Metalicity Limited
ABN: 92 086 839 992
2021 Annual report
For the year ended 30 June 2021
Corporate Directory
Directors
Andrew Daley – Non-Executive Chairman
Justin Barton – CEO and Finance Director
Jason Livingstone – Technical Director
Company Secretary
Nick Day
Auditors
Pitcher Partners BA&A Pty Ltd
Level 11
12-14 The Esplanade
Perth WA 6000
Solicitors
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
PERTH WA 6000
Bankers
ANZ
Cnr Hay and Outram Street
WEST PERTH WA 6005
Registered Office
Unit B2, 20 Tarlton Cresent,
PERTH AIRPORT WA 6105
Telephone:
+61 8 6500 0202
Share Registry
Link Market Services
QV1 Building
Level 12, 250 St Georges Terrace
PERTH WA 6000
Investor Enquiries:
Facsimile:
1300 554 474
(02) 9287 0303
Securities Exchange Listing
Securities of Metalicity Limited are listed on the Australian Securities Exchange (ASX).
ASX Code: MCT
Web Site: www.metalicity.com.au
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Contents
Directors’ report
Corporate Governance Statement
Auditor’s independence declaration
Independent auditor’s report
Directors’ declaration
Annual financial statements
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 financial statements
Australian Securities Exchange (ASX) Additional Information
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The Directors of Metalicity Limited (the “Company” or “Metalicity”)submit herewith the annual financial
report of the Company and its subsidiaries (the “Group”) for the financial year ended 30 June 20 21.
Directors
The names and particulars of the Directors of the Company during or since the end of the financial year
are:
Name
Particulars
Andrew Daley
Non-Executive Chairman (appointed as Chairman on 18 May 2021)
Justin Barton
Chief Executive Officer and Finance Director (appointed CEO on 1 June 2021)
Jason Livingstone
Technical Director (resigned as Managing Director on 1 June 2021)
Mathew Longworth Non-Executive Chairman (resigned on 18 May 2021)
The above-named Directors held office during and since the financial year, except as otherwise indicated.
Principal Activities
The Group’s principal activity as at the date of this report is mineral exploration and development of the Kookynie
and Yundamindra Gold Projects that the Company has a 51% interest in a Joint Venture with Nex Metals
Explorations Ltd.
Review of Operations and Results
Throughout the year the Company continued to earn into the Kookynie and Yundamindra gold projects, meeting
the total farm-in expenditure commitment necessary to acquire a 51% interest in May 2021.
Kookynie & Yundamindra Gold Projects
On the 6th May 2019 the Company announced it had entered into a farm-in agreement with Nex Metals (ASX:
NEX) for the Kookynie and Yundamindra Gold Projects in the Eastern Goldfields. Under the terms of the
agreement with Nex Metals the Company had the right to farm-in to the projects to earn a 51% interest in the
projects by spending a total of $5 million within five years.
On 20 May 2021, the Company announced that the earn-in component of the Farm-in Agreement with Nex
Metals had been met. The Company spent over $5 million within 2 years, and now has a 51% interest in both
the Kookynie and Yundamindra Gold Projects, hosting several high priority prospects.
The Kookynie and Yundamindra Projects are located approximately 180km north of the town of Kalgoorlie and
present an opportunity to develop a high-grade gold resource based off historic exploration within the area.
The Kookynie Project hosts the historical mining centres of Diamantina-Cosmopolitan-Cumberland, known as
the DCC trend, as well as McTavish, Leipold, Champion and Altona (Figure 1).
Each of the historic mining operations were highly successful, with the Cosmopolitan gold mine producing
360,000 ounces of gold from discovery from 1895 to 1922. During the early part of last century, the
Cosmopolitan mine ranked as one of the largest and most profitable gold mines in Western Australia.
Cautionary Statement Relating to Cosmopolitan Historical Production Data
The Production details for the Cosmopolitan Mine are referenced from publicly available data sources. The
source and date of the production data reported has been referenced in the body of this announcement where
production data has been reported. The historical production data have not been reported in accordance with
the JORC Code 2012. A Competent Person has not done sufficient work to disclose the historical production
data in accordance with the JORC Code 2012. It is possible that following further evaluation and/or exploration
work that the confidence in the prior reported production data may be reduced when reported under the JORC
Code 2012 Nothing has come to the attention of the operator that causes it to question the accuracy or reliability
of the historical production data; An assessment of the additional exploration or evaluation work that is required
to report the data in accordance with JORC Code 2012 will be undertaken as part of the Company’s
development plan.
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Figure 1 – Kookynie Prospect Locality Map with mineralised trends.
These former mining operations have remained untested by modern exploration, particularly the potentially rich
plunge extensions of the main mineralised shoots.
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A JORC 2012 compliant Exploration Target was announced on the 12th March 2020 based off previous
production and exploration work.
Table 1 – Kookynie Gold Project Exploration Target(1)
(1) Please note the “Exploration Target” cautionary statement: The potential quantity and grade is
conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource.
It is uncertain if further exploration will result in the estimation of a Mineral Resource.
Based on the above tabulation, the Kookynie Gold Project has a total “Exploration Target” of between 294,000
ounces and 967,000 ounces. This includes historically stated mineral resource estimates and previously
excluded areas of underground development. Work to date by the Company in drilling, mapping and sampling
has supported historical work and provided confidence to including it in the “Exploration Target”.
During the financial year, Metalicity completed several rounds of extensive exploration drilling at the Kookynie
Gold Project. Since January 2021, the Company has completed a total of 102 drill holes for a total of 12,538
metres. This drilling was designed to extend known mineralisation and to provide additional data that would
lead to an updated Mineral Resource Estimates for the Leipold, McTavish and Champion prospects. The
tenure and extent of the returned mineralisation bodes exceptionally well for this future initial Mineral
Resource Estimate at Champion, McTavish and Leipold. With these results received the Company is making
significant headway into completing these updated Resource Estimates.
Of significance, is that all three of these prospects remain open in one or more directions providing clearly
defined areas to target in the next drilling programme.
The McTavish Prospect
Assay results from recent drilling at the McTavish Prospect delivered some of the best high-grade results at
the Kookynie Project to date, with spectacular intercepts including1:
o McTRC0049 - 5 metres @ 25.9 g/t from 28 metres incl:
▪
▪
3 metres @ 41.5 g/t from 30 metres,
1 metre @ 91.2g/t Au from 30 metres);
o McTRC0064 - 6 metres @ 20.6 g/t from 19 metres incl
▪
4 metres @ 29.1 g/t from 20 metres;
o McTRC0044 - 3 metres @ 19.1 g/t from 88 metres incl:
▪
1 metre @ 52.8 g/t from 89 metres;
o McTRC0051 - 4 metres @ 3.5 g/t from 8 metres incl:
▪
1 metre @ 11.4 g/t from 10 metres.
1Please refer ASX announcement “Bonanza Gold Intersections at Kookynie Gold Project” dated 8 July 2021
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Lower g/t AuUpper g/t AuLower tonnesUpper TonnesLower ounce rangeUpper Ounce RangeDiamantina-Cosmopolitan-Cumberland (DCC) Trend10.0 15.0 300,000 600,000 100,000290,000previously excluded area of underground development6.0 10.0 600,000 1,000,000 115,000320,000215,000610,000The Champion Prospect3.6 6.0 200,000 400,000 25,000 80,000 previously excluded area of underground development2.0 4.0 60,000 150,000 4,000 20,000 29,000100,000The McTavish Prospect1.8 5.0 250,000 500,000 15,000 80,000 previously excluded area of underground development1.5 5.0 100,000 200,000 5,000 32,000 20,000112,000The Leipold Prospect1.5 5.0 500,000 800,000 25,000 120,000 previously excluded area of underground development1.5 4.0 100,000 200,000 5,000 25,000 30,000145,000Overall Ounce RangeOverall Ounce RangeOverall Ounce RangeOverall Ounce RangeKookynie Gold Project "Exploration Target" SummationGrade RangeTonnage RangeOuncesProspect
Table 1 – McTavish Prospect Anomalous Drill Hole Intercepts.
Note: Duplicates and CRM analysis was not used in the calculation of the significant intercepts. A hole listed with “no significant
anomalism” means that no sample run returned a value to trigger reporting.
The intercepts above were calculated based on a sample returning an assay value of greater than 1 g/t Au
over an interval greater than 2 metres, but not including any more than 1 metre of internal material that graded
less than 1 g/t Au. Intervals were based on geology and no top cut off was applied.
The results above continue to define and expand the mineralisation observed at McTavish (Table 1 above),
which given the nature of the mineralisation and the drilling angle, are very close to true widths for the
mineralisation observed. The tenure and extent of the returned mineralisation bodes exceptionally well for this
future Mineral Resource Estimate at McTavish, and the Company has observed similar structures at
Champion and Leipold that correlate with previously observed mineralisation.
Figure 2 details a plane of vein long section for the McTavish drilling to date and intercepts reported in Table
1.
Drilling has recommenced in September 2021, prioritising McTavish and the 2km of untested strike between
McTavish and Leipold, which remains open and is becoming increasing prospective for defining high-grade
lodes.
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Hole IDTenementHole TypeEastingNorthingRLEOHDipAziFrom (m)To (m)Down Hole Width (m)Grade (Au g/t)CommentsMcTRC0039M40/77RC350,6286,753,88642684-60270192011.11 metre @ 1.1 g/t from 19 metres232412.31 metre @ 2.3 g/t from 23 metres313211.11 metre @ 1.1 g/t from 31 metres212211.11 metre @ 1.1 g/t from 21 metres232521.22 metres @ 1.2 g/t from 23 metres272812.21 metre @ 2.2 g/t from 22 metresMcTRC0042M40/77RC350,6226,754,01142954-60270McTRC0043M40/77RC350,6146,754,05643066-60270McTRC0044M40/77RC350,6646,754,09643096-602708891319.13 metres @ 19.1 g/t from 88 metres incl. 1 metre @ 52.8 g/t from 89 metresMcTRC0045M40/77RC350,5766,754,17543736-60270242511.21 metre @ 1.2 g/t from 24 metres373811.31 metre @ 1.3 g/t from 37 metres394231.03 metres @ 1.0 g/t from 39 metresMcTRC0047AM40/77RC350,6686,753,84842684-60270McTRC0048M40/77RC350,6016,753,88642772-602702833525.95 metres @ 25.9 g/t from 28 metres incl. 3 metres @ 41.5 g/t from 30 metres363711.51 metre @ 1.5 g/t from 36 metresMcTRC0050M40/77RC350,6206,753,91642736-60270McTRC0051M40/77RC350,6146,753,94342736-6027081243.54 metres @ 3.5 g/t from 8 metres incl. 1 metre @ 11.4 g/t from 10 metresMcTRC0052M40/77RC350,6466,753,93842754-60270353611.41 metre @ 1.4 g/t from 35 metresMcTRC0053M40/77RC350,6236,753,95542836-60270212431.03 metres @ 1.0 g/t from 21 metresMcTRC0054M40/77RC350,6406,753,95542754-60270323532.43 metres @ 2.4 g/t from 32 metresMcTRC0055M40/77RC350,6056,753,95842830-602705721.32 metres @ 1.3 g/t from 5 metresMcTRC0056M40/77RC350,6696,754,076429108-60270899122.02 metres @ 2.0 g/t from 89 metresMcTRC0057M40/77RC350,6676,754,120431108-60270McTRC0058M40/77RC350,6266,754,14043454-60270McTRC0059M40/77RC350,6206,753,84742684-60270McTRC0060M40/77RC350,6566,754,01142878-60270McTRC0061M40/77RC350,5906,754,01043036-60270171811.71 metre @ 1.7 g/t from 17 metresMcTRC0062M40/77RC350,6496,754,05842990-65270McTRC0063M40/77RC350,6086,754,17643790-60270McTRC0064M40/77RC350,5846,754,14843536-602701925620.66 metres @ 20.6 g/t from 19 metres incl. 4 metres @ 29.1 g/t from 20 metresNo significant intersectionNo significant intersectionMGA 94_Zone 51 SouthNo significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionMcTRC0049M40/77RC350,6456,753,91642654-60270No significant intersectionMcTRC0046M40/77RC350,6076,754,14943554-6027042748-60270No significant intersectionMcTRC0041M40/77RC350,6306,753,942No significant intersectionMcTRC0040M40/77RC350,6326,753,91842742-60270
Figure 2 – McTavish Plane of Vein Section with recent drilling*.
For Figure Two Drilling Results;*Please refer to ASX Announcements: Metalicity Continues to Deliver Impressive Drill Hole Results for the
Kookynie Gold Project, dated 22nd December 2020, Metalicity Continues to Deliver Fantastic Drill Hole Results for the Kookynie Gold
Project dated 1st October 2020, Metalicity Reports Drill Hole Intercepts Up to 100 g/t Au for the Kookynie Gold Project dated 15th
September 2020, Metalicity Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th August 2020,
Metalicity Delivers More Outstanding Drill Hole Results for the Kookynie Gold Project. Phase Two Drilling to Commence Imminently dated
10th July 2020, Metalicity Continues to Deliver Excellent Drill Hole Results for the Kookynie Gold Project dated 2nd July 2020, Metalicity
Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th June 2020 & Metalicity Reports Drill Hole
Intercepts Up To 80 g/t Au & Additional Tenement Acquisition for Kookynie dated 21st January 2020.
The Leipold Prospect
Drilling during the financial year at the Leipold prospect extended mineralisation a further 200 metres and is
now defined over nearly 1km to a vertical depth of only 130 metres, remaining open along strike to the north
(towards McTavish) and at depth.
Of the 22 holes drilled at Leipold since January 2021, 17 holes returned mineralised intercepts, which included1:
o
o
o
o
o
o
LPRC0122 – 2 metres @ 4.7 g/t from 65 metres incl. 1 metre @ 8.4 g/t from 66 metres,
LPRC0114 – 3 metres @ 3.3 g/t from 133 metres incl. 1 metre @ 6.4 g/t from 135 metres,
LPRC0112 – 4 metres @ 3.4 g/t from 127 metres,
LPRC0123 – 6 metres @ 1.7 g/t from 26 metres,
LPRC0118 – 1 metres @ 7.4 g/t from 35 metres, and
LPRC0126 – 10 metres @ 1.1 g/t from 30 metres.
Table 2 – Leipold Prospect Anomalous Drill Hole Intercepts.
Note: Duplicates and CRM analysis was not used in the calculation of the significant intercepts. A hole listed with “no significant anomalism”
means that no sample run returned a value to trigger reporting.
Intercepts were calculated based on a sample returning an assay value of greater than 1 g/t Au over
an interval greater than 2 metres, but not including any more than 1 metre of internal material that
graded less than 1 g/t Au. Intervals were based on geology and no top cut off was applied.
1Please refer to ASX announcement “New Gold Assays Extend Mineralisation to 1km at Leipold” dated 2 July 2021.
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Hole IDTenementHole TypeEastingNorthing RL EOHDipAziFrom (m)To (m)Down Hole Width (m)Grade (Au g/t)Comments13714031.53 metres @ 1.5 g/t from 137 metres14214421.12 metres @ 1.1 g/t from 142 metres14814911.81 metre @ 1.8 g/t from 148 metresLPRC0111M40/22RC350,838 6,752,052 432 110-60250838411.11 metre @ 1.1 g/t from 83 metres12713143.44 metres @ 3.4 g/t from 127 metres13413511.31 metre @ 1.3 g/t from 134 metres13713811.61 metre @ 1.6 g/t from 137 metres13413622.12 metres @ 2.1 g/t from 134 metres14714811.11 metre @ 1.1 g/t from 147 metresLPRC0114M40/22RC350,890 6,752,116 432 158-6025013313633.33 metres @ 3.3 g/t from 133 metres incl. 1 metre @ 6.4 g/t from 135 metresLPRC0115M40/22RC350,865 6,752,125 432 140-6025012412513.41 metre @ 3.4 g/t from 124 metresLPRC0116M40/22RC350,809 6,752,087 432 94-60250656941.74 metres @ 1.7 g/t from 65 metresLPRC0117M40/22RC350,805 6,752,146 432 102-60250848622.42 metres @ 2.4 g/t from 84 metres353617.41 metre @ 7.4 g/t from 35 metres394012.91 metre @ 2.9 g/t from 39 metres444511.21 metre @ 1.2 g/t from 44 metresLPRC0119M40/22RC350,794 6,752,188 432 118-60250828313.71 metre @ 3.7 g/t from 82 metresLPRC0120M40/22RC350,835 6,752,180 432 140-60250LPRC0121M40/22RC350,874 6,752,160 432 162-60250656724.72 metres @ 4.7 g/t from 65 metres incl. 1 metre @ 8.4 g/t from 66 metres727422.02 metres @ 2.0 g/t from 72 metres263261.76 metres @ 1.7 g/t from 26 metres363711.11 metre @ 1.1 g/t from 36 metresLPRC0124M40/22RC350,712 6,752,252 432 60-60250383911.51 metre @ 1.5 g/t from 38 metresLPRC0125M40/22RC350,712 6,752,273 432 60-60250414213.31 metre @ 3.3 g/t from 41 metres303221.42 metres @ 1.4 g/t from 30 metres, within 10 m @ 1.1 g/t from 30 m anomalous zone343622.12 metres @ 2.1 g/t from 34 metres, within 10 m @ 1.1 g/t from 30 m anomalous zone384021.62 metres @ 1.6 g/t from 38 metres, within 10 m @ 1.1 g/t from 30 m anomalous zoneLPRC0127M40/22RC350,725 6,752,185 430 48-60250LPRC0128M40/22RC350,963 6,752,009 432 186-6025010710811.01 metre @ 1.0 g/t from 107 metres11111431.33 metres @ 1.3 g/t from 111 metresLPRC0130M40/22RC350,924 6,751,996 432 168-6025014814912.02 metres @ 2.0 g/t from 148 metresLPRC0131M40/22RC350,798 6,752,240 432 120-6025054-60250MGA 94_Zone 51 SouthLPRC0126M40/22RC350,717 6,752,232 431 250LPRC0129M40/22RC350,886 6,751,983 432 126-60250-60250LPRC0123M40/22RC350,717 6,752,211 431 42-6066-60250LPRC0122M40/22RC350,766 6,752,200 432 90LPRC0118M40/22RC350,749 6,752,149 431 LPRC0113M40/22RC350,919 6,752,106 432 No significant intersectionNo significant intersectionLPRC0112M40/22RC350,899 6,752,074 432 160-60170-60250No significant intersectionNo significant intersectionNo significant intersection250176-60250LPRC0110M40/22RC350,917 6,752,057 432
Figure 3 – Leipold Plane of Vein Section with recent drilling*.
For Figure Three Drilling Results;*Please refer to ASX Announcements: Metalicity Continues to Deliver Impressive Drill Hole Results for the
Kookynie Gold Project, dated 22nd December 2020, Metalicity Continues to Deliver Fantastic Drill Hole Results for the Kookynie Gold Project dated
1st October 2020, Metalicity Reports Drill Hole Intercepts Up to 100 g/t Au for the Kookynie Gold Project dated 15th September 2020, Metalicity
Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th August 2020, Metalicity Delivers More Outstanding
Drill Hole Results for the Kookynie Gold Project. Phase Two Drilling to Commence Imminently dated 10th July 2020, Metalicity Continues to Deliver
Excellent Drill Hole Results for the Kookynie Gold Project dated 2nd July 2020, Metalicity Continues to Deliver Spectacular Drill Hole Results for the
Kookynie Gold Project dated 25th June 2020 & Metalicity Reports Drill Hole Intercepts Up To 80 g/t Au & Additional Tenement Acquisition for
Kookynie dated 21st January 2020.
The Champion Prospect
The Champion prospect has delivered consistent grades over considerable widths from the most recent assays
from drilling which commenced in January 2021, returning significant intercepts in 16 of the 24 holes drilled,
including1:
o CPRC0023:
▪
▪
5 metres @ 1.5 g/t from 95 metres and;
4 metres @ 3.9 g/t from 104 metres incl:
●
2 metres @ 6.5 g/t from 105 metres.
▪ Combined interval of 12 metres @ 2.04 g/t Au from 95 metres.
o CPRC0035:
▪
5 metres @ 2.1 g/t from 117 metres incl:
●
1 metre @ 6.3 g/t from 120 metres.
o CPRC0034:
▪
1 metre @ 3.6 g/t from 179 metres & 4 metres @ 2.8 g/t from 185 metres incl:
●
1 metre @ 7.2 g/t from 185 metres.
▪ Combined interval of 10 metres @ 1.6 g/t Au from 179 metres.
1Please refer to ASX announcement “Strong Gold Results Continue at Kookynie Gold Project” dated 15 July 2021.
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Table 3 – Champion Prospect Anomalous Drill Hole Intercepts.
Note: Duplicates and CRM analysis was not used in the calculation of the significant intercepts. A hole listed with “no significant anomalism”
means that no sample run returned a value to trigger reporting.
The intercepts above were calculated based on a sample returning an assay value of greater than 1 g/t Au
over an interval greater than 2 metres, but not including any more than 1 metre of internal material that graded
less than 1 g/t Au. Intervals were based on geology and no top cut off was applied.
Given the dip and angle of drilling, these incepts are very close to true widths for the mineralisation observed
at Champion, which remains open at depth as shown in Figure 4 below.
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Hole IDTenementHole TypeEastingNorthing RL EOHDipAziFrom (m)To (m)Down Hole Width (m)Grade (Au g/t)CommentsCPRC0016M40/27RC352,2136,757,476413.6114-60270CPRC0017M40/27RC352,1856,757,509413.190-60270CPRC0018M40/27RC352,1886,757,534413.772-60272676811.41 metre @ 1.4 g/t from 67 metresCPRC0019M40/27RC352,1816,757,605413.248-60270222311.11 metre @ 1.1 g/t from 22 metresCPRC0020M40/27RC352,2226,757,641413.884-60280CPRC0021M40/27RC352,1806,757,677414.048-60270323311.71 metre @ 1.7 g/t from 32 metres12112441.74 metres @ 1.7 g/t from 121 metres12612711.11 metre @ 1.1 g/t from 126 metres9510151.55 metres @ 1.5 g/t from 95 metres10410843.94 metres @ 3.9 g/t from 104 metres incl. 2 metres @ 6.5 g/t from 105 metresCPRC0024M40/27RC352,1676,757,516417.760-55270CPRC0025M40/27RC352,1476,757,458416.054-60270424311.11 metre @ 1.1 g/t from 42 metresCPRC0026M40/27RC352,2426,757,457414.7150-6027014014118.41 metre @ 8.4 g/t from 140 metresCPRC0027M40/27RC352,2746,757,476414.1174-6027016716811.01 metre @ 1.0 g/t from 167 metresCPRC0028M40/27RC352,2246,757,530416.6132-75255CPRC0029M40/27RC352,2286,757,529416.7132-80305CPRC0030M40/27RC352,2366,757,526417.1156-90011611712.81 metre @ 2.8 g/t from 116 metres14114322.72 metres @ 2.7 g/t from 141 metres15215313.51 metre @ 3.5 g/t from 152 metresCPRC0032M40/27RC352,2406,757,565418.5156-80250CPRC0033M40/27RC352,2516,757,563419.7180-8522517918013.61 metre @ 3.6 g/t from 179 metres18518942.84 metres @ 2.8 g/t from 185 metres incl. 1 metre @ 7.2 g/t from 185 metresCPRC0035M40/27RC352,2676,757,637418.2132-6027011711852.15 metres @ 2.1 g/t from 117 metres incl. 1 metre @ 6.3 g/t from 120 metresCPRC0036M40/27RC352,2616,757,677417.3126-6027011411512.01 metre @ 2.0 g/t from 114 metresCPRC0037M40/27RC352,2036,757,571417.560-60270454832.43 metres @ 2.4 g/t from 45 metresCPRC0038M40/27RC352,2836,757,481414.5174-68.529813313411.01 metre @ 1.0 g/t from 133 metres13513941.34 metres @ 1.3 g/t from 135 metres14114432.53 metres @ 2.5 g/t from 141 metres incl. 1 metre @ 5.6 g/t from 143 metresCPRC0039M40/27RC352,2536,757,608417.9162-75270No significant intersectionNo significant intersectionCPRC0034M40/27RC352,2596,757,605416.9198-80220No significant intersectionNo significant intersectionNo significant intersectionCPRC0031M40/27RC352,2396,757,571418.9168-80305CPRC0023M40/27RC352,2376,757,569418.1114-60270MGA 94_Zone 51 SouthNo significant intersectionNo significant intersectionNo significant intersectionCPRC0022M40/27RC352,2606,757,601417.1138-60270
Figure 4 – Champion Prospect Plane of Vein Section with recent drilling*.
For Figure Two Drilling Results;*Please refer to ASX Announcements: Metalicity Continues to Deliver Impressive Drill Hole Results for the
Kookynie Gold Project, dated 22nd December 2020, Metalicity Continues to Deliver Fantastic Drill Hole Results for the Kookynie Gold
Project dated 1st October 2020, Metalicity Reports Drill Hole Intercepts Up to 100 g/t Au for the Kookynie Gold Project dated 15th
September 2020, Metalicity Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th August 2020,
Metalicity Delivers More Outstanding Drill Hole Results for the Kookynie Gold Project. Phase Two Drilling to Commence Imminently dated
10th July 2020, Metalicity Continues to Deliver Excellent Drill Hole Results for the Kookynie Gold Project dated 2nd July 2020, Metalicity
Continues to Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th June 2020 & Metalicity Reports Drill Hole
Intercepts Up To 80 g/t Au & Additional Tenement Acquisition for Kookynie dated 21st January 2020.
Cosmopolitan Gold Mine
Seven of the 12 holes drilled at the Cosmopolitan Gold Mine in 2021 have delivered significant intercepts,
further highlighting the potential of this prospect1. Whilst values returned are not at historical grades, incredibly
high variability in re-assaying has been encountered the Cosmopolitan Gold Mine was once one of the largest
gold mines in Western Australia during its time, which produced 360,000 ounces at 15 g/t Au2, it is highly
encouraging to intersect the structure that hosted the historical workings continues and is mineralised.
1Please refer ASX announced “Cosmopolitan Gold Mine Drilling Results” dated 28 July 2021
2Cautionary Statement Relating to Cosmopolitan Historical Production Data
The Production details for the Cosmopolitan Mine are referenced from publicly available data sources. The source and date of the
production data for the Cosmopolitan Gold Mine has been reported in the Geological Survey of Western Australia records showing the
development of the Cosmopolitan Gold Mine in 1905. DMIRS digital records include open file Annual Reports and data pertaining to the
exploration and development efforts of previous operators. Two documents with WAMEX reference numbers A069774 and A067918 are
of particular interest. The previous operator in the early 2000’s, Point Exploration Ltd, digitised these historical maps, including the
channel sampling. The historical production data have not been reported in accordance with the JORC Code 2012. A Competent Person
has not done sufficient work to disclose the historical production data in accordance with the JORC Code 2012. It is possible that
following further evaluation and/or exploration work that the confidence in the prior reported production data may be reduced when
reported under the JORC Code 2012 Nothing has come to the attention of the operator that causes it to question the accuracy or
reliability of the historical production data; An assessment of the additional exploration or evaluation work that is required to report the
data in accordance with JORC Code 2012 will be undertaken as part of the Company’s development plan
11
Figure 5 below details a plane of vein long section for the Cosmopolitan drilling to date and intercepts reported
in Table 4 (below).
Figure 5 – Cosmopolitan Gold Mine Plane of Vein Section with recent drilling*.
For Figure 5 Drilling Results;*Please refer to ASX Announcements: Metalicity Continues to Deliver Impressive Drill Hole Results for the Kookynie
Gold Project, dated 22nd December 2020, Metalicity Continues to Deliver Fantastic Drill Hole Results for the Kookynie Gold Project dated 1st October
2020, Metalicity Reports Drill Hole Intercepts Up to 100 g/t Au for the Kookynie Gold Project dated 15th September 2020, Metalicity Continues to
Deliver Spectacular Drill Hole Results for the Kookynie Gold Project dated 25th August 2020, Metalicity Delivers More Outstanding Drill Hole
Results for the Kookynie Gold Project. Phase Two Drilling to Commence Imminently dated 10th July 2020, Metalicity Continues to Deliver Excellent
Drill Hole Results for the Kookynie Gold Project dated 2nd July 2020, Metalicity Continues to Deliver Spectacular Drill Hole Results for the
Kookynie Gold Project dated 25th June 2020 & Metalicity Reports Drill Hole Intercepts Up To 80 g/t Au & Additional Tenement Acquisition for
Kookynie dated 21st January 2020.
12
Directors’ Report
Table 4 – Cosmopolitan Gold Mine Anomalous Drill Hole Intercepts.
Note: Duplicates and CRM analysis was not used in the calculation of the significant intercepts. A hole listed with “no
significant anomalism” means that no sample run returned a value to trigger reporting.
The intercepts above were calculated based on a sample returning an assay value of greater than 1 g/t Au
over an interval greater than 2 metres, but not including any more than 1 metre of internal material that
graded less than 1 g/t Au. Intervals were based on geology and no top cut off was applied.
The Yundamindra Gold Project
The Yundamindra Gold Project hosts high grade historical production of 74kt @ 19.3 g/t Au for 45,000
ounces. Significant intercepts from the Prospects within the Project include1:
o Bound to Rise - 2m @ 7.21 g/t Au from 30 m in HC007,
o Pennyweight Point - 8m @ 56.36 g/t Au from 44 m in PV095,
o Golden Treasure North - 1m @ 48.1 g/t Au from 12 m in TDN18,
o Queen of the May - 2m @ 39.49 g/t Au from 31 m in QMN5, &
o
Landed at Last - 2m @ 23.29 g/t Au from 30 m in LN11.
The Company has also arranged a further farm-in agreement at Yundamindra for exploration licenses
E39/1773 and E39/1774. The tenements are owned by a private entity and are immediately south of the
Yundamindra Gold Project (See Figure 6). The tenements potentially host strike extents of the mineralisation
observed at the Queen of May and Bound to Rise prospects.
Whilst all Yundamindra tenure is currently under plaint, Metalicity has been advised by Nex Metals that they
can defend this claim and they are tasked with doing so under the Farm-in and Joint Venture Agreement.
1Cautionary Statement Relating to Yundamindra Historical Production Data
The Production details for the Yundamindra are referenced from publicly available data sources. The source and date of the production data for
Yundamindra has been reported in the Geological Survey of Western Australia records showing the development of the Cosmopolitan Gold Mine in
1905. DMIRS digital records include open file Annual Reports and data pertaining to the exploration and development efforts of previous operators.
Two documents with WAMEX reference numbers A069774 and A067918 are of particular interest. The previous operator in the early 2000’s, Point
Exploration Ltd, digitised these historical maps, including the channel sampling. The historical production data have not been reported in
accordance with the JORC Code 2012. A Competent Person has not done sufficient work to disclose the historical production data in accordance
with the JORC Code 2012. It is possible that following further evaluation and/or exploration work that the confidence in the prior reported
production data may be reduced when reported under the JORC Code 2012 Nothing has come to the attention of the operator that causes it to
question the accuracy or reliability of the historical production data; An assessment of the additional exploration or evaluation work that is required
to report the data in accordance with JORC Code 2012 will be undertaken as part of the Company’s development plan.
13
Hole IDTenementHole TypeEastingNorthingRLEOHDipAziFrom (m)To (m)Down Hole Width (m)Grade (Au g/t)CommentsCOSRC0022M40/61RC354,346 6,753,970 431240-75270Note this exludes re-assay of COSRC0022 from Viz Au 227 to 228 m where we did get a 1.5 and a 1.2 on 2 samplesCOSRC0023M40/61RC354,376 6,753,930 433234-72270COSRC0024M40/61RC354,388 6,753,890 434270-70270COSRC0025M40/61RC354,386 6,753,850 433250-7027019319415.41 metre @ 5.4 g/t from 193 metres20220313.91 metre @ 3.9 g/t from 202 metres18318414.41 metre @ 4.4 g/t from 183 metres20820917.71 metre @ 7.7 g/t from 208 metresCOSRC0028M40/61RC354,335 6,753,535 428252-80270COSRC0029M40/61RC354,348 6,753,515 428232-6027016516722.12 metres @ 2.1 g/t from 165 metresCOSRC0030M40/61RC354,377 6,753,450 428256-7027018218861.46 metres @ 1.4 g/t from 182 metresCOSRC0031M40/61RC354,377 6,753,450 428102-60270COSRC0032M40/61RC354,371 6,753,385 428245-8027018018221.92 metres @ 1.4 g/t from 182 metresCOSRC0033M40/61RC354,368 6,753,345 429275-75270-80270No significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionNo significant intersectionMGA 94_Zone 51 SouthCOSRC0027M40/61RC354,371 6,753,580 429274-80270COSRC0026M40/61RC354,393 6,753,780 431269
Directors’ Report
*Please refer to ASX Announcement “September 2019 Quarterly Activities Report” dated 30 October 2019.
Figure 6 – Yundamindra Tenement Map*
Admiral Bay
The Company currently holds an 80.3% interest in Kimberley Mining Ltd.(KML), that in turn holds 100% of
the Admiral Bay Asset. While the asset itself is on care and maintenance, the Company is continuing to look
for opportunities to monetise its interest in KML.
As the Company is now looking to concentrate its efforts on the Kookynie and Yundamindra Gold Projects it
can confirm that the Admiral Bay Project is no longer core business.
Metalicity continues to provide assistance to KML through this period with a view to maximising benefits to
all shareholders.
14
Directors’ Report
Disclaimer and Forward-Looking Statements
This report is not a prospectus nor an offer of securities for subscription or sale in any jurisdiction nor a
securities recommendation. The information in this report is an overview and does not contain all
information necessary for investment decisions. In making investment decisions, investors should rely on
their own examination of Metalicity Limited and consult with their own legal, tax, business and/or financial
advisers in connection with any acquisition of securities. The information contained in this report has been
prepared in good faith by Metalicity Limited. However, no representation or warranty, express or implied, is
made as to the completeness or adequacy of any statements, estimates, opinions or other information
contained in this report. To the maximum extent permitted by law, Metalicity Limited, its directors, officers,
employees and agents disclaim liability for any loss or damage which may be suffered by any person
through the use of, or reliance on, anything contained in or omitted from this report. Certain information in
this report refers to the intentions of Metalicity Limited, but these are not intended to be forecasts, forward
looking statements, or statements about future matters for the purposes of the Corporations Act (Cth,
Australia) or any other applicable law. The occurrence of events in the future are subject to risks,
uncertainties and other factors that may cause Metalicity Limited’s actual results, performance or
achievements to differ from those referred to in this report to occur as contemplated. The report contains
only a synopsis of more detailed information to be published in relation to the matters described in this
document and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or
completeness of such information and to do so could potentially expose you to a significant risk of losing all
of the property invested by you or incurring by you of additional liability. Recipients of this report should
conduct their own investigation, evaluation and analysis of the business, data and property described in this
document. In particular, any estimates or projections or opinions contained herein necessarily involve
significant elements of subjective judgment, analysis and assumptions and you should satisfy yourself in
relation to such matters. Furthermore, this report may contain certain “forward-looking statements” which
may not have been based solely on historical facts, but rather may be based on the Company’s current
expectations about future events and results. Where the Company expresses or implies an expectation or
belief as to future events or results, such expectation or belief is expressed in good faith and believed to
have reasonable basis. However, forward-looking statements:
(a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable
by the Company, are inherently subject to significant technical, business, economic, competitive, political
and social uncertainties and contingencies;
(b) involve known and unknown risks and uncertainties that could cause actual events or results to differ
materially from estimated or anticipated events or results reflected in such forward-looking statements.
Such risks include, without limitation, resource risk, metals price volatility, currency fluctuations, increased
production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well
as political and operational risks in the countries and states in which the Company operates or supplies or
sells product to, and governmental regulation and judicial outcomes; and
(c) may include, among other things, statements regarding estimates and assumptions in respect of prices,
costs, results and capital expenditure, and are or may be based on assumptions and estimates related to
future technical, economic, market, political, social and other conditions.
The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”,
“budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward-looking statements.
All forward-looking statements contained in this presentation are qualified by the foregoing cautionary
statements. Recipients are cautioned that forward-looking statements are not guarantees of future
performance and accordingly recipients are cautioned not to put undue reliance on forward-looking
statements due to the inherent uncertainty therein.
The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether
because of new information, future events or results or otherwise.
15
Directors’ Report
Competent Person Statements
Information in this report that relates to Exploration results and targets is based on, and fairly reflects,
information compiled by Mr. Jason Livingstone, a Competent Person who is a Member of the Australian
Institute of Geoscientists. Mr. Livingstone is an employee of Metalicity Limited. Mr. Livingstone has
sufficient experience that 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 by the 2012 Edition
of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr.
Livingstone consents to the inclusion of the data in the form and context in which it appears. In addition,
please refer to the referenced ASX Announcements for the Competent Persons Statements applicable.
The Groupis not aware of any new information or data that materially affects the information included in the
report and, in the case of “exploration results” that all material assumptions and technical parameters
underpinning the “exploration results” in the relevant announcements referenced apply and have not
materially changed.
16
Tenement Schedule
Directors’ Report
The following table shows the tenements the Group has an interest in at 30 June 2021:
Tenement
Registered Holder
Shares
Held
Plainted
Stat
us
Area (ha)
Nature of
Interest
Interest
Kookynie
P40/1331
KYM Mining Limited
100/100
E40/390
E40/350
E40/357
E40/401
KYM Mining Limited
100/100
KYM Mining Limited
100/100
KYM Mining Limited
100/100
KYM Mining Limited
100/100
P40/1407
KYM Mining Limited
100/100
P40/1430
KYM Mining Limited
100/100
P40/1510
Metalicity Limited
P40/1511
Metalicity Limited
Metalicity Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Paris Enterprises Pty
Ltd
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
90,405/90
,405
100/100
100/100
100/100
100/100
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
161.2
3,300.0
2,394.0
1,194.0
598.0
10.0
9.9
185.0
176.7
299.0
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Live
7.2
Earnt In
Live
1.0
Earnt In
Live
600.0
Earnt In
Live
121.7
Earnt In
Live
85.5
Earnt In
Live
832.7
Earnt In
Live
119.2
Earnt In
Live
8.3
Earnt In
Live
5.9
Earnt In
Live
21.1
Earnt In
Live
1,222.7
Earning In
Kookynie Total Area (ha)
11,352.9
Yundamindra
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
100/100
Yes
Live
1.0
Earnt In
96/96
Yes
Live
1.0
Earnt In
100/100
Yes
Live
3.2
Earnt In
100/100
Yes
Live
378.0
Earnt In
100/100
Yes
Live
230.0
Earnt In
100/100
Yes
Live
124.0
Earnt In
100/100
Yes
Live
896.0
Earnt In
100/100
Yes
Live
785.0
Earnt In
100/100
Yes
Live
966.0
Earnt In
100/100
Yes
Live
978.0
Earnt In
E40/387
G40/3
L40/9
E40/332
M40/22
M40/27
M40/61
M40/77
P40/1499
P40/1500
P40/1501
E40/289
L39/34
L39/52
L39/258
M39/84
M39/274
M39/406
M39/407
M39/408
M39/409
M39/410
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
17
Directors’ Report
M39/839
M39/840
P39/6126
P39/6127
E39/1773
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Paddick Investments
Pty Ltd
E39/1774
Paddick Investments
Pty Ltd
100/100
Yes
Live
7.3
Earnt In
100/100
Yes
Live
9.7
Earnt In
100/100
100/100
No
No
Live
10.4
Earnt In
Live
5.6
Earnt In
100/100
Yes
Live
903.0
Earning-in
51%
51%
51%
51%
51%
100/100
Yes
Live
2,517.0
Earning-in
51%
Yundamindra Total Area (ha)
7,815.1
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
Admiral Bay
E04/1610
Kimberley Mining Australia Pty Lyd
Live
M04/244
Kimberley Mining Australia Pty Lyd
Live
M40/249
Kimberley Mining Australia Pty Lyd
Live
42
Blocks
796.4 ha
843.85
ha
Holding in
Subsidiary
Holding in
Subsidiary
Holding in
Subsidiary
80.3%
80.3%
80.3%
18
Directors’ Report
Results
The net loss after income tax for the year ended 30 June 2021 was $3,170,895 (30 June 2020: loss
$1,340,757).
Significant changes in state of affairs
There were no significant changes in the state of affairs of the Group during the financial year.
Environmental regulations
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that
it complies with all regulations when carrying out exploration work.
Dividends
No dividends have been paid or declared since the beginning of the financial year and none are
recommended.
Subsequent events
Other than the following, the Directors are not aware of any significant events since the end of the reporting
period which significantly affect or could significantly affect the operations of the Group in future financial
years:
- On 2 July 2021, the Company announced final assay results at Leipold Prospect, which extends
mineralisation to 1km;
- On 8 July 2021, the Company announced Bonanza Gold intercepts from assays on recent drilling at
McTavish Prospect;
- On 14 July 2021, the Company advised that 18,394,499 listed options exercisable at $0.004 had
been converted, raising $73,578;
- On 15 July 2021, the Company announced assay results from Champion Prospect, which had
delivered consistent grades over good widths close to surface;
- On 28 July 2021, the Company announced the final assay results from drilling programme at
Cosmoplitan Gold Mine;
- On 26 August 2021, the Company announced that 7,500,000 options with various exercises prices
had expired;
- On 7 and 13 September 2021, the Company announced that drilling recommenced at the McTavish
prospect;
- On 14 September 2021, the Company announced a proposal to Nex Metals Shareholders of an off-
market script bid for all of the fully paid ordinary shares in Nex Metals. The offer to Nex shareholders
is 4.81 Metalicty shares for every 1 Nex Metals share on issue as at the date of the announcement.
- On 24 September 2021, the Company released the Bidders Statement to Nex Metals Shareholders
together with proposed issue of securities under the offer.
Likely developments and expected results of Operations
The Group will continue to explore and assess its mineral projects.
Response to COVID-19
Due to the impact of COVID-19, The Group continued to assess its strategic objectives and funding position
to ensure that it can continue to maintain the development momentum at its projects.
In line with its commitments to safeguard the health and well-being of its employees and contractors, the
Group introduced company-wide protocols consistent with the ongoing advice from the Government and
health authorities. The Group continues to monitor the advice to ensure its protocols remain relevant.
19
Information on Directors
Directors’ Report
Andrew Daley -
Non-executive Chairman – appointed as a Non-Executive Director in August
2013 and Chairman on 18 May 2021
Experience and Expertise
Mr Daley has a Bachelor of Science (Honours), a Grad Dip in Mineral Economics and is a Fellow of the
Australasian Institute of Mining and Metallurgy. He has over 50 years’ experience in resources worldwide
having initially worked with Anglo American Corp, Rio Tinto, Conoco Minerals and Fluor Australia in mining
operations, project evaluation and mining development. Mr Daley then moved into resource project financing
with National Australia Bank, Chase Manhattan Bank and from 1999 to 2003 was a Director of the Mining
Team at Barclays Capital in London. Moving back to Australia, Mr Daley was a Director of Investor Resources
Finance Pty Ltd, a company based in Melbourne which provided financial advisory services to the resources
industry globally and for the last 20 years has also been a Director and Chairman of the Board of a number
of developing public resource companies both in Australia and the UK.
Other Current Directorships
None
Former Directorships in the Last Three Years
None
Special Responsibilities
Chairman of the Audit and Risk Committee and the Remuneration and Nomination Committee.
Interests in Shares and Options
13,992,982 ordinary shares and 5,985,055 performance rights.
Justin Barton –
January 2018 and Chief Executive Officer on 1 June 2021
Chief Executive Officer and Finance Director – appointed Finance Director on 1
Experience and Expertise
Mr Barton is a Chartered Accountant with over 20 years’ experience in accounting, international finance, M&A
and the mining industry. He worked for over 13 years in the Big 4 Accounting firms in Australia and Europe
and advised many of the world’s largest mining, oil & gas companies and financial institutions, including Rio
Tinto, Chevron, Macquarie, Merrill Lynch, Morgan Stanley and Deutsche Bank. Justin also worked for 4 years
at Paladin Energy Limited as Group Tax and Finance Manager. More recently, he has worked as the CFO
and has been a Board Member of a number of junior exploration companies.
Other Current Directorships
Kimberley Mining Limited (a public unlisted Canadian company)
Former Directorships in the Last Three Years
Great Western Exploration Limited (appointed 20 May 2020, resigned 4 June 2020)
Eneabba Gas Limited (appointed 1 March 2017, resigned 10 October 2017)
Interposed Holdings Limited (appointed 10 January 2017, resigned 11 December 2017)
Special Responsibilities
Finance Director, member of the Audit Committee and the Remuneration and Nomination Committee.
Interests in Shares and Options
15,439,284 ordinary shares and 29,565,220 performance rights
20
Directors’ Report
Jason Livingstone - Technical Director – resigned as Managing Director on 1 June 2021
Experience and Expertise
Mr Livingstone is a geologist with 20 years’ experience across exploration through to production environments
on four continents. Mr Livingstone holds a Bachelor of Science (Geology) from the West Australian School
of Mines, a Masters of Business Administration from the Curtin Graduate School of Business, is a member
of the Australian Institute of Geoscientists, and has completed the Company Directors Course at the
Australian Institute of Company Directors.
Other Current Directorships
None
Former Directorships in the Last Three Years
None
Special Responsibilities
None
Interests in Shares and Options
23,574,348 ordinary shares, 37,531,253 performance rights and 4,000,000 unlisted options
Mathew Longworth - Non-executive Chairman – appointed 1 July 2019 and resigned 18 May 2021
Experience and Expertise
Mr Longworth is a geologist with 30 years’ experience across exploration, project evaluation/development,
operations and corporate management. He previously held roles as Exploration Manager, COO and
CEO/Managing Director with Australian listed companies, and mining analyst with a boutique investment
fund. In his senior corporate roles, Mathew led multidisciplinary project evaluation and development teams.
Mr. Longworth is a member of the Australasian Institute of Mining and Metallurgy.
Other Current Directorships
Ardea Resources
Greenfields Exploration Limited (a public unlisted company)
Former Directorships in the Last Three Years
Kimberley Mining Limited (a public unlisted Canadian company) – resigned 18 May 2021
Special Responsibilities
None
21
Directors’ Report
Company Secretary
Nicholas Day –
Company Secretary – appointed 24 September 2020
Mr Day has over 20 years’ experience as a company Director, CFO and company secretary for a broad
range of listed and private exploration, mining and technology companies. Previously he was CFO and
company secretary of Battery Minerals, Minbos Resources Limited, Dreadnought Resources Limited, RTG
Mining, finance Director at Coventry Resources and company secretary to Paringa Resources Limited and
Ebooks Corporation. Qualifications: BCOM(UWA); MBA(UWA); Fellow Finsia, ACPA. Qualifications:
BCOM(UWA); MBA(UWA); Fellow Finsia, ACPA.
Directors’ meetings
The number of meetings of the Company’s board held during the year ended 30 June 2021 that each Director
was eligible to attend, and the number of meetings attended by each Director were:
Director
Number of Meetings
Eligible to attend
Attended
Andrew Daley
Justin Barton
Jason Livingstone
Mathew Longworth
19
19
19
16
18
19
19
16
The whole board undertakes the role of the Audit & Risk Committee, the Remuneration Committee and the
Nomination Committee given the size and complexity of the Company.
22
Remuneration Report (Audited)
Directors’ Report
The information provided in this Remuneration Report has been audited as required by Section 308(3C) of
the Corporations Act 2001.
Executive remuneration
The objective of the Group’s executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with achievement of
strategic objectives and the creation of value for shareholders, and conforms to market best practice for
delivery of reward. The board ensures that executive reward satisfies the following key criteria for good
reward governance practices:
(i) competitiveness and reasonableness;
(ii) acceptability to shareholders;
(iii) performance linkage / alignment of executive compensation;
(iv) transparency; and
(v) capital management.
The Group has structured an executive remuneration framework that is market competitive and
complimentary to the reward strategy of the organisation, which are designed to align the interests of
executives with those of shareholder and costs of:
1) Fixed remuneration
The fees and payments to the executive reflect the demands which are made on, and the responsibilities of
the executive, and are in line with market. The executives’ remuneration is reviewed annually by the board
to ensure that the fees and payments remain appropriate and in line with the market.
The Company has entered into standard contracts with executive Directors, the details of which are set out
below.
2) Variable remuneration – Long term incentives
Being performance shares and/or options issued under the Employees Share Plan. The performance shares
and employee options issued under this plan have varying vesting and service conditions and are structured
to reward performance that aligns with the creation of shareholder value and confirms to market best practice.
3) Termination
Executive Directors currently have a 6 month notice period in ordinary course of business and a 12 month
notice period in the event of Change of Control event or for 12 months after such event.
Non-executive Directors remuneration
Fees to the non-executive Directors are determined by the board acting as the Remuneration Committee as
appropriate having regard to the market and the aggregate remuneration specified in the Company’s
Constitution ($500,000) and determined by the shareholders in general meeting. The fees are reviewed
annually.
It is the Group’s policy that service contracts for non-executive Directors are unlimited in term and capable of
termination by either party upon written notice.
The amount of remuneration of the Directors of the Company (as defined in AASB 124 Related Party
Disclosures) and other key management personnel is set out in the following tables.
The Company has entered into standard contracts with Directors, the details of which are set out below.
23
Remuneration Report (audited) (continued)
Directors’ Report
2021
Salary &,
fees
Other
Super-
annuation
Options/
Performance
Rights6
Total
Performance
related %
$
$
$
$
$
Executive Director
Justin Barton
Jason Livingstone1
Non-executive Directors
Andrew Daley
Mathew Longworth3
Other executives
Nick Day4
Neil Hackett5
Totals
182,507
213,321
-
83,4821,2
44,638
68,750
87,356
12,000
608,572
-
-
-
-
83,482
17,338
23,538
4,241
-
-
-
45,117
70,233
80,768
270,078
401,109
17,558
26,338
66,437
95,088
-
-
194,897
87,356
12,000
932,068
66.7%
58.9%
67.2%
68.6%
0.0%
0.0%
The fees paid to Director related entities were for the provision of services of the particular Director to the Company are as follows:
1 Jason Livingstone resigned as Managing Director and was appointed Technical Director on 1 June 2021 and was paid out all underpaid
leave entitlements totalling $33,482.
2 Jason Livingstone was paid a bonus of $50,000 during the year.
3 Mat Mining, an entity associated with Mathew Longworth, was paid $68,750. Mathew Longworth resigned on 18 May 2021.
4 133 North Trust, an associate of Nick Day, was paid $87,356 for company secretarial services. Nick Day was appointed company
secretary on 24 September 2020.
5 Corporate Starboard Pty Ltd, an entity associated with Neil Hackett, was paid $12,000 for company secretarial services. Neil Hackett
resigned on 24 September 2020.
6 Performance rights were approved by shareholders at the 2020 AGM and were issued to Directors during the year. The performance
rights have vesting hurdles of $0.04 and $0.06 (Please refer share based payment compensation below)
2020
Salary,
fees &
leave1
Other
Super-
annuation
Options/
Performance
Rights
Total
Performance
related %
$
$
$
$
$
Executive Director
Jason Livingstone
Justin Barton
Non-executive Directors
Andrew Daley
Mathew Longworth2
Other executives
Neil Hackett3
Totals
220,258
191,656
-
-
45,662
75,312
-
22,500
52,000
584,888
-
22,500
19,954
17,348
4,338
-
-
41,640
40,971
21,510
281,183
230,514
-
-
50,000
97,812
2,458
64,939
54,458
713,967
14.6%
9.3%
0.0%
0.0%
4.5%
The fees paid to Director related entities were for the provision of services of the particular Director to the Company are as follows:
1 During the year, the Directors agreed to accrue a portion of salary to preserve cash in the company during Covid-19 and obtained
shareholder approval to convert this portion of salary to shares at the general meeting on 13 August 2020. The shareholder approved
conversion of accrued Director Fees into 23,882,240 fully paid ordinary shares. The accrued salary converted to shares was $26,256
for Jason Livingstone, $22,831 for Justin Barton, $9,687 for Mat Longworth and $5,708 for Andrew Daley.
2 Mat Mining Pty Ltd, an entity associated with Mathew Longworth, was paid $75,312 (2019: $199,742) for Director’s fees and a further
$22,500 for consultancy services.
3 Corporate Starboard Pty Ltd, an entity associated with Neil Hackett, was paid $52,000.
24
Directors’ Report
Remuneration Report (audited) (continued)
Share-based compensation
During the financial year, the following performance rights for Directors and key management personnel were
granted:
2021
Name
Share price hurdle
No. granted
Grant date
Expiry Date
Jason Livingstone
Jason Livingstone
Justin Barton
Justin Barton
Andrew Daley
Andrew Daley
Mat Longworth
Mat Longworth
$0.04
$0.06
$0.04
$0.06
$0.04
$0.06
$0.04
$0.06
2020
12,299,465
15,231,788
10,695,187
13,245,033
2,673,797
3,311,258
4,010,695
4,966,887
66,434,110
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
26/11/2020
2
30/11/2022
30/11/2022
30/11/2022
30/11/2022
30/11/2022
30/11/2022
30/11/2022
30/11/2022
Name
Share price hurdle
No. granted
Grant date
Expiry Date
Jason Livingstone
Jason Livingstone
Justin Barton
Justin Barton
Neil Hackett
$0.025
$0.05
$0.025
$0.05
$0.025
10,000,000
10,000,000
5,000,000
5,625,000
1,000,000
31,625,000
25/11/2019
25/11/2019
25/11/2019
25/11/2019
25/11/2019
30/01/2023
30/01/2023
30/01/2023
30/01/2023
30/01/2023
Value of
Performance
Rights granted at
grant date
$132,834
$140,132
$115,508
$121,854
$28,877
$30,464
$43,316
$45,696
$658,681
Value of
Performance
Rights granted at
grant date
$24,583
$16,388
$12,291
$9,219
$2,458
$64,939
25
Directors’ Report
Remuneration Report (audited) (continued)
Share and option holdings of Key Management Personnel (KMP)
(i) Option and performance right holdings
Options
The numbers of options over ordinary shares in the Company held during the financial year by each KMP,
including their personally related parties, are set out below:
2021
Options
Directors
Jason
Livingstone
Andrew Daley
Justin Barton
Mathew
Longworth
Other
executives
Nick Day
Balance at
the start of
the year
Granted
during
the year
Exercised
during the
year
Expired
/cancelled
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
Vested but
not
exercisable
at end of
year
5,016,667
14,466,420
362,964
10,495,971
-
-
-
-
-
-
(1,016,667)
-
4,000,000
4,000,000
(4,216,420)
(10,250,000)
(362,964)
-
(31,709)
(10,200,024)
(264,238)(a)
-
-
-
-
-
-
-
-
-
-
30,342,022
-
(5,627,760)
(20,450,024)
(264,238)
4,000,000
4,000,000
-
-
-
-
-
-
(a)Balance at time of resignation on 18 May 2021
2020
Options
Directors
Balance at
the start of
the year
Granted
during the
year
Exercised
during
the year
Expired/cancelled
during the year
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
Vested but
not
exercisable
at end of
year
Jason Livingstone
4,000,000
1,016,667
Andrew Daley
Justin Barton
Mathew
Longworth
Other executives
12,750,000
1,716,420
13,500,000
10,200,000
362,964
295,971
Neil Hackett
6,000,000
46,450,000
-
3,392,022
-
-
-
-
-
5,016,667
5,016,667
- 14,466,420 14,466,420
362,964
362,964
(13,500,000)(b)
- 10,495,971 10,495,971
(6,000,000)(c)
-
-
(19,500,000) 30,342,022 30,342,022
(b)Options acquired as part of share holder entitlement issue and placement.
(c)Options expired on 31 December 2019 or were cancelled during the year.
-
-
-
-
-
26
Remuneration Report (audited) (continued)
Directors’ Report
Performance rights
The numbers of performance rights over ordinary shares in the Company held during the financial year by
each KMP, including their personally related parties, are set out below:
2021
Performance Rights
Directors
Balance at
the start of
the year
Granted during
the year
Exercised
during the
year
Balance at
the end of
the
year/date of
resignation
Vested and
exercisable
at the end
of the
year/date of
resignation
Vested but
not
exercisable
at end of
year
Jason Livingstone
20,000,000
27,531,253
(10,000,000) 37,531,253
Justin Barton
Andrew Daley
Mat Longworth
Other executives
Nick Day
Neil Hackett
10,625,000
23,965,220 (c)
(5,000,000) 29,590,220
-
-
-
1,400,000
32,025,000
5,985,055
8,977,582
-
5,985,055
- 8,977,582(a
)
-
-
-
-
(1,000,000)
400,000(b)
66,459,110
(16,000,000) 82,484,110
(a)Balance at time of resignation on 18 May 2021.
(b)Balance at time of resignation on 24 September 2020, which were cancelled 30 days after.
(c) Includes 25,000 performance rights not recognised in prior year.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2020
Performance Rights
Directors
Jason Livingstone
Justin Barton
Other Executives
Neil Hackett
Balance at
the start of
the year
Granted during
the year
Exercised
during the
year
Balance at
the end of
the
year/date of
resignation
Vested and
exercisable
at the end
of the
year/date of
resignation
Vested but
not
exercisable
at end of
year
-
-
20,000,000
10,625,000
- 20,000,000 10,000,000
5,000,000
- 10,625,000
400,000
400,000
1,000,000
31,625,000
-
1,400,000
1,000,000
- 32,025,000 16,000,000
-
-
-
-
27
Remuneration Report (audited) (continued)
Directors’ Report
Share and option holdings of Key Management Personnel (KMP) (continued)
(ii) Share holdings
The numbers of shares in the Company held during the financial year by each Director, including their
personally related parties, are set out below:
2021
Directors
Jason Livingstone
Andrew Daley
Justin Barton
Mathew Longworth
Other executives
Nick Day
Neil Hackett
2020
Directors
Jason Livingstone
Andrew Daley
Justin Barton
Mathew Longworth
Other executives
Neil Hackett
Balance at the
start of the year
Acquired on the
exercise of
options/vesting of
performance shares
Other changes during
the year(b)
Balance at the
end of the year
2,833,333
7,662,581
1,620,372
1,321,183
-
340,801
13,778,270
11,016,667
4,216,420
5,362,964
31,709
-
1,000,000
21,627,760
9,724,348
2,113,981
8,455,948
3,587,963
23,574,348
13,992,982
15,439,284
4,940,855(a)
-
-
-
1,340,801(a)
23,882,240
57,947,470
Balance at the
start of the year
Received during the
year on the
exercise of options
Other changes during
the year(c)
Balance at the
end of the year
-
3,678,036
777,778
634,167
340,801
5,430,782
-
-
-
-
-
-
2,833,333
3,984,545
842,594
687,016
2,833,333
7,662,581
1,620,372
1,321,183
-
340,801
8,347,488
13,778,270
(a) Balance at time of resignation
(b) Shares issued in lieu of salary as approved by shareholders at meeting on 13 August 2020
(c) Shares acquired as part of entitlement issue during the year ended 30 June 2020.
Link between Company performance and Remuneration policy
There is no direct link between the Company performance and Remuneration policy.
(End of Remuneration Report)
28
Directors’ Report
Additional Information
(a)
Shares under option
At the date of this report, the Company had 354,671,071 options and 82,084,110 performance rights over
ordinary shares under issue. These options are exercisable as follows:
Details
Management Incentive Options
Other Options
Details
Performance Rights
No of
Options
2,000,000
2,000,000
25,709,467
10,785,715
25,000,000
35,000,000
21,000,000
225,675,889
354,671,071
No of
Options
15,625,000
29,679,144
36,779,966
82,084,110
Grant Date
Date of Expiry Conversion Price $
10/04/2019
10/04/2019
21/02/2018
10/06/2019
13/08/2020
12/10/2020
21/06/2021
22/05/2020
14/01/2022
14/01/2022
14/02/2023
31/05/2022
14/08/2022
13/10/2023
22/06/2024
22/05/2022
0.025
0.035
0.08
0.02
0.003
0.03
0.015
0.004
Grant Date
Date of Expiry Hurdle Price $
25/11/2019
26/11/2020
26/11/2020
30/01/2023
26/11/2022
26/11/2022
0.05
0.04
0.06
Refer to note 17 for details of options cancelled and exercised during the year.
At the date of this report, Kimberly Mining Limited, a Canadian subsidiary of the Company, had the following
warrants on issue that are exercisable at the date of this report as follows:
No of
Options
Date of Expiry Conversion Price $
Grant Date
Details
Founder Warrants
Founder Warrants – Tranche 2
5,289,500
3,171,500
8,461,000
29/08/2018
28/09/2018
29/08/2023
28/09/2023
0.4
0.4
(b)
Insurance of officers
During the financial year, the Group paid a premium in respect of a contract insuring the Directors of the
Company, the Company Secretary, and any executive officers of the Company and of any related body
corporate against a liability incurred as such a Director, secretary or executive officer to the extent permitted
by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and
the amount of the premium.
(c) Agreement to indemnify officers
The Group has entered into agreements with the Directors to provide access to Group records and to
indemnify them. The indemnity relates to any liability as a result of being, or acting in their capacity as, an
officer of the Company and or its subsidiaries to the maximum extent permitted by law; and for legal costs
incurred in successfully defending civil or criminal proceedings. No liability has arisen under these indemnities
as at the date of this report.
(d) Proceedings on behalf of the Group
No person has applied to the court under Section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the
purpose of taking responsibility on behalf of the Group for all or part of those proceedings. No proceedings
have been brought or intervened in on behalf of the Group with leave of the court under Section 237.
29
Additional Information (continued)
Directors’ Report
(e) Non-audit services
No non-audit services were provided by the auditor or any entity associated with the auditor for the year
ended 30 June 2021 is $2,000 (2020: Nil).
(f)
Corporate Governance
The Company and its Board are committed to achieving and demonstrating the highest standards of
corporate governance. The Group has reviewed its Corporate Governance practices against the Corporate
Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance
Council.
The 2021 Corporate Governance Statement was approved by the Board on 30 September 2021 and is
current at this time. A copy of the Company’s current Corporate Governance Statement and Plan adopted
during the year ended 30 June 2021 can be viewed at https://www.metalicity.com.au/corporate/corporate-
governance/ .
(g) Environmental Liabilities
The Group’s operations are subject to environmental regulation in respect of mineral tenements relating to
exploration activities on those tenements. No breaches of any environmental requirements were recorded
during the financial year.
Auditor’s independence declaration
The auditor’s independence declaration is included on page 32 of the annual report.
Rounding amounts
The Company is of a kind referred to in ASIC Corporations (Rounding in Financials/Directors’ Reports)
Instrument 2016/191, relating to the ‘rounding off’ of amounts in the Director’s Report. Amounts in the
Director’s Report have been rounded off to the nearest dollar.
This Directors’ report is signed in accordance with a resolution of Directors made pursuant to s.298 (2) of the
Corporations Act 2001.
On behalf of the Directors
Justin Barton
Chief Executive Officer and Finance Director
Perth, Western Australia
30 September 2021
30
Corporate Governance Statement
For the year ended 30 June 2021
The Company’s Corporate Governance Statement and Appendix 4G can be found on the Company’s website
at www.metalicity.com.au/corporate/corporate-governance/ and was approved by the Board on 30
September 2020 and is current as at 30 September 2020.
The Board of Directors (“the Board”) is responsible for the corporate governance of the Company. The Board
guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they
are elected and to whom they are accountable.
Corporate Governance Statement outlines the main Corporate Governance practices in place throughout the
financial year, which comply with the ASX Corporate Governance Council’s Corporate Governance Principles
and Recommendations 4th edition unless otherwise stated.
31
AUDITOR'S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF METALICITY LIMITED AND ITS CONTROLLED ENTITIES
In relation to the independent audit for the year ended 30 June 2021, to the best of my
knowledge and belief there have been:
(i)
(ii)
No contraventions of the auditor independence requirements of the
Corporations Act 2001; and
no contraventions of APES 110 Code of Ethics for Professional
Accountants (including Independence Standards).
This declaration is in respect of Metalicity Limited and the entities it controlled during the
period.
PITCHER PARTNERS BA&A PTY LTD
J C PALMER
Executive Director
Perth, 30 September 2021
32
Pitcher Partners BA&A Pty LtdAn independent Western Australian Company ABN 76 601 361 095.Level 11, 12-14 The Esplanade, Perth WA 6000Registered Audit Company Number 467435.Liability limited by a scheme under Professional Standards Legislation.Adelaide Brisbane Melbourne Newcastle Perth SydneyPitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Metalicity Limited “the Company” and its controlled
entities “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, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(a)
(b)
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
complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements
of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (“the Code”) that are relevant to
our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
33
Pitcher Partners BA&A Pty LtdAn independent Western Australian Company ABN 76 601 361 095.Level 11, 12-14 The Esplanade, Perth WA 6000Registered Audit Company Number 467435.Liability limited by a scheme under Professional Standards Legislation.Adelaide Brisbane Melbourne Newcastle Perth SydneyPitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of exploration and evaluation
assets
Refer to Note 2(g), 2(s), 11
As disclosed in Note 11 of the financial
report, as at 30 June 2021, the Group held
capitalised exploration and evaluation assets
of $5,400,759.
The carrying value of exploration and
evaluation expenditure
for
impairment by the Group when facts and
circumstances indicate that the exploration
and evaluation expenditure may exceed its
recoverable amount.
is assessed
The determination as to whether there are
any indicators to require an exploration and
for
evaluation asset
impairment,
of
management judgments including but not
limited to:
to be assessed
number
involves
a
• Whether the Group has tenure of
the tenements;
• Whether the Group has sufficient
tenement
expenditure
the
to meet
funds
minimum
requirements; and
there
• Whether
is
sufficient
information for a decision to be
made that the area of interest is not
commercially viable.
Our procedures included, amongst others:
of
an
understanding
Obtaining
and
evaluating the design and implementation of
the processes and controls associated with
the
capitalisation of exploration and
evaluation expenditure, and those associated
with
impairment
indicators.
the assessment of
and
Examining the Group’s right to explore in the
relevant area of interest, which included
supporting
obtaining
documentation. We also considered the
status of the exploration licences as it related
to
the minimum
expenditure of the tenements have been met.
tenure and whether
assessing
Considering and reviewing
the Group’s
intention to carry out significant exploration
and evaluation activity in the relevant are of
interest, including assessing the Group’s
cash-flow forecast models, discussions with
management and directors as
the
intentions and strategy of the Group.
to
Reviewing management’s evaluation and
judgement as to whether the exploration
activities within each relevant area of interest
have reached a stage where the commercial
viability of extracting the resource could be
determined.
Assessing the adequacy of the disclosures
included within the financial report.
34
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Share Based Payments
Refer to Note 2(o), 2(t) & 18
Share based payments represent $194,897
of the Group’s expenditure.
Our procedures included, amongst others:
Share based payments must be recorded at
fair value of the service provided, or in the
absence of such, at the fair value of the
underlying equity instrument granted.
Under Australian Accounting Standards,
equity settled awards are measured at fair
value on the measurement date taking into
consideration the probability of the vesting
conditions (if any) attached. This amount is
either
an
recognised
expense
immediately
there are no vesting
conditions, or over the vesting period if there
are vesting conditions.
as
if
In calculating the fair value there are a
number of judgements management must
make, including but not limited to:
• Estimating the likelihood that the
equity instruments will vest;
• Estimating expected future share
price volatility;
• Expected dividend yield; and
• Risk-free rate of interest.
Due to the significance to the Group’s
financial report and the level of judgment
involved in determining the valuation of the
share based payments, we consider the
Group’s calculation of the share based
payment expense to be a key audit matter.
Obtaining an understanding of the relevant
controls and evaluating the design and
implementation of the controls associated
with the preparation of the valuation model
used to assess the fair value of share based
payments, including those relating to volatility
the
of
appropriateness of
for
valuation.
security and
the model used
the underlying
and
assumptions
Critically evaluating and challenging the
of
methodology
management in their preparation of valuation
model, including management’s assessment
of likelihood of vesting, agreeing inputs to
internal and external sources of information
including but not limited to:
•Estimating the likelihood that the
equity instruments will vest;
•Estimating expected future share
price volatility;
•Expected dividend yield; and
•Risk-free rate of interest.
Assessing the Group’s accounting policy as
set out within Note 1(o) for compliance with
the requirements of AASB 2 Share-based
Payment.
Assessing the adequacy of the disclosures
included in the financial report.
35
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2021, but does
not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary to
enable the preparation of the financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the
Group to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole
is free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with the Australian Auditing Standards will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether
due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
36
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
• Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report,
including the disclosures, and whether the financial report represents the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the financial
report. We are responsible for the direction, supervision and performance of the
Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of
most significance in the audit of the financial report of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
37
METALICITY LIMITED
ABN 92 086 839 992
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
METALICITY LIMITED
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended
30 June 2021. In our opinion, the Remuneration Report of Metalicity 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.
PITCHER PARTNERS BA&A PTY LTD
J C PALMER
Executive Director
Perth, 30 September 2021
38
Directors’ declaration
In the Directors’ opinion:
1.
the financial statements and notes set out on pages 39 to 77 are in accordance with the Corporations
Act 2001, including:
(a)
(b)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable;
the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board; and
the audited remuneration disclosures set out on pages 23 to 28 of the Directors’ Report comply with
accounting standard AASB 124 Related Party Disclosures and the Corporations Regulations 2001.
2.
3.
4.
The Directors have been given the declarations required by Section 295(A) of the Corporations Act 2001
from the Chief Financial Officer and the Company Secretary for the year ended 30 June 2021.
This declaration is made in accordance with a resolution of the Directors.
Justin Barton
Chief Executive Officer and Finance Director
Perth, Western Australia
30 September 2021
39
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2021
Continuing operations
Other Income
Expenses
Loss from continuing operations before income tax
Income tax expense
Loss after income tax from continuing operations
Discontinued operations
Net loss from discontinued operations
Net Loss
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive loss for the period, net of tax
Note
4
5
6
12
Consolidated Group
2020
2021
$
$
635,052
(2,222,591)
(1,587,539)
-
(1,587,539)
570,882
(1,911,639)
(1,340,757)
-
(1,340,757)
(1,583,356)
(3,170,895)
-
(1,340,757)
-
49,098
49,098
-
(13,076)
(13,076)
Total comprehensive loss for the year
(3,121,797)
(1,353,833)
Loss attributable to:
Owners of the parent
Non-controlling interest
Loss attributable to equity holders of the parent entity:
Loss from continuing operations, net of tax
Loss from discontinued operations, net of tax
Loss attributable to non-controlling interest relates to:
Loss from continuing operations, net of tax
Loss from discontinued operations, net of tax
Total comprehensive loss attributable to:
Owners of the parent
Non-controlling interest
Total comprehensive loss attributable to equity holders of
the parent entity:
Total comprehensive loss from continuing operations, net of tax
Total comprehensive loss from discontinued operations, net of
tax
(2,875,403)
(295,492)
(3,170,895)
(1,274,669)
(66,088)
(1,340,757)
(1,670,048)
(1,205,355)
(2,875,403)
(1,274,669)
-
(1,274,669)
-
(295,492)
(295,492)
(66,088)
-
(66,088)
(2,819,748)
(302,049)
(3,121,797)
(1,301,384)
(52,449)
(1,353,833)
(1,614,393)
(1,301,384)
(1,205,355)
-
(2,819,748)
(1,301,384)
40
Consolidated statement of profit or loss and other comprehensive income
for the financial year ended 30 June 2021
Consolidated Group
2020
2021
$
$
Note
Total comprehensive loss attributable to non-controlling
interest relates to:
Total comprehensive loss from continuing operations, net of tax
Total comprehensive loss from discontinued operations, net of
tax
Loss per share from continuing operations attributable to
the equity holders of the parent entity:
Basic loss per share (cents
Diluted loss per share (cents)
Loss per share from discontinued operations attributable
to the equity holders of the parent entity:
Basic loss per share (cents
Diluted loss per share (cents)
Loss per share attributable to the equity holders of the
parent entity:
Basic loss per share (cents
Diluted loss per share (cents)
25(a)
25(a)
25(a)
25(a)
25(a)
25(a)
-
(52,449)
(302,049)
(302,049)
-
(52,449)
(0.10)
(0.10)
(0.09)
(0.09)
(0.19)
(0.19)
(0.17)
(0.17)
-
-
(0.17)
(0.17)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
41
Consolidated statement of Financial Position
for the financial year ended 30 June 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Assets held for sale
Total current assets
Non-current assets
Exploration and evaluation expenditure
Right of use asset
Plant & equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Shares to be issued
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Other reserves
Accumulated losses
Parent Entity Interest
Non Controlling Interest
Total equity
Note
7(a)
8
9
10
11
13
14
15
13
13
Consolidated Group
2020
2021
$
$
4,048,592
216,638
157,190
-
4,422,420
5,400,759
27,402
26,584
5,454,745
1,108,285
121,200
270,804
1,420,616
2,920,905
1,160,907
-
1,127
1,162,034
9,877,165
4,082,939
991,699
56,335
-
20,404
1,068,438
730,255
38,299
35,654
-
804,208
7,212
7,212
-
804,208
1,075,650
804,208
8,801,515
3,278,731
16(a)
56,023,942
5,485,343
(52,623,591)
48,568,493
4,240,556
(49,748,188)
26
8,885,694
(84,179)
3,060,861
217,870
8,801,515
3,278,731
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
42
Consolidated statement of changes in equity
for the financial year ended 30 June 2021
Issued
capital
$
Share
Based
Payments
Reserve
$
Other
Reserves
$
Foreign
Currency
Reserve
$
Accumulated
losses
Non
Controlling
Interest
$
$
Total
$
Balance at 1 July 2020
48,568,493
4,229,772
66,439
(55,655)
(49,748,188)
217,870
3,278,731
(Loss) for the year
Other comprehensive loss
Reclassification adjustment
transfer of foreign currency
translation reserve to profit
and loss
Total comprehensive loss for
the year
-
-
-
-
Issue of share capital
Conversion of options
8,000,000
818,423
Issue of performance rights
Issue of broker options
Issue of shares for tenements
Issue in lieu of salary
Issue costs
-
-
-
-
(1,362,974)
-
-
-
-
-
-
194,897
879,654
50,000
64,581
-
7,455,449
1,189,132
-
-
-
-
-
-
-
-
-
-
-
-
Balance at 30 June 2021
56,023,942
5,418,904
66,439
-
(2,875,403)
(295,492)
(3,170,895)
(26,856)
82,511
-
-
(6,557)
(33,413)
-
82,511
55,655
(2,875,403)
(302,049)
(3,121,797)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,000,000
818,423
194,897
879,654
50,000
64,581
(1,362,974)
8,644,581
(52,623,591)
(84,179)
8,801,515
Issued
capital
$
Share
Based
Payments
Reserve
$
Other
Reserve
s
$
Foreign
Currency
Reserve
$
Accumulated
losses
Non
Controlling
Interest
Total
$
$
$
46,955,647
4,563,534
1,500
(35,676)
(48,692,932)
-
2,792,073
-
(476,085)
-
6,736
219,413
46,955,647
4,087,449
1,500
(28,940)
(48,473,519)
249,936
249,936
-
2,792,073
Balance at 1 July 2019
Correction of error
Balance at 1 July 2019
(restated)
(Loss) for the year
Other comprehensive loss
Total comprehensive loss for
the year
-
-
-
-
-
-
-
-
64,939
-
-
-
(1,274,669)
(66,088)
(1,340,757)
(26,715)
(26,715)
-
13,639
(13,076)
(1,274,669)
(52,449)
(1,353,833)
-
-
-
-
-
-
-
-
-
-
-
-
-
20,383
-
20,383
1,968,133
162,706
64,939
-
(355,287)
1,840,491
Issue of share capital
1,968,133
Issue of options
Issue of employee rights
Movement due to increase in
NCI
Issue costs
-
-
-
(355,287)
1,612,846
-
162,706
-
(20,383)
-
142,323
64,939
Balance at 30 June 2020
48,568,493
4,229,772
66,439
(55,655)
(49,748,188)
217,870
3,278,731
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
43
Consolidated statement of cash flows
for the financial year ended 30 June 2021
Consolidated Group
2020
$
2021
$
Note
Cash flows from operating activities
Payments to suppliers and employees
Payments for exploration and evaluation
R&D Rebate
Lease income
Government stimulus
Interest received
Interest expense
Net cash used in operating activities
Cash flows from investing activities
Payment for exploration and in relation to tenements
Payments for acquisition of tenements
Payments for Plant and Equipment
Payments for applications
Proceeds from sale of shares
Proceeds from sale of royalty
Proceeds from sale of tenements
Payments for assets held for sale
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Proceeds from shares issued
Proceeds from option conversions
Proceeds from option conversions to be issued
Lease payments
Transaction costs
Net cash provided by financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of the
financial year
Effect of exchange rates on cash holdings in foreign
currencies
Cash and cash equivalents at the end of the
financial year
7(b)
(2,490,680)
(108,220)
88,851
-
72,870
1,727
12,264
(2,423,188)
(3,268,837)
(152,558)
(29,251)
(1,862)
459,340
-
-
-
(2,993,168)
8,000,000
848,872
33,894
(12,074)
(513,769)
8,356,923
(752,277)
-
22,937
16,572
1,040
-
(711,728)
(992,464)
-
-
-
78,872
200,000
64,870
-
(648,722)
1,927,709
36,257
35,654
-
(192,571)
1,807,049
2,940,567
446,599
1,108,285
666,560
(260)
(4,874)
7(a)
4,048,592
1,108,285
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
44
Notes to Financial Statements for the financial year ended 30 June 2021
1. General information
Metalicity Limited (“the Company”) is a company limited by shares, incorporated and domiciled in
Australia. Its shares are listed on the Australian Securities Exchange. The Company and its wholly
owned subsidiaries, Metalicity Energy Pty Ltd and KYM Mining Pty Ltd and its approximate 80.3%
interest in Kimberly Mining Limited, Kimberly Mining Australia Pty Ltd, Kimberly Mining Holdings Pty Ltd
and Ridgecape Holdings Pty Ltd, are referred to as the ‘Group’.
The Financial Report of the Company for the year ended 30 June 2021 was authorised for issue in
accordance with a resolution of the Board of Directors on 30 September 2021.
2.
Significant accounting policies
The principal accounting policies adopted in the preparation of the Financial Report are set out below.
These policies have been consistently applied to the years presented, unless otherwise stated.
(a) Basis of preparation
This general purpose Financial Report has been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board (AASB),
Australian Accounting Interpretations and the Corporations Act 2001 as appropriate for for-profit
oriented entities.
It is recommended that this financial report be read in conjunction with the public announcements made
by the Company during the year in accordance with the continuous disclosure requirements arising
under the ASX Listing Rules.
Compliance with IFRS
Australian Accounting Standards include Australian equivalents to International Financial Reporting
Standards (AIFRS). Compliance with AIFRS ensures that the Financial Report of the Group complies
with International Financial Reporting Standards (IFRS).
Historical cost convention
These financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of financial statements in conformity with AIFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgment in the process of applying
the Group’s accounting policies. Where these are areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements, these
are disclosed in Note 2(t).
Comparative figures
When required by accounting standards, comparative figures have been adjusted to conform to changes
in presentation for the current year. When the Group applies an accounting policy retrospectively, makes
a retrospective restatement or reclassifies items in its financial statements, a statement of financial
position as at the beginning of the earliest comparative period will be disclosed.
Going concern basis
The financial statements have been prepared on the going concern basis which contemplates the
continuity of normal business activity and the realisation of assets and the settlement of liabilities in the
normal course of business. For the year ended 30 June 2021 the Group incurred a loss after tax of
$3,170,895 (2020: $1,340,757) and a net cash outflow from operations of $2,423,188 (2020: $711,728).
At 30 June 2021, the Group has working capital surplus of $3,353,982 (2020: working capital of
$2,116,697) and current cash holding was $4,048,592 (2020: $1,108,285).
45
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(a) Basis of preparation (continued)
In the view of the Directors that the Group has sufficient funds to meet its commitments as and when
they fall due in the next 12 months. The Directors will continue to monitor case reserves and reduce
exploration and evaluation expenditure accordingly should the need arise.
On this basis no adjustments have been made to the financial report relating to the recoverability and
classification of the carrying amount of assets or the amount and classification of liabilities that might
be necessary should the Group not continue as a going concern. Accordingly, the financial report has
been prepared on a going concern basis.
The Directors have reviewed the business outlook and cash flow forecasts and are of the opinion that
the use of the going concern basis of accounting is appropriate as they believe the Group has raised
sufficient cash to continue operating beyond 12 months and will continue to raise further funds through
subsequent capital raisings and will meet its expenditure commitments as required.
(b) Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of subsidiaries of the
Company as at 30 June 2021 and the results of the subsidiaries for the year then ended.
Metalicity Energy Pty Ltd, KYM Mining Pty Ltd, Ridgecape Holdings Pty Ltd, Kimberly Mining Australia
Pty Ltd, Kimberly Mining Holdings Pty Ltd and Kimberly Mining Limited are the subsidiaries over which
the Company has the power to govern the financial and operating policies as the holder of all of the
voting rights. The subsidiaries are fully consolidated from the date of acquisition of the subsidiary.
Consolidation will cease from the date that control of the subsidiary ceases. Any and all intercompany
transactions and balances between the Company and the subsidiary are eliminated on consolidation.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-
controlling interest”. The Group initially recognises non-controlling interests that are present ownership
interest in subsidiaries and are entitled to a proportionate share of the subsidiary’s net assets on
liquidation at either fair value or the non-controlling interests’ proportionate share of the subsidiary’s net
assets. Subsequent to initial recognition, non-controlling interests are attributed their share of profit or
loss and each component of other comprehensive income. Non-controlling interests are shown
separately within the equity section of the statement of financial position and statement of
comprehensive income.
46
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(c) Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value which is calculated as the sum of the
acquisition-date fair values of assets less liabilities transferred to the Group, liabilities incurred by the
Group to the former owners of the acquiree and the equity instruments issued by the Group in exchange
for control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at
their fair value, except that:
• deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements
are recognised and measured in accordance with AASB 112 ‘Income Taxes’ and AASB 119
‘Employee Benefits’ respectively;
•
liabilities or equity instruments related to share-based payment arrangements of the acquiree or
share-based payment arrangements of the Group entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with AASB 2 ‘Share-based Payment’ at
the acquisition date; and
• Assets (or disposal groups) that are classified as held for sale in accordance with AASB 5
‘Noncurrent Assets Held for Sale and Discontinued Operations’ are measured in accordance with
that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in
the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and
the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable
assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount
of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held
interest.
(c) Business combinations
in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase
gain.
(d) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable.
Sale of Goods
Revenue from sale of goods in the course of ordinary activities is brought to account when
delivered to the customer and selling prices are known or can be reasonably estimated.
Government Tax Credits and Rebates
Government tax credits and rebates, inclusive of research and development tax credit, are
recognised as income at their fair value where there is a reasonable assurance that the grant or
rebate will be received and the Group will comply with all attached conditions.
Royalties Income
Revenue from the sale of Royalties rights accounted during the year due to disposal of royalties to third
party.
47
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(d) Revenue recognition (continued)
Interest Income
Interest revenue is recognised on a time proportionate basis using the effective interest method.
Sale of tenement income
Revenue from the sale of tenements accounted during the year due to disposal of tenements to third
party.
(e) Cash and Cash Equivalents
For statement of cash flow presentation purposes, cash and cash equivalents includes cash on hand,
deposits held at call with banks, other short-term highly liquid investments with original maturities of
three months or less, and bank overdrafts.
(f) Income Tax
The income tax expense or revenue for the period is the tax payable on a current period’s taxable
income based on the income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
Deferred tax is accounted for using the liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
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 is calculated at the tax rates that are expected to apply to the period when the asset is
realised or liability is settled. Deferred tax is credited in the income statement except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against
equity. Deferred income tax assets are recognised for deductible temporary differences and unused tax
losses only if it is probable that future taxable amounts will be available to utilise those temporary
differences and tax losses.
(g) Exploration Expenditure
Exploration and evaluation expenditure incurred on granted exploration licences is accumulated in
respect of each identifiable area of interest. These costs are carried forward where the rights to tenure
of the area of interest are current and 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 any abandoned area will be written off in full against profit in the year in which the
decision to abandon the area is made. When production commences, the accumulated costs for the
relevant area of interest will be amortised over the life of the area according to the rate of depletion of
the economically recoverable reserves. A regular review will be undertaken of each area of interest to
determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
(h) Trade and other receivables
Trade and other receivables are initially recognised at fair value and subsequently measured at
amortised costs using the effective interest method, less provision for impairment. Trade and other
receivables are generally receivable within 30 days. Collectability of trade receivables is reviewed on
an ongoing basis. Amounts that are known to be uncollectible are written off by reducing the carrying
amount directly.
48
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(i) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial year which are unpaid. The amounts are unsecured and usually paid within 30 days of
recognition.
(j) Borrowings
Loans are carried at their principal amounts, which represent the present value of future cash flows
associated with servicing the debt. Interest is accrued over the period it becomes due and is recorded
as part of other creditors.
(k) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction from the proceeds.
(l) Earnings per share
Basic earnings per share (“EPS”) is calculated by dividing the result attributable to equity holders of the
Company by the weighted number of shares outstanding during the year. Diluted EPS adjusts the
figures used in the calculation of basic EPS to take into account the after income tax effect of interest
and other financing costs associated with dilutive potential ordinary shares and the weighted average
number of shares assumed or known to have been issued in relation to dilutive potential ordinary shares.
(m) 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 flow on a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the taxation authority.
(n) Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have
been measured at the amounts expected to be paid when the liability is settled. Employee benefits
payable later than one year have been measured at the present value of the estimated future cash
outflows to be made for those benefits. Those cash flows are discounted using market yields on national
government bonds with terms to maturity that match the expected timing of cash flows. In calculating
the present value of future cash flows in respect of long service leave, the probability of long service
leave being taken is based on historical data.
49
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(o) Equity-Settled Compensation
The Group operates equity-settled share-based payment share and option schemes to Directors and
employees. The fair value of the equity to which Directors and employees become entitled is measured
at grant date and recognised as an expense over the vesting period, with a corresponding increase to
an equity account. The fair value of shares is ascertained as the market bid price. The fair value of
options is ascertained using a Binomial or Black and Scholes pricing model which incorporates all
market vesting conditions. The number of shares and options expected to vest is reviewed and adjusted
at each reporting date such that the amount recognised for services received as consideration for the
equity instruments granted shall be based on the number of equity instruments that eventually vest.
(p) Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instrument. Financial instruments (except for trade receivables)
are measured initially at fair value adjusted by transactions costs, except for those carried “at fair value
through profit or loss”, in which case transaction costs are expensed to profit or loss. Where available,
quoted prices in an active market are used to determine the fair value. In other circumstances, valuation
techniques are adopted. Subsequent measurement of financial assets and financial liabilities are
described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a
significant financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and all substantial risks and rewards are transferred. A financial
liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are
measured at the transaction price in accordance with AASB 15, all financial assets are initially measured
at fair value adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective
as hedging instruments, are classified into the following categories upon initial recognition:
▪ amortised cost;
▪
▪
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
▪ The contractual cash flow characteristics of the financial assets; and
▪ The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are
not designated as FVPL):
50
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(p) Financial Instruments (continued)
▪
▪
they are held within a business model whose objective is to hold the financial assets and collect
its contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash
equivalents, trade and most other receivables fall into this category of financial instruments.
The Group measures debt instruments at fair value through OCI if both of the following conditions are
met:
▪ The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding; and
▪ The financial asset is held within a business model with the objective of both holding to collect
contractual cash flows and selling the financial asset.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial
assets designated upon initial recognition at fair value through profit or loss, or financial assets
mandatorily required to be measured at fair value. Financial assets are classified as held for trading if
they are acquired for the purpose of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit
or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an
effective hedge, as appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction
costs unless the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are
recognised in profit or loss.
Impairment
The Group 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 Group applies the
simplified approach permitted by AASB, which requires expected lifetime losses to be recognised from
initial recognition of the receivables.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or
more valuation techniques to measure the fair value of the asset or liability. The Group selects a
valuation technique that is appropriate in the circumstances and for which sufficient data is available to
measure fair value. The availability of sufficient and relevant data primarily depends on the specific
characteristics of the asset or liability being measured. The valuation techniques selected by the Group
are consistent with one or more of the following valuation approaches:
51
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(p) Financial Instruments (continued)
• Market approach: valuation techniques that use prices and other relevant information generated
•
by market transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
• Cost approach: valuation techniques that reflect the current replacement cost of an asset at its
current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation
technique, the Group gives priority to those techniques that maximise the use of observable inputs and
minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly
available information on actual transactions) and reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable, whereas inputs for which
market data is not available and therefore are developed using the best information available about
such assumptions are considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an
input that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one
or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset
or liability is included in Level 2. If one or more significant inputs are not based on observable market
data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3)
or vice versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2)
or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair
value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event
or change in circumstances occurred.
52
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(q) Foreign Currency Transactions and Balances
The functional currency of each of the Group’s entities is measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are
presented in Australian dollars which is the parent entity’s functional currency. The functional currency
of Canadian subsidiary is Canadian Dollars. Other entities part of the Group operate in AUD.
Transaction and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end
exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange
rate at the date of the transaction. Non- monetary items measured at fair value are reported at the
exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except
where deferred in equity when the exchange difference arises on monetary items receivable from or
payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore
forming part of the net investment in the foreign operation).
Exchange differences arising on the translation of non-monetary items are recognised directly in other
comprehensive income to the extent that the underlying gain or loss is recognised in other
comprehensive income, otherwise the exchange difference is recognised in the profit or loss.
Group companies
The financial results and position of foreign operations whose functional currency is different from the
Group’s presentation currency are translated as follows:
— Assets and liabilities are translated at exchange rates prevailing at the end of the reporting period;
— Income and expenses are translated at average exchange rates for the period; and
— Retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations with functional currencies other than
the Australian dollar are recognised in other comprehensive income and included in the foreign currency
translation reserve in the statement of financial position. The cumulative amount of these differences is
reclassified into profit or loss in the period in which the operation is discontinued.
(r) Interests in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture
where unanimous decisions about relevant activities are required.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset
and exposures to each liability of the arrangement. The Group’s interests in the assets, liabilities,
revenue and expenses of the joint operations are included in the respective line items of the financial
statements. Information about the joint arrangements is set out in Note 11.
(s) Impairment of Non-financial Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For
the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows (cash generating units).
53
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(t) Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on
historical knowledge and best available current information. Estimates assumed a reasonable
expectation of future events and are based on current trends and economic data, obtained both
externally and within the Group.
Key Estimates – Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group
that may lead to an impairment of assets. Where an impairment trigger exists, the recoverable amount
of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts
incorporate a number of key estimates. This includes as assessment of the carrying values of
intangibles and capitalised exploration and evaluation costs
Key Estimates – Share based payment transactions
The Group measures the cost of equity-settled transactions with employees (including the Directors) by
reference to the fair value of the equity instruments at the date at which they are granted. The fair value
is determined by an internal valuation using a Monte Carlo option pricing model, using the assumptions
detailed in Note 16.
Key Estimates – Exploration expenditure
The write-off and carrying forward of exploration acquisition costs is based on an assessment of an area
of interest’s viability and/or the existence of economically recoverable reserves.
Key Estimates – Deferred taxation
Deferred tax assets in respect of tax losses have not been brought to account as it is not considered
probable that future taxable profits will be available against which they could be utilised.
(u) Application of new and revised Accounting Standards
Application of new and revised Accounting Standards effective
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the Australian Accounting Standards Board that are relevant to the Group and
effective for the current annual reporting period. It has been determined that there is no impact, material
or otherwise, of the new and revised Standards and Interpretations on the Group.
Application of new and revised Accounting Standards not yet effective
The Australian Accounting Standards Board (AASB) has issued a number of new and amended
Accounting Standards and Interpretations that have mandatory application dates for future reporting
periods, some of which are relevant to the Group. The Group has decided not to early adopt any of
these new and amended pronouncements. The Group’s assessment of the new and amended
pronouncements that are relevant to the Group but applicable in future reporting periods is set out
below.
54
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
AASB 2020-3 Amendments to Australian Standards – Annual Improvements 2018 – 2020 and Other
Amendments
AASB 2020-3 amends AASB 1 First-time Adoption of Australian Accounting Standards, AASB 3 Business
Combinations, AASB 9 Financial Instruments, AASB 116 Property, Plant and Equipment, AASB 137 Provisions,
Contingent Liabilities and Contingent Assets and AASB 141 Agriculture. The main amendments relate to:
(a) AASB 1 – simplifies the application by a subsidiary that becomes a first-time adopter after its parent in
relation to the measurement of cumulative translation differences;
(b) AASB 3 – updates references to the Conceptual Framework for Financial Reporting;
(c) AASB 9 – clarifies the fees an entity includes when assessing whether the terms of a new or modified
financial liability are substantially different from the terms of the original financial liability;
(u) Application of new and revised Accounting Standards not yet effective (continued)
AASB 2020-3 Amendments to Australian Standards – Annual Improvements 2018 – 2020 and Other
Amendments (continued)
(d) AASB 116 – requires an entity to recognise the sales proceeds from selling items produced while
preparing PP&E for its intended use and the related cost in profit or loss, instead of deducting the amounts
received from the cost of the asset;
(e) AASB 137 – specifies the costs that an entity includes when assessing whether a contract will be loss
making; and
(f)
AASB 141 – removes the requirement to exclude cash flows from taxation when measuring fair value,
thereby aligning the fair value measurement requirements in AASB 141 with those in other Australian
Accounting Standards.
AASB 2020-3 mandatorily applies to annual reporting periods commencing on or after 1 January 2022 and will
be first applied by the Group in the financial year commencing 1 July 2022.
“The likely impact of this accounting standard on the financial statements of the Group has not been
determined”
AASB 2014-10: Amendments to Australia Accounting Standards – Sale of Contribution of Assets between
an Investor and its Associate or Joint Venture, AASB 2015-10: Amendments to Australian Accounting
Standards – Effective Date of Amendments to AASB 10 and AASB 128 and AASB 2017-5: Amendments to
Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 and Editorial
Corrections
AASB 2014-10 amends AASB 10: Consolidated Financial Statements and AASB 128: Investments in
Associates and Joint Ventures to clarify the accounting for the sale or contribution of assets between an investor
and its associate or joint venture by requiring:
(g) a full gain or loss to be recognised when a transaction involves a business, whether it is housed in a
subsidiary or not; and
(h) a partial gain or loss to be recognised when a transaction involves assets that do not constitute a
business, even if these assets are housed in a subsidiary.
These amending standards mandatorily apply to annual reporting periods commencing on or after 1 January
2022 and will be first applied by the Group in the financial year commencing 1 July 2022.
“This accounting standard is not expected to have a material impact on the financial statements of the Group”
55
Notes to Financial Statements for the financial year ended 30 June 2021
2.
Significant accounting policies (continued)
(u) Application of new and revised Accounting Standards not yet effective (continued)
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current
or Non-Current, AASB 2020-6 Amendments to Australian Accounting Standards – Classification of
Liabilities as Current or Non-Current – Deferral of Effective Date
AASB 2020-1 amends AASB 101 Presentation of Financial Statements to clarify requirements for the
presentation of liabilities in the statement of financial position as current or non-current. It requires a liability to
be classified as current when entities do not have a substantive right to defer settlement at the end of the
reporting period.
AASB 2020-6 defers the mandatory effective date of amendments that were originally made in AASB 2020-1 so
that the amendments are required to be applied for annual reporting periods beginning on or after 1 January
2023 instead of 1 January 2022. They will first be applied by the Group in the financial year commencing 1 July
2023.
“The likely impact of this accounting standard on the financial statements of the Group has not been
determined”
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
AASB 2020-1 amends AASB 7 Financial Instruments: Disclosures, AASB 101 Presentation of Financial
Statements, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 134 Interim
Financial Reporting and AASB Practice Statement 2 Making Materiality Judgements. The main amendments
relate to:
(a) AASB 7 – clarifies that information about measurement bases for financial instruments is expected to be
material to an entity’s financial statements;
(b) AASB 101 – requires entities to disclose their material accounting policy information rather than their
significant accounting policies;
(c) AASB 108 – clarifies how entities should distinguish changes in accounting policies and changes in
accounting estimates;
(d) AASB 134 – to identify material accounting policy information as a component of a complete set of financial
statements; and
(e) AASB Practice Statement 2 – to provide guidance on how to apply the concept of materiality to accounting
policy disclosures.
AASB 2021-2 mandatorily applies to annual reporting periods commencing on or after 1 January 2023 and will
be first applied by the Group in the financial year commencing 1 July 2023.
“The likely impact of this accounting standard on the financial statements of the Group has not been
determined”
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material
impact on the entity in the current or future reporting periods and on foreseeable future transactions.
56
Notes to Financial Statements for the financial year ended 30 June 2021
3.
Segment information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and
used by the Board of Directors (chief operating decision makers) in assessing performance and
determining the allocation of resources.
The Group has two geographic segment being Australia and Canada and operates in one industry being
the exploration of minerals.
Segment result
Segment revenue
Australia
Canada
Segment expenses
Australia
Canada
Income tax
(Loss) after tax
Consolidated
30 June
2021
$
635,052
-
635,052
30 June
2020
$
570,882
-
570,882
(2,222,591)
(1,583,356)
(3,805,947)
(1,466,170)
(445,469)
(1,911,639)
-
(3,170,895)
-
(1,340,757)
Segment assets and
liabilities
Consolidated
Consolidated
Non-current assets
Non-current liabilities
Australia
Canada
Australia
Canada
30 June
2021
$
5,560,667
-
5,560,667
30 June
2020
$
1,162,034
-
1,162,034
30 June
2021
$
30 June
2020
$
7,212
-
7,212
-
-
-
Total assets
Total liabilities
30 June
2021
$
9,877,165
-
9,877,165
30 June
2020
$
2,641,202
1,441,737
4,082,939
30 June
2021
$
1,075,650
-
1,075,650
30 June
2020
$
804,208
-
804,208
57
Notes to Financial Statements for the financial year ended 30 June 2021
4.
Other Income
An analysis of the Group’s other income for the year is as follows:
Consolidated Group
Profit from sale of shares
R&D Rebate
Government stimulus
Joint arrangement
management fee
Finance income
Sale of Royalty
Gain on revaluation of shares
Lease Income
Foreign exchange gain
Sale of tenements
Other
5. Expenses
Accounting & audit
ASX
Company secretarial fees
Consulting fees
Depreciation
Employee benefits
Exploration written-off
Investor relations
KML costs
Legal fees
Project work & generation - cash
Rent & office costs
Share based payments
Share registry fees
Superannuation costs
Impairment of assets held for sale
Loss on financial asset at fair value through
profit or loss
Other
Total expenses
2021
$
459,340
88,851
72,870
12,264
1,727
-
-
-
-
-
-
635,051
2020
$
4,795
-
16,572
-
1,040
200,000
233,833
22,937
4,874
64,870
21,961
570,882
Consolidated Group
2021
$
128,227
100,453
99,356
80,000
16,082
574,511
14,901
42,620
-
323,467
119,069
13,618
194,897
121,001
58,804
-
205,052
2020
$
38,974
34,409
52,000
72,129
63
396,768
124,795
50,873
166,086
170,333
91,179
157,190
64,939
39,823
37,604
279,383
-
130,533
2,222,591
135,091
1,911,639
58
Notes to Financial Statements for the financial year ended 30 June 2021
6.
Income tax expense
a) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
Loss from discontinued operations before income tax expense
Tax at the Australian tax rate of 26% (2020: 27.5%)
Tax effect of amounts which are not deductible in calculating
taxable income
Tax effect of amounts which are non (taxable) in calculating
taxable income
Tax losses not recognised
Prior year losses not recognised, now recognised
Consolidated Group
2020
$
2021
$
(1,587,539)
(1,583,356)
(3,170,895)
(1,340,757)
-
(1,340,757)
(824,433)
51,086
(29,738)
803,084
-
(368,708)
59,583
(368,055)
677,180
-
Income tax expense
-
-
b) Deferred tax assets/liabilities
Unused tax losses for which no deferred tax asset has been
recognised
Temporary Differences
Potential tax benefit at 26% (2020: 26%)
Consolidated Group
2020
$
2021
$
17,962,328
10,293,144
(4,705,141)
3,446,869
(2,462,008)
2,036,095
Tax losses and other temporary differences have not been recognised as a deferred tax asset as
recoupment is dependent on, amongst other matters, sufficient future assessable income being earned.
That is not considered certain in the foreseeable future and accordingly there is uncertainty that the
losses can be utilised. There is a net deferred tax liability of approximately $1,223,337 relating to
capitalised exploration costs and other minor temporary differences. These are offset with the deferred
tax assets that have been recognised to the extent of the deferred tax liabilities.
7. Cash and cash equivalents
(a) Reconciliation of cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and
in banks and investments in money market instruments. Cash and cash equivalents at the end of the
financial year as shown in the consolidated statement of cash flows are reconciled to the related items
in the consolidated statement of financial position as follows:
Cash and cash equivalents
Consolidated Group
2020
2021
$
$
4,048,592
1,108,285
59
Notes to Financial Statements for the financial year ended 30 June 2021
7. Cash and cash equivalents (continued)
(b) Reconciliation of loss for the year to net cash flows from operating activities
Loss for the year
Share based payments
Foreign exchange loss/(gain)
Depreciation
Disposal of Shares
Exploration written-off
Loss/(Gain) on revaluation
Gain on sale of listed securities
Impairment of asset held for sale
Gain on sale of shares
(Increase) in trade and other receivables and other asset
Increase in trade and other payables
(Decrease)/increase in provisions
Exchange differences on translation of foreign operations
Net cash (used in) operating activities
(c) Non-cash investing and financing activities
(3,170,895)
194,897
(139,075)
16,082
(459,340)
14,901
205,052
-
1,392,626
-
(80,954)
(525,019)
18,036
110,501
(2,423,188)
(1,340,757)
64,939
(4,874)
63
-
124,795
(233,833)
(4,795)
279,383
-
(44,477)
431,599
16,229
-
(711,728)
2,615,837 shares amounting to $50,000 was issued as payment for tenement E40/350 and E40/357
for exercise of Mulga Plum option.
8.
Trade and other receivables
GST Receivable
JV contributions
Other
Shares to be issued
None of these receivables are past due or impaired.
9. Other assets
Tenement applications and deposits
Prepayments
Rental security
Shares held for sale(1)
Consolidated Group
2020
2021
$
$
66,300
129,365
-
66,101
-
21,172
54,900
-
121,200
216,638
Consolidated Group
2020
2021
$
$
-
29,782
21,486
105,922
157,190
9,558
-
271
260,975
270,804
(1)The Group held 4,073,941 shares in NEX Metals Explorations Limited. This financial asset is carried at fair
value through profit and loss for year ended 30 June 2021.
60
Notes to Financial Statements for the financial year ended 30 June 2021
10. Current Assets Held for Sale
Assets Held for sale
Balance at beginning of the period
Impairment of Assets Held for Sale1
Sale of tenements
Foreign exchange difference
Balance of assets held for sale
Liabilities Related to Non-Current Assets Held for Sale
Balance at beginning of the period
Translation difference
Settlement of liability
Balance at period end
Consolidated Group
2020
2021
$
$
1,420,616
(1,399,418)
-
(21,198)
-
2,734,940
(279,383)
(1,034,941)
-
1,420,616
Consolidated Group
2020
2021
$
$
-
-
-
1,034,941
-
(1,034,941)
-
1During the financial year ended 30 June 2021, the Directors decided to impair the carrying value of the Admiral
Bay Project to nil, following an extensive process to divest the project which resulted in no offers.
11. Exploration and evaluation expenditure
Exploration at cost at the beginning of the period
Acquisition costs
Expenditure incurred
Impairment of exploration
expenditure
Joint arrangement interest^
Tenements sold
Closing balance
Consolidated Group
2020
2021
$
$
204,133
10,000
1,071,569
1,160,907
202,558
3,983,397
(14,901)
(124,795)
68,798
-
5,400,759
-
-
1,160,907
Total expenditure incurred and carried forward in respect of specific projects
- Kookynie/Yundamindra Area of interests
Assets
- Other
Total carried forward exploration expenditure
5,400,759
-
5,400,759
1,152,449
8,458
1,160,907
^ On 6 May 2019, The Company announced that it has entered into a farm-in agreement with Nex Metals
Exploration Ltd (“NME”) for the Kookynie and Yundamindra projects in the Eastern Goldfields, Western
Australia. On 20 May 2021, MCT announced that it has been achieved the required $5 million spend to achieve a
51% earn-in on the Kookynie and Yundamindra tenements. The Joint arrangement is classified as a joint operation.
The Group’s share of assets in the Joint arrangement is $68,798 as at 30 June 2021.
The recoverability of the carrying amount of the exploration development expenditure is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective areas of interest.
61
Notes to Financial Statements for the financial year ended 30 June 2021
12. Discontinued operations
Kimberley Mining Limited – Admiral Bay Project
Transfer of foreign currency translation reserve to profit and
loss (discontinued operation)
Consolidated Group
2020
2021
$
$
1,500,845
82,511
1,583,356
During the financial year end 30 June 2021, following an extensive process to divest the Admiral Bay project,
which is currently held by the ~80% owned subsidiary, Kimberley Mining Limited, the Board elected to put the
Admiral Bay project on care and maintenance and impair the carrying value of the Project to nil.
(i) Financial performance information
Exploration expenses written off
Impairment of exploration and expenditure assets
Loss on transfer of foreign currency translation reserve
Others
Income tax expense
Loss after income tax of discontinued operations
(ii) Cash flow information
Net cash used in operating activities
Net cash used in investing activities
Net cash used in financing activities
Net cash outflow
(iii) Carrying amount of assets and liabilities
Other receivables
Asset classified as held for sale
Liabilities held for sale
Net liabilities attributable to discontinued operations
Consolidated Group
2020
2021
$
$
(105,699)
(1,392,626)
(82,511)
(2,520)
(1,583,356)
-
(1,583,356)
Consolidated Group
2020
2021
$
$
(106,790)
-
-
(106,790)
Consolidated Group
2020
2021
$
$
21,083
21,083
(448,642)
(427,559)
62
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes to Financial Statements for the financial year ended 30 June 2021
13. Leases
(a) Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
Right of use asset
Building – at initial recognition
Less: Accumulated depreciation
Lease liability
Current
Non-current
Consolidated Group
2020
2021
$
$
39,689
(12,287)
27,402
20,404
7,212
27,616
(b) Amounts recognised in the statement of profit and loss
The statement of profit or loss shows the following amounts relating to leases:
Depreciation charge of right of use assets
Building
Interest expense
Consolidated Group
2020
2021
$
$
(12,287)
(12,287)
760
(c) The Group’s leasing activities and how these are accounted for
The Group leases an office premises which has a 2 year fixed term commencing on 16 November
2020, with an option to extend.
Contracts contain both lease and non-lease components. The Group allocates the consideration in
the contract to the lease and non-lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants other than the security interests in
the leased assets that are held by the lessor. Lease assets may not be used as security for
borrowing purposes.
The weighted average incremental borrowing rate applied in the calculation of the initial carrying
amount of lease liabilities was 3%.
-
-
-
-
-
-
-
-
-
63
Notes to Financial Statements for the financial year ended 30 June 2021
14. Trade and other payables
Trade payables and accruals
PAYG payable
15. Provisions
Consolidated Group
2020
2021
$
$
969,031
22,668
991,699
730,255
-
730,255
Consolidated Group
2020
2021
$
$
Employee benefits – annual leave
56,335
38,299
16.
Issued capital
(a)
Issued share capital
2,124,777,033(2020: 1,397,793,904) fully paid ordinary shares
56,023,942
48,568,493
2021
$
2020
$
(b) Movement in ordinary share capital
Date
Details
14/08/2020
08/09/2020
11/09/2020
01/07/2020
15/07/2020
15/07/2020
15/07/2020
15/07/2020
14/08/2020
Opening balance
Option exercise at $0.015
Option exercise at $0.025
Option exercise at $0.02
Option exercise at $0.004
Vesting and exercise of performance rights (note 17)
Shares issued to Directors in lieu of salaries at $0.0027
per share
Vesting and exercise of performance rights (note 17)
Share placement at $0.0024
Shares issued as part of consideration for tenement
acquisition at $0.019 per share
Option exercise at $0.004
10/02/2021
Option exercise at $0.004
08/03/2021
07/05/2021
Option exercise at $0.004
17/05//2021 Option exercise at $0.004
Option exercise at $0.004
02/06/2021
Option exercise at $0.004
16/06/2021
Share placement at $0.01
22/06/2021
Share issue costs
Balance at the end of the year
30/06/2021
03/12/2020
Number of
shares
1,397,793,904
4,888,439
2,500,000
471,429
87,772,592
15,000,000
23,882,240
1,000,000
208,333,333
2,615,837
22,736,481
130,000
5,166,667
17,523,149
1,250,000
33,712,962
300,000,000
-
2,124,777,033
$
48,568,493
73,327
62,500
9,428
351,090
-
-
-
5,000,000
-
90,946
520
20,667
70,093
5,000
134,852
3,000,000
(1,362,974)
56,023,942
64
Notes to Financial Statements for the financial year ended 30 June 2021
16.
Issued capital
(b) Movement in ordinary share capital (continued)
Date
Details
01/07/2019
12/09/2019
4/10/2019
18/10/2019
14/02/2020
22/05/2020
22/05/2020
15/06/2020
29/06/2020
30/06/2020
Opening balance
Share placement at $0.06
Share placement at $0.06
Share placement at $0.06
Share placement at $0.006
Entitlement issue at $0.002
Share placement at $0.002
Conversion of options at $0.004
Conversion of options at $0.004
Issue costs*
Balance at the end of the year
Number of
shares
624,422,474
19,966,668
33,843,825
44,976,970
2,027,777
483,491,811
180,000,000
8,104,170
960,209
-
1,397,793,904
$
46,955,647
119,800
203,063
269,861
12,167
966,985
360,000
32,416
3,841
(355,287)
48,568,493
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. On a poll every holder of ordinary shares present
at a meeting in person or by proxy is entitled to one vote.
*Included in issue costs $162,706 of which relates to options to be issued to brokers.
17.
Options, Performance Rights and Warrants
Options
At year end 30 June 2021, the Company had 373,665,570 options over ordinary shares under issue (30
June 2020: 347,689,002). These options are exercisable as follows:
Details
Management Incentive Options
Other Options
No of
Options
2,500,000
2,500,000
2,500,000
2,000,000
2,000,000
25,709,467
10,785,715
25,000,000
35,000,000
21,000,000
244,670,388
373,665,570
Grant Date
Date of Expiry Conversion Price $
27/07/2018
27/07/2018
27/07/2018
10/04/2019
10/04/2019
21/02/2018
10/06/2019
13/08/2020
12/10/2020
21/06/2021
22/05/2020
26/08/2021
26/08/2021
26/08/2021
14/01/2022
14/01/2022
14/02/2023
31/05/2022
14/08/2022
13/10/2023
22/06/2024
22/05/2022
0.06
0.08
0.10
0.025
0.035
0.08
0.02
0.003
0.03
0.015
0.004
The weighted average exercise price of the above options is $0.012 (2020: $0.021)
Balance at beginning of the year
Granted during the year (see note 18)
Exercised during the year
Forfeited/expired/cancelled during the year
Balance at the end of the year
2021
No.
347,689,002
258,500,000
(176,151,719)
(56,371,713)
373,665,570
2020
No.
175,538,837
261,770,100
(9,064,379)
(80,555,556)
347,689,002
65
Notes to Financial Statements for the financial year ended 30 June 2021
17.
Options, Performance Rights and Warrants (continued)
Performance Rights
At year end 30 June 2021, the Company had 82,084,110 performance rights over ordinary shares under
issue (30 June 2020: 32,025,000). These performance rights are exercisable as follows:
Details
Performance Rights
No of
Options
15,625,000
29,679,144
36,754,966
82,084,110
Grant Date
Date of Expiry Hurdle Price $
25/11/2019
26/11/2020
26/11/2020
30/01/2023
26/11/2022
26/11/2022
0.05
0.04
0.06
Balance at beginning of the year
Prior year adjustment1
Granted during the year (Refer 18(a))
Exercised during the year
Forfeited/expired/cancelled during the year
Balance at the end of the year
1Prior year closing balance excluded 25,000 performance rights.
Kimberly Mining Limited Warrants
2021
No.
32,025,000
25,000
66,434,110
(16,000,000)
(400,000)
82,084,110
2020
No.
2,274,713
-
31,625,000
-
(1,874,713)
32,025,000
As at 30 June 2021, there were 31,128,738 in issued common shares in Kimberly Mining Limited and
8,461,000 under warrants (30 June 2020: 31,128,738 common shares and 8,734,370 warrants). These
warrants are exercisable/convertible as follows:
Details
Special Warrants
Special Warrants – Tranche 2
No of Warrants Date of Expiry
5,289,500
3,171,500
8,461,000
23/08/2023
23/09/2023
Conversion Price $
0.4
0.4
Special warrants and broker warrants are convertible to 1 ordinary share in Kimberly Mining Limited
upon exercise.
Balance at beginning of the period
Granted during the period
Exercised during the period
Forfeited/expired during the period
Balance at the end of the period
30 June
2021
No.
8,734,370
-
-
(273,370)
8,461,000
30 June
2020
No.
8,734,370
-
-
-
8,734,370
Capital Management
Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio,
generate long-term shareholder value and ensure that the Group can fund its operations and continue
as a going concern. The Group’s debt and capital include ordinary share capital and financial liabilities,
supported by financial assets.
66
Notes to Financial Statements for the financial year ended 30 June 2021
17.
Options, Performance Rights and Warrants (continued)
The Group is not subject to any externally imposed capital requirements. Management effectively
manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure
in response to changes in these risks and in the market. These responses include the management of
debt levels, distributions to shareholders and share issues.
18.
Share Based Payments
(a) Share-based payment reserve
Shared based payment reserve
Foreign currency translation reserve
Total
Movement of Shared based payment reserve
Consolidated
2020
$
4,229,772
2021
$
5,418,904
-
5,418,904
(55,655)
4,174,117
30 June
2021
$
4,229,772
50,000
64,581
879,654
194,897
5,418,904
Balance at beginning of the period
Issue of shares for tenements (note 7 c)
Issue of shares in lieu of salary^
Issue of options (note 18 b (ii))
Issue of employee rights (note 18 b (i))
Balance at the end of the period
^23,882,240 shares were issued to Directors in lieu of salaries at $0.0027 per share, total amounting to $64,581. Refer to
remuneration report page 24 for details.
Movement of Foreign currency translation
reserve
Balance at beginning of the period
Foreign currency translation reserve movement
during the period
Transfer of foreign currency translation reserve to
profit and loss (discontinued operation)
Balance at the end of the period
30 June
2021
$
(55,655)
(26,856)
82,511
-
67
Notes to Financial Statements for the financial year ended 30 June 2021
18.
Share Based Payments (continued)
The following option and performance right arrangements were issued during the current and prior
reporting periods:
30 June 2021
Options/Performance
Rights
Number
Grant
Date
Expiry
Date
Exercise
Price
Options
Issued 17/08/2020
Issued 13/10/2020
Issued 22/06/2021
Performance rights
Issued 18/12/2020(1)
Issued 18/12/2020(2)
25,000,000
35,000,000
21,000,000
81,000,000
29,679,144
36,754,966
66,434,110
13/08/2020
15/09/2020
22/06/2021
14/08/2022
13/09/2023
21/06/2024
0.003
0.003
0.015
26/11/2020
26/11/2020
18/12/2022
18/12/2022
0.00
0.00
$0.0108
$0.0092
Fair Value
at Grant
Date
$0.0065
$0.0206
$0.00756
Free attaching options
Number
Grant
Date
Expiry
Date
22/05/2022
Exercise
Price
Fair Value at
Grant Date
Issued 20/08/2020
^No fair value attributable to these options as these were listed options issued during the year as free attaching to share
placement.
177,500,000 13/08/2020
0.004 $0.00^
(1)Performance rights, with zero exercise price, were granted to employees on 26 November 2020, which vest when the 20
day VWAP of the share price of the Company exceeds $0.04.
(2)Performance rights, with zero exercise price, were granted to employees on 26 November 2020, which vest when the 20
day VWAP of the share price of the Company exceeds $0.06.
30 June 2020
Options/Performance
Rights
Number
Grant
Date
Expiry
Date
Exercise
Price
Free attaching Options^
Issued 12/09/2019
Issued 04/10/2019
Issued 18/10/2019
Issued 14/02/2020
Issued 10/04/2019
Performance rights
Issued 14/01/2020
Issued 14/01/2020
3,993,333
6,768,765
8,995,430
266,667
241,745,905
261,770,100
16,000,000
15,625,000
31,625,000
09/09/2019
04/10/2019
18/10/2019
14/02/2020
22/05/2020
09/09/2020
04/10/2020
18/10/2020
18/10/2020
22/05/2022
0.015
0.015
0.015
0.015
0.004
Fair Value
at Grant
Date
$0.00
$0.00
$0.00
$0.00
$0.00
25/11/2019
25/11/2019
30/01/2023
30/01/2023
0.00
0.00
$0.00245
$0.00164
^No fair value attributable to these options as these were listed options issued during the year as free attaching to share
placement.
68
Notes to Financial Statements for the financial year ended 30 June 2021
18.
(b)
Share Based Payments (continued)
Types of share-based payment plans
(i)
There were $194,897 share based payments relating to performance rights in 2021 (2020: $64,939).
Performance rights
The following tables lists the inputs to the Monte Carlo model used to value the performance rights
issued during the financial year:
30 June 2021
No of Performance Rights
29,679,144
36,754,966
Grant date
Share price
Exercise price
Risk-free interest rate
Vesting Conditions and Period
Expiry date
Volatility
Fair value at grant date (cents)
Useful life
30 June 2020
26/11/20
$0.017
$0.00
0.09%
If 20 day VWAP exceeds
$0.04
26/11/22
123%
0.0108
730 days
26/11/20
$0.017
$0.00
0.09%
If 20 day VWAP exceeds
$0.06
26/11/22
123%
0.0092
730 days
No of Performance Rights
16,000,000
15,625,000
Grant date
Share price
Exercise price
Risk-free interest rate
Vesting Conditions and Period
Expiry date
Volatility
Fair value at grant date (cents)
Useful life
25/11/19
$0.004
$0.00
0.765%
If 20 day VWAP exceeds
$0.025
30/01/23
138%
0.00246
1,162 days
25/11/19
$0.004
$0.00
0.765%
If 20 day VWAP exceeds
$0.05
30/01/23
138%
0.00164
1,162 days
69
Notes to Financial Statements for the financial year ended 30 June 2021
18.
Share Based Payments (continued)
(b)
(ii) Options
Types of share-based payment plans (continued)
The 35,000,000 option issued to advisors during the year ended 30 June 2021 have been valued
applying a Black Scholes model, $720,980 is fully recognised directly in equity as transaction costs
during the financial year ended, with the following inputs.
The 21,000,000 option issued to advisors during the year ended 30 June 2021 have been valued
applying a Black Scholes model, $158,674 is fully recognised directly in equity as transaction costs
during the financial year ended, with the following inputs.
30 June 2021
No of Options
Grant date
Share price
Exercise price
Risk-free interest rate
Vesting Conditions and Period
Expiry date
Volatility
Fair value at grant date (cents)
35,000,000
21,000,000
15/09/20
$0.026
$0.03
0.23%
Nil
13/10/2023
147.5%
0.0206
22/06/21
$0.01
$0.015
0.14%
Nil
21/06/24
143%
0.00756
30 June 2020
The 25,000,000 option was accounted for during the year ended 30 June 2020. $162,706 was fully
recognised directly in equity in 30 June 2020 as transactions costs which relates to options to be issued
to brokers, who completed capital raising during the prior year, with the following inputs.
No of Options
Grant date
Share price
Exercise price
Risk-free interest rate
Vesting Conditions and Period
Expiry date
Volatility
Fair value at grant date (cents)
25,000,000
13/08/20
$0.003
$0.003
0.23%
Nil
14/08/22
176%
0.0065
No fair value is attributable to any other options issued in the prior year as all other options were either
free attaching options issued in relation to the Placement and Entitlement issues during each year or
were listed options issued during the years.
70
Notes to Financial Statements for the financial year ended 30 June 2021
18.
Share Based Payments (continued)
Summary of share based payment options granted
(c)
The following table illustrates the number and weighted average exercise price (WAEP) of, and
movements in, share options issued during the year:
2021
No
2021
WAEP
Outstanding at the beginning of the year
Granted during the year
Exercised during the year
347,689,002
258,500,000
(176,151,719)
Expired/forfeited/cancelled during the year
(56,371,759)
Outstanding at the end of the year
373,665,524
0.021
0.005
0.005
0.046
0.012
2020
2020
No WAEP
175,538,837
0.062
261,770,100
0.0048
(9,064,379)
(80,555,556)
347,689,002
0.004
0.058
0.021
(d) Weighted average of remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 30 June 2021
is 1.48 years (2020: 1.48 years).
The weighted average remaining contractual life for the performance rights outstanding as at 30 June
2021 is 1.21 years (2020: 1.49 years)
Range of exercise price
(e)
The range of exercise prices for options outstanding at the end of the year was $0.003-$0.10 (2020:
$0.015-$0.02).
The performance rights do not have an exercise price.
Weighted average fair value
(f)
The weighted average fair value of options granted during the year, excluding free attaching options,
was $0.0129 (2020: Nil).
The weighted average fair value of performance rights granted during the year was $0.0108 (2020:
Nil)
(g)
The following options were exercised during the year.
Share options exercised during the year
2021
Option Series
Number
Issued 22/05/2020
Issued 18/10/2019
Issued 10/06/2019
Issued 02/07/2015
168,291,851
4,888,439
471,429
2,500,000
176,151,719
Grant
Date
Expiry
Date
Exercise
Price
22/05/2020
18/10/2019
10/06/2019
02/07/2015
22/05/2022
18/10/2020
31/05/2022
23/07/2020
$0.004
$0.015
$0.02
$0.025
Fair Value
at Grant
Date
0.004
0.001
0.001
0.00568
71
Notes to Financial Statements for the financial year ended 30 June 2021
Share Based Payments (continued)
Share options exercised during the year (continued)
18.
(g)
2020
Option Series
Number
Grant
Date
Expiry
Date
Exercise
Price
Issued 22/05/2020
$0.004
1 No fair value attributable to these options as these were issued as free attaching to share placement.
22/05/2020
22/05/2022
9,064,379
Fair Value
at Grant
Date
0.004
19. Financial Risk Management
Risk management is the role and responsibility of the Board. The Group's current activities expose it to
minimal risk. However, as activities increase there may be exposure to interest rate, market, credit, and
liquidity risks.
Interest Rate Risk
(a)
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will
fluctuate as a result of changes in market rates and the effective weighted average interest rates on
classes of financial assets and financial liabilities, is as follows:
Floating
interest
rate
1 year
or
less
Over 1
year to
5 years
More
than 5
years
Non
interest
bearing
Total
$
$
$
$
$
$
30 June 2021
Financial Assets
Cash and deposits
Trade and other receivables
Rental Security
Weighted average interest
rate
Financial liabilities
Trade and other payables
30 June 2020
Financial Assets
Cash and deposits
Trade and other receivables
Rental Security
Weighted average interest
rate
Financial liabilities
Trade and other payables
3,982,650
-
3,982,650
0.05%
-
-
1,078,677
-
1,078,677
0.40%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
65,942
216,638
21,486
304,066
4,048,592
216,638
21,486
4,286,716
0.05%
944,381
944,381
944,381
944,381
29,608
121,200
271
151,079
1,108,285
121,200
271
1,229,756
0.35%
730,255
730,255
730,255
730,255
72
Notes to Financial Statements for the financial year ended 30 June 2021
19. Financial Risk Management (continued)
(a)
Interest Rate Risk (continued)
The Group has interest bearing assets and therefore income and operating cash flows are subject to
changes in the market rates. However, market changes in interest rates will not have a material impact
on the profitability or operating cash flows of the Group. A movement in interest rates of +/- 100 basis
points will result in less than a +/- $39,826 (2020: $10,786) impact on the Group’s income and operating
cash flows. At this time, no detailed sensitivity analysis is undertaken by the Group.
(b) Market risk
The Group’s listed investments are susceptible to market risk arising from uncertainties about its fair
value. This risk is managed by investing decisions conducted by the Board. The Group held 4,073,941
shares in NEX Metals Explorations Limited valued at $105,922 as at 30 June 2021 (2020: $260,975).
This is a level 1 measurement in accordance with the AASB 13 Fair Value hierarchy.
Sensitivity analysis
If share prices were to increase/decrease by 100 basis points from share price used to determine fair
values as at the reporting date, assuming all other variables that might impact on fair value remain
constant, then the impact on profit for the year and equity is as follows:
+/- 100 basis points
Impact on profit/(loss) after tax
Impact on equity
2021
$
10,592
(10,592)
Consolidated
2020
$
26,097
(26,097)
(c) Credit risk
The Group has no significant concentrations of credit risk and as such, no sensitivity analysis is
prepared by the Group. Credit risk related to balances with banks is managed by ensuring that the
surplus funds are only invested with counterparties with a Standard & Poor’s rating of at least AA-.
None of the Group’s trade and other receivables are past due (2020: nil). As at 30 June 2021, the
Group does not have any collective impairment on its other receivables (2020: nil).
(d) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash to meet commitments as and
when they fall due. The Group manages liquidity risk by preparing forecasts and monitoring actual cash
flows and requirements for future capital raisings. The Group does not have committed credit lines
available, which is appropriate given the nature of its operations. Surplus funds are invested in a cash
management account with ANZ which is available as required.
The material liquidity risk for the Group is the ability to raise equity in the future.
The table below reflects an undiscounted contractual maturity analysis for financial liabilities. Cash flows
realised from financial assets reflects management’s expectation as to the timing of realisation. Actual
timing may therefore differ from that disclosed.
73
Notes to Financial Statements for the financial year ended 30 June 2021
19. Financial Risk Management (continued)
(d) Liquidity risk (continued)
Within 1 Year
1 to 5 Years
Total
2021
2020
2021
$
$
$
2020
$
$
2021
2020
$
Financial liabilities due for
payment.
Trade and other payables
944,381
730,255
Lease liabilities
Total expected outflows
Financial asset - cash
flows realisable
Cash and cash equivalent
Trade, term and loan
receivables
Investments - financial
assets at amortised cost
Rental Security
Total anticipated inflows
Net (outflow)/inflow on
financial instruments
20,404
-
964,785
730,255
4,048,592
1,108,285
216,638
121,200
105,992
2,620,975
21,486
271
4,392,708
3,850,731
-
7,212
7,212
-
-
-
-
-
3,427,923
3,120,476
(7,212)
-
-
-
-
-
-
-
-
-
944,381
730,255
27,616
-
971,997
730,255
4,048,592
1,108,285
216,638
121,200
105,992
2,620,975
21,486
271
4,392,708
3,850,731
3,420,711
3,120,476
(e) Effective interest rate and repricing analysis
Cash and cash equivalents are the only interest bearing financial instruments of the Group.
(f) Currency risk
Currency risk arises from investments that are denominated in a currency other than the respective
functional currencies of Group entities.
The Group is exposed to foreign currency risk in the form of financial instruments held in US Dollars
(USD). The Group’s exposure to foreign currency risk at the end of the reporting period, expressed in
Australian dollars, was as follows:
Cash and cash equivalents
Total Exposure
2021
USD$
2020
USD$
521
521
660
660
Assuming all other variables remain constant, a 10% strengthening of the Australian dollar at 30 June
2021 against the USD would have resulted in an increased loss of $52 (2020: $85). A 10% weakening
of the AUD would have resulted in a decreased loss of $52 (2020: $94), assuming all other variables
remain constant. The Group does not currently hedge against currency risk.
74
Notes to Financial Statements for the financial year ended 30 June 2021
20.
Key management personnel disclosures
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share based payments
Consolidated Group
2021
$
692,054
45,117
194,897
932,068
2020
$
607,388
41,640
64,939
713,967
Detailed remuneration disclosures are provided in the Remuneration Report in the Directors’ Report.
Apart from the Company’s Directors, the Group had 1 employee as at 30 June 2021 (30 June 2020:
no employees).
21.
Remuneration of auditors
During the year the following fees (exclusive of GST) were paid or
payable for services provided by the auditor of the Group:
Audit services
- Audit and review of financial report and other
audit work under the Corporations Act 2001
- Over provision of audit fees
for prior year
Non-audit services
- Other services provided
Total remuneration for audit and other services
Consolidated Group
2021
$
2020
$
48,418
39,425
-
(770)
2,000
50,418
-
38,655
The auditors of Metalicity Limited and its subsidiaries is Pitcher Partners BA&A Pty Limited (2020:
Stantons International).
22. Contingent liabilities
The Group has no contingent liabilities as at 30 June 2021.
75
Notes to Financial Statements for the financial year ended 30 June 2021
23. Commitments for expenditure
(a) Exploration Commitments
In order to maintain an interest in the mining and exploration tenements in which the Group is involved,
the Group is committed to meet the conditions under which the tenements were granted and the
obligations of any joint venture agreements. The timing and amount of exploration expenditure
commitments and obligations of the Group are subject to the minimum expenditure commitments
required as per the Mining Act, as amended, and may vary significantly from the forecast based upon
the results of the work performed which will determine the prospectivity of the relevant area of interest.
These obligations are not provided for in the financial report and are payable.
Outstanding exploration commitments are as follows (other than detailed below, no estimate has been
given of expenditure commitments beyond 12 months as this is dependent on the Directors' ongoing
assessment of operations and, in certain circumstances, Native Title negotiations):
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
24.
Related Party transactions
(a) Key management personnel
Consolidated Group
2021
2020
$
823,427
-
-
823,427
$
321,580
3,847,551
-
4,169,131
During the year ended 30 June 2021, there were no related party transactions with key management
personnel.
All other disclosures relating to key management personnel are set out in Note 20 and in the detailed
remuneration disclosures in the Directors’ Report.
(b) Transaction with related parties
There were no transactions with related parties other than with key management personnel as noted
above.
(c) Outstanding balances arising from sales / purchases of goods and services
There are no balances owing to or from related parties at 30 June 2021 (2020: $Nil).
76
Notes to Financial Statements for the financial year ended 30 June 2021
25. Earnings per share
Consolidated Group
(a) Basic earnings per share
Loss from continuing operations attributable to the ordinary
equity holders of the Company
(b) Diluted earnings/(loss) per share
Loss from continuing operations attributable to the ordinary
equity holders of the Company
(c) Reconciliation of profit/(loss) used in calculating
earnings per share
Basic and diluted profit/(loss) per share
Loss from continuing operations attributable to the ordinary
equity holders of the Company
Loss from discontinued operations
(d) Weighted average number of shares used as the
denominator
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings/(loss) per share
Adjustment for calculation of diluted profit/(loss) per share -
Options
Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating
diluted earnings/(loss) per share
2021
Cents
(0.19)
(0.19)
(0.19)
(0.19)
2021
$
(2,875,403)
-
(2,875,403)
2021
Number
2020
Cents
(0.17)
(0.17)
(0.17)
(0.17)
2020
$
(1,274,669)
-
(1,274,669)
2020
Number
1,699,333,137
770,501,748
-
-
1,699,333,137
770,501,748
As the Group made a loss for the years ended 30 June 2021 and 30 June 2020, the options on issue
have no dilutive effect. Therefore, dilutive loss per share is equal to basic loss per share.
25. Group entities
Parent entity
Metalicity Limited
Subsidiary
Metalicity Energy Pty Ltd
KYM Mining Pty Ltd
Kimberley Mining Limited(1)
Ridgecape Holdings Pty Ltd(1)
Kimberley Mining Australia Pty Ltd(1)
Kimberley Mining Holdings Pty Ltd(1)
Country of
incorporation
Interest
2021
Interest
2020
Australia
Australia
Australia
Canada
Australia
Australia
Australia
100%
100%
~80.3%
~80.3%
~80.3%
~80.3%
100%
100%
~80.3%
~80.3%
~80.3%
~80.3%
(1) Metalicity Limited holds ~80.3% interest in Kimberley Mining Limited (“KML”), and its wholly owned subsidiaries, with
outside equity interest holding the remaining ~19.7%. The outside equity interest in Kimberley Mining Limited equates
to ~0.95% of the net assets of the Group, being $84,179 at 30 June 2021 (2020: $217,870). Please refer to note 12
for further details on the summarised financial information of KML.
77
Notes to Financial Statements for the financial year ended 30 June 2021
27. Parent entity information
Statement of financial position
As at 30 June 2021
ASSETS
Total current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Total current liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Other reserves
Accumulated losses
TOTAL EQUITY
Profit/(Loss) of the parent entity
Total comprehensive (loss) of the parent entity
Parent
2021
$
4.362,056
5,463,600
9,825,656
1,068,700
7,212
1,075,912
8,749,744
56,182,616
3,460,175
(50,893,047)
8,749,744
(3,402,100)
(3,402,100)
Parent
2020
$
1,279,724
2,990,986
4,270,710
804,449
-
804,449
3,466,261
48,568,493
2,271,043
(47,373,275)
3,466,261
(4,695,136)
(4,695,136)
The parent entity has not provided any guarantees or become responsible for contingent liabilities or
contractual commitments of its subsidiaries, other than those disclosed in this financial report.
28. Subsequent events
Other than the following, the Directors are not aware of any significant events since the end of the
reporting period which significantly affect or could significantly affect the operations of the Group in
future financial years:
- On 2 July 2021, the Company announced final assay results at Leipold Prospect, which extends
mineralisation to 1km;
- On 8 July 2021, the Company announced Bonanza Gold intercepts from assays on recent
drilling at McTavish Prospect;
- On 14 July 2021, the Company advised that 18,394,499 listed options exercisable at $0.004
had been converted, raising $73,578;
- On 15 July 2021, the Company announced assay results from Champion Prospect, which had
delivered consistent grades over good widths close to surface;
- On 28 July 2021, the Company announced the final assay results form drilling programme at
Cosmoplitan Gold Mine;
- On 26 August 2021, the Company announced that 7,500,000 options with various exercises
prices had expired;
- On 7 and 13 September 2021, the Company announced that drilling at recommenced at the
McTavish prospect;
- On 14 September 2021, the Company announced a proposal to Nex Metals Shareholders of
an off-market script bid for all of the fully paid ordinary shares in Nex Metals. The offer to Nex
shareholders is 4.81 Metalicity shares for every 1 Nex Metals share on issue as at the date of
the announcement.
78
ASX Additional Information
Additional Information required by the Australian Securities Exchange Limited Listing Rules and not
disclosed elsewhere in this report is set out below.
The shareholder information was applicable as at 17 September 2021.
(a) Substantial Shareholder
There are no substantial shareholders at the date of this report.
(b) Voting Rights
Ordinary Shares
On a show of hands every member present at a meeting of shall have one vote and upon a poll each
share shall have one vote.
Options
There are no voting rights attached to the options
(c) Distribution of Equity Security Holders
(i) Ordinary Shares
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Ordinary Fully Paid Shares
293,727
783,400
881,847
99,480,252
2,042,332,306
2,143,771,532
% Issued Capital
0.01
0.04
0.04
4.64
95.27
100.00
There were 28,520,146 unmarketable parcel of ordinary shares.
(ii) Listed Options
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Listed Options
6,945
37,223
102,916
4,898,124
220,630,681
225,675,889
% of Listed Options
0.00
0.02
0.05
2.17
97.76
100.00
79
ASX Additional Information
(d) Equity Security Holders
(i) Ordinary Shares
The names of the twenty largest ordinary fully paid shareholders at 17 September 20201 are:
1.
2.
3.
4.
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
CITICORP NOMINEES PTY LIMITED
HISHENK PTY LTD
E C DAWSON SUPER PTY LTD
ARDEA RESOURCES LIMITED
5.
6. MR JASON NEWTON LIVINGSTONE
7.
RAINMAKER HOLDINGS (WA) PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
8.
9. MR ZHANGHE CHEN
10
COVENTINA HOLDINGS PTY LTD
1215 CAPITAL PTY LTD
11.
12. HOGHTON SUPERFUND PTY LTD
13.
FMG PILBARA PTY LTD
LOKTOR HOLDINGS PTY LTD
14.
15. MR ANDREW DALEY & MRS INEKE DALEY
16. HAWKSBURN CAPITAL PTE LTD
17. MR ARUN KUMAR NATARAJAN
18.
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
TROMSO PTY LIMITED
19.
19. WIP FUNDS MANAGEMENT PTY LTD
20.
BNP PARIBAS NOMINEES PTY LTD
Number
Held
52,351,330
43,003,460
40,000,000
30,000,000
23,843,825
22,559,905
19,424,640
19,319,282
16,544,409
15,439,285
15,431,298
15,256,481
15,000,000
14,819,742
13,992,982
12,699,090
11,371,428
11,361,566
11,000,000
11,000,000
10,834,945
Percentage
of Issued
Shares
2.44
2.01
1.87
1.40
1.11
1.05
0.91
0.90
0.77
0.72
0.72
0.71
0.70
0.69
0.65
0.59
0.53
0.53
0.51
0.51
0.51
425,253,668
19.84
80
ASX Additional Information
(ii) Listed Option Holders
The names of the twenty largest listed option holders shareholders at 17 September 2021 are:
1.
2.
3.
4.
CG NOMINEES (AUSTRALIA) PTY LTD
HISHENK PTY LTD
UPSKY EQUITY PTY LTD
GEORDIE BAY HOLDINGS PTY LTD
5. MR DAVID KENLEY
6.
LOKTOR HOLDINGS PTY LTD
7. M & K KORKIDAS PTY LTD
8. MS EILEEN LILIAN COLLINS & MR ADAM JAMES CHAMPION
CRAZY DINGO PTY LTD
9. MR ANTHONY JAMES HAWKINS
9.
10
DKH WA PTY LTD
YUNKI PTY LIMITED
11. MR MARK ANDREW TKOCZ
12.
PAUL THOMSON FURNITURE PTY LTD
13. MR NATHAN LAWRENCE CAMMERMAN & MR JAMES EDWARD DILLON
13. MR GREGORY JAMES MILLER
14.
15.
16.
TL POKADOM PTY LTD
TROMSO PTY LIMITED
AAEI INVESTMENTS PTY LTD
17. MR PETER FABIAN HELLINGS
18. MR MATTHEW GAVIN BATTYE
19. MR TIMOTHY PANGBOURNE BIRD
20.
Total
(ii) Unlisted Options
Number
Held
25,000,000
21,750,000
16,856,481
8,000,000
6,250,000
6,019,217
5,863,892
5,113,333
4,889,145
4,650,000
4,000,000
4,000,000
3,333,335
3,250,000
3,215,000
3,000,000
3,000,000
2,980,000
2,945,372
2,800,000
2,750,000
2,500,000
Percentage
of Issued
Shares
11.08
9.64
7.47
3.54
2.77
2.67
2.60
2.27
2.17
2.06
1.77
1.77
1.48
1.44
1.42
1.33
1.33
1.32
1.31
1.24
1.22
1.11
25,000,000
11.08
Unquoted equity securities
(ASX: MCTAY) Options exercisable at $0.025 on or before 14 Jan 2022 (Sub code: MCTOP40)
(ASX: MCTAY) Options exercisable at $0.035 on or before 14 Jan 2022 (Sub code: MCTOP41)
(ASX: MCTAY) Options exercisable at $0.02 on or before 31 May 2022 (Sub code: MCTOP42)
(ASX: MCTAY) Options exercisable at $0.08 on or before 14 Feb 2023 (Sub code: MCTOP34)
(ASX: MCTAY) Options exercisable at $0.003 on or before 14 Aug 2022 (Sub code: MCTOP46)
(ASX: MCTAY) Options exercisable at $0.003 on or before 13 October 2023 (Sub code: MCTOP47)
(ASX: MCTAY) Options exercisable at $0.015 on or before 22 June 2024 (Sub code: MCTOP48)
Number on Issue
2,000,000
2,000,000
10,785,715
25,709,467
25,000,000
35,000,000
21,000,000
(ASX: MCTAD) Performance Rights Vesting at $0.05 expiring on 30 January 2023 (Sub code: MCTPERF2)
(ASX: MCTAD) Performance Rights Vesting at $0.04 expiring on 18 December 2022 (Sub code: MCTPERF3)
(ASX: MCTAD) Performance Rights Vesting at $0.06 expiring on 18 December 2022 (Sub code: MCTPERF4)
15,650,000
29,679,144
36,754,966
81
ASX Additional Information
(e) Tenement List:
As at 17 September 2021
Tenement
Registered Holder
Shares
Held
Plainted
Stat
us
Area (ha)
Nature of
Interest
Interest
Kookynie
P40/1331
KYM Mining Limited
100/100
E40/390
E40/350
E40/357
E40/401
KYM Mining Limited
100/100
KYM Mining Limited
100/100
KYM Mining Limited
100/100
KYM Mining Limited
100/100
P40/1407
KYM Mining Limited
100/100
P40/1430
KYM Mining Limited
100/100
P40/1510
Metalicity Limited
P40/1511
Metalicity Limited
Metalicity Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Paris Enterprises Pty
Ltd
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
100/100
90,405/90
,405
100/100
100/100
100/100
100/100
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
161.2
3,300.0
2,394.0
1,194.0
598.0
10.0
9.9
185.0
176.7
299.0
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Direct Holding
Live
7.2
Earnt In
Live
1.0
Earnt In
Live
600.0
Earnt In
Live
121.7
Earnt In
Live
85.5
Earnt In
Live
832.7
Earnt In
Live
119.2
Earnt In
Live
8.3
Earnt In
Live
5.9
Earnt In
Live
21.1
Earnt In
Live
1,222.7
Earning In
Kookynie Total Area (ha)
11,352.9
Yundamindra
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
100/100
Yes
Live
1.0
Earnt In
96/96
Yes
Live
1.0
Earnt In
100/100
Yes
Live
3.2
Earnt In
100/100
Yes
Live
378.0
Earnt In
100/100
Yes
Live
230.0
Earnt In
100/100
Yes
Live
124.0
Earnt In
100/100
Yes
Live
896.0
Earnt In
100/100
Yes
Live
785.0
Earnt In
100/100
Yes
Live
966.0
Earnt In
E40/387
G40/3
L40/9
E40/332
M40/22
M40/27
M40/61
M40/77
P40/1499
P40/1500
P40/1501
E40/289
L39/34
L39/52
L39/258
M39/84
M39/274
M39/406
M39/407
M39/408
M39/409
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
51%
82
ASX Additional Information
M39/410
M39/839
M39/840
P39/6126
P39/6127
E39/1773
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Nex Metals
Explorations Limited
Paddick Investments
Pty Ltd
E39/1774
Paddick Investments
Pty Ltd
100/100
Yes
Live
978.0
Earnt In
100/100
Yes
Live
7.3
Earnt In
100/100
Yes
Live
9.7
Earnt In
100/100
100/100
No
No
Live
10.4
Earnt In
Live
5.6
Earnt In
100/100
Yes
Live
903.0
Earning-in
51%
51%
51%
51%
51%
51%
100/100
Yes
Live
2,517.0
Earning-in
51%
Yundamindra Total Area (ha)
7,815.1
Tenement
Registered Holder
Status
Area
Nature of Interest
Interest
Admiral Bay
E04/1610
Kimberley Mining Australia Pty Lyd
Live
M04/244
Kimberley Mining Australia Pty Lyd
Live
M40/249
Kimberley Mining Australia Pty Lyd
Live
42
Blocks
796.4 ha
843.85
ha
Holding in
Subsidiary
Holding in
Subsidiary
Holding in
Subsidiary
80.3%
80.3%
80.3%
83