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ANNUAL
REPORT
Contents
Company Directory
Chairman’s Letter
Directors’ Review of Activities
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
legendmining.com.au
Email
legend@legendmining.com.au
ASX Code
LEG – ordinary shares
ACN
060 966 145
Legend Mining Limited | Annual Report 2021
Company Directory
DIRECTORS
Michael Atkins (Chairman)
Mark Wilson (Managing Director)
Oliver Kiddie (Executive Director)
SECRETARY
Tony Walsh
REGISTERED OFFICE
Level 1
8 Kings Park Road
WEST PERTH WA 6005
Telephone:
(08) 9212 0600
BANKERS
Australian and New Zealand Banking Group Ltd
1275 Hay Street
WEST PERTH WA 6005
LAWYERS
Thomson Geer
Level 27, Exchange Tower
2 The Esplanade
PERTH WA 6000
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:
Legend Mining Limited | Annual Report 2021
1
Chairman’s Letter
The 2021 year was one of growth for our Mawson massive sulphide nickel discovery
in the Fraser Range. During the year Legend has carried out an extensive diamond
drilling program of 46 holes for over 21km of core at Mawson and grown the technical
understanding with detailed structural and geotechnical modelling. This drilling has
resulted in additional massive sulphide mineralisation in multiple diamond drillholes and
has extended the known mineralised footprint of the Mawson intrusion to over 1.6km in
strike length and is open in multiple directions.
The evolving understanding of the Mawson structural
architecture has resulted in the potential identification
of trap sites for massive Ni-Cu sulphide accumulations
across the Mawson intrusion and supports the theory
of a large mineralised system at Mawson.
A 3D seismic survey has been undertaken at Mawson,
the first such survey completed by a junior explorer in
the Fraser Range. We expect the initial modelling from
this seismic survey to be available in March 2021.
Future diamond drilling planning at Mawson will focus
on continued definition of these mineralised intrusive
bodies based on the interpretation of the seismic
data, together with all our other extensive geological
and geophysical datasets to test targets for massive
nickel-copper sulphide accumulation.
I have mentioned the increase in drilling activity,
with our exploration rate further increasing to ~$13.5
million over the year, and notably this represents
+90% of Legend’s total expenditure during the year.
This has been made possible by our strong cash
position which remains at over $18 million at year end.
This strong cash position will enable us to continue
the systematic exploration program at Mawson into
the coming year. In addition, we also have identified
some very exciting regional targets which will also be
explored during the upcoming year.
I would like to take this opportunity to thank our
executive team, led by Managing Director, Mark
Wilson and Executive Director, Oliver Kiddie, for
the professional job they have done to continue
the systematic work at such a high technical and
professional standard to bring us closer to finding the
mineralised source at Mawson. Our exploration team
led by this leadership team continue to work together
as a very strong focussed team.
Your Board thanks you the shareholders for your
continuing support. Our exploration in the Fraser
Range has required patience, but with the amount
of excellent data gathered during the past year, the
building of the 3D chonolith model, and now the
3D seismic, I am excited to see how this excellent
technical work can lead us to a major nickel sulphide
accumulation in the coming year.
Michael Atkins
Chairman
2
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
SUSTAINABILITY
Legend Mining Limited is dedicated to being a leading and sustainable Australian
mining company built on exploration and corporate success for the benefit of all of its
stakeholders.
During the year, the Company has reviewed and updated its sustainability policies. These
policies apply to all our people and implementation of these policies and their supporting
standards and procedures are required across all Legend Mining operations.
Environment
Legend aspires to being effective environmental
stewards and managing our impacts, whilst both
achieving operational excellence and fulfilling our
corporate social responsibilities. The Company is
committed to positive environmental management
outcomes to maintain and enhance performance.
Legend acknowledges the threat posed by climate
change and will work to decarbonise our business in
a measured, proportionate and sustainable manner.
Health & Safety
Legend seeks to minimise the harm caused by
workplace hazards whilst both achieving operational
excellence and fulfilling our corporate social
responsibilities. The Company is committed to
leadership in health and safety through the use of
responsible and reliable management systems to
maintain and enhance performance.
Community
Legend aspires to create enduring value for our host
communities and limiting our negative impacts, whilst
both achieving operational excellence and fulfilling our
corporate social responsibilities.
Governance
Legend Mining Limited and the Board are committed
to achieving and demonstrating the highest standards
of corporate governance. Legend has reviewed its
corporate governance practices against the Corporate
Governance Principles and Recommendations (4th
edition) published by the ASX Corporate Governance
Council.
The 2022 Corporate Governance Statement was
approved by the Board on 16 March 2022 and
is current as at 16 March 2022. A description
of the Legend’s current corporate governance
practices is set out in the Legend’s Corporate
Governance Statement which can be viewed at www.
legendmining.com.au
E
S
G
ENVIRONMENT | SOCIAL | GOVERNANCE
Legend Mining Limited | Annual Report 2021
3
Directors’ Review of Activities
ROCKFORD PROJECT – FRASER RANGE DISTRICT
(Nickel-Copper-Cobalt, Copper-Zinc-Silver, Gold)
The Rockford Project is located within the highly prospective Fraser Range district of Western Australia, with
tenure covering a total area of 3,054km2 (see Figures 1 & 2). Exploration is primarily focussed on magmatic
nickel-copper-cobalt (Nova-Bollinger style), along with volcanogenic massive sulphide (VMS) style zinc-copper-
silver and Tropicana style structurally controlled gold mineralisation.
The Rockford Project comprises 15 granted
exploration licences with a detailed breakdown of
ownership, area and manager given below:
■
■
■
■
Legend (100%) 206km2;
Legend (70%)/Creasy Group (30%) Three JVs
covering 2,191km2 with Legend manager;
IGO (60%)/Creasy Group (30%)/Legend (10% free
carry) JV covering 633km2 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 deposit,
both located within the Fraser Zone, are situated on
a similar tenor gravity ridge to that of the Rockford
Project.
During 2021, Legend’s exploration activities
undertaken were on two fronts (see Figure 2);
1) Advanced exploration at the Mawson Ni-Cu-Co
discovery,
2) Regional exploration over highly ranked targets,
including Octagonal, Magnus, Hurley, Crean, and
the new Northerly prospect.
The field season commenced during the March 2021
Quarter, with two diamond drill rigs operating 24/7 at
Mawson. The initial drilling was following up significant
Ni-Cu sulphide mineralisation intersected in multiple
diamond drillholes, as well as step-out diamond drilling
designed to test for extensions to the mineralised
chonolith. A 3D seismic survey was commissioned at
Mawson during November 2021, with data collection
during December 2021. Regionally, aircore drilling
commenced during September, followed by diamond
drilling of highly ranked prospects from September
through November 2021.
FIGURE 1: ROCKFORD PROJECT LOCATION
4
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
MAWSON PROSPECT
A summary of 2021 exploration activities and results
for Mawson are provided below.
Exploration completed at Mawson during 2021
included:
The Mawson prospect is within the central intrusion of
the larger Mawson Intrusive Complex, characterised
by a 16km x 6km aeromagnetic feature interpreted to
be a cluster of mafic-ultramafic intrusions (see Figure
3). Innovative high power moving loop (MLTEM) and
fixed loop (FLTEM) electromagnetic surveys have
identified 18 significant bedrock conductors (D1-D18)
outlining a complex structural body of the Mawson
intrusion. Highly anomalous Ni-Cu results in aircore
drilling were followed up with diamond drilling,
resulting in the discovery of massive Ni-Cu sulphide
in December 2019. Subsequent diamond drilling
delineated additional massive sulphide mineralisation
and extended the mineralised Mawson intrusion
footprint to >1.6km in strike length by the end of 2021.
The mineralised intrusion remains open in multiple
directions as exploration drilling continues.
FIGURE 2: ROCKFORD PROJECT - PROSPECT LOCATIONS
■ Diamond drilling – 46 holes for 21,202.4m
■
Aircore drilling – 39 holes for 3,238m
■
3D seismic survey data acquisition
■ Constrained gravity inversion modelling
■ DHTEM surveying and associated modelling
■
■
Phase 1 sighter metallurgical testwork results
3D constrained gravity model of the Mawson
intrusion
■
External geochemical assessment, including
intrusion fingerprinting pilot study
3D structural model of Mawson
■
■ Detailed petrology of host lithologies and
associated primary Ni-Cu-Co mineralisation
■ Comprehensive interpretation of all data collected
for 2021.
Legend Mining Limited | Annual Report 2021
5
Directors’ Review of Activities
Exploration commenced during the March 2021
Quarter with diamond drilling at Mawson. The initial
drilling was following up significant Ni-Cu sulphide
mineralisation intersected in multiple diamond
drillholes, as well as step-out diamond drilling
designed to test for extensions to the mineralised
chonolith. Subsequent drilling was designed to follow
up massive sulphide mineralisation in RKDD043 and
RKDD044, as well as targeting multiple identified
offhole downhole electromagnetic (DHTEM)
conductors.
Exploration culminated in December 2021, with the
acquisition phase of the first greenfields 3D seismic
survey completed by a junior explorer in the Fraser
Range.
Mawson Diamond Drilling Summary
Diamond drilling commenced for the 2021 field
season with two diamond rigs operating 24/7. The
diamond drillholes were designed to test priority
targets as well as extend the mineralised chonolith
south of the discovery zone. A total of 21,202.4m of
diamond drilling was completed for the field season
(see Figure 3). Systematic step-out diamond drilling
continued to grow the Mawson intrusion to the south,
east, and north-east, intersecting mineralised intrusion
as well as defining the architecture of the Mawson
intrusion in relation to the country rock. The evolving
understanding of the Mawson structural architecture
has resulted in the potential identification of trap sites
for massive Ni-Cu sulphide accumulations across
the Mawson intrusion. Numerous diamond drillholes
intersected the variably mineralised chonolith host
driving the Ni-Cu-Co mineralisation and extended the
mineralised chonolith footprint south and north-east of
the Mawson massive Ni-Cu-Co discovery zone. By the
end of the 2021 field season, the mineralised chonolith
footprint had been extended from ~400m strike to
>1.6km strike.
Drillholes RKDD043, RKDD044, and RKDD053 all
intersected semi-massive to massive Ni-Cu sulphide,
significantly 400m to 1.2km east and north-east of
the discovery zone (see Table 1). Numerous other
drillholes intersected variable mineralised intrusive
assemblages, further increasing the footprint of the
Mawson chonolith and supporting the theory of a
large mineralised system at Mawson.
FIGURE 3: MAWSON DIAMOND DRILLHOLE LOCATIONS AND DEFINED CHONOLITH MODEL PROJECTED TO SURFACE OVER
AEROMAGNETICS AND CONSTRAINED GRAVITY INVERSION MODEL
6
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
PHOTO 1: MASSIVE AND SEMI-MASSIVE NI-CU SULPHIDE FROM RKDD053 FROM 135M
The 3D model driving predictive exploration at
Mawson continues to evolve with new data and
continues to be very accurate as a predictive tool for
targeting interpreted fertile intrusion. The updated 3D
constrained gravity model at this stage appears to
have a high correlation for mineralised intrusion. To
date, the mineralised intrusive footprint at Mawson
extends over 1.6km in strike length. The northern most
drill section completed suggests intersection of a new
intrusion adjacent to the Mawson intrusion.
Future diamond drilling planning at Mawson will
focus on continued definition of these mineralised
intrusive bodies at depths below 500m based on
the interpretation of the seismic data. Geological,
structural, and geochemical datasets will be combined
with seismic, gravity, magnetic, and DHTEM datasets
to design our 2022 diamond drill programme to test
targets for massive Ni-Cu sulphide accumulation.
Selected drill sections displaying geology and
mineralised intervals are presented in Figures 4 and 5.
Legend Mining Limited | Annual Report 2021
7
Directors’ Review of Activities
TABLE 1: MAWSON PROSPECT BEST DD & RC INTERCEPTS
Hole
RKDD007 70.15m @ 0.52% Ni, 0.36% Cu, 0.03% Co from 88.2m
Intercept
incl. 14.9m@ 1.07% Ni, 0.75% Cu, 0.06% Co from 114m
incl. 2.1m@ 2.03% Ni, 1.34% Cu, 0.11% Co from 115.5m
RKDD008 5.8m @ 0.97% Ni, 0.61% Cu, 0.05% Co from 148m
10.4m @ 1.32% Ni, 1.11% Cu, 0.07% Co from153.8m
5.6m @ 2.85% Ni, 1.86% Cu, 0.15% Co from 199.4m
6.9m @ 2.55% Ni, 1.67% Cu, 0.14% Co from 218.2m
12.8m @ 2.76% Ni, 1.36% Cu, 0.14% Co from 234.9m
RKDD011 15m @ 0.65% Ni, 0.53% Cu, 0.04% Co from 129.25m
21.6m @ 1.93% Ni, 1.09% Cu, 0.10% Co from 217.5m
incl. 1.9m @ 2.97% Ni, 1.10% Cu, 0.15% Co from 217.5m
incl. 4.2m @ 2.68% Ni, 1.36% Cu, 0.14% Co from 221.7m
incl. 6.3m @ 2.62% Ni, 1.62% Cu, 0.14% Co from 232.8m
RKDD013 12.0m @ 2.36% Ni, 1.36% Cu, 0.12% Co from 239.2m
1.5m @ 2.33% Ni, 3.76% Cu, 0.12% Co from 257.5m
RKDD014 3.45m @ 1.92% Ni, 0.83% Cu, 0.10% Co from 251.75m
RKDD015 73.5m @ 0.32% Ni, 0.29% Cu, 0.02% Co from 87.5m
24.3m @ 0.22%, Ni, 0.26% Cu, 0.02% Co from 279m
RKDD017 9.55m @ 2.07% Ni, 1.27% Cu, 0.11% Co from 158.6m
2.80m @ 2.84% Ni, 2.06% Cu, 0.15% Co from 193.1m
19.80m @ 2.71% Ni, 1.79% Cu, 0.13% Co from 227.8m
RKDD018 19.2m @ 1.69% Ni, 1.23% Cu, 0.09% Co from 97.9m
incl. 4.5m @ 3.05% Ni, 2.32% Cu, 0.19% Co from 103.7m
34.65m @ 0.51% Ni, 0.35% Cu, 0.03% Co from 130.7m
RKDD021 9.3m @ 0.34% Ni, 0.21% Cu, 0.03% Co from 132.2m
incl. 1.5m @ 0.79% Ni, 0.48% Cu, 0.07% Co from 140m
15.35m @ 0.51% Ni, 0.28% Cu, 0.05% Co from 219.1m
incl. 1.9m @ 0.99% Ni, 0.43% Cu, 0.08% Co from 219.1m
RKDD023 24.7m @ 1.35% Ni, 0.77% Cu, 0.11% Co from 219.2m
incl. 3.05m @ 1.11% Ni, 0.81% Cu, 0.09% Co from 219.2m
incl. 8.2m @ 1.83% Ni, 0.86% Cu, 0.15% Co from 228.7m
2.85m @ 1.71% Ni, 1.23% Cu, 0.14% Co from 237.75m
RKDD027 14.45m @ 2.63% Ni, 2.09% Cu, 0.14% Co from 162.05m
11.60m @ 0.75% Ni, 0.67% Cu, 0.04% Co from 187.4m
incl. 1.60m @ 2.48% Ni, 1.50% Cu, 0.12% Co from 188.85m
6.0m @ 1.70% Ni, 1.44% Cu, 0.09% Co from 214m
incl. 3.75m @ 2.60% Ni, 2.23% Cu, 0.13% Co from 215.8m
6.0m @ 1.07% Ni, 0.82% Cu, 0.05% Co from 229m
incl. 1.75m @ 2.75% Ni, 1.90% Cu, 0.13% Co from 231.8m
RKDD029 2.0m @ 2.75% Ni, 1.63% Cu, 0.15% Co from 171.2m
RKDD034 31.1m @ 2.80% Ni, 2.04% Cu, 0.15% Co from 200.7m
incl. 12m@ 3.00% Ni, 1.96% Cu, 0.16% Co from 204m
RKDD043 16m @ 0.21% Ni, 0.16% Cu, 0.02%% Co from 142m
6.82m @ 0.5% Ni, 0.38% Cu, 0.05% Co from 170m
5.5m @ 0.87% Ni, 0.51% Cu, 0.07% Co from 178.5m
incl. 3m @ 1.04% Ni, 0.61% Cu, 0.09% Co from 181m
RKDD044 4.1m @ 0.31% Ni, 0.29% Cu, 0.03% Co from 437.9m
4.9m @ 0.98% Ni, 0.92% Cu, 0.07% Co from 453.2m
incl. 1.7m @ 1.48% Ni, 1.12% Cu, 0.1% Co from 456.4m
19.7m @ 0.16% Ni, 0.17% Cu, 0.01% Co from 458.1m
RKDD053 11m @ 1.02% Ni, 0.54% Cu, 0.09% Co from 132m
incl. 2.94m @ 1.48% Ni, 0.49% Cu, 0.12% Co from 136.06m
2m @ 1.13% Ni, 0.96% Cu, 0.09% Co from 144.7m
17.09m @ 0.45% Ni, 0.29% Cu, 0.04% Co from 146.7m
RKRC011 19m @ 0.17% Ni, 0.08% Cu, 0.02% Co from 50m
12m @ 0.16% Ni, 0.11% Cu, 0.02% Co from 106m
5m @ 1.63% Ni, 1.29% Cu, 0.09% Co from 141m
RKRC012 86m @ 0.44% Ni, 0.36% Cu, 0.03% Co from 51m to EOH
incl. 23m@ 0.34% Ni, 0.25% Cu, 0.03% Co from 51m
incl. 19m@ 0.57% Ni, 0.62% Cu, 0.04% Co from 74m
incl. 5m@ 0.66% Ni, 1.31% Cu, 0.05% Co from 78m
incl. 20m@ 0.52% Ni, 0.36% Cu, 0.03% Co from 117m to EOH
RKRC037 33m @ 0.14% Ni, 0.09% Cu, 0.03% Co from 61m
incl. 4m@ 0.22% Ni, 0.36% Cu, 0.03% Co from 66m
3m @ 0.10% Ni, 0.13% Cu, 0.03% Co from 205m
RKRC038 8m @ 0.88% Ni, 0.41% Cu, 0.04% Co from 267m
incl. 4m@ 1.19% Ni, 0.44% Cu, 0.06% Co from 271m
RKRC039 12m @ 0.10% Ni, 0.08% Cu, 0.02% Co from 100m
4m @ 0.11% Ni, 0.12% Cu, 0.02% Co from 140m
74m @ 0.17% Ni, 0.11% Cu, 0.02% Co from 159m
incl. 5m @ 0.55% Ni, 0.29% Cu, 0.05% Co from 224m
8
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
FIGURE 4: DRILL SECTION 6,598,400MN LOOKING NORTH SHOWING DIAMOND DRILLHOLES RKDD038, RKDD041, RKDD043,
RKDD050, AND RKDD053 (NOTE – CONDUCTORS STRIKE N-S)
FIGURE 5: DRILL SECTION 6,599,200MN LOOKING NORTH SHOWING DIAMOND DRILLHOLES RKDD044, RKDD046, RKDD049,
RKDD051, RKDD058 AND RKDD064.
Legend Mining Limited | Annual Report 2021
9
Directors’ Review of Activities
Mawson 3D Seismic Survey
HiSeis was commissioned to complete the first
greenfields 3D seismic survey in the Fraser Range for
a junior explorer. The data acquisition phase at the
Mawson Prospect (see Figure 6) was completed in
December 2021. Data processing has commenced,
with delivery of final product expected by March 2022.
The aim of the survey is to define the architecture of
the Mawson intrusion in relation to the stratigraphic
package to a depth of investigation of a minimum
1000m below surface across a 6.5km2 area (see
Figure 6). In addition, a more detailed survey on the
western side of the survey area has been designed
to test for a direct detection signature of Ni-Cu-Co
sulphide accumulations at the Mawson discovery
zone, given the shallow nature of mineralisation
(<250m below surface).
On receival of the final results of this 3D seismic
survey, Legend will conduct an intensive process
of interrogation, including incorporation of existing
geophysical, geological, geochemical, and structural
datasets with the aim to define and rank new diamond
drilling targets for the 2022 field season across the
Mawson intrusion.
FIGURE 6: 3D SEISMIC SURVEY LINES ACROSS THE MAWSON CHONOLITH ON AEROMAGNETICS
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Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
Mawson 3D Model
During the September 2021 Quarter, datasets
including diamond drilling, RC drilling, detailed
aeromagnetics and detailed gravity were combined,
resulting in a constrained 3D inversion model over
the Mawson Ni-Cu discovery (see Figure 7). The
resultant 3D model highlights the scale of the Mawson
Intrusion, as well as the structural complexity, and the
associated prospectivity for discovery of further Ni-Cu
sulphide mineralisation within the Mawson Intrusion.
These models form an exploration model foundation
for Mawson, and will continue to evolve as additional
geological, structural, geophysical (including seismic),
and geochemical data is continually added through
ongoing exploration.
FIGURE 7: MAWSON 3D GRAVITY INVERSION MODEL OVERLAID WITH THE CHONOLITH
Legend Mining Limited | Annual Report 2021
11
Directors’ Review of Activities
REGIONAL EXPLORATION
A summary of 2021 Regional Rockford exploration
activities and results are provided below.
Regional exploration comprising diamond drilling,
Moving Loop Electro Magnetic (MLTEM) surveying
and aircore drilling has been completed at the
Rockford Project over tenements E28/1716, E28/1717,
E28/1718, E28/1727, and E28/2404 (see Figure 2).
These tenements contain the Magnus, Octagonal,
Crean, Hurley, and Northerly prospects, which have
been identified as favourable Ni-Cu-Co targets by
Legend through systematic exploration utilising
aircore drilling and innovative MLTEM surveys. The
Magnus, Octagonal, Crean and Hurley prospects lie
within the same NE-SW trending structural corridor
which hosts the Silver Knight and Nova-Bollinger Ni-
Cu deposits to the south.
Diamond drilling completed has confirmed that
Octagonal, Magnus, Crean, Hurley, and Northerly are
prospective orthomagmatic Ni-Cu intrusive hosts,
akin to the known deposit hosts of Nova-Bollinger
and Silver Knight in the Albany-Fraser Belt. Future
work programmes at these highly ranked prospects
will include assessment of geological, geochemical,
geophysical, and structural results from completed
diamond drilling, followed by planning of extensive
aircore drilling, innovative MLTEM/FLTEM, and
targeted diamond drilling. These work programmes
will be designed to define the target intrusion
geometry at each prospect, as well as to identify and
target mineralisation through systematic exploration,
with the aim to discover multiple economic Ni-Cu
sulphide accumulations.
FIGURE 8: OCTAGONAL PROSPECT SHOWING DRILLING COMPLETED OVER AEROMAGNETICS
12
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
OCTAGONAL PROSPECT – E28/1717
Prospect Background
Octagonal was originally targeted by the Creasy
Group due to its distinctive “eye” aeromagnetic
character (see Figures 2 & 8), with initial soil sampling
and aircore drilling returning anomalous Ni-Cu
values. Aircore drilling over the aeromagnetic feature
defined the Octagonal Intrusive Complex comprising
highly favourable Ni-Cu host rocks including olivine
gabbronorite, troctolite, peridotite, gabbronorite and
norite. RC/diamond drilling was then undertaken,
mainly on the south-eastern and southern margins of
the intrusive complex targeting EM conductors and IP
features.
Significantly, the RC and diamond drilling intersected
multiple intervals of massive, semi-massive, net
textured, stringer and disseminated pyrrhotite-
pentlandite-chalcopyrite sulphides associated with
the mafic/ultramafic intrusives. The mineralisation
identified to date is discontinuous and sub-economic,
however it demonstrates all the characteristics of a
fertile magmatic Ni-Cu sulphide system.
Diamond Drillhole OCDD001
Legend’s first drillhole into the Octagonal Intrusion,
OCDD001, was drilled targeting FLTEM and DHTEM
plates (see Figure 8). The drillhole intersected a
folded hanging wall sequence of metasedimentary
country rocks comprising pelitic gneisses, sulphidic
meta-BIF, and carbonate units to 492.0m downhole
before entering the chilled margin norite sequence
of the Octagonal intrusion to 522.0m. The drillhole
then intersected a coarse grained norite with large,
disseminated Ni-Cu sulphide blebs from 535.0m
before grading to a more leuconorite unit with matrix
sulphide at 541.6m. From 544.3m the hole intersected
a more ultramafic assemblage with heavy disseminated
sulphide and a zone of semi-massive sulphide between
545.2m and 545.4m (see Photo 2). The norite and
ultramafic package continued to 565.0m with large
blebby sulphide present before intersecting a norite unit
heavily contaminated with metasediment, interpreted
to have been assimilated by the intrusion through
to 568.9m. The drillhole then entered an interleaved
mafic and ultramafic assemblage of norites and olivine
websterites, variably mineralised and contaminated
with metasediments to 604.0m finishing in intrusive to
the end of hole at 687.2m.
PHOTO 2: SULPHIDE MINERALISATION FROM OCDD001 FROM 579.5M DOWNHOLE
Legend Mining Limited | Annual Report 2021
13
Directors’ Review of Activities
The FLTEM and DHTEM conductors targeted with
OCDD001 are clearly associated with Ni-Cu sulphide
mineralisation. DHTEM completed on OCDD001
confirms a series of complex conductors over a
40m wide zone, with modelling indicating potential
for extension beyond the conductor plates currently
modelled. The DHTEM data fits the current geological
understanding from the limited drilling completed at
Octagonal, that the eastern contact of the Octagonal
intrusion hosts a significant strike length of Ni-Cu
sulphide mineralised intercepts.
This drillhole is confirmation that Octagonal is a
large, fertile, orthomagmatic Ni-Cu intrusive system,
akin to the known deposits of Nova-Bollinger and
Silver Knight in the Albany-Fraser Belt. Further
work programmes will interrogate the DHTEM from
OCDD001 and target mineralisation across the
Octagonal intrusion and at depth, with the aim to
define an economic Ni-Cu sulphide accumulation.
MAGNUS PROSPECT – E28/1716
Prospect Background
Magnus was originally targeted by the Creasy
Group due to its distinctive “eye” aeromagnetic
character (see Figures 2 & 9). Subsequent aircore
drilling over the aeromagnetic feature identified the
Magnus Intrusive Complex comprising troctolite
and fractionated norite suite surrounded by highly
magnetic metasediment/granulite country rocks.
FIGURE 9: MAGNUS PROSPECT SHOWING DRILLING COMPLETED OVER AEROMAGNETICS
14
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
Diamond Drillhole MGDD001
Diamond drillhole MGDD001 is the first ever diamond
drillhole into the Magnus intrusion. It was designed
to target a gravity feature and test below anomalous
aircore geochemistry into what was believed to
be a large mafic-ultramafic intrusion. The drillhole
intersected highly prospective mafic and ultramafic
assemblages from 173.65m downhole to 597.3m
end of hole (see Photo 3). Lithologies ranged from
taxitic leuconorites, gabbronorites, troctolites, and
higher MgO olivine gabbronorites. Minor variable
disseminations of Ni-Cu sulphides were identified
over narrow zones throughout the drillhole. The
fractionated assemblages encountered, especially
significant thicknesses of troctolite, suggest the
drillholes intersected the upper zone of a large
intrusive body.
DHTEM completed on MGDD001 did not identify
any off-hole conductors. Given the drillhole did not
intersect a basal contact, the Magnus intrusion is
interpreted to extend at depth, potentially below the
levels of EM detectability.
Although not economic accumulations, the presence
of Ni-Cu sulphides in the first diamond drillhole
into the intrusion confirms that Magnus contains
prospective host rocks of an orthomagmatic system
akin to Voisey’s Bay, and indeed Nova-Bollinger,
Silver Knight, Mawson and Octagonal.
Future work programmes will include detailed
structural analysis with focus on testing for economic
accumulations of Ni-Cu sulphide at depth and
marginal locations around the intrusion.
PHOTO 3: TEXTURAL AND LITHOLOGICAL VARIATIONS OF INTRUSIVES INTERSECTED WITH VARIABLE MINOR SULPHIDE
MINERALISATION FROM MGDD01 AT THE MAGNUS PROSPECT.
Legend Mining Limited | Annual Report 2021
15
Directors’ Review of Activities
CREAN PROSPECT – E28/1718
Diamond Drillholes CRDD001 & CRDD002
Legend’s first diamond drillholes into the Crean
prospect were drilled targeting the C1 FLTEM plate
and a cluster of anomalous aircore geochemistry
results (see Figures 2 & 10). Encouragingly,
prospective mafic and ultramafic lithologies have
been encountered in CRDD001 and CRDD002. This
validates the aircore assessment methodology to
delineate Ni-Cu-Co prospective intrusive suites.
Significant thicknesses of mafic-ultramafic intrusives
intersected suggest Crean is a large intrusive body.
Additional aircore is currently being planned to define
the footprint of the Crean intrusion. DHTEM has been
completed on CRDD001 with results confirming the
FLTEM conductor has been explained. DHTEM has
been completed on CRDD002 with no conductors
identified.
Additional aircore will focus on defining the Crean
intrusion footprint as the next step of evaluation of the
prospect.
FIGURE 10: CREAN PROSPECT SHOWING DRILLING COMPLETED OVER AEROMAGNETICS
16
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
HURLEY PROSPECT – E28/2404
Diamond Drillholes HYDD001 & HYDD002
Legend’s first diamond drillholes into the Hurley
prospect, HYDD001 and HYDD002, were drilled
targeting the H1 MLTEM plate and the H3 MLTEM
plate (see Figures 2 & 11). Both drillholes intersected
contaminated intrusions, interpreted to be prospective
hosts for Ni-Cu mineralisation (see Photo 4).
Selected samples have been sent for assay and
further assessment is required following receipt of
geochemical results from the laboratory.
DHTEM has been completed on HYDD001 with
results confirming the H1 MLTEM conductor has been
explained. DHTEM has been completed on HYDD002
with results confirming the H3 MLTEM conductor has
been explained.
PHOTO 4: STRINGER AND BLEBBY PYRRHOTITE AND CHALCOPYRITE SULPHIDES WITH DISSEMINATED GRAPHITE WITHIN
OLIVINE LEUCONORITE FROM HYDD002 FROM 415.85M.
Legend Mining Limited | Annual Report 2021
17
Directors’ Review of Activities
FIGURE 11: HURLEY PROSPECT SHOWING DRILLING COMPLETED OVER AEROMAGNETICS
18
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
NORTHERLY PROSPECT – E28/1727
PHOTO 5: BLEBBY MAGMATIC SULPHIDES FROM
NODD001 FROM 96M
Diamond Drillhole NODD001
The Northerly prospect was identified though aircore
drilling by the Creasy Group, with its prospectivity
confirmed by recently completed aircore drilling
by Legend (see Figures 2 & 12). Diamond drillhole
NODD001 represents the first diamond drillhole
into the Northerly prospect, specifically targeting
anomalous aircore geochemistry with supporting
petrological verification of prospective Ni-Cu-Co
mineralisation host rocks. Highly prospective mafic
and ultramafic assemblages were encountered,
including fresh magmatic sulphide blebs of pyrrhotite,
pentlandite, and chalcopyrite between 92.93m and
100.76m (see Photo 5). The visual results from the
first diamond drillhole into the Northerly prospect are
highly encouraging. The presence of primary Ni-Cu
sulphides in fertile host lithologies below anomalous
aircore suggest the discovery of a new fertile
intrusion at the Rockford Project, akin to known fertile
intrusions within the belt including Nova, Silver Knight,
Mawson, Octagonal, and Magnus.
Selected samples have been sent for assay and
further assessment is required following receipt of
geochemical results from the laboratory.
DHTEM has been completed on NODD001 with no
significant bedrock conductors identified.
FIGURE 12: NORTHERLY PROSPECT SHOWING COMPLETED AIRCORE DRILLING OVER AEROMAGNETICS
Legend Mining Limited | Annual Report 2021
19
Directors’ Review of Activities
REGIONAL ROCKFORD AIRCORE DRILLING
Focused aircore drilling continues to develop the
prospect pipeline across the >3,000km2 at Rockford,
with the aim of defining prospective mafic/ultramafic
intrusive bodies which exhibit the characteristics to
host economic Ni-Cu mineralisation.
A total of 273 aircore drillholes for 15,222 metres have
been drilled over ranked targets across the Rockford
Project (see Figure 13). Assay results for completed
aircore drilling are pending at time of writing, with
current laboratory timeframe on receival of results up
to 12 weeks.
A pilot study analysing bottom of hole aircore chips
under a micro-X-ray mineral mapping technology was
commissioned across the known fertile intrusions
of Mawson and Octagonal and compared against
geochemically barren intrusions. The results of the
pilot study suggest the mineral mapping technology
can decipher between fertile Ni-Cu sulphide bearing
intrusions and barren intrusions. The resultant positive
anomalies are then ranked under a nickel sulphide
vector index. The study has been expanded across
the extensive regional Rockford aircore database, with
the aim to identify prospective Ni-Cu sulphide bearing
intrusions, and in turn, delineate more prospective
parts of the Albany Fraser belt.
The highest-ranked targets from the nickel sulphide
vector index will be followed up with innovative
MLTEM followed by infill aircore drilling. The most
compelling of these targets will be prioritised for RC
and/or diamond drilling during the 2022 field season.
20
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
FIGURE 13: REGIONAL AIRCORE DRILLING COMPLETED OVER AEROMAGNETICS
Legend Mining Limited | Annual Report 2021
21
Directors’ Review of Activities
FIGURE 14: ROCKFORD PROJECT – TENURE INCLUDING JOINT VENTURES
Competent Person Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Oliver Kiddie, a Member
of the Australasian Institute of Mining and Metallurgy and a full-time employee of Legend Mining Limited. Mr Kiddie 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 Kiddie 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 (12 January 2021, 18 January 2021, 11 February 2021, 9 March 2021, 14 April 2021, 28 April 2021, 1 June 2021, 11 June
2021, 12 July 2021, 23 August 2021, 26 August 2021, 20 September 2021, 4 November 2021, 8 November 2021, 18 November
2021, 14 December 2021) and Mr Oliver Kiddie consent to the inclusion of these Results in this report. Mr Kiddie have 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.
22
Legend Mining Limited | Annual Report 2021
Directors’ Review of Activities
Options Vesting
During the year, 1.5 million zero exercise price options
expiring on 10 August 2025, issued to Mr Oliver
Kiddie in August 2020, vested on their terms in the
September 2021 Quarter.
Annual Tax Return – R&D Claim
Legend lodged its FY2021 tax return in December
2021 and in late December 2021 received a Research
and Development Cash Refund from the Australian
Taxation Office of $781,446.
Annual General Meeting
The Annual General Meeting is planned to be held
as a hybrid meeting (in person and online, subject to
WA Government COVID-19 restrictions) at 3.00pm on
Friday, 29 April 2022.
CORPORATE
Jindal Receivable
During the year Legend received A$1,555,000 from
Jindal, being a principal repayment of $1,500,000
and interest of $55,000 in accordance with the
agreed repayment schedule. This leaves a balance of
A$500,000 receivable from Jindal at year end, with
interest on this receivable pre-paid up to the due date
of 31 March 2022.
Exercise of Options
During the March 2021 Quarter, 74,900,000 4 cent 30
March 2021 and 2,000,000 7.2 cent 30 September
2022 unlisted options were exercised which added
$3.14M to the Company’s cash at bank.
Change of Directors Interest
Following the Exercise of Options during the March
2021 Quarter, the Company’s Managing Director,
Mark Wilson, increased his interests in the Company
by the exercise of 40,000,000 4 cent 30 March
2021 options, increasing his relevant interest in the
Company to 169,748,200 ordinary shares, being a
6.16% interest in the Company. In addition, during the
December 2021 Quarter, Mark Wilson, increased his
interests in the Company by the acquisition on-market
of 5,000,000 ordinary shares, increasing his relevant
interest in the Company to 174,748,200 ordinary
shares, being a 6.34% interest in the Company.
The Company’s Chairman, Michael Atkins also
increased his interests in the Company by the
exercise of 10,000,000 4 cent 30 March 2021 options,
increasing his relevant interest in the Company to
17,108,334 ordinary shares.
Legend Mining Limited | Annual Report 2021
23
Directors’ Report
Directors’ Report
For the year ended 31 December 2021
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 2 1
The Directors submit their report for the year ended 31 December 2021.
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)
Oliver Kiddie (Executive Director)
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. Until November 2021 he was a Senior Corporate Advisor to Canaccord Genuity
(Australia) Ltd.
He is currently a non-executive chairman of Castle Minerals Ltd, and a non-executive director of SRG Global Limited and
Warrego Energy Limited, all ASX listed entities. Mr Atkins was non-executive Chairman of Azumah Resources Limited from
October 2009 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.
Oliver Kiddie, BSc App Geol, MAusIMM, MAICD, (appointed 10 August 2020) is a geologist with over 20 years’ experience
across exploration, resource definition, project development, and production throughout Australia and internationally. He has
extensive experience in base metal and gold exploration through senior management and executive positions, working for
companies including Dominion Mining, European Goldfields, and most recently as GM Exploration for the Creasy Group. He
led the exploration team of the Fraser Range project for the Creasy Group, including the discovery, resource definition, and
mining lease application for the Silver Knight Ni-Cu-Co deposit. Mr Kiddie possesses a strong corporate background having
managed numerous transactions and joint ventures as key responsibilities of senior management and executive positions. Mr
Kiddie is a member of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Company
Directors. Mr Kiddie 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 Great Western Exploration Limited and was a Director of XCD Energy Limited until his resignation in July 2020.
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
0.0023cents
0.0023cents
No dividend has been paid or recommended during the financial year.
24
Legend Mining Limited | Annual Report 2021
24
Directors’ Report
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 2 1
5.
CORPORATE INFORMATION
Corporate Structure
Directors’ Report
For the year ended 31 December 2021
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. At the date
of this report Legend Mining Limited had one wholly owned subsidiary, Legend Cameroon Pty Ltd.
Nature of Operations and Principal Activities
The principal activities during the year of the entities within the consolidated entity were:
(cid:120)
exploration for nickel and copper deposits in Australia.
Employees
The consolidated entity had a staff of nine employees at 31 December 2021 (2020: fourteen employees).
6.
OPERATING AND FINANCIAL REVIEW
Results of Operations
The net loss after income tax of the consolidated entity for the year was $66,179 (2020: loss of $1,062,610).
Review of Operations
The Directors’ Review of Activities for the year ended 31 December 2021 is contained on pages 3 to 23 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 $12,633,443 (2020: $7,673,641).
7.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
As a result of the COVID-19 (coronavirus) outbreak in the first quarter of 2020, the Company has seen macro-economic
uncertainty with regards to prices and demand for commodities including nickel and copper. Furthermore, the scale and
duration of these developments remain uncertain but could impact the Company’s cash flow and financial condition.
There have been no other 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.
10.
SHARE OPTIONS
Unissued shares
As at the date of this report, there were 155,211,111 unissued ordinary shares under options. Refer to note 17 for further
details of the options outstanding at 31 December 2021.
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 76,900,000 shares issued as a result of the exercise of options during the financial year. See note 17 for full details.
25
Legend Mining Limited | Annual Report 2021
25
Directors’ Report
Directors’ Report
For the year ended 31 December 2021
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 2 1
11.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
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
O Kiddie
D Waterfield
Chairman (non-executive)
Managing Director
Executive Director
Executive Director – Technical (resigned as a director on 10 August 2020)
Following Mr Kiddie’s commencement as Executive Director on 10 August 2020, Mr Derek Waterfield stood down from the
Board and assumed the position of General Manager, Exploration, and was no longer a member of key management personnel
from that date.
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:
(cid:120)
Provide competitive rewards to attract high-calibre executives.
Group Performance
(cid:120)
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
2021
$132,577
($66,179)
(0.0023)
(0.0023)
$53,421,982
$0.058
December
2020
$262,488
($1,062,610)
(0.0383)
(0.0383)
$49,863,081
$0.115
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
26
Legend Mining Limited | Annual Report 2021
26
Directors’ Report
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 2 1
14.
REMUNERATION REPORT (CONTD)
Directors’ Report
For the year ended 31 December 2021
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 for non-executive directors 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 non-executive 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:
(cid:120)
(cid:120)
(cid:120)
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 2021 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.
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 2021 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.
27
Legend Mining Limited | Annual Report 2021
27
Directors’ Report
Directors’ Report
For the year ended 31 December 2021
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 2 1
14.
REMUNERATION REPORT (CONTD)
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:
(cid:120) Mr Wilson receives remuneration of $360,000 per annum exclusive of superannuation;
(cid:120) Mr Wilson may resign from his position and thus terminate his contract by giving one month written notice;
(cid:120)
(cid:120)
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:
(cid:120) Mr Atkins receives remuneration of $90,000 per annum exclusive of superannuation;
(cid:120) 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.
(cid:120) Mr Atkins’ appointment is contingent upon satisfactory performance and successful re-election by shareholders of the
Company;
(cid:120) Mr Atkins may resign from his position and thus terminate his engagement by giving written notification of his resignation
as a director; and
(cid:120)
The Company may terminate Mr Atkins’ engagement by way of resolution of the Company’s shareholders.
Mr Oliver Kiddie, (Executive Director effective from 10 August 2020), is employed under contract. The current contract
commenced on 10 August 2020 and is effective until terminated in accordance with the contract. The significant terms of the
contract are:
(cid:120) Mr Kiddie receives remuneration of $300,000 per annum exclusive of superannuation;
(cid:120) Mr Kiddie may resign from his position and thus terminate his contract by giving three months’ written notice;
(cid:120)
(cid:120)
The Company may terminate Mr Kiddie’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 Kiddie’s contract at any time without notice if serious misconduct has occurred.
Mr Derek Waterfield, (Executive Director - Technical until 10 August 2020 and since 10 August 2020, General Manager
Exploration) is employed under contract. The current contract as General Manager, Exploration, commenced on 10 August
2020 and is effective until terminated in accordance with the contract. The significant terms of the contract are:
(cid:120) Mr Waterfield receives remuneration of $220,000 per annum exclusive of superannuation;
(cid:120) Mr Waterfield may resign from his position and thus terminate his contract by giving one month written notice;
(cid:120)
(cid:120)
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 the 2020 Annual General Meeting (AGM) on 14 May 2020, shareholders approved the implementation of the current
Employee Share Option Plan. A summary of the current Employee Share Option Plan was included in the 2020 Notice of AGM.
Share-based Payments
During the year the Company granted 1,250,000 incentive options to two employees as part of their remuneration. See note
18 for full details. (2020: 7,000,000).
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Legend Mining Limited | Annual Report 2021
28
Directors’ Report
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 2 1
14.
REMUNERATION REPORT (CONTD)
Directors’ Report
For the year ended 31 December 2021
Compensation of Key Management Personnel for Years Ended 31 December 2021 and 31 December 2020
Name
Year
Short term
Salary and
Fees(1)
Post-
Employment
Super-
annuation
$
$
Long-term
benefits
Long
Service
Leave
$
Director
M Atkins
M Wilson
O Kiddie
D Waterfield
Total
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
90,000
83,333
374,769
352,468
313,846
122,436
-
132,282
778,615
690,519
8,775
7,917
26,250
27,083
29,250
11,310
-
15,675
64,275
61,985
-
-
6,500
13,667
-
-
-
2,139
6,500
15,806
Total
Share
based
payments
options
% of
compen-
sation
granted as
options
% of
performance
related
remuneration
$
$
-
-
-
-
435,418
236,621
-
-
435,418
236,621
98,775
91,250
407,519
393,218
778,514
370,367
-
150,096
1,284,808
1,004,931
-
-
-
-
56
64
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(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 2021
Name
Granted as
Remuneration
Exercised
during the
year
Net Change
Other
Balance at
beginning
of year
1 Jan 2021
Balance at
end
of year
31 Dec 2021
Not Vested
& Not
Exercisable
Vested &
Exercisable
Directors
M Atkins
M Wilson
O Kiddie
D Waterfield
Total
10,000,000
40,000,000
7,000,000
20,000,000
77,000,000
-
-
-
-
-
10,000,000
40,000,000
-
20,000,000
70,000,000
-
-
-
-
-
-
-
7,000,000
-
7,000,000
-
-
5,500,000
-
5,500,000
-
-
1,500,000
-
1,500,000
Shareholdings of Key Management Personnel(1)(2)
Shares held in Legend Mining Limited (number) during the year ended 31 December 2021
Name
Balance
1 Jan 21
Granted as
remuneration
On exercise
of options
Net change
other(2)
Balance
31 Dec 2021
Directors
M Atkins (Windamurah P/L),
(Alkali Exploration P/L)
M Wilson (Chester Nominees WA P/L)
(Mrs MM Wilson)
O Kiddie (held by spouse: LSJ Windsor)
D Waterfield
Total
7,108,334
128,748,200
3,000,000
1,000,000
136,856,534
Includes shares held directly, indirectly and beneficially by KMP.
(1)
(2) On-market purchases and sales made during the year.
END OF REMUNERATION REPORT
-
-
-
-
-
10,000,000
-
17,108,334
40,000,000
5,000,000
174,748,200
-
20,000,000
3,000,000
(7,000,000)
3,000,000
14,000,000
70,000,000
4,000,000
140,856,534
29
Legend Mining Limited | Annual Report 2021
29
Directors’ Report
Directors’ Report
For the year ended 31 December 2021
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 2 1
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
Oliver Kiddie
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
7
7
7
7
7
7
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
Ordinary shares
M Atkins
(Windamurah P/L), (MW Atkins)
M Wilson
(Chester Nominees WA P/L)
(Hostyle Pty Ltd) (SMT Investments WA P/L)
O Kiddie
(held by spouse LSJ Windsor)
17,108,334
174,748,200
Options over
ordinary shares
-
-
3,000,000
7,000,000
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 2021 financial year.
We have received the Declaration of Auditor Independence from Ernst & Young, the Company’s Auditor. This is available for
review on page 59 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 18th day of March 2022
30
Legend Mining Limited | Annual Report 2021
30
Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income
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 2 1
Finance revenue
Impairment loss recovery
Other Income
Employee benefit expenses
Financial expenses
Other expenses
Corporate and administration expenses
Share-based payments expense
Loss before income tax
Income tax benefit/(expense)
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
Note
4(a)
9
4(b)
4(c)
4(d)
4(d)
4(e)
16
6
For the year ended 31 December 2021
2021
$
132,577
1,500,000
26,696
(232,132)
(3,921)
(67,762)
(944,799)
(546,638)
(135,979)
69,800
2020
$
262,488
250,000
121,384
(212,456)
(2,158)
(48,845)
(976,976)
(236,621)
(843,184)
(219,426)
(66,179)
(1,062,610)
-
-
(66,179)
(1,062,610)
EARNINGS PER SHARE (cents per share)
Basic loss per share
Diluted loss per share
5
5
(0.0023)
(0.0023)
(0.0383)
(0.0383)
The accompanying notes form part of these financial statements
31
Legend Mining Limited | Annual Report 2021
31
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
A s a t 3 1 D e c e m b e r 2 0 2 1
As at 31 December 2021
ASSETS
Current Assets
Cash and cash equivalents
Receivables
Other financial assets
Total Current Assets
Non-current Assets
Other financial assets
Property, Plant and 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
Employee benefit provisions
Lease liability
Deferred tax 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
2021
$
2020
$
8
9
10
10
11
12
13
14
14
6
15
16
18,258,467
33,907
100,000
18,392,374
5,775
762,719
104,611
34,929,556
35,802,661
54,195,035
327,465
179,410
90,257
597,132
141,635
16,377
17,909
175,921
773,053
53,421,982
25,191,146
2,707,333
50,000
27,948,479
5,775
536,121
54,187
22,296,113
22,892,196
50,840,675
582,959
170,154
39,357
792,470
129,469
16,377
39,278
185,124
977,594
49,863,081
101,451,503
24,398,437
(72,427,958)
53,421,982
98,373,061
23,851,799
(72,361,779)
49,863,081
The accompanying notes form part of these financial statements
32
Legend Mining Limited | Annual Report 2021
32
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
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 2 1
For the year ended 31 December 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Proceeds from Jindal Receivable
Interest received
ATO Cash Flow Boost received
Other income
Payment for financial assets
Note
2021
$
2020
$
(1,430,327)
(799,646)
1,500,000
131,418
-
26,696
(5,213)
222,574
500,000
312,257
100,000
-
(2,402)
110,209
Net cash flows from/(used) in operating activities
20(ii)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Proceeds from the sale of investments
Proceeds from sale of property, plant and equipment
Payments for deferred exploration costs
Receipt of research and development tax incentive grant
Net cash flows used in investing activities
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 from financing activities
11
(441,454)
(561,872)
-
-
75,179
200
(13,112,984)
(10,288,306)
3,379,840
-
(10,174,598)
(10,774,799)
3,140,000
26,534,800
(29,543)
(91,112)
(733,105)
(79,846)
3,019,345
25,721,849
Net increase/(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)
(6,932,679)
25,191,146
18,258,467
15,057,259
10,133,887
25,191,146
The accompanying notes form part of these financial statement
33
Legend Mining Limited | Annual Report 2021
33
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
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 2 1
For the year ended 31 December 2021
Contributed
Equity
$
Share Option
Premium
Reserve
$
Accumulated
Losses
$
Total Equity
$
At 1 January 2021
98,373,061
23,851,799
(72,361,779)
49,863,081
Loss for the year
Total comprehensive loss for the year
-
-
-
-
(66,179)
(66,179)
(66,179)
(66,179)
Issued capital (note 15)
Capital raising cost (note 15)
Employee and director options (note 16)
3,140,000
(61,558)
-
-
-
546,638
-
-
-
3,140,000
(61,558)
546,638
At 31 December 2021
101,451,503
24,398,437
(72,427,958)
53,421,982
At 1 January 2020
72,479,184
23,615,178
(71,299,169)
24,795,193
Loss for the year
Total comprehensive loss for the year
Issued capital
Capital raising cost
Employee and director options
At 31 December 2020
-
-
26,534,800
(640,923)
-
-
-
-
-
236,621
(1,062,610)
(1,062,610)
(1,062,610)
(1,062,610)
-
-
-
26,534,800
(640,923)
236,621
98,373,061
23,851,799
(72,361,779)
49,863,081
The accompanying notes form part of these financial statements
34
Legend Mining Limited | Annual Report 2021
34
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 1:
CORPORATE INFORMATION
The consolidated financial statements of Legend Mining Limited and its subsidiaries (collectively, the Group) for the year ended
31 December 2021 were authorised for issue in accordance with a resolution of the Directors on 16 March 2022.
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.
New and amended standards and interpretations
The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on
or after 1 January 2021 which did not have a material impact on the consolidated financial statements. The Group has not
early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
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 a material 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.
Amendments to IAS 1 and Definition of Material
The amendments provide a new definition of material that states, “information is material if omitting, misstating or obscuring
it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on
the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments
clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other
information, in the context of the financial statements. A misstatement of information is material if it could reasonably be
expected to influence decisions made by the primary users. These amendments is not expected to have any material impact to
the Group.
Amendments to IAS 8 and Definition of Accounting Estimates
The amended standard clarifies that the effects on an accounting estimate of a change in an input or a change in a measurement
technique are changes in accounting estimates if they do not result from the correction of prior period errors. The previous
definition of a change in accounting estimate specified that changes in accounting estimates may result from new information
or new developments. Therefore, such changes are not corrections of errors. This aspect of the definition was retained by the
Board. These amendments is not expected to have any material impact to the Group.
35
Legend Mining Limited | Annual Report 2021
35
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
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 2021. 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, th e
Group controls an investee if and only if the Group has:
(cid:120)
(cid:120)
(cid:120)
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:
(cid:120)
(cid:120)
(cid:120)
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 or
Monte Carlo valuation model 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.
The assessment of whether there are any impairment indicators in respect of a mining exploration property involves a number
of judgements. These include whether the Group has the right to explore in the specific area of interest, whether ongoing
expenditure is planned or budgeted and whether there is sufficient information for a decision to be made that the area of
interest is not commercially viable.
36
Legend Mining Limited | Annual Report 2021
36
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
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 or impaired, this will reduce profits and net
assets in the period in which this determination is made.
(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 diminishing value basis over the useful life of the asset from the time the asset is held read y 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.
37
Legend Mining Limited | Annual Report 2021
37
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
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.
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,
amounts are deducted from the cost of the related asset. The Group receives grants in relation to Research and Development
expenditure. These amounts are deducted from the exploration and expenditure on tenements capitalised during the year.
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.
38
38
Legend Mining Limited | Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
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.
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:
(cid:120)
(cid:120)
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:
(cid:120)
(cid:120)
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.
39
Legend Mining Limited | Annual Report 2021
39
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
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:
(cid:120) 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.
(cid:120)
Receivables and payables are stated with the amount of GST included.
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)
(b) Capital raising costs, which provide payment to stockbrokers and finance institutions for capital raising services and
‘Employees Share Option Plan’, which provides benefits to eligible persons;
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 or Monte Carlo
valuation 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.
40
40
Legend Mining Limited | Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
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.
(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 an nual 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.
41
Legend Mining Limited | Annual Report 2021
41
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
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).
(xvii)
Leases
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 commencemen t
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.
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.
42
Legend Mining Limited | Annual Report 2021
42
Notes to the Financial Statements
Notes to the Financial Statements
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 2 1
NOTE 4:
REVENUE AND EXPENSES
a)
Finance Revenue
Bank interest received and receivable
Other finance income
b) Other
Other income - ATO Cashflow Boost
Other income
c)
Employee Benefits Expense
Salaries, on-costs and other employee benefits
d) Other Expenses
Depreciation
Financial expenses
Depreciation – Office Lease
Other
e) Corporate and administration expenses
Fees – Audit/Tax
Fees – ASX
Fees – Share Registry
Consultancy Fees
Legal expenses
Sale of fixed assets
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
For the year ended 31 December 2021
Note
2021
$
77,578
54,999
132,577
-
26,696
26,696
232,132
232,132
7,839
3,921
70,448
(10,525)
71,683
183,005
77,539
22,148
115,830
19,571
2,573
19,701
504,432
944,799
2021
$
2020
$
173,342
89,146
262,488
100,000
21,384
121,384
212,456
212,456
4,650,
2,158
55,904
(11,709)
51,003
414,923
56,225
-
111,248
-
1,649
8,344
384,587
976,976
2020
$
(66,179)
(1,062,610)
(66,179)
(1,062,610)
(b) Weighted average number of shares on issue during the financial year used
in the calculation of basic loss per share
Weighted average number of ordinary shares on issue used in the
calculation of diluted loss per share
2,836,658,180
2,772,382,838
2,836,658,180
2,772,382,838
(c)
Information on classification of options
For the year ended 31 December 2021, all options on issue were anti-dilutive 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
2021 is 155,211,111 (31 December 2020: 230,861,111)
43
Legend Mining Limited | Annual Report 2021
43
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
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
Other assessable income
Non-assessable income
Current year capital losses not recognised
Recognition of previously unrecognised prior period tax losses
Utilisation of previously unbooked tax losses
Deductible equity raising costs
Income tax expense/(benefit) 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)
2021
$
2020
$
-
-
(69,800)
-
(69,800)
(135,979)
(135,979)
(40,794)
473,363
-
-
-
(450,000)
(52,369)
-
-
219,426
-
219,426
(843,184)
(843,184)
(252,955)
1,086,001
182
(30,000)
18,570
(440,903)
(86,641)
(74,828)
(69,800)
219,426
48,431
48,431
-
(180,148)
(180,148)
-
44
Legend Mining Limited | Annual Report 2021
44
Notes to the Financial Statements
Notes to the Financial Statements
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 2 1
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 and 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
Share based costs on equity
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
For the year ended 31 December 2021
2021
$
30%
2020
$
30%
(9,145,194)
(219,133)
(1,746)
(9,366,073)
9,348,164
(17,909)
9,110,232
104,714
131,717
1,501
9,348,164
(9,348,164)
-
(5,227,466)
(111,547)
(1,398)
(5,340,411)
5,301,133
(39,278)
4,914,041
204,697
180,148
2,247
5,301,133
(5,301,133)
-
367,800
-
2,242,325
2,610,125
817,800
-
2,242,325
3,060,125
Legend Mining Limited and its 100% owned Australian resident subsidiary 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 (o r
distributions) made during the year ended 31 December 2021.
2021 Tax Return
On 6 December 2021, the Company lodged its tax return for the tax year ended 30 June 2021 and claimed a refundable Research
and Development (R&D) tax offset of $781,446. On 24 December 2021, the Company received this refund.
45
Legend Mining Limited | Annual Report 2021
45
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
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
2021
$
1,258,467
17,000,000
18,258,467
2020
$
2,191,146
23,000,000
25,191,146
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 0.04%.
NOTE 9:
RECEIVABLES
Current
Other receivables (b)
Receivable from Jindal Mining & Exploration Limited (a)
Provision for Jindal receivable
2021
$
33,907
500,000
(500,000)
33,907
2020
$
2,707,333
2,000,000
(2,000,000)
2,707,333
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 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 $250,000 in each of October and November
2019, reducing the outstanding amount to $2,500,000 as at 31 December 2019.
On 22 January 2020 Legend received a payment of $282,658 (principal and interest) from Jindal representing the
December 2019 principal of $250,000 and interest of $32,658. On 23 March 2020 Legend and Jindal agreed to a revised
payment schedule for the remaining $2,250,000. This revision was caused by business disruption of COVID-19 in India.
On 17 July 2020, the Company agreed to another revised proposal from Jindal to repay the outstanding $2.25 million
receivable over 21 months. On 22 July 2020 Legend received a payment of $44,774 from Jindal representing March
2020 interest of $22,397 and June 2020 interest of $22,377. On 23 December 2020, Legend received a payment of
$294,372 (principal and interest) from Jindal representing the September 2020 interest of $22,623, the November 2020
principal of $250,000 and the December 2020 interest of $21,749. As at 31 December 2020 the loan amount
outstanding was $2,000,000 and interest payments were as per the agreed 17 July 2020 repayment schedule.
On 23 April 2021 Legend received a payment of $518,005 (principal and interest) from Jindal representing the January
2021 Principal of $250,000 and March 21 principal of $250,000 and interest of $18,005. On the 7 September 2021
Legend received a payment of $1,012,500 from Jindal representing the $250,000 for May 2021 principal, $250,000 for
July 21 principal, $500,000 for September 2021 principal and the part payment of interest $12,500. On the 9 December
2021 Legend received a payment from Jindal representing interest of $24,494 as per the Supplementary Agreement
dated 1 December 2021. As at 31 December 2021 the loan amount outstanding was $500,000 with interest prepaid
until 31 March 2022.
46
46
Legend Mining Limited | Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 9: RECEIVABLES (CONTD)
Due to the continued uncertainty of the receipt of funds from Jindal, Legend have applied an expected credit loss rate
of 100% (2020 100%) on the estimated gross carrying amount at default resulting in an expected credit loss of $500,000
(2020 $2,000,000).
(b) Other receivables are non-interest bearing and have repayment terms of between 30 and 60 days.
NOTE 10: OTHER FINANCIAL ASSETS
Current
Security bond – at amortised cost (a)
Non-current
Rental property bond (b)
Details of the above financial instruments:
2021
$
100,000
100,000
2020
$
50,000
50,000
5,775
5,775
(a)
Security bond – bank deposit held as security for credit cards. At 31 December 2021, this deposit is held on a 12 month
term deposit with an interest rate of 0.3% per annum (31 December 2020, 6 months at 0.4%pa).
(b) 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
2021
$
2020
$
1,220,394
(457,675)
762,719
536,121
464,829
(2,573)
(7,839)
(227,819)
824,625
(288,504)
536,121
84,777
538,497
(1,649)
(4,650)
(80,854)
762,719
536,121
47
Legend Mining Limited | Annual Report 2021
47
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 12: DEFERRED EXPLORATION COSTS
Deferred exploration costs
Deferred exploration and evaluation costs
At 1 January, at cost
Reimbursement of exploration expenditure – R&D Rebate
Expenditure incurred during the year
At 31 December, at cost
Note
(i)
2021
$
34,929,556
22,296,113
(781,446)
13,414,889
34,929,556
2020
$
22,296,113
14,622,473
(2,598,394)
10,272,034
22,296,113
Note:
(i)
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
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.
NOTE 14:
EMPLOYEE BENEFITS PROVISIONS
Current
Employee benefits
Non-Current
Employee benefits
Number of employees at year end
2021
$
327,465
327,465
2020
$
582,959
582,959
2021
$
2020
$
179,410
170,154
141,635
129,469
9
14
48
Legend Mining Limited | Annual Report 2021
48
Notes to the Financial Statements
Notes to the Financial Statements
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 2 1
NOTE 15:
CONTRIBUTED EQUITY
Ordinary shares
Issued and fully paid
$3,140,000 raised by exercising of options in 2021
(cid:120)
76,900,000 ESOP options
$142,857,143 raised via Euroz in 2020
$6,534,800 raised by exercising of options in 2020
10,000,000 Musgrave options
3,250,000 ESOP options
150,000,000 Creasy options
(cid:120)
(cid:120)
(cid:120)
Capital raising costs (net of tax)
Movement in ordinary shares on issue 2021
At 1 January 2021
76,900,000 exercising of options
Capital raising costs
At 31 December 2021
Movement in ordinary shares on issue 2020
At 1 January 2020
142,857,143 shares via Euroz
163,250,000 exercising of options
Capital raising costs
At 31 December 2020
For the year ended 31 December 2021
2021
$
2020
$
98,373,061
72,479,184
3,140,000
-
-
20,000,000
400,000
134,800
6,000,000
(640,923)
98,373,061
$
98,373,061
3,140,000
(61,558)
101,451,503
$
72,479,184
20,000,000
6,534,800
(640,923)
98,373,061
-
-
-
(61,558)
101,451,503
No.
2,678,235,721
76,900,000
-
2,755,135,721
No.
2,372,128,578
142,857,143
163,250,000
-
2,678,235,721
Share option
premium reserve
$
23,851,799
546,638
24,398,437
23,615,178
236,621
23,851,799
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
NOTE 16: RESERVES
Movement in reserves
At 1 January 2021
Options issued to employees (refer note 18)
At 31 December 2021
At 1 January 2020
Options issued to employees(refer note 18)
At 31 December 2020
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.
49
Legend Mining Limited | Annual Report 2021
49
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 17: SHARE OPTIONS
Number
Exercise price
cents per share
2021
Unlisted options – Expiry date 30 March 2021
At 1 January 2021
Exercised 1 March 2021
At 31 December 2021
Unlisted options – Expiry date 11 July 2022
At 1 January 2021
At 31 December 2022
Unlisted options – Expiry date 30 September 2022
At 1 January 2021
Exercised 26 February 2021
At 31 December 2021
Unlisted zero exercise price options – Expiry date 10 August
2025 subject to vesting criteria (see Note 18)
At 1 January 2021
Granted on 26 March 2021
Exercised
Vested
At 31 December 2021
2020
Unlisted options – Expiry date 23 September 2020
At 1 January 2020
Exercised 21 September 2020
At 31 December 2020
Unlisted options – Expiry date 30 March 2021
At 1 January 2020
Exercised 17 April 2020
Exercised 3 August 2020
At 31 December 2020
Unlisted options – Expiry date 11 July 2022
At 1 January 2020
At 31 December 2020
Unlisted options – Expiry date 30 September 2022
At 1 January 2020
At 31 December 2020
Unlisted zero exercise price options – Expiry date 10 August
2025 subject to vesting criteria (see Note 18)
At 1 January 2020
Exercised
Vested
At 31 December 2020
4 cents
7.2 cents
7.2 cents
Zero cents
4 cents
4 cents
7.2 cents
7.2 cents
Zero cents
74,900,000
(74,900,000)
-
102,217,540
102,217,540
46,893,571
(2,000,000)
44,743,571
7,000,000
1,250,000
-
-
8,250,000
150,000,000
(150,000,000)
-
88,000,000
(10,000,000)
(3,100,000)
74,900,000
102,217,540
102,217,540
46,893,571
46,893,571
7,000,000
-
-
7,000,000
50
Legend Mining Limited | Annual Report 2021
50
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 18: SHARE BASED PAYMENT PLANS
(a) Recognised share-based payment expenses
During the 2021 year there were 1,250,000 ESOP options issued (2020: 7,000,000).
On 26 March 2021, pursuant to exception 12 of ASX Listing Rule 10.12, 1.25 million zero exercise price options expiring on 10
August 2025 issued under the Company’s Employee Incentive Plan Rules approved at the 2020 AGM (ESOP) to staff as follows:
(cid:120)
1,250,000 zero exercise price options vesting when the 20 day VWAP of share is greater than the Vesting Price of 28 cents per
share for a minimum period of 20 continuous ASX trading days during the life of the zero exercise price options, subject to
the employees remaining in employment during the vesting period and other terms and conditions determined by the
Company’s ESOP (Incentive Options Class C). The vesting period, being the period over which the options are expensed, is
based on the initial estimate of the vesting period when the options were granted.
The fair values of the 1,250,000 Incentive Options Class C, were calculated by using the Black-Scholes or Monte Carlo valuation
model applying the following inputs:
Exercise price (cents)
Life of the option (years)
Share price on grant date (cents)
Expected share price volatility
Risk free interest rate
Fair value at measurement date
Incentive-Options
Class C
0.0
5.0
0.1350
80%
0.4259%
0.1135
During 2020, 7,000,000 ESOP options were issued.
On 10 August 2020, pursuant to exception 12 of ASX Listing Rule 10.12, 7 million zero exercise price options expiring on 10 August
2025 issued under the Company’s Employee Incentive Plan Rules approved at the 2020 AGM (ESOP) to Mr Oliver Kiddie, (subject
to Mr Kiddie remaining in employment during the relevant vesting period) as follows:
(cid:120)
(cid:120)
(cid:120)
1,500,000 zero exercise price options vesting 12 months after they are issued (Incentive Options Class A);
1,500,000 zero exercise price options vesting 24 months after they are issued (Incentive Options Class B); and
4,000,000 zero exercise price options vesting when the 20 day VWAP of share is greater than the Vesting Price of 28 cents per
share for a minimum period of 20 continuous ASX trading days during the life of the zero exercise price options, and other
terms and conditions determined by the Company’s ESOP (Incentive Options Class C).
The fair values of the 1,500,000 Incentive Options Class A and 1,500,000 Incentive Options Class B issued in 2020, were calculated
by using the Black-Scholes European Option Pricing Model applying the following inputs:
Exercise price (cents)
Life of the option (years)
Share price on grant date (cents)
Expected share price volatility
Risk free interest rate
Fair value at measurement date
Incentive Option
Class A
0.0
5.0
0.1350
80%
0.4259
0.1350
Incentive Options
Class B
0.0
5.0
0.1350
80%
0.4259
0.1350
The fair values of the 4,000,000 Incentive Options Class C issued in 2020, were calculated by using the Monte Carlo Valuation
Model applying the following inputs:
Exercise price (cents)
Life of the option (years)
Share price on grant date (cents)
Expected share price volatility
Risk free interest rate
Fair value at measurement date
.
Incentive-Options
Class C
0.0
5.0
0.1350
80%
0.4259%
0.1135
51
Legend Mining Limited | Annual Report 2021
51
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 18: SHARE BASED PAYMENT PLAN (CONTD)
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 the 2020 Annual General Meeting (AGM) on 14 May 2020 shareholders approved the implementation of the current ESOP. A
summary of the current ESOP was included in the 2020 Notice of AGM.
(b) 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 (see note 17)
Exercised during the year (i), (ii)
Expired/lapsed during the year
Outstanding at the end of the year
Exercisable at the end of the year
Unvested at the end of the year
2021
No.
94,750,000
1,250,000
(76,900,000)
-
19,100,000
12,350,000
6,750,000
2021
WAEP
($)
0.041
-
0.042
-
0.041
0.045
2020
No.
91,000,000
7,000,000
(3,250,000)
-
94,750,000
87,750,000
-
7,000,000
2020
WAEP
($)
0.045
-
0.042
-
0.041
0.045
-
Other Options: 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
Exercised during the year (iii), (iv)
Expired/lapsed during the year
Outstanding at the end of the year
Exercisable at the end of the year
2021
No.
2021
WAEP
2020
No.
2020
WAEP
136,111,111
0.072
296,111,111
0.055
-
-
-
-
-
-
-
-
160,000,000
0.040
136,111,111
136,111,111
0.072
0.072
136,111,111
136,111,111
-
-
0.072
0.072
The following options were exercised during the year:
(i)
(ii)
74,900,000 ESOP options over ordinary shares with an exercise price of $0.04 each, exercisable immediately and expiring
on 30 March 2021;
2,000,000 ESOP options over ordinary shares with an exercise price of $0.072 each, exercisable immediately and expiring
on 30 September 2022;
52
Legend Mining Limited | Annual Report 2021
52
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
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
Share-based payments expense
Total compensation paid to Key Management Personnel
2021
$
778,615
6,500
64,275
435,418
1,284,808
2020
$
690,519
15,806
61,985
236,621
1,004,931
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 – lease capitalised to deferred exploration
Share-based payments expense
Fair value (gain)/loss on investments
Deferred exploration expenses
Movement in provisions and other
Income Tax Expense
Change in operating assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Net cash from/(used) in operating activities
Non-cash financing and investing activities
2021
$
500
1,257,967
17,000,000
18,258,467
(66,179)
2,573
7,839
70,448
(1,292)
546,638
-
(10,525)
21,422
(69,800)
501,124
(51,648)
(226,902)
222,574
2020
$
500
2,190,646
23,000,000
25,191,146
(1,062,610)
1,649
4,651
59,994
(838)
236,621
23,094
(11,710)
(3,783)
219,426
(533,506)
(267,813)
375,902
110,209
Other than listed above there were no other non-cash financing or investing activities during the 2021 or 2020 years.
53
Legend Mining Limited | Annual Report 2021
53
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
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
$2,373,000 (2020: $2,333,000) in the following twelve months in respect of tenement lease rentals and to meet minimum
expenditure requirements of the Department of Mines, Industry Regulation & Safety (DMIRS). 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 2021 and 31 December 2020. 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
Legend Cameroon Pty Ltd
Australia
NOTE 23: FINANCIAL INSTRUMENTS DISCLOSURE
2021
%
100
2020
%
100
2021
%
-
2020
%
-
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 all of the $500,000 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. The Group trades with investment grade institutions with a credit rating of AA-.
Since the Group only trades with recognised third parties, there is no requirement for collateral.
54
Legend Mining Limited | Annual Report 2021
54
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
NOTE 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.
(a)
Interest Rate Risk
The consolidated entity’s exposure to cash flow interest rate risk is as follows:
2021
Financial assets:
Cash and cash equivalents
Other financial assets
2020
Financial assets:
Cash and cash equivalents
Other financial assets
Weighted
Average
Interest Rate
Floating
Interest
$
Fixed
Interest
$
Non-Interest
Bearing
$
0.61%
1.84%
1,257,967
-
1,257,967
17,000,000
105,775
17,105,775
2,190,646
-
2,190,646
23,000,000
55,775
23,055,775
500
-
500
500
-
500
Total
$
18,258,467
105,775
18,364,242
25,191,146
55,775
25,246,921
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 $174,912 (2020: $142,575). 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
2021
$
18,258,467
33,907
105,775
18,398,149
2020
$
25,191,146
2,707,333
55,775
27,954,254
Except for the amount receivable from Jindal, all other trade and other receivables are current, apart from the rental bond
$5,775 (2020: $5,775) and have not been impaired.
55
Legend Mining Limited | Annual Report 2021
55
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
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 2021
Non-derivative financial liabilities
Trade and other payables
Lease liability
31 December 2020
Non-derivative financial liabilities
Trade and other payables
Lease liability
Carrying
Amount
$
327,465
106,634
434,099
Contractual
cash flows
$
327,465
106,634
434,099
6 mths
or less
$
327,465
42,612
370,077
Carrying
Amount
$
582,959
55,734
638,693
Contractual
cash flows
$
582,959
55,734
638,693
Greater
than
6 mths
$
-
64,022
64,022
6 mths
or less
$
582,959
55,734
638,693
(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:
31 December 2021
Carrying
Amount
$
Fair Value
$
-
18,258,467
105,775
33,907
(327,465)
18,070,684
-
18,258,467
105,775
33,907
(327,465)
18,070,684
31 December 2020
Carrying
Amount
$
Fair Value
$
-
25,191,146
55,775
2,707,333
(582,959)
27,371,295
-
25,191,146
55,775
2,707,333
(582,959)
27,371,295
Held for trading financial assets
Cash and cash equivalents
Security bond
Trade and other receivables
Trade and other payables
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.
56
Legend Mining Limited | Annual Report 2021
56
Notes to the Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2021
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 2 1
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
2021
$
18,392,374
54,195,035
597,132
773,053
53,421,982
101,451,503
(72,427,958)
24,398,437
53,421,982
2020
$
27,948,479
50,840,675
792,470
977,594
49,863,081
98,373,061
(72,361,779)
23,851,799
49,863,081
Loss of the parent entity after tax
Total comprehensive loss of the parent entity
(66,179)
(66,179)
(1,062,610)
(1,062,610)
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.
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
NOTE 27: CONTINGENT LIABILITIES
There are no contingent liabilities at the date of this report.
Consolidated
2021
$
2020
$
37,270
37,270
36,539
36,539
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
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.
57
Legend Mining Limited | Annual Report 2021
57
Directors’ Declaration
Directors’ Declaration
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 31-58, and the remuneration disclosures that are
contained in the Remuneration report in the Directors report pages 24-30, of the consolidated
entity, are in accordance with the Corporations Act 2001, including;
i
ii
iii
Giving a true and fair view of the consolidated entity’s financial position as at 31
December 2021 and of its performance for the year ended on that date; and
Complying with Australian Accounting Standards’ and the Corporations Regulations 2001;
and
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 2021.
On behalf of the Board.
Mark Wilson
Managing Director
Dated this 18th day of March 2022
58
Legend Mining Limited | Annual Report 2021
58
Declaration of Auditor’s Independence
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 to the directors of Legend Mining
Limited
As lead auditor for the audit of the financial report of Legend Mining Limited for the financial year ended
31 December 2021, I declare to the best of my knowledge and belief, there have been:
a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b. No contraventions of any applicable code of professional conduct in relation to the audit; and
c.
No non-audit services provided that contravene 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
18 March 2022
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Legend Mining Limited | Annual Report 2021
59
Independent Auditor’s Report
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 2021 the consolidated statement of comprehensive income, consolidated statement of
changes in equity and 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:
a.
Giving a true and fair view of the consolidated financial position of the Group as at 31 December
2021 and of its consolidated financial performance for the year ended on that date; and
b.
Complying with Australian Accounting Standards and the Corporations Regulations 2001 .
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (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 each 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 these matters. 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 matters 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
60
Legend Mining Limited | Annual Report 2021
Independent Auditor’s Report
Accounting for and carrying value assessment of deferred exploration costs
Why significant
How our audit addressed the key audit matter
We evaluated the Group’s assessment of indicators of
impairment of its deferred exploration and evaluation
asset in accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources.
In performing our procedures, we:
► Considered the Group’s process for identifying and
considering indicators of impairment and the
completeness of the matters identified
► 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 ability to finance any planned future
exploration and evaluation activity
► 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.
As disclosed in Note 12 of the financial report, at 31
December 2021 the Group recognised deferred
exploration and evaluation expenditure asset of
$34.9 million, predominantly related to its Rockford
Project exploration tenements.
Included in deferred exploration and evaluation
expenditure, and treated as a reduction in the
amount capitalised, is research and development
(R&D) tax incentive benefits received of $0.8 million.
The carrying value of exploration and evaluation
expenditure is assessed for impairment by the Group
when facts and circumstances indicate that the
exploration and evaluation expenditure may exceed
its recoverable amount.
The determination as to whether there are any
indicators to require deferred exploration and
evaluation expenditure to be assessed for
impairment, involves a number of judgements,
including assessing the intention of the Group to
carry out significant exploration and evaluation
activity in the near future, and, whether there is
sufficient information available to conclude that the
area of interest is not commercially viable.
Due to the size of the deferred exploration and
evaluation expenditure asset relative to the Group’s
total assets and the judgement involved in assessing
whether indicators of impairment exist at 31
December 2021, this was a key audit matter.
Refer to Note 2 Significant accounting policies to the
financial report for accounting policies in relation to
exploration and evaluation assets and Note 12
Deferred exploration costs for the amounts held on
the Statement of financial position by the Group as
at 31 December 2021 and related disclosure.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2021 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.
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Legend Mining Limited | Annual Report 2021
61
Independent Auditor’s Report
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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 directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
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62
Legend Mining Limited | Annual Report 2021
Independent Auditor’s Report
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
► Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
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 26 to 29 of the directors’ report for the
year ended 31 December 2021.
In our opinion, the Remuneration Report of Legend Mining Limited for the year ended 31 December
2021, 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
18 March 2022
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Legend Mining Limited | Annual Report 2021
63
Tenement Listing
Shareholder Information
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 2 1
As at 8 March 2022
SHAREHOLDER INFORMATION AT 8 MARCH 2022
The issued capital of the company is 2,755,135,721 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
31,653
2,406,426
9,384,185
145,403,170
2,597,910,287
2,755,135,721
Holders
142
606
1,148
3,479
1,614
6,989
Number of holdings less than a marketable parcel
5,071,022
1,164
Top 20 Shareholders
Rank Name
Units
% of Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CREASY GROUP
IGO LIMITED
WILSON GROUP
BAILEY GROUP
NI 28 PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR MATTHEW MCLEISH
THREE CHEEKY MONKEYS HOLDINGS PTY LTD
CITICORP NOMINEES PTY LIMITED
PHH PTY LIMITED
ATKINS GROUP
WATERFIELD GROUP
NINO CONSTRUCTIONS PTY LTD
MUSGRAVE MINERALS LIMITED
MICHAELMAS ISLAND PTY LTD
LISTOGA PTY LTD
MATTHEW & KIM LI HOWARD SUPERANNUATION PTY LTD
MR THOMAS BENJAMIN WILSON
MR PHILIP ROY TRAFFORD
MR RAYMOND MATTHEW SCIBERRAS
823,153,914
356,578,323
174,748,200
153,749,674
25,000,000
24,798,328
24,000,000
19,404,000
18,727,540
17,800,000
17,108,334
13,875,000
13,161,547
12,500,000
11,216,945
10,000,000
9,455,844
9,400,000
8,650,000
8,400,000
29.88
12.94
6.34
5.58
0.91
0.9
0.87
0.7
0.68
0.65
0.62
0.5
0.48
0.45
0.41
0.36
0.34
0.34
0.31
0.3
TOTAL
1,751,727,649
63.56
Substantial shareholders
Name
CREASY GROUP
IGO LIMITED
WILSON GROUP
BAILEY GROUP
Shares
823,153,914
356,578,323
174,748,200
153,749,674
% of Units
29.88
12.94
6.34
5.58
Unlisted Option holders
Class of options
11 July 2022 exercisable at 7.2 cents per share
30 September 2022 exercisable at 7.2 cents per share
10 August 2025 zero exercise price subject to three relevant vesting periods
Options
102,217,540
44,743,571
8,250,000
Holders
1
7
3
64
64
Legend Mining Limited | Annual Report 2021
Tenement Listing
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 2 1
AUSTRALIA – FRASER RANGE – ROCKFORD PROJECT
Tenements held at 8 March 2022
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
E28/2795
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Tenement Listing
For the year ended 31 December 2021
Percentage Interest
70%
70%
70%
70%
70%
70%
10%
10%
70%
100%
100%
30%
30%
30%
100%
65
Legend Mining Limited | Annual Report 2021
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