ANNUAL
REPORT
ABN 74 111 977 354
Corporate Directory
Directors
Gerard Anderson
Tim Wither
Kevin Malaxos
Martin Janes
Steven Zaninovich
Company Secretary
Rajita Alwis
Acting Chairman
Managing Director
Non-executive Director
Non-executive Director
Non-executive Director
Registered Office
246 Angas Street
Adelaide, South Australia 5000
Postal Address
GPO Box 1167
Adelaide SA 5001
Share Registry
Computershare Investor Services
Level 5, 115 Grenfell Street
Adelaide, South Australia 5000
Telephone +61 8 8236 2300
Facsimile +61 8 8236 2305
Auditor
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
Adelaide, South Australia 5000
Banker
National Australia Bank
48 Greenhill Road
Wayville, South Australia 5034
Stock Exchange Listing
Australia Securities Exchange (Adelaide)
Maximus Resources Limited shares
are listed on the Australian Securities Exchange
ASX codes
MXR
MXROD
Maximus Resources Limited
Letter from Chairman
Dear Shareholders
On behalf of the Board of Maximus Resources Limited (Maximus or the Company), I am pleased to present to
you the 2020 Annual Report for the Company.
What a year it has been. We started the year heavily in debt and enmeshed in a protracted sales process of the
Burbanks Mill. In September 2019, Mineral Ventures Pty Ltd purchased 100% of the Burbanks assets for a cash
consideration of $5.2 million. That cash made it possible for Maximus to repay all debts.
In November 2019, Kevin Malaxos decided to step-down as Managing Director after 9.5 years. Kevin agreed to
remain on the board as a non-executive director to ensure his replacement received a thorough hand-over.
In May 2020 Maximus, assisted greatly by GTT Ventures Pty Ltd, undertook a pro-rata 1:1 non renounceable rights
issue at a price of $0.03/share to raise $170,314 before costs. Later in May 2020, the rights issue shortfall was
placed to professional and sophisticated investors raising a further $1,135,256 before costs. For the first time in
two years, MXR had sufficient funds to advance exploration of the Company’s Spargoville gold assets.
Subsequent to year end in August 2020:
• Maximus recruited Mr Tim Wither as Managing Director. Tim is a Mining Engineer and mining manager who
brings a wealth of experience and drive to run the Company. Tim immediately recruited a very capable and
experienced geological team lead by structural geology expert Dr Travis Murphy as Chief Geologist and Mr
Andrew Wood as Senior Exploration Geologist. Andrew has extensive experience in the Kambalda /
Widgemooltha geology and resides in the region.
In August 2020 the Company completed a short aircore drilling program over the S5 and S13 geophysical
targets near Wattle Dam to see if the targets were potential repetitions of the high-grade gold mineralisation
seen at the nearby the historic Wattle Dam orebody. Encouragingly at the S5 target, hole S05AC001
intersected 3m at 83.3g/t Au from 25m. This high-grade intercept will be followed up during
October/November 2020.
•
The impact of COVID19 has thrown up many challenges to the Company. For a considerable time, movements
intra-state in Western Australia were restricted which prevented access to the Spargoville area. The ongoing WA
hard border lockdown still prevents or restricts entry to the State. These operational issues have been overcome
as the Managing Director and the exploration team are domiciled in Western Australia.
I believe Maximus can now look forward with confidence that in 2021 we will take significant steps towards the
Company extending its exploration success, and becoming a long-term gold producer.
Our plans are clear - to produce gold from Spargoville where we have a JORC 2012 Combined Mineral Resource of
1.45 million tonnes containing 112,000 oz of gold across five known gold deposits and to systematically explore to
identify new gold resources for future development. We plan to progress these projects sequentially through the
project approval process and advance to production as quickly as possible. Revenue from these operations will fund
ongoing exploration.
We are very confident that there are repeat Wattle Dam-style orebodies to be found. During its life, the Wattle Dam
gold mine was the richest grade producing gold mine in Australia delivering over 260,000 oz of gold at an average
AISC of < $700.
Spargoville is highly prospective for gold and nickel. So far, the new team, aided with an expansive geological
database inherited from Ramelius Resources Limited, has identified over 60 gold and nickel targets within the
Company’s 48 km2 of Spargoville tenements that require drill evaluation.
In October 2020, flora and fauna studies commenced at Eagle’s Nest, Larkinville and the paleo-channel gold deposit
to ensure the long-lead studies are completed to permit orderly mine development.
The support of our Shareholders has been critical to the Company being well placed to rapidly advance its exploration
and development plans. I especially acknowledge and thank the Board – Mr Kevin Malaxos, Mr Martin Janes and Mr
Steve Zaninovich and the Management of the Company for their hard work throughout a turbulent and difficult year.
We all look forward to the exciting opportunities now before the Company.
Your Sincerely
Gerard Anderson
Acting Chairman
Maximus Resources Limited
Annual Report 2020
Directors' report
Auditor's Independence Declaration
Financial statements
Consolidated statements of profit or loss and other comprehensive income
Consolidated statements of financial position
Consolidated statements of changes in equity
Consolidated statements of cash flows
Notes to the consolidated financial statements
Directors' declaration
Independent auditor's report to the members
Tenemenent Report Schedule
ASX Additional Information
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6
15
16
17
18
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20
39
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Page 5 Maximus Resources Limited
Directors' Report
30 June 2020
Directors' report
Your directors present their report on Maximus Resources Limited (“the Company” or “Maximus”) and its controlled entities
(referred to hereafter as the Group) for the year ended 30 June 2020
Directors
The following persons were directors of the Group during the whole of the financial year and up to the date of this report unless
otherwise indicated:
Gerard Anderson (Acting Chair)
Timothy James Wither (Managing Director) (appointed 10 August 2020)
Martin Simon Janes (Non-executive Director) (appointed 1 August 2019)
Steven Evan Zaninovich (Non-executive Director) (appointed 14 July 2020)
Kevin John Malaxos (Managing Director to 30 November 2019 and Non-Executive Director from 1 December 2019)
Leigh Carol McClusky (Non-executive Director) (resigned 1 August 2019)
Principal activities
During the year the principal activities of the Group consisted of mineral exploration and development.
Dividends
There were no dividends declared or paid during the year (2019: Nil).
OPERATIONAL AND FINANCIAL REVIEW
1. Operating results and financial position
The result of operations of the Group for the financial year was a profit of $1,252,394 (2019: $2,107,283 loss). The loss from
continuing operations was $771,323 (2019: $401,733) and the profit from discontinued operations was $2,023,717 (2019:
$1,705,550 loss).
The net assets of the Company have increased by $2,808,931 during the financial year from $967,755 at 30 June 2019 to
$3,776,686 at 30 June 2020. This increase is due to the profit realised from the sale of the Burbanks Gold Treatment Plant
(Burbanks Mill), as well as the equity raisings during the year.
2. Review of Operations
Burbanks Mill
The sale of the Burbanks Mill in WA’s Coolgardie region to Perth based private company Mineral Ventures Pty Ltd was finalised
on 30 September 2019.
In conjunction with the sale, Maximus secured a minimum of 2 years of milling capacity at Burbanks Mill of up to 5,000 tonnes per
month from initial activation within 12 months from completion of the sale. Securing this future milling capacity, combined with the
improved financial capacity ensures that Maximus can continue development of the Company’s Spargoville projects and accelerate
the approvals process and continue to pursue near-term production projects for acquisition.
Spargoville (WA)
SPARGOVILLE PROJECT – GOLD RESOURCE DEVELOPMENT
Maximus 90-100% (Larkinville 75%)
The Company continued to focus on converting the five Mineral Resource estimates (Eagles Nest, Larkinville, 5B, Hilditch and
Redback) to Reserve category. Following economic analysis of each project, permitting requirements and project development
scheduling can be evaluated, which will determine potential mine development sequencing.
A Mining Lease Application has been submitted for M15/1896, Eagles Nest South, to allow mining to commence on the Company’s
Eagles Nest Deposit, subject to the necessary regulatory approvals. The Eagles Nest Deposit contains in excess of 40,000 Oz of
gold in a JORC 2012 Mineral Resource Estimate.
Discussions have commenced with the Native Title Claimant group as part of the Mining Lease approval process.
The total 2012 JORC Resource Estimate for the Spargoville Project is currently 1,448,100 tonnes @ 2.41g/t for 112,280 Oz Au.
(See Table 1).
Page 6Page 6Page 6
Maximus Resources Limited
Directors' Report
30 June 2020
Project
Eagles Nest
Main Lode*
FW Zone*
Larkinville**
5B
Redback***
Hilditch
Total
Tonnes
Au g/t
Oz
662,400
17,500
119,700
75,300
441,200
132,000
1,448,100
1.95
1.89
3.02
3.07
3.02
1.77
2.41
41,550
1,050
11,600
7,700
42,900
7,480
112,280
Table 1: Spargoville Project Mineral Resource inventory.
Note: Figures have been rounded and hence may not add up exactly to the given totals. Note Resources are inclusive of Reserves reported at 0 g/t cut off.
*Top cut of 6 g/t has been applied
**Reported at 1.0 g/t cut off
***Reported at 0.5 g/t cut off
SPARGOVILLE PROJECT – GOLD EXPLORATION
Maximus 90%-100% (Larkinville 75%)
Following the success of the review of the Sub Audio Magnetic (SAM) Survey conducted immediately to the north of the Wattle
Dam Pit, the Company commissioned a further survey on the area immediately south of the historic Wattle Dam open pit. The SAM
survey was completed late in September 2019, and the data was interpreted during the December quarter. The resultant data was
analysed by the Company’s exploration team to generate drill targets.
Corporate
Mr Kevin Malaxos resigned as Managing Director of the Company effective 30 November 2019 after 9 years. Mr Malaxos became
a Non-executive director on1 December 2019.
Mr Martin Janes was appointed as Non-executive Director of the Company on 1 August 2019.
Ms Leigh McClusky resigned as a Non-executive Director of the Company on 1 August 2019 after 9 years on the Board.
During the 2020 financial year, the following securities were issued:
•
•
•
•
2,270,477 unlisted options with an exercise price of $0.11 and expiration date of 8 January 2022 were issued to
sophisticated and professional investors on 7 January 2020 following approval by shareholders at the Annual General
Meeting of the Company. The options were issued to the sophisticated and professional investors who participated in the
placement on 3 May 2019. The options were issue for nil consideration.
8,703,801 ordinary shares were issued to sophisticated and professional investors on 26 February 2020. The shares were
offered at an issue price of $0.039 per share raising $339,448.
5,677,136 ordinary shares were issued to shareholders who participated in the Entitlement Issue on 18 May 2020. The
shares were offered at an issue price of $0.03 per share raising $170,314.
37,841,868 ordinary shares were issued to sophisticated and professional investors who participated in the shortfall arising
from the Entitlement Issue on 27 May 2020. The shares were offered at an issue price of $0.03 per share raising
$1,135,257.
The impact of COVID-19 on the Company has been as follows:
•
•
The Company intended to undertake a fully underwritten entitlement issue at $0.039 per ordinary share which did not
proceed due to the significant decline in capital markets during March 2020.
Deferment of exploration activities.
3. Significant changes in the state of affairs
During the year the Group sold Burbanks Mill as the Board decided to focus the Company’s future on exploration development on
the Spargoville tenements. The Burbanks Mill operations are considered a discontinued operation for the Group.
Other than noted above, there have been no significant changes in the above state of affairs from the 2019 financial year to 2020.
Page 7Page 7Page 7
Maximus Resources Limited
Directors' Report
30 June 2020
4. Events arising since the end of the reporting period
Mr Timothy Wither was appointed Managing Director of the Company on 10 August 2020.
Mr Steven Zaninovich was appointed as a Non-Executive Director of the Company on 14 July 2020.
During September 2020, the Company agreed to enter into a placement to raise $3.0 million to sophisticated and professional
investors. The placement is subject to shareholder approval at the General Meeting of the Company to be held on 14 October
2020. The placement will result in 31,578,947 ordinary shares being issued at a price of $0.095 per share. The Directors of the
Company have committed to subscribe for an additional 1,894,737 shares to raise $180,000. The allotment to Directors will be
subject to shareholder approval at the next Annual General Meeting.
On the 14 October 2020 the Company is scheduled to hold a General Meeting of shareholders to ratify the issue of listed options
to shareholders who participated in the placement on 26 February 2020, entitlement issue on 17 May 2020 and shortfall allocation
on 27 May 2020. The General Meeting also includes ratifying the issue of 6,000,000 listed options to the Company’s corporate
advisors. Should all resolutions relating to the issue of options be voted for, the Company will issue 23,407,690 listed options with
an exercise price of $0.11 expiring on 7 January 2022.
There has been no other transaction or event of a material or unusual nature that has arisen in the interval between the end of the
financial year and the date of this report that is likely, in the opinion of the directors, to affect significantly the operations of the
Company, the results of those operations, or the state of affairs of the Company in future financial years.
5. Future business developments, prospects and business strategies
The Company is poised to progress from a pure explorer to a producer in the near future, subject to continued exploration success
being achieved. The Spargoville tenements have presented several advanced gold exploration targets. The Company plans to
pursue the gold potential of the Spargoville tenements.
In addition to exploration on the Spargoville tenements, the Company intends to continue to review potential gold projects and
advanced exploration targets held by other companies or individuals, to build upon the exploration asset base at Spargoville and
grow future gold resources. These additional 3rd party targets may be acquired or accessed through joint ventures or other
agreements.
6. Environmental regulation
The Company’s operations are subject to significant environmental regulation under both Commonwealth and State legislation in
relation to discharge of hazardous waste and materials arising from any exploration or mining activities and development conducted
by the Company on any of its tenements. The Company believes it is not in breach of any environmental obligation.
Information on directors
Gerard Anderson Assoc. Applied Geology Grad Dip Bus MSc
Acting Non-executive Chairman
Experience and expertise
A director since 1 November 2018, Gerard is a geologist with 43 years’ experience in exploration, mine and resource geology
principally in iron ore, gold and base metals. Gerard’s senior management positions have included as Exploration Superintendent
Boddington Gold Mine, Chief Geologist Bronzewing Gold Mine, Chief Geologist Kalgoorlie Consolidated Gold Mines, General
Manager Golden Grove Operations, General Manager Newmont Joint Ventures and as Managing Director of Croesus Mining
Limited, Centrex Metals Limited, Archer Exploration Limited and as of March 2018, Woomera Mining Limited.
In addition to his geology qualifications Gerard has completed a post graduate degree in Business and a Masters in Mineral
Economics.
Other current directorships (listed entities)
Mr Anderson is the Managing Director of Woomera Mining Limited
Former directorships in the last 3 years (listed entities)
Nil
Special responsibilities
Acting Chairman of the Board (from 1 December 2018)
Interests in shares and options
28,840 ordinary shares in Maximus Resources Limited.
Page 8Page 8Page 8
Maximus Resources Limited
Directors' Report
30 June 2020
Timothy James Wither MBA, BSc, GDip, GradDipNatRs, GAICD, MAusIMM
Managing Director (Appointed 10 August 2020)
Experience and expertise
Mr Wither has over 18 years in the resource industry both domestically and internationally, with key involvement in development of
several greenfield base metal projects in Australia, India, Africa and South America. Mr Wither has held senior executive and
strategic leadership roles. Mr Wither is a graduate of the Australian Institute of Company Directors, holds a Master of Business
Administration from Curtin’s Graduate School of Business (CGSB), Graduate Diploma in Mining (WASM) and Bachelor of Sciences
in Mine Engineering, Surveying (WASM) and currently a candidate for Masters of Commercial and Resources Law at the University
of Western Australia.
Mr Wither is a member of the Australian Institute of Company Directors and the Australian Institute of Mining and Metallurgy.
Other current directorships (listed entities)
Symbol Mining Limited
Former directorships in the last 3 years (listed entities)
Nil
Special responsibilities
Managing Director
Interests in shares and options
Nil
Martin Simon Janes BEc GAICD
Non-executive Director (Appointed 1 August 2019)
Experience and expertise
Martin is a mining executive with over 28 years’ experience. Until recently Martin was Chief Executive Officer of Terramin Australia
Limited (ASX: TZN) a position he commenced in June 2013 having been that company’s CFO from August 2006 to December 2010.
Martin was previously employed by ASX listed uranium company Toro Energy Limited (ASX: TOE) (May 2011 to October 2012)
where he held the position of General Manager – Marketing & Project Finance. Martin has a strong finance background and specialty
covering equity, debt & related project financing tools and commodity off-take negotiation. While employed by Newmont Australia
(previously Normandy Mining) his major responsibilities included corporate & project finance, treasury management, asset sales
and product offtake management. Martin has a Bachelor of Economics and is member of the Australian Institute of Company
Directors.
Other current directorships (listed entities)
Nil
Former directorships in the last 3 years (listed entities)
Mr Janes was previously a Non-Executive Director of Havilah Resources Limited (January 2019 to October 2019), Twenty Seven
Co Limited (from October 2014 to April 2019) and Resource Base Limited (from January 2016 to August 2018).
Special responsibilities
Chair of the Audit, Risk & Corporate Governance Committee.
Interests in shares and options
400,000 ordinary shares in Maximus Resources Limited.
Steven Evan Zaninovich B.Eng
Non-executive Director (Appointed 14 July 2020)
Other current directorships (listed entities)
Canyon Resources Limited
Indiana Resources Limited
Sarama Resources Limited
Former directorships in the last 3 years (listed entities)
Nil
Special responsibilities
Member of the Audit, Risk & Corporate Governance Committee.
Interests in shares and options
Nil
Page 9Page 9Page 9
Maximus Resources Limited
Directors' Report
30 June 2020
Kevin John Malaxos BSc Mining Engineering
Non-executive Director
Experience and expertise
A director since 13 December 2010, Mr Malaxos has 30 years’ experience in the resources sector in senior management and
executive roles across a suite of commodities including gold, nickel, iron ore, silver, lead, zinc and chromium. He has managed
surface and underground mining operations and brings a wealth of experience in project evaluation and development, project
approval and Government liaison.
Mr Malaxos' previous roles include CEO for Mt Gibson Mining (MGX) and COO of listed iron ore developer Centrex Metals Limited
(CXM), where he was responsible for project development, project approvals and community and government consultation.
Other current directorships (listed entities)
Mr Malaxos is the Managing Director of Alliance Resources Limited (from 1 December 2019)
Former directorships in the last 3 years (listed entities)
Nil
Special responsibilities
Managing Director to 30 November 2020.
Interests in shares and options
217,392 ordinary shares in Maximus Resources Limited.
Leigh Carol McClusky
Non-executive Director (resigned 1 August 2019)
Experience and expertise
Appointed as a director on 1 September 2010, Ms McClusky is the Managing Director of the McCo GROUP, a strategic
communications company with offices in Adelaide, Melbourne and Geelong.
After more than 30 years in key media roles across Melbourne, Sydney and Adelaide, Ms McClusky now works closely with a range
of organisations and industries to develop proactive communication campaigns and to deflect potentially damaging impacts on
corporate reputations. Her role also includes stakeholder engagement and management, client advocacy and crisis
communications.
Other current directorships (listed entities)
Nil
Former directorships in the last 3 years (listed entities)
Nil
Special responsibilities
Member of the Audit, Risk & Corporate Governance Committee.
Interests in shares, options and rights
69,038 ordinary shares in Maximus Resources Limited.
Company Secretary
Rajita Alwis LLB B.Com, CA
(Appointed 17 December 2019)
Experience and expertise
Ms Alwis has over 20 years experience in the accounting profession. She is a Chartered Accountant and holds a double degree
in Commerce and Law. Ms Alwis has provided company secretarial and CFO services to a number of ASX listed companies. She
is highly experienced in in governance, financial reporting and corporate compliance. Ms Alwis has been a member of Chartered
Accountants Australia and New Zealand for over 15 years and regularly conducts workshops for the CA Program which covers
corporate governance, ethics, corporate social responsibility and business finance.
Justin Nelson LLB BA, (Jur)
(Resigned 17 December 2019)
Experience and expertise
Mr Nelson has extensive experience in the listed company environment through his former role as the ASX’s SA State Manager
and Manager Listings (Adelaide). An expert in corporate governance procedures, ASX Listing Rules and company meeting practice.
Page 10Page 10Page 10
Meetings of directors
The numbers of meetings of the Company's board of directors and of each board committee held during the year ended 30 June
2020, and the number of meetings attended by each director were:
Maximus Resources Limited
Directors' Report
30 June 2020
Gerard Anderson
Kevin Malaxos
Martin Janes
Leigh McClusky
Full meetings
of directors
A
B
12
12
11
1
12
12
11
1
Audit & Risk
Committee
meetings
B
A
3
3
3
-
3
3
3
-
A = Number of meetings attended
B = Number of meetings held during the time the director held office or was a member of the committee during the year
Indemnification and insurance of officers
The Company has entered into deeds of indemnity with each director whereby, to the extent permitted by the Corporations Act
2001, the Company agreed to indemnify each director against all loss and liability incurred as an officer of the Company, including
all liability in defending any relevant proceedings.
The Company is required to indemnify the directors and other officers of the Company against any liabilities incurred by the directors
and officers that may arise from their position as directors and officers of the Company. No costs were incurred during the year
pursuant to this indemnity.
Insurance premiums
Since the end of the previous year, the Company has paid insurance premiums to insure the directors and officers in respect of
directors' and officers' liability and legal expenses insurance contracts.
Proceedings on Behalf of Company
No person has applied to the Court under section 237 of the Corporations Act 2001 to bring proceedings on behalf of the Company
or 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 any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the
Corporations Act 2001.
Non-audit services
The Board of Directors, in accordance with advice from the Audit Committee, is satisfied that the provision of non-audit services
during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The
directors are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following
reasons:
•
•
all non-audit services are reviewed and approved by the Audit Committee prior to commencement to ensure they do not
adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence in accordance
with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.
Fees for non-audit services paid or payable to the external auditors or its related practices during the year ended 30 June 2020 was
$5,400 (2019: $5,400).
Page 11Page 11Page 11
Maximus Resources Limited
Directors' Report
30 June 2020
Remuneration report – audited
The remuneration report is set out under the following main headings:
Principles used to determine the nature and amount of remuneration
Voting and comments made at the Company’s 2019 Annual General Meeting
Details of remuneration
Service agreements
Share-based compensation
A
B
C
D
E
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act
2001.
A. Principles used to determine the nature and amount of remuneration
The Company's policy for determining the nature and amounts of emoluments of board members and other key management
personnel of the Company is as follows:
The Company's Constitution specifies that the total amount of remuneration of non-executive directors shall be fixed from time to
time by a general meeting. The current maximum aggregate remuneration of non-executive directors has been set at $300,000 per
annum. Directors may apportion any amount up to this maximum amount amongst the non-executive directors as they determine.
Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in performing their duties
as directors. The remuneration of the Managing Director is determined by the non-executive directors on the Board as part of the
terms and conditions of his employment which are subject to review from time to time. The remuneration of other executive officers
and employees is determined by the Managing Director subject to the approval of the Board.
Non-executive director remuneration is by way of fees and statutory superannuation contributions. Non-executive directors do not
participate in schemes designed for remuneration of executives nor do they receive options or bonus payments and are not provided
with retirement benefits other than salary sacrifice and statutory superannuation.
The Company's remuneration structure is based on a number of factors including the particular experience and performance of the
individual in meeting key objectives of the Company. The Board is responsible for assessing relevant employment market conditions
and achieving the overall, long term objective of maximising shareholder benefits, through the retention of high quality personnel.
The Company does not presently emphasise payment for results through the provision of cash bonus schemes or other incentive
payments based on key performance indicators of the Company given the nature of the Company's business as a junior listed
mineral exploration entity and the current status of its activities. However, the Board may approve the payment of cash bonuses
from time to time in order to reward individual executive performance in achieving key objectives as considered appropriate by the
Board.
The Company also has an Employee Incentive Rights Plan approved by shareholders that enables the Board to offer eligible
employees rights to acquire ordinary fully paid shares in the Company. Under the terms of the Plan, rights to acquire ordinary fully
paid shares at no cost may be offered to the Company's eligible employees as determined by the Board in accordance with the
terms and conditions of the Plan. The objective of the Plan is to align the interests of employees and shareholders by providing
employees of the Company with the opportunity to participate in the equity of the Company as a long-term incentive to achieve
greater success and profitability for the Company and to maximise the long-term performance of the Company.
The employment conditions of the Managing Director were formalised in a contract of employment. The base salary as set out in
the employment contract is reviewed annually. The Managing Director’s contract may be terminated at any time by mutual
agreement and in instances of serious misconduct the Company may terminate his agreement without notice.
No remuneration consultants were engaged for the year ending 30 June 2020.
B. Voting and comments made at the Company’s 2019 Annual General Meeting
At the Company’s last Annual General Meeting, there were no comments or queries on the remuneration report. However, 48.42
per cent of shareholders who casted their votes voted against the remuneration report, constituting a first strike.
C. Details of remuneration
This report details the nature and amount of remuneration for each key management person of the Company.
The names and positions held by directors and key management personnel of the Company during the financial year are:
• •
• •
• •
• •
• •
• •
Mr G Anderson – Acting Chairman, Director, non-executive
Mr K J Malaxos – Managing Director to 30 November 2019 and non-executive from 1 December 2019
Mr M S Janes – Director, non-executive (appointed 1 August 2019)
Ms L C McClusky - Director, non-executive (resigned 1 August 2019)
Ms R S Alwis – Company Secretary (appointed 17 December 2019)
Mr J P Nelson – Company Secretary (resigned 17 December 2019)
Page 12Page 12Page 12
Key management personnel and other executives of the Company
2020
Short-term employee benefits
Post-employment
benefits
Name
Gerard Anderson
Kevin J Malaxos
Martin S Janes
Leigh C McClusky
Rajita S Alwis
Justin P Nelson
Fees
$
50,000
29,167
45,833
4,542
43,320
13,790
Salary
$
-
102,782
-
-
-
-
Annual
leave
accrued
$
-
930
-
-
-
-
Superannuation
$
-
9,941
-
-
-
-
Maximus Resources Limited
Directors' Report
30 June 2020
Share-based
payments
Long-term
employee
benefits
Long service
leave
accrued Options Rights
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
Total
$
50,000
142,820
45,833
4,542
43,320
13,790
Total key management personnel
compensation
186,652
102,782
930
9,941
-
-
-
300,305
Mr Malaxos stood down as Managing Director on 30 November 2019. Remuneration relating to Mr Malaxos as a Managing Director was
$113,653. From 1 December 2019 Mr Malaxos was a non-executive Director of the Company and was entitled to non-executive director
fees of $29,167.
Ms Alwis is engaged under a service contract with Alwis & Alwis Pty Ltd. During the year, fees paid or payable for service provided by Ms
Alwis was $43,320.
Mr Nelson was engaged under a service contract with DMAW Lawyers Pty Ltd. During the year, fees paid or payable for services provided
by Mr Nelson was $15,000.
Key management personnel and other executives of the Company
2019
Short-term employee benefits
Post-employment
benefits
Name
Kevin J Malaxos
Gerard Anderson*
Leigh C McClusky*
Ewan J Vickery*
Nicholas J Smart
Justin Nelson**
Fees
$
-
-
-
-
-
30,000
Salary
$
395,519***
-
-
-
-
-
Annual
leave
accrued
$
19,314
-
-
-
-
-
Superannuation
$
23,858
-
-
-
-
-
Share-based
payments
Long-term
employee
benefits
Long service
leave
accrued Options Rights
$
-
-
-
-
-
-
$
6,274
-
-
-
-
-
$
-
-
-
-
-
-
Total
$
444,965
-
-
-
-
30,000
Total key management personnel
compensation
30,000
395,519
19,314
23,858
6,274
-
-
474,965
* The Directors suspended directors’ fees from 1 April 2017 to 30 June 2019 to preserve cash for operational purposes.
**Mr Nelson was engaged under a service contract with DMAW Lawyers Pty Ltd. During the year, fees were paid or payable for services
provided by Mr Nelson was $30,000.
***Mr Malaxos did not receive a salary from April 2017 to October 2017 to preserve cash for operational purposes. The Directors resolved
to back pay the unpaid salary of $144,377 during 2019 financial year.
Name
Kevin John Malaxos
Fixed remuneration
2019
%
100
2020
%
100
2020
At risk - STI*
2020
%
-
2019
%
-
At risk - LTI**
2020
%
-
2019
%
-
* Short-term incentives (STI) include cash incentive payments (bonuses) linked to Company and/or individual performance.
** Long-term incentives (LTI) include equity grants issued via the Company's Employee Share Option and Incentive Rights Plans. This plan is
designed to provide long-term incentives for executives to deliver long-term shareholder returns.
Page 9
Page 13Page 13Page 13 Maximus Resources Limited
Directors' Report
30 June 2020
D. Service agreements
The Board negotiated a contract with Mr Malaxos with no fixed term at a salary of $275,000 per annum inclusive of superannuation
guarantee contributions to be reviewed annually and with termination on three months’ notice. Mr Malaxos resigned as Managing
Director effective 30 November 2019.
All Non-executive Directors were engaged as directors with formal agreements per the ASX Corporate Governance Principles and
Recommendations Third Edition.
E. Share-based compensation
Incentive rights
The Company has an Employee Incentive Rights Plan approved by shareholders that enables the Board to offer eligible employees
rights to acquire ordinary fully paid shares in the Company. Under the terms of the Plan, rights to acquire ordinary fully paid shares
at no cost may be offered to the Company's eligible employees as determined by the Board in accordance with the terms and
conditions of the Plan. No rights were issued during the year.
Options granted as remuneration
No options were granted during the year.
Shares issued on exercise of remuneration options
No shares were issued to directors as a result of the exercise of remuneration options during the financial year.
Directors' interests in shares and options
(i) Option holdings
No director of Maximus Resources Limited or other key management personnel of the Company, including their personally related
parties, have been issued or held options during the year ended 30 June 2019 or 2020.
(ii) Share holdings
The numbers of shares in the Company held during the financial year by each director of Maximus Resources Limited and other
key management personnel of the Company, including their personally related parties, are set out below.
2020
Name
KJ Malaxos
G Anderson
M S Janes*
L C McClusky**
*Appointed 1 August 2019
**Resigned 1 August 2019
2019
Name
KJ Malaxos
G Anderson
L C McClusky
E J Vickery *
N J Smart **
*Resigned 30 November 2018
**Resigned 24 August 2018
Balance at the
start of the year
Received as
compensation
Acquired /
(disposed)
400,001
14,420
-
69,038
-
-
-
-
(182,609)
14,420
400,000
-
Ceased
-
-
-
(69,038)
Balance at the
end of the year
217,392
28,840
400,000
-
Balance at the
start of the year
Received as
compensation
Consolidation
Adjustment
Ceased
Balance at the
end of the year
46,000,000
1,658,300
7,939,338
42,500,003
37,500
-
-
-
-
(45,599,999)
(1,643,880)
(7,870,300)
(42,130,437)
(37,173)
-
-
-
(369,566)
(327)
400,001
14,420
69,038
-
-
Page 14Page 14Page 14
Maximus Resources Limited
Directors' Report
30 June 2020
F. Transactions with key management personnel
The following transactions occurred with related parties:
During the year ended 30 June 2020, Gerard Anderson loaned the Company $40,000. The loan was interest bearing at 8%pa and
was required to be repaid upon completion of a successful capital raise. The loan and was fully repaid on 4 June 2020 with interest
of $970.31.
During the year ended 30 June 2018, Mrs G Malaxos, spouse of Mr Kevin Malaxos, loaned the Company $40,000. The loan was
interest bearing at 6%pa and was required to be repaid upon completion of a successful capital raise. The loan was settled on 30
October 2019 with interest of $5,227.21.
During the year ended 30 June 2020, McClusky & Co Pty Ltd, of which Ms Leigh McClusky is a director, provided office space for
the head office. The amount paid for office and rental costs totalled $24,000 excluding GST. The office space is leased on a
month to month basis.
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to
other parties unless otherwise stated.
Shares under option
At the date of this report the Company had 1,270,000 unlisted options on issue. (2019: nil)
END OF AUDITED REMUNERATION REPORT
Auditors independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page
12.
This report is signed and dated in Adelaide on this 30th day of September 2020 and made in accordance with a resolution of the
directors.
Gerard Anderson
Director
Page 15Page 15Page 15
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Auditor’s Independence Declaration
To the Directors of Maximus Resources Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Maximus
Resources Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B K Wundersitz
Partner – Audit & Assurance
Adelaide, 30 September 2020
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Page 16Page 16Page 16 Maximus Resources Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Consolidated
30 June
2020
$
30 June
2019
$
Notes
Revenue
Gold Sales - Spargoville
Other income
Gain on debt forgiveness
Other income
Expenses
Compliance expenses
Consulting expenses
Depreciation expense
Doubtful debts expense
Employee expenses
Legal expenses
Marketing expenses
Finance expense
Exploration expenditure written off
Other expenses
(Loss) before income tax
Income tax expense
Loss for the year from continuing operations
4
4
5
5
8
5
5
5
6
-
6,806
-
63,650
712,613
319
(149,621)
(104,515)
(439)
(322,099)
(143,021)
(36,257)
(4,107)
(14,386)
(40,629)
(19,899)
(154,614)
(150,670)
(662)
-
(501,473)
(74,386)
(5,146)
(11,900)
(161,426)
(61,194)
(771,323)
-
(401,733)
-
(771,323)
(401,733)
Profit/(Loss) for the year from discontinued operations
10
2,023,717
(1,705,550)
Profit/(Loss) for the year
1,252,394
(2,107,283)
Other comprehensive income for the year (net of tax)
-
-
Total comprehensive loss for the year
1,252,394
(2,107,283)
Earnings per share
Basic earnings/(loss) per share
From continuing operations
-
-
From discontinued operations
Total basic earnings per share
Diluted earnings/(loss) per share
-
-
From continuing operations
From discontinued operations
26
Cents
Cents
(1.84)
4.83
2.99
(1.84)
4.58
2.74
(1.38)
(5.84)
(7.22)
(1.38)
(5.84)
(7.22)
This statement should be read in conjunction with the notes to the financial statements.
Page 17Page 17Page 17 Maximus Resources Limited
Consolidated statement of financial position
As at 30 June 2020
Notes
Consolidated
30 June
2020
$
30 June
2019
$
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Assets included in disposal group classified as held
for sale
Other current assets
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Financial liabilities
Liabilities included in disposal group classified as
held for sale
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Accumulated losses
Total equity
7
8
10
9
11
12
13
16
10
14
15
17
18
801,108
-
-
12,326
160,682
366,597
3,518,250
35,023
813,434
4,080,552
-
3,224,379
439
2,775,089
3,224,379
2,775,528
4,037,813
6,856,080
254,973
-
-
5,109
1,981,722
2,850,101
928,981
126,476
260,082
5,887,280
1,045
1,045
1,045
1,045
261,127
5,888,325
3,776,686
967,755
42,451,894
(38,675,208)
3,776,686
40,895,357
(39,927,602)
967,755
This statement should be read in conjunction with the notes to the financial statements.
Page 18Page 18Page 18
Consolidated
Notes
Contributed
equity
$
Accumulated
losses
$
Total equity
$
Maximus Resources Limited
Consolidated statement of changes in equity
For the year ended 30 June 2020
Balance at 30 June 2020
42,451,894
(38,675,208)
Balance at 1 July 2019
Total comprehensive profit for the year:
Profit for the year
Other comprehensive income
Transactions with owners in their
capacity as owners:
Contributions of equity
Transaction costs
17
Balance at 1 July 2018
Total comprehensive loss for the year:
(Loss) for the year
Other comprehensive income
Transactions with owners in their
capacity as owners:
Contributions of equity
Transaction costs
40,895,357
(39,927,602)
967,755
40,895,357
1,645,019
(88,482)
1,252,394
-
(38,675,208)
-
-
1,252,394
2,220,149
1,645,019
(88,482)
3,776,686
40,325,309
(37,820,319)
2,504,990
-
-
-
(2,107,283)
-
(2,107,283)
(2,107,283)
-
(2,107,283)
17
612,880
(42,832)
-
-
Balance at 30 June 2019
40,895,357
(39,927,602)
This statement should be read in conjunction with the notes to the financial statements.
612,880
(42,832)
967,755
Page 19
Page 19Page 19 Maximus Resources Limited
Consolidated statement of cash flows
For the year ended 30 June 2020
Consolidated
30 June
2020
$
30 June
2019
$
63,650
(556,090)
-
(18,856)
(511,296)
(1,989,570)
6,806
(885,469)
319
(6,085)
(884,429)
(1,036,068)
(2,500,866)
(1,920,497)
5,200,000
(536,048)
-
(251,972)
Notes
10
25
10
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Interest paid
Net cash from continuing operations
Net cash (used in) discontinued operations
Net cash (outflows)/inflows from operating activities
Cash flows from investing activities
Proceeds from sale of Burbanks mill
Payments for exploration and evaluation
Net cash inflows/(outflows) from investing activities
4,663,952
(267,692)
Cash flows from financing activities
Proceeds from issues of shares and other equity securities
Proceeds from options to purchase Burbanks mill
Payment of financial liabilities
Repayment of funds to parties not finalising acquisition of Burbanks
Mill
Repayment of Ramelius Resources loan
Transaction costs associated with equity issues
1,645,000
-
(86,197)
(2,993,000)
-
(88,463)
612,880
2,750,000
-
-
(1,000,000)
(42,832)
Net cash (outflows)/inflows from financing activities
(1,522,660)
2,320,048
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
640,426
160,682
131,859
28,823
Cash and cash equivalents at the end of the financial year
7
801,108
160,682
This statement should be read in conjunction with the notes to the financial statements.
Page 20Page 20Page 20
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
1 Summary of significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the
consolidated entity consisting of Maximus Resources Limited and its subsidiaries.
a) Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Maximus Resources
Limited is a for-profit entity for the purpose of preparing the financial statements.
Compliance with IFRS
(i)
The consolidated financial statements of the Maximus Resources Limited also comply with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS).
Compliance with AIFRSs ensures that the financial statements and notes comply with International Financial Reporting
Standards (IFRS).
(ii) Historical cost convention
These financial statements have been prepared on an accrual basis, under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value
through profit or loss and certain classes of property, plant and equipment.
(iii) Critical accounting estimates
The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the Company.
(iv) New accounting standards adopted in the current year
AASB 16 Leases
AASB 16 superseded AASB 117 Leases and Interpretation 4 Determining whether an Arrangement contains a Lease and
became effective for reporting periods beginning on or after 1 January 2019. The standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single
on-balance sheet model. Accordingly, the Group applied AASB 16 for the first time for period ended 31 December 2019.
AASB 16 Leases became effective for the period beginning on or after 1 January 2019. Accordingly, the Group applied AASB
16 for the first time for the interim period 31 December 2019. Changes to the Group’s accounting policies arising from these
standards are summarised below.
Total operating lease commitments to 30 June 2020 was $nil as the Group currently leases its office space on a month by month
contractual basis. As a result, the leases held by the satisfied the relevant criteria of a short-term lease under AASB 16, therefore
this standard has no impact on the Group.
Going concern
The financial report has been prepared on the basis of going concern.
The cash flow projections of the Company and consolidated entity evidence that that the Company will require positive cash
flows from additional capital for continued operations.
The Company generated a profit of $1,252,394 (2019: $2,107,283 loss) with positive operating and investing cashflows of
$2,163,086 due to the sale of the Burbanks Mill.
The Company and consolidated entity’s ability to operate as a going concern is contingent upon obtaining additional capital.
Post balance date the Company agreed to enter into a placement to raise $3.0 million to sophisticated and professional
investors. The placement is subject to shareholder approval at the General Meeting of the Company to be held on 14 October
2020.
If the Company is not able to secure additional capital then the going concern basis of accounting may not be appropriate. As
a result, the Company may have to realise its assets to extinguish its liabilities, other than in the ordinary course of business in
amounts which could be different from those stated in the financial report. No allowance for such circumstances has been made
in the financial report.
Page 21Page 21Page 21 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
b) Basis of consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 June 2020. The
Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the
ability to affect those returns through its power over the subsidiary. All subsidiaries have a reporting date of 30 June 2020.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses
on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation,
the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the
effective date of acquisition, or up to the effective date of disposal, as applicable.
c)
Revenue and Other Income
Revenue is measured at the fair value of the consideration received or receivable. Revenue from the rendering of services is
recognised upon the delivery of the service to the customer. The Group recognises contract liabilities when consideration is
received in respect to unsatisfied performance obligations.
Revenue from the sale of gold is measured at fair value of the consideration received or receivable. Revenue is recognised when
gold is delivered to the buyer.
Interest revenue is recognised using the effective interest rate method.
Grant income from the Australian Taxation Office is measured at fair value of the consideration received or receivable. Grant
income is recognised as income based on the lodgement period.
d) Employee Benefits
Short-term employee benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within twelve
(12) months after the end of the period in which the employees render the related service. Examples of such benefits include
wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee benefits are measured at the
undiscounted amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The Group’s liabilities for annual leave and long service leave are included in other long term benefits as they are not expected
to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service.
They are measured at the present value of the expected future payments to be made to employees. The expected future
payments incorporate anticipated future wage and salary levels, experience of employee departures and periods of service, and
are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate
bonds (2019: government bonds) that have maturity dates that approximate the timing of the estimated future cash outflows.
Any re-measurements arising from experience adjustments and changes in assumptions are recognised in profit or loss in the
periods in which the changes occur.
The Group presents employee benefit obligations as current liabilities in the statement of financial position if the Group does not
have an unconditional right to defer settlement for at least twelve (12) months after the reporting period, irrespective of when the
actual settlement is expected to take place.
e) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker has been identified as the Board of Directors.
f)
Income tax
The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Company's subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
Page 22Page 22Page 22 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised
if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition
of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset
is realised or the deferred income tax liability is settled.
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.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of
investments in controlled entities where the Company is able to control the timing of the reversal of the temporary differences
and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.
The Company and its subsidiaries are not part of a consolidated tax group.
AASB Interpretation 23 Uncertainty over Income Tax Treatment
The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application
of AASB 112 Income Taxes. It does not apply to taxes or levies outside the scope of AASB 12, nor does it specifically include
requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses
the following:
The assumptions an entity makes about the examination of tax treatments by taxation authorities
1. Whether an entity considers uncertain tax treatments separately
2.
3. How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates
4. How an entity considers changes in facts and circumstances
An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other
uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. The Company
applies significant judgement in identifying uncertainties over income tax treatments. Since the Company operates in a complex
multinational environment, it assessed whether the Interpretation had an impact on its consolidated financial statements. Upon
adoption of the Interpretation, the Company considered whether it had any uncertain tax positions. The interpretation did not
have an impact on the consolidated financial statements of the Company.
g)
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently
if changes in circumstances indicate that they might be impaired. Other assets are tested 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. The recoverable amount is the higher of an
asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at each reporting date.
h) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, 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 3 months or less that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts.
i)
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest
method, less provision for expected credit losses. Trade receivables are generally due for settlement within 30 days. They are
presented as current assets unless collection is not expected for more than 12 months after the reporting date.
The Group uses a simplified approach in accounting for trade and other receivables and records the loss allowance at the amount
Page 23Page 23Page 23 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
equal to the expected lifetime credit losses. The Group uses its historical experience, external indicators and forward-looking
information to calculate the expected credit losses using a provision matrix. The Group has assessed the impact of the
impairment model and no adjustment was required in Group’s financial statements.
j)
Investments and other financial assets
Recognition and derecognition
Regular purchases and sales of financial assets are recognised on trade-date - the date on which the Company commits to
purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.
When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in other
comprehensive income are reclassified to profit or loss as gains and losses from investment securities.
Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction
costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Loans and receivables and held to maturity investments are subsequently carried at amortised cost using the effective interest
method.
Impairment
The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group
of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the
asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or
group of financial assets that can be reliably estimated.
If there is evidence of impairment for any of the Company's financial assets carried at amortised cost, the loss is measured as
the difference between the asset's carrying amount and the present value of estimated future cash flows, excluding future credit
losses that have not been incurred. The cash flows are discounted at the financial asset's original effective interest rate. The
loss is recognised in the statement of profit or loss and other comprehensive income.
Provision for restoration and rehabilitation
The Company assesses the mill restoration and rehabilitation provision in accordance with accounting policies. Significant
judgement is required in determining the provision for restoration and rehabilitation as there are many transactions and other
factors that will affect the ultimate liability payable to rehabilitate the mill site. The estimate of future costs therefore requires
management to make assessment of the future restoration and rehabilitation date, future environmental legislation, changes in
regulations, price increases, changes in discount rates, the extent of restoration and rehabilitation activities and future removal
technologies. When these factors change and become known in the future, such differences will impact the restoration and
rehabilitation provision in the period in which they change or become known. At each reporting date, the rehabilitation and
restoration provision is remeasured to reflect any of these changes.
k) Plant and equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and
impairment losses.
Plant and equipment
Plant and equipment is measured on the cost basis. The carrying amount of plant and equipment is reviewed annually by directors
to ensure it is not in excess of the recoverable amount. The recoverable amount is assessed on the basis of the expected net
cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been
discounted to their present values in determining recoverable amounts.
Subsequent costs are included in the assets’ carrying amount or recognised as separate assets as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably.
All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the
financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the Company
commencing from the time the asset is held ready for use. The depreciation rates used for plant & equipment range from 12.5%
to 40%.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Page 24Page 24Page 24 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount note 1(f).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
statement of profit or loss and other comprehensive income.
l)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised initially
at their fair value and subsequently measured at amortised cost using the effective interest method.
m) Earnings per share (EPS)
(i)
Basic earnings per share
Basic earnings per share is calculated by dividing:
•
•
the profit attributable to equity holders of the Company, 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 year and excluding treasury shares.
(ii) 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 additional ordinary shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
n) Exploration and evaluation expenditure
Exploration and evaluation costs related to an area of interest are written off as incurred except they may be carried forward as
an item in the statement of financial position where the rights of tenure of an area are current and one of the following conditions
is met:
•
•
the costs are expected to be recouped through successful development and exploitation of the area of interest, or
alternatively, by its sale; and
exploration and/or evaluation activities in the area of interest have not at the end of each reporting period reached a
stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active and significant operations in, or in relation to, the area of interest are continuing.
Capitalised costs include costs directly related to exploration and evaluation activities in the relevant area of interest. General
and administrative costs are allocated to an exploration or evaluation asset only to the extent that those costs can be related
directly to operational activities in the area of interest to which the asset relates.
Capitalised exploration and evaluation expenditure is written off where the above conditions are no longer satisfied.
All capitalised exploration and evaluation expenditure is assessed for impairment if facts and circumstances indicate that an
impairment may exist. Exploration and evaluation assets are also tested for impairment once commercial reserves are found,
before the assets are transferred to development properties.
o) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the taxation authority. In this case it is recognised as part of the cost of 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 taxation authority is included with other receivables or 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 taxation authority, are presented as operating cash flows.
Page 25Page 25Page 25
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
p) Comparative figures
Comparative figures are adjusted to conform to Accounting Standards when required.
q) Contributed equity
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.
r)
Profit or loss from discontinued operations
A discontinued operation is a component of the Group that either has been disposed of, or is classified as held for sale. Profit
or loss from discontinued operations comprises the post-tax profit or loss of discontinued operations and the post-tax gain or
loss recognised on the measurement to fair value less costs to sell or on the disposal group constituting the discontinued
operation.
s) Current assets and liabilities classified as held for sale and discontinued operations
Current assets classified as held for sale are presented separately and measured at the lower of their carrying amounts
immediately prior to their classification as held for sale and their fair value less costs to sell. However, some held for sale assets
such as financial assets or deferred tax assets, continue to be measured in accordance with the Group’s relevant accounting
policy for those assets. Once classified as held for sale, the assets are not subject to depreciation or amortisation.
t)
Key estimates
The preparation of the financial statements requires management to make estimates and judgments. These estimates and
judgments are continually evaluated and are based on historical experience and other factors, including expectations of future
events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to impairment
of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations
performed in assessing recoverable amounts incorporate a number of key estimates.
Exploration and Evaluation
The Company’s policy for exploration and evaluation is discussed in Note 1(n). The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and assumptions may
change as new information becomes available. If, after having capitalised exploration and evaluation expenditure, management
concludes that the capitalised expenditure is unlikely to be recovered by future sale or exploration, then the relevant capitalised
amount will be written off through the statement of profit or loss and other comprehensive income.
u) Standards, amendments and interpretations to existing standards that are not yet effective and have not been
adopted early by the group:
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 2020. The consolidated
entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the
consolidated entity, are set out below.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and early
adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new guidance on
measurement that affects several Accounting Standards. Where the consolidated entity has relied on the existing framework in
determining its accounting policies for transactions, events or conditions that are not otherwise dealt with under the Australian
Accounting Standards, the consolidated entity may need to review such policies under the revised framework. At this time, the
application of the Conceptual Framework is not expected to have a material impact on the consolidated entity's financial
statements.
2 Financial risk management
The Company's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk and liquidity
Page 26Page 26Page 26 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
risk. The Company'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 Company.
Risk management is carried out by management under policies approved by the Board of Directors. The Board provides
principles for overall risk management, as well as policies covering specific areas, such as interest rate risk, credit risk, the use
of financial instruments and investment of excess liquidity.
The Company's financial instruments consist mainly of deposits with banks, accounts receivable and payable.
The Company holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Financial liabilities – current
(a) Market risk
Consolidated
30 June
2020 $
801,108
-
801,108
254,973
-
254,973
30 June
2019 $
160,682
366,597
527,279
1,981,722
2,850,101
4,831,823
Price risk
(i)
Price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate as a result of changes in market
prices (other than those arising from foreign exchange or interest rate risk). The Company is not exposed to any material price
risk.
Cash flow and fair value interest rate risk
(i)
Interest rate risk is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates and the
effective weighted interest rates on classes of financial assets and financial liabilities. Interest rate risk is managed by the
Company with the use of rolling short-term deposits.
The Company has no long term financial liabilities upon which it pays interest.
As at the end of the reporting period, Maximus Resources Limited had the following variable rate cash and cash equivalent
holdings:
Cash and cash equivalents
Net exposure to cashflow interest rate
30 June
2020
Weighted
average
interest rate
%
1.00
30 June
2020
Balance
$
801,108
801,108
30 June
2019
Weighted
average
interest
rate %
1.95
30 June
2019
Balance
$
160,682
160,682
Page 27Page 27Page 27 2
Financial risk management (cont)
Interest rate sensitivity analysis
At 30 June 2020, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining
constant would be as follows:
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
30 June 2020
Financial assets
Cash and cash equivalents
Total increase/ (decrease)
30 June 2019
Financial assets
Cash and cash equivalents
Total increase/ (decrease)
(b) Credit risk
Carrying
amount
$
801,108
Carrying
amount
$
160,682
Interest rate risk
Increase 2%
Decrease 2%
Profit
$
Equity
$
Profit
$
Equity
$
32
32
32
32
(32)
(32)
(32)
(32)
Increase 2%
Decrease 2%
Profit
$
Equity
$
34
34
34
34
Profit
$
(34)
(34)
Equity
$
(34)
(34)
Credit risk is the risk of default by borrowers and transactional counterparties as well as the loss of value of assets due to
deterioration in credit quality. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions,
as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions.
For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. Individual risk
limits are set based on internal or external ratings in accordance with limits set by the board. Sales to retail customers are
required to be settled in cash or using major credit cards, mitigating credit risk.
(c) Liquidity risk
Liquidity risk is the risk that the Company may encounter difficulty in settling its debts or otherwise meeting its obligations. The
Company manages liquidity risk by monitoring cash flows and ensuring that adequate funds are available to meet cash demands.
The table summarise the maturity profile of the Company’s financial liabilities as of 30 June 2020 and 2019 based on contractual
undiscounted payments.
< 1 year
1 to < 2years
2 to < 3 years
30 June 2020
Trade Creditors
Accruals
Financial liabilities
160,078
94,895
-
254,973
-
-
-
-
< 1 year
1 to < 2years
2 to < 3 years
30 June 2019
Trade Creditors
Accruals
Financial liabilities
1,951,506
83,174
750,000
-
-
2,100,101
2,784,680
2,100,101
-
-
-
-
-
-
-
-
Total
160,078
94,895
-
254,973
Total
1,951,506
83,174
2,850,101
4,884,781
Page 28Page 28Page 28 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
3 Segment information
(a) Description of segments
Identification of reportable segments
Management has determined the operating segments based on the reports reviewed and used by Managing Director (the chief
operating decision maker) are used to make strategic decisions. The Group is managed primarily on the basis of geographical
area of interest, since the diversification of the Group operations inherently has notably different risk profiles and performance
assessment criteria. Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have
similar economic characteristics and are also similar with respect to the following:
•
•
external regulatory requirements
geographical and geological styles
Accounting policies developed
Unless stated otherwise, all amounts reported to the Managing Director as chief decision maker with respect to operating
segments are determined in accordance with accounting policies that are consistent to those adopted in the annual financial
statements of the Group. The operations of the Burbanks mill were classified as a discontinued operation during the 2019 year
and are therefore are not disclosed as a separate segment.
2020
Segment revenue
Exploration
Total
$
-
$
-
(40,629)
3,224,379
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA)
(40,629)
Segment asset for the period ended 30 June 2020
3,224,379
Capital expenditure
Impairment
Total movement for the year
Total segment assets
Unallocated assets
Total assets
489,917
489,917
(40,629)
(40,629)
449,288
(449,288)
3,224,379
813,434
4,037,813
Page 29Page 29Page 29 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
3. Segment Information (cont)
2019
Segment revenue
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA)
Impairment
Segment assets
Capital expenditure
Impairment
Total movement for the year
Total segment assets
Unallocated assets
Total assets
4. Other income
ATO cashflow boost stimulus
Gain on debt forgiveness
Exploration
$
$
6,806
154,620
161,426
2,775,089
Total
$
$
154,620
161,426
2,775,089
313,573
313,573
(161,426)
(161,426)
152,147
(161,426)
2,775,089
4,080,991
6,856,080
Consolidated
30 June
2020
$
62,500
-
62,500
30 June
2019
$
-
712,613
712,613
During the year the Company was entitled to $62,500 from the Australian Taxation Office in relation to the COVID-19 small
business cashflow boost.
During the 2019 year, the Company negotiated with Ramelius Resource Limited (“Ramelius”) the repayment of its outstanding
debt of $1,712,613. Ramelius agreed to a payment of $1,000,000 to finalise the outstanding amount owing for the purchase of
Eastern Goldfields Milling Services Pty Ltd if payment was received by no later than 30 June 2019. The Company paid
$1,000,000 to Ramelius during April 2019. This payment resulted in Ramelius forgiving $712,613 of the debt.
Interest received
5. Expenses
Other
Short term lease expenses
Other costs
1,150
1,150
319
319
Consolidated
30 June
2020
$
30 June
2019
$
19,086
813
30,045
31,149
19,899
61,194
Page 30Page 30Page 30
Consulting expenses
Tax agent fees
Company secretarial and accounting services
Compliance expenses
Share registry fees
ASX fees
Audit Fees
Insurance
Other compliance expenses
Marketing
Marketing and promotion
Exploration expenses
General exploration expenditure written off
Capitalised exploration expenditure impaired
6. Income Tax Expense
(a)
Income tax expense:
Current tax
(b) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax
expense
Tax at the Australian tax rate of 27.5% (2019: 27.5%)
Tax effect of amounts which are not deductible
(assessable) in calculating taxable income:
Temporary differences not brought to account
Income tax expense
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
Consolidated
30 June
2020
$
5,400
99,115
104,515
37,785
28,193
52,327
24,870
6,446
149,621
30 June
2019
$
5,400
145,270
150,670
49,460
20,824
54,936
20,525
8,869
154,614
4,107
5,146
4,107
5,146
-
40,629
1,530
159,896
40,629
161,426
Consolidated
30 June
2020
$
30 June
2019
$
-
-
(453,694)
(401,733)
(124,766)
(110,477)
124,766
110,477
-
-
A deferred tax asset (DTA) has not been recognised in respect of temporary differences as they do not meet the recognition
criteria as outlined in Note 1(f) of the financial statements. A DTA has not been recognised in respect of tax losses either as
realisation of the benefit is not regarded as probable.
The Company has unrecognised DTAs of $8,385,070 (2019: $8,260,304) that are available indefinitely for offset against future
taxable profits.
The tax rates applicable to each potential tax benefit are as follows:
•
•
timing differences – 27.5%
tax losses – 27.5%
Page 31Page 31Page 31 7. Current assets - Cash and cash equivalents
Cash at bank and in hand
Term deposits
(a) Risk exposure
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
Consolidated
30 June
2020
$
30 June
2019
$
784,108
17,000
143,682
17,000
801,108
160,682
The Company's exposure to interest rate risk is discussed in note 2. The maximum exposure to credit risk at the end of each
reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.
8. Current assets - Trade and other receivables
Net trade receivables
Trade and other receivables
Provision for doubtful debts
Consolidated
30 June
2020
$
30 June
2019
$
322,099
(322,099)
366,597
-
366,597
Trade and other receivables is an outstanding amount from Lloyd George Mining Pty Ltd for milling charges relating to a toll
treatment campaign at the Burbanks mill during June 2019. This amount has been outstanding since July 2019 and the
Company commenced legal recovery action during the year. As the amount has been outstanding for over 12 months, the
Company has booked a provision against this total amount.
-
9. Current assets - Other current assets
Prepayments
Consolidated
30 June
2020
$
30 June
2019
$
12,326
35,023
12,32\6
35,023
Page 32Page 32Page 32
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
10. Disposal group classified as held for sale and discontinued operations
During the 2019 financial year, management decided to discontinue operations at the Burbanks Mill, in line with its strategy to focus
on the Company’s exploration assets. Consequently, assets and liabilities allocated to Burbanks were reclassified as a disposal
group. Revenue and expenses in relation to the discontinuation of this subgroup have been eliminated from profit and loss from the
Group’s continuing operations and are shown as a single line item in the statement of profit or loss.
In September 2019, the Burbanks Mill was sold for $5.2 million cash to Mineral Ventures Pty Ltd.
Operating losses of the Burbanks Mill until the date of disposal and the profit or loss from re-measurement and disposal of assets and
liabilities classified as held for sale are summarised as follows:
Revenue - milling
Other income
Total income
Cost of sales
Milling expenses - consumables
Crushing expenses
Leaching expenses
Laboratory expenses
Gold room expenses
Tailings Dam expenses
Employee expenses
Insurance expenses
Depreciation
Licence fees
Legal fees
Travel expenses
Other mill expenses
Total cost of sales
Operating loss
Profit from sale of plant & equipment (including restoration/rehabilitation provision)
Finance costs
Profit/(loss) from discontinued operations before tax
Tax expense
30 June 2020
30 June 2019
$
$
-
94,299
94,299
2,890,674
35,296
2,925,970
72,938
5,052
-
2,315
6,448
58
223,684
8,045
489
166
186,173
-
98,693
604,061
1,441,146
736,730
347,904
84,393
67,859
60,284
1,268,706
54,889
211,362
1,507
114,407
11,814
160,370
4,561,371
(509,762)
2,537,949
(4,470)
2,023,717
(1,635,401)
-
(70,149)
(1,705,550)
-
-
Profit/(Loss) for the year from discontinued operations
2,023,717
(1,705,550)
The carrying amounts of assets and liabilities in this disposal group are summarised as follows:
Current assets
Property, plant and equipment
Inventories - consumables
Assets classified as held for sale
Current liabilities
Provisions – employee entitlements (Mill staff)
Provisions – restoration/rehabilitation
Liabilities classified as held for sale
30 June 2020
30 June 2019
-
-
-
-
-
-
3,498,875
19,375
3,518,250
52,778
876,203
928,981
Page 33Page 33Page 33
Cashflows used by Burbanks Mill for the reporting periods under review until its disposal are as follows:
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
Operating activities
Investing activities
Cashflows from/(used in) discontinued operations
11. Plant and equipment
Consolidated
At 30 June 2020
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2020
Opening net book amount
Assets scrapped
Asset purchases
Depreciation charge
Assets held for sale included in disposal group
Closing net book amount
At 30 June 2020
Cost or fair value
Accumulated depreciation
Net book amount
Consolidated
At 30 June 2019
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2020
Opening net book amount
Assets scrapped
Asset purchases
Depreciation charge
Assets held for sale included in disposal group
Closing net book amount
30 June 2020
30 June 2019
$
(1,989,570)
5,200,000
3,210,430
(1,036,068)
-
(1,036,068)
Other plant
and
equipment
$
Burbanks
plant &
equipment
$
Burbanks
Office
equipment
and furniture
$
Total
$
1,101
(662)
439
439
-
-
439
-
-
1,101
(1,101)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,101
(662)
439
439
-
-
439
-
-
1,101
(1,101)
-
Other plant
and
equipment
$
Burbanks
plant &
equipment
$
Burbanks
Office
equipment
and furniture
$
Total
$
22,222
(21,121)
4,200,364
(225,379)
24,356
(2,846)
4,246,942
(249,346)
1,101
3,974,985
21,510
3,997,596
1,101
-
-
(662)
-
439
3,974,985
(301,878)
15,720
(208,528)
(3,480,299)
21,510
-
-
(2,934)
(18,576)
3,997,596
(301,878)
15,720
(173,840)
(3,498,875)
-
-
439
Page 34Page 34Page 34 At 30 June 2020
Cost or fair value
Accumulated depreciation
Net book amount
12. Non-current assets - Exploration and evaluation
Exploration and evaluation
Movement:
Opening balance
Expenditure incurred
Impairment of capitalised expenditure
Closing balance
13. Current liabilities - Trade and other payables
Trade payables
Other payables and accruals
14. Current liabilities – Provisions
Provision – Employee benefits
Opening current liabilities provisions at 1 July 2019
Employee benefits paid out
Closing current liabilities provisions at 30 June 2020
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
22,222
(21,783)
439
-
-
-
-
-
-
22,222
(21,783)
439
Consolidated
30 June
2020
30 June
2019
2,775,089
489,919
(40,629)
3,224,379
2,622,942
313,573
(161,426)
2,775,089
Consolidated
30 June
2020
$
30 June
2019
$
160,078
94,895
1,674,984
306,738
254,973
1,981,722
Consolidated
30 June
2020
$
30 June
2019
$
5,109
5,109
126,476
126,476
126,476
(121,367)
5,109
Page 35Page 35Page 35 15. Non-current liabilities – Provisions
Provision – Employee benefits
16. Current liabilities – Financial liabilities
Loans from related parties (refer to note 23)
Financial Liability – Burbanks Mill sale proceeds (a)
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
Consolidated
30 June
2020
$
30 June
2019
$
1,045
1,045
1,045
1,045
Consolidated
30 June
2020
$
-
-
-
30 June
2019
$
100,101
2,750,000
2,850,101
(a) During the year ended 30 June 2019, the Company entered into negotiations with various parties to sell the Burbanks Mill.
During December 2018 the Company signed a Binding Term Sheet with GBF Mining Pty Ltd (GBF) for a 12 month lease
of the Burbanks Mill, commencing in March 2019 or earlier, plus an option to acquire 50% of the equity in the Company’s
wholly owned subsidiary, EGMS. GBF paid lease option fees totalling $750,000 to the Company. During April 2019 the
Company terminated the agreement with GBF. This amount was fully repaid to GBF following sale of the Burbanks Mill
to Mineral Ventures Pty Ltd in September 2019.
On 4 April 2019 the Company entered into agreement with Adaman Resources Ltd (Adaman) to sell 100% of the Burbanks
Mill for $5.8 million, with adjustments for major component defects identified during due diligence. The agreement with
Adaman included an immediate payment of $2,000,000. The amount was fully repaid to Adaman during September 2019
following sale of the Burbanks Mill to Mineral Ventures Pty Ltd.
Page 36Page 36Page 36 17. Contributed equity
(a) Share capital
Ordinary shares
Fully paid
(b) Movements in ordinary share capital:
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
Consolidated
Consolidated
30 June
2020
30 June
2019
30 June
2020
30 June
2019
87,083,009
34,815,204
42,451,894
40,895,357
$
$
Date
Details
Number of
shares
Issue
price
$
1 July 2018
Opening balance
3,177,304,940
40,325,309
6 September 2018
20 December 2018
3 May 2019
Issue of Shares - placement
Consolidation (1:115)1
Issue of Shares – placement
304,095,000
(3,451,122,692)
4,540,956
$0.001
-
$0.068
Less: Transaction costs arising on share issues
304,095
-
308,785
612,880
(42,832)
30 June 2019
Balance
34,815,204
40,895,357
26 February 2020
18 May 2020
27 May 2020
Issue of Shares - placement
Issue of Shares – Entitlement Issue
Issue of Shares – Shortfall Shares
8,703,801
5,677,136
37,841,868
$0.039
$0.030
$0.030
339,448
170,314
1,135,257
Less: Transaction costs arising on share issues
1,645,019
(88,482)
30 June 2020
Balance
87,038,009
42,451,894
1 At the Company’s Annual General Meeting held on 30 November 2018, the shareholders agreed to consolidate the capital in the
Company on the basis that every 115 shares be consolidated into 1 share, and where the consolidation results in a fraction of a
share being held, the fraction is rounded up to the nearest whole share. The consolidation of capital was completed on 10
December 2018 reducing the number of ordinary shares on issue by 3,451,122,692 to 30,274,248 ordinary shares on issue.
(c) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the
number of and amounts paid on the shares held.
At shareholders' meetings, on a show of hands every holder of ordinary shares present in person or by proxy is entitled to one
vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
(d) Options and rights
There were no options and rights issued during the 2019 and 2020 year in relation to the Maximus Resources Limited Employee
Share Option and Incentive Rights Plans.
Page 37Page 37Page 37 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
(e) Capital risk management
The Company has no debt which has externally imposed capital requirements.
The Company's debt and capital includes ordinary share capital, supported by property, plant and equipment.
Management effectively manages the Company's capital by assessing its financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels, distributions to
shareholders and share issues.
18. Accumulated losses
Retained Earnings
Balance 1 July
Net profit/(loss) for the year
Balance 30 June
19. Key management personnel disclosures
(a) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Termination benefits
Consolidated
30 June
2020
$
30 June
2019
$
(39,926,602)
1,252,394
(37,820,319)
(2,107,283)
(38,675,208)
(39,927,602)
Consolidated
30 June
2020
$
30 June
2019
$
290,364
9,941
-
444,833
30,132
-
300,305
474,965
Detailed remuneration disclosures and interests held by key management personnel are provided in sections A to E of the
remuneration report, within the Directors Report.
(b) Transactions with key management personnel
The following transactions occurred with related parties:
During the year ended 30 June 2020, Gerard Anderson loaned the Company $40,000. The loan was interest bearing at 8%pa
and was required to repaid upon completion of a successful capital raise. The loan and was fully repaid on 4 June 2020 with
interest of $970.31.
During the year ended 30 June 2018, Mrs G Malaxos, spouse of Mr Kevin Malaxos, loaned the Company $40,000. The loan
was interest bearing at 6%pa and was required to be repaid upon completion of a successful capital raise. The loan was settled
on 30 October 2019 with interest of $5,227.21.
During the year ended 30 June 2020, McClusky & Co Pty Ltd, of which Ms Leigh McClusky is a director provided office space
for the head office. The amount paid for office and rental costs totalled $24,000 excluding GST. The office space is leased on
a month to month basis.
Page 38Page 38Page 38 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
20. Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the Company and its related
practices:
Grant Thornton
Audit and review of financial reports
Taxation Services
Total auditors' remuneration
21. Contingencies
(a) Contingent liabilities
Consolidated
30 June
2020
$
49,434
5,400
54,834
30 June
2019
$
54,936
5,400
60,336
The Company’s wholly-owned subsidiary, Eastern Goldfields Milling Services Pty Ltd (EGMS) is currently undertaking an
arbitration process to determine the final amount payable for a recovered gold reconciliation relating to the Burbanks operations.
During the year EGMS paid the gold in circuit reconciled and agreed, however this amount may vary depending on the outcome
of the arbitration process.
The Group had no other known contingent liabilities as at 30 June 2020 (2019: $NIL).
(b) Contingent assets
The majority of the Adelaide Hills tenement package consisting of 5 tenements, including the Bird in Hand Gold project was sold
to Terramin Australia Limited (“Terramin”) in 2013. The consideration included the following contingent payments from
Terramin:
•
•
$1,000,000 payable upon approval of a Program for Environmental Protection and Rehabilitation; and
$1,000,000 payable upon commencement of bullion production.
Maximus is also entitled to a 0.5% royalty payable upon bullion production in excess of 50,000 ozs.
The Flushing Meadows tenement package was sold to Orex Mining Pty Ltd (now Yandal Resources Ltd) in October 2010.
Maximus is entitled to a gold royalty in respect of gold produced from any part of the tenement area of $40 per ounce on the first
50,000 ounces of gold generated, with the first $200,000 to be pre-paid upon commencement of gold production and $20 per
ounce of gold produced in excess of 50,000 ounces and less than 150,000 ounces to a maximum of $4 million royalty revenue
being received by Maximus. Additionally, there is a 3% net smelter return for any gold by-products or co-products from the
tenement area.
22. Commitments
Commitments for exploration and joint venture expenditure
In order to maintain current rights of tenure to exploration tenements the Company is required to outlay amounts of approximately
$1,133,300 (2019: $1,299,020) to keep these in good standing during the remaining lease tenure.
Page 39Page 39Page 39 Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
23. 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(b):
Name of entity
incorporation Class of shares
Equity holding
Country of
2020
%
2019
%
MXR Minerals Pty Ltd
Eastern Goldfields Milling Services Pty Ltd
Australia
Australia
Ordinary
Ordinary
100
100
100
100
24. Events occurring after the reporting period
Mr Timothy Wither was appointed Managing Director of the Company on 10 August 2020.
Mr Steven Zaninovich was appointed as a Non-Executive Director of the Company on 14 July 2020.
During September 2020, the Company agreed to enter into a placement to raise $3.0 million to sophisticated and professional
investors. The placement is subject to shareholder approval at the General Meeting of the Company to be held on 14 October
2020. The placement will result in 31,578,947 ordinary shares being issued at a price of $0.095 per share. The Directors of
the Company have committed to subscribe for an additional 1,894,737 shares to raise $180,000. The allotment to Directors will
be subject to shareholder approval at the next Annual General Meeting.
On the 14 October 2020 the Company is scheduled to hold a General Meeting of shareholders to ratify the issue of listed options
to shareholders who participated in the placement on 26 February 2020, entitlement issue on 17 May 2020 and shortfall allocation
on 27 May 2020. The General Meeting also includes ratifying the issue of 6,000,000 listed options to the Company’s corporate
advisors. Should all resolutions relating to the issue of options be voted for, the Company will issue 23,407,690 listed options
with an exercise price of $0.11 expiring on 7 January 2022.
There has been no other transaction or event of a material or unusual nature that has arisen in the interval between the end of
the financial year and the date of this report that is likely, in the opinion of the directors, to affect significantly the operations of
the Company, the results of those operations, or the state of affairs of the Company in future financial years.
There are no other events or circumstances that have occurred subsequent to the end of the reporting period that have or will
significantly affect the operations of the Group.
25. Reconciliation of profit after income tax to net cash inflow from operating activities
Profit/(Loss) for the year
Depreciation
Impairment of capitalised exploration expenditure
Gain on debt forgiveness
Profit from sale of mill
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in other operating assets
(Decrease)/increase in trade and other payables
(Decrease)/increase in provisions
Consolidated
30 June
2020
$
1,252,394
439
40,629
-
(2,537,949)
366,597
225,140
(1,726,749)
(121,367)
30 June
2019
$
(2,107,283)
169,085
161,426
(712,613)
-
(23,610)
357,027
131,905
103,566
Net cash (outflow)/inflow from operating activities
(2,500,866)
(1,920,497)
Page 40Page 40Page 40
26. Earnings per share
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
30 June
2020
30 June
2019
Loss from continuing operations attributable to the ordinary equity holders
Profit/(Loss) from discontinued operations attributable to the ordinary equity holders
(771,323)
2,023,717
(401,733)
(1,705,550)
(a) Basic earnings per share
Weighted average number of ordinary shares outstanding during the year used to
calculate basic earnings per share
Basic earnings per share (cents) – continuing operations
Basic earnings per share (cents) – discontinued operations
Total Basic earnings per share (cents)
(b) Diluted earnings per share
Weighted average number of ordinary shares used as the denominator in calculating
diluted earnings per share
Diluted earnings per share (cents) – continuing operations
Diluted earnings per share (cents) – discontinued operations
Total diluted earnings per share (cents)
41,886,091
29,197,915
(1.84)
4.83
2.99
(1.38)
(5.84)
(7.22)
44,156,568
29,197,915
(1.84)
4.58
2.74
(1.38)
(5.84)
(7.22)
Page 41Page 41Page 41 27. Parent Entity
Statement of financial position
Current Assets
Non-current Assets
Total Assets
Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Shareholder’s Equity
Contributed Equity
Retained Losses
Maximus Resources Limited
Notes to the consolidated Financial Statements
30 June 2020
Parent
2020
$
2019
$
795,024
1,495,876
42,335
4,511,465
2,290,900
4,553,800
219,258
1,045
3,585,000
1,045
220,303
3,586,045
2,070,597
967,755
42,451,894
(40,381,297)
40,895,358
(39,927,603)
Capital and reserves attributable to owners
2,070,597
967,755
Statement of profit or loss and other comprehensive income
Loss for the year
Other comprehensive income
(453,694)
(401,733)
Total comprehensive income
(453,694)
(401,733)
Parent Entity Contingencies
Contingent liabilities
The parent entity had no known contingent liabilities as at 30 June 2020 (2019: $NIL).
Contingent assets
The majority of the Adelaide Hills tenement package consisting of 5 tenements, including the Bird in Hand Gold project was sold
to Terramin Australia Limited (“Terramin”) in 2013. The consideration included the following contingent payments from
Terramin:
•
•
$1,000,000 payable upon approval of a Program for Environmental Protection and Rehabilitation; and
$1,000,000 payable upon commencement of bullion production.
Maximus is also entitled to a 0.5% royalty payable upon bullion production in excess of 50,000 ozs.
The Flushing Meadows tenement package was sold to Orex Mining Pty Ltd (now Yandal Resources Ltd) in October 2010.
Maximus is entitled to a gold royalty in respect of gold produced from any part of the tenement area of $40 per ounce on the first
50,000 ounces of gold generated, with the first $200,000 to be pre-paid upon commencement of gold production and $20 per
ounce of gold produced in excess of 50,000 ounces and less than 150,000 ounces to a maximum of $4 million royalty revenue
being received by Maximus. Additionally, there is a 3% net smelter return for any gold by-products or co-products from the
tenement area.
Parent Entity Commitments
(a) Commitments for exploration
In order to maintain current rights of tenure to exploration tenements the Company is required to outlay amounts of approximately
$1,133,300 (2019: $1,299,020) to keep these in good standing during the remaining lease tenure.
Page 42Page 42Page 42 In the directors' opinion:
Maximus Resources Limited
Directors' declaration
30 June 2019
(a)
(b)
(c)
the consolidated financial statements and notes set out on pages 13 to 38 are in accordance with the Corporations
Act 2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements, and
giving a true and fair view of the consolidated entity's financial position as at 30 June 2020 and of their
performance for the financial year ended on that date, and
(ii)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable, and
the financial statements comply with International Financial Reporting Standards as confirmed in note 1(a).
The directors have been given the declarations by the Managing Director and Company Secretary required by section 295A of
the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Gerard Anderson
Director
Adelaide
30 September 2020
Page 43Page 43Page 43
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Independent Auditor’s Report
To the Members of Maximus Resources Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Maximus Resources Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit
or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance for the year ended
on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (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.
Material uncertainty related to going concern
We draw attention to Note 1a) in the financial report, which indicates that the Group incurred a net loss from continuing
operations of $771,323 and a cash outflow from operating (from continuing operations) and investing activities (after removing
the impact of sale proceeds), of $1,047,344 during the year ended 30 June 2020. As stated in Note 1a), these events or
conditions, indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Page 44Page 44Page 44 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.
In addition to the matter described in the material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets - Notes 1n), 1t) and 12
At 30 June 2020 the carrying value of exploration and
evaluation assets was $3,224,379.
In accordance with AASB 6 Exploration for and Evaluation of
Mineral Resources, the Group is required to assess at each
reporting date if there are any triggers for impairment which
may suggest the carrying value is in excess of the recoverable
value.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
obtaining management’s reconciliation of capitalised
exploration and evaluation expenditure and agreeing to the
general ledger;
reviewing management’s area of interest considerations
against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in accordance with
AASB 6 including;
tracing projects to statutory registers, exploration
licenses and third party confirmations to determine
whether a right of tenure existed;
enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure;
understanding whether any data exists to suggest that
the carrying value of these exploration and evaluation
assets are unlikely to be recovered through
development or sale;
assessing the accuracy of impairment recorded for the
year as it pertained to exploration interests;
evaluating the competence, capabilities and objectivity of
management’s experts in the evaluation of potential
impairment triggers; and
assessing the appropriateness of the related financial
statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s Directors report for the year ended 30 June 2020, 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 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.
Page 45Page 45Page 45 Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters 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 have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included the Directors’ report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Maximus Resources Limited, for the year ended 30 June 2020 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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
B K Wundersitz
Partner – Audit & Assurance
Adelaide, 30 September 2020
Page 46Page 46Page 46 Maximus Resources Limited
Tenement Report Schedule
Tenement No. Project
Registered Holder
Maximus Resources Interest
Spargoville Project
M15/1475
M15/1869
L 15/128
L 15/255
M 15/395
M 15/703
Eagles Nest
Maximus Resources Ltd
MXR - 100% of all Minerals
Eagles Nest South Maximus Resources Ltd
MXR - 100% of all Minerals
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
Kambalda West
Maximus Resources Ltd
MXR - 100% all minerals, except Ni rights
M 15/1448
Hilditch
M15/1449
Larkinville
Maximus Resources Ltd
& Bullabulling Pty Ltd
Maximus Resources Ltd
& Essential Metals Ltd
MXR - 90% of all minerals
MXR 75% All minerals + MXR 80% Ni rights
M 15/1101
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1263
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1264
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1323
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1338
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1474
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1769
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1770
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1771
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1772
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1773
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1774
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1775
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
M 15/1776
Wattle Dam
Maximus Resources Ltd
MXR - 100% all minerals + 80% Ni rights
Maximus Resources - 100% Gold Rights
M 15/100
M 15/101
M 15/102
Widgiemooltha
Neometals Ltd
MXR - 100% gold rights
Widgiemooltha
Neometals Ltd
MXR - 100% gold rights
Widgiemooltha
Neometals Ltd
MXR - 100% gold rights
M 15/1271
Widgiemooltha
Neometals Ltd
MXR - 100% gold rights
M 15/653
Widgiemooltha
Neometals Ltd
MXR - 100% gold rights
M 15/97
M 15/99
Widgiemooltha
Neometals Ltd
MXR - 100% gold rights
Widgiemooltha
Neometals Ltd
MXR - 100% gold rights
Page 47Page 47
Maximus Resources Limited
ASX Additional Information
The shareholder information set out below was applicable as at 23 October 2020.
A Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
ORDINARY SHARES
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Rounding
Total
Total holders
1,187
786
534
1,100
195
Units
260,642
2,342,015
4,088,393
37,457,205
75,519,182
% of Issued Capital
0.22
1.96
3.42
31.30
63.11
-0.01
3,802
119,667,437
100.00
There were 1,546 holders of less than a marketable parcel of ordinary shares. At a share price of
$0.18, an unmarketable parcel is 2,778 shares.
LISTED OPTIONS
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Rounding
Total
UNLISTED OPTIONS
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Rounding
Total
Total holders
101
52
7
38
51
Units
31,707
121,838
44,645
1,766,986
21,442,514
% of Issued Capital
0.14
0.52
0.19
7.55
91.60
0.00
249
23,407,690
100.00
Total holders
1,230
600
231
318
50
Units
276,394
1,566,476
1,765,002
10,042,144
21,165,188
% of Issued Capital
0.79
4.50
5.07
28.84
60.79
-0.01
2,429
34,815,204
100.00
Page 48
B Equity Security Holders
Twenty largest quoted equity security holders
ORDINARY SHARES
Rank Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
KITARA INVESTMENTS PTY LTD
HUSTLER INVESTMENTS PTY LTD
JMARC HOLDINGS PTY LTD
MURDOCH CAPITAL PTY LTD
ALISSA BELLA PTY LTD
CITICORP NOMINEES PTY LIMITED
MR DARRYN ANTHONY
BNP PARIBAS NOMINEES PTY LTD
MR PAUL ST WOOD
10. MOUNTS BAY INVESTMENTS PTY LTD
11. MR NICHOLAS BARADAKIS
12. MRS LOUISA CAROLINE JAMMAL
13.
DC & PC HOLDINGS PTY LTD
14. M2 ASSETS PTY LTD
15.
QUEENSLAND FOREST INDUSTRIES PTY LTD
16. MONEX BOOM SECURITIES (HK) LTD
17.
18.
COMSEC NOMINEES PTY LIMITED
ALITIME NOMINEES PTY LTD
19. MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
20. MRS BIANCA LEIGH NASH
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (TOTAL)
Total Remaining Holders Balance
Maximus Resources Limited
ASX Additional Information
Units
% of Units
10,526,316
3,500,000
2,516,474
1,900,000
1,897,368
1,544,992
1,375,000
1,362,437
1,210,000
1,180,264
1,130,435
1,100,000
1,025,000
904,859
864,000
830,000
751,296
710,000
652,923
635,824
35,617,188
84,050,249
8.80
2.92
2.10
1.59
1.59
1.29
1.15
1.14
1.01
0.99
0.94
0.92
0.86
0.76
0.72
0.69
0.63
0.59
0.55
0.53
29.76
70.24
LISTED OPTIONS
Rank Name
Units
% of Units
HUSTLER INVESTMENTS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD
KCIRTAP SECURITIES PTY LTD
MURDOCH CAPITAL PTY LTD
ALISSA BELLA PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD
3,851,539
1,291,667
1,291,666
1,142,992
1,124,468
1,086,326
SYRACUSE CAPITAL PTY LTD
1,064,104
CAPRETTI INVESTMENTS PTY LTD
JMARC HOLDINGS PTY LTD
SYRACUSE CAPITAL PTY LTD
SOLEQUEST PTY LTD
LMPACFT PTY LTD
CHARLTON WA PTY LTD
14. MR MARTIN ROSS HELEAN
15.
16.
ICE LAKE INVESTMENTS PTY LTD
UNDERLEX PTY LTD
17. MR ROHAN CHARLES EDMONDSON
18.
19.
LZ VINCI NOMINEES PTY LTD
DR RODGER DOUGLAS PRYDE PATERSON
20. M2 ASSETS PTY LTD
Totals: Top 20 holders of LISTED OPTIONS (TOTAL)
Total Remaining Holders Balance
1,000,000
758,549
645,834
632,428
466,668
388,889
333,334
333,334
333,334
283,334
283,334
283,334
238,462
16,833,596
6,574,094
16.45
5.52
5.52
4.88
4.80
4.64
4.55
4.27
3.24
2.76
2.70
1.99
1.66
1.42
1.42
1.42
1.21
1.21
1.21
1.02
71.91
28.09
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Page 49
Maximus Resources Limited
ASX Additional Information
UNLISTED OPTIONS
Rank Name
1.
2.
3.
4.
5.
6.
GUINA NOMINEES PTY LTD
MR KELVIN GLEN CROSBY + MRS BEVERLEY ANNE
CROSBY
WILLING VALE PTY LTD
MR PAUL GREGORY BROWN + MRS JESSICA ORIWIA
BROWN
GIRGIS NOMINEES (WA) PTY LTD
MRS STEPHANIE MICHELL
Totals: Top holders of UNLISTED OPTIONS (TOTAL)
Total Remaining Holders Balance
Units
500,000
175,000
175,000
150,000
150,000
70,000
1,220,000
0
% of Units
40.98
14.34
14.34
12.30
12.30
5.74
100
C Substantial holders
As at 23 October 2020 the following were substantial shareholders:
Shareholder
Kitara Investments Pty Ltd
Units
10,526,316
% of Units
8.80
D Voting Rights
The voting rights attaching to each class of equity securities are set out below:
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 once vote.
Options (Listed and Unlisted)
No voting rights.
Page 50
Principal and Registered Office
246 Angas Street
ADELAIDE SA 5000
Postal Address
GPO Box 1167
ADELAIDE SA 5001
Email
info@maximusresources.com
Phone
08 7324 3172
maximusresources.com
ASX:MXR
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