More annual reports from Legacy Minerals Holdings Limited:
2023 ReportLegacy Minerals Holdings Limited
ABN 43 650 398 897
Annual Report for the year ended 30 June 2022 (comparative period commences 21 May 2021, incorporation date, to 30
June 2021)
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 1
Corporate Directory
Directors
Dr David Carland – Non-Executive Chairman
Christopher Byrne – CEO & Managing Director
Thomas Wall – Executive Director
Matthew Wall – Non-Executive Director
Douglas Menzies - Non-Executive Director
Company Secretary and Chief Financial
Officer
Ian Morgan
Business Office
Level 7, 1 Margaret Street
Sydney NSW 2000
Telephone
+61 02 8005 7107
Email
info@legacyminerals.com.au
Registered Office
401/54 Miller St
North Sydney NSW 2060
Website
www.legacyminerals.com.au
Securities Exchange
Australian Securities Exchange (ASX)
ASX Code: LGM
Securities Registry
Automic Pty Ltd
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone
(within Australia): 1 300 288 664
(outside Australia): +61 2 9698 5414
Auditor
BDO Audit Pty Ltd
11/1 Margaret St
Sydney NSW 2000
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 2
Table of Contents
Corporate Directory ........................................................................................................................................... 2
Table of Contents .............................................................................................................................................. 3
Chairman’s Letter .............................................................................................................................................. 4
Directors’ Report ............................................................................................................................................... 5
Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................................... 35
Consolidated Statement of Financial Position ................................................................................................ 36
Consolidated Statement of Changes in Equity ................................................................................................ 37
Consolidated Statement of Cash Flows ........................................................................................................... 38
Notes to the Financial Statements .................................................................................................................. 39
Directors’ Declaration ...................................................................................................................................... 62
Auditor’s Independence Declaration............................................................................................................... 63
Independent Auditor’s Report ........................................................................................................................ 64
Additional Shareholder Information ............................................................................................................... 68
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 3
Chairman’s Letter
Dear Fellow Shareholder,
I am pleased to introduce the second Annual Report of Legacy Minerals Holdings Limited’s (ASX: LGM) since
listing on the Australian Securities Exchange (ASX) in September 2021.
At our listing, which successfully raised $5.8 million, we committed to use our funds to drill and develop a pipeline
of targets prospective for gold, copper and base metal mineralisation.
I am pleased to report that in 2021-22, we faithfully pursued this commitment through our drilling campaigns
at our Bauloora and Harden Projects. The major results of these campaigns were the high grade and shallow
intercepts of gold, silver, and base metal mineralisation at Bauloora where we intercepted 9m at 8.4g/t Au
Eq. from 145m and 3m at 7.1g/t Au Eq. from 149m. The Company also delivered multiple high grade gold
intercepts at Harden including 5m at 7.06g/t Au from 110m.
Recently our focus has been at Bauloora, which is the largest under-explored, low-sulphidation gold-silver
epithermal system in NSW. This project alone presents significant growth potential for our Company and the
associated increase in shareholder value.
At our other tenements, Cobar, Rockley, Fontenoy, and Mulholland, as well as at Bauloora, we also undertook
extensive soil programs, rock sampling, rock chip sampling, historical data reviews and digitisation and aerial
magnetic and radiometric surveys.
During the year, Legacy Minerals also demonstrated its capacity for innovation in its approach to exploration
by entering the artificial intelligence exploration alliance with Earth AI at the Mulholland and Fontenoy
Projects. We intend to build a strong relationship with Earth AI and believe our unique strategy for such a
young company sets us apart from the junior exploration sector on the ASX.
The markets currently remain strong for gold and copper, the commodities on which Legacy Minerals is focussed.
The underlying drivers of global political uncertainties and the significant role of copper in the transition to a
low-carbon future appear to be for the long-term.
We are sincerely grateful to all investors who trusted us with their funds. We acknowledge the support of the
pre-listing shareholders, we welcome the incoming shareholders who joined us through the listing and on
market during the year and sincerely thank you for your support.
With our small but experienced and highly skilled team in place, we are committed to maximising the value
of our precious cash resources in achieving our objective.
On behalf of the Board, I would like to thank our employees, consultants, contractors, joint lead managers
and all our advisers for their efforts and achievements during the year.
We are looking forward to another very exciting year ahead.
Yours sincerely,
David J. Carland
Chairman
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 4
Directors’ Report
The directors of Legacy Minerals Holdings Limited (Company or Legacy Minerals) and its subsidiary Legacy
Minerals Pty Ltd (LMPL) (together referred to as the Group) present their report, together with the financial
statements for the year ended 30 June 2022.
Directors
The Directors of the Company at any time during or since the end of the financial year are:
Dr David Carland (Non-Executive Chairman) PhD (Econometrics), MEc, BEc (Hons), MAICD
Appointed 21 June 2021 as a Director
David has over 40 years of investment banking and commercial experience in both the private sector and
government. He is the Executive Director of Australian Resources Development Limited, a company focused
on the provision of specialised advice and assistance on the structuring, financing, and developing of energy
and resource projects. He is the former chairman of Rex Minerals Limited (ASX: RXM), and former non-
executive director of Indophil Resources NL (ASX: IRN) and Polymetals Mining Limited (ASX: PLY). David holds
a PhD (Econometrics), MEc, BEc (Hons1) and is a member of the Australian Institute of Company Directors.
Christopher Byrne (Managing Director) BsC, BEngs (Hons), M.PM, MAusIMM, MAICD
Appointed 21 May 2021 as a Director
Chris has a number of years of experience as an engineer and manager in the mining, infrastructure, and
logistics sectors in NSW and QLD. In the mining and exploration space he has worked in greenfield and
brownfield environments, from early exploration projects through to mine establishment and operations.
Chris’s experience has been focused on large and complex project delivery, project management,
maintenance and operational support. Outside the mining sector, Chris has lead infrastructure teams in the
public sector in the provisioning and delivery of large capital projects. Chris is a Member of AusIMM and the
Australian Institute of Company Directors.
Matthew Wall (Non-Executive Director) CTE, MCILT
Appointed 21 May 2021 as a Director
Matthew is a metals and mining specialist with over 35 years of experience in sales, marketing,
shipping/logistics, trading, capital raising and risk management. He has held senior management roles with
Rio Tinto, EDF Trading and Wood Mackenzie. Matthew has advised a number of small private and junior listed
mining companies in Australia and overseas on capital raisings and market development. Matthew is a non-
executive Director of ASX company Allegiance Coal Limited and he is a Member of the Chartered Institute of
Logistics & Transport (CILT).
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 5
Directors’ Report (continued)
Thomas Wall (Executive Director and Exploration Manager) BsC (Hons), MAusIMM
Appointed 21 May 2021 as a Director
Thomas is a geologist with wide-ranging experience within the resource sector in NSW and WA having
previously held senior roles at Peak Gold Mines, New South Resources and Omya Australia. He has
demonstrated mining and exploration success across a variety of commodities and deposit styles with
particular focus within the Lachlan Fold Belt of NSW. Thomas is a Member of the Australian Institute of
Geoscientists (AIG) and Australian Institute of Mining and Metallurgy (AusIMM).
Douglas Menzies (Non-Executive Director) DipBA, GradCertIT, BsC (Hons)
Appointed 21 May 2021 as a Director
Douglas has over 28 years of experience in the mineral exploration and GIS industries including as a
consultant. Douglas has experience exploring for porphyry gold-copper and epithermal gold mineralisation
in Australia, PNG, Indonesia, Fiji, Laos, Chile, Argentina and Mexico. Douglas is a Member of the Australian
Institute of Geoscientists (AIG) and a non-executive Director of ASX company Godolphin Resources Ltd.
Company Secretary and Chief Financial Officer
Ian Morgan B Bus, M Com Law, Grad Dip App Fin, CA, AGIA, MAICD, F Fin
Appointed 21 May 2021 as Company Secretary
Ian is a member of Chartered Accountants Australia and New Zealand and the Governance Institute of
Australia, with over 35 years of experience. Ian provides secretarial and advisory services to a range of
companies, including holding the position of Company Secretary and CFO for other listed public companies.
Nature of Operations and Principal Activities
Legacy Minerals has been involved in the acquisition and exploration of gold and copper projects in the
prospective New South Wales (NSW) Lachlan Fold Belt (LFB) since 2017. The Company wholly owns 1,528km2
of granted and pending exploration licence applications in the LFB spanning five projects. The LFB, also known
as the Lachlan Orogen, is a region considered to be a premier exploration and mining district and home to
one of the largest gold mines in Australia, Cadia Valley NSW (Newcrest).
Legacy Minerals has a straightforward exploration strategy: to drill and develop a pipeline of prospective
targets for gold and copper mineralisation. The work conducted on the tenements has defined drill ready
prospects across the Legacy Minerals portfolio.
Legacy Minerals’ projects contain numerous untested geochemical, geophysical and geological targets. These
afford the Company multiple opportunities for gold and copper discoveries; commodities which are currently
enjoying favourable market conditions. Highlights of the projects include:
• drill-ready targets that provide immediate opportunities for gold and copper discoveries;
• projects with a prime position in the LFB targeting porphyry-related Cu-Au, Cobar-type, and low
sulphidation epithermal-style systems; and
• high grade and shallow exploration targets that present an opportunity for near term resource
definition.
There were no significant changes in the nature of the activities of the Company during the financial year.
Dividends
There were no dividends paid or declared by the Company to members during or since the end of the financial
year.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 6
Directors’ Report (continued)
Review of Operations and Outlook
Across six wholly-owned projects in New South Wales, Legacy Minerals (ASX: LGM) is targeting porphyry
related, low-sulphidation epithermal, Cobar-type, volcanic-hosted massive sulphide (VHMS), Renison style
tin, and low sulphide quartz vein mineralisation styles. The portfolio of projects provides the Company with
significant exposure in the Lachlan Fold Belt, a mineral province that hosts several world-class, tier-one ore
bodies.
BAULOORA PROJECT
The Bauloora Project exhibits one of the largest zones of low sulphidation, epithermal-style alteration and
mineralisation in NSW. The project hosts numerous targets with shallow high-grade Au-Ag occurrences which
includes the Mee Mar Prospect with veins out-cropping over 2km and rock samples up to 39.1g/t Au and
464g/t Ag. Historically the largest operating mine, the Mt Felstead Mine operated until 1915 and was drill
tested this year as a priority target.
FIGURE 1: BAULOORA PROJECT LOCATION
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 7
Directors’ Report (continued)
FIGURE 2: BAULOORA EPITHERMAL OVERVIEW AND ANOMALOUS GOLD ZONE
RC Drilling Program
During the reporting period, Legacy Minerals’ exploration activity at Bauloora was highlighted by high-grade
zinc, lead, gold and silver assay results from a reverse circulation (RC) drilling program. Drilling focused on
the Mt Felstead Prospect, where breccia and vein hosted zinc and lead sulphides have been intersected. Mt
Felstead is the first of several high priority target areas Legacy Minerals has tested with drilling at Bauloora.
The campaign returned assays of up to 29.3% Zn + Pb, 8.9g/t Au and 99.3g/t Ag. These results are very
encouraging as they extend previously intercepted high-grade mineralisation. They also indicate the
possibility of a widening of the breccia zone with depth or the potential for discrete high-grade shoots within
the broader mineralised fault.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 8
Directors’ Report (continued)
FIGURE 3: MT FELSTEAD PROSPECT PLAN VIEW SHOWING COMPLETED DRILL HOLES
RC drill assays and logging defined a mineralised breccia dipping approximately 85o to the west, with parallel
mineralised veins striking north-south. Mineralisation has been defined in drilling to 170m depth along a
450m strike length. Mineralisation is open down dip and along strike, where rock chip sampling has defined
outcropping mineralisation for 670m.
The main zone of mineralisation intercepted at Mt Felstead occurred as a steeply dipping lenticular zone, or
ore shoot, developed in a fault breccia. Sphalerite, galena, chalcopyrite, tetrahedrite and gold is hosted in
quartz, chalcedony, calcite, chlorite, fluorite and lesser barite bearing veins. Host rocks are variably silicified
rhyodacite tuffs, with sericite alteration observed in association with shearing and chlorite alteration
proximal to quartz-carbonate veins. The high-grade Ag-Au assay results returned at Mt Felstead appear to
indicate a metal zonation within the mineralisation, a characteristic of carbonate base-metal Ag-Au systems.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 9
Directors’ Report (continued)
Metallurgical Test Work
Legacy Minerals undertook metallurgical test work at the Mt Felstead Prospect, with exceptional gold, silver,
lead and zinc metal recoveries announced in Q3 CY2022. Three metallurgical samples consisting of a total of
111.5kg of percussion RC material were analysed at ALS Ltd in Perth and included separate representative
samples of massive, semi-massive and veined sulphide mineralisation from Mt Felstead. The parameters of
initial test work included a grind size of 80% passing 75μm and four-stage rougher stage flotation using
standard reagents producing a bulk concentrate.
The testing aimed to determine the mineral grades (cumulative grade) and recoveries (cumulative recovery)
of the samples. The flotation process used is a standard mineral beneficiation process for processing
minerals. It involves circuits of crushing and grinding whereby the minerals of value are concentrated and
separated from minerals of no value. This separation is achieved by taking advantage of mineral
hydrophobicity differences. Rougher flotation is usually the first stage of the flotation process where the
maximum amount of the valuable mineral is concentrated at a coarse particle size.
The preliminary flotation test work produced a bulk concentrate containing gold, silver, zinc and lead
mineralisation in one product. Legacy Minerals is investigating the potential that separate concentrate
products for the minerals can be produced using gravity separation, leaching and the floatation processes
described above, where commonly an initial lead flotation stage is followed by a dedicated zinc flotation
stage.
Mt Felstead Prospect rougher flotation concentration stages one to four
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 10
Directors’ Report (continued)
GA-IP and Rock Chipping Survey
Legacy Minerals completed a large 81km, 50m line spaced gradient array induced polarisation (GA-IP) survey
at Bauloora covering the Mee-Mar vein system, which returned rock samples of up to 39.1g/t Au and 464g/t
Ag. The GA-IP encompassed the northern section of a 4km by 2km zone of elevated gold-in-rock chip samples
(>0.1g/t Au). The survey defined a large area which exhibits elevated chargeability and resistivity responses
over the 2km strike. Zones of elevated chargeability and resistivity were found proximal to interpreted and
known veins and mineralisation within the Bethungra and Cowcumbala Volcanics.
FIGURE 4: BAULOORA PROJECT GEOCHEMISTRY AND DRILLING HIGHLIGHTS
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 11
Directors’ Report (continued)
ROCKLEY PROJECT
The Rockley Project is situated within the highly prospective Ordovician Macquarie Arc, which hosts the Cadia
Valley, Northparkes and Cowal orebodies and is coincident with the Lachlan Transverse Zone. Assessment by
the Geological Survey of NSW found that the Rockley Project covers some of the most prospective ground
for porphyry-related Cu-Au mineralisation in the Rockley-Gulgong volcanics.
FIGURE 5: ROCKLEY PROJECT MAGNETICS AND REGIONAL DEPOSITS
Geochemical Activity
Legacy Minerals announced results from rock samples collected during geological mapping at Rockley with
anomalous gold and copper values associated with quartz veined and brecciated Ordovician mafic-ultramafic
rocks reported.
An initial reconnaissance field mapping and rock chip sampling program was completed in January 2022. The
work identified quartz vein, malachite and azurite bearing rocks associated with basalt and faulting. The
setting is analogous to the Racecourse Deposit, 15km to the south-east and hosted within Rockley-Gulgong
volcanics. Historically, gossanous rubble above the Racecourse Deposit returned assays up to 0.56% Cu,
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 12
Directors’ Report (continued)
220ppm Pb, 420ppm Zn and 7ppm Ag. At Racecourse, a significant drill intercept of 920m @ 0.3% Cu from
110m including a higher grade of 156m @ 0.48% Cu from 504m was recently reported.
Legacy Minerals took a total of 40 rock chip samples across the northern Rockley Project area. The area has
extensive copper and gold mineralisation as well as important pathfinder metal assemblages typical of
porphyry copper-gold systems. Notably, rock chip 2899 reported 10ppm Mo, 4,950ppm Cu, 60ppb Au,
9.7ppm Ag, 479ppm As and 394ppm Pb. The work indicated that a major copper-gold mineralised source
may be present within the project area where there has been no previous drilling, systematic geochemical
sampling or detailed geophysical surveying.
FIGURE 6: ROCKLEY GEOCHEMISTRY AND REGIONS OF INTEREST
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 13
Directors’ Report (continued)
Geophysical Activity
Legacy Minerals engaged Thomson Airborne to complete a detailed 440 line km aerial magnetic and
radiometric survey, on 100m line spacing, across the northern and southern Rockley project areas. The survey
provided the Company with a more defined data set than the available Government data. The Company
engaged the GeoDiscovery group to conduct the initial processing of the data with targeting reports and final
interpretations expected in Q3 CY2022.
The primary porphyry target area at Rockley occurs in the northern part of the Project and comprises a
number of intriguing zones of elevated and depressed magnetic and radiometric potassium responses
within Ordovician volcanics. A highly prospective target zone of approximately 1.5km2 has never been
drill tested.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 14
Directors’ Report (continued)
HARDEN PROJECT
The Harden Project encompasses several historical high-grade gold mines that were the largest hard-rock
mines in a mineral district that produced >460,000oz Au from alluvial and hard rock mining. The mines
produced a combined total of ~75,000oz Au at an average grade of 28.6g/t Au – all before 1919. There are
two main strikes of mine in the tenement area: the historical Harden Gold Mine corridor and McMahons Reef
Gold Mine corridor.
Overview of the Harden Exploration Licences
Diamond Drilling Program
In early 2022, Legacy Minerals completed a diamond drilling program at Harden which was designed to test
previously identified down-plunge targets. Eight holes were drilled in this program for a total of 1,714m,
including 1,288.5m diamond core and 425.5m mud-rotary pre-collar. Visible gold was identified in two holes
including being intersected in core from hole HN0013 at 194m.
The Company experienced some delays during this program. A drill rig engine failure occurred, causing an
extended delay to drilling in January. A second diamond rig was mobilised to complete drilling while the first
rig was repaired. During this delay, Legacy Minerals reviewed the program and added two diamond holes to
further test the down plunge potential of the historical workings and the significant gold grades previously
intercepted.
Broad assay delays in the industry, as well as delays arising from the additional quality control and assurance
processes undertaken by the Company to ensure accuracy in reporting gold assays were also experienced.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 15
Directors’ Report (continued)
Maiden RC Drilling Program
The diamond drilling followed Legacy Minerals’ maiden 1,550m RC drilling program at Harden, the first
drilling conducted below the Harden Gold Mine in more than 100 years. Legacy Minerals’ initial campaign
was designed to test extensions of high-grade gold mineralisation historically mined at the Harden Gold Mine.
Mineralisation was historically reported to occur in quartz veining in association with pyrite and minor
amounts of galena, sphalerite and arsenopyrite.
Legacy Minerals delivered exceptional results from this campaign, with high grades, strike and widths seen
in drillholes increasing the Company’s knowledge of the mineral system. Wide zones up to 15m of quartz-
sericite-pyrite alteration associated with shearing have been identified at the targets similar in style to what
was intersected in previously drilled holes. The extent of the mineralisation through these broad zones
expanded both the scale and potential size of the system.
The high-grade interval in RC21HN005 of 5m at 7.06g/t Au from 110m is associated with quartz veining,
within a zone of strong sericite-pyrite alteration and shearing. The interval correlates well with the modelled
unstoped ground of the historical Harden Gold Mine. The intersection in hole RC21HN006 occurs 50m up dip
of RC21HN005 and displays similar mineralised zones. Broad zones of gold mineralisation were intercepted
between 120m and 141m. Mineralisation is open along strike and down dip.
DP-DP Survey
Legacy Minerals returned encouraging results of a Dipole-Dipole Induced Polarisation (DP-DP) geophysical
survey at Harden. A total of 9 lines of DP-DP surveyed over the historical mine corridor with the survey lines
orientated SW-NE with lines equally spaced 100m apart with 50m spaced dipoles. The survey delivered
several highly chargeable anomalies coincident with known historical workings.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 16
Directors’ Report (continued)
COBAR PROJECT
Legacy Minerals has control of 45km of strike over major faulting immediately neighbouring the Peak Gold
Mines within the Cobar Basin, one of Australia’s most prolific base and precious metals production regions.
Across the tenement, shallow transported cover has resulted in a large, shallow, unexplored search space
prospective for Cobar-type mineralisation. The tenements contain numerous high priority geophysical and
geochemical anomalies for follow up.
FIGURE 7: COBAR TENEMENT MAGNETICS AND REGIONAL MINING AND EXPLORATION COMPANIES
Legacy Minerals, in participation with Geoscience Australia and the Geological Survey of NSW, also
completed 1,050km of flight lines covering 78% of the project area. The processing and interpretation of this
aeromagnetic data identified 21 high priority targets. Importantly, the data demonstrated the continuity of
major structures through both tenements. These structures are a ‘key ingredient’ to facilitate the
emplacement of Cobar-type mineralisation.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 17
Directors’ Report (continued)
The detailed aeromagnetic data highlighted several priority aerial electromagnetic (AEM) targets previously
identified through the survey. The Yarrawonga prospect has been highlighted as an area of significant
interest. Interpreted major faulting nearby identified AEM anomalies, zones of elevated IP chargeability and
anomalous surface geochemistry including gold in lag up to 1.5g/t Au.
Soil Geochemistry Program
During the reporting period, soil programs were undertaken across the Woggle, Kidman, Yarrawonga, and
Hillview Prospect areas and were completed in Q3 CY2022. Approximately 3,500 samples have been collated
and submitted for assays. This area is east of the large Cobar Basin forming Myrt Fault where previous
geological mapping by the Company has identified areas of strike extensive quartz veining. The identified
quartz veining is interpreted as along strike of the Langtons Prospect held by Aurelia (ASX: AMI). Soil sampling
continued over priority AEM targets. A ground magnetics survey was partially completed over the Woggle
Prospect in February before 3D modelling in preparation for drill testing.
FIGURE 8: COBAR PROJECT PLANNED GEOCHEMISTRY AREA AND GEOPHYSICAL TARGETS
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 18
Directors’ Report (continued)
FONTENOY PROJECT
The Fontenoy Project exhibits an 8km long zone of Au and Cu anomalism defined in soil sampling and drilling.
The southern 3.5km extent of this zone is covered by shallow quaternary cover which had limited drill testing
that resulted in encouraging Au-Cu intercepts. Significant drill intersects included: 79m at 0.27% Cu from
1.5m, 22m at 0.34% Cu and 0.67g/t Au, and 58m at 0.2% Cu from 2m.
FIGURE 9: FONTENOY PROJECT GEOLOGY AND SIGNIFICANT DRILLING
MULHOLLAND PROJECT
In December 2021, Legacy Minerals was granted the 194km2 Mulholland tenement for a period of three
years. Mulholland is 35km south-east of Bourke, NSW, on the boundary of the Lachlan and Thompson
Orogens, in a terrain which has demonstrable prospectivity for large and high-grade skarn mineralisation
including tin, copper, tungsten, nickel, gold and zinc.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 19
Directors’ Report (continued)
Mulholland includes known skarns and untested magnetic and geochemical anomalies suspected of being
related to Sn-Cu-W skarn and Ni bearing serpentinites. The Project covers several significant drill ready Ni
and Sn-W prospects, in a prospective land position 500m south-east of Sky Metals’ (ASX: SKY) emerging Sn-
Cu 3KEL prospect and less than 3km from the Sn-Cu Doradilla Prospect.
FIGURE 10: MULHOLLAND PROJECT OVERVIEW
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 20
Directors’ Report (continued)
CORPORATE
Legacy Minerals commenced trading on the Australian Securities Exchange (ASX) on 13 September 2021
following an Initial Public Offering which raised $5.8M. The Company issued 29 million shares at an issue
price of $0.20 per share.
Strategic Exploration Alliance Entered with Earth AI
Legacy Minerals signed an Exploration Alliance Agreement with Earth AI covering its Fontenoy and
Mulholland tenements. The Exploration Alliance allows for a co-funding model, whereby Earth AI will
contribute up to AUD$4.5M of total exploration costs across the tenements over a two-year period, with an
option to extend for a further year. Subject to a qualifying drilling intersection being subsequently identified
on any tenement, Earth AI is entitled to a net smelter return royalty up to 3% in connection with a to be
agreed upon area surrounding the discovery.
Earth AI is a vertically integrated metals exploration company based in San Francisco, USA. The Company’s
NSW-based operations are at Young, 15km from Fontenoy. Earth AI plans to implement its artificial
intelligence deposit targeting system to generate drill targets across the Company’s tenements.
Legacy Minerals is under no obligation to explore, develop or mine any of the tenements during the period
of the Strategic Alliance. However, after the second anniversary of the Royalty Trigger Date, if no mineral
resource has been defined and the combined annual exploration development and mining expenditure in
the Area of Interest falls below USD$250,000, Earth AI will have the option to assume operational control
and buy all of the Royalty Tenements that overlap with the single Area of Interest under the Minerals Royalty
Deed, for a cash purchase price equal to USD$1,000,000 plus a 2% net smelter royalty granted to Legacy
Minerals.
Legacy Minerals will retain 100% ownership over the tenements covered under the Agreement, subject to
Earth AI exercising the option described above. The Agreement will not affect the capital structure of the
Company.
FIGURE 11: EARTH AI EXPLORATION MODEL AND DRILLING CONFIGURATION
Financial
The Group incurred an operating loss after tax for the year ended 30 June 2022 of $2,072,546 (2021:
$855,307). The Group retained a cash balance of $2,765,670 (2021: $752,817) at 30 June 2022.
Capital Raisings
In anticipation of the Initial Public Offering by Legacy Minerals Holdings Limited and listing of its shares on
the Australian Securities Exchange, on 5 July 2021 Legacy Minerals Holdings Limited (incorporated on 21 May
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 21
Directors’ Report (continued)
2021) acquired all the issued shares of LMPL by the issue of one (1) ordinary fully paid share for one (1) LMPL
ordinary fully paid share.
On 13 September 2021, Legacy Minerals Holdings Limited was quoted on the Australian Securities Exchange
(ASX), completing an Initial Public Offering (IPO) of 29,007,500 new shares at an issue price of $0.20, raising
$5,801,500 before transaction costs.
Further details of capital raisings are set out in Note A6.
Events Subsequent to the Reporting Date
No matters or circumstances have arisen since the end of the year which significantly affected, or may
significantly affect, the operations of the Group, the results of these operations or the Group’s state of affairs
in future financial years.
Environmental Regulation
The Board believes that the Group has adequate systems in place for the management of its environmental
requirements.
Based on results of enquiries made, the Directors are not aware of any significant breaches during the year
covered by this report.
Directors’ Meetings
The numbers of Directors' meetings (including meetings of committees of Directors) where Directors were
eligible to attend and attended in person or by alternate during the financial year by each of the Directors of
the Company were:
Director
David Carland
Christopher Byrne
Matthew Wall
Thomas Wall
Douglas Menzies
Board
Number of Meetings
Attended
8
8
8
8
8
Eligible to Attend
8
8
8
8
8
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 22
Directors’ Report (continued)
Directors’ Interests
The relevant interest of each director in the Company’s shares and options over shares issued by the
Company, at the date of this report is as follows:
Ordinary Fully Paid Shares
2021
Balance at 1 July 2020
Shares issued during the period
On-market purchases during
the period
Balance at the date of the
Directors’ Report
2022
Balance at 1 July 2021
Shares issued during the period
On-market purchases during
the period
Balance at the date of the
Directors’ Report
Unquoted Options
2021
Balance at 1 July 2020
Options granted during the
period
Options exercised during the
period
Options granted during the
period
Balance at the date of the
Directors’ Report
2022
Balance at 1 July 2021
Options granted during the
period
Options exercised during the
period
Balance at the date of the
Directors’ Report
David
Carland
Number
Christopher
Byrne
Number
Thomas
Wall
Number
Matthew
Wall
Number
Douglas
Menzies
Number
-
750,000
11,000,001
150,000
11,937,501
820,000
11,937,501
820,000
-
670,000
-
-
-
-
-
750,000
11,150,001
12,757,501
12,757,501
670,000
-
750,000
11,000,001 12,607,501 12,607,501
150,000
150,000
150,000
670,000
-
-
116,984
45,500
45,500
-
750,000
11,266,985 12,803,001 12,803,001
670,000
-
-
-
-
-
-
-
-
-
520,000
520,000
520,000
(520,000)
(520,000)
(520,000)
500,000
1,000,000
1,500,000
1,500,000
500,000
500,000
1,000,000
1,500,000
1,500,000
500,000
-
-
-
-
-
500,000
1,000,000
1,500,000
1,500,000
500,000
-
-
-
-
-
500,000
1,000,000
1,500,000
1,500,000
500,000
The terms and conditions of the options granted are outlined in Note A6 to the accounts.
Thomas Wall is the son of Matthew Wall and, in addition to shares and options he holds directly, by virtue
of his relationship with Matthew Wall he has an indirect interest in shares and options held by entities
related to Matthew Wall. The number of shares and options held at the date of this report by Messrs
Thomas Wall and Matthew Wall are combined. Refer to the Remuneration Report (Audited) on page 24 for
more details.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 23
Directors’ Report (continued)
Remuneration Report (Audited)
This report outlines the remuneration arrangements in place for key management personnel of the Group.
Remuneration is referred to as compensation throughout this report.
Remuneration Policy
Directors and key management personnel have authority and responsibility for planning, directing and
controlling the activities of the Group.
Compensation levels for key management personnel of the Group will be competitively set to attract and
retain appropriately qualified and experienced Directors, executives and future executives. Current
remuneration levels are driven largely by the requirement to conserve cash within the Group. There were no
remuneration consultants used to set the remuneration of key management personnel.
The compensation structures explained below are designed to attract suitably qualified candidates, reward
the achievement of strategic objectives, and achieve the broader outcome of creation of value for
shareholders. The compensation structures take into account:
•
•
•
the capability and experience of the key management personnel
the key management personnel’s ability to control the Group’s performance
the Group’s performance including:
-
-
-
the Group’s earnings;
the growth in the Company’s share price and delivering constant returns on shareholder wealth;
and
the amount of incentives within each key management person’s compensation.
Compensation packages will include a mix of fixed and variable compensation, and short-term and long-term
performance-based incentives.
In addition to their salaries, the Group also provides non-cash benefits to its key management personnel, and
where applicable, contributes to the individual’s elected post-employment superannuation plan on their
behalf.
Contract Terms and Conditions
The determination of Directors' remuneration is made by the Board having regard to the current position of
the Group, in that it is as yet not in production and continues to preserve cash as much as possible.
Executive services agreement – Christopher Byrne
The Company has entered into an executive services agreement with Christopher Byrne in respect of his
appointment as Chief Executive Officer and Managing Director of the Company (CEO Agreement). The key
terms of the CEO Agreement are as follows:
Base Salary
$185,000 per annum
Superannuation
Total Fixed Remuneration (TFR)
(see Note 1 below)
Notice Period by the
Company
Notice Period by
Executive
$18,500 per annum, being the minimum statutory
superannuation employer contribution, 10% for the year
ended 30 June 2022
$203,500 per annum (made up of $185,000 per annum
Base Salary plus $18,500 Superannuation)
3 months (can be paid out in lieu of Notice)
3 months (or such shorter period agreed by the parties)
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 24
Directors’ Report (continued)
Frequency of payment of TFR
Equity Incentives granted under
the Company’s Performance
Rights and Options Plan
Short Term (STIP) and Long-Term
Incentive (LTIP)
Monthly - on or about the 15th of each month
1,000,000 unlisted options with an exercise price of $0.30 and
expiring 22 June 2026
No STIP and LTIP currently in place. The Company’s current
incentives are as described above and vesting is subject to
specific milestone.
The CEO Agreement contains additional provisions considered standard for agreements of this nature.
Executive services agreement – Thomas Wall
The Company has entered into an executive services agreement with Thomas Wall in respect of his
appointment as Exploration Manager and Executive Director of the Company (Exploration Manager
Agreement).
The key terms of the Exploration Manager Agreement are identical to the key terms of the CEO Agreement
summarised above.
The Exploration Manager Agreement contains additional provisions considered standard for agreements of
this nature.
Non-Executive Director appointment letters
The Company has entered into non-executive director appointment letters with each of Matthew Wall,
Douglas Menzies and David Carland on the following key terms:
(i) Matthew Wall and Douglas Menzies each receive a Non-Executive Director’s fee of $45,000 per annum
(including statutory superannuation);
(ii) David Carland receives a Chairman’s fee of $60,000 per annum (including statutory superannuation);
(iii) During the year ended 30 June 2022, Matthew Wall, Douglas Menzies and David Carland were each
issued 500,000 unlisted options, each providing the holder with the right to be issued one ordinary fully
paid share by the Company for a strike price of $0.30 each. The options vested on issue and expire on 22
June 2026.
(iv) their respective appointments shall cease if Matthew Wall, Douglas Menzies or David Carland:
(A) resigns by notice in writing;
(B) is disqualified under the Corporations Act or the Constitution from being a company director; or
(C) is removed as a Director in accordance with the Corporations Act or the Constitution; and
(v) Matthew Wall, Douglas Menzies and David Carland may only use confidential information about the
Company and its affairs in the proper performance of their duties or as required by law.
The non-executive director appointment letters contain additional provisions considered standard for
agreements of this nature.
IHM consultancy agreement
The Company entered into a consultancy agreement with IHM Corporate Services Pty Ltd (IHM), under which
Ian Morgan provides key corporate services to the Company, including in his role as Chief Financial Officer
and Company Secretary (IHM Consultancy Agreement).
The IHM Consultancy Agreement commenced on 21 May 2021 and may be terminated earlier by the
Company or IHM giving three months’ notice. The Company may also terminate the IHM Consultancy
Agreement immediately by providing a payment of three months’ fees in lieu of notice and otherwise if it
has cause in accordance with the IHM Consultancy Agreement.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 25
Directors’ Report (continued)
Under the IHM Consultancy Agreement, IHM’s professional fees are $6,240 per month excluding GST, and
the rate is $260 per hour excluding GST, with any extra hours per month being invoiced at that rate (subject
to agreement from the Company).
The IHM Consultancy Agreement otherwise contains provisions considered standard for an agreement of its
nature.
GeoInsite consultancy agreement
The Group entered into a consultancy agreement with GeoInsite Pty Ltd (GeoInsite), a company controlled
by Director Douglas Menzies, under which GeoInsite provides geologist services to the Group (GeoInsite
Consultancy Agreement).
Under the GeoInsite Consultancy Agreement, GeoInsite’s professional fees are $1,300 per day (net of local
taxes or plus GST) or $140/hour (plus GST). The GeoInsite Consultancy Agreement does not identify a term.
The GeoInsite Consultancy Agreement otherwise contains provisions considered standard for an agreement
of its nature.
During the year ended 30 June 2022, 3,750,000 unquoted options were granted, in accordance with the
Company’s employee share and option plan, by the Company and expire on 22 June 2026. 3,500,000 options
are ASX escrowed to 13 September 2023, and 250,000 options were ASX escrowed to 7 July 2022. Each option
is exercisable into one Company ordinary fully paid share for an exercise price of $0.30.
During the year ended 30 June 2021, 1,040,000 unquoted options granted by LMPL, each exercisable into
one LMPL ordinary fully paid share within five (5) years of their issue date, for an exercise price of $0.05
($0.005 cash plus $0.045 in lieu of services provided to LMPL and granted as remuneration).
Other than as disclosed in this report, there are no entitlements for the Company’s option holders to
participate in new issues of capital which may be offered to the Company’s existing ordinary shareholders.
The Company prohibits those that are granted share-based payments as part of their remuneration from
entering other arrangements that limit their exposure to losses that would result from share price decreases.
Entering such arrangement is prohibited by law.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 26
Directors’ Report (continued)
Equity instruments
The movement during the year in the number of securities of the Company held, directly, indirectly or beneficially, by each specified Director and Officer,
including their personally related entities, is as follows:
Ordinary Fully Paid Shares
2021
Balance at 1 July 2020
Shares issued during the year
On-market purchases during the year
Balance at 30 June 2021
2022
Balance at 1 July 2021
Shares issued during the year
On-market purchases during the year
Balance at 30 June 2022
Directors
Company Secretary
David
Carland
Number
Christopher
Byrne
Number
Thomas
Wall1
Number
Matthew
Wall1
Number
Douglas
Menzies
Number
Ian Morgan
Number
-
-
-
-
11,000,001
-
-
11,000,001
11,937,501
670,000
-
12,607,501
11,937,501
670,000
-
12,607,501
-
750,000
-
750,000
11,000,001
150,000
116,984
11,266,985
12,607,501
150,000
45,500
12,803,001
12,607,501
150,000
45,500
12,803,001
-
670,000
-
670,000
670,000
-
-
670,000
-
-
-
-
-
100,000
-
100,000
1 The combined number of shares held at 30 June 2022 by Messrs Thomas Wall and Matthew Wall total 12,803,001 (2021: 12,607,501).
Thomas Wall is the son of Matthew Wall and, in addition to shares he holds directly, by virtue of his relationship with Matthew Wall he has an indirect interest in shares held by entities related
to Matthew Wall.
Matthew Wall is the father of Thomas Wall and, in addition to shares he holds through the entities he controls, by virtue of his relationship with Thomas Wall he has an indirect interest in
shares Thomas Wall holds directly.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 27
Directors’ Report (continued)
Unquoted Options
2021
Balance at 1 July 2020
Options granted during the year3
Options exercised during the year
Options granted during the year
Balance at 30 June 2021
2022
Balance at 1 July 2021
Options granted during the year4
Options exercised during the year
Balance at 30 June 2022
David
Carland
Number
Christopher
Byrne
Number
Directors
Thomas
Wall2
Number
Matthew
Wall2
Number
Douglas
Menzies
Number
Company Secretary
Ian Morgan
Number
-
-
-
-
-
-
-
-
-
-
-
520,000
(520,000)
-
-
-
520,000
(520,000)
-
-
-
500,000
-
500,000
-
1,000,000
-
1,000,000
-
1,500,000
-
1,500,000
-
1,500,000
-
1,500,000
-
520,000
(520,000)
-
-
-
500,000
-
500,000
-
-
-
-
-
-
250,000
-
250,000
The terms and conditions of the options granted are outlined in Note A6 to the accounts.
2 The combined number of options held at 30 June 2022 by Messrs Thomas Wall and Matthew Wall total 1,500,000 (2021: Nil).
Thomas Wall is the son of Matthew Wall and, in addition to options he holds directly, by virtue of his relationship with Matthew Wall he has an indirect interest in options held by entities
related to Matthew Wall.
Matthew Wall is the father of Thomas Wall and, in addition to options he holds through the entities he controls, by virtue of his relationship with Thomas Wall he has an indirect interest in
options Thomas Wall holds directly.
3 Unquoted options granted by LMPL, each exercisable into one LMPL ordinary fully paid share within five (5) years of their issue date, for an exercise price of $0.05 ($0.005 cash plus $0.045 in
lieu of services provided to the Company and granted as remuneration).
4 Unquoted options granted, in accordance with the Company’s employee share and option plan, by the Company expiring on 22 June 2026. The Director’ options are ASX escrowed from 7 July
2021 to 13 September 2023. The Company Secretary’s options were ASX escrowed from 7 July 2021 to 7 July 2022. Each option is exercisable into one Company ordinary fully paid share for an
exercise price of $0.30.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 28
Directors’ Report (continued)
Options Issued to Directors or Executives
Options were previously granted to Directors, or their nominees, in lieu of market related cash remuneration. The options were granted at no cost to the recipient.
There are no entitlements for the Company’s option holders to participate in new issues of capital, which may be offered to the Company’s existing ordinary
shareholders. No options were exercised by Directors during the financial year ended 30 June 2022 (2021: 1,040,000).
The Company prohibits those that are granted unvested or restricted share-based payments, as part of their remuneration, from entering into other
arrangements that limit their exposure to losses that would result from share price decreases. Entering into such arrangement has been prohibited by law since
1 July 2011.
Details of vesting profiles of the options granted as remuneration to each key management person of the Group and each of the named key management persons
are detailed below:
Director
Issuer
Grant and
Vesting Date
Expiry date
Exercise
Price per
Share
Fair Value of
Option at Grant
Date
Number
Vested at the end
of the reporting
period
2022
%
2021
%
Lapsed during the
reporting period
2022
%
2021
%
David Carland
Christopher
Byrne
Thomas Wall
Matthew Wall
Douglas
Menzies
Ian Morgan
Company
7 July 2021 22 June 2026
Company
7 July 2021 22 June 2026
Company
Company
LMPL
LMPL
Company
LMPL
LMPL
Company
7 July 2021 22 June 2026
7 July 2021 22 June 2026
15 April 2021 15 April 2026
1 Nov 2020
1 Nov 2025
7 July 2021 22 June 2026
1 April 2026
1 April 2021
1 Nov 2020
1 Nov 2025
7 July 2021 22 June 2026
$0.30
$0.30
$0.30
$0.30
$0.005
$0.005
$0.30
$0.005
$0.005
$0.30
$0.13495
500,000
$0.13495
1,000,000
$0.13495
$0.13495
$0.045
$0.045
$0.13495
$0.045
$0.045
$0.13495
1,000,0005
500,0005
346,600
173,400
500,000
346,600
173,400
250,000
100
100
100
100
-
-
100
-
-
100
-
-
-
-
100
100
100
100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5 Messrs Matthew Wall and Thomas Wall are respectively father and son. By virtual of their relationship, they each have an indirect interest in the same options. Refer to Directors on page 23 for
more information.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 29
Directors’ Report (continued)
Key Financial Statistics
When considering the Group's performance and benefits for shareholder wealth, the Board has regard to
these indices in respect of the current financial year and the previous financial year:
Loss for the financial year attributable to owners of the Group
Working capital at 30 June
Net assets at 30 June
Number of Shares on issue at 30 June
Share price at 30 June
Market capitalisation at 30 June
Loss on capital employed for the financial year
Options benefits of key management persons
Other compensation of key management persons
Total compensation of key management persons for the financial
year
2022
$2,072,546
$2,673,759
$4,860,495
75,175,502
2021
$855,307
$479,395
$810,459
44,368,002
$0.14 Not Applicable
$10,524,570 Not Applicable
105.5%
$42,546
$163,315
42.6%
$506,063
$642,712
$1,148,775
$205,861
During the financial year ended 30 June 2022, the Group focused on raising capital for exploring and
developing its tenement holdings within the LFB. Further details are included in the Review of Operations
and Outlook on page 7.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 30
Directors’ Report (continued)
Directors’ Remuneration for the year ended 30 June 2022
Details of the nature and amount of each major element of remuneration of each Director of the Group and other key management personnel of the Group are:
Short-term
Post-employment Other
Salary &
fees
$
-
2,143
176,923
12,115
176,923
36,923
-
24,104
-
18,895
-
-
Consulting
fees
$
60,000
-
-
-
-
-
Cash
bonus
$
-
-
-
-
-
-
Non-
monetary
benefits
$
-
-
-
-
-
-
45,002
10,983
45,000
-
103,480
53,430
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
353,846
253,482
2021
94,180
64,413
Director
David Carland
Christopher Byrne
Thomas Wall
Douglas Menzies
Matthew Wall
Management
Ian Morgan
(Company Secretary
and CFO)
Total compensation
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
Total
$
60,000
2,143
176,923
12,115
176,923
36,923
45,002
35,087
45,000
18,895
103,480
53,430
607,328
158,593
Superannuation
benefits
$
-
-
17,692
1,151
17,692
3,571
-
-
-
-
-
-
35,384
4,722
long
term
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Termination
benefits
Share-based
payments
Total
Proportion of
remuneration
performance
related
Value of
options as
proportion of
remuneration
Options6
$
67,475
-
134,950
-
134,950
-
67,475
21,273
67,475
21,273
$
127,475
2,143
329,565
13,266
329,565
40,494
112,477
56,360
112,475
40,168
33,738
137,218
-
53,430
506,063
1,148,775
42,546
205,861
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
52.9%
0.0%
40.9%
0.0%
40.9%
0.0%
60.0%
37.7%
60.0%
53.0%
24.6%
0.0%
44.1%
20.7%
52.9%
0.0%
40.9%
0.0%
40.9%
0.0%
60.0%
37.7%
60.0%
53.0%
24.6%
0.0%
44.1%
20.7%
6 The fair value of the options is calculated at+ the date of grant using the Black Scholes option pricing model and allocated to each reporting period evenly over the period from grant date to vesting date. The value
disclosed is the portion of the fair value of the options recognised as an expense in each reporting period.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 31
Directors’ Report (continued)
Details of options over ordinary shares in the Company and LMPL that were granted as compensation, for
no cash consideration, to each key management person during the reporting period and details that vested
during the reporting period are as follows:
Unquoted Options
Key Management
Person
Year ended 30 June
2022
David Carland
Christopher Byrne
Thomas Wall
Douglas Menzies
Matthew Wall
Ian Morgan
Year ended 30 June
2021
David Carland
Christopher Byrne
Thomas Wall
Douglas Menzies
Matthew Wall
Ian Morgan
Balance
of options
Balance
of shares
at 1 July
Company
Number
Unlisted option issued in lieu of
services
Unlisted options
exercised into
ordinary fully
paid shares
Balance of
options at 30
June
Company
Number
LMPL
Number
LMPL
Number
Company
Number
-
-
-
-
-
-
-
-
-
-
-
-
500,000
1,000,000
1,000,000
500,000
500,000
250,000
-
-
-
-
-
-
-
-
-
-
-
-
500,000
1,000,000
1,000,000
500,000
500,000
250,000
-
-
-
-
-
-
-
-
-
520,000
520,000
-
-
-
-
(520,000)
(520,000)
-
-
-
-
-
-
-
End of Remuneration Report (Audited)
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 32
Directors’ Report (continued)
Shares Under Option
Each option offers the holder the right to be issued one ordinary fully paid Company or LMPL share, as
applicable, upon payment of the exercise price to Company or LMPL (as applicable).
Unquoted Options
Expiry dates
Exercise
Price
Options
outstanding
at 1 July
Options
granted
during the
period since
1 July
Options
exercised
during the
period since 1
July
Options
outstanding
at the date of
this report
Number
Number
Number
Number
30 June 2022
1 July 2025 to 28 April
2026 (LMPL)
7 September 2024
(Company)
22 June 2026
(Company)
$0.005
$0.30
$0.30
30 June 2021
1 July 2025 to 28 April
2026 (LMPL)
$0.005
-
-
-
-
-
-
-
1,100,000
3,750,000
4,850,000
-
-
-
-
4,828,000
(4,828,000)
4,828,000
(4,828,000)
-
1,100,000
3,750,000
4,850,000
-
-
Indemnification and Insurance of Officers and Auditor
Indemnification and Insurance
The Group indemnifies current and former Directors and Officers for any loss arising from any claim by reason
of any specified act committed by them in their capacity as a Director or Officer (subject to certain exclusions
as required by law).
The Group has paid insurance premiums in respect of directors’ and officers’ liability. Insurance cover relates
to liabilities that may arise from their position (subject to certain exclusions as required by law).
Details of the nature of the liabilities covered or the amount of the premium paid in respect of the Directors’
and Officers’ liability insurance are not disclosed. Such disclosure is prohibited under the terms of the policy.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by
law, indemnified or agreed to indemnify an officer or auditor of the Group or of any related body corporate
against a liability incurred as such by an officer or auditor.
Audit Services
During the year ended 30 June 2022, the Group expensed an amount of $81,614 (2021: $45,000) payable to
its auditor, BDO Audit Pty Ltd, for audit services provided to the Group.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 33
Directors’ Report (continued)
Non-Audit Services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial
year by the auditor are outlined in Note D6 to the financial statements.
The board has considered the non-audit services provided during the year by the auditor and in accordance
with written advice provided by resolution of the audit and risk committee, is satisfied that the provision of
those non-audit services during the year by the auditor is compatible with, and did not compromise, the
auditor independence requirements of the Corporations Act 2001 (Cth) for the following reasons:
(a) All non-audit services were subject to the corporate governance procedures adopted by the Group and
have been reviewed by the Company’s directors to ensure they do not impact the integrity and objectivity
of the auditor; and
(b) The non-audit services provided do not undermine the general principles relating to auditor
independence set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve
reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for
the Group, acting as an advocate for the Group or jointly sharing risks and rewards.
Rounding Off
The Group is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 dated 24 March 2016. Amounts in the Financial Report and Directors’ Report have been reported
to the nearest dollar, unless otherwise stated.
Lead Auditor’s Independence Declaration
The lead auditor’s independence declaration made under Section 307C of the Corporations Act 2001 (Cth) is
set out on page 63.
Previously Reported Information
The information in this report that references previously reported exploration results is extracted from
Legacy Minerals Holdings Limited’s ASX Announcements released on the date noted in the body of the text
where that reference appears. The ASX Announcements are available to view on Legacy Minerals Holdings
Limited's website or on the ASX website (www.asx.com.au). The Company confirms that it is not aware of
any new information or data that materially affects the information included in the original market
announcements. The Company 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.
Signed in accordance with a resolution of the Board of Directors.
Dr David Carland
Chairman
Sydney
30 September 2022
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 34
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Year Ended 30 June 2022
Other income
Employee expenses
Share based payments
Administration expenses
Depreciation –Plant and Equipment
Total Expenses
Loss before income tax
Income tax benefit
Net loss attributable to members of the
Company
Other comprehensive income, net of income
tax
Total comprehensive loss
Loss per share – basic
Loss per share – diluted
Note
A6
D1
A12
D2
D3
D3
2022
$
-
306,554
506,063
1,229,488
30,441
2,072,546
2,072,546
-
2021
$
-
66,713
217,260
567,612
3,722
855,307
855,307
-
2,072,546
855,307
2,072,546
Cents
2.95
2.95
-
855,307
Cents
2.76
2.76
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with
the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 35
Consolidated Statement of Financial Position
As at 30 June 2022
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation assets
Tenement deposits
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Employee benefits
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payment reserve
Accumulated Losses
Equity
Note
A11
A8
A12
A13
A9
A10
A6
A6
30 June 2022
$
30 June 2021
$
2,765,670
142,615
20,000
2,928,285
118,319
1,970,416
98,000
2,186,735
5,115,020
230,081
24,443
254,524
-
254,524
4,860,496
7,200,380
617,105
(2,956,989)
4,860,496
752,817
204,734
-
957,551
85,479
175,585
70,000
331,064
1,288,615
472,786
5,370
478,156
-
478,156
810,459
1,694,902
-
(884,443)
810,459
The above Statement of Financial Position should be read in conjunction with the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 36
Consolidated Statement of Changes in Equity
Year Ended 30 June 2022
Note
A6
A6
A6
A5
A6
A6
Ordinary
fully paid
shares
$
210,502
-
-
-
1,267,140
-
217,260
1,694,902
1,694,902
-
-
-
5,505,478
-
-
7,200,380
Share based
payment
reserve
$
Accumulated
losses
$
Total Equity
$
-
-
-
-
-
(29,136)
181,366
(855,307)
(855,307)
-
-
(855,307)
(855,307)
-
1,267,140
217,260
(217,260)
-
-
-
-
(884,443)
(884,443)
217,260
-
810,459
810,459
-
-
-
-
(2,072,546)
(2,072,546)
-
-
(2,072,546)
(2,072,546)
-
5,505,478
617,105
-
617,105
-
-
(2,956,989)
617,105
-
4,860,496
Balance at 1 July 2020
Net loss attributable to members
of the Company
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Contributions of equity, net of
transaction costs
Equity settled share-based
payments for the year
Conversion of share options
Balance at 30 June 2021
Balance at 1 July 2021
Net loss attributable to members
of the Company
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Contributions of equity, net of
transaction costs
Equity settled share-based
payments for the year
Conversion of share options
Balance at 30 June 2022
The above Statement of Changes in Equity should be read in conjunction with the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 37
Consolidated Statement of Cash Flows
Year Ended 30 June 2022
Note
A7
A12
A6
A9
Cash flows used in operating activities
Receipts from customers
Payments to suppliers and employees
Net cash used in operating activities
Cash flows used in investing activities
Payments for plant and equipment
Payments for exploration and evaluation costs
Payment for term deposits
Payments for mining tenement deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from capital raisings
Proceeds for Legacy Minerals Holdings Limited share
application monies received
Payments for capital raising costs
Net cash generated from financing activities
Net increase in cash and cash equivalents
Opening Cash and cash equivalents
Closing Cash and cash equivalents at 30 June
A11
2022
$
2021
$
-
(1,717,304)
(1,717,304)
(63,281)
(1,655,693)
(20,000)
(28,000)
(1,766,974)
-
(508,339)
(508,339)
(87,838)
(94,942)
-
(40,000)
(222,780)
5,801,500
1,267,140
-
(304,369)
5,497,131
2,012,853
752,817
2,765,670
180,000
(51,962)
1,395,178
664,059
88,758
752,817
The above Statement of Cash Flows should be read in conjunction with the accompanying Notes.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 38
Notes to the Financial Statements
Year Ended 30 June 2022
General Information
The financial statements of Legacy Minerals Holdings Limited (Company or Legacy Minerals) and its
subsidiary Legacy Minerals Pty Ltd (LMPL) (together referred to as the Group) are presented in Australian
dollars, which is the Group’s functional and presentation currency.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30
September 2022.
The Notes to the financial statement are set out in the following main sections:
General Information
Section A – Key Financial Information and Preparation Basis. Refer page 40.
Section B – Risk and Judgement Refer page 49.
Section C – Key Management Personnel and Related Party Disclosures Refer page 54.
Section D – Other Disclosures Refer page 55.
Legacy Minerals Pty Limited Annual Report 30 June 2022
Page 39
Notes to the Financial Statements (continued)
Section A – Key Financial Information and Preparation Basis
A. This section sets out the basis upon which the Group’s financial statements have been prepared as a
whole and explains the results and performance of the Group that the Directors consider most relevant
in the context of the operations of the entity.
Statement of Compliance
The Group’s financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001 (Cth). The Group’s financial statements comply
with International Financial Reporting Standards (IFRS) adopted by the International Accounting
Standards Board (IASB).
Basis of Preparation
The financial report is prepared on the historical cost basis other than share-based transactions that are
assessed at fair value.
Group Restructure
For the purpose of the Initial Public Offering of the Company’s shares on the Australian Securities
Exchange, the Company undertook a group restructure whereby LMPL’s ownership was transferred to
the Company on 5 July 2021 through the Company’s acquisition of all the issued shares of LMPL by the
issue of one (1) ordinary fully paid share for one (1) LMPL ordinary fully paid share.
As the business were controlled by the same party both before and after, in the opinion of the directors
the restructuring represents a business combination of entities under common control and therefore the
requirements of AASB 3 Business Combinations do not apply.
The consolidated financial report of the Group for the year ended 30 June 2022 has been presented as a
continuation of the business of LMPL. The comparative information presented in the financial statements
represents the financial position and financial performance of LMPL.
Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and
on other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes)
within the financial year are discussed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the Group based on known information. This consideration extends to the nature
of the products and services offered, customers, supply chain, staffing and geographic regions in which
the Group operates. There does not currently appear to be either any significant impact upon the
financial statements or any significant uncertainties with respect to events or conditions which may
impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus
(COVID-19) pandemic.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by using
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 40
Notes to the Financial Statements (continued)
Black-Scholes model taking into account the terms and conditions upon which the instruments were
granted. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the annual reporting period
but may impact profit or loss and equity. Refer to Note A6 for further information.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Group will commence
commercial production in the future, from which time the costs will be amortised in proportion to the
depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised. In addition, costs are only capitalised that are expected
to be recovered either through successful development or sale of the relevant mining interest. Factors
that could impact the future commercial production at the mine include the level of reserves and
resources, future technology changes, which could impact the cost of mining, future legal changes and
changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable
in the future, they will be written off in the period in which this determination is made.
Going Concern
During the financial year ended 30 June 2022, the Group incurred an operating loss of $2,072,546 (2021:
$855,307). After raising $5,801,500 (2021: $1,484,400) in equity through an Initial Public Offering and
incurring the aforementioned costs, the Group ended the financial year with a cash balance of $2,765,670
(2021: $752,817).
Based on the above evidence of successful fund raisings , available cash balance and taking into account
budgeted expenditure commitments, the Board has prepared these Financial Statements on a going
concern basis.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 41
Notes to the Financial Statements (continued)
Capital and Reserves
Share capital
Ordinary shares issued and
fully paid
Date
Number of
shares
Issue Price
per share
$
Balance
Issue of Shares for cash
Issue of Shares upon
conversion of options for cash
1 July 2020
27,110,002
210,502
1 April 2021
12,430,000
$0.10
1,243,000
30 April 2021
4,828,000
$0.005
24,140
Transfer from share-based
payment reserve
Less costs relating to share
issues
Balance
Issue of Shares for cash
17,258,000
30 April 2021
-
44,368,002
-
1,267,140
217,260
1,694,902
-
30 June 2021
44,368,002
1,694,902
5 July 2021
1,800,000
$0.10
180,000
Issue of Shares for cash (IPO)
Issue of Shares for cash (IPO)
31 August 2021
28,507,500
1 September 2021
500,000
$0.20
$0.20
46,168,002
Less costs relating to share
issues
Balance
29,007,500
75,175,502
-
30 June 2022
75,175,502
1,874,902
5,701,500
100,000
5,801,500
7,676,402
(476,022)
7,200,380
Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to
one vote per share at general meetings of the Company.
Ordinary shares have no par value.
No dividends have been declared or paid by the Company during or since the end of the financial year.
The Company’s Board may resolve that the whole or any portion of profits, reserve or other account
which is available for distribution, be distributed to shareholder in the same proportions in which they
would be entitled to receive it if distributed by way of dividend, or in accordance with relevant terms
of issue of any shares or securities.
If the Company is wound up, whether voluntarily or otherwise, the liquidator may divide among all or
any of the contributories, as the liquidator thinks fit, in specie or in kind, any part of the assets of the
Company, and may vest any part of the assets of the Company in trustees for the benefit of all or any
of the contributories as the liquidator thinks fit.
In the event of winding up of the Company, ordinary shareholders rank after creditors and are entitled
to any proceeds of liquidation.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 42
Notes to the Financial Statements (continued)
Options
Each option provides the right for the option holder to be issued one fully paid share by the Company,
upon payment of the exercise price of each option. The options do not entitle the holder to participate
in any share issue of the Company or any other body corporate.
During the year ended 30 June 2022 there were no shares issued on the exercise of unquoted options
(2021: 4,828,000). 4,850,000 unquoted options were granted during the year ended 30 June 2022
(2021: 4,828,000).
Details of options over ordinary shares in the Company that were granted, exercised, vested and
expired during the financial year are as follows:
Unquoted Options
Expiry dates
Exercise
Price
Options
outstanding
at 1 July
Options
granted
during the
period since
1 July
Options
exercised
during the
period since 1
July
Options
outstanding
at the date of
this report
Number
Number
Number
Number
30 June 2022
1 July 2025 to
28 April 2026
(LMPL)
7 September
2024 (Company)
22 June 2026
(Company)
30 June 2021
1 July 2025 to
28 April 2026
(LMPL)
$0.005
$0.30
$0.30
$0.005
-
-
-
-
-
-
-
1,100,000
3,750,000
4,850,000
-
-
-
-
-
1,100,000
3,750,000
4,850,000
4,828,000
(4,828,000)
4,828,000
(4,828,000)
-
-
Share based payments expense for the year ended 30 June 2022 totalled $506,063 (2021: $217,260).
Share-based payments included within transaction costs of issued capital for the year ended 30 June 2022
totalled $111,042 (2021: nil).
Share based payments expense
Equity settled share-based payments included within
transaction costs of issued capital
2022
$
506,063
111,042
617,105
2021
$
217,260
-
217,260
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 43
Notes to the Financial Statements (continued)
Share Based Payment Reserve
Balance at 1 July 2020
Equity settled share-based payments for the year
Options exercised during the year
Transfer to share capital
Balance at 30 June 2021
Balance at 1 July 2021
Equity settled share-based payments included within share-
based payment expenses
Equity settled share-based payments included within
transaction costs of issued capital
Balance at 30 June 2022
Unlisted Options
Number of Options
Granted
-
4,828,000
(4,828,000)
-
-
-
$
-
217,260
-
(217,260)
-
-
3,750,000
506,063
1,100,000
111,042
4,850,000
617,105
The fair value of the unlisted options was calculated at the date of grant using the Black Scholes option
pricing model and allocated to each reporting period evenly over the period from grant date to vesting
date. The value disclosed is the portion of the fair value of the options recognised as an expense in each
reporting period.
Expiry date
Entity
Fair value at grant date
Share price at grant date
Exercise price per option
Expected volatility (weighted average)
Risk free interest rate (based on
government bonds)
Dividend yield
Number of unlisted options
Total fair value at grant date
Remuneration:
Directors
Management and contractors
Joint Lead Managers
Year ended 30 June 2022
7 September
2024
Company
22 June 2026
Company
Year ended 30
June 2021
1 July 2025 to
28 April 2026
LMPL
$0.100948
$0.20
$0.30
95%
0.11%
0.00%
1,100,000
$111,042
$
-
-
111,042
-
111,042
$0.134950
$0.20
$0.30
99%
0.11%
0.00%
3,750,000
$506,063
$
472,325
33,738
-
-
506,063
$0.04500
$0.050
$0.005
50%
0.25%
0.00%
4,828,000
$217,260
$
42,546
174,714
-
217,260
The Group’s accounting policy for the treatment of equity-settled share-based payment arrangements
granted to employees
The grant-date fair value of equity-settled share-based payment arrangements granted to employees
and consultants is generally recognised as an expense, with a corresponding increase in equity, over the
vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of
awards for which the related service and non-market performance conditions are expected to be met,
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 44
Notes to the Financial Statements (continued)
such that the amount ultimately recognised is based on the number of awards that meet the related
service and non-market performance conditions at the vesting date. For share-based payment awards
with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect
such conditions and there is no true-up for differences between expected and actual outcomes.
Cash Flow Reconciliation
Cash flows from operating activities
Net loss attributable to members of the Company
Less: Non-cash expenditure
Depreciation
Options expensed
Plus / (Less) Changes in working capital:
Decrease in pre-payments and other receivables
Decrease in accounts payable and accruals
Increase in provision
Net cash used in operating activities
Prepayments and Other Receivables
2022
$
2,072,546
(30,441)
(506,063)
1,536,042
(42,120)
242,455
(19,073)
1,717,304
2021
$
855,307
(3,722)
(217,260)
634,325
84,755
(205,371)
(5,370)
508,339
Other receivables are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition they are stated at amortised cost less impairment losses (see Note
B3).
Prepayments are recognised at cost.
Current
GST receivable
Other receivable
Prepayments
2022
$
61,269
-
61,269
81,346
142,615
2021
$
51,866
240
52,106
152,628
204,734
Current Liabilities Trade and Other Payables
Trade and other payables are recognised initially at fair value plus directly attributable transaction
costs. Subsequent to initial recognition, these transactions are measured at amortised cost.
Current
Trade payables
Other payables
Legacy Minerals Holdings Limited share application
monies payable
Accruals
2022
$
130,256
54,655
-
184,911
45,170
230,081
2021
$
184,611
19,043
180,000
383,654
89,132
472,786
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 45
Notes to the Financial Statements (continued)
Employee Benefits
A provision is recognised in the statement of financial position when the Group has a present legal or
constructive obligation as a result of a past event, and it is probable that an outflow of economic
benefits will be required to settle the obligation. If the effect 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, when appropriate, the risks specific to the liability.
Employee Entitlements
Current
Annual Leave Provision
2022
$
2021
$
24,443
5,370
The Group’s accounting policy for the treatment of employee entitlements:
(a) Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
(b) Other long-term employee benefits
The Group's net obligation in respect of long-term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and prior periods.
That benefit is discounted to determine its present value. Remeasurements are recognised in
profit or loss in the period in which they arise.
(c) Termination benefits
Termination benefits are expensed at the earlier of when the Group can no longer withdraw the
offer of those benefits and when the Group recognises costs for a restructuring. If benefits are not
expected to be settled wholly within 12 months of the reporting date, then they are discounted.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.
Bank balances
Cash and cash equivalents in the statements of cash flows
2022
$
2,765,670
2,765,670
2021
$
752,817
752,817
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 46
Notes to the Financial Statements (continued)
Plant and Equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and
impairment losses (see Note B3).
Where parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items of property, plant and equipment.
Subsequent costs
The Group recognises in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when that cost is incurred if it is probable that the future economic
benefits embodied within the item will flow to the Group and the cost of the item can be measured
reliably. All other costs are recognised in the statement of profit or loss and other comprehensive
income as an expense as incurred.
Depreciation
Depreciation is charged to the statement of profit or loss and other comprehensive income on a
straight-line or diminishing value bases over the estimated useful lives of each part of an item of
property, plant and equipment and buildings. Land is not depreciated. The estimated useful lives in
the current financial year are as follows:
▪
Plant and equipment
Plant and Equipment consist of:
1 to 5 years
Cost
Balance 1 July
Additions
Balance at 30 June
Accumulated Depreciation
Balance 1 July
Depreciation expense
Balance at 30 June
Carrying amounts
At 1 July
At 30 June
2022
$
89,201
63,281
152,482
(3,722)
(30,441)
(34,163)
85,479
118,319
2021
$
1,363
87,838
89,201
-
(3,722)
(3,722)
1,363
85,479
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 47
Notes to the Financial Statements (continued)
Exploration and Evaluation Costs
Exploration and evaluation costs are stated at cost less accumulated amortisation and impairment
losses (see Note B3).
Cost
Balance 1 July
Additions
Balance at 30 June
Amortisation
Balance 1 July
Additions
Balance at 30 June
Carrying amounts
At 1 July
At 30 June
2022
$
175,585
1,794,831
1,970,416
-
-
-
2021
$
50,034
125,551
175,585
-
-
-
175,585
50,034
1,970,416
175,585
The Group’s accounting policy for the treatment of its exploration and evaluation costs is in accordance
with the following requirements.
Exploration and evaluation assets are measured at cost.
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as
exploration and evaluation assets on an area of interest basis. Costs incurred before the entity has
obtained the legal rights to explore an area are recognised in profit or loss. When a licence is
relinquished or a project abandoned, the related costs are recognised in the statement of
comprehensive income.
An exploration and evaluation asset is only recognised in relation to an area of interest if the following
conditions are satisfied:
(a)
(b)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
(i)
the exploration and evaluation expenditures are expected to be recouped through
successful development and exploitation of the area of interest, or alternatively, by its sale;
and
(ii) exploration and evaluation activities in the area of interest have not at the end of the
reporting period reached a stage which permits a reasonable assessment of the existence
or otherwise of economically recoverable reserves, and active and significant operations in,
or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine
technical feasibility and commercial viability and facts and circumstances suggest that the carrying
amount exceeds the recoverable amount. For the purpose of impairment testing, exploration and
evaluation assets are allocated to cash-generating units to which the exploration activity relates. The
cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area
of interest are demonstrable, exploration and evaluation assets attributable to that area of interest
are first tested for impairment and then reclassified from exploration and revaluation expenditure to
mining property and development assets within property, plant and equipment.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 48
Notes to the Financial Statements (continued)
Commitments
Exploration expenditure commitments
In order to maintain current rights of tenure to exploration tenements, the Group is required to
perform minimum exploration work to meet the minimum expenditure requirements specified by the
New South Wales Government. These obligations are subject to renegotiation when application for a
mining lease is made and at other times.
As at 30 June 2022, these obligations are not provided for in the financial report and are payable as
follows:
Within one year
One year or later and not later than five years
Later than five years
Segment Reporting
Exploration expenditure
commitments
2022
$
583,333
1,578,472
-
2,161,805
2021
$
360,000
2,010,000
250,000
2,620,000
An operating segment is a component of the Group that engages in business activities whose operating
results are reviewed regularly by the Company’s Board and for which discrete financial information is
available.
The Group is involved solely in mineral exploration within its 100% controlled Australian-based projects
in the Lachlan Fold Belt (LFB) NSW and thus has a single operating segment.
Business and geographical segments
The results and financial position of the Group’s single operating segment are prepared on a basis
consistent with Australian Accounting Standards and thus no additional disclosures in relation to the
revenues, profit or loss, assets and liabilities and other material items have been made. Entity-wide
disclosures in relation to the Group’s product and services and geographical areas are detailed below.
Products and services
The Group is involved solely in mineral exploration within its 100% controlled Australian-based projects
in the Lachlan Fold Belt (LFB) NSW and, as such, currently provides no products for sale.
Geographical areas
The Group’s exploration activities are located solely in Australia.
Contingencies
There are no contingent liabilities at 30 June 2022 (2021: $Nil)
Subsequent Events
No matters or circumstances have arisen since the end of the year which significantly affected, or
may significantly affect, the operations of the Group, the results of these operations or the Group’s
state of affairs in future financial years.
Section B – Risk and Judgement
B. This section outlines the key judgements, estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year. This section also outlines the significant financial risk the Group is exposed, to which the Directors
would like to draw the attention of the readers.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 49
Notes to the Financial Statements (continued)
Financial Risk Management
Overview
This Note presents information about the Group’s exposure to credit, liquidity and market risks, their
objectives, policies and processes for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk
management framework. Management monitors and manages the financial risks relating to the
operations of the Group through regular reviews of the risks.
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations.
Presently, the Group is in exploration phase, therefore does not earn revenue from sales and therefore
has no accounts receivables. At the reporting date, there were no significant credit risks in relation to
trade receivables.
Cash and cash equivalents
The Group limits its exposure to credit risk by only investing in liquid securities and only with
counterparties that have an acceptable credit rating.
Exposure to 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:
Current
Cash and cash equivalents
GST receivable
Other current assets
Note
A11
A8
Carrying Amount
2022
$
2021
$
2,765,670
61,269
20,000
2,846,939
752,817
51,866
240
804,923
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 50
Notes to the Financial Statements (continued)
Impairment losses
Neither past due nor impaired
Past due 1 – 30 days
Past due 31 – 90 days
Past due 91 + days
2021
$
-
-
-
-
-
Based on historic default rates, the Group believes that no impairment allowance is necessary in
respect of trade receivables not past due or past due by up to 30 days.
2022
$
-
-
-
-
-
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the
market and by continuously monitoring forecast and actual cash flows.
The decision on how the Group will raise future capital will depend on market conditions existing at
that time.
The following are the contractual maturities of financial liabilities, including estimated interest
payments and excluding the impact of netting agreements:
30 June 2022
Trade and other payables
30 June 2021
Trade and other payables
Note
Carrying
amount
$
Contractual
cash flows
$
6 months
or less
$
A9
230,081
230,081
230,081
A9
472,786
472,786
472,786
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
Currency risk
The Group is not exposed to currency risk and at the reporting date the Group holds no financial assets
or liabilities which are exposed to foreign currency risk.
Interest rate risk
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk
that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on
interest-bearing financial instruments. The Group does not use derivatives to mitigate these
exposures. The Group adopts a policy of ensuring that as far as possible it maintains excess cash and
cash equivalents in short terms deposit at interest rates maturing over three-month rolling periods.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 51
Notes to the Financial Statements (continued)
Profile
At the reporting date the interest rate profile of the Group’s and the Group’s interest-bearing financial
instruments was:
Variable rate instruments
Financial assets
Financial liabilities
Interest rate
2022
Carrying
amount
2022
$
Interest
rate
2021
-
-
2,928,285
(230,081)
2,698,204
-
-
-
Carrying
amount
2021
$
957,551
(472,786)
484,765
Fair value sensitivity analysis for fixed rate instruments
The Group does not have, and therefore does not account for any financial assets and liabilities at fair
value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect
profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the end of the reporting period would have
increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes
that all other variables, in particular foreign currency rates, remain constant.
Variable rate instruments
2021
$
-
-
2022
$
-
-
Profit or loss
100bp increase
100bp decrease
Capital and Reserves Management
The Group’s objectives when managing capital and reserves are to safeguard the Group’s ability to
continue as a going concern, so as to maintain a strong capital base sufficient to maintain future
exploration and development of its projects. In order to maintain or adjust the capital and reserve
structure, the Company may return capital to shareholders, issue new shares or sell assets to reduce
debt. The Group’s focus has been to raise sufficient funds through equity to fund exploration and
evaluation activities.
There were no changes in the Group’s approach to capital management during the period. Risk
management policies and procedures are established with regular monitoring and reporting.
The Group is not subject to externally imposed capital requirements.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 52
Notes to the Financial Statements (continued)
Fair value versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the
statement of financial position are as follows:
Note
2022
2021
Carrying
amount
Fair value
Carrying
amount
Fair value
$
$
$
$
A8
A11
61,269
20,000
2,765,670
2,846,939
61,269
20,000
2,765,670
2,846,939
52,106
-
752,817
804,923
52,106
-
752,817
804,923
A9
230,081
230,081
472,786
472,786
Assets carried at amortised
costs
Other receivables
Other current assets
Cash and cash equivalents
Liabilities carried at
amortised cost
Trade and other payables
Impairment
The carrying amounts of the Group’s assets other than deferred tax assets (see Note D2), are reviewed
at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, the asset’s recoverable amount is estimated (see below).
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable
amount. Impairment losses are recognised in the statement of profit or loss and other comprehensive
income unless the asset has been re-valued previously in which case the impairment loss is recognised
as a reversal to the extent of the previous revaluation with any excess recognised through the
statement of profit or loss and other comprehensive income.
Impairment losses recognised in respect of cash generating units are allocated first to reduce the
carrying amount of any goodwill allocated to the cash generating unit (group of units) and then, to
reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
Calculation of recoverable amount
The recoverable amount of other assets is the greater of their 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. 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.
Reversals of impairment
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 53
Notes to the Financial Statements (continued)
Section C – Key Management Personnel and Related Party Disclosures
C. This section includes information about key management personnel’s remunerations, related parties
information and any transactions key management personnel or related parties may have had with the
Group during the period.
Key Management Personnel Expenses
Short-time employee benefits
Share based payments
Post-employment benefits
2022
$
607,328
506,063
35,384
1,148,775
2021
$
158,593
42,546
4,722
205,861
The Group entered into a consultancy agreement with GeoInsite Pty Ltd (GeoInsite), a company
controlled by Director Douglas Menzies, under which GeoInsite provides geologist services to the Group
(GeoInsite Consultancy Agreement).
Under the GeoInsite Consultancy Agreement, GeoInsite’s professional fees are $1,300 per day (net of
local taxes or plus GST) or $140/hour (plus GST). The GeoInsite Consultancy Agreement does not identify
a term.
The GeoInsite Consultancy Agreement otherwise contains provisions considered standard for an
agreement of its nature.
During the year ended 30 June 2022 there were no fees paid under the GeoInsite Consultancy
Agreement (2021: $10,983). At 30 June 2022 there were no fees payable under the GeoInsite
Consultancy Agreement (2021: $1,040)
Apart from the details disclosed in this Note, no Director has entered into a material contract with the
Group during the financial year and there were no material contracts involving Directors’ interests
existing at period-end.
Directors’ transactions with the Company or its controlled entities
Aggregate amounts payable to Directors and their Director related entities for unpaid Directors’ fees,
statutory superannuation owed to each Director’s superannuation fund, and consulting fees at the
reporting date were as follows:
Accounts Payable - current
Directors’ fees payable
2022
$
2021
$
-
1,040
The terms and conditions of the transactions with Directors or their Director related entities, outlined
above, were no more favourable than those available, or which might reasonably be expected to be
available, on similar transactions to non-Director-related entities on an arm’s length basis.
Related Party Disclosures
There were no related party transactions during the year other than transactions with key management
personnel as part of their remuneration.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 54
Notes to the Financial Statements (continued)
Section D – Other Disclosures
D. This section includes information that the Directors do not consider to be significant in understanding
the financial performance and position of the Group but must be disclosed to comply with the Accounting
Standards, the Corporations Act 2001 (Cth) or the Corporations Regulations.Administration Expenses
Audit Fees
Community Engagement Expenses
Corporate Advisory
Director & Secretary Fees (Non-salary)
Legal Expenses
Listing Fees
Other
Professional Fees
Subscriptions & Memberships
Training & Conferences
Income Tax
2022
$
2021
$
81,614
-
299,862
253,483
82,126
109,794
329,790
7,924
41,990
22,905
45,000
20,586
100,960
123,459
135,912
5,000
87,160
30,485
8,688
10,362
1,229,488
567,612
Income tax is recognised in the statement of profit or loss and other comprehensive income except to
the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous
periods.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following
temporary differences are not provided for: goodwill, the initial recognition of assets and liabilities that
affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the
extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided
is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantively enacted at the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised. Deferred tax assets recorded at each reporting date are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Current tax expense/ income, deferred tax liabilities and deferred tax assets arising from temporary
differences are recognised in the financial statements of the Group.
The Group recognises deferred tax assets arising from unused tax losses to the extent that it is probable
that future taxable profits of the Group will be available against which the asset can be utilised.
Any subsequent period adjustments to deferred tax assets arising from unused tax losses as a result of
revised assessments of the probability of recoverability is recognised by the Group.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 55
Notes to the Financial Statements (continued)
Numerical reconciliation between tax benefit and pre-tax net loss
Loss after interest and before income tax
Prima facie Income tax benefit at a tax rate of 25.0% (2021 26.0%)
Permanent difference options expense
Temporary differences not brought to account
Decrease in income tax benefit due to:
Income tax losses not recognised
Income tax benefit on pre-tax net loss
Temporary differences not brought to account
Deferred Tax Liability
Deferred Tax Asset
Unrecognised deferred tax assets
Revenue tax losses (not tax effected)
2022
$
2,072,546
518,137
2021
$
855,307
222,380
(126,516)
(56,488)
391,162
(13,090)
(782,783)
(152,802)
-
-
387,293
65,398
3,869
(78,488)
391,162
(13,090)
3,789,237
616,836
The tax losses do not expire under current legislation though these losses are subject to testing under
loss recoupment rules in order for them to be utilised. Deferred tax assets have not been recognised in
respect of this item because, at this time, it is not probable that future taxable profit will be available
against which the benefits can be offset.
At 30 June 2022, the Group had no franking credits available for use in subsequent reporting periods
(2021: Nil).
Loss Per Share
Basic earnings per share (EPS) is calculated by dividing the net profit or loss attributable to members of
the Company for the financial year, after excluding any costs of servicing equity (other than ordinary
shares and converting preference shares classified as ordinary shares for EPS calculation purposes), by
the weighted average number of ordinary shares of the Company, adjusted for any bonus issue. Diluted
EPS is calculated by dividing the basic EPS earnings, adjusted by the after-tax effect of financial costs
associated with dilutive ordinary shares and the effect on revenues and expenses of conversion to
ordinary shares associated with dilutive potential ordinary shares, by the weighted average number of
ordinary and dilutive potential ordinary shares adjusted for any bonus issue.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 56
Notes to the Financial Statements (continued)
The calculation of basic and diluted losses per share for the year ended 30 June 2022 was based on the
net loss attributable to ordinary shareholders of $2,072,546 (2021: $855,307) and a weighted average
number of ordinary shares outstanding during the year ended 30 June 2022 of 70,222,173 (2021:
30,981,805), calculated as follows:
Net loss attributable to members of the Company
Weighted average number of ordinary shares
Undiluted Number of Shares
Issued ordinary shares at 1 July
Effect of shares issued 1 April 2021
Effect of shares issued 30 April 2021
Cash placement - 5 July 2021
Cash placement (IPO) - 31 August 2021
Cash placement (IPO) - 1 September 2021
Weighted average number of ordinary shares used in calculating
basic and diluted loss per share
Loss per share – basic
Loss per share – diluted
2022
$
2021
$
2,072,546
855,307
Number
44,368,002
-
-
1,775,342
23,665,130
413,699
Number
27,110,002
3,064,932
806,871
-
-
-
70,222,173
30,981,805
Cents
2.95
2.95
Cents
2.76
2.76
4,570,137 (2021: 50,708,430) potential shares were excluded from the calculation of diluted earnings per
share because they are antidilutive for the year ended 30 June 2022 as the Group is in a loss position.
Consolidated Entities
Country of
incorporation
Ownership
interest
2022
%
Ownership
interest
2021
%
Parent entity
Legacy Minerals Holdings Limited
Subsidiaries
Legacy Minerals Pty Ltd
In the financial statements of the Company, investments in controlled entities and associates are
measured at cost and included with other financial assets.
Australia
Australia
100
100
-
-
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 57
Notes to the Financial Statements (continued)
Parent Entity Disclosures
The Group has applied amendments to the Corporations Act 2001 (Cth) that remove the requirements
for the Group to lodge parent entity financial statements. Parent entity financial statements have been
replaced by the following specific parent entity disclosure.
As at, and throughout, the financial year ended 30 June 2022 the parent company of the Group was
Legacy Minerals Holdings Limited.
Results of the parent entity
Net loss attributable to members of the parent
Other comprehensive income, net of income tax
Total comprehensive income
Financial position of parent entity at period end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Total equity of the parent entity comprising of:
Share capital
Reserve
Accumulated Losses
Total Equity
Parent entity capital commitments
2022
$
2,072,546
-
2,072,546
2021
$
855,307
-
855,307
30 June 2022
30 June 2021
2,928,284
2,186,735
5,115,019
957,5511
331,064
1,288,615
254,525
478,156
-
254,525
4,860,495
7,200,380
617,105
(2,956,989)
4,860,495
-
478,156
810,459
1,694,902
-
(884,443)
810,459
The parent entity has no commitments at 30 June 2022 (2021: Nil).
Contingencies
The parent entity has no contingencies at 30 June 2022 (2021: Nil).
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 58
Notes to the Financial Statements (continued)
Auditor’s Remuneration
Auditor of the Group - BDO Audit Pty Ltd
Audit of Legacy Minerals Holdings
Limited for the year ended 30 June 2022
Review of Legacy Minerals Holdings
Limited for the half year 31 December
2021
Audit of Legacy Minerals Pty Ltd for the
years ended 30 June 2019 and 30 June
2020, and half year ended 31 December
2020
Audit of Legacy Minerals Pty Ltd and
Legacy Minerals Holdings Limited for the
year ended 30 June 2021
Independent Limited Assurance Report
Tax due diligence
2022
$
44,038
37,576
-
-
81,614
-
-
81,614
2021
$
-
-
60,014
45,000
105,014
40,157
24,500
169,671
Financing Income and Expenses
Interest income is recognised as it accrues taking into account the effective yield on the financial asset.
Finance expenses comprise interest expense on borrowings. Borrowing costs that are not directly
attributable to the acquisition, construction or production of a qualifying asset are recognised in profit
or loss using the effective interest method.
GST
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the taxation authority. 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.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash
flows arising from investing and financing activities which are recoverable from, or payable to, the ATO
are classified as operating cash flows.
New Accounting Standards
A number of new standards, amendments to, or interpretations of standards are effective for annual
periods beginning 1 January 2021. These new standards and amendments have been applied in
preparing these financial statements and none of them have had a significant effect on the financial
statements of the Group.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 59
Notes to the Financial Statements (continued)
This table lists the recent changes to the Standards that are required to be applied for 30 June 2022 year
ends:
New pronouncements that must be applied for 30 June 2022 year-ends
Effective date7
AASB 2020-8 Amendments to AASs – Interest Rate Benchmark Reform –
Phase 2
AASB 2021-3 Amendments to AASs – COVID-19-Related Rent
Concessions beyond 30 June 2021
1 January 2021
1 April 2021
1 July 2021
1 July 2021
1 July 2021
1 July 2021
1 July 2021
30 June 20228
30 June 20229
1 January 2022
AASB 1060 General Purpose Financial Statements – Simplified Disclosures
for For-Profit and Not- for-Profit Tier 2 Entities
AASB 2020-2 Amendments to AASs – Removal of Special Purpose
Financial Statements for Certain For-Profit Private Sector Entities
AASB 2020-7 Amendments to AASs – COVID-19-Related Rent Concessions:
Tier 2 Disclosures
AASB 2020-9 Amendments to AASs – Tier 2 Disclosures: Interest Rate
Benchmark Reform (Phase 2) and Other Amendments
AASB 2021-1 Amendments to AASs – Transition to Tier 2: Simplified
Disclosures for Not-for- Profit Entities
AASB 2022-2 Amendments to AASs – Extending Transition Relief under
AASB 1
AASB 2022-4 Amendments to AASs – Disclosures in Special Purpose
Financial Statements (SPFS) of Certain For-Profit Private Sector Entities
AASB 2020-3 Amendments to AASs – Annual Improvements 2018–2020
and Other Amendments
► Amendment to AASB 1, Subsidiary as a First-time Adopter
► Amendments to AASB 3, Reference to the Conceptual Framework
► Amendment to AASB 9, Fees in the ‘10 per cent’ Test for Derecognition of
Financial Liabilities
► Amendments to AASB 116, Property, Plant and Equipment: Proceeds
before Intended Use
► Amendments to AASB 137, Onerous Contracts – Cost of Fulfilling a
Contract
► Amendment to AASB 141, Taxation in Fair Value Measurements
AASB 2021-7 Amendments to AASs – Effective Date of Amendments to
AASB 10 and AASB 128 and Editorial Corrections
1 January 2022
AASB 2022-3 Amendments to AASs – Illustrative Examples for Not-for-Profit
Entities accompanying AASB 15
1 July 2022
AASB 17 Insurance Contracts
AASB 2020-1 Amendments to AASs – Classification of Liabilities as Current or
Non-current
1 January 2023
1 January 2023
1 January 2023
7 Effective for annual reporting periods beginning on or after this date, unless separately noted.
8 Effective for annual reporting periods ending on or after this date.
9 Effective for annual reporting periods ending on or after this date.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 60
Notes to the Financial Statements (continued)
New pronouncements that must be applied for 30 June 2022 year-ends
Effective date7
AASB 2021-2 Amendments to AASs – Disclosure of Accounting Policies and
Definition of Accounting Estimates
► Amendments to AASB 7, AASB 101, AASB 134 and AASB Practice
Statement 2
► Amendments to AASB 108
AASB 2021-5 Amendments to AASs – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
AASB 2021-6 Amendments to AASs – Disclosure of Accounting Policies:
Tier 2 and Other Australian Accounting Standards
AASB 2022-1 Amendments to AASs – Initial Application of AASB 17 and
AASB 9 – Comparative Information
AASB 2014-10 Amendments to AASs – Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture
1 January 2023
1 January 2023
1 January 2023
1 January 2025
The Group has adopted all the above new and revised Standards and Interpretations issued by the
Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for
the current year ended 30 June 2022. The new and revised Standards and Interpretations did not have
any significant impact.
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 61
Directors’ Declaration
1.
In the opinion of the Directors of Legacy Minerals Holdings Limited (“the Company”):
(a)
the Company’s financial statements and notes that are set out on pages 35 to 61 and the
Remuneration Report on pages 24 to 32 in the Directors’ Report, are in accordance with the
Corporations Act 2001 (Cth), including:
(i) giving a true and fair view of the Company’s financial position as at 30 June 2022 and of its
performance for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001 and
other mandatory professional reporting requirements; 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.
2.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001
(Cth).
Signed in accordance with a resolution of the Directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
David Carland
Chairman
Sydney
30 September 2022
Legacy Minerals Holdings Limited Annual Report 30 June 2022
Page 62
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
DECLARATION OF INDEPENDENCE BY GARETH FEW TO THE DIRECTORS OF LEGACY MINERALS
HOLDINGS LIMITED
As lead auditor of Legacy Minerals Holdings Limited for the year ended 30 June 2022, I declare that, to
the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Legacy Minerals Holdings Limited and the entities it controlled during
the period.
Gareth Few
Director
BDO Audit Pty Ltd
Sydney
30 September 2022
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members
of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Legacy Minerals Holdings Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Legacy Minerals Holdings Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30
June 2022, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year
then ended, and notes to the financial report, including a summary of significant accounting policies
and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
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 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 confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of
BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member
firms. Liability limited by a scheme approved under Professional Standards Legislation.
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 period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Carrying Value of Exploration and Evaluation Assets
Key audit matter
How the matter was addressed in our audit
Exploration and evaluation assets
are a key audit matter due to:
The significance of the
exploration and evaluation
activities to the Group’s business
and the carrying value of these
assets, being the largest group of
assets on the balance sheet; and
The significance of management’s
estimates and assumptions
regarding the recoverability of
carrying values in accordance
with AASB 6.
Details of the exploration and
evaluation assets are disclosed in
Note A13.
To address the key audit matter, our audit procedures included:
·
·
·
·
·
·
Evaluating the Group’s accounting policy to recognise
exploration and evaluation assets using the criteria
described in AASB 6;
Testing a sample of the Group’s additions to areas of
interest for the year and agreeing additions to
underlying records;
Ensuring that all expenditure capitalised to exploration
and evaluation assets during the year meets the
recognition criteria as described in AASB 6;
Considering, whether facts or circumstances exist which
indicate impairment of Exploration and Evaluation
assets. This included a review of:
o Tenement licenses for evidence of expiration or
soon to expire without expectation to renew;
and
o Analysing management’s assessment of the
recoverability of these assets through
successful development and exploitation of the
areas of interest, or by their sale, by evaluating
the Group’s documentation of planned
activities including tenement expenditure
commitments as per the approved work
programs issued by the NSW Department of
Industry, Resources and Energy;
Evaluating internal budgets and cash flow projections
for consistency with management’s stated intentions
for continuing exploration and evaluation activities in
the areas of interest and critically assessing feasibility
of these intentions with regard to available cash;
Assessing the adequacy of the company’s disclosures in
Note A13 in respect of exploration costs in the financial
report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
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 ability of the group to
continue as a going concern, disclosing, as applicable, matters related 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 has 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 further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the director’s report under the heading
‘Remuneration Report’ for the year ended 30 June 2022.
In our opinion, the Remuneration Report of Legacy Minerals Holdings Limited, for the year ended 30
June 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.
BDO Audit Pty Ltd
Gareth Few
Director
Sydney, 30 September 2022
Additional Shareholder Information
Shares
Subject to the Company’s constitution, the of the Corporations Act 2001 (Cth) (Act) and the ASX Listing Rules, and to
any rights or restrictions attaching to any class of securities, at a meeting of the Company’s members:
(a) on a show of hands, each member has one vote;
(b) on a poll, each member has:
(i) for each fully paid share held by the member as at the time referred to section 250L(4) of the Act, one vote;
and
(ii) for each partly-paid Share held by the Member as at the time referred to section 250L(4) of the Act, a
fraction of a vote equivalent to the proportion which the amount paid (not credited nor paid in advance of a
Call) is of the total amounts paid and payable (excluding amounts credited) for the Share.
At 27 September 2022, issued capital was 75,175,502 ordinary fully paid shares held by 623 holders:
Class of shares
Quoted ordinary fully paid shares
Unquoted ordinary fully paid shares
Total
If escrowed, end of escrow period
Not applicable
13 September 2023 (ASX escrow)
Number of Shares
45,790,802
29,384,700
75,175,502
20 Largest Holders by Name of Ordinary Shares and their Share Holdings at 27 September 2022:
Rank Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
C & A BYRNE PTY LIMITED
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