2022
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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2
3
23
30
31
32
33
34
55
56
57
62
63
Web
legendmining.com.au
ASX Code
LEG – ordinary shares
Email
legend@legendmining.com.au
ACN
060 966 145
Company Directory
DIRECTORS
Michael Atkins (Chairman)
Mark Wilson (Managing Director)
Oliver Kiddie (Executive Director)
Hilary Macdonald (Non-Executive Director)
SECRETARY
Tony Walsh
REGISTERED OFFICE
Level 1
8 Kings Park Road
WEST PERTH WA 6005
Telephone:
(08) 9212 0600
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
BANKERS
SHARE REGISTRY
Australian and New Zealand Banking Group Ltd
1275 Hay Street
WEST PERTH WA 6005
Advanced Share Registry Services
110 Stirling Highway
NEDLANDS WA 6009
Telephone: (08) 9389 8033
(08) 9389 7871
Facsimile:
Legend Mining Limited | Annual Report 2022
1
Directors’ Review of Activities Chairman’s Letter
Dear Fellow Shareholders
Once again Legend has had a very active year of exploration at the Rockford Project
and made considerable progress on several fronts during the year. The Mawson
3D seismic survey was completed and six diamond drillholes completed to further
understand the potential chonolith host stratigraphy and associated nickel-copper
sulphide mineralisation. A large 3D seismic survey was designed and data collection
completed at Octagonal during November 2022, with the final model due to be received
in April 2023 along with a reprocessed seismic model for Mawson. Meanwhile regional
programmes continued.
The recent announcement of a maiden Mineral
Resource Estimate at Mawson is quite an achievement
for Legend. This is only the third published nickel-
copper sulphide resource in the Fraser Range.
The coming year looks to be another exciting one with
the modelling of both seismic surveys defining the
2023 diamond drilling programmes at both Mawson
and Octagonal.
Legend has continued to engage in substantial
exploration activity with the 2022 exploration spend
being circa $8 million with significant funds provided
from R&D tax refunds. It is again pleasing to see a
very modest administration and corporate expense
for the year compared to direct exploration costs.
This is due to the diligent job done by our small but
competent management team.
As Chairman, it gives me great pleasure to see how
our management group continues to work together
as a strong focussed team. I would like to once
again thank our executive team, led by Mark Wilson,
for the professional job they have done to continue
the systematic work at such a high technical and
professional standard.
In mid 2022 the Board undertook a review of
the Board composition. Following that review, in
September 2022 we appointed a new non-executive
director, Hilary Macdonald. I am pleased to say that
Hilary has already had a positive influence on the
Board dynamics and I am confident will be a great
contributor going forward. I have decided that now,
after 20 years, is an appropriate time to retire as your
Chairman, effective at the conclusion of the upcoming
Annual General Meeting. I feel very confident that I
leave Legend with strong corporate and technical
management and a strong Board.
I thank my fellow shareholders for your continuing
support, and I look forward to sharing with you the
benefits of the Legend exploration programme as a
major player in the Fraser Range.
Michael Atkins
Chairman
2
Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities SUSTAINABILITY
Legend Mining Limited (Legend or The Company) 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.
The Company continues to review and update its sustainability policies in line with best
practice. These sustainability policies apply to all our people and implementation of
these policies and their supporting standards and procedures are required across all
Legend operations.
ENVIRONMENT
WORK HEALTH
AND SAFETY
COMMUNITY
GOVERNANCE
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.
Work Health and 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 work 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 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 2023 Corporate Governance Statement was
approved by the Board on 15 March 2023 and
is current as at 15 March 2023. A description of
Legend’s current corporate governance practices is
set out in Legend’s Corporate Governance Statement
which can be viewed at www.legendmining.com.au
Legend Mining Limited | Annual Report 2022
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 2,993km2 (see Figures 1 and 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 14 granted
exploration licences with a detailed breakdown of
ownership, area and manager given below:
■ Legend (100%) 144km2;
■ Legend (70%)/Creasy Group (30%) Three JVs
covering 2,191km2 with Legend manager;
■ IGO (60%)/Creasy Group (30%)/Legend (10% free
carry) JV covering 634km2 with IGO manager;
■ IGO (70%)/Legend (30% free carry) JV covering
24km2 with IGO manager.
The Rockford Project covers a strike length of ~100km
over a regional gravity high “ridge” associated with
dense mafic/ultramafic intrusive rocks of the Fraser
Zone, within the larger Albany-Fraser Orogen.
The Nova-Bollinger deposit and the Silver Knight
deposit, both located within the Fraser Zone, are
situated on a similar tenor gravity ridge to that of the
Rockford Project.
Legend advanced its 2022 exploration activities at the
Rockford Project on several fronts.
The final model from the Mawson 3D seismic survey
was received in March 2022 followed by diamond
drill testing of seismic targets. The initial drilling was
testing features identified as potential chonolith
host stratigraphy and associated Ni-Cu sulphide
mineralisation. A maiden Mineral Resource Estimate at
Mawson was announced on 2 February 2023.
A large (>24km2) 3D seismic survey was designed and
commissioned at Octagonal during October 2022, with
the final model due to be received in April 2023.
Regionally, aircore drilling and innovative MLTEM
commenced during April 2022. This systematic
exploration advanced highly ranked targets and
continued to deliver the next pipeline of Ni-Cu targets
and testing across Areas W, X and Y (see Figure 2).
Figure 1: Rockford Project Location
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Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities Figure 2: Rockford Project - prospect locations
Legend Mining Limited | Annual Report 2022
5
Directors’ Review of Activities MAWSON PROSPECT
A summary of 2022 exploration activities and results
for Mawson are provided below.
Exploration completed at Mawson during 2022
included:
The Mawson prospect lies 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. The
mineralised intrusion remains open in multiple
directions as exploration drilling continues. To assist
in drill targeting, specifically to identify the source
of the Mawson chonolith, 3D seismic was acquired
in December 2021. Subsequent modelling delivered
diamond drill targets below existing drilling depth.
These seismic targets were tested with diamond
drilling in 2022.
■ Completion of the 3D seismic survey data model
■ Diamond drilling of seismic targets – 6 holes for
4,446.5m
■ DHTEM surveying of all diamond drillholes and
associated modelling
■ Downhole petrophysical logging of the completed
diamond drillholes
■ Drill core petrophysical property measurements
on the completed diamond drillholes
■ External geochemical assessment, including
intrusion fingerprinting study
■ Evolution of the 3D structural model of Mawson
■ Detailed petrology of host lithologies and
associated primary Ni-Cu-Co mineralisation
■ Comprehensive interpretation of all data collected
for 2022.
Figure 3: Mawson diamond drilling priority seismic target areas
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Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities The 3D model evolution utilising updated geophysical
and geological modelling continues to drive focused
exploration targeting at Mawson. Complementing
this is the final 3D seismic survey cube (see Figure
4). Subsequent modelling combining seismic, drilling,
geological, and geophysical datasets resulted in a
series of highly ranked targets being identified for
diamond drill testing across Mawson in 2022.
3D Seismic Survey
HiSeis Pty Ltd completed the data processing phase
of the 3D seismic survey at the Mawson prospect
in March 2022. Time and depth modelling was also
completed, with delivery of the final Mawson 3D cube
(see Figure 4).
The aim of the survey was 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 4). In addition, a more detailed survey on the
western side of the survey area was 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).
Figure 4: Orthogonal view of the 3D seismic cube of the Mawson survey
Legend Mining Limited | Annual Report 2022
7
Directors’ Review of Activities Data processing and subsequent modelling completed
for the Mawson 3D seismic cube highlighted the
excellent correlation between the seismic dataset
and the existing detailed constrained gravity inversion
(see Figure 5 and Figure 6). The 3D seismic data
supports the exploration model at Mawson, that a
large intrusive source continues at depth below drilling
completed to date. 3D seismic reflectors clearly map
the mineralised chonolith in drilled areas down to
500m below surface. The chonolith is interpreted
to extend below 500m, below the Mawson fault,
to a possible keel position at ~800m to 1,000m.
This interpretation is supported with drill data from
RKDD030 and RKDD033 which both intersected
mineralised intrusion below the Mawson fault,
proximal to the new priority target zones (see ASX
Announcements 20 November 2020 and 1 December
2020 and Photo 1). This interpreted keel position is
defined by a complex set of reflectors and structural
breaks, consistent with the seismic signature of the
Mawson discovery zone. The base of this interpreted
keel of the Mawson chonolith is coincidental with the
large, flat-lying D8 FLTEM conductor (see Table 1).
Photo 1: Net-textured and heavy disseminated Ni-Cu sulphide from RKDD033 from 394m, NQ2
Table 1: FLTEM Conductor Parameters
Conductor
Conductance
Dimensions
Plate Orientation
Depth to Plate
Plate Dip
D8
~3,000-4,000S 1,000m x 1,000m
NE-SW
~800m below surface
20-400 SE
Figure 5: Cover corrected constrained gravity 1VD
projected to surface
Figure 6: Seismic survey velocity data projected
to surface
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Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities RKDD081 was the first diamond drillhole to interrogate
the interpreted keel below the Mawson fault (see
Figures 3 and 7). Drilling conditions encountered
resulted in slower than anticipated drilling rates and a
swing in the hole trace, with rotation, away from planned
trajectory. The drillhole largely intersected intrusive
suites and metasedimentary packages where predicted.
The lower zone of the target zone intersected various
mafic intrusive suites, including a heavily disseminated
gabbronorite intrusion at 840m downhole (see Photo
2). Early interpretation of the intrusive suite intersected
in RKDD081 suggests the drillhole has tested an area
marginal to the main chonolith.
Further data analysis and additional drilling will aid in
refinement of the initial interpretation.
DHTEM has been completed on RKDD081 with results
inconclusive. The FLTEM D8 conductor was unable
to be reconciled with DHTEM data from RKDD081
(see Table 1). The very complex nature of the EM
environment at Mawson has made deciphering
conductive sulphide bodies difficult, due to the
blinding effects of the large stratigraphic D5 conductor
in this location (see Figure 7).
Photo 2: Heavy disseminated sulphide intrusion from
RKDD081 from 840m, NQ2
Figure 7: 3D Seismic section A-A’ showing the Mawson chonolith with diamond drillhole RKDD081
*Note – RKDD030 and RKDD033 projected onto section for illustration purposes
Legend Mining Limited | Annual Report 2022
9
Directors’ Review of Activities Figure 8: 3D Seismic section B-B’ showing the Mawson chonolith with diamond drillhole RKDD082W1
Petrophysical property measurements were
undertaken with hand-held and downhole
instrumentation.
RKDD082 and RKDD082W1 diamond drillholes were
designed to interrogate an area of seismic signature
interpreted to be a continuation of prospective
chonolith below existing drilling, separated by a
metasedimentary raft (see Figure 3 and 8). Difficult
drilling conditions again resulted in slower than
anticipated production. In addition, the RKDD082 drill
trace swung significantly off target. RKDD082W1 was
drilled as a wedge off RKDD082 at 347.4m. Following
the wedge off the parent drillhole, an additional six
navigational cuts were made to keep the drillhole trace
along the proposed target drill trace. The drillhole
intersected a largely prospective intrusive package
below existing drilling levels, confirming the Mawson
chonolith extends at depth as predicted. The lower
zone of RKDD082W1 encountered a structural change
where a sub-vertical metasedimentary package
was intersected (Photo 3). The hole was terminated
prematurely at 993m due to the drill rods becoming
stuck in broken ground. Preliminary structural analysis
and geological logging suggest a change in intrusion
geometry, with the chonolith further west.
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Legend Mining Limited | Annual Report 2022
Photo 3: Cross-cutting massive sulphide vein from
RKDD082W1 from 819.3m, NQ2
Directors’ Review of Activities Figure 9: 3D Seismic section C-C’ showing the Mawson chonolith with diamond drillhole RKDD083
This working model will be evolved with
additional data from RKDD082W1 and future drill
testing. Petrophysical property measurements
were undertaken with hand-held and downhole
instrumentation.
Diamond drillhole RKDD083 was designed to target
a seismic feature interpreted to be prospective
chonolith below the Mawson discovery zone, offset
by the Mawson fault (see Figures 3 and 9). The
drillhole intersected the mineralised chonolith and
metasedimentary packages, as predicted, above
the Mawson fault. Below the fault, an assemblage
of metasedimentary units and lesser mafic intrusive
suites were intersected, including narrow veins of
cross-cutting massive sulphide mineralisation (see
Photo 4). The upper level of the main target zone
encountered a prospective ultramafic unit with large
amounts of digested metasediment. Marginal to this
unit, a zone of heavy disseminated to net-textured
magmatic sulphide was intersected at 751m downhole
(see Photo 5).
Photo 4: Cross-cutting massive sulphide vein from
RKDD083 from 480m, NQ2
Photo 5: Heavy disseminated and net-textured
sulphide from RKDD083 from 751m, NQ2
Legend Mining Limited | Annual Report 2022
11
Directors’ Review of Activities Figure 10: 3D Seismic section D-D’ showing the Mawson chonolith with diamond drillhole RKDD084
Further data analysis is required, including structural
vectoring and additional drilling, which will aid in
refinement of this new target zone. Petrophysical
property measurements were undertaken with hand-
held and downhole instrumentation.
Diamond drillhole RKDD084 was designed to
interrogate an area of seismic signature interpreted
to be a continuation of prospective chonolith below
existing RC drilling (see Figures 3 and 10). The
drillhole intersected a mineralised mafic intrusive
package below existing drilling levels, confirming the
Mawson chonolith extends at depth as predicted by
the 3D seismic. The intrusive package was intersected
over a wide zone as an intense array of norite and
gabbronorite flat-lying and cross-cutting dykes into
the metasedimentary assemblage. Importantly, this
metasedimentary assemblage contained a large
abundance of carbonate, identified for the first time
in abundance at Mawson. A <1m zone of massive
magmatic sulphide with intense carbonate digestion
was intersected at 450m downhole (see Photo 6). This
intercept is strong evidence of carbonate horizons
acting as preferential mineralisation traps. These
carbonate stratigraphic horizons act as preferential
pathways for the intrusion to propagate and focus into
a zone in the country rock, as well as supplying easily
digestible volatile for the mineralised intrusion. This is
12
Legend Mining Limited | Annual Report 2022
Photo 6: Massive sulphide with digested carbonate
from RKDD084 from 450m, NQ2
a significant identification in the understanding of the
Mawson chonolith host stratigraphy, as the carbonate
stratigraphic horizon is the host of the Nova chonolith
and hosts the Nova and Bollinger orebodies. Detailed
analysis continues on RKDD084.
Petrophysical property measurements were
undertaken with hand-held and downhole
instrumentation.
Directors’ Review of Activities Figure 11: 3D Seismic section E-E’ showing the Mawson chonolith with diamond drillhole RKDD085
Diamond drillhole RKDD085 was designed to intersect
a seismic signature replication of that identified by
diamond drilling ~150m south (see Figures 3 and 11).
The geological, structural, and seismic interpretation
was that the mineralised chonolith continues to the
north-west of existing diamond drilling coverage. The
drillhole intersected and extended the mineralised
chonolith as predicted, confirming the chonolith
extends and remains open to the north-west. The
upper level of the main target zone encountered a
prospective mafic intrusive with lesser ultramafic.
The lower target zone intersected more ultramafic
intrusive with variable zones of disseminated to blebby
magmatic sulphide (see Photos 7 and 8).
The drillhole finished in a metasedimentary package
as predicted by the seismic interpretation. Further
data analysis is continuing, including structural
vectoring and additional aircore drill planning, which
will aid in refinement of this new target zone.
Petrophysical property measurements were
undertaken with hand-held and downhole
instrumentation.
Reprocessing of the 3D seismic data is underway to
refine existing models, refine existing targets, and
define new targets across the Mawson intrusion.
Delivery of the final reprocessed 3D cube is scheduled
for April 2023.
Photo 7: Ni-Cu sulphide mineralisation from RKDD085
from 234m
Photo 8: Ni-Cu sulphide mineralisation from RKDD085
from 237m downhole
Legend Mining Limited | Annual Report 2022
13
Directors’ Review of Activities Mawson Mineral Resource Estimate
On 2 February 2023, Legend announced a maiden Mineral Resource Estimate (MRE) of 1.45Mt @ 1.14% Ni,
0.74% Cu and 0.07% Co (1.2% NiEq) at the Mawson Deposit. The details of the MRE are in Table 2 below and
shown in Figures 12 and 13.
Table 2: Mawson Mineral Resource Estimate (Jorc 2012) – February 2023*
Classification Tonnage
NiEq
Indicated
Inferred
Total
Mt
0.86
0.59
1.45
%
1.41
0.90
1.20
Ni
%
1.34
0.85
1.14
Cu
%
0.88
0.52
0.74
Co
%
0.08
0.07
0.07
Ni Metal Cu Metal Co Metal
t
11,500
5,000
t
7,600
3,100
t
700
400
16,500
10,600
1,100
* Mawson Maiden Mineral Resource Estimate by classification reported above 0.5% NiEq cut-off.
Figure 12: Mawson Mineral Resource Classification projected to surface with drillhole locations and chonolith
projected to surface on AMAG
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Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities
Figure 13: Mawson Mineral Resource Classification – oblique view facing north-west
Legend Mining Limited | Annual Report 2022
15
Directors’ Review of Activities OCTAGONAL PROSPECT
HiSeis was engaged by Legend to conduct a 3D
seismic survey at the highly prospective Octagonal
prospect within the Rockford Project, Fraser Range,
WA (see Figures 2 and 14). The aim of the survey was
to define the architecture of the Octagonal Intrusive
Complex in relation to the stratigraphic package, to
a depth of investigation of a minimum 1500m below
surface. The decision to conduct this +$1M survey
was based on the results Legend is generating from
the drilling of seismic targets at the Mawson prospect.
HiSeis mobilised to site in mid-October 2022 to
commence the data acquisition phase of the 3D
seismic survey, which was completed by the end of
November 2022. Processing of the data and delivery
of the final 3D model is scheduled for April 2023.
On receipt of the 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 2023 field season at Octagonal.
Octagonal Prospect Background
The Octagonal Intrusive Complex (“Octagonal”) was
originally targeted by the Creasy Group due to its
distinctive “eye” aeromagnetic feature, which has
remarkably similar shape and size characteristics with
the Nova “eye” (see Figure 15). Soil sampling and
aircore drilling across Octagonal returned anomalous
Ni-Cu values and identified highly favourable Ni-Cu
host rocks including olivine gabbronorite, troctolite,
peridotite, gabbronorite and norite. RC and diamond
drilling was then undertaken, mainly on the south-
eastern and southern margins of the intrusive complex
targeting EM conductors and IP features.
Figure 14: 3D Seismic Survey lines across the Octagonal Intrusive Complex with geology map
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Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities 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, however it
demonstrates all the characteristics of a fertile
magmatic Ni-Cu sulphide system, akin to the known
deposits of Nova-Bollinger and Silver Knight in the
Albany-Fraser Belt. Significantly, Octagonal sits within
the same structural corridor that hosts the Nova and
Silver Knight intrusions and Ni-Cu-Co deposits.
Legend drilled its first diamond hole into the
Octagonal Intrusive Complex in August 2021 (see ASX
Announcement 20th September 2021 and Photo 9
below).
Figure 15: Nova AMAG ‘eye feature’ left and Octagonal AMAG ‘eye feature’ right (scale 1:1)
Photo 9: Ni-Cu sulphide mineralisation from OCDD001 from 545.2m and 579.5m at the Octagonal Prospect
Legend Mining Limited | Annual Report 2022
17
Directors’ Review of Activities REGIONAL ROCKFORD
A total of 238 aircore holes (RKAC1480-1717) for
18,571m and innovative EM surveys have been
completed for the 2022 field season over selected
areas within the greater Rockford Project (see Figure
16).
The completed drilling was targeting a combination
of aeromagnetic and gravity features interpreted to
represent ultramafic and mafic intrusives within the
same structural domain as Mawson. This domain is
characterised by an elevated gravity and low magnetic
response which extends southwest and northeast of
Mawson and has only been tested with limited aircore
drilling to date. Encouragingly, prospective mafic
and ultramafic host rocks were encountered across
target areas. Detailed analysis, including geochemical
ranking and petrology is ongoing.
Newly identified Areas W, X, and Y are discussed in
detail below and significant assay results from these
Areas are detailed in Table 3.
Area W
Area W was selected for first pass aircore drilling
targeting a folded “eye” like feature in aeromagnetic
data. The drilling intersected anomalous nickel and
copper associated with olivine bearing websterite in
multiple drillholes, within a regional metasedimentary
package. The assay result from RKAC1566 of 12m
@ 0.1% and 0.09%Cu from 58m in a favourable
ultramafic host rock is an encouraging first pass
result. Geochemically, three wide-spaced aircore
drillholes across Area W display the key indicator
elements associated with fertile Ni-Cu intrusions when
plotted against the fertile intrusion datasets of the
Fraser Range including Nova, Mawson, and Octagonal
(see Figures 17, 18 and 19).
Innovative high power MLTEM surveying over the
area identified a deep, poorly constrained conductor
located west south-west of the anomalous aircore
holes. Follow up FLTEM surveying to better
define the feature identified a conductor plate with
modelled parameters of ~300m x 300m in size, with a
conductance of 2,500-4,500S at a depth of 600-650m
(see Table 4). Further evaluation of this conductor and
anomalous aircore geochemistry is planned.
Area X and Area Y
First pass aircore drilling was completed over Area
X and Area Y, located 5-10km directly south-west of
Mawson, targeting a combination of aeromagnetic
and gravity features. The drilling has intersected
extensive ultramafic and mafic intrusives including
olivine websterite and gabbronorite, visually similar
to those which host Ni-Cu mineralisation at Mawson.
Geochemistry supports the visual assessment that
these identified intrusions plot on or proximal to
prospective trends as defined in Figures 17, 18, and
19. Given the wide-spaced nature of first pass aircore,
these results are encouraging as early indications
suggest a potential cluster of newly identified fertile
Ni-Cu intrusions.
Infill aircore and high-power moving loop
electromagnetic surveying is planned to further
evaluate Areas W, X, and Y.
Table 3: Aircore Drill Assays >0.05% Ni
Hole
From
RKAC1491
RKAC1498
RKAC1509
RKAC1510
RKAC1566
RKAC1571
RKAC1605
54
63
79
80
58
58
65
To
66
67
83
112
70
66
68 EOH
Int
12
4
4
32
12
8
3
Ni%
0.06
0.05
0.05
0.05
0.10
0.06
0.05
Cu%
Co%
Cr%
0.01
0.02
0.01
0.02
0.09
0.02
0.06
0.01
0.01
0.01
0.01
0.02
0.02
0.01
0.09
0.04
0.14
0.14
0.38
0.20
0.02
Fe%
10.83
11.11
12.66
10.50
15.11
15.00
9.09
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Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities Figure 17: Zr vs Cu for Table 3 bottom of hole aircore for Areas W, X, Y and Fraser Range mafics compared
with the Nova, Mawson, and Octagonal mineralised intrusions. Mineralised intrusion samples are defined by
Zr-Cu values on the Cu-rich side of the mantle line. These compositions are interpreted as fractionated sulphide
magmas which have the ability to form orebodies. *
Figure 18: Cu vs Ni plot highlighting Table 3 bottom
of hole aircore drillholes from Areas W, X, and Y
compared to known mineralised intrusions of Mawson
and Octagonal.
Figure 19: Ni-Cr-Ti plot comparing mineralised
intrusion of Nova, Mawson, and Octagonal with Table
3 bottom of hole aircore samples for Areas W, X, and
Y. Plot of immobile elements applicable as a proxy
in the weathered environment to identify prospective
mineralised intrusions. *
* Figures 15 & 17 data sourced from WAMEX open file No.96247. Geochemical plots referenced from
Lithogeochemistry in exploration for intrusion-hosted magmatic Ni-Cu-Co deposits, Stephen J Barnes 2022.
EM Surveying
Following a review of regional aeromagnetic
and gravity datasets, previous aircore drilling,
and lithological domain mapping, 12 areas were
selected for follow up with innovative high power
electromagnetic surveying. The fifth of the twelve
areas was completed in the December 2022 Quarter.
Conductors have been identified at the first four areas
surveyed (see Table 4 and Figure 16). This technique
has proven successful in detecting conductive bodies
beneath thick, conductive transported cover for
Legend across the Rockford Project.
Legend Mining Limited | Annual Report 2022
19
Directors’ Review of Activities Figure 16: Aircore and EM activity over aeromagnetic image and gravity inversion highs
Table 4: Modelled MLTEM/FLTEM Conductor Parameters
Conductor
Conductance
Dimensions
Depth to Top Plate Orientation
Plate Dip
Conductor A
2,500-5,000S
>1,000m x 1,000m
75-125m
Conductor B
500-1,500S
>1,000m x 1,000m
50-100m
NE-SW
NE-SW
55-750 NW
30-500 SE
Conductor C
1,000-1,500S
750m x >750m
50-75m
NNE-SSW
65-750 ESE
Conductor D
750-1,750S
>1,000m x 1,000m
75-125m
Area W (FLTEM)
2,500-4,500S
~300m x 300m
600-650m
NE-SW
NE-SW
65-750 NW
20-400 SE
20
Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities Figure 20: 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 (15 February 2022, 17 March 2022, 11 April 2022, 9 June 2022, 29 July 2022, 17 August 2022, 15 September 2022, 17
November 2022) and Mr Oliver Kiddie consent to the inclusion of these Results in this report. Mr Kiddie has advised that this consent
remains in place for subsequent releases by Legend of the same information in the same form and context, until the consent is
withdrawn or replaced by a subsequent report and accompanying consent. Legend confirms that it is not aware of any new information
or data that materially affects the information included in the original market announcements and that all material assumptions and
technical parameters in the market announcements continue to apply and have not materially changed. Legend confirms that the
form and context in which the Competent Person’s findings are presented have not been materially modified from the original market
announcements.
The information in this report that relates to Legend’s Mineral Resource for the Mawson Deposit is a compilation of a previously
reported release to ASX by Legend Mining on 2 February 2023 and Mr Shaun Searle’s consent to the inclusion of Legend’s Mineral
Resource for the Mawson Deposit in that report. Mr Searle has advised that this consent remains in place for subsequent releases
by Legend of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report
and accompanying consent. Legend confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcement and that all material assumptions and technical parameters in the market announcement
continue to apply and have not materially changed. Legend confirms that the form and context in which the Competent Persons’
findings are presented have not been materially modified from the original market announcement.
Legend Mining Limited | Annual Report 2022
21
Directors’ Review of Activities CORPORATE
Director Appointment
On 6 September 2022, Legend bolstered its team with
the appointment of experienced corporate and mining
lawyer, Hilary Macdonald, as a non-executive director.
Ms Macdonald’s previous experience as Legend’s
external legal adviser gives her an invaluable insight
into Legend, its people and the Rockford Project.
For further details on Ms Macdonald, please see the
Directors’ Report.
Jindal Receivable
Legend received the final principal payment owing
from Jindal of $500,000 at the end of March 2022.
The total amount of interest on delayed payments
received from Jindal for the period of December 2015
to March 2022 was $656,803.
Lapse of Options
On 11 July 2022, 102,217,540 unlisted options
exercisable at 7.2 cents lapsed unexercised. In
addition, 44,743,571 unlisted options exercisable at
7.2 cents lapsed unexercised on 30 September 2022.
Change of Directors Interest
Late in December 2022 and early in January 2023,
the Company’s Managing Director, Mark Wilson,
increased his interests in the Company by the
acquisition on-market of 2,500,000 ordinary shares,
increasing his relevant interest in the Company to
177,248,200 ordinary shares, being a 6.43% interest
in the Company.
Options Vesting
During the year, 1.5 million zero exercise price options
issued to Mr Oliver Kiddie in August 2020, vested on
their terms in the September 2022 Quarter. The expiry
date of these options is 10 August 2025.
R&D refund received
Legend lodged its FY2022 tax return in December
2022 and in late December 2022 received a Research
and Development Cash Refund from the Australian
Taxation Office of $2.93 million.
Annual General Meeting
On 29 April 2022, the 2022 Annual General
Meeting was held in compliance with the Australian
government’s restrictions on public gatherings at that
time. Due to the COVID-19 situation at that time,
shareholders attended the meeting in person and
online. All resolutions considered at the 2022 Annual
General Meeting were passed on a poll.
The 2023 Annual General Meeting is planned to
be held at 3.00pm on Friday, 5 May 2022. All AGM
resolutions will be decided on a poll.
22
Legend Mining Limited | Annual Report 2022
Directors’ Review of Activities Directors’ Report
Directors’ Report
For the year ended 31 December 2022
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 2
The Directors submit their report for the year ended 31 December 2022.
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)
On 6 September 2022, Hilary Macdonald was appointed as an independent Non-Executive Director of the Company.
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 2022 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, all ASX listed entities, and a non-executive director of Warrego Energy
Limited (delisted from the ASX on 9 March 2023). Mr Atkins 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. Mr Wilson has not held any
former public company directorships in the last three years.
Oliver Kiddie, BSc App Geol, MAusIMM, MAICD, 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.
Hilary Macdonald LLB (HONS), FGIA (appointed 6 September 2022) is a lawyer with 30 years’ experience in private practice
and industry in the UK and Australia, with particular focus on corporate and mining law. A law graduate of Bristol University,
England, Ms Macdonald qualified as a solicitor in London and was admitted to the Supreme Court of England and Wales in
1990, and to the Supreme Court of Western Australia in 1995. Ms Macdonald was Legend Mining’s external legal adviser from
2005-2016, prior to her current, continuing role as Northern Star Resources Ltd’s Chief Legal Officer and Company Secretary.
Ms Macdonald has been instrumental in many project and company acquisitions, divestments and capital raisings. Hilary also
brings extensive ASX listed company experience in leadership, safety culture, risk and governance, executive remuneration,
people & culture, sustainability and stakeholder relationships. Ms Macdonald has not held any former public company
directorships in the last three years.
Tony Walsh, BComm, MBA, FCIS, FCA was appointed Company Secretary effective on 12 December 2016. Mr Walsh has over
35 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 Great Western Exploration Limited and
was Company Secretary of Battery Minerals Mining Ltd and a Director of XCD Energy Limited until his resignation in November
2022 and July 2021 respectively. 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 chair of the Board of the Women’s and Infants Research Foundation.
Legend Mining Limited | Annual Report 2022
23
Directors’ Report
Directors’ Report
For the year ended 31 December 2022
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 2
3.
EARNINGS PER SHARE
Basic loss per share:
Diluted loss per share:
4.
DIVIDENDS
0.0526cents
0.0526cents
No dividend has been paid or recommended during the financial year.
5.
CORPORATE INFORMATION
Corporate Structure
Legend Mining Limited is a Company limited by shares that is incorporated and domiciled in Australia. Legend Mining Limited
has prepared a consolidated financial report incorporating the entities that it controlled during the financial year. During the
year, Legend Mining Limited had one wholly owned subsidiary, Legend Cameroon Pty Ltd. In July 2022, Legend Cameroon Pty
Ltd was deregistered and thus as at the date of this report, Legend Mining do not have a subsidiary.
Nature of Operations and Principal Activities
The principal activities during the year of the entities within the consolidated entity were:
•
exploration for nickel and copper deposits in Australia.
Employees
The consolidated entity had a staff of nine employees at 31 December 2022 (2021: fourteen employees).
6. OPERATING AND FINANCIAL REVIEW
Results of Operations
The net loss after income tax of the consolidated entity for the year was $1,491,051 (2021: loss of $66,179).
Review of Operations
The Directors’ Review of Activities for the year ended 31 December 2022 is contained on pages 3 to 22 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 $5,246,355 (2021: $12,633,443).
7.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes during the year.
8.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The consolidated entity’s operations are subject to various environmental regulations under both Commonwealth and State
legislation in Australia. The Directors have complied with these regulations and are not aware of any breaches of the legislation
during the financial year which are material in nature.
9.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Likely developments in the operations of the consolidated entity and expected results of those operations in subsequent
financial years have been discussed, where appropriate, in the Chairman’s Report and Review of Activities.
10. SHARE OPTIONS
Unissued shares
As at the date of this report, there were 8,250,000 unissued ordinary shares under options. Refer to note 17 for further details
of the options outstanding on 31 December 2022.
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 Nil shares issued as a result of the exercise of options during the financial year. See note 17 for full details.
24
Legend Mining Limited | Annual Report 2022
Directors’ Report
Directors’ Report
For the year ended 31 December 2022
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 2
11. SIGNIFICANT EVENTS AFTER THE BALANCE DATE
On 13 January 2023, 750,000 ESOP options lapsed on their own terms because the conditions have not been, or have become
incapable of being, satisfied.
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
H Macdonald
Chairman (non-executive)
Managing Director
Executive Director
Director (non-executive appointed 6 September 2022)
Compensation Philosophy
The performance of the Company depends upon the quality of its directors and executives. To prosper, the Company must
attract, motivate and retain highly skilled directors and executives.
The Company embodies the following principle in its compensation framework:
•
Provide competitive rewards to attract high-calibre executives.
Group Performance
•
The Group’s financial performance for the last five years has been as follows:
Revenue
Net loss after tax
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Net assets
Share price (at balance date)
December
2022
$218,247
($1,491,051)
(0.0526)
(0.0526)
$52,156,821
$0.040
December
2021
$132,577
($66,179)
(0.0023)
(0.0023)
$53,521,982
$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
(267,602$1,)
(0.062)
(0.062)
$13,082,152
$0.03
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.
Legend Mining Limited | Annual Report 2022
25
Directors’ Report
Directors’ Report
For the year ended 31 December 2022
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 2
14.
REMUNERATION REPORT (CONTD)
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:
•
•
•
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 2022 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 2022 year.
Structure
Executive Directors are given the opportunity to receive their fixed (primary) compensation in a variety of forms including cash
and fringe benefits. It is intended that the manner of payment chosen will be optimal for the recipient without creating undue
cost for the Company.
Employment Contracts
Mr Mark Wilson, is employed under contract. The current contract commenced on 1 July 2011 and is effective until terminated
in accordance with the contract. The significant terms of the contract are:
• Mr Wilson receives remuneration of $360,000 per annum exclusive of superannuation;
• Mr Wilson may resign from his position and thus terminate his contract by giving one month written notice;
•
•
The company may terminate Mr Wilson’s employment contract by providing six months’ written notice if the position has
become redundant, or three months’ written notice in all other circumstances; and
The Company may terminate Mr Wilson’s contract at any time without notice if serious misconduct has occurred.
26
Legend Mining Limited | Annual Report 2022
Directors’ Report
Directors’ Report
For the year ended 31 December 2022
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 2
14.
REMUNERATION REPORT (CONTD)
Mr Michael Atkins, is employed under contract. The current contract commenced on 1 July 2012 and is effective until
terminated in accordance with the contract. The significant terms of the contract are:
• Mr Atkins receives remuneration of $90,000 per annum exclusive of superannuation;
• Mr Atkins’ agreement provides for engagement of consultancy services outside of the scope of the ordinary duties of a
non-executive chairman. In addition to the director’s fees above, Mr Atkins is paid $2,000 per day (inclusive of
superannuation) for the provision of these consultancy services.
• Mr Atkins’ appointment is contingent upon satisfactory performance and successful re-election by shareholders of the
Company;
• Mr Atkins may resign from his position and thus terminate his engagement by giving written notification of his resignation
as a director; and
•
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 2021), is employed under contract. The current contract
commenced on 10 August 2021 and is effective until terminated in accordance with the contract. The significant terms of the
contract are:
• Mr Kiddie receives remuneration of $300,000 per annum exclusive of superannuation;
• Mr Kiddie may resign from his position and thus terminate his contract by giving three months’ written notice;
•
•
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.
Ms Hilary Macdonald is employed under contract. The current contract commenced on 6 September 2022 and is effective
until terminated in accordance with the contract. The significant terms of the contract are:
• Ms Macdonald receives remuneration of $50,000 per annum exclusive of superannuation;
• Ms Macdonald’s appointment is contingent upon satisfactory performance and successful election and then subsequent
re-election by shareholders of the Company;
• Ms Macdonald may resign from her position and thus terminate her engagement by giving written notification of her
resignation as a director; and
•
The Company may terminate Ms Macdonald’s engagement by way of resolution of the Company’s shareholders.
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.
At the 2023 Annual General Meeting (AGM) scheduled for 5 May 2023, the Company intends to seek shareholder approval for
the renewal of the Employee Share Option Plan.
Award of share options under the ESOP is linked directly to achievement of strategic Company objectives such as share price
growth.
Share-based Payments
During the year the Company granted Nil incentive options as part of their remuneration. On 26 March 2021, 1.25 million zero
exercise price options expiring on 10 August 2025 issued under the Company’s Employee Incentive Plan Rules approved at the
2021 AGM (ESOP) to staff as follows:
•
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.
Legend Mining Limited | Annual Report 2022
27
Directors’ Report
Directors’ Report
For the year ended 31 December 2022
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 2
14.
REMUNERATION REPORT (CONTD)
Compensation of Key Management Personnel for Years Ended 31 December 2022 and 31 December 2021
Name
Year
Short term
Salary and
Fees(1)
Post-
Employment
Super-
annuation
$
$
Long-term
benefits
Long
Service
Leave
$
Share
based
payments
options
Total
Compen-
sation
granted as
options
Performance
related
remuneration
$
$
%
%
Director
M Atkins
M Wilson
O Kiddie
H Macdonald
Total
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
90,000
90,000
349,919
374,769
308,923
313,846
16,536
-
765,378
778,615
9,225
8,775
27,581
26,250
28,932
29,250
1,253
-
66,991
64,275
-
-
6,000
6,500
-
-
-
-
6,000
6,500
-
-
-
-
9,145
435,418
-
-
9,145
99,225
98,775
383,501
407,519
346,999
778,514
17,789
-
847,514
435,418 1,284,808
-
-
-
-
3
56
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1) Short term salary and fees includes net movements in annual leave provisions.
Option holdings of Key Management Personnel
Movement of options held in Legend Mining Limited during the year ended 31 December 2022
Name
Balance at
beginning
of year
1 Jan 2022
Granted as
Remuneration
Exercised
during
the year
Net Change
Other
Balance at
end
of year
31 Dec 2022
Not Vested
& Not
Exercisable
Vested &
Exercisable
Directors
M Atkins
M Wilson
O Kiddie
H Macdonald
Total
-
-
7,000,000
-
7,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,000,000
-
-
-
4,000,000
-
-
-
3,000,000
-
7,000,000
4,000,000
3,000,000
Shareholdings of Key Management Personnel(1)
Movement of shares held in Legend Mining Limited during the year ended 31 December 2022
Name
Balance
1 Jan 22
Granted as
remuneration
On exercise
of options
Net change
other(2)
Balance
31 Dec 2022
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)
H Macdonald
Total
17,108,334
174,748,200
3,000,000
-
194,856,534
-
-
-
-
-
-
-
-
-
-
-
17,108,334
2,490,535
177,238,735
-
408,163
3,000,000
408,163
2,898,698
197,755,232
Includes shares held directly, indirectly and beneficially by KMP.
(1)
(2) Mark Wilson: On-market purchases and sales made during the year. Hilary Macdonald: Shares held when appointed on 6 September 2022.
END OF REMUNERATION REPORT
28
Legend Mining Limited | Annual Report 2022
Directors’ Report
Directors’ Report
For the year ended 31 December 2022
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 2
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
Hilary Macdonald
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
9
9
9
3
9
9
9
3
2
2
2
0
2
2
2
0
The relevant interest of each director in the shares and options issued by the company in accordance with the Corporations
Act 2001, at the date of signing this report is as follows:
Name
M Atkins
(Windamurah P/L), (MW Atkins)
M Wilson
(Chester Nominees WA P/L)
(Hostyle Pty Ltd) (SMT Investments WA P/L)
O Kiddie
(held by spouse LSJ Windsor)
H Macdonald
Ordinary shares
17,108,334
174,748,200
3,000,000
408,163
Options over
ordinary shares
-
-
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 2022 financial year.
We have received the Declaration of Auditor Independence from Ernst & Young, the Company’s Auditor. This is available for
review on page 56 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 16th day of March 2023
Legend Mining Limited | Annual Report 2022
29
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 2
Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2022
Finance revenue
Income on recovery of receivable
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
2022
$
218,247
500,000
13,074
(285,134)
(2,261)
(80,812)
(1,116,343)
(225,890)
(979,119)
(511,932)
2021
$
132,577
1,500,000
26,696
(232,132)
(3,921)
(67,762)
(944,799)
(546,638)
(135,979)
69,800
(1,491,051)
(66,179)
-
-
(1,491,051)
(66,179)
EARNINGS PER SHARE (cents per share)
Basic loss per share
Diluted loss per share
5
5
(0.0526)
(0.0526)
(0.0023)
(0.0023)
The accompanying notes form part of these financial statements
30
Legend Mining Limited | Annual Report 2022
A s a t 3 1 D e c e m b e r 2 0 2 2
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 31 December 2022
Note
2022
$
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
8
9
10
10
11
12
13
14
14
6
15
16
12,710,577
160,773
100,000
12,971,350
5,775
572,204
62,822
40,175,915
40,816,716
53,788,066
710,692
173,671
43,821
928,184
153,302
19,918
529,841
703,061
1,631,245
52,156,821
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
101,451,503
24,624,327
(73,919,009)
52,156,821
101,451,503
24,398,437
(72,427,958)
53,521,982
The accompanying notes form part of these financial statements
Legend Mining Limited | Annual Report 2022
31
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 2
For the year ended 31 December 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Proceeds from Jindal Receivable
Interest received
Other income
Payment for financial assets
Note
2022
$
2021
$
(1,147,110)
(1,430,327)
500,000
165,377
13,074
(3,121)
1,500,000
131,418
26,696
(5,213)
222,574
Net cash flows from/(used) in operating activities
20(ii)
(471,780)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase 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
(4,652)
(441,454)
(7,912,201)
(13,112,984)
2,935,147
3,379,840
(4,981,706)
(10,174,598)
-
-
(94,404)
(94,404)
3,140,000
(29,543)
(91,112)
3,019,345
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at end of year
20(i)
(5,547,890)
18,258,467
12,710,577
(6,932,679)
25,191,146
18,258,467
The accompanying notes form part of these financial statement
32
Legend Mining Limited | Annual Report 2022
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
For the year ended 31 December 2022
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 2
At 1 January 2022
Loss for the year
Total comprehensive loss for the year
Issued capital (note 15)
Capital raising cost (note 15)
Employee and director options (note 16)
Contributed
Equity
$
Share Option
Premium
Reserve
$
Accumulated
Losses
Total Equity
$
$
101,451,503
24,398,437
(72,427,958)
53,421,982
-
-
-
-
-
-
-
-
-
225,890
(1,491,051)
(1,491,051)
(1,491,051)
(1,491,051)
-
-
-
-
-
225,890
At 31 December 2022
101,451,503
24,624,327
(73,919,009)
52,156,821
At 1 January 2021
Loss for the year
Total comprehensive loss for the year
Issued capital
Capital raising cost
Employee and director options
At 31 December 2021
98,373,061
23,851,799
(72,361,779)
49,863,081
-
-
3,140,000
(61,558)
-
-
-
-
-
546,638
(66,179)
(66,179)
(66,179)
(66,179)
-
-
-
3,140,000
(61,558)
546,638
101,451,503
24,398,437
(72,427,958)
53,421,982
The accompanying notes form part of these financial statements
Legend Mining Limited | Annual Report 2022
33
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 2
NOTE 1:
CORPORATE INFORMATION
The consolidated financial statements of Legend Mining Limited and its subsidiaries (collectively, the Group) for the year ended
31 December 2022 were authorised for issue in accordance with a resolution of the Directors on 16 March 2023.
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 address of the registered office is Level 1, 8 Kings Park
Road, West Perth WA 6005.
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 2022 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 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.
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 2022. Control is achieved when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the
Group controls an investee if and only if the Group has:
•
•
•
Power over the investee (ie existing rights that give it the current ability to direct the relevant activities of the investee);
Exposure, or rights, to variable returns from its involvement with the investee; and
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an investee, including:
•
The contractual arrangement with the other vote holders of the investee;
• Rights arising from other contractual arrangements; and
•
The Group’s voting rights and potential voting rights.
34
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the statement of comprehensive income from the date the Group gains
control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of
the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line
with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the
Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest
and other components of equity while any resultant gain or loss is recognised in profit or loss. Any investment retained is
recognised at fair value.
(ii)
Significant accounting judgements, estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future
events. The key estimate and assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of certain assets and liabilities within the next annual reporting period are:
Share-based payment transactions
The Group measures the cost of equity-settled share-based payments at fair value at the grant date using a Black-Scholes
formula taking into account the terms and conditions upon which the instruments were granted.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including
whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration
and evaluation asset through sale.
Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources,
future technological changes which could impact the cost of mining, future legal changes (including changes to environmental
restoration obligations) and changes to commodity prices.
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.
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 ready for
use.
The depreciation rates used for each class are:
Buildings
10%
Plant and equipment
7.5% - 50%
Legend Mining Limited | Annual Report 2022
35
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
Impairment
The carrying values of property, plant and equipment are reviewed for impairment as required, with recoverable amount being
estimated when events or changes in circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit to which the asset belongs.
If any indication of impairment exists and where the carrying values exceed the estimated recoverable amount, the assets or
cash-generating units are written down to their recoverable amounts.
The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset.
Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the item) is included in the income statement in the period the
item is derecognised.
(iv)
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits with
a maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined
above.
(v)
Financial Assets
Financial assets at amortised cost (debt instruments)
Trade receivables are initially recognised at their transaction price and other receivables at fair value. Receivables that are held
to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest
are classified and subsequently measured at amortised cost. Receivables that do not meet the criteria for amortised cost are
measured at fair value through profit or loss.
The group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at
amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since
initial recognition of the respective financial instrument. The Group always recognises the lifetime expected credit loss for trade
receivables carried at amortised cost. The expected credit losses on these financial assets are estimated based on the Group’s
historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as forecast conditions at the reporting date.
For all other receivables measured at amortised cost, the Group recognises lifetime expected credit losses when there has been
a significant increase in credit risk since initial recognition. If the credit risk on the financial instrument has not increased
significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to
expected credit losses within the next 12 months.
The Group considers an event of default has occurred when a financial asset is more than 90 days past due or external sources
indicate that the debtor is unlikely to pay its creditors, including the Group. A financial asset is credit impaired when there is
evidence that the counterparty is in significant financial difficulty or a breach of contract, such as a default or past due event has
occurred. The Group writes off a financial asset when there is information indicating the counterparty is in severe financial
difficulty and there is no realistic prospect of recovery.
36
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
Financial assets at fair value through profit or loss (equity investments)
Financial assets at fair value through profit or loss include financial assets held for trading, e.g., financial assets designated upon
initial recognition at fair value through profit or loss, e.g., debt or equity instruments, or financial assets mandatorily required to
be measured at fair value, i.e., where they fail the SPPI test. Financial assets are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near term. Financial assets with cash flows that do not pass the SPPI test are
required to be classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding
the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt
instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly
reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes
in fair value recognised in profit or loss.
(vi) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis
over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset,
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 farm-inee 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 farm-
inee is credited against costs previously capitalised in relation to the whole interest with any excess accounted for by the Group
as a gain on disposal.
For carried interests Legend recognises the expenditure when they are providing the carry to the other parties. Where the Group
are being carried Legend does not recognise any expenditure paid for on their behalf.
Impairment
The carrying values of exploration and evaluation costs are reviewed for impairment when facts and circumstances indicate the
carrying value may not be recoverable.
The recoverable amount of exploration and evaluation costs is the greater of fair value less costs to sell and value in use. In
assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the fair value of money and the risks specific to the asset.
Accumulated costs in relation to an abandoned area are written off in full against the income statement in the year in which the
decision to abandon the area is made. A regular review is undertaken of each area of interest to determine the appropriateness
of continuing to carry forward costs in relation to that area of interest. Each area of interest is limited to the size related to
known or probable mineral resources capable of supporting a mining operation.
Legend Mining Limited | Annual Report 2022
37
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
(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:
•
•
Except where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; and
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, except where the timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry-forward of unused tax assets and unused tax losses can be utilised:
•
•
Except where the deferred income tax asset relating to the deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognised to the extent that it is probable that the temporary differences will reverse
in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amounts of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilised.
Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become
probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date.
38
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
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:
• Where the amount of the GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the
GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
• Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statement of
Financial Position. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis. The GST components of cash flows arising
from investing or financing activities which are recoverable from, or payable to, the ATO are classed as operating cash flows.
(xi)
Trade and or other payables
Liabilities for trade creditors and other amounts are carried at amortised cost and represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make
future payments in respect of these goods and services. The amounts are unsecured and are usually paid within 30 days.
(xii)
Share based payment transactions
The Group provides benefits to employees (including directors) of the Group and to the providers of services to the Group in the
form of share based payment transactions, whereby employees or service providers render services in exchange for shares or
rights over shares (‘equity-settled transactions’).
There are currently three scenarios in place to provide these services:
(a) ‘Employees Share Option Plan’, which provides benefits to eligible persons;
(b) Capital raising costs, which provide payment to stockbrokers and finance institutions for capital raising services and
commissions; and
(c) Other grants of options to directors on an ad hoc basis.
The cost of the equity-settled transactions with stockbrokers and finance institutions is measured by reference to the fair value
of the service received at the date they are granted.
For transactions with employees (including directors), the cost of these equity-settled transactions is measured by reference to
the fair value of the options provided. The fair value is determined by an external valuer using a Black-Scholes 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.
Legend Mining Limited | Annual Report 2022
39
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a
market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based
payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. However , if a new award is substituted for the cancelled award and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
For transactions with other service providers, the cost of these equity-settled transactions is measured by reference to the value
of the services provided. The cost of these equity-settled transactions is recognised, together with a corresponding increase in
equity, at the time the services are provided unless they are transaction costs arising on the issue of ordinary shares, in which
case the transaction costs are recognised directly in equity as a reduction of the proceeds received on the issue of shares.
(xiii)
Contributed Equity
Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs
net of tax arising on the issue of ordinary shares are recognised directly in equity as a reduction of the proceeds received.
(xiv) Employee Benefits
Provision is made for employee benefits accumulated as a result of employee services up to the reporting date. These employee
benefits include wages, salaries, annual leave and include related on-costs such as superannuation and payroll tax.
The Group does not expect its long service leave or annual leave benefits to be settled wholly within 12 months of each reporting
date. The Group recognises a liability for long service leave and annual leave measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of
service.
Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms
to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
No provision is made for non-vesting sick leave, as the anticipated pattern of future sick leave taken indicates that accumulated
non-vesting sick leave will never be paid.
Contributions to employee superannuation funds of choice are expensed as incurred.
(xv)
Earnings per share
Basic earnings per share (EPS) is calculated as net profit or loss attributable to members, adjusted to exclude costs of servicing
equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as net profit or loss attributable to members, adjusted for:
(a) Costs of servicing equity (other than dividends).
(b) The after tax effect of dividends and interest associated with the dilutive potential ordinary shares that have been
recognised as expenses; and
(c) Other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential
ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element.
40
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (CONTD)
(xvi) Foreign currency translation
(a) Functional and presentation currency
The Group’s consolidated financial statements are presented in Australian dollars, which is also the Company’s functional
currency. For each entity, the Group determines the functional currency and items included in the financial statements of each
entity are measured using that functional currency.
(b) Transactions and balances
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates
at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rates of
exchange at the reporting date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchanges rates
at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items
measured at fair value is treated in line with the recognition of gain or loss on change in fair value of the item (ie translation
differences on items whose fair value gain or loss is recognised in other comprehensive income or profit or loss are also
recognised in other comprehensive income or profit or loss respectively).
(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 commencement
date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed
lease payments or a change in the assessment to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption (i.e., those leases that have a lease term of 12 months or less
from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition
exemption to leases that are considered of low value (i.e., below $5,000). Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight-line basis over the lease term.
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.
Legend Mining Limited | Annual Report 2022
41
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 4:
REVENUE AND EXPENSES
Note
a)
Finance Revenue
Bank interest received and receivable
Other finance income
b) Other
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
2022
$
218,247
-
218,247
13,074
13,074
285,134
285,134
8,280
2,261
71,006
1,525
83,072
505,811
97,185
23,218
106,380
7,687
-
25,509
350,553
1,116,343
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
NOTE 5:
EARNINGS PER SHARE
(a) Reconciliation of earnings to net loss:
Net Loss
Loss used in the calculation of basic earnings per share
2022
$
(1,491,051)
(1,491,051)
2021
$
(66,179)
(66,179)
(b) Weighted average number of shares on issue during the financial year
used in the calculation of basic loss per share
2,836,658,180
2,836,658,180
Weighted average number of ordinary shares on issue used in the
calculation of diluted loss per share
2,836,658,180
2,836,658,180
(c) Information on classification of options
For the year ended 31 December 2022, 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
2022 is Nil (31 December 2021: 155,211,111)
42
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
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
Utilisation of previously unbooked tax losses
Deductible equity raising costs under s40-880
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)
2022
$
2021
$
-
-
511,932
-
511,932
(979,119)
(979,119)
(293,736)
1,007,643
(150,000)
(51,975)
-
-
(69,800)
-
(69,800)
(135,979)
(135,979)
(40,794)
473,363
(450,000)
(52,369)
(511,932)
(69,800)
-
-
-
(48,431)
(48,431)
-
Legend Mining Limited | Annual Report 2022
43
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
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
2022
$
30%
2021
$
30%
(10,842,412)
(171,386)
(19,607)
(11,033,405)
10,503,564
(529,841)
10,316,576
106,492
79,742
754
10,503,564
(10,503,564)
-
(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
(9,346,164)
-
217,800
-
2,242,325
2,460,125
367,800
-
2,242,325
2,610,125
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 (or
distributions) made during the year ended 31 December 2022.
During the year, Legend Mining Limited had one wholly owned subsidiary, Legend Cameroon Pty Ltd. In July 2022, Legend
Cameroon Pty Ltd was deregistered and thus there is no tax consolidated group as at the date of this report.
2022 Tax Return
On 6 December 2022, the Company lodged its tax return for the tax year ended 30 June 2022 and claimed a refundable Research
and Development (R&D) tax offset of $2,935,146.77. On 24 December 2022, the Company received this refund.
44
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
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
2022
$
410,577
12,300,000
12,710,577
2021
$
1,258,467
17,000,000
18,258,467
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 (a)
Receivable from Jindal Mining & Exploration Limited (b)
Provision for Jindal receivable
2022
$
160,773
-
-
160,773
2021
$
33,907
500,000
(500,000)
33,907
Terms and conditions relating to the above financial instruments:
(a) Other receivables are non-interest bearing and have repayment terms of between 30 and 60 days.
(b) 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 6 May 2019, Legend and Jindal agreed to a payment schedule for the final amount of $3 million owing to Legend
from the sale of the Cameroon Iron Ore project. Four payments of $250,000 plus interest were received between
October 2019 and December 2020. On 23 April 2021, Legend received a further payment of $518,005 from Jindal
representing January 2021 and March 2021 principal and interest of $18,005. As at 30 June 2021 the loan amount
outstanding was $1,500,000. On 7 September 2021, Legend received $1,000,000 in principal and $12,500 in interest
from Jindal. At 7 September 2021, the loan outstanding was $500,000 and the provision was adjusted to $500,000.
On 30 March 2022, Legend received the final payment of $500,000 from Jindal representing the remaining outstanding
receivable.
NOTE 10: OTHER FINANCIAL ASSETS
Current
Security bond – at amortised cost (a)
Non-current
Rental property bond (b)
Details of the above financial instruments:
2022
$
100,000
100,000
5,775
2021
$
100,000
100,000
5,775
(a) Security bond – bank deposit held as security for credit cards. At 31 December 2022, this deposit is held on a 12 month
term deposit with an interest rate of 4% per annum (31 December 2021, at 0.3%pa).
(b) Rental Property Bond – this bond relates to a rental property in Boulder WA. No interest is received on this bond.
Legend Mining Limited | Annual Report 2022
45
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
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
2022
$
2021
$
1,225,046
(652,841)
572,204
762,719
4,652
-
(8,281)
(186,886)
1,220,394
(457,675)
762,719
536,121
464,829
(2,573)
(7,839)
(227,819)
572,204
762,719
NOTE 12: DEFERRED EXPLORATION COSTS
Deferred exploration costs
(a) 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)
2022
$
40,175,911
2021
$
34,929,556
34,929,556
(2,935,147)
8,181,502
40,175,911
22,296,113
(781,446)
13,414,889
34,929,556
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
2022
$
710,692
710,692
2021
$
327,465
327,465
Terms and conditions relating to the above financial instruments
(i)
Trade payables are non-interest bearing and normally settled on 30 day terms.
(ii) There are no trade payables past due for payment.
46
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 14: EMPLOYEE BENEFITS PROVISIONS
Current
Employee benefits
Non-Current
Employee benefits
Number of employees at year end
NOTE 15: CONTRIBUTED EQUITY
Ordinary shares
Issued and fully paid
$3,140,000 raised by exercising of options in March 2021
•
76,900,000 ESOP options
Capital raising costs (net of tax)
Movement in ordinary shares on issue 2022
At 1 January 2022
Capital raising costs
At 31 December 2022
Movement in ordinary shares on issue 2021
At 1 January 2021
76,900,000 exercising of options
Capital raising costs
At 31 December 2021
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
NOTE 16: RESERVES
Movement in reserves
At 1 January 2022
Options issued to employees (refer note 18)
At 31 December 2022
At 1 January 2021
Options issued to employees(refer note 18)
At 31 December 2021
Share option premium reserve
2021
$
179,410
141,635
9
2021
$
98,373,061
3,140,000
(61,558)
101,451,503
$
101,451,503
-
101,451,503
$
98,373,061
3,140,000
(61,558)
101,451,503
2022
$
173,671
153,302
11
2022
$
101,451,503
-
-
101,451,503
#
2,755,135,721
-
2,755,135,721
#
2,678,235,721
76,900,000
-
2,755,135,721
Share option
premium
reserve
$
24,398,437
225,890
24,624,327
23,851,799
546,638
24,398,437
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.
Legend Mining Limited | Annual Report 2022
47
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 17: SHARE OPTIONS
2022
Unlisted options – Expiry date 11 July 2022
At 1 January 2022
Expired
At 31 December 2022
Unlisted options – Expiry date 30 September 2022
At 1 January 2022
Exercised
Expired
At 31 December 2022
Unlisted zero exercise price options – Expiry date 10 August
2025 subject to vesting criteria (see Note 18)
At 1 January 2022
Exercised
Vested
At 31 December 2022
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 2021
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
Number
#
Exercise price
cents per share
7.2 cents
7.2 cents
Zero cents
4 cents
7.2 cents
7.2 cents
Zero cents
102,217,540
(102,217,540)
-
44,743,571
-
(44,743,571)
-
8,250,000
-
-
8,250,000
74,900,000
(74,900,000)
-
102,217,540
102,217,540
46,743,571
(2,000,000)
44,743,571
7,000,000
1,250,000
-
-
8,250,000
48
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 18: SHARE BASED PAYMENT PLANS
(a) Recognised share-based payment expenses
During the 2022 year there were Nil ESOP options issued (2021: 1,250,000).
On 26 March 2021, 1.25 million zero exercise price options expiring on 10 August 2025 issued under the Company’s Employee
Incentive Plan Rules approved at the 2021 AGM (ESOP) to staff as follows:
•
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
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 2021 Notice of AGM. At the 2023 Annual General Meeting (AGM) scheduled for
5 May 2023, the Company intends to seek shareholder approval for the renewal of the Employee Share Option Plan.
(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
2022
No.
19,100,000
-
-
(10,850,000)
8,250,000
3,000,000
5,250,000
2022
WAEP
$
0.041
-
0.042
-
-
-
-
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
-
Legend Mining Limited | Annual Report 2022
49
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 18: SHARE BASED PAYMENT PLAN (CONTD)
Other Options: The following table illustrates the number Nil and weighted average exercise prices (WAEP) of, and movements
in, share options issued during the year:
2022
No.
2022
WAEP
$
2021
No.
2021
WAEP
$
Outstanding balance at the beginning of the year
136,111,111
0.072
136,111,111
0.072
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
-
-
(136,111,111)
-
-
-
-
-
-
-
-
-
-
-
-
-
136,111,111
136,111,111
0.072
0.072
The following ESOP options Expired as at 13 January 2023
750,000 ESOP options lapsed on their own terms because the conditions have not been, or have become incapable of being
satisfied.
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
2022
$
765,378
6,000
66,991
187,110
1,025,479
2021
$
778,615
6,500
64,275
435,418
1,284,808
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:
Note
8
2022
$
500
410,077
12,300,000
12,710,577
2021
$
500
1,257,967
17,000,000
18,258,467
Cash on hand
Cash at bank
Deposits at call
50
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 20: CASH FLOW INFORMATION (CONTD)
(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
2022
$
2021
$
(1,491,051)
-
8,281
71,006
(860)
225,890
-
1,525
5,928
511,932
(667,349)
(137,668)
333,237
(471,780)
(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
Other than listed above there were no other non-cash financing or investing activities during the 2022 or 2021 years.
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 (2021: $2,373,000) 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 2022 and 31 December 2021. 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
2022
%
-
2021
%
100
2022
%
-
2021
%
-
During the year, Legend Mining Limited had one wholly owned subsidiary, Legend Cameroon Pty Ltd. In July 2022, Legend
Cameroon Pty Ltd was deregistered and thus as at the date of this report, Legend Mining Limited does not have a subsidiary.
Legend Mining Limited | Annual Report 2022
51
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 23: FINANCIAL INSTRUMENTS DISCLOSURE
The Group’s principal financial instruments comprise cash and short-term deposits, receivables and investments held for trading.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has various other financial
assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The main risks arise
from the Group’s financial instruments are interest rate risks, liquidity risk, credit risk and equity price risk. The Board reviews
and agrees policies for managing each of these risks and they are summarised below.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial
liability and equity instrument are disclosed in note 2 to the financial statements.
Fair value interest risk
The Group’s exposure to fair value interest risk is minimal.
Commodity price risk
The Group’s exposure to price risk is minimal as the group is still in an exploration phase and has no revenues from mining.
Credit risk
The Group trades only with recognised, creditworthy third parties.
The only significant concentration of credit risk within the Group is the loan receivable from Jindal. Exposure to credit risk is
managed through regular analysis of Jindal’s ability and willingness to meet payment obligations. The carrying amount of
financial assets represents the maximum credit exposure. The Group has provided for 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.
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:
2022
Financial assets:
Cash and cash equivalents
Other financial assets
2021
Financial assets:
Cash and cash equivalents
Other financial assets
Weighted
Average
Interest Rate
Floating
Interest
$
Fixed
Interest
$
Non-Interest
Bearing
$
1.41%
0.61%
410,077
-
410,077
12,300,000
105,775
12,405,775
1,257,967
-
1,257,967
17,000,000
105,775
17,105,775
500
-
500
500
-
500
Total
$
12,710,577
105,775
12,816,352
18,258,467
105,775
18,364,242
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 $249,301 (2021: $174,912). This
is based on the interest bearing financial assets as detailed above.
52
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
NOTE 23: FINANCIAL INSTRUMENTS DISCLOSURE (CONTD)
(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
2022
$
12,710,577
160,773
105,775
12,977,125
2021
$
18,258,467
33,907
105,775
18,398,149
Except for the amount receivable from Jindal, all other trade and other receivables are current, apart from the rental bond
$5,775 (2021: $5,775) and have not been impaired.
(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 2022
Non-derivative financial liabilities
Trade and other payables
Lease liability
31 December 2021
Non-derivative financial liabilities
Trade and other payables
Lease liability
Carrying
Amount
$
Contractual
cash flows
$
Six months
or less
$
Greater than
six months
$
710,692
63,740
774,432
710,692
63,740
774,432
710,692
43,821
754,513
Carrying Amount
$
327,465
106,634
434,099
Contractual
cash flows
$
327,465
106,634
434,099
-
19,918
19,918
Six
months
or less
$
327,465
42,612
370,077
(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 2022
Carrying
Amount
$
Fair
Value
$
12,710,577
105,775
160,773
(710,692)
12,266,433
12,710,577
105,775
160,773
(710,692)
12,266,433
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
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.
Legend Mining Limited | Annual Report 2022
53
Notes to the Financial StatementsFor the year ended 31 December 2022
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 2
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
Loss of the parent entity after tax
Total comprehensive loss of the parent entity
2022
$
12,971,350
53,788,066
928,184
1,631,245
52,156,821
101,451,503
(73,919,009)
24,624,327
52,156,821
(1,491,051)
(1,491,051)
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
(66,179)
(66,179)
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
2022
$
2021
$
38,693
38,693
37,270
37,270
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
On the 13 January 2023, 750,000 ESOP Option lapsed on their own terms because the conditions have not been, or have become
incapable of being, satisfied.
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.
54
Legend Mining Limited | Annual Report 2022
Notes to the Financial StatementsFor the year ended 31 December 2022
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 30-54, and the remuneration disclosures that are
contained in the Remuneration Report in the Directors Report pages 23-29, of the consolidated
entity, are in accordance with the Corporations Act 2001, including;
i Giving a true and fair view of the consolidated entity’s financial position as at 31
December 2022 and of its performance for the year ended on that date; and
ii Complying with Australian Accounting Standards’ and the Corporations Regulations 2001;
and
iii The financial statements and notes also comply with International Financial Reporting
Standards as disclosed in note 2; and
(b) there are reasonable grounds to believe that the company will be able to pay its debts as and
when they become due and payable.
This declaration has been made after receiving the declarations required to be made to the
directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended
31 December 2022.
On behalf of the Board.
Mark Wilson
Managing Director
Dated this 16th day of March 2023
Legend Mining Limited | Annual Report 2022
55
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 2022, 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
Jared Jaworski
Partner
Perth
16 March 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
56
Legend Mining Limited | Annual Report 2022
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 2022, 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
2022 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 the matter below, our description of how our audit addressed
the matter is provided in that context.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Legend Mining Limited | Annual Report 2022
57
Independent Auditor’s Report
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to this matter. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matter below, provide the basis for our audit opinion on the
accompanying financial report.
Accounting for and carrying value assessment of deferred exploration costs
Why significant
How our audit addressed the key audit matter
As disclosed in Note 12 of the financial report at 31
December 2022 the Group recognised a deferred
exploration and evaluation expenditure asset of
$40.2 million relating to its exploration tenements.
We evaluated the Group’s assessment of the carrying
amount of deferred exploration and evaluation asset.
Our audit procedures included:
►
►
►
►
Considering 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.
Considering 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, inquiries with senior management and
Directors as to the intentions and strategy of the
Group.
Assessing whether any exploration and
evaluation data existed to indicate that the
carrying amount of capitalised exploration and
evaluation assets is unlikely to be recovered
through development or sale.
Assessing 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.
► Assessing the adequacy of the disclosure
included in the financial report.
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. As detailed in
Note 12, R&D tax incentives of $2.9 million were
recognised and received during the year ended 31
December 2022.
Australian Accounting Standards require the
carrying amount of deferred 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
activities in the near future, and, whether there is
sufficient information available to conclude that the
area of interest is not commercially viable. The
Group’s significant accounting judgements are
detailed in Note 2 to the financial report.
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 2022, this was considered a key audit
matter.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
58
Legend Mining Limited | Annual Report 2022
Independent Auditor’s Report
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 Annual Report for the year ended 31 December 2022, but does
not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
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.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Legend Mining Limited | Annual Report 2022
59
Independent Auditor’s 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
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.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
60
Legend Mining Limited | Annual Report 2022
Independent Auditor’s Report
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 25 to 28 of the directors’ report for the
year ended 31 December 2022.
In our opinion, the Remuneration Report of Legend Mining Limited for the year ended 31 December
2022, 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
Jared Jaworski
Partner
Perth
16 March 2023
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Legend Mining Limited | Annual Report 2022
61
Shareholder Information
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 2
For the year ended 31 December 2022
SHAREHOLDER INFORMATION AT 8 MARCH 2023
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
28,958
2,162,593
8,514,308
139,093,846
2,605,336,016
2,755,135,721
Holders
142
548
1,041
3,343
1,598
6,672
Number of holdings less than a marketable parcel
11,929,423
1,843
Top 20 Shareholders
Rank Name
Units
% of Units
1
2
3
4
5
6
7
8
9
10
11
CREASY GROUP
IGO LIMITED
WILSON GROUP
BAILEY GROUP
NI 28 PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
THREE CHEEKY MONKEYS HOLDINGS PTY LTD
PHH PTY LIMITED
ATKINS GROUP
CITICORP NOMINEES PTY LIMITED
NINO CONSTRUCTIONS PTY LTD
12 WATERFIELD GROUP
MUSGRAVE MINERALS LIMITED
MICHAELMAS ISLAND PTY LTD
LISTOGA PTY LTD
ZERO NOMINEES PTY LTD
MR THOMAS BENJAMIN WILSON
MATTHEW & KIM LI HOWARD SUPERANNUATION PTY LTD
MS DANIELLE SHARON TUDEHOPE
MR RAYMOND MATTHEW SCIBERRAS
13
14
15
16
17
18
19
20
TOTAL
Substantial shareholders
Name
CREASY GROUP
IGO LIMITED
WILSON GROUP
BAILEY GROUP
Unlisted Option holders
Class of options
10 August 2025 zero exercise price subject to three relevant vesting
conditions
62
Legend Mining Limited | Annual Report 2022
823,153,914
356,578,323
177,248,200
153,749,674
28,000,000
19,634,314
19,404,000
17,800,000
17,108,334
14,702,339
13,161,547
12,867,925
12,500,000
11,216,945
10,000,000
10,000,000
9,400,000
9,000,000
9,000,000
8,900,000
29.88
12.94
6.43
5.58
1.02
0.71
0.7
0.65
0.62
0.53
0.48
0.47
0.45
0.41
0.36
0.36
0.34
0.33
0.33
0.32
1,733,425,515
62.91
Shares
823,153,914
356,578,323
177,248,200
153,749,674
% of Units
29.88
12.94
6.43
5.58
Options
7,500,000
Holders
2
Shareholder Information
Tenement Listing
For the year ended 31 December 2022
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 2
AUSTRALIA – FRASER RANGE – ROCKFORD PROJECT
Tenements held at 8 March 2023
Tenement
E28/1716
E28/1717
E28/1718
E28/1727
E28/2188
E28/2189
E28/2190
E28/2191
E28/2192
E28/2404
E28/2405
E28/2675
E28/2676
E28/2677
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Percentage Interest
70%
70%
70%
70%
70%
70%
10%
10%
70%
100%
100%
30%
30%
30%
Legend Mining Limited | Annual Report 2022
63
WWW.LEGENDMINING.COM.AU