ABN 51 127 297 170
Metal Bank Limited
and its controlled entities
Annual Financial Report
For the year ended
30 June 2021
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
CONTENTS
Letter from the Chair
Review of Operations
Schedule of Tenements and Competent Persons Statements
Corporate Governance
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Director’s Declaration
Independent Audit Report to the Members of Metal Bank Limited
Additional Information for Listed Companies
Corporate Directory
1
2 – 12
13
14
15 – 21
22
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24
25
26
27 – 47
48
49 – 52
52 – 53
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
LETTER FROM THE CHAIR
Dear Shareholder
On behalf of the Directors of Metal Bank Limited (Metal Bank, MBK or the Company), I am pleased to report on
the activities of the Company for the year ended 30 June 2021.
During the year our activities have been focussed on growth through exploration on our existing projects,
identification of new opportunities which complement our existing portfolio, and pursuit of other opportunities
to diversify our assets, whether through the acquisition of advanced projects or cash-flow generating assets to
assist with funding of our exploration portfolio.
In pursuit of this strategy, we have:
-
-
-
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completed drilling programs at the Eidsvold project confirming the hydrothermal system and
intersecting strong alteration and mineralisation at the Great Eastern Target, with further work
undertaken to refine the bulk tonnage target area;
completed drilling programs at 8 Mile confirming the continuity of the mineralised system over greater
than 400m along strike and 200m at depth and providing support for the Company’s exploration
strategy for locating a potential mineralized bulk tonnage Au system at depth, down-dip of Flori’s Find;
obtained the grant of the Wild Irishman tenements adjacent to 8 Mile, providing the potential for
southern extensions to Floris Find to grow the existing Inferred Resource, as well as new target areas;
and
entered into an exclusive option agreement over the Millennium copper-cobalt project near Mt Isa,
presenting MBK with an excellent opportunity to acquire a copper-cobalt asset of significant size with
potential to expand mineralisation.
We have also been actively reviewing other new opportunities within Australia and have continued to progress
work with government and stakeholders in the MENA region with a view to securing an advanced copper
exploration project.
We also welcomed Rhys Davies as our new exploration manager in 2021. Rhys has extensive experience in
mineral exploration and project management and his extensive knowledge and contacts within the industry have
significantly advanced our pursuit of new growth opportunities.
We have not experienced any substantial disruption as a result of COVID-19 this financial year, however, the
health and safety of our team and contractors remains paramount and we have adopted and implemented strict
protocols to minimise any potential risks.
We look forward to continued exploration success and securing more growth opportunities in the year ahead
and we thank our shareholders for their ongoing support.
Inés Scotland
Non-executive Chair
28 September 2021
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
REVIEW OF OPERATIONS
Highlights
Millennium
Project
Eidsvold
Project
Option to earn-in to up to an 80% interest
Project contains an inferred Cu equivalent Mineral Resource of 5.9MT1
with substantial growth upside
Hydrothermal system confirmed
Strong alteration and mineralisation intersected at Great Eastern
Target
Bulk tonnage target area refined
8 Mile Project Moved from discovery to an advanced project
Maiden Inferred Resource and Exploration Target2 and close to a
potential bulk tonnage target
Wild Irishman New project granted after the end of the financial year, adjacent to 8
Mile providing potential for southern extensions to Floris Find to grow
the existing Inferred Resource
Project contains two historical gold workings
Corporate
Focus on growth
Rhys Davies appointed as Exploration Manager
Triumph sale completed
Focussed on growth
MBK’s core focus is on creating value through a combination of exploration success and quality project
acquisition. The company’s key projects are the 8 Mile and Eidsvold gold projects and the new Wild Irishman
tenement (granted after the end of the financial year), situated in the northern New England Fold Belt of
central Queensland, which also hosts the Cracow (3 Moz Au), Mt Rawdon (2 Moz Au), Mt Morgan (8 Moz Au,
0.4Mt Cu) and Gympie (5 Moz Au) gold deposits. Each of these projects are associated with historical
goldfields and represent intrusion related gold systems (IRGS) with multi-million-ounce upside (Error!
Reference source not found.).
The Company is committed to a strategy of diversification and growth through identification of new
exploration opportunities which complement its existing portfolio and pursuit of other opportunities to
diversify the Company’s assets through acquisition of advanced projects or cash-flow generating assets to
assist with funding of the exploration portfolio.
In pursuit of this strategy, the Company entered into an exclusive option agreement during the year to earn
up to an 80% interest in the advanced Millennium copper-cobalt project near Mt Isa.
1 HMX ASX Announcement dated 6 December 2016 “Millennium Mineral Resource Estimate”
2 MBK: ASX Release 23 April 2020
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Figure 1: Metal Bank Projects in Queensland [update]
Millennium Project
The Millennium Project is an advanced copper-cobalt-gold exploration and development project located in
the Mount Isa region of northwest Queensland, 19km from the Rocklands copper-cobalt processing facility.
The Millennium Project holds a 2012 JORC-compliant Inferred Resource of 5.9MT @ 1.08% CuEq3 across 5
granted Mining Leases with significant potential for expansion, all proximal to processing solutions and
excellent infrastructure in the Mount Isa region.
In June 2021, MBK secured an exclusive 6 month option over the Millennium Project under its agreement
with Global Energy Metals Corporation (TSXV:GEMC) (‘GEMC’) and its wholly owned subsidiary, Element
Minerals Australia Pty Ltd. At the end of the option period, MBK will have the right to commence a formal
earn-in to earn up to an 80% interest in the Project4.
The Project presents as an excellent opportunity for MBK to acquire a copper-cobalt asset of significant size
with potential to expand mineralisation.
Following the end of the financial year, MBK completed an initial drilling program on the Millennium Project
focussed on resource validation work in the southern part of Project area and on assessing whether the
mineralised system continues in the Northern Extension Area. The results of this program are summarised
below.
MILLENNIUM DRILLING PROGRAM
The Millennium drilling program commenced in August 2021 in the Southern Area (as shown in Figure 2
below), with two reverse circulation (RC) holes for 195m (MI21RC01-02) aimed at testing resource gaps and
low confidence zones as part of Resource validation work.
A further 5 RC holes for 478m (MI21RC03-07) were completed in the Northern Area (also shown in Figure 2)
testing potential for mineralisation in the northern part of the Project area as indicated by previous mapping,
geochemistry and structural interpretation.
3HMX ASX Announcement dated 6 December 2016 “Millennium Mineral Resource Estimate”.
Copper equivalent (CuEq) calculation was based solely on commodity prices using prices as follows: Cu:
US$4,600/t; Co: US$27,000/t; Au: US$1,330/oz; and Ag: US$20/oz
4 Refer MBK ASX Releases 7 June and 28 June 2021
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
SOUTHERN AREA DRILLING5
Two drill holes tested gaps in the existing resource and the potential for extensions in the northern margin of
the southern area of the resource with excellent results.
MI21RC01 was undertaken to infill a gap in the 2016 resource model in an area of low confidence drilling
(Figures 2). Two main, broad zones of Cu-Co mineralisation and associated alteration were noted including
semi-massive sulphides of bornite, chalcopyrite and pyrite. These two zones returned assay results of 17m @
0.33% Cu, 0.08% Co and 0.12g/t Au from 56m (including peak 1m assay values of 0.91% Cu), and 16m @
1.07% Cu, 0.26% Co and 0.40g/t Au from 80m, including a high grade zone of 5m @ 2.92% Cu, 0.50% Co and
1.19g/t Au from 82m. In addition, several other intervals of notable elevated Cu and Co were returned.
These MI21RC01 results support up-dip continuity of mineralisation into an area outside the 2016 Resource
model area and in addition, identify potential for lateral extension of the Resource to the north within the
current gap region between the Southern Area and Central Area resources.
Importantly, the results highlight significant Co values in areas previous indicated to be marginal, and also
suggests that other high-grade zones may be present at Millennium in structurally controlled shoots not
previously targeted by drilling.
MI21RC02 (Figure 2) was drilled to validate and infill the 2016 Resource model in an area of structural
complexity and modelled low grade.
Drilling successfully validated the model with mineralisation observed over a broad interval returning 16m @
0.34% Cu, 0.06% Co and 0.06g/t Au from 64m. Notably, as with MI21RC01, there are peripheral higher grades
of interest including 2m @ 0.07% Cu and 0.29% Co from 41m above this broader zone, and a lower zone of
3m @ 0.59% Cu and 0.14% Co from 84m.
The results from the two southern drill holes, combined with previous drilling results by GEMC summarised
below, are considered very encouraging, providing confidence in the potential to expand and upgrade the
current Resource.
Southern Area previous drilling
GEMC conducted a 10-hole, 1,141 metre drilling campaign on the Millennium Project during 2017 and 2018
to test the up-dip continuity at the Millennium North deposit and confirm historical estimates of cobalt
mineralisation reported in 2016 by Hammer Metals. GEMC were successful in both duplicating historical
results, demonstrating the continuity of mineralisation within the mineralised zone and in determining
mineralisation continues to depth, including 28m @0.35% Cu and 0.2% Co (MIRC026). Significantly, cobalt
and copper mineralisation was encountered along the entire targeted 1500 metre strike length with the zones
remaining open in all directions.
Prior the GEMC’s involvement, the project area had been tested by only 73 drill holes (percussion, RC and
diamond) for a total of 7,891 metres. Most holes have been drilled within 200 metres of surface, with few
holes reaching to depths greater than 250 metres below surface. At present mineralisation remains open at
depth and along the strike extent of the JORC resource area.
Hammer Metals Ltd (ASX: HMX) (‘Hammer Metals’) announced a maiden JORC (2012) resource in 2016 on
the Millennium Project6 completed by Haren Consulting, comprised of an Inferred Resource of 5.89 million
tonnes @ 1.08 CuEq (using CuEq cutoff of 0.7%), summarised in Table 2 below. The copper equivalent (CuEq)
calculation for the Resource was based solely on commodity prices using the following prices: Cu: US$4,600/t;
Co: US$27,000/t; Au: US$1,330/oz; and Ag: US$20/oz.
Cu Eq Cut-off
Tonnes
CuEq (%)
Cu (%)
Co (%)
Au (ppm)
Table 1: Millennium JORC (2012) Resource
1.00%
3,070,000
0.70%
5,890,000
1.29
1.08
0.35
0.32
0.14
0.11
0.12
0.11
5 MBK ASX Release 8 September 2021
6 HMX ASX Announcement dated 6 December 2016 “Millennium Mineral Resource Estimate”
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Figure 2: Millennium Project plan view showing interpreted basement geology, existing Millennium
resource outline, previous and MBK drilling, exploration targets and Northern Area RC drilling results.
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
NORTHERN AREA DRILLING
First-pass drilling in the Northern Area for (MI21RC03-07) has been completed7, testing anomalous surface
Co-Cu geochemistry, previously mapped geological units and structures similar to mineralisation features in
the Southern and Central Areas. This area is approximately 800-1000m north along strike, has had no previous
drilling and does not form part of the existing Millennium resource. Drilling was conducted in two fences on
two lines 250m apart.
Copper oxides were observed near surface and sulphides were observed deeper downhole, including 8m @
0.76% Cu from 62m (MI21RC05), associated with contact zones between metasedimentary units and
graphitic siltstones. Individual Cu assays peak at 1.50% from 67m depth.
While appearing restricted to the south and east, Cu mineralisation in the Northern Area remains open to the
West, North and at depth. The relationship between this mineralisation and the Fountain Range / Quamby
Fault warrants further investigation. In addition, the eastern areas are not completely drill tested.
The results support Metal Bank’s exploration approach at Millennium to expand the known mineralisation
and justify the surface soil copper anomalism within basement rock on the eastern contact of the regional
Pilgrim/Fountain Range Fault system. Importantly, substantial hydrothermal alteration is developed in this
area and may indicate proximal siting for metal transport and/or deposition. This may open up potential for
additional resources along strike and/or peripheral to the known resource.
FUTURE WORK PROGRAMS
MBK is undertaking a review of all existing results in the JORC Resource areas to assess current scope for
tonnage and grade updates, additional target areas and further work requirements in both the Southern and
Central Areas of the resource.
Pending outcomes from the Resource review and scoping work, in light of the encouraging copper results in
the Northern Area further work is underway to extend the basement mineralisation, define high grade target
zones and understand mineralisation relationships with the adjacent Quamby/Pilgrim Fault system. Work will
also seek to determine the metal zonation aspects noted between the Northern and Central/Southern Areas.
In addition, the Federal and Corella Trends require assessment for potential to add additional targets and
resources to the project.
Eidsvold Project
The Eidsvold Project presents a 7km2 opportunity at its Great Eastern Target8 of a similar scale and
geophysical response to the 3M oz Au Mt Leyshon deposit, located 6 km northeast of the Eidsvold historical
goldfield with 100,000 oz Au historical production.
The presence of a large hydrothermal system at the Great Eastern Target was confirmed by the first two drill
holes completed to fulfill the Queensland Government CEI (Collaborative Exploration Initiative) Grant to MBK
in 20209.
Additional petrological, geophysical studies were carried out in the first Quarter of 2021, providing strong
evidence for a new priority Cu-Au porphyry style target approximately 1km to the west of previous drilling.
Two additional PCD/DD holes for 954.3m were completed during the June 2021 Quarter (GET004-5, Figure
3,). These holes targeted the western magnetic anomaly interpreted as the possible causative intrusion for
the intrusion-related Au and Cu-Mo mineralisation as intersected in the CEI drilling10.
While a causative intrusion for precious and base metal overprint of the early weak Cu-Mo porphyry style
system, as identified in the central area of the Great Eastern Target in previous drilling, was not intersected,
metal associations in the veins indicate marginal to intermediate position from the intrusive metal source.
7 MBK ASX Release 23 September 2021
8 MBK ASX Release 5 May 2020
9 MBK ASX Release 16 November 2020
10 MBK ASX Release dated 2 February 2021
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
In addition to the drilling, a western extension of the existing Induced Polarisation (IP)/resistivity line was
conducted. This was aimed at continuing deep detection of electrical signatures characteristic of altered
zones in a Mt Leyshon-style system and to provide better reconciliation of basement depths for favourable
drill testing.
The response showed a clear shallowing of basement lithology to the west towards a large scale western
bounding structure (Figure 3), extending the open target area further west and at shallower target depths.
Due to the deep and conductive cover sequence in the centre of the target area the basement response was
inconclusive, however, structural features were observed at the western edge of the survey indicating a
north-south trending fault.
The Company is encouraged by the continued growth of observed alteration and the shallowing of the system
to the west. Interpretation of the latest geological and geophysical data suggest the possible causative
intrusive/s may be coincident with the western bounding structure identified in recent IP, structural
orientations taken from drill core, zones of magnetite destruction and a complex reverse-magnetic anomaly
approximately 1km to the south of GET004.
Figure 3: Showing the potential source location of an Au-Cu mineralised intrusion based on outcome of Queensland
Government CEI funded drilling at the Great Eastern Target
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
FUTURE WORK PROGRAMS
Further work programs for the Eidsvold project based on the results to date, are designed to include
additional detailed geophysics (IP) and structural analysis with the aim of fine targeting the location of the
causative intrusive/s prior to drilling focussing over an area of structural complexity to the south of the drilling
conducted during the year. (Figure 3).
In addition to the Great Eastern Target, the Eidsvold project area covers the historical Eidsvold 100,000oz
goldfield and presents a number of additional targets with bulk tonnage potential. Work programs are
designed to assess these additional targets.
Assessment of the historical goldfield for linkage to the Great Eastern Target is ongoing.
Figure 4: Map showing upcoming targets: Great Eastern, Tower Hill and Mt Jones
8 Mile and Wild Irishman Projects
8 Mile Project
The 8 Mile project is centred on the Perry goldfield and represents a large hydrothermal mineral system
located near the Mt Rawdon gold deposit in south-east Queensland, Australia.
Mineralisation is focused along a >3.6km mineralized corridor at the Eastern Target, including a near surface
maiden Inferred Mineral Resource of 195,000t @ 2.4g/t Au at the Flori’s Find prospect forming the basis for
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
an Exploration Target of 3.6 to 5.1 Mt grading between 1.60 - 2.14 g/t Au for a total of 180,000 to 355,000 oz
Au using a nominal 1 g/t Au cut-off and limited to approximately 120m below surface.11
The Western Target and northern extensions of the Eastern Target remain untested.
The Flori’s Find prospect along with the Perry Prospect together represent the Eastern Target of the 8 Mile
Project. Geology of the Eastern Target comprises mainly Good Night Beds, a package of metamorphic
sandstones and phyllites. A locally faulted corridor within the Good Night Beds has been intruded by
unaltered to extensively altered Triassic age felsic intrusive rocks interpreted to represent high level
emplacement characteristic of a sub-volcanic level intrusive related gold system. These types of systems
typically occur in diatreme / vent breccias which form within 1 to 2 km from surface.
Mineralisation at the Eastern Target is expressed at surface along a 3.6 km north-northeast corridor defined
in soil geochemistry (refer to Figure 5). Flori’s Find and Perry prospects are located along this corridor and
ore geometries defined in drilling beneath soil geochemistry anomalies at both prospects dip towards the
west at 30 to 40 degrees. There is good evidence in the data to suggest that both prospects are linked and
interpreted to occur due to leakage of mineralising fluids out from a buried intrusion or intrusions.
Figure 5: Map of MBK 8 Mile project showing the Eastern Target extending beyond the southern boundary
and into the Wild Irishman project area.
11 MBK ASX Release dated 23 April 2020
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Drilling conducted during the second half of 202012, included the first direct test for bulk tonnage style
mineralisation at Flori’s Find prospect (ETDD037). The hole returned four intercepts within a 52m zone of
strong alteration from 219m downhole and 125m down-dip of previous drilling. Results include 4m @ 0.84
g/t Au from 219m, 5m @ 0.64 g/t Au from 266m and anomalous molybdenum zones up to 10m @ 519ppm
Mo from 248m. A composite uncut interval over the entire altered zone returned 52m @ 0.3g/t Au and
250ppm Mo.
This drilling program established the geometry of the mineralised system as plunging to the northwest, with
ETDD037 intersecting mineralisation on the southern margin of the system. The results provided strong
support for the Company’s exploration strategy for locating a potentially mineralized bulk tonnage Au system
at depth, down-dip of Flori’s Find deposit.
A second round of drilling was completed during the first quarter of 2021, with a total of 8 holes for 1270.3m
at the Perry and Flori’s Find Au prospects. The drilling results provided strong indication of the continuity of
the mineralised system over greater than 400m along strike and 200m at depth.
The mineralised system remains open along strike to the northeast and at depth.
FUTURE WORK PROGRAMS
The Company continues to develop understanding of the 8 Mile project area towards expanding the Mineral
Resource and realising the Exploration Target with future work programs designed to focus on.
generative work targeting extensions north of the Perry system and at the ‘Western Target’ including
initial geochemical sampling;
stepping out Flori’s Find along strike to the northeast;
infill drilling of the near surface Exploration Target to convert it to a Mineral Resource; and
further detailed analysis of the deep testing at Flori’s Find to evaluate the likely target depth of the
main intrusion system.
Wild Irishman Project
EPM 27693 for the Wild Irishman project was granted in August 2021 after the end of the financial year13.
Wild Irishman, adjacent to the 8 Mile project, enhances the Company’s search for intrusive related Au systems
in a prospective region that hosts multi-million-ounce gold mines including the Cracow (3Moz Au), and
Mt Rawdon (2Moz Au) gold mines as well as the historical Mt Morgan deposit (8Moz Au).
Wild Irishman includes two historical gold prospects and will allow MBK to actively explore for southern
extensions to the Floris Find mineralisation at 8 Mile and potentially grow the existing JORC resource14.
Wild Irishman and Bullant
Wild Irishman, located approximately 20km south-east of Gin Gin, is contiguous with the 8 Mile Project, and
hosts two historical gold prospects: Wild Irishman and Bullant. (Figure 6)
Historically Wild Irishman produced 79 ounces of gold at an average grade of 17g/t Au in the 1930’s. Workings
comprised a series of shafts and drives up to 15m deep over 50m strike. Gold is hosted in quartz veins and
stockworks associated with the intrusion of various granitoids, with grades in areas exceeding 40g/t (1934
government sampling). These
in the surrounding
metasediments, with shallow drilling by Placer in 1994 intersecting hornfels sediments suggesting the
interpreted intrusion remains untested.
intrusions form altered margins and hornfels
At Bullant, 1km to the SE of Wild Irishman, a north-south trending brecciated and mineralised fault appears
to extend for 3km with workings present over a strike of 200m. Au mineralisation of up to 27.4g/t Au was
12 MBK:ASX Release 16 November 2020
13 MBK:ASX Release 4 August 2021
14 MBK ASX Release 23 April 2020
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
reported in rock chips. Limited drilling in 1988 by Keela-Wee Exploration and Axis Mining intercepted 10m @
1.4g/t Au. This zone is also coincident with hydrothermal destruction of magnetite in regional magnetic data
suggesting a blind IRG system.
Initial work programs to be completed in 2021 include initial field reconnaissance, mapping and systematic
surface geochemistry (subject to Covid-19 travel restrictions).
Floris Find extensions
Metal Bank is actively exploring for intrusion related gold in the Goodnight Beds within 8 Mile’s EPM26945.
The Eastern Target, including the Flori’s Find prospect, is in the southeast of the EPM area and was the main
focus for advanced exploration activities in early 2021. Geological mapping and interpretation by MBK
indicates that this target continues south into the newly granted Wild Irishman EPM27693.
The grant of the Wild Irishman EPM allows MBK to actively explore for southern extensions to the Floris Find
mineralisation and potentially grow the existing JORC resource.
MBK’s planned initial field reconnaissance at Wild Irishman, including geochemical sampling, will build on
MBK’s work to the north. Subject to results, subsequent ground geophysics is proposed to refine drilling
targets to be tested in conjunction with the next phase of work at Flori’s Find, aimed at infilling the near
surface Exploration Target conversion to a Mineral Resource.
Figure 6: Geological map of 8 Mile and Wild Irishman with high priority areas
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
Corporate
Triumph project sale
The Triumph Project is an intrusion-related gold camp centred about the historical high-grade Norton
goldfield (mined in the late 1800’s and again in the 1990’s) located between Mt Rawdon (2Moz Au) gold mine
and the historical Mt Morgan (8Moz Au and 0.4Mt Cu) mine in the Northern New England Orogen, south-east
Queensland.
Metal Bank’s exploration on the Triumph Project resulted in the discovery of multiple high-grade gold zones
occurring near surface and defined a large-scale gold system centred around the historical Norton goldfield.
The high-grade gold mineralisation was interpreted as leakage above bulk tonnage style gold systems similar
to other large intrusion related gold mines in Queensland with four priority bulk tonnage targets identified
<200m below surface.
During the financial year, MBK entered into an agreement with an unrelated private group (Purchaser)
granting the Purchaser an exclusive option (exercised by the Purchaser upon signing) (Option) to purchase
the Company’s Triumph tenements for a total potential consideration of $6.4 million plus a 1% gross royalty.
Completion of the sale of the tenements occurred in September 2020.
The total potential consideration for the disposal of the Triumph tenements of $6.4 million is equivalent to the
project’s net asset value. The 1% royalty is in addition to this potential consideration providing the Company
with exposure to the upside from the project. The disposal of the Triumph tenements also provided cash of
$400,000 to fund exploration activities on the Company’s other projects.
New Growth Opportunities
The Board is committed to a strategy of diversification and growth through identification of new
opportunities which complement its existing portfolio and pursuit of other opportunities to diversify the
Company’s assets through acquisition of advanced projects or cash-flow generating assets to assist with
funding of the exploration portfolio.
In pursuit of this strategy, the Company continued with its review and analysis of new opportunities during
the year with confidential due diligence reviews over a number of brownfield copper and gold projects in
Australia.
The Company also progressed discussions in the MENA region for the grant of brownfield exploration sites
with previous high grade copper workings.
New Exploration Manager
Rhys Davies was appointed as the Company’s Exploration Manager following the resignation of Trevor
Wright. Rhys is a geologist with extensive experience in mineral exploration and project management in the
mining and resources industry across a diverse range of commodities and mineralisation styles. He has
experience in private and public sector organisations, having most recently managed the Geological Survey
of Queensland’s CEI Grants. Trevor remains committed to the success of the Company’s exploration projects
and continues as a consultant to the Company.
Sue-Ann Higgins
Executive Director
28 September 2021
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TENEMENT SCHEDULE AND COMPETENT PERSONS STATEMENT
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
Schedule of Tenements
Tenements
Location
Percentage Interest
Roar Resources Pty Ltd (Wholly Owned Subsidiary)
Eidsvold Project
EPM 18431
EPM 18753
8 Mile Project
EPM26945
Wild Irishman Project
EPM27693
EPM – Exploration Permit
Queensland
Queensland
100%
100%
Queensland
100%
Queensland
100%
Competent Persons Statement
The information in this Report that relates to Exploration Results and Exploration Target statements is
based on information compiled or reviewed by Mr Rhys Davies. The Company is not aware of any new
information or data that materially affects the information included in referenced ASX Releases and in
the case of reported Mineral Resources, all material assumptions and technical parameters
underpinning the estimates continue to apply and have not materially changed. Mr Davies is a Member
of The Australasian Institute of Geoscientists and is a contractor to the Company. Mr Davies has
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. Mr Davies consents to the inclusion in this Report of the matters based on his information
in the form and context in which it appears. The Exploration Targets described in this Report are
conceptual in nature and there is insufficient information to establish whether further exploration will
result in the determination of Mineral Resources.
The information in this Report that relates to certain exploration results and the Mineral Resources and
Ore Reserves for the Millennium Project was prepared and reported in accordance with the ASX
Announcements and GEMC News Releases referenced in this Report. The information in this Report that
relates to Mineral Resources of the Millennium Project is based on information compiled by Ms Elizabeth
Haren, a Competent Person who is a Member and Chartered Professional of the Australasian Institute
of Mining and Metallurgy and a full time employee of Haren Consulting Pty Ltd. The Company confirms
that it is not aware of any new information or data that materially affects the information included in
the relevant ASX announcements and News Releases. In the case of Mineral Resource estimates and
Ore Reserve estimates, all material assumptions and technical parameters underpinning the estimates
continue to apply and have not materially changed. The Company confirms that the form and context
in which the Competent Person’s findings are presented have not been materially modified from the
original ASX announcements or News Releases.
13
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CORPORATE GOVERNANCE
Corporate Governance
Metal Bank Limited (Metal Bank), recognises the need to establish and maintain corporate governance
policies and practices that reflect the requirements of the market regulators and participants, and the
expectations of members and others who deal with Metal Bank. These policies and practices remain under
constant review as the corporate governance environment and good practices evolve.
ASX Corporate Governance Principles and Recommendations
The fourth edition of ASX Corporate Governance Council Principles and Recommendations (the Principles)
set out recommended corporate governance practices for entities listed on the ASX.
The Company has issued a Corporate Governance Statement which discloses the Company’s corporate
governance practices and the extent to which the Company has followed the recommendations set out in the
Principles. The Corporate Governance Statement was approved by the Board on 28 September 2021 and is
available on the Company’s website: http://metalbank.com.au/corporate-governance
14
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
Directors’ Report
Your directors present their report on Metal Bank Limited and its subsidiaries (Consolidated Entity or the
Group) for the year ended 30 June 2021.
DIRECTORS
The names of directors in office at any time during or since the end of the year are:
Current Directors
INĖS SCOTLAND
EXECUTIVE CHAIR
B App Sc
Ms Scotland was most recently the Managing Director and CEO of Ivanhoe
Australia, an ASX listed entity with a market capitalisation of $500m.
Prior to this Ms Scotland was the Managing Director and CEO of Citadel
Resource Group Limited. Ms Scotland was a founding shareholder of Citadel
and was its managing director through its growth, until its acquisition by
Equinox Minerals in January 2011.
At the time of acquisition by Equinox, Citadel was developing the Jabal Sayid
Copper Project in Saudi Arabia, had a market capitalisation of $1.3B and had
raised more than $380m on the equity markets.
Ms Scotland has worked in the mining industry for over 25 years for large scale
gold and copper companies in Australia, Papua New Guinea, USA and the
Middle East. This has included working for Rio Tinto companies, Comalco, Lihir
and Kennecott Utah Copper.
Appointed 13 August 2013.
SUE-ANN HIGGINS
EXECUTIVE DIRECTOR
COMPANY SECRETARY
BA LLB HONS AGIA ACG
GAICD
Ms Higgins is an experienced company executive who has worked for over
25 years in the mining industry including in senior legal and commercial roles
with ARCO Coal Australia Inc, WMC Resources Ltd, Oxiana Limited and
Citadel Resource Group Limited. Ms Higgins has extensive experience in
governance and compliance, mergers and acquisitions, equity capital
markets and mineral exploration, development and operations.
Appointed 24 February 2020.
Former directorships in the last 3 years:
Celamin Holdings Limited
GUY ROBERTSON
EXECUTIVE DIRECTOR
B Com (Hons), CA.
Mr Robertson has more than 30 years’ experience as Chief Financial Officer,
Company Secretary and Director of both public and private companies in
Australia and Hong Kong.
Previous roles included Chief Financial Officer/GM Finance of Jardine Lloyd
Thompson, Colliers International Limited and Franklins Limited.
Mr Robertson has over 15 years’ experience in ASX listed mineral exploration
companies and is currently a Director of Hastings Technology Metals Ltd.
Appointed 17 September 2012.
Other current public company directorships:
Hastings Technology Metals Ltd
15
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
Interest in the shares and options of the Company
As at the date of this report, the interests of the directors in the shares and options of Metal Bank Limited
were:
Inés Scotland
Sue-Ann Higgins
Guy Robertson
Ordinary
Shares
109,112,780
71,418,589
793,334
Options*
88,000
6,996,778
56,667
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than as outlined in the Chairman’s report, there were no significant changes in the state of affairs of
the Company during the year.
PRINCIPAL ACTIVITIES
The principal activity of the Company during the financial year was mineral exploration. There have been no
significant changes in the nature of the Company’s principal activities during the financial year.
SIGNIFICANT AFTER BALANCE SHEET DATE EVENTS
There are no matters or circumstances that have arisen since the end of the financial period that have
significantly affected or may significantly affect the operations of the consolidated entity, the results of those
operations, or the state of affairs of the consolidated entity in future financial years.
LIKELY FUTURE DEVELOPMENTS AND EXPECTED RESULTS
The primary objective of Metal Bank is to continue its exploration activities on its current exploration projects
in Australia and to continue to pursue new project opportunities as they arise.
The material business risks faced by the Company that are likely to have an effect on the financial prospects
of the Company, and how the Company manages these risks, are:
Future Capital Needs – the Company does not currently generate cash from its operations. The Company
will require further funding in order to meet its corporate expenses, continue its exploration activities and
complete studies necessary to assess the economic viability of its projects. The Company’s financial
position is monitored on a regular basis and processes put into place to ensure that fund raising activities
will be conducted in a timely manner to ensure the Company has sufficient funds to conduct its activities.
Exploration and Developments Risks – the business of exploration for gold and other minerals and their
development involves a significant degree of risk, which even a combination of experience, knowledge
and careful evaluation may not be able to overcome. To prosper, the Company depends on factors that
include successful exploration and the establishment of resources and reserves within the meaning of the
2012 JORC Code. The Company may fail to discover mineral resources on its projects and once
determined, there is a risk that the Company’s mineral deposits may not be economically viable. The
Company employs geologists and other technical specialists, and engages external consultants where
appropriate to address this risk.
Commodity Price Risk – as a Company which is focused on the exploration of gold and base and precious
metals, it is exposed to movements in the price of these commodities. The Company monitors historical
and forecast price information from a range of sources in order to inform its planning and decision making.
Title and permit risks - each permit or licence under which exploration activities can be undertaken is
issued for a specific term and carries with it work commitments and reporting obligations, as well as other
16
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
conditions requiring compliance. Consequently, the Company could lose title to, or its interests in, one
or more of its tenements if conditions are not met or if sufficient funds are not available to meet work
commitments. Any failure to comply with the work commitments or other conditions on which a permit
or tenement is held exposes the permit or tenement to forfeiture or may result in it not being renewed
as and when renewal is sought. The Company monitors compliance with its commitments and reporting
obligations using internal and external resources to mitigate this risk.
COVID-19 - The outbreak of the coronavirus disease (COVID-19) is impacting global economic markets.
The nature and extent of the effect of the outbreak on the performance of the Company remains
unknown. The Company’s Share price may be adversely affected in the short to medium term by the
economic uncertainty caused by COVID-19. Further, any governmental or industry measures taken in
response to COVID-19 may adversely impact the Company’s operations and are likely to be beyond the
control of the Company. COVID-19 safe work practices have and will continue to be adopted in relation
the Company’s operations, however, COVID-19 restrictions on movement and activities may adversely
affect the Company’s operations. The Directors are monitoring the outbreak of COVID-19 closely and
have considered the impact of COVID-19 on the Company’s business. However, the situation is continually
evolving, and the consequences are therefore inevitably uncertain.
PERFORMANCE IN RELATION TO ENVIRONMENTAL REGULATION
The consolidated entity will comply with its obligations in relation to environmental regulation on its
Queensland projects and when it undertakes exploration in the future. The Directors are not aware of any
breaches of any environmental regulations during the period covered by this report.
OPERATING RESULTS AND FINANCIAL REVIEW
The loss of the consolidated entity after providing for income tax amounted to $364,436 (2020: loss of
$452,530).
The Group’s operating income increased to $106,276 (2020: $11,069) attributable to co-funding drilling
contribution from Queensland government and government COVID-19 subsidy.
Expenses decreased to $470,712 (2020: $1,342,165) with the prior year including a write down in the carrying
value of exploration expenditure on the Triumph project in the amount of $878,566.
Capitalised exploration costs increased to $3,829,304 (2020: $2,235,455) reflecting the exploration work
principally on the 8 Mile and Eidsvold projects during the year.
Net assets increased to $10,801,996 (2020: $9,085,666) reflecting the capital raise during the year and
partially offset by the loss for the year.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by
way of a dividend to the date of this report.
REMUNERATION REPORT
Remuneration Policy
The Board determines, on a case by case basis, the terms and conditions of employment of company
executives and consultants, including remuneration.
17
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
The Board’s policy for determining the nature and amount of remuneration for Board members and
executives (Remuneration Policy) is as follows:
The terms and conditions for the executive directors and other senior staff members, are developed by
the Chair and Company Secretary and approved by the Board;
Remuneration for directors and senior executives is determined and reviewed by the Board by reference
to the Company’s performance, the individual’s performance, as well as comparable information from
listed companies in similar industries;
In determining competitive remuneration rates, the Board may seek independent advice on local and
international trends among comparative companies and industry generally. It examines terms and
conditions for employee incentive schemes, benefit plans and share plans. Independent advice may be
obtained to confirm that executive remuneration is in line with market practice and is reasonable in the
context of Australian executive reward practices;
The Company is a mineral exploration company and does not generate cash from its operations. In order
to preserve cash for exploration activities, the Board has determined, where possible, to pay a base
remuneration less than market rates to its executive directors, employees and individual contractors
with base remuneration to be supplemented by performance incentives to ensure attraction, retention
and ongoing incentives for its directors and executives;
The Board determines payments to the non-executive directors and reviews their remuneration
annually, based on market practice, duties and accountability;
All remuneration paid to directors is valued at the cost to the Company and expensed. Where
appropriate, shares given to directors and executives are valued as the difference between the market
price of those shares and the amount paid by the director or executive. Options are valued using the
Black-Scholes methodology; and
Issue of performance rights are subject to the terms of Metal Bank Performance Rights Plan and their
vesting is subject to vesting conditions and performance hurdles relating to the performance of both the
Company and the individual as determined and assessed by the Board.
The Company has not tabled figures for earnings and shareholders’ funds for the last five years as, being an
exploration company, these historical figures have no relevance in determining remuneration structure.
DIRECTORS' AND EXECUTIVE OFFICERS’ EMOLUMENTS –
(a) Details of Directors and Key Management Personnel
(i)
Current Directors
Inés Scotland – Executive Chair (appointed 13 August 2013)
Sue-Ann Higgins – Executive Director (appointed 24 February 2020)
Guy Robertson – Executive Director (appointed 17 September 2012)
((iii) Company Secretary
Sue-Ann Higgins (appointed 21 August 2013)
(iv)
Key Management Personnel
Trevor Wright – General Manager – Exploration (resigned effective 31 May 2021)
Rhys Davies - Exploration Manager (appointed 1 May 2021)
Other than the directors, the company secretary and the exploration manager, the Company had no Key
Management Personnel for the financial year ended 30 June 2021.
Directors’ remuneration and other terms of employment are reviewed annually by the Board having regard
to performance against goals set at the start of the year, relative comparative information and independent
expert advice, where appropriate.
Except as detailed in Notes (a) – (c) to the Remuneration Report, no director or officer has received or become
entitled to receive, during or since the financial year, a benefit because of a contract made by the Company
or a related body corporate with a director, a firm of which a director is a member or an entity in which a
18
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
director has a substantial financial interest. This statement excludes a benefit included in the aggregate
amount of emoluments received or due and receivable by directors and shown in Notes (a) – (c) to the
Remuneration Report, prepared in accordance with the Corporations Regulations, or the fixed salary of a full
time employee of the Company.
(b) Remuneration of Directors and Key Management Personnel
Remuneration Policy
The Company’s Remuneration Policy is outlined above. Remuneration of Directors of the Group and Key
Management Personnel is set out below.
Service Contracts
The Executive Chair, Ms I Scotland, and Executive Director, Mr G Robertson, have letters of appointment,
providing for fees of $Nil and $50,000 per annum, respectively.
The Company has a service contract with the Executive Director/Company Secretary, Ms S. Higgins, providing
an annual fee of $120,000, and cancellable by either party giving one months’ notice.
The Exploration Manager Mr R Davies has a contract allowing for fees up to $240,000 per annum, with three
months’ notice of termination by either party.
Parent & Group Key Management Personnel
2021
I. Scotland
S. Higgins
G. Robertson
T. Wright1
R. Davies2
A.Schreck3
Totals
Base
Salary
and Fees
-
125,400
50,000
191,620
58,000
-
425,020
Share Based
Payments
-
-
-
Total
-
125,400
50,000
2020
Base
Salary
and Fees
-
92,400
50,000
34,500
226,120
154,185
-
-
34,500
58,000
-
459,520
-
228,017
524,602
-
-
Superannuation
-
-
-
-
-
Total
-
92,400
50,000
154,185
-
228,017
524,602
1. Trevor Wright resigned as General Manager – Exploration, effective 31 May 2021
2. Rhys Davies was appointed as Exploration Manager on 1 May 2021
3. Anthony Schreck resigned as Managing Director during 2020
There are no other employment benefits, either short term, post-employment or long term, non-monetary
or otherwise other than those outlined above.
(c) Employee Related Share-based compensation
Options
No options were issued to employees or to directors or executives as part of their remuneration for the year
ended 30 June 2021.
19
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
Performance Rights
The Metal Bank Performance Rights Plan (the Rights Plan) and issue of securities under the Rights Plan was
first approved by shareholders at the Annual General Meeting of the Company held on 30 November 2012
and this approval was renewed by shareholders at the Annual General Meeting of the Company held on
30 November 2018.
To be eligible to participate in the Rights Plan, a person must be a full or part time employee, contractor or
consultant (approved by the Board) of the Company or any subsidiary of the Company or a director.
During the year the following performance rights were issued to Mr Trevor Wright:
-
-
4,560,000 2020 Performance Rights subject to a service vesting condition, which vested at the end
of May 2021; and
4,560,000 2121 Performance Rights subject to various performance vesting conditions, which lapsed
following the resignation of Mr Wright.
No performance rights were outstanding at the end of the year.
The Company is an exploration company and has no revenue from sales of product. Consequently,
earnings/loss and return to shareholders over the previous five years is not an appropriate benchmark for
the determination of executive remuneration, and has not been tabled.
Remuneration report – end.
MEETINGS OF DIRECTORS
The number of directors' meetings (including committees) held during the financial period, each director who
held office during the financial period and the number of meetings attended by each director are:
Director
I. Scotland
S. Higgins
G. Robertson
Directors Meetings
Meetings Attended
Number Eligible
to Attend
8
8
8
8
8
8
INDEMNIFYING OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer
or agent of the Company shall be indemnified out of the property of the Company against any liability incurred
by him or her in his or her capacity as officer or agent of the Company or any related corporation in respect
of any act or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil
or criminal.
The Company paid insurance premiums of $15,575 in August 2021 in respect of directors’ and officers’
liability. The insurance premiums relate to:
costs and expenses incurred by the relevant officers in defending legal proceedings, whether civil or
criminal and whatever their outcome;
other liabilities that may arise from their position, with the exception of conduct involving wilful breach
of duty or improper use of information to gain a personal advantage.
20
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTORS REPORT
INDEMNITY AND INSURANCE OF AUDITOR
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor
of the company or any related entity.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any
proceeding 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. The Company was not a party to any such proceedings during the
year.
AUDITORS
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration under Section 307C in relation to auditor’s independence for
the year ended 30 June 2021 has been received and can be found on the following page.
NON-AUDIT SERVICES
The Board of Directors advises that no non-audit services were provided by the Company’s auditors during
the year.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS
There are no officers of the Company who are former partners of RSM Australia Partners.
This report is made in accordance with a resolution of the directors pursuant to section 298(2)(a) of the
Corporations Act 2001.
Guy Robertson
Director
Sydney, 28 September 2021
21
RSM Australia Partners
Level 13, 60 Castlereagh Street Sydney NSW 2000
GPO Box 5138 Sydney NSW 2001
T +61 (0) 2 8226 4500
F +61 (0) 2 8226 4501
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Metal Bank Limited for the year ended 30 June 2021, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Gary N Sherwood
Partner
Sydney NSW
Dated: 28 September 2021
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
22
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Revenue and other income
Administration expenses
Employee benefits expense
Compliance and regulatory expenses
Directors fees
Management and consulting fees
Travel expenses
Exploration expenditure written off
LOSS BEFORE INCOME TAX
Income tax expense
LOSS AFTER INCOME TAX EXPENSE FOR
THE YEAR
Note
2
3
3
4
2021
$
106,276
(105,090)
(40,793)
(127,415)
(70,000)
(127,414)
-
-
2020
$
11,069
(92,216)
(3,150)
(70,773)
(50,000)
(239,673)
(1,554)
(884,799)
(364,436)
(1,331,096)
-
-
(364,436)
(1,331,096)
OTHER COMPREHENSIVE INCOME
-
-
TOTAL COMPREHENSIVE LOSS
(364,436)
(1,331,096)
Loss for the year is attributable to:
Owners of Metal Bank Limited
Total Comprehensive loss for the year is
attributable to:
Owners of Metal Bank Limited
Earnings per share from continuing
operations
Basic and diluted loss per share
(cents per share)
(364,436)
(1,331,096)
(364,436)
(1,331,096)
20
(0.03)
(0.15)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income are to be read in conjunction
with the attached notes
23
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial assets
Assets classified as held for sale
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Exploration and evaluation expenditure
Other financial assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2021
$
2020
$
5
6
7
8
9
10
11
12
13
14
1,000,615
133,738
1,250
1,135,603
-
1,135,603
3,323
3,829,304
6,000,000
9,832,627
627,052
35,619
1,250
663,921
6,400,000
7,063,921
6,593
2,235,455
-
2,242,048
10,968,230
9,305,969
166,234
166,234
166,234
220,303
220,303
220,303
10,801,996
9,085,666
22,879,168
54,180
(12,131,352)
20,852,582
-
(11,766,916)
10,801,996
9,085,666
The Consolidated Statement of Financial Position are to be read in conjunction with the attached notes.
24
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Balance as at 1 July 2020
Loss for the year
Other comprehensive income for
the year
Total comprehensive loss for the
year
Share issue
Cost of share issue
Share based payments
Balance as at 30 June 2021
Balance as at 1 July 2019
Loss for the year
Other comprehensive income for
the year
Total comprehensive loss for the
year
Balance as at 30 June 2020
Issued
Capital
$
Reserves
Accumulated
Losses
$
Total
$
20,852,582
-
-
2,146,012
(119,426)
-
22,879,168
-
-
(11,766,916)
(364,436)
9,085,666
(364,436)
-
-
-
-
-
54,180
54,180
(364,436)
-
-
-
(12,131,352)
(364,436)
2,146,012
(119,426)
54,180
10,801,996
Issued
Capital
$
Reserves
Accumulated
Losses
$
Total
$
20,852,582
-
-
-
-
20,852,582
-
-
-
-
-
-
(10,435,820)
(1,331,096)
10,416,762
(1,331,096)
-
-
-
(1,331,096)
(11,766,916)
-
(1,331,096)
9,085,666
The Consolidated Statement of Changes in Equity are to be read in conjunction with the attached notes.
25
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
OPERATING ACTIVITIES
Payments to suppliers and employees
Government subsidies
Co-operative drilling grant
Interest received
NET CASH USED IN OPERATING ACTIVITIES
22
INVESTING ACTIVITIES
Payments for plant and equipment
Proceeds on sale of project
Proceeds on sale of plant and equipment
Payment for exploration and evaluation
NET CASH USED IN INVESTING ACTIVITIES
FINANCING ACTIVITIES
Proceeds from issue of shares and options
Cost of share issue
NET CASH PROVIDED BY FINANCING
ACTIVITIES
2021
$
2020
$
(585,130)
20,000
86,000
276
(478,845)
-
400,000
-
(1,593,849)
(1,193,849)
2,111,512
(65,246)
2,046266
(436,023)
-
-
11,069
(424,954)
-
-
8,000
(709,679)
(701,679)
-
-
-
NET DECREASE IN CASH HELD
373,563
(1,126,633)
Cash at the beginning of the financial year
CASH AT THE END OF THE FINANCIAL YEAR
5
627,052
1,000,615
1,753,685
627,052
The Consolidated Statement of Cash Flows are to be read in conjunction with the attached notes.
26
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
This financial report includes the consolidated financial statements and notes of Metal Bank Limited and its
controlled entities (Consolidated Group or Group), and a separate note on the accounts of Metal Bank
Limited as the parent entity (Parent or Company).
A description of the nature of the consolidated entity's operations and its principal activities are included in
the directors' report, which is not part of the financial statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards. Material accounting policies adopted in the
preparation of this financial report are presented below and have been consistently applied unless otherwise
stated.
This financial report is presented in Australian Dollars.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
The financial report covers the Group of Metal Bank Limited and controlled entities. Metal Bank Limited is a
public listed company, incorporated and domiciled in Australia.
a.
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled
by Metal Bank Limited at the end of the reporting period. A controlled entity is any entity over which
Metal Bank Limited has the ability and right to govern the financial and operating policies so as to obtain
benefits from the entity’s activities.
Where controlled entities have entered or left the Group during the year, the financial performance of
those entities is included only for the period of the year that they were controlled. A list of controlled
entities is contained in Note 9 to the financial statements.
In preparing the consolidated financial statements, all inter-group balances and transactions between
entities in the consolidated group have been eliminated in full on consolidation.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a
parent, are reported separately within the equity section of the consolidated statement of financial
position and statement of comprehensive income. The non-controlling interests in the net assets
comprise their interests at the date of the original business combination and their share of changes in
equity since that date.
b. Going Concern
The financial statements have been prepared on the going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course
of business.
As disclosed in the financial statements, the consolidated entity incurred a loss of $364,436 and used
cash in operating activities of $478,857 for the year ended 30 June 2021.
27
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Statement of significant accounting policies (continued)
Going concern (continued)
The ability to continue as a going concern and realise it’s exploration assets is dependent on a number
of factors, the most significant of which is to source additional funding to continue its operations.
The ability to continue as a going concern and realise it’s exploration assets is dependent on a number
of factors, the most significant of which is to source additional funding to continue its operations. Should
the consolidated entity not be able to source additional funding, this will indicate significant uncertainty
as to whether the consolidated entity will continue as a going concern and therefore whether it will
realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated
in the financial report.
The Directors believe that it is reasonably foreseeable that the consolidated entity will continue as a
going concern and that it is appropriate to adopt the going concern basis in the preparation of the
financial report after consideration of the following factors:
the consolidated entity has cash and cash equivalents of $1,000,615 as at 30 June 2021;
the Directors have the ability to scale back exploration expenditure on Group’s projects
based on the availability of cash reserves;
the ability to continue to raise funds in the capital market; and
the ability to further reduce discretionary spending.
Accordingly, the Directors believe that the consolidated entity will be able to continue as a going concern
and that it is appropriate to adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classification of
recorded assets or liabilities that might be necessary if the consolidated entity does not continue as a
going concern.
c. Adoption of New and Revised Accounting Standards
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Company and effective for the current
reporting period. As a result of this review, the Directors have determined that there is no material
impact of the new and revised Standards and Interpretations on the Group and therefore, no material
change is necessary to Group accounting policies.
Any new, revised or amending Accounting Standards or Interpretations that are yet to be mandatory
have not been early adopted. The consolidated entity has not yet assessed the impact of these new or
amended Accounting Standards and Interpretations.
The Directors have also reviewed all the new and revised Standards and Interpretations in issue not yet
adopted for the year ended 30 June 2021. As a result of this review the Directors have determined that
there is no material impact of the Standards and Interpretations in issue not yet adopted by the
Company.
28
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Statement of significant accounting policies (continued)
d.
Income Taxes
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income). Current income tax expense charged to the profit or loss is the tax payable
on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at
reporting date. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid
to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well unused tax losses. Current and deferred income tax expense (income) is charged
or credited directly to equity instead of the profit or loss when the tax relates to items that are credited
or charged directly to equity. Deferred tax assets and liabilities are ascertained based on temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. Deferred tax assets also result where amounts have been fully expensed but future
tax deductions are available. No deferred income tax will be recognised from the initial recognition of an
asset or liability, excluding a business combination, where there is no effect on accounting or taxable
profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at
reporting date. Their measurement also reflects the manner in which management expects to recover or
settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary
differences and unused tax losses are recognised only to the extent that it is probable that future taxable
profit will be available against which the benefits of the deferred tax asset can be utilised. Where
temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the
temporary difference can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off
exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority
on either the same taxable entity or different taxable entities where it is intended that net settlement or
simultaneous realisation and settlement of the respective asset and liability will occur in future periods in
which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
e.
Current and Non-Current Classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or
cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12
months after the reporting period; or there is no unconditional right to defer the settlement of the liability
for at least 12 months after the reporting period. All other liabilities are classified as non-current.
29
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Statement of significant accounting policies (continued)
f.
Property, Plant and Equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment – over 5 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying
value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in
use.
An impairment exists when the carrying value of an asset exceeds its estimated recoverable amount.
The asset is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of comprehensive income.
An annual transfer from the asset revaluation reserve to retained earnings is made for the difference
between depreciation based on the re-valued carrying amounts of the assets and depreciation based on
the assets’ original costs. Additionally, any accumulated depreciation as at the revaluation date is
eliminated against the gross carrying amounts of the assets and the net amounts are restated to the re-
valued amounts of the assets.
Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to
retained earnings.
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of the
asset) is included in the statement of comprehensive income in the year the asset is derecognised.
g.
Exploration and Evaluation Costs
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that they are expected to
be recouped through the successful development of the area or where activities in the area have not yet
reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the
year in which the decision to abandon the area is made.
An area of interest refers to an individual geological area whereby the presence of a mineral deposit is
considered favourable or has been proved to exist. It is common for an area of interest to contract in size
progressively, as exploration and evaluation lead towards the identification of a mineral deposit which
30
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Statement of significant accounting policies (continued)
Exploration and Evaluation Costs (continued)
may prove to contain economically recoverable reserves. When this happens during the exploration for
and evaluation of mineral resources, exploration and evaluation expenditures are still included in the cost
of the exploration and evaluation asset notwithstanding that the size of the area of interest may contract
as the exploration and evaluation operations progress. In most cases, an area of interest will comprise a
single mine or deposit.
When production commences, the accumulated costs for the relevant area of interest are amortised over
the life of the area according to the rate of depletion of the economically recoverable reserves. A regular
review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest. Costs of site restoration are provided over the life of the
facility from when exploration commences and are included in the costs of that stage. Site restoration
costs include the dismantling and removal of mining plant, equipment and building structures, waste
removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have
been determined using estimates of future costs, current legal requirements and technology on an
undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to
community expectations and future legislation. Accordingly the costs have been determined on the basis
that the restoration will be completed within one year of abandoning the site.
h.
Financial Instruments
A financial asset shall be measured at amortised cost if it is held within a business model whose objective
is to hold assets in order to collect contractual cash flows which arise on specified dates and that are solely
principal and interest. A debt investment shall be measured at fair value through other comprehensive
income if it is held within a business model whose objective is to both hold assets in order to collect
contractual cash flows which arise on specified dates that are solely principal and interest as well as selling
the asset on the basis of its fair value. All other financial assets are classified and measured at fair value
through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains
and losses on equity instruments (that are not held-for-trading or contingent consideration recognised in
a business combination) in other comprehensive income ('OCI'). Despite these requirements, a financial
asset may be irrevocably designated as measured at fair value through profit or loss to reduce the effect
of, or eliminate, an accounting mismatch. For financial liabilities designated at fair value through profit or
loss, the standard requires the portion of the change in fair value that relates to the entity's own credit
risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge
accounting requirements are intended to more closely align the accounting treatment with the risk
management activities of the entity. New impairment requirements use an 'expected credit loss' ('ECL')
model to recognise an allowance. Impairment is measured using a 12-month ECL method unless the credit
risk on a financial instrument has increased significantly since initial recognition in which case the lifetime
ECL method is adopted. For receivables, a simplified approach to measuring expected credit losses using
a lifetime expected loss allowance is available.
(i) Classification
The Company classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value (either through OCI or through profit or loss), and
those to be measured at amortised cost.
The classification depends on the Company’s business model for managing the financial assets and the
contractual terms of the cash flows.
31
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Statement of significant accounting policies (continued)
Financial Instruments (continued)
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For
investments in equity instruments that are not held for trading, this will depend on whether the Company
has made an irrevocable election at the time of initial recognition to account for the equity investment at
fair value through other comprehensive income (FVOCI).
The Company reclassifies debt investments when and only when its business model for managing those
assets changes.
(ii) Recognition and derecognition
Regular way 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.
(iii) 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 (FVPL), transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in
profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether
their cash flows are solely payment of principal and interest.
iv) Impairment
The Company assesses on a forward looking basis the expected credit losses associated with its debt
instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
For trade receivables, the Company applies the simplified approach permitted by AASB 9, which requires
expected lifetime losses to be recognised from initial recognition of the receivables.
i.
Impairment of Assets
At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication
exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and
value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its
recoverable amount is expensed to the consolidated statement of comprehensive income. Impairment
testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates
the recoverable amount of the cash-generating unit to which the asset belongs. In the case of available-
for-sale financial instruments, a prolonged decline in the value of the instrument is considered to
determine whether impairment has arisen.
j.
Trade and Other Receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any provision for impairment. Trade receivables are generally due for
settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which
uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have
been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for credit losses.
32
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Statement of significant accounting policies (continued)
k.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are
shown within short-term borrowings in current liabilities on the statement of financial performance.
l.
Trade and Other Payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the
end of the financial year and which are unpaid. Due to their short-term nature they are measured at
amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days
of recognition.
m.
Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
n.
Share-Based Payment Transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the
services provided. Where the services provided cannot be reliably estimated fair value is measure
by reference to the fair value of the equity instruments at the date at which they are granted. The
fair value of share-based payments is determined using either a Black-Scholes model or external
valuations, refer to Note 18.
o.
Employee Benefits
(i)
Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled
within 12 months of the end of the reporting period are recognised in other payables in respect of
employees' services rendered up to the end of the reporting period and are measured at amounts
expected to be paid when the liabilities are settled.
(ii)
Retirement benefit obligations
The Group does not maintain a company superannuation plan. The Group makes fixed percentage
contributions for all Australian resident employees to complying third party superannuation funds. The
Group's legal or constructive obligation is limited to these contributions.
Contributions to complying third party superannuation funds are recognised as an expense as they
become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in the future payments is available.
p. Revenue Recognition
Interest revenue is recognised using the effective interest method. It includes the amortisation of any
discount or premium.
q. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented
in the statement of cash flows on a gross basis, except for the GST component of investing and financing
activities, which are disclosed as operating cash flows.
33
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Statement of significant accounting policies (continued)
r.
Earnings Per Share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Metal Bank
Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares
issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of ordinary shares assumed to have been
issued for no consideration in relation to dilutive potential ordinary shares.
s.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes
in presentation for the current financial year.
t.
Significant Judgements and Key Assumptions
The directors evaluate estimates and judgements 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.
u. Key Judgements and Estimates
Key Judgement Exploration Expenditure
The Company capitalises expenditure relating to exploration and evaluation where it is considered likely
to be recoverable or where the activities have not reached a stage which permits a reasonable assessment
of the existence of reserves. While there are certain areas of interest from which no reserves have been
extracted, the directors are of the continued belief that such expenditure should not be impaired since
feasibility studies in such areas have not yet concluded. Such capitalised expenditure is carried at
reporting date at $9,488,521.
Key Judgement Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation, and the directors understanding thereof. At the current stage of the
company’s development and its current environmental impact the directors believe such treatment is
reasonable and appropriate.
2. REVENUE AND OTHER INCOME
Other income
Interest received
Government subsidies
Co-operative drilling grant
2021
$
276
20,000
86,000
106,276
2020
$
11,069
-
-
11,069
34
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
3. EXPENSES
Employee benefits expense
Wages and salaries
Superannuation
Other employment related costs
Share-based payment expense
Less capitalised exploration costs
Personnel costs
4. INCOME TAX EXPENSE
2021
$
216,570
20,574
-
35,000
272,144
(230,851)
41,293
2020
$
27,300
2,594
3,150
-
33,044
(29,894)
3,150
(a) No income tax is payable by the parent or consolidated entity as they recorded losses for income tax
purposes for the period.
(b) Reconciliation between income tax expense and prima facie tax on accounting profit (loss)
Loss before income tax
Tax at 26% (2020:27.5%)
Tax effect of other (deductible)/non-deductible
items
Deferred tax asset not recognised
Income tax expense
(c) Deferred tax assets
Revenue tax losses
Deferred tax assets not recognised
Set off deferred tax liabilities
Income tax expense
(d) Deferred tax liabilities
Exploration expenditure
Set off deferred tax assets
2021
$
(364,436)
(94,753)
2020
$
(1,331,096)
(366,051)
(11,839)
106,592
-
232,128
133,923
-
520,992
(106,592)
(414,400)
-
329,086
(133,923)
(195,163)
-
414,400
(414,400)
-
195,163
(195,163)
-
(e) Tax losses
Unused tax losses for which no deferred tax asset
has been recognised
18,725,581
16,730,771
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not
been brought to account at 30 June 2020 because the directors do not believe it is appropriate to regard
realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if:
the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the loss and exploration expenditure to be realised;
the Company continues to comply with conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the company in realising the benefit from the deductions for
the loss and exploration expenditure.
The applicable tax rate is the national tax rate in Australia for companies, which is 26% at the reporting date.
35
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents
1,000,615
627,052
2021
$
2020
$
6. TRADE AND OTHER RECEIVABLES
CURRENT
Other receivables
GST receivable
7. FINANCIAL ASSETS
CURRENT
ASX Listed Shares
Financial assets at amortised cost¹
¹ Shares in Locality Planning Energy Holdings Limited.
8. ASSETS CLASSIFIED AS AVAILABLE FOR SALE
Non-current assets held for sale
Exploration expenditure
2021
$
2020
$
111,189
22,549
133,738
17,308
18,311
35,619
2021
$
2020
$
1,250
1,250
1,250
1,250
2021
$
2020
$
-
6,400,000
During the year the Company sold its interest in the Triumph project for the following consideration:
$400,000 in cash
$1.5 million on the purchaser achieving a Mineral Resource of 500,000 oz au or more;
$2 million on the purchaser achieving a Mineral Resource of 1,000,000 oz au or more;
$2.5 million on the purchaser achieving a Mineral Resource of 2,000,000 oz au or more; and a 1%
gross royalty.
See note 11 for contingent consideration.
36
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
9. PLANT AND EQUIPMENT
Cost
Opening balance, 1 July 2019
Disposals
Closing balance, 30 June 2020
Closing balance 30 June 2021
Depreciation
Opening balance, 1 July 2019
Disposals
Depreciation
Closing balance, 30 June 2020
Opening balance 1 July 2020
Depreciation
Closing balance 30 June 2021
Written down value 30 June 2020
Written down value 30 June 2021
Motor Vehicle
Office Equipment
Total
23,955
(23,955)
-
-
(4,340)
6,423
(2,083)
-
-
-
-
-
-
19,983
-
19,983
19,983
(9,931)
-
(3,459)
(13,390)
(13,390)
(3,270)
(16,660)
6,593
3,323
43,938
(23,955)
19,983
19,983
(14,271)
6,423
(5,542)
(13,390)
(13,390)
(3,270)
(16,660)
6,593
3,323
10. EXPLORATION AND EVALUATION EXPENDITURE
2021
$
2020
$
Exploration and evaluation expenditure
3,829,304
2,235,455
Reconciliation of carrying amount
Balance at beginning of financial year
Expenditure in current year
Expenditure reclassified to assets available for sale
Exploration expenditure written off1
Balance at end of financial period
2,235,455
1,593,849
-
-
3,829,304
8,804,339
717,160
(6,400,000)
(886,044)
2,235,455
1The Directors have determined to write down the carrying value of the Triumph project to the potential
consideration, excluding the royalty, see note 8.
37
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
11. OTHER FINANCIAL ASSET
Non-current assets
Contingent consideration
2021
$
2020
$
6,000,000
-
In July 2020 the Company sold its interest in the Triumph project for the following consideration:
$400,000 in cash
$1.5 million on the purchaser achieving a Mineral Resource of 500,000 oz au or more;
$2 million on the purchaser achieving a Mineral Resource of 1,000,000 oz au or more;
$2.5 million on the purchaser achieving a Mineral Resource of 2,000,000 oz au or more; and a 1%
gross royalty.
$400,000 in cash was received during the year and the balance remains receivable on the project achieving
the milestones as outlined above.
12. TRADE AND OTHER PAYABLES
CURRENT
Unsecured liabilities:
Trade payables
Sundry payables and accrued expenses
13. SHARE CAPITAL
2021
$
2020
$
96,236
69,998
166,234
130,647
89,656
220,303
1,189,068,304 (2020 – 882,864,297) fully paid
ordinary shares
2021
$
2020
$
22,879,168
20,852,582
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to
the number of shares held. At shareholders’ meetings each ordinary share is entitled to one vote when a poll
is called, otherwise each shareholder has one vote on a show of hands.
Reconciliation of movements in share capital during the year:
Opening balance
Share issue placement
Share issue on vesting of
performance rights
Costs of share issue
2021
2020
No. Shares
882,864,297
301,644,007
No. Shares
882,864,297
-
2021
$
20,852,582
2,111,512
4,560,000
-
-
-
34,500
(119,426)
2020
$
20,852,582
-
-
-
Closing balance
1,189,068,304
882,864,297
22,879,168
20,852,582
38
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Share Capital (continued)
Share option
2021
No. Options
2020
No. Options
2021
$
2020
$
Opening balance
Share options issued
Closing balance
-
165,822,090
165,822,090
-
-
-
-
71,180
71,180
-
-
-
The Company issued 150,822,090 free attaching share options as part of the September 2020 capital raise on
the basis of one option for every two new shares issued. In addition, the Company issued 15,000,000 options
to an advisor for assisting in the capital raise. All options have an exercise price of $0.015 and an expiry date of
31 March 2022.
The options issue to the advisor have been valued using Black & Scholes using a risk rate of .21%, volatility of
100%, share price on date of issue $0.01, exercise price $0.015 and expiry date 31 March 2022.
Capital Management
The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, so
that it may continue to provide returns for shareholders and benefits for other stakeholders.
The Company’s capital includes ordinary share capital and financial liabilities, supported by financial assets.
Due to the nature of the Company’s activities, being mineral exploration, it does not have ready access to credit
facilities, with the primary source of funding being equity raisings. Accordingly, the objective of the Company’s
capital risk management is to balance the current working capital position against the requirements of the
Company to meet exploration programmes and corporate overheads. This is achieved by maintaining
appropriate liquidity to meet anticipated operating requirements, with a view to initiating appropriate capital
raisings as required.
Cash and cash equivalents
Trade and other receivables
Financial assets
Trade and other payables
Working capital position
Performance rights
Movements in performance rights
At 1 July
Performance rights awarded
Performance rights vested
Performance rights lapsed
At 30 June
2021
2020
$
$
1,000,615
133,738
1,250
(166,234)
969,369
2021
No.
-
9,120,000
(4,560,000)
(4,560,000)
-
627,052
35,619
1,250
(220,303)
443,618
2020
No.
-
-
-
-
-
39
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
14. RESERVES
Share based payment reserve
Movements in options issue reserve
Opening balance
Share based payment
Issue of shares on vesting of performance rights
Closing balance
2021
$
54,180
-
88,680
(34,500)
54,180
2020
$
-
-
-
-
-
The reserves relate to share options on issue and will be transferred to share capital in the event the options
are exercised, or accumulated losses in the event the options lapse.
15. FINANCIAL RISK MANAGEMENT
The group’s principal financial instruments comprise mainly of borrowings and deposits with banks and shares
in listed companies shown as financial assets at fair value through profit and loss. The main purpose of the
financial instruments is to achieve optimal funding for the group with limited risk and earn the maximum
amount of interest at a low risk to the group. The group also has other financial instruments such as trade
debtors and creditors which arise directly from its operations.
The consolidated entity holds the following financial instruments at the end of the reporting period:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit
and loss
Financial liabilities
Trade and other payables
2021
$
1,000,615
133,738
1,250
1,135,603
166,234
2020
$
627,052
35,619
1,250
663,921
220,303
The main risks arising from the Company’s financial instruments are market risk, credit risk and liquidity risk.
The Board reviews and agrees policies for managing each of these risks and they are summarised below:
a. Market risk
Cash flow and fair value interest rate risk
The group’s main interest rate risk arises from borrowings and cash deposits to be applied to
exploration and development areas of interest. Borrowings are primarily to bridge the gap between
funding requirements and obtaining shareholder approval for equity issues. It is the group’s policy to
invest cash in short term deposits to minimise the group’s exposure to interest rate fluctuations. The
group’s deposits were denominated in Australian dollars throughout the year. The group did not enter
into any interest rate swap contracts.
b. Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the group. The group has adopted the policy of only dealing with credit worthy
counterparties and obtaining sufficient collateral or other security where appropriate, as a means of
mitigating the risk of financial loss from defaults. The cash transactions of the group are limited to high
credit quality financial institutions.
40
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Financial risk management (continued)
The group does not have any significant credit risk exposure to any single counterparty or any group
of counterparties having similar characteristics. The carrying amount of financial assets recorded in
the financial statements, net of any provisions for losses, represents the group’s maximum exposure
to credit risk.
All cash holdings within the Group are currently held with AA rated financial institutions.
c. Liquidity Risk
The group manages liquidity risk by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities. Surplus funds when available are
generally only invested in high credit quality financial institutions in highly liquid markets.
Financial Instrument composition and maturity analysis
The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed
period of maturity, as well as management’s expectations of the settlement period for all other financial
instruments. As such, the amounts may not reconcile to the statement of financial position.
Consolidated
Group
Financial liabilities
- due for payment:
Trade and other
payables
Total contractual
outflows
Financial assets –
cash flows
realisable
Cash and cash
equivalents
Trade and other
receivables
Financial assets
Total anticipated
inflows
Net
inflow/(outflow)
on financial
instruments
Within 1 year
1 to 5 years
Over 5 years
Total
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
166,234
220,303
166,234
220,303
1,000,615
627,052
133,738
1,250
35,619
1,250
1,135,603
663,921
969,369
443,618
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
166,234
220,303
166,234
220,303
1,000,615
627,052
133,738
1,250
35,619
1,250
1,135,603
663,921
-
969,369
443,618
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity
and profit or loss by the amounts shown below.
30 June 2021
Cash and cash equivalents
30 June 2020
Cash and cash equivalents
Change in profit
Change in equity
Carrying
Value
$
1,000,615
1,000,615
$
627,052
627,052
100bp
Increase
$
10,006
10,006
$
6,270
6,270
41
100bp
decrease
$
(10,006)
(10,006)
$
(6,270)
(6,270)
100bp
increase
$
10,006
10,006
$
6,270
6,270
100bp
decrease
$
(10,006)
(10,006)
$
(6,270)
(6,270)
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Financial risk management (continued)
Maturity of financial assets and liabilities
The note below summarises the maturity of the group’s financial assets and liabilities as per the director’s
expectations. The amounts disclosed are the contractual undiscounted cash flows. There are no derivatives.
30 June 2021
Trade and other receivables
Trade and other payables
30 June 2020
Trade and other receivables
Trade and other payables
< 6 months
$
133,738
166,234
$
35,619
220,303
6 – 12
months
$
-
-
$
-
-
1- 5 years
>5 years
Total
$
$
-
-
$
-
-
$
133,738
166,234
35,619
220,303
-
-
$
-
-
Fair value of financial assets and financial liabilities
There is no difference between the fair values and the carrying amounts of the group’s financial instruments.
The Group has no unrecognised financial instruments at balance date.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed and
classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements.
The fair value hierarchy consists of the following levels:
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(Level 3).
Sensitivity analysis on changes in market rates
A change of 20% in equity prices at the reporting date would increase/(decrease) equity and profit or loss as
shown below:
30 June 2021
Financial assets available for sale
ASX listed investments
30 June 2020
Financial assets available for sale
ASX listed investments
Carrying
Value
$
Change in profit
20%
increase
$
20%
decrease
$
Change in equity
20%
20%
decrease
increase
$
$
1,250
250
(250)
250
(250)
1,250
250
(250)
250
(250)
42
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
16. COMMITMENTS
The consolidated group currently has commitments for expenditure at 30 June 2021 on its
Australian exploration tenements, up to the date of expiry, as follows:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
2021
$
120,458
185,292
-
305,750
2020
$
316,973
603,781
-
920,753
17. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There are no contingent liabilities or assets in existence at balance sheet date.
18. RELATED PARTY DISCLOSURES
Refer to the Remuneration Report contained in the Directors Report for details of the remuneration paid or
payable to each member of the Group’s key management personnel for the year ended 30 June 2021.
There were no other transactions with related parties during the year, or the prior year.
Other than the Directors, secretary and exploration manager, the Company had no key management personnel
for the financial period ended 30 June 2021.
The total remuneration paid to key management personnel of the company and the group during the year are
as follows:
Short term employee benefits
Share based payments
2021
$
425,020
34,500
459,520
2020
$
524,602
-
524,602
Directors' and executive officers’ emoluments
(a) Details of Directors and Key Management Personnel
(i) Directors
Inés Scotland (Executive Chair) (Appointed 13 August 2013)
Sue-Ann Higgins (Executive Director) (Appointed 24 February 2020)
Guy Robertson (Executive Director) (Appointed 17 September 2012)
(ii) Company secretary
Sue-Ann Higgins (Company Secretary) (Appointed 21 August 2013)
Rhys Davies (Exploration Manager) (Appointed 1 May 2021)
(iii) Directors’ remuneration
Directors’ remuneration and other terms of employment are reviewed annually by the Board having regard to
performance against goals set at the start of the year, relative comparative information and, where applicable,
independent expert advice.
Except as detailed in Notes (a) – (c) to the Remuneration Report in the Director’s Report, no director has
received or become entitled to receive, during or since the financial period, a benefit because of a contract
made by the Company or a related body corporate with a director, a firm of which a director is a member or
an entity in which a director has a substantial financial interest. This statement excludes a benefit included in
the aggregate amount of emoluments received or due and receivable by directors and shown in Notes (a) - (c)
to the Remuneration Report, prepared in accordance with the Corporations regulations, or the fixed salary of
a full time employee of the Company.
43
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Related Party Disclosures (continued)
(b) Key Management Personnel
Other than the Directors, Company Secretary and Exploration Manager, the Company had no key management
personnel for the financial period ended 30 June 2021.
(c) Remuneration Options: Granted and vested during the financial year ended 30 June 2021
There were no remuneration options granted during the financial year ended 30 June 2021.
(d) Share and Option holdings
All equity dealings with directors have been entered into with terms and conditions no more favourable than
those that the entity would have adopted if dealing at arm’s length.
Shares held by Directors and Officers
Period from 1 July 2020 to 30 June 2021
I. Scotland
G. Robertson
T. Wright¹
S. Higgins
Balance at
beginning
of period
108,936,780
680,000
14,332,615
57,025,036
180,974,431
Received as
Remuneration
Purchased
Balance at
end of year
-
-
4,560,000
-
4,560,000
176,000
109,112,780
113,334
793,334
-
-
14,393,553
14,682,887
71,418,589
181,324,703
¹Resigned 31 May 2021
Period from 1 July 2019 to 30 June 2020
I. Scotland
A. Schreck¹
G. Robertson
T. Wright
S. Higgins
Balance at
beginning
of period
108,936,780
17,501,330
680,000
14,332,615
57,025,036
198,475,761
Received as
Remuneration
Purchased
-
-
-
-
-
-
Balance at
end of year
108,936,780
-
680,000
14,332,615
57,025,036
180,974,431
-
-
-
-
-
-
¹Resigned 24 February 2020
Options held by Officers and Directors
Period from 1 July 2020 to 30 June 2021
Balance at
beginning
of period
Received as
Remuneration
Purchased¹
Balance at
end of year
I. Scotland
G. Robertson
-
-
-
-
88,000
56,667
88,000
56,667
S. Higgins
-
-
¹Options were acquired as free attaching options to share purchase on the basis of one option for every two
new shares. The options have an exercise price of $0.015 and an expiry date of 31 March 2022.
6,996,778
7,141,445
6,996,778
7,141,445
-
-
44
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
Related party disclosures (continued)
Performance Rights
Performance rights
Movements in performance rights
At 1 July
Performance rights awarded
Performance rights vested
Performance rights lapsed
At 30 June
2021
No.
2020
No.
-
9,120,000
(4,560,000)
(4,560,000)
-
-
-
-
-
-
9,120,000 were issued to the exploration manager during the year, of which 4,560,000 vested and 4,560,000
were cancelled on his resignation, during the year. The Company expensed $35,000 in relation to these
performance rights during the year.
19. SEGMENT INFORMATION
The group’s operations are in one business segment being the resources sector. The group operates in
Australia. All subsidiaries in the group operate within the same segment.
The group has no operating results or assets/liabilities in the United States of America and therefore no detail
segment information is disclosed.
20. EARNINGS PER SHARE
Reconciliation of earnings per share
Basic and diluted earnings per share
Loss used in the calculation of the basic earnings
per share
Weighted average number of ordinary shares:
Used in calculating basic earnings per ordinary
share
Dilutive potential ordinary shares
Used in calculating diluted earnings per share
21. AUDITORS REMUNERATION
Auditor of parent entity
Audit of financial reports
Non-audit services
45
2021
Cents
2020
Cents
(0.03)
(0.15)
(364,436)
(1,331,096)
1,138,479,251
882,582,445
-
1,138,479,251
-
882,582,445
2021
$
38,000
-
38,000
2020
$
34,500
-
34,500
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
22. CASH FLOW INFORMATION
Reconciliation of net cash used in operating activities with profit after income tax
2021
$
(364,436)
Loss after income tax
2020
$
(1,331,096)
Non-cash flows in loss:
Depreciation
Other non-cash items
Share based payments
Exploration expenditure written off
Changes in assets and liabilities:
Increase/(decrease) in trade and other receivables
Decrease in trade and other payables
Net cash outflow from operating activities
Non-cash Financing and Investing Activities
There were no non cash financing and investing activities.
23. PARENT ENTITY DISCLOSURES
Financial Position
Assets
Current Assets
Non-current assets
Total Assets
Total Current Liabilities
Total liabilities
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Loss after income tax
Total comprehensive loss
3,270
-
34,500
-
5,542
3,296
-
884,799
(98,119)
(54,069)
(478,854)
25,545
(13,040)
(424,954)
2021
$
2020
$
1,099,332
9,793,337
627,052
8,548,464
10,892,669
9,175,516
90,673
90,673
89,850
89,850
10,801,996
9,085,666
22,879,168
54,180
(12,131,352)
20,852,582
-
(11,766,916)
10,801,996
9,085,666
(364,436)
(1,331,096)
(364,436)
(1,331,096)
i. Contingent liabilities and contingent assets
The parent entity is responsible for the contingent liabilities and contingent assets outlined in note 17.
ii. Commitments
The parent entity is responsible for the commitments outlined in note 16.
iii. Related parties
Interest in subsidiaries is set out in note 24.
Disclosures relating to key management personnel are set out in note 18.
46
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
NOTES TO THE FINANCIAL STATEMENTS
24. CONTROLLED ENTITY
Parent Entity:
Metal Bank Limited
Subsidiary:
Roar Resources Pty Ltd
25. SHARE BASED PAYMENTS
Performance rights
Country of
Incorporation
Ownership %
2021
Ownership %
2020
Australia
Australia
-
100
-
100
On 30 September 2020 the Company issued 9,120,000 performance rights to the previous exploration
manager.
Non market based conditions include a service period to 31 August 2021, achieving the exploration strategy on
the 8 Mile and Eidsvold projects and regulatory compliance. Market based conditions include an allocation
subject to the Company’s share price being a 100% increase on the 30 day VWAP of $0.0105 as at 23 September
2020 and an allocation based on the Company’s share price being a 50% increase on the 30 day VWAP of
$0.0105 as at 23 September 2020
The performance period ends on 30 September 2021.
The performance rights were valued at $70,000 of which an expense of $34,500 was recognised during the
period ended 30 June 2021. The Company vested 4,560,000 of the rights during the year with the balance
lapsing on resignation of the exploration manager in May 2021.
Share options
On 15 September 2020 the Company issued 15,000,000 share options with exercise price $0.015 and expiry
date 31 March 2022 to an advisor for assisting with a capital raise. The options were valued at $54,180 using
the Black and Scholes valuation method with the charge going against cost of raising capital.
The options issue to the advisor have been valued using a risk rate of .21%, volatility of 100%, share price on
date of issue $0.01, exercise price $0.015 and expiry date 31 March 2022.
26. SIGNIFICANT AFTER BALANCE DATE EVENTS
There are currently no matters or circumstances that have arisen since the end of the financial period that have
significantly affected or may significantly affect the operations of the consolidated entity, the results of those
operations, or the state of affairs of the consolidated entity in future financial years.
47
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
DIRECTOR’S DECLARATION
In accordance with a resolution of the directors of Metal Bank Limited, the directors of the company declare
that:
1.
the financial statements and notes, as set out on pages 23 to 47, are in accordance with the Corporations
Act 2001 and:
a. comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to the
financial statements, the Corporations Regulations 2001, other mandatory professional reporting
requirements and International Financial Reporting Standards (IFRS); and
b. give a true and fair view of the financial position as at 30 June 2021 and of the performance for the
year ended on that date of the consolidated group;
2.
3.
in the directors’ opinion 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 directors have been given the declarations required by s295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
Guy Robertson
Director
Sydney, 28 September 2021
48
INDEPENDENT AUDITOR’S REPORT
To the Members of Metal Bank Limited
Qualified Opinion
RSM Australia Partners
Level 13, 60 Castlereagh Street Sydney NSW 2000
GPO Box 5138 Sydney NSW 2001
T +61 (0) 2 8226 4500
F +61 (0) 2 8226 4501
www.rsm.com.au
We have audited the financial report of Metal Bank Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors' declaration.
In our opinion, except for the matter described in the Basis for Qualified Opinion section of our report, the
accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Qualified Opinion
Included in Note 11 of the financial report is a financial asset with a carrying value of $6,000,000 as at 30 June
2021. The sale transaction was concluded in September 2020 for a variable consideration based on staged
payments upon the identification of future JORC Mineral Resource milestones as well as a potential royalty. There
is significant judgement required with regards to the estimation of the likelihood and timing of the future JORC
milestones and royalties, and therefore the value of the consideration that will ultimately be received. We were
unable to obtain sufficient appropriate audit evidence about the assumptions used to determine the fair value of
the asset. Consequently, we were unable to determine whether any adjustments to these amounts were
necessary.
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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
qualified opinion.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
49
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the consolidated entity incurred a loss of
$364,436 and used cash in operating activities of $478,857 for the year ended 30 June 2021. The ability to
continue as a going concern and realise its exploration assets is dependent on a number of factors, the most
significant of which is to source additional funding to continue its operations. As stated in Note 1, these events or
conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast
significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect
of this matter.
Key Audit Matter
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 Basis for Qualified Opinion section as well as the matter described in the
Material Uncertainty Related to Going Concern section, we have determined the matter described below to be the
key audit matter to be communicated in our report.
Key Audit Matter
How our audit addressed this matter
Carrying value of capitalised exploration and evaluation
Refer to Note 10 in the financial statements
As disclosed in Notes 10, the Group has capitalised
of
evaluation
and
exploration
$3,829,304 as at 30 June 2021.
expenditure
The carrying value of exploration and evaluation
assets is subjective based on the Group’s ability and
intention, to continue to explore and develop the
asset. The carrying value may also be impacted if
the mineral reserves and resources are not
commercially viable for extraction, or where the
carrying value of the asset is not likely to be
recouped through sale or successful development.
This creates a risk that the amounts stated in the
financial statements may not be recoverable.
Our audit procedures included the following:
Ensuring that the Group had the right to explore in
the relevant exploration area, which included
obtaining and assessing independent searches of
the company’s tenement holdings.
Assessing the Group’s intention to carry out
significant exploration and evaluation activity in the
relevant exploration area, which included an
assessment of the Group's future cash flow
forecasts, and enquiry of management and the
Board of Directors as to the intentions and strategy
of the Group.
Assessing the results of recent exploration activity
in the Group’s areas of interest, to determine if
there are any negative indicators that would
suggest a potential impairment of the capitalised
exploration and evaluation expenditure.
Assessing the Group’s ability to finance any
planned future exploration and evaluation activity.
Reviewing a sample of costs that were capitalised
to determine whether the costs were appropriate to
accordance with Australian
capitalise
Accounting Standards and
the consolidated
entity’s accounting policy.
in
50
Recoverability of other financial asset
Refer to Note 11 in the financial statements
Included in Note 11 of the financial report is a
financial asset with a carrying value of $6,000,000
as at 30 June 2021.
The sale transaction was concluded in September
2020 for a variable consideration based on staged
payments upon the identification of future JORC
Mineral Resource milestones as well as a potential
royalty. There is significant judgement required with
regards to the estimation of the likelihood and timing
of the future JORC milestones and royalties, and
therefore the value of the consideration that will
ultimately be received.
Other Information
Our audit procedures included the following:
Reviewing
the available documentation with
regards to the sale transaction that concluded in
this financial year.
Critically evaluating the assumptions and other
available evidence in relation to managements
estimate with regards to the recoverable amount.
Reviewing the disclosures in the annual report with
related
financial asset and
regards
the
subsequent events disclosures.
to
Qualifying the audit report accordingly.
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report, or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial
report, the directors are responsible for assessing the ability of the Group to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the directors either intend to liquidate the Group or to cease operations, or 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.
51
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/ar2.pdf.
This description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 – 21 of the directors' report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Metal Bank Limited for the year ended 30 June 2021, complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM Australia Partners
Gary N Sherwood
Partner
Sydney NSW, dated 28 September 2021
52
METAL BANK LIMITED AND ITS CONTROLLED ENTITY
ADDITIONAL INFORMATION FOR LISTED COMPANIES
AS AT 24 SEPTEMBER 2021
The following additional information is required by the Australian Securities Exchange pursuant to Listing Rule
4.10. The information provided is current as at 24 September 2021 unless otherwise stated.
a. Distribution of Shareholders
Number held
1 – 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001+
Total
Number of
share holders
Number of
shares
% of number of
shares
47
12
46
594
876
3,310
32,087
438,158
36,322,822
1,147,711,927
1,575
1,184,508,304
0.00%
0.00%
0.04%
3.07%
96.89%
100.00%
b. The number of shareholders who hold less than a marketable parcel is 401.
c. Substantial shareholders
The names of the substantial shareholders in the Company, the number of equity securities to which
each substantial shareholder and substantial holder’s associates have a relevant interest, as disclosed
in substantial holding notices given to the Company are:
Indigo Pearl Capital Ltd
No of shares
107,880,780
Stella Adriatica (CI) Ltd
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