ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
1
Metallica Minerals Annual Report 2021 CORPORATE
DIRECTORY
As at 30 September 2021
DIRECTORS
LEGAL
Theo Psaros, Executive Chairman
Colin Biggers & Paisley
Brad Sampson, Non-Executive Director
Mark Bojanjac, Non-Executive Director
Level 35, 1 Eagle Street
Brisbane QLD 4000
+61 7 3002 8700
STOCK EXCHANGE LISTING
ASX: MLM
AUSTRALIAN BUSINESS NUMBER
ABN 45 076 696 092
SUBSIDIARY COMPANIES
Lucky Break Operations
ACN: 126 272 580
Phoenix Lime Pty Ltd
ACN: 096 355 761
Cape Flattery Silica Pty Ltd
ACN: 138 608 894
(Previously Scandium Pty Ltd)
Touchstone Resources Pty Ltd
ACN: 126 306 018
Greenvale Operations Pty Ltd
ACN: 139 136 708
NORNICO Pty Ltd
ACN: 065 384 045
PGE Minerals Pty Ltd
ACN: 642 538 805
MANAGEMENT
Scott Waddell, Chief Financial Officer and
Company Secretary
Nicholas Villa, General Manager Cape Flattery Silica
PRINCIPAL REGISTERED OFFICE IN
AUSTRALIA
Level 1, North Tower, 527 Gregory Terrace, Fortitude
Valley QLD 4006
+ 61 7 3249 3000
admin@metallicaminerals.com.au
WEBSITE
www.metallicaminerals.com.au
SHARE REGISTRY
Link Market Services
Level 21, 10 Eagle Street
Brisbane QLD 4000
+61 7 3320 2200
AUDITOR
Moore Australia
Level 12, 10 Eagle Street
Brisbane QLD 4000
+61 7 3340 3800
2
Metallica Minerals Annual Report 2021 Metallica Minerals
Limited is an
Australian resource
development
company, focused
on becoming a Silica
Sands producer.
3
Metallica Minerals Annual Report 2021 Metallica Minerals Annual Report 2021
KEY EVENTS
AUGUST 2021
Scoping Study
completed
JULY/AUGUST
2021
98 hole drill program
completed
JUNE 2021
JUNE 2021
Excellent
Metallurgical test
results received for
the Cape Flattery
Silica Project
Mining Lease
application lodged
for Cape Flattery
Silica Project
JUNE 2021
MAY 2021
APRIL 2021
MARCH 2021
Nicholas Villa
appointed as
General Manager,
Cape Flattery Silica
Sand Project
Brad Sampson
and Mark Bojanjac
appointed to the
Board of Directors
Renounceable
Rights Issue to
raise up to $4.9m
was completed and
due to significant
demand for
the shortfall, an
additional $2.1m of
oversubscriptions
were accepted
resulting in a total
raise of $7.0m
Key Cultural Heritage
Agreements signed
with both Aboriginal
Corporations to
enable a cultural
heritage survey for a
closer-spaced step-
out and in-fill grid
drilling
4
Metallica Minerals Annual Report 2021
MARCH 2021
MARCH 2021
DECEMBER 2020
Resource upgrade
to 38Mt Silica Sand
resource at Cape
Flattery Silica Sands
Project
Water monitoring
bores completed
Maiden 20 hole drill
program completed
NOVEMBER 2020
NOVEMBER 2020
Maiden Inferred
Resource November
2020 released for
Cape Flattery Silica
Sands Project
Conduct &
Compensation
Agreement signed
by Hopevale
Congress
5
Dear Metallica shareholders
I would like to take this opportunity to present Metallica’s Annual Report for the financial year 2021, a year that
has seen significant progress made on the Cape Flattery Silica Sand Project (CFS) and further changes to the
structure of our Board and Management team.
While the COVID-19 pandemic posed challenges to how we progress the continued development of the CFS
Project, we continued to make advancements towards delivery of our corporate strategy.
Australia’s silica sand is set to play a critical role in the global transition to a low-carbon economy, calling for
the accelerated development of high-purity sources of this sought-after mineral.
According to IMARC, the global silica sands market could grow from US$8 billion in 2019 to US$20 billion in
2024. Research shows just one kilogram of polysilicon — a refined material made from Silica — saves more than
7,000 kilograms of C02 emissions during the lifetime of a solar panel, and increasing the development of solar
panels could reduce C02 emissions by 21 per cent by 2050. Solar power technologies could cover a quarter of the
global electricity needs by mid-century — becoming the second largest generation source after wind.
Global interest in reducing carbon emissions has resulted in a significant demand for solar power installations
and is expected to translate into extensive use of high-purity silica sand. The Asia Pacific region accounts for
47 per cent of global demand for silica sand and it has seen a boom in solar panel sales around the world as
countries move toward green and zero-emissions economies.
High-purity silica sand is used in the production of not only solar panels, but also flat glass, container glass,
fibre optics, LCD panels, LED lights and even medical vials used to store vaccines — an essential item only
required further due to our current climate.
Metallica Minerals’ silica sand project situated at Cape Flattery, Queensland is globally-recognised for its high
purity silica sand and superior location — home to one of the most prolific silica sand mines in the world. We
are positioning your company to take advantage of the increasing demand for high-purity silica sand.
Importantly, silica sand is extracted and collected using simple earthmoving methods that minimise land
disturbance and involve progressive rehabilitation that ensures mined land has a timely restoration of the
landscape. As demand increases for our sustainable, superior and sought-after silica sand, Metallica Minerals is
keen to play its part in the global green economy.
We continue to work closely on our positive relationships with the two Native Title holders, Hopevale Congress
Aboriginal Corporation RNTBC Trustee, on behalf of the Nguurruumungu Clan, and Walmbaar Aboriginal
Corporation, on behalf of the Dingaal Clan.
In August 2021, we successfully completed a Scoping Study for the Cape Flattery Silica Project. The Scoping
Study has given the Board the confidence to progress towards a Pre-Feasibility Study, which is now underway.
We have also had a number of changes to our Board and Management team, with Messrs Andrew Gillies and
Scott Waddell having resigned from the Board, and Mr Nicholas Villa joining the Company as General Manager of
the Cape Flattery Project. Messrs Brad Sampson and Mark Bojanjac joined our Board in May 2021 and between
the two of them, bring significant global mine development experience. These changes are aligned with our
succession planning announced last year and position our team to deliver on our project and company goals.
Pleasingly, Metallica ended the year with approximately $7.5 million cash in the bank and no debt.
On behalf of my fellow Directors I would like to thank you again for your continued support. We have your
company well placed to deliver growth and opportunity for all shareholders. I also wish to acknowledge the
effort of our small team of staff and consultants who have continued to provide the company with professional
support during the year.
Yours faithfully
Theo Psaros
Executive Chairman
6
Metallica Minerals Annual Report 2021 Metallica Minerals Annual Report 2021
7
CAPE FLATTERY
SILICA SANDS
MLM INTEREST 100% THROUGH SUBSIDIARY
CAPE FLATTERY SILICA PTY LTD
36KM2 – EXPLORATION TENURE EPM 25734
SILICA SANDS – BULK EXPORT
NATIVE TITLE
The Cape Flattery Silica Sands project is located
on the eastern coastline of Cape York Peninsula
and approximately 220 km north of Cairns in North
Queensland. The project is adjacent to the world
class Cape Flattery Silica Sands mining and shipping
operation owned by Mitsubishi.
Importantly, the Project is located adjacent within the
Cape Flattery Port area. The Cape Flattery Port area
is owned and operated by Ports North, a Queensland
Government-owned corporation. Ports North is the
owner of the jetty leased by Mitsubishi, which is
located in the Cape Flattery Port area, just south of
the Project’s tenement. The ship-loading equipment
on the jetty is primarily owned by Mitsubishi.
MINING LEASE APPLICATION
On 20 May 2021, Metallica lodged a Mining Lease
Application (MLA) with the Queensland Department
of Resources. The MLA covers 616.1 ha and has been
applied for a term of 25 years. The future Mining
Lease (MLA 100284) will include the Project’s
resource area, potential water bore sites and access
from a gazetted road.
ENVIRONMENTAL
In April 2021 five water monitoring bores were
installed within the main project area. A Cultural
Clearance with Hopevale Congress Aboriginal
Corporation and Walmbaar Aboriginal Corporation
was completed prior to this work being undertaken.
The purpose of the water monitoring bore
installation is to analyse the existing water table that
lies within the planned development area and the
potential impact, if any, on the existing aquifers.
Wet season flora and fauna environmental study
was completed, this included a baseline ecological
assessment.
8
A Conduct and Compensation Agreement (CCA)
was executed with Hopevale Congress Aboriginal
Corporation on 26 November 2020 for exploration
and drilling along pre-existing access tracks. At that
time, Metallica had not yet conducted an extensive
Aboriginal Heritage clearance survey on the resource
area, so all drill lines used in that program were
confined to existing and pre-existing tracks. All lines
were walked and no sites of significance were noted.
On 31 March 2021, Metallica announced that
Aboriginal Cultural Heritage Agreements (ACHAs)
had been signed with Hopevale Congress Aboriginal
Corporation (as agent for the Nguurruumungu Clan)
and Walmbaar Aboriginal Corporation (as agent for
the Dingaal Clan) (Figure 2). The ACHAs provided
Metallica with a process that allowed drilling to
occur off the existing tracks within EPM 25734 in
July/August 2021. Cultural heritage clearance was
completed prior to installation of water monitoring
bores in April 2021.
RESOURCE
Over the past 24 months, Metallica has completed
one hand-auger program and two drilling programs
in the target eastern area on EPM 25734. The
exploration results indicated an area which hosts a
significant amount of high-grade (+99%) silica sand,
which is referred to as the Project area.
In April 2021, Metallica engaged Ausrocks Pty Ltd
(Ausrocks) to complete a silica Mineral Resource
Estimate (MRE) for the Project. Ausrocks is a
Brisbane-based resources consultancy with
expertise in industrial minerals and quarrying.
Ausrocks determined that the exploration program
to date had obtained sufficient information to enable
estimation of an Indicated and Inferred MRE for the
Metallica Minerals Annual Report 2021 Figure 1: Cape Flattery Port location and Project proximity
Figure 2: Signing of Aboriginal Cultural Heritage Agreements (ACHAs) by Walmbaar Aboriginal Corporation
Chairman, Shailand Deeral-Rosendale and directors, Pauline McLean and Travis Bally, with Metallica Minerals’
Executive Chairman, Theo Psaros
9
Metallica Minerals Annual Report 2021 Project. Ausrocks reviewed all the Project laboratory test work data that Metallica provided to ensure only valid
and relevant data was used for the MRE.
The Mineral Resource model that Ausrocks has developed for the Project is referenced in the MLM ASX
Release: 3 March 2021 ‘Revised 38 Mt of High Purity Silica Sand Resource’. The block model’s development was
based on data from 22 vacuum drill holes and 3 hand-auger holes as inputs to the Mineral Resource model,
with a total of 391 samples used in the MRE.
Table 1: Mineral Resource Estimate for the Project Area
Classification
Indicated Resource
Inferred Resource
TOTAL
Silica sand
Mt
Silica sand
Mm3
Density
t/m3
SiO2
%
Al2O3
%
Fe2O3
%
TiO2
%
5.4
32.9
38.3
3.4
20.5
23.9
1.6
1.6
1.6
99.1
99.0
99.0
0.04
0.07
0.06
0.09
0.12
0.12
0.13
0.15
0.15
LOI
%
0.13
0.11
0.12
For further details, refer to ASX Release: 3 March 2021 ‘Revised 38 Mt of High Purity Silica Sand Resource’.
The Mineral Resource Estimate has been reported in accordance with the JORC Code 2012. A cut-off grade 98.5% has been defined based on the
surrounding data. These results show there is good potential to produce a premium grade silica product using standard processing techniques.
METALLURGICAL TESTING
In early 2021, Metallica provided IHC Robbins Pty Ltd (IHC Robbins) with drill hole samples from the December
2020 drilling program to generate an approximate 2-tonne representative sample of life-of-mine material, as
defined by the Project’s resource model. The metallurgical testing was completed at IHC Robbins’s Brisbane
laboratory. As announced in the ASX Release: 3 March 2021 ‘Revised 38 Mt of High Purity Silica Sand Resource’,
the 2-tonne metallurgical test work sample was derived from drill samples from within the Project’s resource area
that had an average silica content of greater than 98.5% SiO2. Using gravity upgrading, magnetic separation and
particle classification methods, typical to silica sands refining, a product was produced that contained:
» between 99.8% and 99.9% SiO2
» 450 ppm Al2O3
» 170 ppm Fe2O3
» 210 ppm TiO2
» 2.6% -125 µm particles
The head feed sample was composed of 1.7% slimes and negligible oversize mass. The -2.0-millimetre, -63-micron
sand fraction represented 98.2% of the as-received drill sample mass (Figure 11) and was assayed at:
» 99.7% SiO2
» 800 ppm Al2O3
» 885 ppm Fe2O3
» 1,290 ppm TiO2
» 0.07% organics (LOI 1000)
The material chosen for metallurgical testing was readily screened and deslimed by a typical silica sands feed
preparation process to remove the +2.0-millimetre particles, -63-micron fines and organic content. Flocculent
and coagulant were required to achieve an acceptable slimes settling rate and supernatant process water clarity.
The heavy minerals (HMs) were effectively removed by a simple 2-stage spiral separation circuit. Particle
attritioning showed evidence of improving product grade via the removal of iron-bearing surface coatings on
the quartz grains. Magnetic separation successfully removed additional magnetic and paramagnetic particles,
further improving product grade. Up-current classification was successful in selectively rejecting undesirable
fine particles while maintaining a high mass yield. The final product achieved a mass yield of 77.4% and its
assay results are shown in Table 3 (as referred to in ASX Release: 22 June 2021 ‘Excellent Metallurgical Test
Results on Cape Flattery Silica Sand’).
10
Metallica Minerals Annual Report 2021 Table 2: Final Product Assays
SiO2
%
Al2O3
ppm
Fe2O3
ppm
TiO2
ppm
Cr2O3
ppm
CaO
ppm
K2O
ppm
MgO
ppm
MnO
ppm
Na2O
ppm
P2O5
ppm
V2O5
ppm
ZrO2
ppm
LOI
1000
%
99.8
450
170
210
3
50
30
20
0
20
10
0
30
0.05
IHC Robbins also identified other potential products from earlier process streams and these would require less
refining and generate a higher mass yield, as shown in Table 3.
Table 3: Other Potential Products Identified
Potential product
options
Mass yield
%
Feed preparation sand
Spiral product
97.6
84.0
SiO2
%
99.7
99.9
Assay
Al2O3
ppm
715
500
Fe2O3
ppm
760
240
TiO2
ppm
1,225
260
The metallurgical report also recommended that further product grade scoping test work and market
investigations be completed in order to realise the full potential and therefore value of the Cape Flattery material.
PARTICLE SIZE RESULTS
Photomicrographs of the up-current classifier (UCC) underflow product (Figure 3) shows that very few
discrete/liberated contaminant particles remain in the sample and that the quartz grains appear, by majority,
free of surface coatings or inclusions. A summary metallurgical balance, based on outflow mass and Inductively
Coupled Plasma (ICP) method assay data, is listed in Table 4.
Field of view = 21mm
Field of view = 8.5mm
Field of view = 3.3mm
Figure 3: UCC underflow product photomicrographs
11
Metallica Minerals Annual Report 2021 Table 4: Inductively Couple Plasma (ICP) Assay Results
Summary
Mass
tph
Mass
yield
%
SiO2
%
Al2O3
ppm
Assay
Fe2O3
ppm
TiO2
ppm
LOI
1000
%
Approximate Distributions
SiO2
%
Al2O3
%
Fe2O3
%
TiO2
%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Feed
preparation
oversize
Feed
preparation
slimes
Spiral
concentrate
Attritioning
slimes
WHIMS mag
UCC fines
0.1
0.1
5.6
2.3
2.3
4.2
9.5
1.0
1.7
3.9
UCC product
ROM
187.2
241.7
77.4
100.0
32.9
13.6
98.6
1884
3613
6318
0.10
13.9
38.3
71.6
78.5
0.0
0.0
0.0
0.0
99.0
99.8
99.8
96.3
2380
3015
3400
615
450
670
290
170
686
360
210
1094
0.09
0.09
0.05
0.06
1.8
4.1
6.1
3.6
7.6
1.7
5.4
1.3
80.2
52.0
19.2
14.9
100.0 100.0
100.0
100.0
As can be seen above, producing a final product via the as-developed process with a mass yield of 77.4% can
result in a product grade of 99.8% SiO2, 450 ppm Al2O3, 170 ppm Fe2O3, 210 ppm TiO2 and 0.05% LOI 1000.
This process rejects approximately 50% of the Al2O3 content, 80% of the Fe2O3 content and 85% of the TiO2
content, while only rejecting approximately 23% of the ROM feed mass.
The relatively low contaminant product with an attractive narrow particle size distribution is demonstrated by
the following.
The final product (UCC underflow) was a successful fines control point. As shown in UCC = up-current
classifier, O/F = overflow, U/F = underflow, Cum. = cumulate
The final silica product was left with 2.6% -125-micron particles, correlating to a rejection of approximately 50% of
the -125-micron particles from the UCC feed, while only losing 2.5% of the +125-micron particles from the UCC feed.
Note that -125-micron particles can be undesirable in the high-purity silica sand market.
12
Metallica Minerals Annual Report 2021 High-quality
white silica sand
SiO2 >98.5%, with
relative low iron
Fe2O3 < 0.12%, is
present across the
wider Project area.
13
Metallica Minerals Annual Report 2021 Table 5: Particle size distribution
Sample
Size
µm
1000
850
710
600
500
425
355
300
250
180
125
90
63
0
Retained
UCC O/F
Cum.
retained
UCC U/F (silica sand product)
Passings
Retained
Cum.
retained
Passings
%
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
1.7
47.0
43.1
6.6
1.0
%
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.4
2.1
49.2
92.3
99.0
100.0
-
%
100.0
100.0
100.0
100.0
100.0
100.0
99.9
99.8
99.6
97.9
50.8
7.7
1.0
0.0
-
%
0.0
0.0
0.2
0.9
2.0
4.7
8.4
10.3
16.0
29.4
25.5
2.6
0.0
0.0
100.0
%
0.0
0.0
0.2
1.0
3.1
7.8
16.2
26.5
42.5
71.9
97.4
100.0
100.0
100.0
-
%
100.0
100.0
99.8
99.0
96.9
92.2
83.8
73.5
57.5
28.1
2.6
0.0
0.0
0.0
-
TOTAL
100.0
UCC = up-current classifier, O/F = overflow, U/F = underflow, Cum. = cumulate
PARTICLE SIZE DISTRIBUTIONS
g
n
i
s
s
a
p
%
s
s
a
M
100
90
80
70
60
50
40
30
20
10
0
0
200
400
600
800
1000
Size (um)
Figure 4: Up-current classifier (UCC) product particle size distributions
14
P01 (µm)
P50 (µm)
P80 (µm)
P99 (µm)
<63
124
157
224
102
230
334
603
UCC O/F
UCC O/F
silica product
WHIMS
product
Metallica Minerals Annual Report 2021
Blending most of the sand produced a SiO2 result
that had minimum level of greater than (>) 98.5%.
Benchtop testing which used hot-acid leaching was
also undertaken and the results showed a significant
decline in Fe2O3, from 170 ppm to 70 ppm. Such
results showed that processing off-site can produce
a very low-iron silica sand product.
The testing indicated that the Project sample was a
relatively low contaminant product with an attractive
narrow particle size distribution and a highmoderate
yield. Metallica has the option to market products
derived from earlier processing streams, such as the
feed preparation sand or the spiral circuit product.
Future marketing research will provide feedback
on the viability of these products. The mass yield
and product quality of each of these options are
summarised in Table 6.
Table 6: Potential Product Options
Potential
product
options
Mass
yield
%
Assay
SiO2
%
Al2O3
ppm
Fe2O3
ppm
TiO2
ppm
LOI
1000
%
Feed
preparation
sand
Spiral
product
UCC
product
97.6 99.7
715
760 1,225 0.07
84.0 99.9 500
240
260 0.10
77.4 99.8 450
170
210 0.05
These UCC product can be compared to the product
published by Mitsubishi (Cape Flattery Silica Mines)
on their website:
1. Chemical Analysis
Average Quality
SiO2
Fe2O3
Al2O3
TiO2
99.93%
0.01%
0.03%
0.02%
* Average Quality of last 5 years
* Not-guaranteed Quality
2. Size
Distribution
mesh
+20
+28
+35
+48
+65
+100
+150
+200
+270
-200
Average
Quality
Weight
μm
850
600
425
300
212
150
106
75
53
-53
%
0.00
0.36
3.68
17.26
28.87
40.08
9.26
0.42
0.06
0.02
AFS 60.59
PARTICLE SIZE DISTRIBUTIONS
i
)
%
(
d
e
n
a
t
e
R
e
g
a
t
n
e
c
r
e
P
45
40
35
30
25
20
15
10
5
0
.+850 µm
.+600 µm
.+425 µm
.+300 µm
.+212 µm
.+150 µm
.+106 µm
.+75 µm
.+53 µm
.-53 µm
Figure 5: Particle size distributions
Sieve Aperture (µm)
Source - www.cfsm.com.au/product
15
Metallica Minerals Annual Report 2021
INTERIM SCOPING STUDY
The findings of the CFS Project’s Interim Scoping
Study were very positive and provide the basis
for the Company to continue to further evaluate
and potentially develop the Project. Metallica has
appointed consultants to commence work on
completing a Pre-Feasibility Study.
The upcoming year the Company will continue
negotiations with Native Title holders and it intends
to progress an Environmental Approval (EA) process
with both State and Federal Government authorities.
The EA process requires Metallica to undertake
further requisite studies before it is granted a Mining
Lease. Once a suite of marketable products has been
identified, Metallica intends to seek interest from
potential offtake parties and particularly for the
purchase of high-purity silica sand product
The potential
for product to
be transported
to a Queensland
destination would
be a positive
outcome for
Metallica and
importantly, for
North Queensland.
16
Metallica Minerals Annual Report 2021 DEMAND FOR
SILICA SAND
Sand is the world’s most consumed raw material
after water and an essential ingredient to our
everyday lives. Yet, the world is facing a shortage —
and climate scientists say it constitutes one of the
greatest sustainability challenges of the 21st century.
For construction alone the world consumes roughly
40 – 50 billion tons of sand on an annual basis.
That’s enough to build a wall of 27 meters high by
27m wide that wraps around the planet every year.
The global rate of sand use which tripled over the
past two decades partially as a result of surging
urbanisation – far exceeds the natural rate at which
sand is being replenished by the weathering of rocks
by wind and water.
Sand is the worlds most consumed raw material
after water and an essential ingredient to our
everyday lives.
Source: A sand shortage? The world is running out of a crucial — but
under-appreciated — commodity www.cnbc.com/2021/03/05/ sand-
shortage-the-world-is-running-out-of-a-crucial-commodity.html
According to industry research firm IMARC Group,
high-purity silica sands are becoming more sought
after, with the global market growing at a compound
annual growth rate (CAGR) of around 6% between
2010 and 2017. In 2017, a total of 188 Mt of silica sand
was produced globally.
This growth has been driven by silica sand’s
applications across a broad range of industries
including glass-making, foundry casting, water
filtration, chemicals and metals, hydraulic
fracturing and an increasing number of hi-tech
products, including solar panels. For example, in
the global glass-making industry, one of the major
consumers of high-purity silica has experienced
significant growth recently from the construction
and automotive industries. IMARC also estimated
the global silica sand market could grow from
US$8 billion to US$20 billion in 2024.
USES OF SILICA SANDS
Silica Sands is quartz that over time, through the
work of water and wind, has been broken down
into tiny particles. The purity of Silica Sands varies
from location to location due to environmental
factors and as a result high purity sand is much sort
after by end users. The use of Silica Sands varies
greatly but is used in production of Glass products;
Architectural, Smartphones, Tablets, Automotive,
Fiberglass, Solar Panels. Building products;
Quarts surfaces, Roofing Shingles. Foundry Sand;
Automotive and Manufacturing, Into Foundry Sand
markets Fillers and Extenders, Chemicals and
Construction Sands.
17
Metallica Minerals Annual Report 2021 DIRECTOR AND MANAGEMENT
PROFILES
As at 30 September 2021
THEO PSAROS
Executive Chairman
BRAD SAMPSON
Non-Executive Director
Theo Psaros has over 30 years of diverse global and
local commercial experience in a number of business
sectors and industries within multi-million dollar
publicly listed companies, private companies and
government departments.
Theo's resource industry experience included a
number of years as Chief Financial Officer and Chief
Operating Officer of MetroCoal Limited, Chairman of
the Surat Basin Coal Alliance and a member of the
industry group that assisted with the Queensland
Government Department of Natural Resources &
Mines to prepare the 30-year strategic plan for the
resources industry in Queensland (ResourcesQ.
Theo joined the board of Metallica Minerals as Non-
Executive Chairman on 1 February 2019 and was
appointed as Executive Chairman on 21 May 2020.
Brad Sampson is a Brisbane based internationally
experienced business leader, Director and mining
professional with more than 30 years resources
industry experience.
He brings significant mine development and
operating experience to the Metallica Board along
with listed company governance experience
across multiple international jurisdictions. Brad has
experienced all aspects of mining operations, having
worked in leadership roles through the entire cycle
of exploration, development, operations and closure.
Other current directorships: Director of Kore Potash
Plc and Non-executive Director of Agrimin Limited.
Brad joined the board of Metallica Minerals as Non-
Executive Director on 13 May 2021.
18
Metallica Minerals Annual Report 2021 MARK BOJANJAC
Non-Executive Director
SCOTT WADDELL
Chief Financial Officer and Company Secretary
Mark Bojanjac is a Perth based company Director
with more than 20 years of significant experience in
ASX resource companies including those that have
taken exploration projects into production.
Scott Waddell’s resources experience was gained
from eight (8) years with Metro Mining Limited and
Cape Alumina Limited, nine (9) years with Anglo
Coal and eight (8) years with Rio Tinto Alcan (RTA).
He is currently Executive Chairman of PolarX
Limited (ASX: PXX), Non-executive Director of Kula
Gold Limited (ASX: KGD). He was previously Non-
executive Director and later Managing Director of
Adamus Resources leading the transition of the
company to a gold producer.
Mark is also Executive Chairman of PolarX Limited
and Non-Executive Director of Kula Gold Limited.
Mark joined the board of Metallica Minerals as Non-
Executive Director on 13 May 2021.
This included direct mine site experience of 8 years.
Roles included Interim CEO at Cape Alumina, CFO
and Company Secretary for Metro Mining Limited
and Cape Alumina Limited, Head of Finance for the
Monash Energy project in Victoria's La Trobe Valley,
as well as being a director of the CO2CRC Otway
Pilot Project and chairman of the audit committee,
Business Development Manager as well as a number
of finance and corporate roles.
Scott joined the board of Metallica Minerals as
Non-Executive Director on 1 February 2019 and was
appointed as Interim CEO on 7 February 2019. As
announced on 21 May 2020, Scott was appointed to
the positions Chief Financial Officer and Company
Secretary. Scott resigned from his role of Executive
Director on 31 August 2021 and has continued
with the Company as Chief Financial Officer and
Company Secretary.
19
Metallica Minerals Annual Report 2021
DIRECTOR AND MANAGEMENT
PROFILES
NICHOLAS VILLA
General Manager Cape Flattery Silica
Nicholas has over 20 years’ experience as a Mining
Professional, he is well practiced in the delivery
of resource projects, taking them from early
exploration phase through to production.
Nicholas has managed bulk commodity operations
both as Principal and as Contractor, fulfilling senior
management roles including Mining Manager, Project
Manager and Site Senior Executive. Developing his
experience in a wide range of commodities and
operations across Australia, Nicholas cultivated his
knowledge in as many areas as the resource industry
afforded him during his career including Engineering,
Maintenance, Survey, Geology and Construction.
As part of this experience, Nicholas has had
comprehensive managerial involvement in large
scale mobilisation of mining fleets, preceded by in
depth investigation and establishment of facilities
and personnel to match operational demand.
Thoroughly versed in Queensland resource project
approvals processes including Environmental Studies
and Native Title negotiations, Nicholas was Project
Manager for the team that successfully delivered
Metro Mining’s Bauxite Hills mine to full production
in Northern Cape York. This was comprised of both
mining and marine elements, situated in a remote
location with complex logistics.
Holding an Honours Degree in Geology, as well
as a Diploma in Project Management, Nicholas is
a long-term Member of the Australian Institute of
Geoscientists. Nicholas joined Metallica Minerals on the
14th of June, 2021 with the purpose of delivering yet
another successful operation in Northern Queensland.
Nick was appointed to the role of General Manager
on 14 June 2021.
20
Metallica Minerals Annual Report 2021 NOTICES
COMPETENT PERSON STATEMENTS
The information in this announcement that relates to the Cape Flattery Silica Sand Project-Eastern Exploration
Target and this Resource Estimation was based on results and data collected and complied by Mr Neil
Mackenzie-Forbes, who is a Member of the Institute of Geoscientists and is a Consulting Geologist employed
by Sebrof Projects Pty Ltd and engaged by Metallica Minerals Ltd. Mr Mackenzie-Forbes has more than 20
years mining and exploration experience in Australia with major mining and junior exploration companies. Mr
Neil Mackenzie-Forbes consents to the inclusion of this information in the form and context in which it appears
in this release/report.
The information in this announcement that relates to the Cape Flattery Silica Sand Project - Eastern Resource
Area is based on information and modeling undertaken by Mr Chris Ainslie, Geotechnical Engineer, who is a
full-time employee of Ausrocks Pty Ltd and a Member of the Australasian Institute of Mining & Metallurgy.
The work was supervised by Mr Carl Morandy, Mining Engineer who is Managing Director of Ausrocks Pty
Ltd and a Member of the Australasian Institute of Mining & Metallurgy and also by Mr Brice Mutton who is a
Senior Associate Geologist for Ausrocks Pty Ltd. Mr Mutton is a Fellow of the Australasian Institute of Mining
& Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Morandy and Mr Ainslie and Mr
Mutton are employed by Ausrocks Pty Ltd who have been engaged by Metallica Minerals Ltd to prepare this
independent report, there is no conflict of interest between the parties. Mr Morandy, Mr Ainslie and Mr Mutton
consent to the disclosure of information in the form and context in which it appears in this release/report.
The overall resource work for the Cape Flattery Silica Sand Project - Eastern Resource Area is based on
the direction and supervision of Mr Mutton who has sufficient experience that is relevant to the style of
mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as
a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves”.
The technical information in this report that relates to process metallurgy is based on information reviewed by
Arno Kruger (MAusIMM) and work completed by IHC Mining. Mr Kruger is a metallurgical consultant and an
employee of IHC Mining. Mr Kruger has sufficient experience that is relevant to the type of processing under
consideration and to the activity being undertaken to qualify as a Competent Person as defined by the JORC
Code 2012. Mr Kruger consents to the inclusion in the report of the matters based on his information in the
form and context in which it appears.
FORWARD-LOOKING STATEMENTS
Forward-looking statements are based on assumptions regarding Metallica, business strategies, plans and objectives
of the Company for future operations and development and the environment in which Metallica may operate.
Forward-looking statements are based on current views, expectations and beliefs as at the date they
are expressed and which are subject to various risks and uncertainties. Actual results, performance or
achievements of Metallica could be materially different from those expressed in, or implied by, these forward-
looking statements. The forward-looking statements contained in this presentation are not guarantees or
assurances of future performance and involve known and unknown risks, uncertainties and other factors, many
of which are beyond the control of Metallica, which may cause the actual results, performance or achievements
of Metallica to differ materially from those expressed or implied by the forward-looking statements. For
example, the factors that are likely to affect the results of Metallica include general economic conditions in
Australia and globally; ability for Metallica to funds its activities; exchange rates; production levels or rates;
demand for Metallica’s products, competition in the markets in which Metallica does and will operate; and the
inherent regulatory risks in the businesses of Metallica. Given these uncertainties, readers are cautioned to not
place undue reliance on such forward-looking statements.
TENEMENT
TABLE
As at 30 June 2021
Tenure
Project
Status
Commenced
Grant
Expiry
Location
Area
HA
Area
S/B
EPM25734 CAPE FLATTERY
ML100284 CAPE FLATERRY
EPM25728 FAIRVIEW
EPM25756 FAIRVIEW #1
EPM25779 WARRIOR
EPM27210 CLARA
EPM27290 MOMBA
EPM27740 CHILLAGOE
WEST
C
A
C
C
C
C
C
A
25/5/15
25/5/20
24/5/25
200km N of Cairns
0
50km N of Cooktown
615.9
6/8/15
6/8/20
5/8/23
25km W of Gladstone
12/12/14
12/12/19
11/12/24
25km W of Gladstone
24/6/15
24/9/19
10/2/20
24/6/20
23/6/25
S of Croydon
24/9/19
23/9/24
80km S of Croydon
10/2/20
9/2/25
70km SW of Croydon
Application for grant of sub blocks
28 Km NE of Wandoo
0
0
0
0
0
0
11
0
5
1
19
100
89
46
Area
Km2
54.4
16
3.2
60.8
320
284.8
151.34
22
Metallica Minerals Annual Report 2021 TOP 20
SHAREHOLDERS
As at 30 September 2021
Rank Name
Total Units
% IC
111,456,906
20.16
1
2
3
4
5
6
7
8
9
10
11
12
13
13
14
15
16
17
18
18
19
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
DOSTAL NOMINEES PTY LTD
29,422,409
ROOKHARP CAPITAL PTY LIMITED
PLAN-1 PTY LTD
MR GRAHAM RAYMOND DOW
SHADBOLT FUTURE FUND (TOTTENHAM) PTY LTD
GEFRATO TRADING PTY LTD
CALAMA HOLDINGS PTY LTD
CAROJON PTY LTD
LATSOD PTY LTD
BONDLINE LIMITED
17,407,408
11,012,502
9,100,000
8,190,000
6,300,000
5,500,000
5,000,000
5,000,000
4,910,966
MACFORBES SUPER PTY LTD
4,500,000
CS FOURTH NOMINEES PTY LIMITED
4,411,790
MRS CAROLYN DOW
ANDREW SCOTT VICTOR WADDELL
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
CITICORP NOMINEES PTY LIMITED
MRS ZI JUAN QI
MRS YAN WANG
MR BILAL AHMAD
MR PAUL THOMAS MCGREAL
20
MINNELEX PTY LTD
4,000,000
4,000,000
3,826,380
3,453,814
3,444,444
3,370,371
3,250,000
3,250,000
3,205,260
5.18
3.07
1.94
1.6
1.44
1.11
0.97
0.88
0.88
0.87
0.79
0.78
0.7
0.7
0.67
0.61
0.61
0.59
0.57
0.57
0.56
Total Top 20 Shareholders
254,031,776
45.25
23
Metallica Minerals Annual Report 2021 Metallica Minerals Limited
Terrace Office Park | Level 1, North Tower | 527 Gregory Terrace | Fortitude Valley QLD 4006
24
metallicaminerals.com.au
Metallica Minerals Annual Report 2021 Metallica Minerals Limited
ACN 076 696 092
Annual Financial Report - 30 June 2021
Metallica Minerals Limited
Corporate directory
30 June 2021
Directors
T Psaros - Executive Chairman
A Gillies - Non-executive Director
S Waddell - Executive Director
M Bojanjac - Non-executive Director
B Sampson - Non-executive Director
Company secretary
S Waddell
Annual General Meeting
The details of the annual general meeting of Metallica Minerals Limited are:
Colin Biggers & Paisley Pty Ltd
Level 35, Waterfront Place, 1 Eagle Street
Brisbane QLD 4000
9:00am on Wednesday, 17 November 2021
Registered office and principal
place of business
Share register
Auditor
Solicitors
Level 1, North Tower
Terrace Office Park
527 Gregory Terrace
Fortitude Valley
QLD 4006
Phone: (07) 3249 3000
Link Market Services Limited
Level 21, 10 Eagle Street
Brisbane
QLD 4001
Phone: 1300 554 474
Moore Australia Audit
Level 12, 10 Eagle Street
Brisbane
QLD 4000
Colin Biggers & Paisley Pty Ltd
Level 35, Waterfront Place
1 Eagle Street
Brisbane
QLD 4000
Stock exchange listing
Metallica Minerals Limited shares are listed on the Australian Securities Exchange
(ASX code: MLM)
Website
www.metallicaminerals.com.au
Corporate Governance Statement
www.metallicaminerals.com.au/corporate-directory
1
Metallica Minerals Limited
Directors' report
30 June 2021
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Metallica Minerals Limited (referred to hereafter as the 'company' or 'parent entity')
and the entities it controlled at the end of, or during, the year ended 30 June 2021.
Directors
The following persons were directors of Metallica Minerals Limited during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Theo Psaros
Andrew Gillies
Scott Waddell
Mark Bojanjac (appointed 13 May 2021)
Brad Sampson (appointed 13 May 2021)
The appointment of Mark Bojanjac and Brad Sampson as Directors was confirmed at an Extraordinary General Meeting of
members held on 7 July 2021.
Principal activities
During the financial year, the principal activities of the consolidated entity consisted of mineral exploration, evaluation and
progressing the development of its Cape Flattery Silica Sands Project. The consolidated entity sold its subsidiary
companies, Oresome Australia Pty Ltd and Oresome Bauxite Pty Ltd, and their respective 50% interest holdings in the
Urquhart Bauxite joint venture (JV), which incurred a loss of $2,049,754. There were no other significant changes in the
principal activities of the consolidated entity.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $3,054,991 (30 June 2020: $521,340).
The 30 June 2021 consolidated loss includes the net loss of $2,049,754 on disposal of the wholly-owned subsidiary
companies, Oresome Australia Pty Ltd, Oresome Bauxite Pty Ltd and their respective 50% interest holdings in the JV.
During the year ended 30 June 2021 the company:
(a) Continued to advance its Cape Flattery Silica Sands Project which included the following activities:
●
Following consultation with Native Title Holders (being the Dingaal and Nguurruumungu Clans), signed a Conduct and
Compensation Agreement with Hopevale Congress Aboriginal Corporation, the trustee and registered Native Title
Freehold owner of the land.
Successfully completed a 22-hole drilling program in December 2020 within the Eastern Target Area. All drilling was
undertaken with the permission from the Aboriginal Corporations.
On 2 March 2021, released an upgraded resource in the Eastern Resource Area estimated and summarised in the
table below. These results show there is good potential to produce a premium grade silica product using standard
processing techniques.
On 22 June 2021, the Company released excellent Metallurgical test results on Cape Flattery Silica Sand where the
work demonstrated a low contaminant product with an attractive narrow particle size distribution, which can be
produced at a high yield. The Metallurgical test results produced a product with 99.8% SiO2, 170ppm Fe2O3 and
450ppm Al2O3 .
Lodged a Mining Lease Application (ML 100284) with the Queensland Department of Resources (for an area of 616
Hectares).
●
●
●
●
On 2 March 2021, the Company released an upgraded resource in the Cape Flattery Silica Eastern Resource Area
estimated and summarised in Table 1, as is shown below:
Density
Silica Sand
(t/m3)
(Mt)
1.6
Indicated Resource 5.4
1.6
Inferred Resource 32.9
1.6
Total 38.3
Silica Sand
(Mm3)
3.4
20.5
23.9
Fe2O3
%
0.09
0.12
0.12
AI2O3
%
0.04
0.07
0.06
SiO2
%
99.1
99.0
99.0
TiO2
%
0.13
0.15
0.15
LOI
%
0.13
0.11
0.12
1Table 1 – EASTERN RESOURCE Area Cape Flattery Silica Project
2
Metallica Minerals Limited
Directors' report
30 June 2021
For further details, see ASX Release on 2 March 2021 titled “38 Mt of High Purity Silica Sand Resource at Cape Flattery
Silica Sands Project”.
The Resource has been prepared in accordance with the JORC Code 2012 – A cut-off grade 98.5% has been defined
based on the surrounding data. These results show there is good potential to produce a premium grade silica product
using standard processing techniques.
See the Competent Person statement below.
(b) Sold its Urquhart Bauxite Project
On 3 November 2020, the consolidated entity sold its subsidiary companies, Oresome Australia Pty Ltd and Oresome
Bauxite Pty Ltd, and their respective 50% interest holdings in the Urquhart Bauxite joint venture (JV). The sale proceeds
comprise the following cash payments: $50,000 on the announcement of the sale; $50,000 within 30 days of the signing of
the Share Sale Agreement, which is still outstanding as at the date of this report and has been classified as a doubtful
debt, and contingent consideration of $200,000. Additionally, the company will be paid royalties based on bauxite and sand
sales, and if at any time the acquirer transfers or disposes of the shares in Oresome, the profit (if any) on that sale will be
shared 50% with Metallica Minerals Limited. The doubtful debt was provided for in the 2nd half of the 2021 financial year
and consequently is not disclosed as doubtful in the company's 31 December 2020 half-year financial report.
(c) Received the final instalment of $330,000 due on the sale of its 50% interest in the Heavy Mineral Sands (HMS) plant
and the HMS tenements at Urquhart Point. For further information, see the company ASX releases on 5 August 2020 and
20 December 2019.
1. Competent Person Statement
The information in this report that relates to the Cape Flattery Silica Sand Project-Eastern Exploration Target and this
Resource Estimation was based on results and data collected and complied by Mr Neil Mackenzie-Forbes, who is a
Member of the Institute of Geoscientists and is a Consulting Geologist employed by Sebrof Projects Pty Ltd and engaged
by Metallica Minerals Ltd. Mr Mackenzie-Forbes has more than 20 years mining and exploration experience in Australia
with major mining and junior exploration companies. Mr Neil Mackenzie-Forbes consents to the inclusion of this information
in the form and context in which it appears in this report.
The information in this announcement that relates to the Cape Flattery Silica Sand Project - Eastern Resource Area is
based on information and modeling undertaken by Mr Chris Ainslie, Geotechnical Engineer, who is a full-time employee of
Ausrocks Pty Ltd and a Member of the Australasian Institute of Mining & Metallurgy. The work was supervised by Mr Carl
Morandy, Mining Engineer who is Managing Director of Ausrocks Pty Ltd and a Member of the Australasian Institute of
Mining & Metallurgy and also by Mr Brice Mutton who is a Senior Associate Geologist for Ausrocks Pty Ltd. Mr Mutton is a
Fellow of the Australasian Institute of Mining & Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr
Morandy and Mr Ainslie and Mr Mutton are employed by Ausrocks Pty Ltd who have been engaged by Metallica Minerals
Ltd to prepare this independent report, there is no conflict of interest between the parties. Mr Morandy, Mr Ainslie and Mr
Mutton consent to the disclosure of information in the form and context in which it appears in this report.
The overall resource work for the Cape Flattery Silica Sand Project - Eastern Resource Area is based on the direction and
supervision of Mr Mutton who has sufficient experience that is relevant to the style of mineralisation and type of deposits
under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition
of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".
The technical information in this report that relates to process metallurgy is based on information reviewed by Arno Kruger
(MAusIMM) and work completed by IHC Mining. Mr Kruger is a metallurgical consultant and an employee of IHC Mining.
Mr Kruger has sufficient experience that is relevant to the type of processing under consideration and to the activity being
undertaken to qualify as a Competent Person as defined by the JORC Code 2012. Mr Kruger consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
3
Metallica Minerals Limited
Directors' report
30 June 2021
Capital expenditure
During the 2021 financial year, $1,183,081 was incurred on capitalised exploration and development expenditure (2020:
$188,141). The majority of the expenditure incurred was on the Cape Flattery Silica Sands Project.
Cash flow and Liquidity
During the 2021 financial year, the net cash outflows from operating activities decreased to $933,561 (2020: $1,551,525).
The 2020 cash outflows included non-recurring expenses of $201,028 relating to the Nornico administration. In 2021, there
was an increase in costs capitalised to the Cape Flattery Silica Sands Project which reduced the cash costs recognised in
operating activities.
For the financial year ended 30 June 2021, the net cash outflow from investing activities amounted to $832,814 (2020 - net
cash inflow: $1,304,388). The net cash outflow for 2021 was largely attributable to payments for exploration and evaluation
assets. The net cash inflow for 2020 was largely attributable to the receipt of $1,296,400 from the sale of the HMS plant
and tenements. Cash outflows for plant and equipment and, exploration and evaluation amounted to $1,188,746 (2020:
$188,670).
During the financial year ended 30 June 2021, the company raised $6,500,407 from a rights issue and follow-on placement
net of share issue costs of $500,254.
COVID-19 Impacts
The consolidated entity continues to follow recommendations from Queensland Health and the Australian Government to
provide a COVID-19 safe workplace.
The company is also aware that travel restrictions to remote indigenous communities were in place during the financial
year ending 30 June 2021, which delayed some activities and these restrictions continue to be in place in some
communities. The company remains committed to following the guidelines released by the Government.
Other than restricted access to some remote communities, 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 consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
pandemic.
Significant changes in the state of affairs
On 3 November 2020, the company entered into an agreement to sell its subsidiary companies Oresome Australia Pty Ltd
and Oresome Bauxite Pty Ltd (Oresome), the 50% joint venture partner in the Urquhart Bauxite project (refer note 31).
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
At an Extraordinary General Meeting (EGM) held on 7 July 2021, the company's shareholders approved the following:
1) A new Employee Equity Incentive Plan.
2) The issue of a total of 4,030,000 Performance Rights to the following Directors: Scott Waddell, Theo Psaros, Mark
Bojanjac, and Brad Sampson.
3) Cashless loans to the following Directors: Scott Waddell, Theo Psaros and Andrew Gillies, for the exercise of employee
options held by them.
At the aforementioned EGM, the shareholders also ratified the issue of options to Mahe Capital Pty Ltd, ratified the issue of
shares and options to persons nominated by Mahe Capital Pty Ltd, and confirmed the appointment of Mark Bojanjac and
Brad Sampson as Directors.
On 27 July 2021, the company allotted 10m shares for the exercise of employee options held by Directors, and entered
into non-cash loan agreements with three Directors as outlined in the EGM held on 7 July 2021 and Notice of Meeting
dated 7 and 8 June 2021.
On 23 July 2021, the company entered into a 4-year lease for office premises in Fortitude Valley.
On 2 August 2021, the company issued 7,160,000 performance rights to Directors and employees based on the terms
detailed at the EGM held on 7 July 2021 and Notice of Meeting dated 7 and 8 June 2021.
4
Metallica Minerals Limited
Directors' report
30 June 2021
On 5 August 2021, the company announced the signing of a Memorandum of Understanding (“MoU”) with Diatreme
Resources (ASX: DRX) for a potential joint venture on the Clermont Gold Copper Project which comprises EPM
17968. The company is to undertake due diligence on the project for an exclusive period of thirty (30) days prior to making
a decision on whether to invest in further exploration.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Likely developments and expected results of operations
The consolidated entity's goal is to develop and progress the Cape Flattery Silica Sands Project and evaluate options to
maximise the value of the company’s other projects including the Esmeralda base metals, gold and graphite project. The
company is also actively evaluating other projects for potential acquisition.
Environmental regulation
The consolidated entity is subject to environmental regulations under laws of Queensland where it holds mineral
exploration and mining tenements. During the financial year the consolidated entity’s activities recorded no non-compliance
issues.
Information on directors (as at the date of this report)
Name:
Title:
Qualifications:
Experience and expertise:
Theo Psaros
Executive Chairman
GAICD, CA, BFinAdmin
Theo Psaros has over 30 years of diverse global and local commercial experience in
a number of business sectors and industries within multi-million dollar publicly listed
companies, private companies and government departments. Theo's resource
industry experience included a number of years as Chief Financial Officer and Chief
Operating Officer of MetroCoal Limited, Chairman of the Surat Basin Coal Alliance
and a member of the industry group that assisted with the Queensland Government
Department of Natural Resources & Mines to prepare the 30-year strategic plan for
the resources industry in Queensland (ResourcesQ).
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Executive Chairman
5,000,000
500,000
1,900,000
Name:
Title:
Qualifications:
Experience and expertise:
Andrew Scott Waddell
Executive Director
B.Bus, Dip.PMM (Dist), FCPA, AGIA
Scott Waddell's resources experience was gained from eight (8) years with Metro
Mining Limited and Cape Alumina Limited, nine (9) years with Anglo Coal and eight
(8) years with Rio Tinto Alcan (RTA). This included direct mine site experience of 8
years. Roles included Interim CEO at Cape Alumina, CFO and Company Secretary
for Metro Mining Limited and Cape Alumina Limited, Head of Finance for the Monash
Energy project in Victoria's La Trobe Valley, as well as being a director of the
CO2CRC Otway Pilot Project and chairman of the audit committee, Business
Development Manager as well as a number of finance and corporate roles.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
CFO and Company Secretary
6,000,000
500,000
1,600,000
5
Metallica Minerals Limited
Directors' report
30 June 2021
Name:
Title:
Qualifications:
Experience and expertise:
Andrew Gillies
Non-executive Director
BSc Bachelor of Science (Geology), MAusIMM
Andrew Gillies is a highly experienced geologist with over 35 years' experience
and over 20 years combined experience as an Executive Director or Company
Director of ASX listed junior resource companies. This provides for strong
resource and mineral exploration, project generation, company management,
project feasibility, project development, mining, capital raising, governance and
corporate background.
Andrew was a Founding and Executive Director of Metallica Minerals in 1997,
listing the company on the ASX in 2004. He retired from the Managing Director
position in July 2015 and then retired as a Director in June 2017. At the company
General Meeting on 1 February 2019, Andrew along with Theo Psaros and Scott
Waddell were elected by the shareholders to the Board replacing the previous
company Board.
Andrew has extensive and diverse experience across a range of mineral and
resource projects, much of this experience gained throughout Queensland. Andrew
successfully listed subsidiaries Cape Alumina Limited and MetroCoal Limited on
the ASX in 2009 (these companies have since merged to become Metro Mining
Limited, a successful bauxite producer).
Andrew was a director of ASX junior companies Orion Metals Limited and Planet
Metals Limited and he was previously a Director of the Queensland Resources
Council (QRC).
Mr Gillies is currently a Director of Prophet Resources Pty Ltd and his private
geological consulting and investment company Golden Breed Pty Ltd.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
None
Interests in shares:
Interests in options:
Interests in rights:
None
5,400,000
600,000
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Mark Bojanjac (appointed 13 May 2021)
Non-executive Director
BCom, ICAA
Mark Bojanjac is a Perth based company Director with more than 20 years of
significant experience in ASX resource companies including those that have taken
exploration projects into production. He is currently Executive Chairman of PolarX
Limited (ASX: PXX), Non-executive Director of Kula Gold Limited (ASX: KGD). He
was previously Non-executive Director and later Managing Director of Adamus
Resources leading the transition of the company to a gold producer.
Executive Chairman of PolarX Limited and Non-executive Director of Kula Gold
Limited
Former directorships (last 3 years): Non-executive Director of Geopacific Resources Limited from 2013 to 2019
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
None
None
None
265,000
6
Metallica Minerals Limited
Directors' report
30 June 2021
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years): None
None
Special responsibilities:
None
Interests in shares:
None
Interests in options:
265,000
Interests in rights:
Stuart Bradley Sampson (appointed 13 May 2021)
Non-executive Director
B.E. (Hons) Mining, MBA, AMP, MAusIMM
Brad Sampson is a Brisbane based internationally experienced business leader,
Director and mining professional with more than 30 years resources industry
experience. He brings significant mine development and operating experience to the
Metallica Board along with listed company governance experience across multiple
international jurisdictions. Brad has experienced all aspects of mining operations,
having worked
the entire cycle of exploration,
leadership roles
in
development, operations and closure.
Director of Kore Potash Plc and Non-executive Director of Agrimin Ltd
through
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships in all
other types of entities, unless otherwise stated. 'Former directorships (in the last 3 years)' quoted above are directorships
held in the last 3 years for listed entities only and excludes directorships in all other types of entities, unless otherwise
stated.
Company secretary
The Company Secretary is Scott Waddell, who was appointed to the position on 8 December 2020. Scott is a member of
the Governance Institute of Australia and has previously worked as the Company Secretary to Cape Alumina Ltd and
Metro Mining Ltd over an eight-year period. The former Company Secretary was John Haley.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2021, and
the number of meetings attended by each director were:
T Psaros
S Waddell
A Gillies
M Bojanjac (appointed 13 May 2021)
B Sampson (appointed 13 May 2021)
Full Board
Attended
Held
15
15
15
2
2
15
15
15
2
2
Held: represents the number of meetings held during the time the director held office.
With effect from 30 June 2015, the Board decided that it was no longer appropriate to have separate committees for Audit
& Risk and Remuneration. The Board as part of its role has undertaken the responsibilities of these Board committees and
carries out the functions set out in their respective charters to ensure that their objectives are met.
Remuneration report (audited)
The remuneration report, which has been audited, outlines the director and executive remuneration arrangements for the
consolidated entity and the company, in accordance with the requirements of the Corporations Act 2001 and its
Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
7
Metallica Minerals Limited
Directors' report
30 June 2021
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's and company's executive reward framework is to ensure reward for performance
is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of
strategic objectives and the creation of value for shareholders and conforms to the market best practice for delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good
reward governance practices:
●
●
●
competitiveness and reasonableness
acceptability to shareholders
transparency
The remuneration structure for key management personnel, excluding non-executive directors, is set by the Board and is
based on a number of factors including, market remuneration for comparable companies, particular experience of the
individual concerned and overall performance of the consolidated entity. The contracts for service between the
consolidated entity and key management personnel are on a continuing basis the terms of which are not expected to
materially change in the immediate future. The consolidated entity retains the right to terminate contracts immediately by
making payment of an amount based on the employee's years of service. Upon retirement or termination key management
personnel, excluding non-executives, are paid employee benefits accrued to date of retirement or termination. No other
termination benefits are payable under service contracts except that the Chairman is entitled to an additional 6 weeks'
written notice in the case of a change of control event. Unless otherwise stated, service agreements do not provide for pre-
determined compensation values or the manner of payment. Compensation is determined in accordance with the general
remuneration policy. The manner of payment is determined on a case by case basis and is generally a mix of cash and
non-cash benefits as considered appropriate by the Board.
The remuneration framework is aligned to shareholders’ interests through:
●
●
a focus on sustained growth in share price and key non-financial drivers of value
attracting and retaining high calibre executives
The remuneration framework is aligned to employees’ interests through:
●
●
●
●
rewarding capability and experience
reflecting competitive rates of remuneration in respect of skills and responsibility
providing a clear structure for earning rewards
providing recognition for achievements
In accordance with best practice corporate governance, the structure of non-executive directors and executive
remuneration is separate.
Non-executive director remuneration
Remuneration of the non-executive directors is approved by the Board and set in aggregate within the maximum amount
approved by the shareholders from time to time. The fees have been determined by the Board having regard to industry
practice and the need to obtain appropriately qualified independent persons.
The aggregate pool of remuneration paid to non-executive directors was approved by shareholders on 24 November 2010
and is currently $300,000 per annum for Metallica Minerals Limited as parent entity. The amount paid to non-executive
directors of the parent entity (Metallica Minerals Limited) during the year to 30 June 2021 was $60,631 excluding any
remuneration from options (2020: $112,087).
Executive remuneration
The consolidated entity and company aims to reward executives with a level and mix of remuneration, both fixed and
variable, based on their position and level of achievement.
8
Metallica Minerals Limited
Directors' report
30 June 2021
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
(i) Fixed remuneration
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board, based on individual and business unit performance, the overall performance of the consolidated entity and
comparable market remunerations.
Executives can receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and adds additional value to the executive.
(ii) Short-term incentives
STIs paid to senior executives are made on a discretionary basis as determined by the Board. These incentives, while not
guaranteed, are directly linked to the achievement of KPIs as well as various performance targets for each area of
operational responsibility, including the preparation and delivery of reports on time and meeting industry targets and
standards in relation to workplace health and safety. No bonus is awarded where performance falls below the minimum
acceptable KPI levels as determined by the Board.
(iii) Long-term incentives
Long-term performance incentives (LTI) are delivered through the grant of options and share rights to executive directors
and selected senior executives from time to time as part of their remuneration. Share rights have a nil exercise price and
the performance hurdles applicable to any performance period (including how they will be measured) is set out in the
invitation to the eligible executives.
At the Annual General Meeting (AGM) held on 29 November 2019, the company's shareholders approved the issue of
share options to key employees under the company's incentive plan.
At the Extraordinary General Meeting (EGM) held on 7 July 2021, the company's shareholders approved the issue of
performance rights to Directors under the company's new Employee Equity Incentive Plan.
The purpose of the new incentive plan is to:
(a) assist in the reward, retention and motivation of participants;
(b) align the interests of participants with the interests of the company's shareholders;
(c) promote the long-term success of the company and provide greater incentive for participants to focus on the
company's longer term goals;
(d) link the reward of participants to the performance of the company and the creation of shareholder value; and
(e) provide participants with the opportunity to share in any future growth in value of the company.
Consolidated entity performance and link to remuneration
Because the consolidated entity is in exploration and development, not production, there is no direct relationship between
the consolidated entity’s financial performance and the level of remuneration paid to key management personnel.
At 30 June 2021, the market price of the company’s ordinary shares was 3.5 cents per share (30 June 2020: 1.1 cents per
share). No dividends were paid during the year ended 30 June 2021.
Share prices are subject to the influence of international metal prices and market sentiment towards the sector and
increases or decreases may occur independently of executive performance or remuneration. The company may issue
options or performance rights to provide an incentive for key management personnel which, it is believed, is in line with
industry standards and practice and is also believed to align the interests of key management personnel with those of the
company’s shareholders.
9
Metallica Minerals Limited
Directors' report
30 June 2021
Unless otherwise stated, service agreements do not provide for pre-determined compensation values or the manner of
payment. Compensation is determined in accordance with the general remuneration policy. The manner of payment is
determined on a case by case basis and is generally a mix of cash and non-cash benefits as determined by the Board of
Directors. Except in so far as Directors and other key management personnel hold options or share rights over shares in
the company, there is no relationship between remuneration policy and the company’s performance.
Use of remuneration consultants
The company did not engage remuneration consultants to prepare a formal remuneration report during the financial year
ended 30 June 2021.
Voting and comments made at the company's 18 November 2020 Annual General Meeting ('AGM')
At the 18 November 2020 AGM, 89% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2020. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Metallica Minerals Limited:
●
●
●
●
●
Theo Psaros
Scott Waddell
Andrew Gillies
Mark Bojanjac
Brad Sampson
Short-term benefits
Post-
employment
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Annual
leave
accrual
$
Super-
annuation
$
Long
service
leave
$
Options,
rights &
shares (b)
$
Total
$
40,150
8,334
7,610
149,600
135,245
340,939
-
-
-
-
-
-
3,814
-
723
-
-
4,537
-
-
-
-
-
-
4,326
-
-
48,290
8,334
8,333
4,326
5,768
14,420
153,926
141,013
359,896
2021
Non-Executive Directors:
A Gillies
M Bojanjac (a)
B Sampson (a)
Executive Directors:
T Psaros
S Waddell
(a) Mr M Bojanjac and Mr B Sampson were appointed Directors on 13 May 2021.
(b) The amounts included in the share-based remuneration represent the grant date fair value of performance rights and
options, amortised on a straight-line basis over the expected vesting period. Expenses are reversed where rights are
forfeited due to a failure to satisfy the service conditions or there is a revision of share rights expected to vest.
10
Metallica Minerals Limited
Directors' report
30 June 2021
2020
Non-Executive Directors:
A Gillies (e)
Executive Directors:
T Psaros (a) (e)
S Waddell (b)
Other Key Management
Personnel:
J K Haley (c)
Short-term benefits
Post-
employment
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Annual
leave
accrual
$
Super-
annuation
$
Long
service
leave
$
Options,
rights &
shares (d)
$
Total
$
43,488
74,786
156,780
-
-
-
3,814
-
-
-
-
-
2,430
49,732
2,430
3,240
77,216
160,020
100,869
375,923
(5,216)
(5,216)
9,565
13,379
2,541
2,541
-
8,100
107,759
394,727
(a) Mr T Psaros was Non-executive Chairman until 21 May 2020 and Executive Chairman thereafter.
(b) Mr S Waddell was Interim CEO until 21 May 2020 and appointed CFO thereafter.
(c) Mr J Haley resigned as CFO on 21 May 2020 and was no longer part of the key management personnel after this
date, but continued in the role of Company Secretary. Mr J Haley had a negative annual leave accrual balance due to
him taking more leave over the period than what was accrued.
(d) The amounts included in the share-based remuneration represent the grant date fair value of performance rights and
options, amortised on a straight-line basis over the expected vesting period. Expenses are reversed where rights are
forfeited due to a failure to satisfy the service conditions or there is a revision of share rights expected to vest.
(e) Payments to both Mr T Psaros and Mr A Gillies included payments for consulting work undertaken to the Company in
addition to the contracted Director fees.
The proportion of remuneration linked to performance (i.e. options) and the fixed proportion are as follows:
Name
Non-Executive Directors:
A Gillies
M Bojanjac
B Sampson
Executive Directors:
T Psaros
S Waddell
Other Key Management
Personnel:
J K Haley
Fixed remuneration
2020
2021
At risk - STI
At risk - LTI
2021
2020
2021
2020
91%
100%
100%
97%
96%
95%
-
-
97%
98%
-
100%
-
-
-
-
-
-
-
-
-
-
-
-
9%
-
-
3%
4%
5%
-
-
3%
2%
-
-
11
Metallica Minerals Limited
Directors' report
30 June 2021
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Theo Psaros
Executive Chairman
20 May 2020
Ongoing
From 21 May 2020 until 1 February 2021, the remuneration payable to Theo Psaros
was $10,000 per month (excluding GST) on a contractor basis. From 1 February
2021 his monthly salary was increased to $15,000 per month due to the additional
workload. Theo already participates in an employee incentive plan and no other
additional short or long-term incentives have been included in the terms of the
engagement. The contract can be terminated by six weeks' notice from either party
plus an additional six week's written notice in the case of a change of control event.
Andrew Scott Waddell
CFO and Company Secretary
21 May 2020
Ongoing
From 21 May 2020 the remuneration payable to Scott Waddell is $1,100 per full day
worked (excluding GST) on a contractor basis. Scott already participates in an
employee incentive plan and no other additional short or long-term incentives have
been included in the terms of the engagement. The contract can be terminated by six
weeks' notice from either party plus an additional six weeks' written notice in the case
of a change of control event.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares granted to directors and other key management personnel as part of compensation during the year
ended 30 June 2021.
Options
During the financial year ended 30 June 2021, there were no options granted as remuneration to key management
personnel. Details of all options on issue over unissued ordinary shares in Metallica Minerals Limited at 30 June 2021
granted to key management personnel as remuneration are set out in the table below:
Name
T Psaros
A Gillies
S Waddell
Number of
options
granted
3,000,000
3,000,000
4,000,000
Fair value
per option
Grant date
Expiry date
Exercise price at grant date
23/12/2019
23/12/2019
23/12/2019
23/06/2022
23/06/2022
23/06/2022
$0.029
$0.029
$0.029
$0.0037
$0.0037
$0.0037
Options granted carry no dividend or voting rights. The performance criteria for the options to vest include that the
company shares trade at a price of greater than $0.03 for 5 successive trading days on the Australian Securities
Exchange.
12
Metallica Minerals Limited
Directors' report
30 June 2021
The number of options over ordinary shares granted to and vested by directors and other key management personnel as
part of compensation during the year ended 30 June 2021 are set out below:
Number of
Number of Number of
options
granted
during the
options
granted
during the
options
vested
Number of
options
vested
during the
during the
Name
T Psaros
A Gillies
S Waddell
year
2021
year
2020
year
2021
year
2020
-
-
-
3,000,000
3,000,000
4,000,000
-
-
-
-
-
-
Share rights
There were no share rights over ordinary shares granted to directors and other key management personnel as part of
compensation during the year ended 30 June 2021.
Equity instruments issued on exercise of remuneration options/rights granted during the year
There were no remuneration options/rights exercised during the year ended 30 June 2021.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2021 are summarised below:
2021
$
2020
$
2019
$
2018
$
2017
$
Profit/(loss) after income tax
(3,054,991)
(521,340)
(4,391,316)
3,195,557
(2,559,121)
The factors that are considered to affect Total Shareholders Return ('TSR') are summarised below:
2021
2020
2019
2018
2017
Share price at financial year end (cents)
Basic earnings/(loss) per share (cents per
share)
3.50
1.05
1.60
(0.84)
(0.16)
(1.36)
3.70
0.99
5.20
(1.05)
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
T Psaros
S Waddell
A Gillies
Options/rights
Balance at
exercised
the start of during the
the year
year
Additions
Disposals/
other
Balance at
the end of
the year
674,000
632,258
962,500
2,268,758
-
-
-
-
1,326,000
1,367,742
1,437,500
4,131,242
-
-
-
-
2,000,000
2,000,000
2,400,000
6,400,000
None of the shares above are held nominally by the directors or any of the other key management personnel.
13
Metallica Minerals Limited
Directors' report
30 June 2021
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out
below:
Options over ordinary shares
T Psaros
S Waddell
A Gillies
Balance at
the start of
the year
Granted as
remuneration
Expired/
forfeited/
Balance at
the end of
Exercised
other*
the year
3,000,000
4,000,000
3,000,000
10,000,000
-
-
-
-
-
-
-
-
500,000
500,000
600,000
3,500,000
4,500,000
3,600,000
1,600,000 11,600,000
*
Includes options that attached to shares issued under a renounceable rights offer.
No other key management personnel held options.
Loans to key management personnel and their related parties
There were no loans owing by key management personnel of the group, including their close family members and entities
related to them, during the financial year ended 30 June 2021.
Other transactions with key management personnel and their related parties
There were no other transactions with key management personnel of the group, including their close family members and
entities related to them, during the financial year ended 30 June 2021.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Metallica Minerals Limited under option at the date of this report are as follows:
Grant date
3 August 2011
27 April 2021
Expiry date
No expiry date*
25 March 2024
Exercise
price
Number
under option
$0.700
1,000,000
$0.060 130,678,964
131,678,964
*
These options will expire 3 years after the decision to mine at Lucknow or Kokomo is made.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of
the company or of any other body corporate.
No options were granted to the directors or any of the five highest remunerated officers of the company since the end of
the financial year.
Shares under share rights
Unissued ordinary shares of Metallica Minerals Limited under performance rights at the date of this report are as follows:
Grant date
2 August 2021*
Expiry date
1 July 2022
Exercise
price
Number
under rights
$0.000
7,160,000
*
On 7 July 2021, the company's shareholders approved the issue of 4,030,000 Performance Rights to the following
Directors: Scott Waddell, Theo Psaros, Mark Bojanjac, and Brad Sampson, and 3,130,000 to employees.
14
Metallica Minerals Limited
Directors' report
30 June 2021
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate
in any share issue of the company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of Metallica Minerals Limited were issued during the year ended 30 June 2021 and up to the
date of this report on the exercise of options granted:
Date options exercised
27 July 2021
Number of
Exercise
price
shares
issued
$0.029 10,000,000
Shares issued on the exercise of share rights
There were no ordinary shares of Metallica Minerals Limited issued on the exercise of performance rights during the year
ended 30 June 2021 and up to the date of this report.
Indemnity and insurance of officers
Each of the Directors and the Secretary of the company have entered into a Deed with the company whereby the company
has provided certain contractual rights of access to books and records of the company to those Directors and Secretary.
The company has insured all of the Directors of Metallica Minerals Limited. The contract of insurance prohibits the
disclosure of the nature of the liabilities covered and amount of the premium paid. The Corporations Act 2001 does not
require disclosure of the information in these circumstances.
Indemnity and insurance of auditor
Other than the standard indemnities, the company has not, during or since the end of the financial year, indemnified or
agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking
responsibility on behalf of the company for all or part of those proceedings.
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 set out below.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The directors are of the opinion that the services as disclosed below do not compromise the external auditor's
independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
●
15
Moore Australia Audit
Level 12, 10 Eagle Street
Brisbane QLD 4000
GPO Box 475
Brisbane QLD 4001
T +61 7 3340 3800
F +61 7 3340 3700
www.moore-australia.com.au
Auditor's Independence Declaration under Section 307C of the
Corporations Act 2001 to the Directors of Metallica Minerals Limited
As lead auditor for the audit of Metallica Minerals Limited for the year ended 30 June 2021, I declare that, to the best of my
knowledge and belief, there have been:
(i) no contraventions of the independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Metallica Minerals Limited and the entities it controlled during the year.
Murray McDonald
Director - Audit and Assurance
Moore Australia Audit (QLD/NNSW)
Chartered Accountants
Brisbane
19 August 2021
Moore Australia Audit (QLD/NNSW) – ABN 33 050 150 130.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
17
Metallica Minerals Limited
Contents
30 June 2021
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Metallica Minerals Limited
Shareholder information
General information
19
20
21
22
23
50
51
54
The financial statements cover Metallica Minerals Limited as a consolidated entity consisting of Metallica Minerals Limited
and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars,
which is Metallica Minerals Limited's functional and presentation currency.
Metallica Minerals Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its
registered office and principal place of business is:
Level 1, North Tower
Terrace Office Park
527 Gregory Terrace
Fortitude Valley
QLD 4006
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 18 August 2021. The
directors have the power to amend and reissue the financial statements.
18
Metallica Minerals Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Revenue
Other income
Interest revenue
Expenses
Airfares and conferences
Extraordinary General Meeting costs
Impairment reversals
Employee benefits expense
Exploration costs
Depreciation and amortisation expense
Listing fees and share register expenses
Impairment of exploration and evaluation expenditure, and plant and equipment
Legal fees
Marketing
Nornico administration expenses
Professional fees
Net loss on disposal of subsidiary and joint operation
Rental expenses
Other expenses
Finance costs
Total expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Metallica Minerals Limited
Other comprehensive income for the year, net of tax
Total comprehensive income for the year attributable to the owners of
Metallica Minerals Limited
Consolidated
Note
2021
$
2020
$
4
5
49,221
115,509
220,342
8,034
145,811
28,962
10
6
6
29,31
6
7
(41,254)
(6,000)
-
(372,460)
(279,878)
(18,421)
(96,599)
-
(50,545)
-
-
(113,436)
(2,049,754)
(89,936)
(214,305)
-
(3,332,588)
(24,901)
(1,059)
1,096,400
(524,105)
(458,956)
(23,096)
(44,197)
(152,672)
(135,735)
(11,130)
(201,028)
(80,326)
-
(105,476)
(144,449)
(892)
(811,622)
(3,054,991)
(521,340)
-
-
(3,054,991)
(521,340)
-
-
(3,054,991)
(521,340)
Cents
Cents
Basic earnings per share
Diluted earnings per share
32
32
(0.84)
(0.84)
(0.16)
(0.16)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
19
Metallica Minerals Limited
Statement of financial position
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation
Other
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Employee benefits
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2021
$
2020
$
8
9
7,531,567
45,923
7,577,490
2,797,535
363,004
3,160,539
10
11
13
10,788
1,183,081
48,443
1,242,312
23,364
2,090,729
54,493
2,168,586
8,819,802
5,329,125
14
15
382,022
11,447
393,469
259,719
109,509
369,228
393,469
369,228
8,426,333
4,959,897
17
18
50,896,470 36,436,227
8,158,563
(39,634,893)
219,747
(42,689,884)
8,426,333
4,959,897
The above statement of financial position should be read in conjunction with the accompanying notes
20
Metallica Minerals Limited
Statement of changes in equity
For the year ended 30 June 2021
Consolidated
Balance at 1 July 2019
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
36,436,227
8,150,463
(39,113,553)
5,473,137
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Transactions with owners in their capacity as owners:
Share-based payments (note 18)
-
-
-
-
-
-
-
(521,340)
-
(521,340)
-
(521,340)
(521,340)
8,100
-
8,100
Balance at 30 June 2020
36,436,227
8,158,563
(39,634,893)
4,959,897
Consolidated
Balance at 1 July 2020
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
36,436,227
8,158,563
(39,634,893)
4,959,897
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
-
-
-
-
-
-
(3,054,991)
-
(3,054,991)
-
(3,054,991)
(3,054,991)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 17)
Share-based payments (note 18)
Transfer from share-based payments reserve to issued capital
6,310,017
-
8,150,226
-
211,410
(8,150,226)
-
-
-
6,310,017
211,410
-
Balance at 30 June 2021
50,896,470
219,747
(42,689,884)
8,426,333
The above statement of changes in equity should be read in conjunction with the accompanying notes
21
Metallica Minerals Limited
Statement of cash flows
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers, government grants and other (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest and other finance costs paid
Consolidated
Note
2021
$
2020
$
256,644
(1,198,239)
241,755
(1,821,350)
(941,595)
8,034
-
(1,579,595)
28,962
(892)
Net cash used in operating activities
34
(933,561)
(1,551,525)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation assets
Payments for security deposits
Sale proceeds - HMS plant and tenements
Proceeds from disposal of financial assets at fair value through profit or loss
Proceeds from disposal of property, plant and equipment, and tenements
Proceeds from disposal of subsidiary and joint operation
Receipt for security deposit
Net cash from/(used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
10
11
31
17
(5,665)
(1,183,081)
(15,805)
330,000
-
-
41,737
-
(529)
(188,141)
(4,640)
-
75,495
1,296,400
-
125,803
(832,814)
1,304,388
7,000,661
(500,254)
6,500,407
-
-
-
4,734,032
2,797,535
(247,137)
3,044,672
Cash and cash equivalents at the end of the financial year
8
7,531,567
2,797,535
The above statement of cash flows should be read in conjunction with the accompanying notes
22
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. None of the
new standards and amendments to standards affected any of the amounts recognised in the current period or any prior
period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Going concern
For the year ended 30 June 2021, the consolidated entity incurred a loss of $3,054,991 after income tax and net cash
outflows from operating activities of $933,561. The net loss before income tax includes a net loss of $2,049,754 on
disposal of the subsidiary companies Oresome Australia Pty Ltd, Oresome Bauxite Pty Ltd and their respective 50%
interest holdings in the Urquhart Bauxite joint venture (JV).
The Coronavirus (COVID-19) pandemic is restricting access to some remote communities. However, there does not
currently appear to be any significant impact upon solvency or going concern of the consolidated entity as at the reporting
date or subsequent to the date of this report as a result of the pandemic.
The Directors have concluded that the going concern basis of preparation of the financial statements is appropriate and
any uncertainty regarding going concern is mitigated by the following:
●
At 30 June 2021 the consolidated entity had net current assets of $7,184,021 (30 June 2020: $2,791,311) and total
net assets of $8,426,333 (30 June 2020: $4,959,897). Cash and cash equivalents at 30 June 2021 amounted to
$7,531,567 (30 June 2020: $2,797,535).
If additional cash is required outside of current cash holdings, the consolidated entity is expected to be in a position to
complete capital raising with no foreseeable challenges as they have a proven history of successfully raising funds.
During the year ended 30 June 2021, the company raised $6,303,417 from the issue of ordinary shares in the
company (net of share issue costs) (note 17).
●
Based on the above, the Directors are of the opinion that at the date of signature of the financial report there are
reasonable and supportable grounds to believe that the consolidated entity will be able to meet its liabilities from its assets
in the ordinary course of business, for a period of not less than 12 months from the date of this financial report and has
accordingly prepared the financial report on a going concern basis.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in note 27.
23
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Metallica Minerals Limited
('company' or 'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. Metallica
Minerals Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control
ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity
attributable to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged
or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Joint arrangements
Under AASB 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal
structure of the joint arrangement. Metallica Minerals Limited has only one joint operation at the reporting date and no joint
ventures.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. Metallica Minerals Limited has recognised its share of
the jointly held assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred
assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements
under the appropriate classifications. Details of the joint operation are set out in note 29 and note 31.
24
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
Joint ventures
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement. Interests in joint ventures are accounted for using the equity method, after initially being
recognised at cost in the consolidated statement of financial position. Under the equity method, the share of the profits or
losses of the joint venture is recognised in profit or loss and the share of the movements in equity is recognised in other
comprehensive income. Investments in joint ventures are carried in the statement of financial position at cost plus post-
acquisition changes in the consolidated entity's share of net assets of the joint venture. Goodwill relating to the joint venture
is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Income
earned from joint venture entities reduces the carrying amount of the investment.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured
at either amortised cost or fair value depending on their classification. Classification is determined based on both the
business model within which such assets are held and the contractual cash flow characteristics of the financial asset
unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at amortised cost
A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a
business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of
the financial asset represent contractual cash flows that are solely payments of principal and interest.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are measured at
amortised cost. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of
each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition,
based on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable
to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where
it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected
credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present
value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
Restoration, rehabilitation and environmental expenditure
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structure, waste removal, and rehabilitation of the site in accordance with clauses of mining permits. Such costs have
been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.
Estimates of future costs are reassessed at least annually. Changes in estimates relating to areas of interest in the
exploration and evaluation phase are dealt with retrospectively, with any amounts that would have been written off or
provided against under the accounting policy for exploration and evaluation immediately written off.
Restoration from exploration drilling is carried out at the time of drilling and accordingly no provision is required.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
25
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Comparatives
Where required by the Australian Accounting Standards comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2021.
The consolidated entity has carried out a preliminary assessment of the impact of these new and amended Accounting
Standards and Interpretations, and determined that they are unlikely to have a material impact on the consolidated entity's
financial statements in the period of initial application.
Note 2. 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 next
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 consolidated entity based on known information. This consideration extends to the nature of the consolidated
entity's activities, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as
addressed in specific notes, 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 consolidated entity
unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Share-based payment transactions
The consolidated entity 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 either the Binomial or
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 will have no impact on the carrying
amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
26
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Impairment of plant and equipment
The consolidated entity assesses impairment of plant and equipment at each reporting date by evaluating conditions
specific to the consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger exists,
the recoverable amount of the asset is determined.
Significant judgements and assumptions were required in making an estimate of the fair value less costs of disposal of the
capital works in progress associated with the Oresome joint operation The estimated fair value less costs of disposal was
determined based on enquiries of independent parties (refer note 31).
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity 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.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by
the parent entity’s Board of Directors (chief operating decision makers) in assessing performance and determining the
allocation of resources. The consolidated entity is managed primarily on a geographic basis that is the location of the
respective areas of interest (tenements) in Australia. Operating segments are determined on the basis of financial
information reported to the Board which is at the consolidated entity level.
The consolidated entity does not have any products/services it derives revenue from.
Management currently identifies the consolidated entity as having only one operating segment, being exploration and
development of mine projects in Australia. All significant operating decisions are based upon analysis of the consolidated
entity as one segment. The financial results from the segment are equivalent to the financial statements of the consolidated
entity as a whole.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the
allocation of resources to operating segments and assessing their performance.
Note 4. Revenue
Royalty - limestone tenement
Rent
Revenue
Consolidated
2021
$
2020
$
-
49,221
25,769
89,740
49,221
115,509
27
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 4. Revenue (continued)
Accounting policy for revenue recognition
The consolidated entity recognises revenue as follows:
Royalties
Royalties are recognised as revenue when the right to receive payment is established.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Note 5. Other income
Net fair value gain on financial assets at fair value through profit or loss
Government grants
Tenement refunds
Other
Other income
Consolidated
2021
$
2020
$
-
142,544
-
77,798
16,852
60,034
27,034
41,891
220,342
145,811
Accounting policy for government grants
Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will be
received and the consolidated entity will comply with all the attached conditions. Government grants relating to costs are
deferred and recognised in profit or loss over the period necessary to match them with the costs they are intended to
compensate. Government grants relating to the purchase or development of assets, including exploration and evaluation
activities, are deducted from the carrying value of the asset.
The Government grants noted above relate to amounts received in respect of JobKeeper and Cash Flow Boost.
28
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 6. Expenses
Loss before income tax includes the following specific expenses:
Aggregate employee benefits expense
Defined contribution superannuation expense
Equity-settled share-based payments
Other employee benefits expenses
Less
Employee costs capitalised to exploration
Employee benefits expense
Depreciation
Plant and equipment
Finance costs
Interest and finance charges paid/payable on borrowings
Leases
Short-term lease payments
Note 7. Income tax
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 26% (2020: 27.5%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-assessable income
Share based payments
Other non-deductible items
Current year tax losses not recognised
Current year temporary differences not recognised
Income tax expense
29
Consolidated
2021
$
2020
$
19,591
14,420
514,391
27,105
8,100
513,409
548,402
548,614
(175,942)
(24,509)
372,460
524,105
18,421
23,096
-
892
80,166
92,760
Consolidated
2021
$
2020
$
(3,054,991)
(521,340)
(794,298)
(143,369)
(13,505)
-
1,844
(8,877)
2,228
-
(805,959)
673,885
132,074
(150,018)
678,273
(528,255)
-
-
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 7. Income tax (continued)
Deferred tax assets not recognised
Deductible temporary differences and unused tax losses for which no deferred tax assets
have been recognised are attributable to the following:
Unused tax losses
Other deductible temporary differences
Deductible temporary differences offset against taxable temporary differences
Total deferred tax assets not recognised
Consolidated
2021
$
2020
$
6,844,356
179,848
(295,770)
6,836,821
311,046
(578,250)
6,728,434
6,569,617
The above potential tax benefit for tax losses and deductible temporary differences has not been recognised in the
statement of financial position as the recovery of this benefit is uncertain. The tax losses can only be utilised in the future if
the continuity of ownership test is passed, or failing that, the same business test is passed.
Accounting policy for income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to
temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when
the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted,
except for:
●
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting
nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and
the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred
tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for
the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is
probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
Metallica Minerals Limited (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group
continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the group
allocation approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax
consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the
intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a
contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
30
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 8. Current assets - cash and cash equivalents
Cash on hand
Cash at bank
Cash on deposit
Consolidated
2021
$
2020
$
50
3,508,758
4,022,759
50
468,323
2,329,162
7,531,567
2,797,535
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Note 9. Current assets - trade and other receivables
Trade receivables
Loans to other parties
Less: Allowance for expected credit losses
Other receivables
Deferred sales proceeds - HMS plant and tenements
GST receivable
Consolidated
2021
$
2020
$
3,034
20,600
186,017
(186,017)
-
186,017
(186,017)
-
404
-
42,485
12,404
330,000
-
45,923
363,004
Deferred sales proceeds - HMS Plant and tenements
Metallica sold its 50% interest in the Heavy Mineral Sands (HMS) plant and HMS tenements during the 2020 financial year.
The balance in deferred sales proceeds at 30 June 2020 was the final instalment.
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within
30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days
overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
31
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 10. Non-current assets - plant and equipment
Plant and equipment - at cost
Less: Accumulated depreciation
Less: Impairment
Consolidated
2021
$
2020
$
63,911
(53,123)
-
888,340
(848,591)
(16,385)
10,788
23,364
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2019
Additions
Disposals
Impairment reversal
Depreciation expense
Balance at 30 June 2020
Additions
Disposal of subsidiary and joint operation
Adjustment
Depreciation expense
Balance at 30 June 2021
Plant and
equipment
$
Capital works
in progress
$
Total
$
45,931
529
-
-
(23,096)
23,364
5,665
(2,705)
2,885
(18,421)
10,788
500,000
-
(1,596,400)
1,096,400
-
545,931
529
(1,596,400)
1,096,400
(23,096)
-
-
-
-
-
-
23,364
5,665
(2,705)
2,885
(18,421)
10,788
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of plant and equipment over their
expected useful lives as follows:
Plant and equipment
33% per annum
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Note 11. Non-current assets - exploration and evaluation
Exploration and evaluation expenditure
32
Consolidated
2021
$
2020
$
1,183,081
2,090,729
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 11. Non-current assets - exploration and evaluation (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2019
Additions
Impairment of assets
Balance at 30 June 2020
Additions
Disposal of subsidiary and joint operation
Balance at 30 June 2021
Exploration &
evaluation
$
Total
$
2,055,260
188,141
(152,672)
2,055,260
188,141
(152,672)
2,090,729
1,183,081
(2,090,729)
2,090,729
1,183,081
(2,090,729)
1,183,081
1,183,081
The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent upon successful
development and commercial exploitation or sale of the respective areas of interest.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is
carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered
through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are
continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or
otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the
expenditure incurred thereon is written off in the year in which the decision is made.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying
amount of an exploration and evaluation asset may exceed its recoverable amount.
Note 12. Non-current assets - mining development
Mining development - at cost
Less: Impairment
Consolidated
2021
$
2020
$
-
-
-
4,214,838
(4,214,838)
-
Mining development represents the consolidated entity's share of the mining development assets in the Oresome joint
operation (refer note 29).
Accounting policy for mining assets
Once an undeveloped mining project has been established as commercially viable and approval to mine has been given,
expenditure other than land, buildings, plant and equipment is capitalised under "Mining development" together with any
amount transferred from "Exploration and evaluation".
Amortisation of mining development is computed by the units of production basis over the estimated proved and probable
reserves. Proved and probable mineral reserves reflect estimated quantities of economically recoverable reserves which
can be recovered in the future from known mineral deposits. These reserves are amortised from the date on which
production commences. The amortisation is calculated from recoverable proven and probable reserves and a
predetermined percentage of the recoverable measured, indicated and inferred resource. This percentage is reviewed
annually.
33
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 12. Non-current assets - mining development (continued)
Restoration costs expected to be incurred are provided for as part of development phase that give rise to the need for
restoration.
Note 13. Non-current assets - other
Consolidated
2021
$
2020
$
Security deposits - tenements and rental properties
48,443
54,493
Note 14. Current liabilities - trade and other payables
Trade payables
GST payable
Other payables
Consolidated
2021
$
2020
$
375,401
-
6,621
202,623
41,346
15,750
382,022
259,719
Refer to note 20 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Note 15. Current liabilities - employee benefits
Annual leave
Long service leave
Accounting policy for employee benefits
Consolidated
2021
$
2020
$
6,144
5,303
54,681
54,828
11,447
109,509
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
34
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 16. Non-current liabilities - deferred tax
Consolidated
2021
$
2020
$
Deferred tax liability comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Exploration and evaluation expenditure
Other taxable temporary differences
Deductible temporary differences offset against taxable temporary differences (note 7)
295,770
-
(295,770)
574,950
3,300
(578,250)
Deferred tax liability
Note 17. Equity - issued capital
-
-
Consolidated
2021
Shares
2020
Shares
2021
$
2020
$
Ordinary shares - fully paid
557,732,777 324,047,408 50,896,470 36,436,227
Movements in ordinary share capital
Details
Balance
Balance
Shares for services rendered
Rights issue
Follow-on placement
Transfer from share-based payments
reserve (note 18)
Share issue costs
Date
Shares
Issue price
$
1 July 2019
324,047,408
36,436,227
30 June 2020
25 November 2020
27 April 2021
27 April 2021
324,047,408
330,000
162,188,704
71,166,665
36,436,227
6,600
4,865,661
2,135,000
$0.020
$0.030
$0.030
-
-
$0.000
$0.000
8,150,226
(697,244)
Balance
30 June 2021
557,732,777
50,896,470
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the
company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Rights issue and follow-on placement
On 25 March 2021, the company issued a Prospectus (Rights Issue Prospectus) for a renounceable pro rata entitlement
issue (Offer) fully underwritten by Mahe Capital Pty Ltd (Mahe) for the issue of up to 162,188,704 Shares and 1 free
attaching Option for every 2 Shares taken up under the Offer, to raise up to $4,865,661.
Pursuant to the company's underwriting agreement with Mahe for the Offer, the company also agreed to issue 9,731,322
Options to Mahe, based on the amount of funds sought under the Offer.
35
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 17. Equity - issued capital (continued)
On 23 April 2021, the company issued a Supplementary Prospectus pursuant to which it advised that, as a result of excess
demand under the Shortfall Offer (as defined in the Rights Issue Prospectus), it had agreed to issue an additional
71,166,665 New Shares and 35,583,334 attaching New Options under the Offer to raise an additional $2,135,000 (Follow-
on Placement). As a result, the number of Options to which Mahe became entitled as underwriter of the Offer increased to
14,001,322 Options.
The total amount raised by the rights issue and follow-on placement was $7,000,661.
Options
The company issued a total of 116,677,686 free attaching options (New Options) in connection with the Rights Issue
Prospectus and Follow-on Placement on 27 April 2021 on the basis of 1 New Option for every 2 shares taken up. The
options are listed on the Australian Securities Exchange and are exercisable at $0.06 each at any time prior to 5.00pm
(AEST) on 25 March 2024. There are no participation rights or entitlements inherent in the options and an option holder will
not be entitled to participate in new issues of capital offered to the company's shareholders during the term of the option.
A further 14,001,322 options were issued to the underwriter (refer note 33) which have the same terms as all other New
Options.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital are to safeguard its ability to continue as a going concern, so
that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure
to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
The capital structure of the consolidated entity consists of equity attributable to equity holders of the parent entity
comprising of issued capital, reserves and accumulated losses as disclosed in the statement of changes in equity. In
common with many other exploration companies, the parent raises finance for the consolidated entity's exploration and
appraisal activities in discrete tranches.
Management effectively manages the consolidated entity's capital by assessing the consolidated entity's financial risks and
adjusting its capital structure in response to changes in these risks and in the market.
There are no externally imposed capital requirements.
The capital risk management policy remains unchanged from the 2020 Annual Report.
The consolidated entity monitors capital on the basis of its working capital position (i.e. liquidity risk). The net working
capital of the consolidated entity at 30 June 2021 was $7,184,021 (2020: $2,791,311).
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Note 18. Equity - reserves
Share-based payments reserve
Consolidated
2021
$
2020
$
219,747
8,158,563
36
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 18. Equity - reserves (continued)
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services. During the 2021 financial year, the reserve
balance for options that had been exercised or lapsed was transferred to issued capital. When the equity benefits are
exercised or lapsed the value is transferred to issued capital.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2019
Share based payments
Balance at 30 June 2020
Share based payments
Transfer to issued capital (note 17)
Balance at 30 June 2021
Note 19. Equity - dividends
Share-based
payments
reserve
$
8,150,463
8,100
8,158,563
211,410
(8,150,226)
219,747
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 20. Financial instruments
Financial risk management objectives
Risk management is carried out under policies set by the board of directors. The board provides principles for overall risk
management, as well as policies covering specific areas.
The board monitors and manages the financial risk relating to the operations of the consolidated entity. The consolidated
entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest
rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
consolidated entity. The consolidated entity does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
Market risk
Foreign currency risk
The consolidated entity does not currently have any significant exposure to foreign currency risk.
Price risk
The consolidated entity does not currently have any significant exposure to price risk.
Interest rate risk
The consolidated entity’s main interest rate risk arises from cash and cash equivalents and held to maturity investments.
37
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 20. Financial instruments (continued)
Consolidated
Cash at bank
Cash on deposit
2021
2020
Weighted
average
interest rate
%
Weighted
average
interest rate
%
Balance
$
Balance
$
-
0.22%
3,508,758
4,022,759
-
0.78%
468,323
2,329,162
Net exposure to cash flow interest rate risk
7,531,517
2,797,485
At 30 June 2021, if interest rates had increased/decreased by 25 basis points (bps) from the year end rates with all other
variables held constant, post-tax loss for the year would have been $18,829 lower/higher (2020 changes of 25 bps: $6,994
lower/higher), mainly as a result of higher/lower interest income from cash and cash equivalents and held to maturity
investments.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate
to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the
carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position
and notes to the financial statements. The consolidated entity does not hold any collateral.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves by continuously monitoring actual
and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2021
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
375,401
6,621
382,022
-
-
-
-
-
-
-
-
-
375,401
6,621
382,022
38
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 20. Financial instruments (continued)
Consolidated - 2020
Non-derivatives
Non-interest bearing
Trade payables
BAS payable
Other payables
Total non-derivatives
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
202,623
41,346
15,750
259,719
-
-
-
-
-
-
-
-
-
-
-
-
202,623
41,346
15,750
259,719
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Due to their short-term nature the carrying amounts of financial instruments reflect their fair value.
Note 21. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated
entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Note 22. Remuneration of auditors
Consolidated
2021
$
2020
$
340,939
4,537
-
14,420
370,707
13,379
2,541
8,100
359,896
394,727
During the financial year the following fees were paid or payable for services provided by Moore Australia Audit, the auditor
of the company:
Audit services - Moore Australia Audit (2020: BDO Audit Pty Ltd)
Audit or review of the financial statements
Other services - related practices of Moore Australia Audit (2020: related practices of BDO
Audit Pty Ltd)
Tax compliance
Consolidated
2021
$
2020
$
40,000
53,956
-
18,771
40,000
72,727
39
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 23. Contingent assets
In respect of the disposal of the SCONI Project in September 2017, additional consideration of $2,500,000 in cash or
shares in Australian Mines Limited (the Production Payment), will be payable to the company on commencement of
Australian Mines Limited achieving commercial production on the project. This additional consideration has not been
recognised in the 30 June 2021 financial statements, as the receipt of the additional consideration is not virtually certain.
The commencement of commercial production from the SCONI Project requires favourable commodity prices and markets,
availability of significant funding and various government approvals.
Note 24. Contingent liabilities
The consolidated entity does not believe it has any contingent liability at 30 June 2021.
Note 25. Commitments
Commitments for minimum expenditure on exploration permits
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Commitments for environmental authority annual fee
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Tenement rentals
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Oresome Joint Venture - the group's share of the tenement commitments made jointly with
other joint venturers
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Consolidated
2021
$
2020
$
331,509
725,332
162,550
1,145,400
1,056,841
1,307,950
3,505
8,182
3,505
14,020
11,687
17,525
4,055
12,010
11,670
46,680
16,065
58,350
-
-
301,789
1,828,357
-
2,130,146
Commitments for minimum expenditure on exploration permits
The consolidated entity has certain commitments to meet minimum annual expenditure requirements on the mineral
exploration assets it has an interest in. Any shortfalls are carried forward to subsequent years.
Operating lease commitments
The lease of offices as at 30 June 2021 was on a 'month to month' basis with three months' notice required to terminate the
lease. Notice to leave was provided on 8 July 2021.
40
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 26. Related party transactions
Parent entity
Metallica Minerals Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 28.
Joint operations
Interests in joint operations are set out in note 29.
Key management personnel
Disclosures relating to key management personnel are set out in note 21 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
2021
$
2020
$
Other transactions:
Subscription for new ordinary shares by key management personnel as a result of the rights
issue
96,000
-
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 27. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Other comprehensive income for the year, net of tax
Total comprehensive income
Parent
2021
$
2020
$
(2,100,954)
(2,145,385)
-
-
(2,100,954)
(2,145,385)
41
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 27. Parent entity information (continued)
Statement of financial position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets/(liabilities)
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity/(deficiency)
Parent
2021
$
2020
$
7,540,777
2,813,995
1,741,535
5,617,184
9,282,312
8,431,179
5,065,738
8,635,077
-
-
5,065,738
8,635,077
4,216,574
(203,898)
50,896,470 36,436,227
8,158,564
(44,798,689)
219,747
(46,899,643)
4,216,574
(203,898)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021 and 30 June 2020.
Contingent liabilities
The parent entity believes it has no contingent liabilities as at 30 June 2021 and 30 June 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June 2020.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
except for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
42
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 28. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1:
Name
Principal place of business /
Country of incorporation
Ownership interest
2020
2021
%
%
NORNICO Pty Limited
Greenvale Operations Pty Limited*
Lucky Break Operations Pty Limited
PGE Pty Limited**
Cape Flattery Pty Limited (formerly Scandium Pty
Limited)
Phoenix Lime Pty Limited
Touchstone Resources Pty Limited
Oresome Australia Pty Limited***
Oresome Bauxite Pty Limited***
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100%
100%
100%
100%
100%
100%
100%
-
-
100%
100%
100%
-
100%
100%
100%
100%
100%
Greenvale Operations Pty Limited is a wholly owned subsidiary of NORNICO Pty Limited.
PGE Pty Limited is a wholly owned subsidiary of Lucky Break Operations Pty Limited.
*
**
*** Oresome Bauxite Pty Limited is a wholly owned subsidiary of Oresome Australia Pty Limited. On 3 November 2020,
the consolidated entity disposed of Oresome Australia Pty Limited and Oresome Bauxite Pty Limited (refer note 31).
Unless otherwise stated, the subsidiaries have share capital consisting solely of ordinary shares that are held directly by
the consolidated entity, and the proportion of ownership interests is equal to the proportion of voting rights held by the
consolidated entity.
Significant restrictions
There are no significant restrictions on the ability of the consolidated entity to access or use the assets and settle the
liabilities of the consolidated entity.
Note 29. Interests in joint operations
The consolidated entity has recognised its share of jointly held assets, liabilities, revenues and expenses of joint
operations. These have been incorporated in the financial statements under the appropriate classifications. Information
relating to joint operations that are material to the consolidated entity are set out below:
Name
Principal place of business /
Country of incorporation
Ownership interest
2020
2021
%
%
Oresome Joint Venture
Australia
-
50%
On 1 August 2014 Metallica Minerals Limited executed a joint venture (JV) agreement with a private Chinese investor. The
JV is between Oresome Australia Pty Ltd (a wholly owned subsidiary of Metallica Minerals Ltd) and Ozore Resources Pty
Ltd (Ozore) (wholly owned by the Chinese investor). Under the JV agreement, Ozore paid a total of A$7,500,000 to
develop the company's Urquhart Point HMS Project including the construction of a Heavy Mineral Sands (HMS) plant in
South Africa, and explore for other Heavy Mineral Sands and Bauxite deposits on its tenements on the western side of
Queensland's Cape York Peninsula.
The Oresome joint arrangement was classified as a joint operation under Australian Accounting Standards. Metallica
Minerals Limited recognised its direct right to the assets, liabilities, revenues and expenses of joint operations and its share
of any jointly held or incurred assets, liabilities, revenues and expenses.
43
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 29. Interests in joint operations (continued)
During 2021 financial year, the company entered into an agreement to sell its wholly-owned subsidiary companies
Oresome Australia Pty Ltd, Oresome Bauxite Pty Ltd and their respective 50% interest holdings in the Urquhart Bauxite
joint venture (JV). The sale proceeds comprise the following cash payments: $50,000 on the announcement of the sale;
$50,000 within 30 days of the signing of the Share Sale Agreement, which is still outstanding at the date of this report, and
contingent consideration of $200,000. Additionally, the company will be paid royalties based on bauxite and sandstone
sales. If at any time the acquirer transfers or disposes of the shares in Oresome, the profit (if any) on that sale will be
shared 50% with Metallica Minerals Limited (refer note 31).
Note 30. Events after the reporting period
At an Extraordinary General Meeting (EGM) held on 7 July 2021, the company's shareholders approved the following:
1) A new Employee Equity Incentive Plan.
2) The issue of a total of 4,030,000 Performance Rights to the following Directors: Scott Waddell, Theo Psaros, Mark
Bojanjac, and Brad Sampson.
3) Cashless loans to the following Directors: Scott Waddell, Theo Psaros and Andrew Gillies, for the exercise of employee
options held by them.
At the aforementioned EGM, the shareholders also ratified the issue of options to Mahe Capital Pty Ltd, ratified the issue of
shares and options to persons nominated by Mahe Capital Pty Ltd, and confirmed the appointment of Mark Bojanjac and
Brad Sampson as Directors.
On 27 July 2021, the company allotted 10m shares for the exercise of employee options held by Directors, and entered
into non-cash loan agreements with three Directors as outlined in the EGM held on 7 July 2021 and Notice of Meeting
dated 7 and 8 June 2021.
On 23 July 2021, the company entered into a 4-year lease for office premises in Fortitude Valley.
On 2 August 2021, the company issued 7,160,000 performance rights to Directors and employees based on the terms
detailed at the EGM held on 7 July 2021 and Notice of Meeting dated 7 and 8 June 2021.
On 5 August 2021, the company announced the signing of a Memorandum of Understanding (“MoU”) with Diatreme
Resources (ASX: DRX) for a potential joint venture on the Clermont Gold Copper Project which comprises EPM
17968. The company is to undertake due diligence on the project for an exclusive period of thirty (30) days prior to making
a decision on whether to invest in further exploration.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Note 31. Disposal of subsidiary and joint operation
On 3 November 2020, the consolidated entity disposed of its wholly-owned subsidiaries Oresome Australia Pty Ltd,
Oresome Bauxite Pty Ltd and their respective 50% interest holdings in the Urquhart Bauxite joint venture (JV). The sale
proceeds comprise the following cash payments: $50,000 on the announcement of the sale; $50,000 within 30 days of the
signing of the Share Sale Agreement. The second payment of $50,000 has not been made after many attempts by the
company and is unlikely to be paid at the present time and is considered doubtful. The doubtful debt was provided for in
the 2nd half of the 2021 financial year and consequently is not disclosed as doubtful in the company's 31 December 2020
half-year financial report. Contingent consideration of $200,000 and additional royalties based on possible bauxite and
sand sales are also owing on certain events, which are unlikely to occur at the time of this report. If at any time the acquirer
transfers or disposes of the shares in Oresome, the profit (if any) on that sale will be shared 50% with Metallica Minerals
Limited. The fair value of the contingent consideration has been assessed as nil.
Consideration received
Cash received
44
Consolidated
2021
$
50,000
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 31. Disposal of subsidiary and joint operation (continued)
Book values of net assets over which control was lost
Cash and cash equivalents
Security deposits
Exploration and evaluation assets
Property, plant and equipment
Other payables
Employee provisions
Net assets derecognised
(Gain)/loss on disposal of subsidiary and joint operation
Consideration received/receivable
Impairment of consideration receivable
Net assets disposed of
Net loss on disposal of subsidiary and joint operation
Net cash inflow/(outflow) arising on disposal
Cash consideration received
Cash and cash equivalents disposed of
Note 32. Earnings per share
Consolidated
2021
8,263
21,855
2,090,729
2,705
(9,303)
(14,495)
2,099,754
Consolidated
2021
$
(100,000)
50,000
2,099,754
2,049,754
Consolidated
2021
50,000
(8,263)
41,737
Consolidated
2021
$
2020
$
Loss after income tax attributable to the owners of Metallica Minerals Limited
(3,054,991)
(521,340)
Weighted average number of ordinary shares used in calculating basic earnings per share
365,800,939 324,047,408
Weighted average number of ordinary shares used in calculating diluted earnings per share 365,800,939 324,047,408
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.84)
(0.84)
(0.16)
(0.16)
Share options are considered to be potential ordinary shares but were anti-dilutive in nature for the 30 June 2021 financial
year and were not included in the calculation of diluted earnings per share. These options could potentially dilute basic
earnings per share in the future.
45
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 32. Earnings per share (continued)
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Metallica Minerals Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Note 33. Share-based payments
Incentive Plan
At the Annual General Meeting held on 29 November 2016, the company's shareholders approved the issue of share rights
to key employees under the company's incentive plan approved the Board of Directors on 24 October 2016. The purpose
of the incentive plan is to:
(a) assist in the reward, retention and motivation of participants;
(b) align the interests of participants with the interests of the company's shareholders;
(c) promote the long-term success of the company and provide greater incentive for participants to focus on the
company's longer term goals;
(d) link the reward of participants to the performance of the company and the creation of shareholder value; and
(e) provide participants with the opportunity to share in any future growth in value of the company.
Under the plan eligible participants may be granted share rights for nil consideration (unless otherwise provided under the
relevant offer), which vest if certain vesting conditions are met. Upon vesting, subject to any exercise conditions, each
share right entitles the participant to one share in the company.
On 11 November 2017 the company granted 1,000,000 share rights each to John Haley (CFO) and Chris Broadhead
(former General Manager). These rights vest on the commencement of commercial production from the company's
Urquhart Bauxite Project and the fair value of the rights at grant date was $101,981. Chris Broadhead's rights have been
forfeited following his resignation and John Haley's rights expired on 9 November 2019.
On 23 December 2019, the company granted 10,000,000 unlisted options to its Directors pursuant to the employee equity
incentive plan as approved at the company's annual general meeting on 29 November 2019. Theo Psaros and Andrew
Gillies were each granted 3,000,000 options and Scott Waddell was granted 4,000,000 options, for nil consideration. The
options will vest if the Metallica Minerals Limited share price trades at more than 2.9 cents for 5 days. The options are
exercisable at 2.9 cents and expire on 23 June 2022. Any shares issued on exercise of the options will be escrowed until
23 December 2022. The value of these options at the grant date was $37,000.
Other option issues
On 27 April 2021, the company issued 14,001,322 listed options to Mahe Capital Pty Ltd (Mahe) pursuant to the company's
underwriting agreement with Mahe (refer note 17). The options vested on the grant date and are exercisable at 6 cents
through to 25 March 2024. The value of the options at the grant date was $196,990.
Set out below are summaries of options granted:
2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
23/12/2019
27/04/2021
23/06/2022
25/03/2024
$0.029 10,000,000
$0.060
-
- 14,001,322
10,000,000 14,001,322
-
-
-
- 10,000,000
- 14,001,322
- 24,001,322
46
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 33. Share-based payments (continued)
Weighted average exercise price
$0.029
$0.060
$0.000
$0.000
$0.047
Note that the exercise price of the 10m options granted 23/12/2019 decreased from $0.030 to $0.029 due to the discount
that arose on the rights issue, where the Prospectus was announced on 25 March 2021.
2020
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
23/12/2019
23/06/2022
$0.029
- 10,000,000
- 10,000,000
-
-
- 10,000,000
- 10,000,000
Weighted average exercise price
$0.000
$0.029
$0.000
$0.000
$0.029
The weighted average remaining contractual life of options outstanding at 30 June 2021 was 2.01 years (30 June 2020:
1.98 years).
Set out below are summaries of share rights granted under the incentive plan:
2020
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
09/11/2017
09/11/2019
$0.000
1,000,000
1,000,000
-
-
-
-
(1,000,000)
(1,000,000)
-
-
*
The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2019
was $0.025.
Measurement of fair values
The fair value of options granted during the current and prior financial years was measured using the Black-Scholes option
pricing model.
Options granted:
For the options granted during the current and prior financial year, the valuation model inputs used to determine the fair
value at the grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
23/12/2019
27/04/2021
23/06/2022
25/03/2024
$0.012
$0.029
$0.029
$0.060
88.00%
100.58%
-
-
0.80%
0.11%
$0.0037
$0.0140
The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for any
expected changes to future volatility due to publicly available information.
Share-based payments expense
Expense from share-based payments
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees.
47
Consolidated
2021
$
2020
$
14,420
8,100
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 33. Share-based payments (continued)
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for
the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of
cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do
not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No
account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already
recognised in previous periods.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and
new award is treated as if they were a modification.
Note 34. Cash flow information
Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
2021
$
2020
$
Loss after income tax expense for the year
(3,054,991)
(521,340)
Adjustments for:
Depreciation and amortisation
Impairment of exploration and evaluation expenditure, and plant and equipment
Share-based payments
Adjustment to plant and equipment - non-cash
Net loss on disposal of non-current assets
Net fair value (gain)/loss on financial assets at fair value through profit or loss
Impairment reversals
Expenses - non-cash
Change in operating assets and liabilities:
Increase in trade and other receivables
Increase/(decrease) in trade and other payables
Decrease in employee benefits
Net cash used in operating activities
18,421
-
14,420
(2,885)
2,049,754
-
-
6,600
23,096
152,672
8,100
-
-
(16,852)
(1,096,400)
-
(12,919)
131,606
(83,567)
(2,713)
(90,083)
(8,005)
(933,561)
(1,551,525)
48
Metallica Minerals Limited
Notes to the financial statements
30 June 2021
Note 34. Cash flow information (continued)
Non-cash investing and financing activities
Options issued to underwriter
Consolidated
2021
$
2020
$
196,990
-
49
Moore Australia Audit
Level 12, 10 Eagle Street
Brisbane QLD 4000
GPO Box 475
Brisbane QLD 4001
T +61 7 3340 3800
F +61 7 3340 3700
www.moore-australia.com.au
Independent Audit Report
To the members of Metallica Minerals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Metallica Minerals Limited (the Company) and its subsidiaries (the
“Group”), which comprises the consolidated statement of financial position as at 30 June 2021, 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 statements, including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year then ended; 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 auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including
Independence Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current 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.
Accounting for sale of subsidiary and joint operation
Refer to Note 30 Disposal of subsidiary and joint operation
The Group disposed of its wholly-
owned subsidiaries Oresome
Australia Pty Ltd, Oresome Bauxite
Pty Ltd and their respective 50%
interest holdings in the Urquhart
Bauxite joint venture (“JV”). The
loss on sale of the above
represents a significant balance.
Therefore, it is important to
determine that the sale of the
above subsidiaries and their
respective 50% held JV are
accounted correctly in accordance
with accounting standards. As
such, we have determined this is a
key audit matter.
We have evaluated management’s assessment of the
accounting treatment of the sale, and performed, amongst
others, the following procedures:
• Reviewing supporting documentation to support the sale
of the subsidiaries and their respective 50% holdings in
the JV as well as related correspondence
• Assessing the accounting for the disposal and calculation
of the gain on disposal
• Assessing the possibility of any contingent sales
consideration
• Assessing the appropriateness of the disclosures
included in Note 30 to the financial report.
Moore Australia Audit (QLD/NNSW) – ABN 33 050 150 130.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
51
Carrying value of Capitalised Exploration & Evaluation Assets
Refer to Note 11 Exploration & Evaluation Assets
The carrying value of the Group's
exploration and evaluation asset is
impacted by the Group's ability, and
intention, to continue to explore this
asset. The results of exploration
work also determine to what extent
the mineral reserves and resources
may or may not be commercially
viable for extraction. This impacts
the ability of the Group to recover
the carrying value of the exploration
and evaluation assets either
through the successful
development or sale. Due to the
quantum of this asset and the
subjectivity involved in determining
whether it's carrying value will be
recovered through successful
development or sale, we have
determined this is a key audit
matter.
We have critically evaluated management’s assessment of
each impairment trigger per AASB 6 Exploration for and
Evaluation of Mineral Resources, including but not limited to:
• Reviewing the directors' assessment of the carrying value
of the exploration and evaluation costs, ensuring that
management have considered the effect of potential
impairment indicators, commodity prices and the stage of
the Group's project against the standard of AASB 6
• Obtaining from management a schedule of areas of
interest held by the Group and assessed as to whether
the Group had rights of tenure over the relevant
exploration areas by obtaining external confirmation from
the relevant government agency and also considered
whether the Group maintains tenements in good standing
• Making enquiries of management with respect to the
status of ongoing exploration programs in the respective
areas of interest and assessing the Group's cashflow
budget for the level of budgeted spend on exploration
projects
• Considering whether any other data exists which
indicates that the carrying amount of the exploration and
evaluation asset that is unlikely to be recovered in full
from successful development or by sale
• Assessed the appropriateness of the disclosures
included in Note 11 to the financial report.
Going concern
Refer to Note 1 Significant accounting policies, detailing going concern
Note 1 of the financial statements
outlines the basis of preparation of
financial statements which indicates
being prepared on a going concern
basis. As the group generates no
revenue and is reliant on funding
from other sources such as capital
raising, there is significant
judgement involved in determining
whether a material uncertainty
relating to going concern exists and
is critical to the understanding of
the financial statements as a whole.
As a result, this matter was key to
our audit.
In evaluating management’s assessment of the going
concern assumption, we performed the following procedures
but not limited to:
• Obtaining and evaluating management’s assessment of
the group’s ability to continue as a going concern
• Reviewing management’s assumptions in the cash flow
forecasts to assess whether current cash levels along
with expected cash inflows and expenditure can sustain
the operations of the Group for a period of at least 12
months from the date of signing of the financial
statements
• Assessing the cash flow forecasts provided by
management and challenging the assumptions therein in
to determine if there is consistency with management’s
intention and stated business and operational objectives
• Performing a sensitivity analysis over cash flow forecasts
as prepared by management based on a number of
alternative scenarios
• Assessed the adequacy of the disclosures in relation to
going concern included in Note 1 to the financial report.
52
Other information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
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 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 as included in pages 7 to 14 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Metallica Minerals Limited, for the year ended 30 June 2021
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Murray McDonald
Director – Audit and Assurance
Moore Australia Audit (QLD/NNSW)
Brisbane
19 August 2021
53
Moore Australia Audit (QLD/NNSW)
Chartered Accountants
Metallica Minerals Limited
Shareholder information
30 June 2021
The shareholder information set out below was applicable as at 10 August 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Ordinary shares
% of total
Options over ordinary
shares
% of total
Number
of holders
shares
issued
Number
of holders
shares
issued
116
356
276
884
529
5.37
16.47
12.77
40.91
24.48
2,161
100.00
24
40
34
154
141
393
6.11
10.18
8.65
39.18
35.88
100.00
Holding less than a marketable parcel
814
37.67
162
41.22
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
Number held
114,440,656
29,422,409
17,407,408
11,012,502
8,190,000
8,050,000
6,500,000
6,100,000
5,500,000
5,000,000
5,000,000
4,910,966
4,500,000
4,000,000
4,000,000
3,843,430
3,500,000
3,496,248
3,444,444
3,370,371
shares
issued
20.16
5.18
3.07
1.94
1.44
1.42
1.14
1.07
0.97
0.88
0.88
0.87
0.79
0.70
0.70
0.68
0.62
0.62
0.61
0.59
251,688,434
44.33
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
DOSTAL NOMINEES PTY LTD
ROOKHARP CAPITAL PTY LIMITED
PLAN-1 PTY LTD
SHADBOLT FUTURE FUND (TOTTENHAM) PTY LTD
MR GRAHAM RAYMOND DOW
BROWNLOW PR PTY LTD
GEFRATO TRADING PTY LTD
CALAMA HOLDINGS PTY LTD
CAROJON PTY LTD
LATSOD PTY LTD
BONDLINE LIMITED
MACFORBES SUPER PTY LTD
MRS CAROLYN DOW
ANDREW SCOTT VICTOR WADDELL
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
MR BILAL AHMAD
BNP PARIBAS NOMINEES PTY LTD
MRS ZI JUAN QI
MRS YAN WANG
54
Metallica Minerals Limited
Shareholder information
30 June 2021
Twenty largest quoted option holders
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR BILAL AHMAD
TANGO88 PTY LTD
DOSTAL NOMINEES PTY LTD
MR MOBEEN IQBAL
MR BENJAMIN DAVID MOORE
MR PUNIT ARORA & MRS SHWETA ARORA
MRS BEATRICE ZIMMER
ROOKHARP CAPITAL PTY LIMITED
MR MICHAEL SOUCIK & MRS HEATHER SOUCIK
GEFRATO TRADING PTY LTD
MR WAFA MUHAMMAD IQBAL
CHALLENGE AURORA PTY LTD
BUCKINGHAM INVESTMENT FINANCIAL SERVICES PTY LTD
LATSOD PTY LTD
MS ANGELA MARGARET DAY
TROCA ENTERPRISES PTY LTD
SCINTILLA STRATEGIC INVESTMENTS LIMITED
MR ANTHONY DE NICOLA & MRS TANYA LOUISE DE NICOLA
TRANSOM INVESTMENTS PTY LTD
Unquoted equity securities
Options over ordinary shares issued
Substantial holders
Substantial holders in the company are set out below:
ILWELLA PTY LTD
DOSTAL NOMINEES PTY LTD
Voting rights
The voting rights attached to ordinary shares are set out below:
Options over
ordinary
shares
ordinary
shares
% of total
options
41,666,667
11,200,000
7,000,000
3,669,167
2,555,000
2,000,000
1,840,000
1,791,921
1,666,666
1,636,904
1,575,000
1,310,586
1,100,000
1,094,000
1,000,000
1,000,000
1,000,000
1,000,000
825,000
816,759
31.88
8.57
5.36
2.81
1.96
1.53
1.41
1.37
1.28
1.25
1.21
1.00
0.84
0.84
0.77
0.77
0.77
0.77
0.63
0.63
85,747,670
65.65
Number
on issue
Number
of holders
8,160,000
8
Ordinary shares
% of total
Number held
shares
issued
111,476,432
34,824,957
19.64
6.13
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
55