duketon Belt 350km north of
Kalgoorlie. He was Exploration Manager at Legend Mining for five years managing Legend’s WA and Cameroon projects. More
recently he has been Exploration Manager for Enterprise Metals Ltd, responsible for gold, iron ore, uranium and base metal
exploration in WA. Mr Waterfield has not held any former public company directorships in the last three years.
Tony Walsh, BComm, MBA, FCIS, was appointed Company Secretary effective on 12 December 2016.
Mr Walsh has over 30 years experience in dealing with listed companies, ASX, ASIC and corporate transactions including 14
years with the ASX in Perth where he acted as ASX liaison with the JORC committee, four years as Chairman of an ASX listed
mining explorer and as a director of a London AIM listed explorer. Tony is also currently Company Secretary of Battery Minerals
Mining Ltd and Magmatic Resources Limited, and is a Director of XCD Energy Limited.
Mr Walsh is a member of the Australian Institute of Company Directors, a Fellow of the Governance Institute of Australia, the
Institute of Chartered Secretaries and the Institute of Chartered Accountants in Australia.
He is currently a non-executive director of the Women’s and Infants Research Foundation.
3.
EARNINGS PER SHARE
Basic loss per share:
Diluted loss per share:
4.
DIVIDENDS
0.0152cents
0.0152cents
No dividend has been paid or recommended during the financial year.
17
D I R E C TO R S ’ R E POR T
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
5.
CORPORATE INFORMATION
Corporate Structure
Legend Mining Limited is a Company limited by shares that is incorporated and domiciled in Australia. Legend Mining Limited
has prepared a consolidated financial report incorporating the entities that it controlled during the financial year, which are
outlined in the following illustration of the Group’s corporate structure.
Legend Mining Limited
100%
100%
Gibson Metals Pty Ltd*
Legend Cameroon Pty Ltd
*On 29 January 2020 Gibson Metals Pty Ltd was deregistered
Nature of Operations and Principal Activities
The principal activities during the year of the entities within the consolidated entity were:
•
exploration for nickel and copper deposits in Australia.
Employees
The consolidated entity had a staff of five employees at 31 December 2019 (2018: four employees).
6. OPERATING AND FINANCIAL REVIEW
Results of Operations
The net loss after income tax of the consolidated entity for the year was $401,801 (2018: loss of $1,267,602).
Review of Operations
The Directors’ Review of Activities for the year ended 31 December 2019 is contained on pages 3 to 15 of the Annual Report.
Summarised Operating Results
Deferred Exploration Costs: Total acquisition costs and deferred expenditure on tenements capitalised during the year, net of
amounts reimbursed through the research and development incentive grant amounted to $2,474,909 (2018: $336,032).
7.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes during the year.
8.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The consolidated entity’s operations are subject to various environmental regulations under both Commonwealth and State
legislation in Australia. The Directors have complied with these regulations and are not aware of any breaches of the legislation
during the financial year which are material in nature.
9.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Likely developments in the operations of the consolidated entity, and expected results of those operations in subsequent
financial years have been discussed, where appropriate, in the Chairman’s Report and Review of Activities.
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D I R E C TO R S ’ R E POR T
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
10. SHARE OPTIONS
Unissued shares
As at the date of this report, there were 387,111,111 unissued ordinary shares under options. Refer to note 17 for further
details of the options outstanding at 31 December 2019.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related
body corporate.
Shares issued as a result of the exercise of options
There were no shares issued as a result of the exercise of options during the financial year.
11. SIGNIFICANT EVENTS AFTER THE BALANCE DATE
After the balance sheet date the Company has seen macro-economic uncertainty with regards to prices and demand for nickel
and copper as a result of the COVID-19 (coronavirus) outbreak. Furthermore, recent global developments and uncertainty in
nickel and copper in March 2020 have caused further abnormally large volatility in commodity markets. The scale and duration
of these developments remain uncertain but could impact the Company’s cash flow and financial condition.
No other matters or circumstance has arisen since the end of the financial year which has significantly affected, or may
significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent
financial years.
12.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has not, during or since the financial year, in respect of any person who is or has been an officer of the Company
or a related body corporate:
(i)
(ii)
indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs
and expenses in successfully defending legal proceedings; or
paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs
or expenses to defend legal proceedings.
13.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of the terms
of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment
has been made to indemnify Ernst & Young during or since the financial year.
14. REMUNERATION REPORT (AUDITED)
The compensation arrangements in place for key management personnel of Legend are set out below:
Details of key management personnel
Directors
M Atkins
M Wilson
D Waterfield
Chairman (non-executive)
Managing Director
Executive Director - Technical
Compensation Philosophy
The performance of the Company depends upon the quality of its directors and executives. To prosper, the Company must
attract, motivate and retain highly skilled directors and executives.
The Company embodies the following principle in its compensation framework:
•
Provide competitive rewards to attract high-calibre executives.
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D I R E C TO R S ’ R E POR T
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
14.
REMUNERATION REPORT (CONTD)
Group Performance
The Group’s financial performance for the last five years has been as follows:
Revenue
Net loss after tax
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Net assets
Share price (at balance date)
December
2019
$231,690
($401,801)
(0.0152)
(0.0152)
$24,795,193
$0.09
December
2018
$223,469
($1,267,602)
(0.062)
(0.062)
$13,082,152
$0.03
December
2017
$267,989
($567,068)
(0.028)
(0.028)
$14,349,754
$0.03
December
2016
$407,180
($2,599,591)
(0.128)
(0.128)
$14,734,111
$0.01
December
2015
$575,162
($1,311,284)
(0.066)
(0.066)
$17,127,502
$0.008
As the Group is currently in exploration and evaluation phases, historical earnings are not yet an accurate reflection of Group
performance and cannot be used as a long term incentive measure. Consideration of the Group’s earnings will be more relevant
as the Group matures.
Remuneration Committee
Due to the size of Legend, remuneration is considered by the full Board. The Board reviews remuneration packages and policies
applicable to the directors and senior executives. Remuneration levels are competitively set to attract the most qualified and
experienced directors and senior executives.
Compensation Structure
In accordance with best practice corporate governance, the structure of non-executive director and other senior manager
remuneration is separate and distinct.
Objective of Non-Executive Director Compensation
The Board seeks to set aggregate compensation at a level that provides the company with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
Structure of Non-Executive Director Compensation
The Constitution and the ASX Listing Rules specify that the aggregate compensation of non-executive directors shall be
determined from time to time by a general meeting. An amount not exceeding the amount determined is then divided between
the directors as agreed. The latest determination was at the Annual General Meeting held on 16 May 2012 when shareholders
approved the aggregate remuneration of $300,000 per year.
The amount of aggregate compensation sought to be approved by shareholders and the manner in which it is apportioned
amongst directors is reviewed annually. The Board considers the fees paid to non-executive directors of comparable companies
when undertaking the annual review process.
Objective of Executive Director Compensation
The company aims to reward executives with a level and mix of compensation commensurate with their position and
responsibilities within the company and so as to:
•
•
•
reward executives for Company and individual performance against targets set by reference to appropriate benchmarks;
align the interests of executives with those of shareholders; and
ensure total compensation is competitive by market standards.
Structure of Executive Director Compensation
In determining the level and make-up of executive compensation, the Board may engage external consultants to provide
independent advice. No external advice was obtained during the 2019 year.
It is the Board’s policy that an employment contract is entered into with key executives.
Compensation consists of a fixed compensation element and the issue of options from time to time at the directors’ discretion
under the Employee Share Option Plan. Any issue of options to directors under the Employee Share Option Plan requires prior
shareholder approval.
20
D I R E C TO R S ’ R E POR T
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
14.
REMUNERATION REPORT (CONTD)
Fixed Compensation
Fixed compensation is reviewed annually by the Board. The process consists of a review of company and individual performance,
relevant comparative compensation in the market and internally and, where appropriate, external advice on policies and
practices. No external advice was obtained during the 2019 year.
Structure
Executive Directors are given the opportunity to receive their fixed (primary) compensation in a variety of forms including cash
and fringe benefits. It is intended that the manner of payment chosen will be optimal for the recipient without creating undue
cost for the Company.
Employment Contracts
The Managing Director, Mr Mark Wilson, is employed under contract. The current contract commenced on 1 July 2011 and is
effective until terminated in accordance with the contract. The significant terms of the contract are:
• Mr Wilson receives remuneration of $320,000 per annum exclusive of superannuation;
• Mr Wilson may resign from his position and thus terminate his contract by giving one month written notice;
•
•
The company may terminate Mr Wilson’s employment contract by providing six months’ written notice if the position has
become redundant, or three months’ written notice in all other circumstances; and
The Company may terminate Mr Wilson’s contract at any time without notice if serious misconduct has occurred.
Mr Michael Atkins, is employed under contract. The current contract commenced on 1 July 2012 and is effective until
terminated in accordance with the contract. The significant terms of the contract are:
• Mr Atkins receives remuneration of $80,000 per annum exclusive of superannuation;
• Mr Atkins’ agreement provides for engagement of consultancy services outside of the scope of the ordinary duties of a
non-executive chairman. In addition to the director’s fees above, Mr Atkins is paid $2,000 per day (inclusive of
superannuation) for the provision of these consultancy services.
• Mr Atkins’ appointment is contingent upon satisfactory performance and successful re-election by shareholders of the
Company;
• Mr Atkins may resign from his position and thus terminate his contract by giving written notice; and
•
The Company may terminate Mr Atkins’ contract by way of resolution of the Company’s shareholders.
Mr Derek Waterfield, is employed under contract. The current contract commenced on 1 November 2012 and is effective
until terminated in accordance with the contract. The significant terms of the contract are:
• Mr Waterfield receives remuneration of $220,000 per annum exclusive of superannuation;
• Mr Waterfield may resign from his position and thus terminate his contract by giving one month written notice;
•
•
The company may terminate Mr Waterfield’s employment contract by providing three months’ written notice if the
position has become redundant, or one months’ written notice in all other circumstances; and
The Company may terminate Mr Waterfield’s contract at any time without notice if serious misconduct has occurred.
Employee Share Option Plan
The Board has in place an Employee Share Option Plan (ESOP) allowing share options to be issued to eligible employees in
order to provide them with an incentive to provide growth and value to all shareholders.
At a General Meeting on 4 December 2009 shareholders approved the implementation of Employee Share Option Plan No 3.
The plan differed from the previous plans in that there is no 12 month vesting period on any new options received under plan
No 3. Removal of the vesting period requirement allows the Board maximum flexibility to make offers of options on the terms
of the plans appropriate at the time, having regard for the tax environment which the proposed participants find themselves
in when an offer of options is received from the company.
The Company plans to seek shareholder approval for a new ESOP at its 2020 Annual General Meeting scheduled to be held in
May 2020.
21
D I R E C TO R S ’ R E POR T
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
14.
REMUNERATION REPORT (CONTD)
Share-based Payments
During the year the Company did not grant any incentive options to directors (2018: $NIL).
Compensation of Key Management Personnel for Years Ended 31 December 2019 and 31 December 2018
Name
Year
Short term
Salary and
Fees(1)
$
Post-
Employment
Super-
annuation
$
Long-term
benefits
Long
Service
Leave
$
Share
based
payments
options
$
Total
$
% of
compen-
sation
granted as
options
% of
performance
related
remuneration
Director
M Atkins
M Wilson
D Waterfield
Total
2019
2018
2019
2018
2019
2018
2019
2018
80,000
80,000
338,462
332,308
230,154
236,923
648,616
649,231
7,600
7,600
22,300
30,400
20,900
20,900
50,800
58,900
-
-
5,333
5,333
3,667
3,667
9,000
9,000
-
-
-
-
-
-
-
-
87,600
87,600
366.095
368,041
254,721
261,490
708,416
717,131
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) Short term salary and fees includes net movements in annual leave provisions.
Option holdings of Key Management Personnel
Options held in Legend Mining Limited (number) during the year ended 31 December 2019
Name
Balance at
beginning
of year
1 Jan 2019
Granted as
Remuneration
Exercised
during
the year
Net Change
Other
Balance at
end
of year
31 Dec 2019
Not Vested
& Not
Exercisable
Vested &
Exercisable
Directors
M Atkins
M Wilson
D Waterfield
Total
10,000,000
40,000,000
20,000,000
70,000,000
-
-
-
-
-
-
-
-
-
-
-
-
10,000,000
40,000,000
20,000,000
70,000,000
-
-
-
-
10,000,000
40,000,000
20,000,000
70,000,000
Shareholdings of Key Management Personnel(1)(2)
Shares held in Legend Mining Limited (number) during the year ended 31 December 2019
Name
Balance
1 Jan 19
Granted as
remuneration
On exercise
of options
Net change
other(2)
Balance
31 Dec 19
Directors
M Atkins
(Windamurah P/L), (Alkali Exploration P/L)
M Wilson
(Chester Nominees WA P/L)
(Mrs MM Wilson)
D Waterfield
Total
7,108,334
128,748,200
1,000,000
136,856,534
Includes shares held directly, indirectly and beneficially by KMP.
(1)
(2) On-market purchases made during the year.
END OF REMUNERATION REPORT
-
-
-
-
-
-
-
-
-
-
-
-
7,108,334
128,748,200
1,000,000
136,856,534
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D I R E C TO R S ’ R E POR T
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
15. DIRECTORS’ MEETINGS
The number of Meetings of Directors held during the year and the number of Meetings attended by each Director was as
follows:
Name
Attended by:
Michael Atkins
Mark Wilson
Derek Waterfield
16. DIRECTORS’ INTERESTS
No. of Board
Meetings
Attended
No. of Meetings
Held Whilst A
Director
No of Audit
Committee
Meetings Attended
No of Audit
Committee
Meetings Held
8
8
8
8
8
8
2
2
2
2
2
2
The relevant interest of each director in the shares and options issued by the company in accordance with the Corporations
Act 2001, at the date of signing this report is as follows:
Name
M Atkins
(Windamurah P/L), (Alkali Exploration P/L)
M Wilson
(Chester Nominees WA P/L)
(Mrs MM Wilson) (SMT Investments WA P/L)
D Waterfield
Ordinary shares
7,108,334
Options over
ordinary shares
10,000,000
129,748,200
40,000,000
1,000,000
20,000,000
17. AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Non-audit services
There were no non-audit services provided by the Company’s auditor, Ernst & Young during the 2019 financial year.
We have received the Declaration of Auditor Independence from Ernst & Young, the Company’s Auditor. This is available for
review on page 52 and forms part of this report.
SIGNED in accordance with a Resolution of the Directors on behalf of the Board
_______________________________
Mark Wilson
Managing Director
Dated this 20th day of March 2020
23
C O N S O L I D A T E D S T A T EM E N T O F C OM P R E H E N S I V E I N C OM E
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
Note
4(a)
4(b)
4(b)
4(c)
4(d)
4(d)
4(e)
18(a)
6
Finance revenue
Net gain/(loss) on financial assets fair value through profit and loss
Other Income
Employee benefit expenses
Financial expenses
Other expenses
Corporate and administration expenses
Share-based payments expense
Loss before income tax
Income tax benefit
Net loss for the year attributable to Members of Legend Mining
Limited
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year attributable to Members of
Legend Mining Limited
2019
$
231,690
30,994
750,000
(306,383)
(5,160)
(52,364)
(838,678)
(211,900)
(401,801)
-
2018
$
223,469
(172,588)
-
(301,634)
-
(47,097)
(969,752)
-
(1,267,602)
-
(401,801)
(1,267,602)
-
-
(401,801)
(1,267,602)
EARNINGS PER SHARE (cents per share)
Basic loss per share
Diluted loss per share
5
5
(0.0152)
(0.0152)
(0.062)
(0.062)
The accompanying notes form part of these financial statements
24
C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N
A s a t 3 1 D e c e m b e r 2 0 1 9
ASSETS
Current Assets
Cash and cash equivalents
Receivables
Other financial assets
Total Current Assets
Non-current Assets
Other financial assets
Property, plant & equipment
Right of use assets
Deferred exploration costs
Total Non-current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Employee benefit provisions
Lease liability
Total Current Liabilities
Non-current Liabilities
Provisions
Lease liability
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Equity attributable to equity holders of the parent
Contributed equity
Share option premium reserve
Accumulated losses
TOTAL EQUITY
Note
2019
$
2018
$
8
9
10
10
11
21(b)
12
13
14
13
14
13
15
16
10,133,887
333,471
148,273
10,615,631
5,775
84,777
81,345
14,622,473
14,794,370
25,410,001
230,464
195,148
67,234
492,846
108,258
13,704
121,962
614,808
24,795,193
3,323,829
64,012
117,279
3,505,120
5,775
109,099
-
10,012,564
10,127,438
13,632,558
288,483
164,498
-
452,981
97,425
-
97,425
550,406
13,082,152
72,479,184
23,615,178
(71,299,169)
24,795,193
60,711,242
23,268,278
(70,897,368)
13,082,152
The accompanying notes form part of these financial statements
25
C O N S O L I D A T E D S T A T E M E N T O F C A S H F L OW S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
CASH FLOWS FROM OPERATING ACTIVITIES
Note
Payments to suppliers and employees
Proceeds from Jindal Receivable
Interest received
Payment for financial assets
2019
$
2018
$
(1,301,781)
(1,062,034)
500,000
188,429
(6,599)
-
251,932
-
Net cash flows used in operating activities
20(ii)
(619,951)
(810,102)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Payments for deferred exploration costs
Receipt of research and development tax incentive grant
11
(7,500)
(3,519,570)
1,259,160
-
(2,921,850)
2,585,817
Net cash flows used in investing activities
(2,267,910)
(336,033)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Capital Raising
Payment of transaction costs relating to capital raising
Principal elements of lease payments
Net cash flows used in investing activities
9,800,000
(32,058)
(70,023)
9,697,919
-
-
-
(336,033)
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at end of year
20(i)
6,810,058
3,323,829
10,133,887
(1,146,135)
4,469,964
3,323,829
The accompanying notes form part of these financial statement
26
C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
Contributed
Equity
Share
Option
Premium
Reserve
Accumulated
Losses
Total Equity
At 1 January 2019
60,711,242
23,268,278
(70,897,368)
13,082,152
Loss for the year
Total comprehensive loss for the
year
Issued capital
Capital raising cost
Contingent shares issued for
tenement acquisition
Employee and director options
At 31 December 2019
-
-
11,800,000
(32,058)
-
-
-
-
-
-
135,000
211,900
(401,801)
(401,801)
(401,801)
(401,801)
-
-
-
-
11,800,000
(32,058)
135,000
211,900
72,479,184
23,615,178
(71,299,169)
24,795,193
At 1 January 2018
60,711,242
23,268,278
(69,629,766)
14,349,754
Loss for the year
Total comprehensive loss for the
year
At 31 December 2018
-
-
-
-
(1,267,602)
(1,267,602)
(1,267,602)
60,711,242
23,268,278
(70,897,368)
The accompanying notes form part of these financial statements
(1,267,602)
13,082,152
27
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NOTE 1:
CORPORATE INFORMATION
The consolidated financial statements of Legend Mining Limited and its subsidiaries (collectively, the Group) for the year ended
31 December 2019 were authorised for issue in accordance with a resolution of the Directors on 18 March 2020.
Legend Mining Limited (the Company or the parent) is a for profit 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 note 3.
NOTE 2:
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 assets carried
at fair value.
The financial report is presented in Australian dollars and all values are expressed as whole dollars.
The consolidated financial statements have been prepared on a going concern basis which assumes the continuity of normal
business activity and the realisation of assets and settlement of liabilities in the ordinary course of business.
The financial report also complies with International Financial Reporting Standards (‘IFRS’) as issued by the International
Accounting Standards Board.
Changes in accounting policy, disclosures, standards and interpretations
The accounting policies adopted are consistent with those of the previous financial year except for the impact of new and
amended accounting standards and interpretations as discussed below.
(i)
New and amended standards and interpretations
The Group applied AASB 16 Leases and AASB Interpretation 23 Uncertainty over Income Tax Treatment for the first time. The
nature and effect of the changes as a result of adoption of these new accounting standards are described below.
Several other amendments and interpretations apply for the first time in 2019, but do not have an impact on the consolidated
financial statements of the Group.
AASB 16 Leases
AASB 16 was issued in February 2016 and it replaces AASB 117 Leases, Interpretation 4 Determining whether an Arrangement
contains a Lease, Interpretation 115 Operating Leases-Incentives and Interpretation 127 Evaluating the Substance of Transactions
Involving the Legal Form of a Lease. AASB 16 sets out the principles for the recognition, measurement, presentation and disclosure
of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance
leases under AASB 117.
The application date of AASB 16 for the Group was 1 January 2019. The key features of AASB 16 are as follows:
Lessee accounting
• Lessees are required to recognise assets and liabilities for all leases except when entities elect to apply the short-term or low-
value recognition exemptions A lessee measures right-of-use assets similarly to other non-financial assets and lease liabilities
similarly to other financial liabilities.
• Assets and liabilities arising from a lease are initially measured on a present value basis. The measurement includes non-
cancellable lease payments (including inflation-linked payments), and also includes payments to be made in optional periods if the
lessee is reasonably certain to exercise an option to extend the lease, or not to exercise an option to terminate the lease.
• AASB 16 contains disclosure requirements for lessees.
The Group has adopted AASB 16 using the modified retrospective method, recognising right of use assets equivalent to the lease
liability at transition. The Group has elected to use the transition practical expedient allowed for lease contracts for which the
lease terms ends within 12 months as of the date of initial application. The Group has elected to apply the standard to contracts
that were previously identified as leases applying AASB 117 and AASB Interpretation 4. The Group will therefore not apply the
standard to contracts that were not previously identified as containing a lease applying AASB 117 and AASB Interpretation 4.
A lease liability and corresponding right of use asset with a value of $178,332 was recognised as at 1 January 2019 in relation to
premises leased by the Group. The Group has applied the hindsight practical expedient in determining this balance where contracts
contained options to extend the lease.
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NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
The weighted average incremental borrowing cost applied to the lease liability on adoption was 5.57%.
Summary of new accounting policy
Set out below are the new accounting policies of the Group upon adoption of AASB 16:
Right-of-use asset
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before the commencement date less any lease incentives received and associated
restoration provisions. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term,
the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease
term (between one and two years). Right-of-use assets are subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments
to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by
the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to
terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which
the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement
date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed
lease payments or a change in the assessment to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption (i.e., those leases that have a lease term of 12 months or less from
the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption
to leases that are considered of low value (i.e., below $5,000). Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.
AASB Interpretation 23 Uncertainty over Income Tax Treatment
The application date of AASB Interpretation 23 for the Group was 1 January 2019. The Interpretation addresses the accounting for
income taxes when tax treatments involve uncertainty that affects the application of AASB 112 and does not apply to taxes or
levies outside the scope of AASB 112, nor does it specifically include requirements relating to interest and penalties associated
with uncertain tax treatments. The Interpretation specifically addresses the following:
• Whether an entity considers uncertain tax treatments separately
•
•
•
The assumptions an entity makes about the examination of tax treatments by taxation authorities
How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
How an entity considers changes in facts and circumstances
An entity must determine whether to consider each uncertain tax treatment separately or together with one or more other
uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. The adoption of
this Interpretation has not had a material impact on the Group.
Accounting Standards and Interpretations issued but not yet effective
Australian Accounting Standards and Interpretations that are issued, but are not yet effective, up to the date of issuance of the
Group’s financial statements but are not deemed to have an impact on the consolidated financial statements of the Group. The
Group intends to adopt these new standards and interpretations, if applicable, when they become effective.
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NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
Summary of significant accounting policies
(i)
Basis of consolidation
The consolidated financial statements comprise the financial statements of Legend Mining Limited and its subsidiaries (‘the
Group’) as at 31 December 2019. Control is achieved when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the
Group controls an investee if and only if the Group has:
•
•
•
Power over the investee (ie existing rights that give it the current ability to direct the relevant activities of the investee);
Exposure, or rights, to variable returns from its involvement with the investee; and
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
•
The contractual arrangement with the other vote holders of the investee;
• Rights arising from other contractual arrangements; and
•
The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the statement of comprehensive income from the date the Group gains
control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of
the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When
necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the
Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the
Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest
and other components of equity while any resultant gain or loss is recognised in profit or loss. Any investment retained is
recognised at fair value.
(ii)
Significant accounting judgements, estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events.
The key estimate 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:
Share-based payment transactions
The Group measures the cost of equity-settled share-based payments at fair value at the grant date using a Black-Scholes formula
taking into account the terms and conditions upon which the instruments were granted.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including
whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration
and evaluation asset through sale.
Factors which could impact the future recoverability include the level of proved, probable and inferred mineral 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, this will
reduce profits and net assets in the period in which the determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that
it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net assets in the
period in which this determination is made.
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NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
(iii)
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight line basis over the useful life of the asset from the time the asset is held ready for use.
The depreciation rates used for each class are:
Buildings
10%
Plant and equipment
7.5% - 50%
Impairment
The carrying values of property, plant and equipment are reviewed for impairment as required, with recoverable amount being
estimated when events or changes in circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit to which the asset belongs.
If any indication of impairment exists and where the carrying values exceed the estimated recoverable amount, the assets or
cash-generating units are written down to their recoverable amounts.
The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset.
Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. 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 item) is included in the income statement in the period the
item is derecognised.
(iv)
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits with
a maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined
above.
(v)
Financial Assets
Financial assets at amortised cost (debt instruments)
Trade receivables are initially recognised at their transaction price and other receivables at fair value. Receivables that are held
to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest
are classified and subsequently measured at amortised cost. Receivables that do not meet the criteria for amortised cost are
measured at fair value through profit or loss.
The group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at
amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since
initial recognition of the respective financial instrument. The Group always recognises the lifetime expected credit loss for trade
receivables carried at amortised cost. The expected credit losses on these financial assets are estimated based on the Group’s
historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as forecast conditions at the reporting date.
For all other receivables measured at amortised cost, the Group recognises lifetime expected credit losses when there has been
a significant increase in credit risk since initial recognition. If the credit risk on the financial instrument has not increased
significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to
expected credit losses within the next 12 months.
The Group considers an event of default has occurred when a financial asset is more than 90 days past due or external sources
indicate that the debtor is unlikely to pay its creditors, including the Group. A financial asset is credit impaired when there is
evidence that the counterparty is in significant financial difficulty or a breach of contract, such as a default or past due event has
occurred. The Group writes off a financial asset when there is information indicating the counterparty is in severe financial
difficulty and there is no realistic prospect of recovery.
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NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
Financial assets at fair value through profit or loss (equity investments)
Financial assets at fair value through profit or loss include financial assets held for trading, e.g., financial assets designated upon
initial recognition at fair value through profit or loss, e.g., debt or equity instruments, or financial assets mandatorily required to
be measured at fair value, i.e., where they fail the SPPI test. Financial assets are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near term. Financial assets with cash flows that do not pass the SPPI test are
required to be classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding
the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt
instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly
reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes
in fair value recognised in profit or loss.
(vi) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis
over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset,
it is recognised as income in equal amounts over the expected useful life of the related asset. The Group receives grants in
relation to Research and Development expenditure.
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and released
to profit or loss over the expected useful life of the asset, based on the pattern of consumption of the benefits of the underlying
asset by equal annual instalments.
(vii) Deferred exploration costs
Deferred exploration and evaluation costs
Exploration and evaluation expenditure is stated at cost and is accumulated in respect of each identifiable area of interest.
Such costs are only carried forward to the extent that they are expected to be recouped through the successful development of
the area of interest (or alternatively by its sale), or where activities in the area have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active operations are continuing.
Farm-outs and carried interest— in the exploration and evaluation phase
The Group does not record any expenditure made by the farmee on Legend’s account. The Group also does not recognise any
gain or loss on its exploration and evaluation farm-out arrangements. Any cash consideration received directly from the farmee
is credited against costs previously capitalised in relation to the whole interest with any excess accounted for by the Group as a
gain on disposal.
For carried interests Legend recognises the expenditure when they are providing the carry to the other parties. Where the Group
are being carried Legend does not recognise any expenditure paid for on their behalf.
Impairment
The carrying values of exploration and evaluation costs are reviewed for impairment when facts and circumstances indicate the
carrying value may not be recoverable.
The recoverable amount of exploration and evaluation costs is the greater of fair value less costs to sell and value in use. In
assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the fair value of money and the risks specific to the asset.
Accumulated costs in relation to an abandoned area are written off in full against the income statement in the year in which the
decision to abandon the area is made. A regular review is undertaken of each area of interest to determine the appropriateness
of continuing to carry forward costs in relation to that area of interest. Each area of interest is limited to the size related to
known or probable mineral resources capable of supporting a mining operation.
(viii) 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.
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NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at
a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to
the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
(ix)
Interest income
Interest revenue is recognised as it accrues, using the effective interest rate method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net
carrying amount of the financial asset.
(x)
Taxes
Current 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. The tax rates and tax law used to compute the amount are those that are enacted or
substantively enacted by the reporting date.
Deferred tax
Deferred income tax is provided on all temporary differences at the reporting 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 where 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, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, except where the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry-forward of unused tax assets and unused tax losses can be utilised:
•
•
Except where the deferred income tax asset relating to the deductible temporary differences 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; and
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognised to the extent that it is probable that the temporary differences will reverse
in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amounts of deferred tax assets is reviewed at each reporting 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 assets to be utilised.
Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are
recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.
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 relate to the same taxable entity and the same taxation
authority.
Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of GST except:
• Where the amount of the GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the
GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
• Receivables and payables are stated with the amount of GST included.
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NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statement of
Financial Position. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis. The GST components of cash flows arising
from investing or financing activities which are recoverable from, or payable to, the ATO are classed as operating cash flows.
(xi)
Trade and or other payables
Liabilities for trade creditors and other amounts 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 these goods and services. The amounts are unsecured and are usually paid within 30 days.
(xii)
Share based payment transactions
The Group provides benefits to employees (including directors) of the Group and to the providers of services to the Group in the
form of share based payment transactions, whereby employees or service providers render services in exchange for shares or
rights over shares (‘equity-settled transactions’).
There are currently three scenarios in place to provide these services:
(a) ‘Employees Share Option Plan’, which provides benefits to eligible persons;
(b) Capital raising costs, which provide payment to stockbrokers and finance institutions for capital raising services and
commissions; and
(c) Other grants of options to directors on an ad hoc basis.
The cost of the equity-settled transactions with stockbrokers and finance institutions is measured by reference to the fair value
of the service received at the date they are granted.
For transactions with employees (including directors), the cost of these equity-settled transactions is measured by reference to
the fair value of the options provided. The fair value is determined by an external valuer using a Black-Scholes model.
The cost of these equity-settled transactions with employees is recognised, together with a corresponding increase in equity,
over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employee becomes
fully entitled to the award (‘vesting date’).
In valuing these equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to
the price of the shares of Legend Mining Limited (market conditions) if applicable.
The cumulative expense recognised for these equity-settled transactions at each reporting date until vesting date reflects (i) the
extent to which the vesting period has expired and (ii) the Group’s best estimate of the number of equity instruments that will
ultimately vest. No adjustment is made for the likelihood of market conditions being met as the effect of these conditions is
included in the determination of fair value at grant date. The income statement charge or credit for a period represents the
movement in cumulative expenses recognised as at the beginning and end of the period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a
market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based
payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. However , if a new award is substituted for the cancelled award and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
For transactions with other service providers, the cost of these equity-settled transactions is measured by reference to the value
of the services provided. The cost of these equity-settled transactions is recognised, together with a corresponding increase in
equity, at the time the services are provided unless they are transaction costs arising on the issue of ordinary shares, in which
case the transaction costs are recognised directly in equity as a reduction of the proceeds received on the issue of shares.
(xiii)
Contributed Equity
Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs
net of tax arising on the issue of ordinary shares are recognised directly in equity as a reduction of the proceeds received.
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NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
(xiv) Employee Benefits
Provision is made for employee benefits accumulated as a result of employee services up to the reporting date. These employee
benefits include wages, salaries, annual leave and include related on-costs such as superannuation and payroll tax.
The Group does not expect its long service leave or annual leave benefits to be settled wholly within 12 months of each reporting
date. The Group recognises a liability for long service leave and annual leave 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 high quality corporate bonds with terms
to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
No provision is made for non-vesting sick leave, as the anticipated pattern of future sick leave taken indicates that accumulated
non-vesting sick leave will never be paid.
Contributions to employee superannuation funds of choice are expensed as incurred.
(xv)
Earnings per share
Basic earnings per share (EPS) is calculated as net profit or loss attributable to members, adjusted to exclude costs of servicing
equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as net profit or loss attributable to members, adjusted for:
(a) Costs of servicing equity (other than dividends).
(b) The after tax effect of dividends and interest associated with the dilutive potential ordinary shares that have been
recognised as expenses; and
(c) Other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential
ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element.
(xvi) Foreign currency translation
(a) Functional and presentation currency
The Group’s consolidated financial statements are presented in Australian dollars, which is also the Company’s functional
currency. For each entity, the Group determines the functional currency and items included in the financial statements of each
entity are measured using that functional currency.
(b) Transactions and balances
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates
at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rates of
exchange at the reporting date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchanges rates
at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition of gain or loss on change in fair value of the item (ie translation
differences on items whose fair value gain or loss is recognised in other comprehensive income or profit or loss are also
recognised in other comprehensive income or profit or loss respectively).
NOTE 3: NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activities during the year of the entities within the consolidated entity were exploration for nickel and copper
deposits in Australia.
35
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 4:
REVENUE AND EXPENSES
a)
Finance Revenue
Bank interest received and receivable
Other finance income
b) Other
Net gain/(loss) on revaluation of financial assets held for trading
Other income - impairment loss recovery
c)
Employee Benefits Expense
Salaries, on-costs and other employee benefits
d) Other Expenses
Depreciation
Exploration expenditure not capitalised
Financial expenses
Sale of fixed assets
Depreciation – Office Lease
e) Corporate and administration expenses
Fees – Audit/Tax
Fees – ASX
Fees – Share Registry
Consultancy Fees
Office Rent
Legal expenses
Travel expenses
Other expenses
NOTE 5:
EARNINGS PER SHARE
(a)
Reconciliation of earnings to net loss:
Net Loss
Loss used in the calculation of basic earnings per share
Note
2019
$
109,032
122,658
231,690
30,994
750,000
780,994
306,383
306,383
2,574
700
5,159
678
48,413
57,524
249,752
45,734
11,559
78,522
-
21,172
43,392
388,547
838,678
2019
$
2018
$
103,469
120,000
223,469
(172,588)
-
(172,588)
301,634
301,634
3,633
43,464
-
-
-
47,097
452,077
46,184
15,096
73,830
114,906
1,880
48,146
217,633
969,752
2018
$
(401,801)
(1,267,602)
(401,801)
(1,267,602)
(b) Weighted average number of shares on issue during the financial year used
in the calculation of basic loss per share
2,642,257,182
2,044,350,801
Weighted average number of ordinary shares on issue used in the
calculation of diluted loss per share
2,642,257,182
2,044,350,801
(c)
Information on classification of options
For the year ended 31 December 2019, all options on issue were antidilutive as the Group made a loss. This has resulted in
the diluted earnings per share being the same as the basic earnings per share. These options could potentially dilute basic
earnings per share in the future. The number of anti-dilutive potentially issuable ordinary shares at 31 December 2019 is
387,111,111. (31 December 2018: 238,000,000)
36
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 6:
INCOME TAX
The major components of income tax expense are:
Income Statement
Current income tax
Current year income tax charge (benefit)
Under/Over provision of prior tax year
Deferred income tax
Relating to origination and reversal of temporary differences
Under/Over provision of prior tax year
Income tax benefit reported in the income statement
A reconciliation between tax expense and the product of accounting
profit/(loss) before income tax multiplied by the Group’s applicable
income tax rate is as follows:
Accounting loss before tax from ordinary activities
Accounting loss before income tax
At the Group’s statutory income tax rate of 30%
Expenditure not allowed for income tax purposes
Current year tax losses not recognised
Non-assessable income
Movement in unrecognised temporary difference
Recognition of previously unrecognised prior period tax losses
Deferred tax assets not brought to account
Deductible equity raising costs
Income tax expense attributable to entity reported in the consolidated income
statement
Income tax expensed directly to equity
Relating to equity costs
Deferred tax expense/(income) recognised in equity
Current Income Tax Asset/(Liability)
2019
$
2018
$
-
-
-
-
-
-
-
-
-
-
(401,801)
(401,801)
(120,540)
558,355
-
(169,986)
(64,312)
(202,555)
-
(962)
-
(962)
-
-
(1,267,602)
(1,267,602)
(380,280)
111,160
217,343
(343,220)
-
-
394,997
-
-
-
-
-
37
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 6: INCOME TAX (CONTD)
Deferred Income Tax
Deferred income tax at 31 December related to the following:
Consolidated
Recognised deferred tax liabilities
Capitalised exploration and evaluation expenditure
Property, Plant & Equipment
Other
Amounts disclosed as deferred tax liability
Set-off of deferred tax assets
Net deferred tax liabilities disclosed
Recognised deferred tax assets
Tax losses available to offset against future taxable income
Other provisions
Plant and Equipment
Other future blackhole deductions
Gross deferred tax assets
Set-off of deferred tax assets
Net deferred tax assets recognised
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the
following as the statutory requirements for recognising those deferred
tax assets have not been met
Deductible temporary differences
Tax revenue losses
Tax capital losses
Net deferred tax assets not recognised
Tax Consolidation
2019
$
30%
2018
$
30%
(2,797,329)
(2,115)
(6,531)
(2,805,975)
2,805,975
-
2,702,959
100,022
0
2,994
2,805,975
(2,805,975)
-
(2,011,121)
-
(3,350)
(2,014,471)
2,014,471
-
1,894,220
89,461
790
30,000
2,014,471
(2,014,471)
-
914,597
440,903
2,223,755
3,579,255
1,140,240
643,458
2,223,755
4,007,453
Legend Mining Limited and its 100% owned Australian resident subsidiaries formed a tax consolidated group with effect from 1
July 2004. Legend Mining Limited is the head entity of the tax consolidated group. Members of the group have entered into a
tax sharing agreement in order to allocate the income tax liabilities between the entities within the Group should the head entity
default on its tax payment obligations. At the balance date, the possibility of default is remote.
Tax effect accounting by members of the tax consolidated group
Tax expense / income, deferred tax liabilities and deferred tax assets arising from temporary differences are recognised in the
separate financial statements of the members of the tax consolidated group using the separate taxpayer within a group method.
Current tax liabilities and assets and deferred tax assets arising from unused tax losses and tax credits of the members of the tax
consolidated group are recognised by the Company (as head entity in the tax consolidated group).
Members of the tax consolidated group have not entered into a tax funding agreement. As a result, the aggregate of the current
tax liability or asset and any deferred tax asset arising from unused tax losses and tax credits in respect of that period, assumed
by the Company, are recognised as a contribution from (or distribution to) equity participants. There were no contributions (or
distributions) made during the year ended 31 December 2019.
2019 Tax Return
On 18 October 2019, the Company lodged its tax return for the tax year ended 30 June 2019 and claimed a refundable Research
and Development (R&D) tax offset of $1,259,160. In December 2019, the Company received this refund.
38
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 7:
SEGMENT INFORMATION
Operating Segments
The group has one reportable operating segment, being exploration and evaluation activities in Australia.
NOTE 8:
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Deposits
2019
$
633,887
9,500,000
10,133,887
2018
$
323,829
3,000,000
3,323,829
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Deposits at call earn interest on a 30, 60 and 90 day term basis at bank deposit rates at an average rate of 2.35%.
NOTE 9:
RECEIVABLES
Current
Other receivables (b)
Receivable from Jindal Mining & Exploration Limited (a)
Provision for Jindal receivable
2019
$
50,813
2,537,658
(2,255,000)
333,471
2018
$
64,012
3,005,000
(3,005,000)
64,012
Terms and conditions relating to the above financial instruments:
(a) On 4 January 2017, the Company announced that it has received a request from Jindal Steel and Power (Mauritius)
Limited (“Jindal”) to consider a further deferral of the payment of the final amount of $3 million owing to Legend from
the sale of the Cameroon Iron Ore project. At that time, Legend agreed to this request in principle, and expected to
report to the ASX as soon as an agreement of new payment terms was reached.
On 8 May 2019 Legend announced that it and Jindal Mining & Exploration Limited (Jindal) had agreed to a payment
schedule for the final amount of $3 million owing to Legend from the sale of the Cameroon Iron Ore project. Legend
and Jindal agreed that payments of $250,000 per month will be made commencing 31 October 2019 until 31 August
2020 (11 payments) with the final payment of $250,000 being made on 15 October 2020, totalling $3 million in full. The
outstanding amounts owing continue to attract interest at the rate of 4% per annum paid quarterly.
Legend received $500,000 (two $250,000 monthly payments) from Jindal Steel and Power during the December 2019
quarter. A payment of $282,658 ($250,000 principal and $32,658 interest), due on 31 December 2019, was received on
22 January 2020.
Due to the continued uncertainty of the receipt of funds from Jindal and the fact Jindal are in arrears on the payment
plan, Legend have applied an expected credit loss rate of 88.8% (2018: 100%) on the estimated gross carrying amount
at default resulting in an expected credit loss of $2,255,000 (2018: $3,005,000).
(b) Other receivables are non-interest bearing and have repayment terms of between 30 and 60 days.
39
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 10: OTHER FINANCIAL ASSETS
Current
Shares in S2 Resources Ltd – at fair value (a)
Security bond – at amortised cost (b)
Non-current
Rental property bond (c)
Details of the above financial instruments:
2019
$
98,273
50,000
148,273
2018
$
67,279
50,000
117,279
5,775
5,775
(a) The equity investments are all classified as financial assets at fair value through profit and loss. The market value of all
equity investments represent the fair value based on quoted prices on active markets (ASX) as at the reporting date without
any deduction for transaction costs. These investments are classified as Level 1 financial instruments. There have been no
transfers between levels of the fair value hierarchy used in measuring the fair value of these financial instruments, or
changes in its classification as a result of a change in the purpose or use of these assets.
(b) Security bond – bank deposit held as security for credit cards. At 31 December 2019, this deposit is held on a 6 month term
deposit with an interest rate of 1.57% per annum (31 December 2018, 6 months at 2.72%pa).
(c) Rental Property Bond – this bond relates to a rental property in Boulder WA. No interest is received on this bond.
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
Plant and equipment
At 31 December
Gross carrying amount at cost
Accumulated depreciation
Net carrying amount
At 1 January
Net of accumulated depreciation
Additions
Disposals
Depreciation expense - Admin
Depreciation expense - Exploration
At 31 December
Net of accumulated depreciation
2019
$
2018
$
315,239
(230,552)
84,777
324,726
(215,627)
109,099
109,099
7,500
(878)
(2,574)
(28,370)
149,039
-
-
(3,633)
(36,307)
84,777
109,099
NOTE 12: DEFERRED EXPLORATION COSTS
Deferred exploration costs
Deferred exploration and evaluation costs
At 1 January, at cost
Acquired during the year
Reimbursement of exploration expenditure – R&D Rebate
Expenditure incurred during the year
At 31 December, at cost
Note
(i)
(ii)
2019
$
14,622,473
10,012,564
2,135,000
(1,259,160)
3,734,069
14,622,473
2018
$
10,012,564
9,676,532
-
(2,585,817)
2,921,849
10,012,564
40
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
12. DEFERRED EXPLORATION COSTS (CONTD)
Note:
Following the share issuance as outlined in note 15, there were the following transactions undertaken in the current year:
(i) During 2019 Legend entered into a new JVA (“Ponton JVA 2019”) with Creasy Group over tenements E28/1716 and E28/1717
for a 70% interest in the tenements. Legend paid the upfront consideration of $2,000,000, being 55,555,555 Legend shares
at the price of 3.6 cents per share, to Creasy Group on 30 September 2019. The issue price was reflective fair value of the
share price at acquisition date.
The acquisition included contingent consideration of 277,777,775 Legend shares at the price of 3.6 cents per share payable
on completion of the first Bankable Feasibility Study and a Decision to Mine has been made. The contingent consideration
of $135,000 represents a share based payment and has been fair valued at acquisition date based on a probability of 1.35%
of the contingent issuance being made. The fair value of the asset cannot be reliably estimated as it is an exploration and
evaluation asset which is in its early stages and there is still a significant amount of exploration and evaluation work required
to progress the asset to a point where the contingent issuance would be required. In addition, at the date of this report
there are no ore reserves or mineral resources estimated or being estimated for this joint venture asset and this joint venture
is not part of the Mawson project tenure.
The Ponton JVA 2019 has the Royalty Option to convert its 30% interest into a 2% net smelter royalty. No value has been
assigned to this option given this is linked to the Bankable Feasibility Study being completed and the Decision to Mine being
made.
During 2019 Legend farmed-out a portion of the Group’s interest in E28/2190, E28/2191, E28/2675, E28/2676 and E28/2677
(collectively the Rockford JVA 2019 and Legend/IGO JVA 2019) for a free carry until mining joint venture for nil consideration
in line with the Group’s accounting policy, no gain or loss has been recognised on these farm-outs. The Group retains the
following interest in the tenements:
• Rockford JVA 2019 – E28/2190 and E28/2191 – 10% free carried interest (2018: 70% interest)
•
Legend/IGO JVA 2019 – E28/2675, E28/2676 and E28/2677 – 30% free carried interest (2018: 100% interest)
(ii) The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related
exploration and evaluation asset through sale.
NOTE 13:
TRADE AND OTHER PAYABLES
Current – unsecured
Trade payables
Other payables and accruals
Lease liability
Non-Current
Lease liability
Terms and conditions relating to the above financial instruments
(i)
Trade payables are non-interest bearing and normally settled on 30 day terms.
(ii) Other payables are non-interest bearing and normally settled as they fall due.
(iii) There are no trade payables past due for payment.
2019
$
230,464
-
67,234
297,698
13,704
13,704
2018
$
230,845
57,638
-
288,483
-
-
41
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 14:
EMPLOYEE BENEFITS PROVISIONS
Current
Employee benefits
Non-Current
Employee benefits
Number of employees at year end
NOTE 15: CONTRIBUTED EQUITY
Ordinary shares
Issued and fully paid
55,555,555 Creasy JVA (i)
272,222,222 IGO Limited (ii)
Capital raising costs
Movement in ordinary shares on issue 2019
At 1 January 2019
55,555,555Shares issued for tenement acquisition (refer note 12(i))
272,222,222 IGO Limited
Capital raising costs
At 31 December 2019
Movement in ordinary shares on issue 2018
At 1 January 2018
At 31 December 2018
2019
$
2018
$
195,148
164,498
108,258
5
97,425
4
2019
$
60,711,242
2,000,000
9,800,000
(32,058)
72,479,184
No.
2,044,350,801
55,555,555
272,222,222
-
2,372,128,578
No.
2,044,350,801
2,044,350,801
2018
$
60,711,242
-
-
60,711,242
$
60,711,242
2,000,000
9,800,000
(32,058)
72,479,184
$
60,711,242
60,711,242
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
(i) On 30 September 2019 Legend issued $2.0 million of share capital for the consideration of the Ponton joint venture as
described in note 12 (i).
(ii) In July 2019 Legend entered into a Subscription Agreement with IGO Limited (formerly Independence Group NL) to subscribe
for $9.8 million worth of Company shares at an issue price of 3.6 cents per share. The first tranche was completed on 11
July 2019 under Legend’s existing 15% placement capacity, while the second tranche was subject to Legend shareholder
approval and was completed on 30 September 2019.
Attached to the share issues were 136,111,111 options of an exercise price of 7.2 cents per share for a period of three years.
NOTE 16: RESERVES
Movement in reserves
At 1 January 2019
Options issued to employees(refer note 18)
Contingent shares issued for tenement acquisition (refer note 12 (i))
At 31 December 2019
At 1 January 2018
At 31 December 2018
Share option
premium reserve
$
23,268,278
211,900
135,000
23,615,178
23,268,278
23,268,278
42
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
16. RESERVES (CONTD)
Share option premium reserve
The share option premium reserve is used to record the value of share based payments provided to employees, directors and
contractors, as part of their remuneration and contingent share issues as part of the acquisition of tenements.
NOTE 17: SHARE OPTIONS
Unlisted options – Expiry date 23 September 2020
At 1 January 2019
At 31 December 2019
Unlisted options – Expiry date 30 March 2021
At 1 January 2019
At 31 December 2019
Unlisted options – Expiry date 11 July 2022
At 1 January 2019
Issued during the year
At 31 December 2019
Unlisted options – Expiry date 30 September 2022
At 1 January 2019
Issued during the year
At 31 December 2019
Unlisted options – Expiry date 23 September 2020
At 1 January 2018
At 31 December 2018
Unlisted options – Expiry date 30 March 2021
At 1 January 2018
At 31 December 2018
Number
Exercise price
cents per share
150,000,000
150,000,000
88,000,000
88,000,000
-
102,217,540
102,217,540
-
46,893,571
46,893,571
150,000,000
150,000,000
88,000,000
88,000,000
4 cents
4 cents
7.2 cents
7.2 Cents
4 cents
4 cents
NOTE 18: SHARE BASED PAYMENT PLANS
(a) Recognised share-based payment expenses
During the 2019 year there were 13,000,000 options issued (2018: nil).
•
In 2019 13,000,000 incentive options with an exercise price of 7.2 cents and expiring on 30 September 2022 were issued to
employees and contractors under the Company’s Employee Share Option Plan. The fair value of the incentive options granted
at the grant date was 0.0163 cents, for a total value of $221,900 included within share based payments expense.
The fair values were calculated by using the Black-Scholes European Option Pricing Model applying the following inputs:
Exercise price (cents)
Life of the option (years)
Underlying share price (cents)
Expected share price volatility
Risk free interest rate
Incentive Options
7.2
3.0
4.6
75.0%
0.68%
43
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
18. SHARE BASED PAYMENT PLAN (CONTD)
(b) Types of share-based payment plans
Employee Share Option Plan, ‘ESOP’
Share options are granted to Eligible Persons with more than 6 months service. Eligible Persons are determined by the Board after
taking into account the following considerations:
(i) the seniority of the Eligible Person and the position the Eligible Person occupies within the Group;
(ii) the length of service of the Eligible Person with the Group;
(iii) the record of employment of the Eligible Person with the Group;
(iv) the contractual history of the Eligible Person with the Group;
(v) the potential contribution of the Eligible Person to the growth of the Group;
(vi) the extent (if any) of the existing participation of the Eligible Person in the Plan; and
(vii)
any other matters which the Board considers relevant.
At a General Meeting on 4 December 2009 shareholders approved the implementation of Employee Share Option Plan No 3.
The plan differed from the previous plans in that there is no 12 month vesting period on any new options received under plan
No 3. Removal of the vesting period requirement allows the Board maximum flexibility to make offers of options on the terms
of the plans appropriate at the time, having regard for the tax environment which the proposed participants find themselves in
when an offer of options is received from the company.
The Company plans to seek shareholder approval for a new ESOP at its 2020 Annual General Meeting scheduled to be held in
May 2020.
(c) Summaries of options granted
ESOP: The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and movements in, share
options issued during the year:
Outstanding balance at the beginning of the year
Granted during the year
Expired/lapsed during the year
Outstanding at the end of the year
Exercisable at the end of the year
2019
No.
78,000,000
13,000,000
-
91,000,000
91,000,000
2019
WAEP
($)
0.040
0.072
-
0.045
0.045
2018
No.
78,000,000
-
-
78,000,000
78,000,000
2018
WAEP
($)
0.040
-
-
0.040
0.040
Expense Share Option Plan ‘ExSOP: The following table illustrates the number (No.) and weighted average exercise prices
(WAEP) of, and movements in, share options issued during the year:
Outstanding balance at the beginning of the year
160,000,000
0.040
2019
No.
2019
WAEP
2018
No.
160,000,000
2018
WAEP
0.040
Granted during the year
Expired/lapsed during the year
Outstanding at the end of the year
Exercisable at the end of the year
-
-
-
-
-
-
160,000,000
160,000,000
0.040
0.040
160,000,000
160,000,000
-
-
0.040
0.040
The outstanding balance as at 31 December 2019 is represented by:
(i)
150,000,000 options over ordinary shares with an exercise price of $0.04 each, exercisable immediately and expiring on 23
September 2020.
(ii) 88,000,000 options over ordinary shares with an exercise price of $0.04 each, exercisable immediately and expiring on 30
March 2021.
(iii) 13,000,000 options over ordinary shares with an exercise price of $0.072 each, exercisable immediately and expiring on 30
September 2022
44
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 19: RELATED PARTIES
(i) Wholly-owned group transactions
Loans made by Legend Mining Limited to wholly-owned subsidiaries are repayable on demand and are not interest bearing.
(ii) Other related party transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available
to other parties unless otherwise stated.
(iii) Ultimate parent
Legend Mining Limited is the ultimate parent company.
(iv) Compensation of key management personnel of the Group
Short-term employee benefits
Long term benefits
Post-employment benefits
Total compensation paid to Key Management Personnel
2019
$
648,616
9,000
50,800
708,416
2018
$
654,564
9,000
58,900
722,404
The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key
management personnel.
NOTE 20:
CASH FLOW INFORMATION
(i) Reconciliation of Cash
For the purposes of the Cash Flow Statement, cash and cash equivalents includes cash on hand and at bank and short term
deposits at call, net of outstanding bank overdrafts. Cash as at the end of the financial year as shown in the Cash Flow Statement
is reconciled to the related items in the Statement of Financial Position as follows:
Cash on hand
Cash at bank
Deposits at call
Note
8
(ii) Reconciliation of net loss after income tax to net cash used in operating activities
Net loss after tax
Net loss on disposal of property, plant & equipment
Depreciation
Depreciation – Lease
Interest expense capitalised to deferred exploration
Share-based payments expense
Fair value (gain)/loss on investments
Impairment of Jindal receivables
Deferred exploration expenses
Movement in provisions and other
Change in operating assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Net cash used in operating activities
Non-cash financing and investing activities
2019
$
500
633,387
9,500,000
10,133,887
(401,801)
678
2,574
48,413
(1,439)
211,900
(30,994)
(750,000)
700
41,483
(878,486)
482,784
(224,249)
(619,951)
2018
$
500
323,329
3,000,000
3,323,829
(1,267,602)
-
39,940
-
-
-
172,588
-
-
43,448
(1,011,626)
15,913
185,611
(810,102)
During the year Legend entered into a new JVA (“Ponton JVA 2019”) with Creasy Group over tenements E28/1716 and E28/1717
in consideration for 55,555,555 ordinary shares at an issue price of $0.036 per ordinary share.
Other than listed above there were no other non-cash financing or investing activities during the 2019 or 2018 years.
45
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 21: COMMITMENTS
(a) Exploration expenditure commitments
In order to maintain current rights of tenure to exploration tenements, the Group will be required to outlay approximately
$2,207,500 (2018: $1,830,500) in the following twelve months in respect of tenement lease rentals and to meet minimum
expenditure requirements of the Department of Industry & Resources. These obligations are expected to be fulfilled in the
normal course of operations and have not been provided for in the financial report.
NOTE 22:
INVESTMENTS IN CONTROLLED ENTITIES
Details of subsidiaries
Set out below are the Group’s subsidiaries at 31 December 2019. All the subsidiaries as listed below have share capital consisting
solely of ordinary shares, which are held directly by the Group, and the proportion of ownership interests held equals to the
voting rights held by the Group. The country of incorporation or registration is also their principal place of business.
Name
Place of Business /
Country of
Incorporation
Ownership Interest Held by
the Group
Ownership Interest Held by
Non-Controlling Interests
Gibson Metals Pty Ltd*
Legend Cameroon Pty Ltd
Australia
Australia
*On 29 January 2020 Gibson Metals Pty Ltd was deregistered
2019
%
100
100
2018
%
100
100
2019
%
-
-
2018
%
-
-
NOTE 23: FINANCIAL INSTRUMENTS DISCLOSURE
The Group’s principal financial instruments comprise cash and short-term deposits, receivables and investments held for trading.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has various other financial
assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The main risks arise
from the Group’s financial instruments are interest rate risks, liquidity risk, credit risk and equity price risk. The Board reviews
and agrees policies for managing each of these risks and they are summarised below.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial
liability and equity instrument are disclosed in note 2 to the financial statements.
Fair value interest risk
The Group’s exposure to fair value interest risk is minimal.
Commodity price risk
The Group’s exposure to price risk is minimal as the group is still in an exploration phase and has no revenues from mining.
Credit risk
The Group trades only with recognised, creditworthy third parties.
The only significant concentration of credit risk within the Group is the loan receivable from Jindal. Exposure to credit risk is
managed through regular analysis of Jindal’s ability and willingness to meet payment obligations. The carrying amount of
financial assets represents the maximum credit exposure. The Group has provided for the majority of the $2.5 million
receivable from Jindal (see Note 9 for full details on this impairment). No collateral is held as security.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, the
Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount
of these instruments.
Since the Group only trades with recognised third parties, there is no requirement for collateral.
46
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
23. FINANCIAL INSTRUMENTS DISCLOSURE (CONTD)
Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of a mixture of
long and short term debt.
Equity price risk
Equity price risk is the risk that changes in equity prices will affect the fair value of the Group’s holdings of financial instruments.
The objective of equity price risk management is to manage and control the risk within acceptable parameters, while optimising
the return.
To minimise the risk the Group’s investments are of high quality and are publicly traded on the ASX. The investments are
managed on a day to day basis so as to pick up any significant adjustments to market prices.
(a)
Interest Rate Risk
The consolidated entity’s exposure to cash flow interest rate risk is as follows:
2019
Financial assets:
Cash and cash equivalents
Other financial assets
2018
Financial assets:
Cash and cash equivalents
Other financial assets
Weighted
Average
Interest Rate
Floating
Interest
$
Fixed
Interest
$
Non-Interest
Bearing
$
3.40%
2.59%
633,387
-
633,387
9,500,000
55,775
9,555,775
323,329
-
323,329
3,000,000
55,775
3,055,775
500
-
500
500
-
500
Total
$
10,133,887
55,775
10,189,662
3,323,829
55,775
3,379,604
The maturity date for all financial instruments included in the above tables is 1 year or less from balance date.
A change of 100 basis points in interest rates would result in a net gain/loss before taxation of $67,289 (2018: $38,969). This
is based on the interest bearing financial assets as detailed above.
(b) Credit Risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure
to credit risk at the reporting date was:
Cash and cash equivalents
Trade and other receivables
Rental Bond/Security bond
Note
8
9
10
Carrying Amount
2019
$
10,133,887
333,471
55,775
10,523,133
2018
$
3,323,829
64,011
55,775
3,443,615
The Company’s maximum exposure to credit risk at the reporting date was $10,523,133 (2018: $3,443,615).
Except for the amount receivable from Jindal, all other trade and other receivables are current and have not been impaired.
47
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 23: FINANCIAL INSTRUMENTS DISCLOSURE (CONTD)
(c) Liquidity Risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements:
31 December 2019
Non-derivative financial liabilities
Trade and other payables
Lease liability
31 December 2018
Non-derivative financial liabilities
Trade and other payables
Carrying
Amount
230,464
80,938
311,402
Carrying
Amount
288,483
288,483
Contractual cash
6 mths or less
flows
230,464
83,373
313,836
230,464
37,537
268,041
Contractual cash
6 mths or less
flows
288,483
288,483
288,483
288,483
(d) Net Fair Value of Financial Assets and Liabilities
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position,
are as follows:
Held for trading financial assets
Cash and cash equivalents
Security bond
Trade and other receivables
Trade and other payables
Lease liability
(e) Equity price risk
31 December 2019
31 December 2018
Carrying
Amount
$
98,273
10,133,887
55,775
333,471
(230,464)
(80,938)
10,310,478
Fair Value
$
98,273
10,133,887
55,775
333,471
(230,464)
(80,938)
10,310,478
Carrying
Amount
$
67,279
3,323,829
55,775
64,011
(288,483)
-
3,216,636
Fair Value
$
67,279
3,323,829
55,775
64,011
(288,483)
-
3,216,636
The Group’s exposure to equity securities is considered low as the company has minor investments in other listed investments
totalling $98,273 at 31 December 2019.
A change of 10% in the market price of the shares would result in a gain/loss before taxation of $9,827 (2018: $6,728).
(f)
Foreign Exchange risk
At balance date, the group had no material foreign currency denominated liabilities and receivables.
48
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 24: FAIR VALUES
Management assessed that cash and cash equivalents, trade and other receivables, and trade and other payables approximate
their carrying amounts largely due to the short-term maturities of these instruments.
The following table provides the fair value measurement hierarchy of the Group’s assets measured at fair value:
Asset measured at fair value
Date of valuation
(Recurring)
Total
Quoted prices in
active market
(Level 1)
Quoted equity investments (Note 10)
31-Dec-2019
98,273
98,273
The fair value of the financial assets is determined by reference to published price quotation in an activity market.
Fair value of the quoted equity instruments is based on price quotations at the reporting date.
NOTE 25:
INFORMATION RELATING TO LEGEND MINING LIMITED (“THE PARENT ENTITY”)
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Contributed equity
Accumulated losses
Share option premium reserve
2019
$
10,615,631
25,410,001
492,846
614,808
24,795,193
72,479,184
(71,299,169)
23,615,178
24,795,193
2018
$
3,505,120
13,632,558
452,981
550,406
13,082,152
60,711,242
(70,897,368)
23,268,278
13,082,152
Loss of the parent entity after tax
Total comprehensive loss of the parent entity
(401,801)
(401,801)
(1,267,602)
(1,267,602)
There have been no guarantees entered into by the Parent Entity in relation to any debts of its subsidiaries.
The Parent has no contingent liabilities as at date of this report.
The Parent Entity has no contractual commitments for the acquisition of property, plant or equipment.
49
N O T E S T O T H E F I N A N C I A L S T A T EM E N T S
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
NOTE 26: AUDITOR’S REMUNERATION
The auditor of Legend Mining Limited is Ernst & Young Australia.
Amounts received or due and receivable by Ernst & Young Australia for:
- An audit or review of the financial report of the entity and any other entity in the
consolidated group
Consolidated
2019
$
2018
$
31,731
31,731
31,673
31,673
NOTE 27: CONTINGENT LIABILITIES
There are no contingent liabilities at the date of this report.
The consolidated entity’s activities in Australia are subject to the Native Titles Act and the Department of Environment.
Uncertainty associated with Native Title issues may impact on the Group’s future plans.
There are no unresolved Native Title issues and the consolidated entity is not aware of any other matters that may impact upon
its access to the land that comprises its project areas.
NOTE 28: EVENTS AFTER THE BALANCE SHEET DATE
After the balance sheet date the Company has seen macro-economic uncertainty with regards to prices and demand for nickel
and copper as a result of the COVID-19 (coronavirus) outbreak. Furthermore, recent global developments and uncertainty in
nickel and copper in March 2020 have caused further abnormally large volatility in commodity markets. The scale and duration
of these developments remain uncertain but could impact the Company’s cash flow and financial condition.
No other matter or circumstance has arisen since the end of the financial year which has significantly affected, or may
significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent
financial years.
NOTE 29: DIVIDENDS PAID AND PROPOSED
No dividends were paid or proposed this financial year. There are no franking credits available for future reporting periods.
50
D I R E C T O R S ’ D E C L A R A T I O N
In accordance with a resolution of the Directors of Legend Mining Limited, I state that:
In the opinion of the Directors:
(a) the financial statements and notes on pages 24-50, and the remuneration disclosures that are
contained in the Remuneration report in the Directors report pages 17-23, of the consolidated
entity, are in accordance with the Corporations Act 2001, including;
i Giving a true and fair view of the consolidated entity’s financial position as at 31
December 2019 and of its performance for the year ended on that date; and
ii Complying with Australian Accounting Standards’ and the Corporations Regulations 2001;
and
iii The financial statements and notes also comply with International Financial Reporting
Standards as disclosed in note 2; and
(b) there are reasonable grounds to believe that the company will be able to pay its debts as and
when they become due and payable.
This declaration has been made after receiving the declarations required to be made to the
directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended
31 December 2019.
On behalf of the Board.
Mark Wilson
Managing Director
Dated this 20th day of March 2020
51
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s Independence Declaration
As lead auditor for the audit of the financial report of Legend Mining Limited for the financial year ended
31 December 2019, I declare to the best of my knowledge and belief, there have been:
a)
b)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Legend Mining Limited and the entities it controlled during the financial
year.
Ernst & Young
Darryn Hall
Partner
Perth
20 March 2020
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
DH:DA:LEGEND:007
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Independent Auditor’s Report to the Members of Legend Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Legend Mining Limited (the Company), and its subsidiaries
(collectively the Group) which comprises the consolidated statement of financial position as at 31
December 2019, the consolidated statement of comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, notes to the
financial statements, including a summary of significant accounting policies and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
(ii)
giving a true and fair view of the consolidated financial position of the Group as at 31 December
2019 and of its consolidated financial performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting
Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a
separate opinion on these matters. For the matter below, our description of how our audit addressed the
matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to this matter. Accordingly, our audit included
the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial report. The results of our audit procedures, including the procedures
performed to address the matter below, provide the basis for our audit opinion on the accompanying
financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
DH:DA:LEGEND:008
Accounting for and carrying value assessment of deferred exploration costs
Why significant
How our audit addressed the key audit matter
At 31 December 2019, the Group recognised an asset of
$14.62 million of exploration and evaluation
expenditure.
This was a key audit matter as the continued recognition
as an asset requires judgement by the Group around the
likelihood of recovery through future exploitation or sale
of the asset. If a judgement is made by the Group that
recovery of the expenditure is unlikely, the relevant
capitalised amount will be written off as an impairment
expense to the income statement.
The majority of the Group’s capitalised exploration and
evaluation assets relate to its Rockford Project
exploration tenements.
We particularly focused on the Group’s judgement that
the Rockford Project remains an exploration and
evaluation asset which has not progressed sufficiently to
be categorised as a development asset.
In the current year there was contiguous acquisitions
and partial disposals of interests in a number of
tenements which included carry arrangements by and
for the Group as outlined in Note 12 – Deferred
exploration costs in the financial statements.
Included in deferred exploration costs as at 31
December 2019, and treated as reduction in the amount
of capitalised expenditure, is any research and
development (R&D) tax incentive benefits received in
respect of the deferred exploration costs
Refer to Note 12 – Deferred exploration costs to the
financial statements for the amounts held on the
consolidated statement of financial position as at 31
December 2019 and related disclosure.
We evaluated the Group’s assessment of the carrying
value of exploration and evaluation assets. In obtaining
sufficient audit evidence, we:
• Considered the Group’s right to explore in the
relevant exploration area which included obtaining
and assessing supporting documentation such as
license agreements and extension of term
applications;
• Considered the Group’s intention to carry out
significant exploration and evaluation activity in the
relevant exploration area which included assessment
of the Group’s cash-flow forecast models, enquiries
with senior management and directors as to the
intentions and strategy of the Group;
• Assessed the carrying value of intangible assets
where recent exploration activity in a given
exploration license provided negative indicators as to
the recoverability of other intangible costs that
remain capitalised;
• Assessed the ability to finance planned future
exploration and evaluation activity;
• Assessed the Group’s accounting for the acquisition
and partial disposal of interests in exploration
tenements and associated deferred exploration costs
for conformity with the Group’s accounting policy
and Australian Accounting Standards;
• Assessed the work of management’s external expert
in measuring and preparing the Group’s R&D tax
incentive claims and engaged our own tax specialists
to review the form and nature of the claim submitted;
and agreed the receipt of R&D tax incentive claims
monies by the Group to supporting documentation;
• Assessed the adequacy of the disclosure included in
the financial report.
Information other than the Financial Statements and Auditor’s Report
The directors are responsible for the other information. The other information comprises of the
information included in the Group’s 2019 Annual Report but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report and
our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
DH:DA:LEGEND:008
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the director’s use of the going concern basis of accounting and,
based on the audit evidence obtained, uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as
a going concern.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
DH:DA:LEGEND:008
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on the Audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages [xx] to [xx] of the directors' report for the
year ended 31 December 2019.
In our opinion, the Remuneration Report of Legend Mining Limited for the year ended 31 December
2019, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
Ernst & Young
Darryn Hall
Partner
Perth
20 March 2020
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
DH:DA:LEGEND:008
S H A R E H O L D E R I N F O RM A T I O N
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
SHAREHOLDER INFORMATION AT 18 MARCH 2020
The issued capital of the company is 2,372,128,578 ordinary fully paid shares.
Distribution of Share Holders
Fully Paid Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Shares
28,939
477,903
3,460,994
93,756,137
2,274,404,605
2,372,128,578
Holders
109
126
417
2,040
1,370
4,062
Number of holdings less than a marketable parcel
1,876,121
438
Top 20 Shareholders
Name
CREASY GROUP
IGO LIMITED
BAILEY GROUP
WILSON GROUP
MR PLATON MANIOTIS
MR MATTHEW MCLEISH
BELLARINE GOLD PTY LTD
PHH PTY LIMITED
LISTOGA PTY LTD
THREE CHEEKY MONKEYS
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LTD
NINO CONSTRUCTIONS PTY LTD
TOPAZ PTY LTD
MICHAELMAS ISLAND PTY LTD
MUSGRAVE MINERALS LIMITED
MR ANDREW VUKOSAV
M & K LI HOWARD
MR PHILIP ROY TRAFFORD
MR RAYMOND SCIBERRAS
Substantial shareholders
Name
CREASY GROUP
IGO LIMITED
BAILEY GROUP
WILSON GROUP
Unlisted Option holders
Class of options
23 September 2020 exercisable at 4.0 cents per share
30 March 2021 exercisable at 4.0 cents per share
30 September 2022 exercisable at 7.2 cents per share
30 September 2022 exercisable at 7.2 cents per share
Shares
639,390,555
336,404,046
137,700,862
129,748,200
25,500,000
24,000,000
18,054,875
17,800,000
17,500,000
17,199,000
15,955,308
15,835,331
13,161,547
12,600,000
11,216,945
10,000,000
9,998,852
9,455,844
8,900,000
8,400,000
% of Units
26.95
14.18
5.81
5.47
1.07
1.01
0.76
0.75
0.74
0.73
0.67
0.67
0.55
0.53
0.47
0.43
0.42
0.40
0.38
0.35
1,478,821,365
62.34
Shares
639,390,555
336,404,046
137,700,862
129,748,200
Options
150,000,000
88,000,000
102,000,000
47,000,000
% of Units
26.95
14.18
5.81
5.47
Holders
2
7
1
5
57
T E N EM E N T L I S T I N G
F o r t h e y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9
AUSTRALIA – FRASER RANGE – ROCKFORD PROJECT
Tenements held at 18 March 2020
Tenement
E28/1716
E28/1717
E28/1718
E28/1727
E28/2188
E28/2189
E28/2190
E28/2191
E28/2192
E28/2404
E28/2405
E28/2675
E28/2676
E28/2677
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Percentage Interest
70%
70%
70%
70%
70%
70%
10%
10%
70%
100%
100%
30%
30%
30%
58