ASX RELEASE
4 OCTOBER 2021
REPLACEMENT ANNUAL REPORT
Metals X Limited (Metals X or the Company) (ASX:TSO) refers to its Annual Report dated 30 September 2021
(Annual Report) noting that the Table of Mineral Resources and Ore Reserves contained within the Annual Report
contains a typographical error on page 66.
The Company advises that the Grade % Sn of the Renison Bell Ore Reserve estimate at 31 March 2021 is amended
from 1.90 to 1.41 resulting in a change to the Grade % Sn of the total Ore Reserve estimate at 31 March 2021 from
0.82 to 0.69. The Grade % Cu of the Renison Bell Ore Reserve estimate at 31 March 2021 is also amended from
0.30 to 0.19 resulting in a change to the Grade % Cu of the total Ore Reserve estimate at 31 March 2021 from 0.25
to 0.22. The total tonnes of Tin and Copper ore and metal are reported correctly.
An updated version of the Annual Report containing this correction, is attached.
This announcement has been authorised by the board of directors of Metals X Limited
ENQUIRIES
Mr Brett Smith
Executive Director
E: brett.smith@metalsx.com.au
CORPORATE DIRECTORY
Level 5, 197 St Georges Terrace
Perth WA 6000 Australia
ASX Code: MLX
T +61 8 9220 5700
E reception@metalsx.com.au
ABN 25 110 150 055
www.metalsx.com.au
ACN 110 150 055
Annual Report
2021
CONTENTS
CORPORATE DIRECTORY .......................................................................................................................................................... 1
CHAIRMAN’S LETTER .................................................................................................................................................................. 2
DIRECTORS’ REPORT ................................................................................................................................................................. 3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ........................................................................................... 19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................................... 20
CONSOLIDATED STATEMENT OF CASH FLOWS .................................................................................................................. 21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..................................................................................................... 22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .............................................................................................. 23
DIRECTORS’ DECLARATION .................................................................................................................................................... 60
AUDITOR’S INDEPENDENCE DECLARATION ........................................................................................................................ 61
INDEPENDENT AUDIT REPORT................................................................................................................................................62
TABLES OF MINERAL RESOURCES AND ORE RESERVES ................................................................................................. 66
SECURITY HOLDER INFORMATION ........................................................................................................................................ 68
CORPORATE DIRECTORY
Directors
Mr Peter Gunzburg (Non-Executive Chairman)
Mr Brett Smith (Executive Director)
Mr Grahame White (Non-Executive Director)
Mr Patrick O’Connor (Non-Executive Director)
Company Secretary
Ms Shannon Coates
Key Management
Mr Daniel Broughton (CFO)
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
GPO Box Melbourne VIC 3001
Phone: (within Australia) 1300 850 505
Phone: (outside Australia) +61 3 4915 4000
Facsimile: +61 3 9473 2500
Registered Office
Level 5, 197 St Georges Terrace
Perth WA 6000
Phone: +61 8 9220 5700
E-mail: reception@metalsx.com.au
Website: www.metalsx.com.au
Postal Address
PO Box 7248
Cloisters Square
PO WA 6850
Securities Exchange
Australian Securities Exchange
Central Park
152-158 St George’s Terrace
Perth WA 6000
Code: ASX: MLX
Domicile and Country of Incorporation
Australia
1
CHAIRMAN’S LETTER
In the last 12 months management have successfully divested our copper assets and have started a process for
the divestment of our nickel assets. With the help of record tin prices, we have halved our debt, substantially
reduced corporate overheads, and returned the company to profitability.
Through our position in the Renison joint venture, we continue to direct focus on the long-term sustainability of
the Renison deposit by increasing ore reserves, improving plant efficiency, and starting a near mine exploration
programme.
Our aim for the next 12 months is to repay our remaining debt and balance the necessary capital expenditure to
upgrade our processing plant whilst continuing to build a cash reserve.
Peter Gunzburg
Chairman
2
DIRECTORS’ REPORT
For the year ended 30 June 2021
The Directors present their report together with the consolidated financial report of Metals X Limited (“Metals X”
or the “Company”) and its controlled entities (together the “Group”) for the year ended 30 June 2021 and the
Independent Auditor’s Report thereon.
1.
Directors
The names of the Company's Directors in office during the year and until the date of this report are set out
below. Directors were in office for this entire period unless otherwise stated.
Independent Non-Executive Chairman – Mr Peter Gunzburg B. Com (appointed 10 July 2020)
Mr Gunzburg has over 40 years’ experience acting as a public company director, stockbroker, and investor. Mr
Gunzburg has previously been a director of Resolute Ltd, Australian Stock Exchange Ltd, Eyres Reed Ltd, CIBC
World Markets Australia Ltd and Fleetwood Corporation Ltd. Mr Gunzburg was the Non-Executive Chairman of
ASX listed BARD1 Life Sciences Limited (resigned 28/07/2020).
Mr Gunzburg is Chairman of the Board, Chairman of the Remuneration and Nomination Committee and member
of the Audit and Risk committee.
Executive Director – Mr. Brett Smith MBA, M.A (appointed 2 December 2019 as Non-Executive Director and
Executive Director as of 10 July 2020)
Mr. Smith has participated in the development of a number of mining and mineral processing projects including
coal, iron ore, base and precious metals. He has also managed engineering and construction companies in
Australia and internationally. Mr. Smith has served on the board of private and listed mining and exploration
companies and has over 32 years international experience in the engineering and construction of mineral
processing operations. Mr. Smith is Executive Director and Deputy Chairman of Hong Kong listed company
APAC Resources Limited, Executive Director of Hong Kong listed company Dragon Mining Limited and a Non-
Executive Director of ASX listed companies Prodigy Gold NL, Elementos NL and Tanami Gold NL.
Independent Non-Executive Director – Mr Grahame White B. Eng, MAICD (appointed 10 July 2020)
Mr White is a construction and mining executive with comprehensive experience in Australia and Asia. Mr White
has held numerous executive management positions in the resources sector and recently served on the Boards
of Central West Rural, Forge Group Limited and the Queensland Resource Council.
Mr White is Chairman of the Audit and Risk Committee and member of the Remuneration and Nominations
Committee.
Independent Non-Executive Director – Mr Patrick O’Connor B. Com, FAICD (appointed Non-Executive
Director 24 October 2019 and Non-Executive and Executive Chairman on 3 December 2019 and 17 December
2019, respectively. Reverted to Non-Executive Director on 10 July 2020)
Mr O’Connor has significant experience as an independent Non-Executive Director and as a Chief Executive
Officer. His experience spans across mining (gold, copper, lead, zinc and coal), oil & gas exploration,
biotechnology and government utility sectors. Mr O’Connor was previously a Non-Executive Director of
Stanmore Coal Ltd. In addition, he has held the roles of Deputy Chairman and Chairman of Perilya Ltd, the
operator of the Broken Hill mine in NSW Australia, prior to its takeover and delisting from the ASX. Mr O’Connor
spent nine years as a director of the Water Corporation in WA including four years as its Chairman. Mr O’Connor
was also the Chief Executive Officer for OceanaGold Corporation at the time of its listing on the ASX and
remained for a period as a Non-Executive Director. Prior to OceanaGold, Mr. O’Connor was Managing Director
of Macraes Mining Co Ltd for nine years. Mr O’Connor was also appointed as Non-Executive Director and
Chairman of FAR Limited on 1 July 2021 and 8 July 202, respectively.
Mr O’Connor was Chairman of the Board (3 December 2019 – 10 July 2020), Chairman of the Remuneration
and Nomination Committee (24 October 2019 – 10 July 2020) thereafter member of the Remuneration and
Nomination Committee and member of the Audit and Risk Committee.
Non-Executive Director – Mr Xingwang Bao B Sc (appointed 10 January 2020, resigned 12 November 2020)
Independent Non-Executive Director – Mr Brett Lambert B. App Sc, MAICD (appointed 24 October 2019,
resigned 10 July 2020)
Independent Non-Executive Director – Mr Anthony Polglase B. Eng (Hons) 1st Class, ACSM (appointed 24
October 2019, resigned 10 July 2020)
3
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
2.
Company Secretary
Ms. Shannon Coates – LLB, GIA (cert), GAICD (appointed on 1 December 2020)
Ms Coates has over 20 years’ experience in corporate law and compliance. She is currently company secretary
to a number of public listed and unlisted companies and has provided company secretarial and corporate
advisory services to Boards and various committees across a variety of industries, including financial services,
resources, manufacturing and technology.
Ms. Fiona Van Maanen – (resigned on 4 December 2020)
3.
Directors’ Interests
As at the date of this report, the relevant interests of the directors in securities of the Company are:
Directors
Mr Peter Gunzburg
Mr Brett Smith
Mr Patrick O’Connor
Mr Grahame White
Total
4.
Directors Meetings
Fully Paid Ordinary
Shares
Options
-
210,000
1,000,000
-
1,210,000
-
-
-
-
-
The number of meetings of Directors’ (including meetings of committees of Directors) held during the year and
the number of meetings attended by each Director was as follows:
Directors
Board Meetings
Audit and Risk
Committee Meetings
Remuneration &
Nomination Committee
Meetings
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Mr Peter Gunzburg
Mr Brett Smith
Mr Patrick O’Connor
Mr Grahame White
Mr Xingwang Bao
Mr Brett Lambert
Mr Anthony Polglase
15
15
15
15
7
1
1
15
15
15
15
-
1
1
2
1
2
2
-
-
-
5.
Nature of Operations and Principal Activities
2
1
2
2
-
-
-
1
-
1
1
-
-
-
1
-
1
1
-
-
-
The Company is a limited liability company and is domiciled and incorporated in Australia. The Company owns
a 50% equity interest in the Renison Tin Operation through its 50% stake in the Bluestone Mines Tasmania
Joint Venture and comprises the Renison Tin Mine (“Renison”) located 15km north-east of Zeehan on
Tasmania’s west coast and the Mount Bischoff Project, placed on care and maintenance in 2010, which is
located 80km north of Renison.
The Wingellina Nickel-Cobalt Project forms part of the Company’s Central Musgrave Project straddling the
triple-point of the Western Australia, Northern Territory and South Australia borders. Wingellina is
development-ready and is the largest undeveloped nickel-cobalt project in Australia. On 25 May 2021, the
Company announced it had executed a binding terms sheet with NICO Resources Limited for the sale and
spin out of its Nickel-Cobalt portfolio. The associated assets and liabilities have been reclassified as held for
sale at 30 June 2021 in the consolidated financial statements.
The principal activities of the Group during the period were:
Investment in a joint venture company operating a tin mine in Australia; and
exploration and development of base metals projects in Australia.
There have been no significant changes in the nature of those activities during the year.
4
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
6.
Financial Results Overview
The Group achieved a consolidated profit after income tax of $87.199 million (2020: loss $80.341 million) and
includes $64.274 million from the results and divestment of the Group’s Copper assets and the classification
of its Nickel assets as held for sale at year end.
Key financial results for the Group include:
Total revenue from continuing operations: $93.834 million (2020: $73.243 million);
Contingent consideration income of $10.000 million representing the Mt Gordon Copper Payment, plus
the agreed fee of $0.250 million. The associated interest charge of $0.750 million is presented in other
income;
Total cost of sales of continuing operations: $75.145 million (2020: $70.330 million);
Cash flows from operating activities: $4.404 million (2020: outflow of $21.043 million);
Cash flows from investing activities: $12.688 million (2020: outflow of $31.285 million);
Cash flows used in financing activities: $17.715 million (2020: inflow of $55.059 million); and
Closing cash and cash equivalents: $13.472 million (2020: $14.095 million).
Covid-19 Pandemic Response
The COVID-19 pandemic has had a significant impact on, individuals, communities, and businesses globally.
Employees at all levels of the Company’s business were asked to change the way they work, and how they
interacted professionally and socially. In line with the various Government health measures, the Group
implemented significant controls and requirements at all its sites to protect the health and safety of its
workforce, their families, local suppliers, and neighbouring communities, while ensuring a safe environment
for operations to continue.
The Group’s COVID-19 response protocols reinforce, and operate concurrently with, public health advice.
They include:
social distancing protocols;
suspension of large indoor gatherings;
cancellation of all non-essential travel;
flexible and remote working plans for employees;
access to site restrictions and temperature screening;
self-isolation following international travel, development of symptoms or interaction with a confirmed
case of COVID-19;
increased inventory of hand sanitiser and hygiene supplies; and
increased focus on cleaning and sanitation.
As a result, while there was minor travel and logistics issues there were no material additional costs or
interruptions to the Company’s operation because of Covid -19 during the reporting period. No adjustments
have been made to the Group’s full-year financial results for the impacts of COVID-19. However, the scale
and duration of possible future Government measures, vaccine rollout, and their impact on the Group’s
operations and financial situation, necessarily remains uncertain.
5
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
7.
Review of Operations
TIN DIVISION
Renison Tin Operation (50% MLX)
The Renison strategy is focussed on continuing to convert ongoing significant in-mine exploration success into
a substantial long-life mining operation, to deliver higher cash margins through an increased mining rate,
grade, and recovery, whilst continuing to seek productivity improvements and reduce costs.
Renison production performance summary
Physicals
UG ore mined
UG grade mined
Ore processed
Head grade
Recovery
Tin produced
Tin sold
Unit
t
% Sn
t
% Sn
%
t
t
30 Jun
2021
30 Jun
2020
Movement
Movement
%
405,379
1.30%
326,750
1.59%
76.48%
3,974
3,658
424,453
1.18%
344,591
1.42%
73.56%
3,591
3,412
(19,074)
0.12%
(17,841)
0.17%
2.92%
383
246
(4.49%)
10.17%
(5.18%)
11.97%
3.97%
10.67%
7.21%
Renison financial performance summary
Financial
Revenue from continuing activities
Cost of sales
Gross profit
30 June 2021 30 June 2020
$’000
73,243
$’000
93,834
(75,145)
18,689
(70,330)
2,913
Movement
$’000
20,591
(4,815)
15,776
Movement
%
28.11%
6.85%
541.47%
Revenue is derived from the Company’s 50% interest in Renison. Increased tin sales and tin prices
delivered a 28.11% increase in revenue for the year.
Cost of sales increased by $4.815 million for the year due to the following:
o
o
o
Royalty expense increased by $2.560 million to $3.960 million (2020: $1.40 million);
Plant and equipment depreciation increased by $0.550 million to $3.780 million (2020: $3.230
million); and
Employee costs increased by $1.190 million to $14.220 million (2020: $13.030 million). The cost
increase includes redundancy and restructuring costs of $0.500 million and an increase in the
number of personnel onsite.
Key Projects and Focus Areas
Area 5 Project
Following completion of the Area 5 Optimisation Study, in conjunction with an updated Renison Life-of-Mine
Plan (“LOMP”) during June 2020, the execution phase of the Area 5 Project was initiated in July 2020. The
objective of the Area 5 Project is to develop and mine the high-grade Area 5 Ore Reserve, including
construction of the requisite surface and underground infrastructure to support the development.
Key Area 5 Project activities during the period were:
completion of the upper strip and line section of new ventilation network from surface and
commencement of raise bore of first underground ventilation shaft.
commencement of detailed engineering for a paste-fill plant. West Coast Council (WCC) and
Environmental Protection Authority (EPA) approvals commenced with preliminary site environmental
clean-up approved.
detailed electrical engineering work commenced for the surface infrastructure upgrade with preferred
contractor, further long lead items ordered.
geotechnical review and detailed design work on the stoping layout have continued through the year
with a potential reduction in development requirements above the current LOMP identified. This iterative
process will continue to further strengthen the mine plan and ensure robustness of the current LOMP.
6
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
7.
Review of Operations (continued)
Metallurgical Improvement Program
The objective of the Metallurgical Improvement Program (“MIP”) is to improve systems to ensure the increased
processing throughput rates are sustained and to increase metallurgical recovery. The program is being
advanced through ongoing review and updating of control systems and online analytical infrastructure,
improved training and communication of standard operating parameters and upgrade or replacement of key
processing infrastructure. Key MIP workstreams progressed during the year were:
on-stream analysis system upgrade – commissioning and project hand-over completed.
raw water upgrade commissioning completed.
UF Falcon rinse water and CCD wash water upgrade – construction commenced.
fine gravity spirals replacement selection test work conducted, and preliminary engineering completed
for execution.
upgrade of gravity table feed distributors – construction commenced.
sulphide scavenger cleaner circuit – preliminary engineering commenced.
tin flotation and Ultra Fine Falcon circuits upgrades – completed.
final concentrate pumping upgrade – engineering study completed.
sulphide flotation feed pumping stability – preliminary engineering completed.
talc handling - preliminary engineering work completed for execution.
Thermal Upgrade Project
The Thermal Upgrade Project scoping study was completed during the year. The study examined the
production of a low tin grade concentrate as feed for a tin fumer producing a high grade, ~68% Sn, tin fume
product suitable for sale to conventional offtakes, and a separate high grade, ~70% Sn, gravity concentrate,
with the aim of achieving a step change in recovery beyond that achieved by the Metallurgical Improvement
Program. It also considered the development of the full Rentails Project to improve capital efficiency.
A decision announced on 26 July 2021, was made to proceed with an update of the Rentails Definitive
Feasibility Study (Rentails DFS Update), to enable a final investment decision for development of the full
Rentails Project to be made in 2023. The aim is for the Rentails facility to be designed and operated to be Net
Zero Emission through the selection of the technology and energy source for the thermal upgrade plant with
consideration of the world’s first use of green hydrogen in tin fuming.
Mt Bischoff Project
Mt Bischoff is a significant historical tin operation, producing some 60,000 tonnes of tin metal since the late
1800’s. The project was placed on care and maintenance in 2010 and is entering a phase of rehabilitation.
COPPER DIVISION
Sale of Copper Assets Completed
On 31 March 2021, Metals X announced the completion of the sale of its copper asset portfolio, including the
Nifty Copper Operation, Maroochydore Copper Project, and the Paterson Exploration Project (including the
farm-in agreement with IGO) (together “Copper Assets”) to Cyprium Metals Limited (“Cyprium”)
Pursuant to the share sale agreement between Metals X and Cyprium (“Agreement”) all of the shares in
Paterson Copper Pty Ltd (“Paterson Copper”), which held the Copper Assets through its two 100%-owned
subsidiaries Nifty Copper Pty Ltd and Maroochydore Copper Pty Ltd, were transferred from Metals X to
Cyprium.
Upon completion of the Agreement, Metals X received:
A gross payment of A$24 million in cash (inclusive of A$1.0 million cash deposit previously held in an
escrow account), plus a working capital adjustment payment of approximately A$0.5 million, in
addition to reimbursement to Metals X of approximately A$2.1 million for holding costs paid for the
Copper assets from 1 January 2020 to the date of completion;
A$36 million in aggregate in convertible notes issued by Cyprium (“Convertible Notes”) on terms
including:
7
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
7.
Review of Operations (continued)
COPPER DIVISION
Sale of Copper Assets Completed (continued)
-
-
-
-
a four-year maturity from 30 March 2021
convertible at maturity at the election of Metals X, or otherwise redeemable by Cyprium at
maturity (with annual interest to be paid in shares at the same conversion price, at the
election of Metals X);
conversion price of $0.355 per Cyprium share;
annual coupon of 4% to be capitalised and paid annually on a default basis on each
anniversary of 30 March 2021 until maturity (with annual interest to be paid in shares at the
same conversion price, at the election of Metals X);
40.6 million options (“Options”) in Cyprium on the following terms:
-
-
20.3 million Options exercisable at $0.314 per Option with an expiry date of 30 March 2022;
and
20.3 million Options exercisable at $0.355 per Option with an expiry date of 30 March 2023.
Completion of the Agreement also resulted in cash backed security bonds being provided in support of the
Copper Assets, totalling approximately A$6.5 million, being released to the accounts of Metals X.
The sale of the Copper Assets underpins the Company’s strategy to focus on the development of its Tin asset
portfolio. The funds received as a result of completion under the Agreement provides working capital to Metals
X and will assist in facilitating the Company’s reduction in debt.
NICKEL DIVISION
Spin Out of Nickel-Cobalt Assets
On 25 May 2021, the Company announced it had executed a binding terms sheet with NICO Resources
Limited (“NICO”) for the sale and spin out of its Nickel asset portfolio, including the Wingellina Nickel-Cobalt
Project located in Western Australia and the Claude Hills Project located in South Australia (together the
“Nickel Assets”) (the “Terms Sheet”).
The Terms Sheet provides for the sale of all of the shares in Metals Exploration Pty Ltd (“Metals Exploration”),
currently a 100%-owned subsidiary of the Company, to NICO with eligible Metals X shareholders to receive a
direct holding in NICO shares so as to spin out the Nickel assets from the Company (the “Transaction”). Metals
Exploration holds the Nickel Assets through Metex Nickel Pty Ltd (“Metex Nickel”). The registered holders of
the tenements that comprise the Nickel Assets are two 100%-owned subsidiaries of Metex Nickel, being
Hinckley Range Pty Ltd and Austral Nickel Pty Ltd.
In conjunction with the Transaction, NICO proposes to undertake an initial public offering of its shares (“IPO”)
and apply for listing on the ASX. Under the Terms Sheet, NICO proposes to raise at least $8 million by the
issue of:
approximately 20,000,000 fully paid ordinary shares at $0.20 per share to Metals X (“MLX IPO Shares”);
and
at least 20,000,000 fully paid ordinary shares at $0.20 per share under the IPO.
In addition to receiving the MLX IPO Shares, the consideration payable by NICO to Metals X for the purchase
of the Nickel Assets will be $5,000,000, to be satisfied by the issue to Metals X of:
25,000,000 shares in NICO at a deemed issue price of $0.20 per share; and
25,000,000 options to subscribe for shares in NICO, exercisable at $0.25 each, expiring 3 years after
grant.
Immediately prior to, or simultaneously with, the IPO, Metals X proposes to conduct an in-specie distribution
of 25,000,000 shares received in NICO as sale consideration to eligible Metals X shareholders, being
approximately 35% of NICO’s total issued share capital on a post-IPO undiluted basis, subject to the approval
of Metals X shareholders (Distribution). Metals X will retain the remainder of the NICO shares it obtains under
the Transaction (being the MLX IPO Shares and the options) and will directly hold approximately 29% of
NICO’s total issued share capital on a post-IPO undiluted basis.
8
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
7.
Review of Operations (continued)
The Transaction is subject to a number of conditions, including:
completion of satisfactory due diligence by the parties;
any necessary approval from the Foreign Investment Review Board;
ASX notifying Metals X that ASX Listing Rule 11.4 does not apply, or alternatively, Metals X
shareholders approving the Transaction in accordance with ASX Listing Rule 11.4.1(b);
Metals X’s shareholders approving the Distribution;
NICO successfully conducting the IPO and listing on the official list of the ASX;
ASX notifying Metals X or NICO that the ASX has determined on an “in principle” basis that the
Consideration Shares will not be classified as restricted securities under the ASX listing rules if NICO
is listed on the official list of the ASX;
any other approvals required pursuant to the ASX Listing Rules and under the Corporations Act 2001
(Cth);
Metals X obtaining any third-party consents or assumptions required for the sale of Metals Exploration’s
shares; and
no material adverse change occurring with respect to the parties from the date of the Terms Sheet until
completion of the Transaction, together, the Conditions Precedent.
Under the Terms Sheet, the Conditions Precedent were to be satisfied by 21 September 2021, being 120 days
after the date of the Terms Sheet. Completion of the Transaction will occur on the date 5 business days after
satisfaction of the Conditions Precedent, or such other date as may be agreed between the parties.
The parties intend to formalise the agreement to the Transaction on terms substantially similar to those
provided in the Terms Sheet in a share sale and purchase agreement which will supersede the Terms Sheet
(“Formal Agreement”). Either party may terminate the Terms Sheet in the event the Formal Agreement is not
executed after 90 days from the date of the Terms Sheet.
An existing 1.75% net smelter royalty on all metals produced from both the Wingellina Nickel-Cobalt Project
and the Claude Hills Project, granted by the current tenement holders in favour of Metals X, will be maintained
by Metals X after completion of the Transaction.
On 28 June 2021, the Company advised the condition requiring satisfactory due diligence by the parties had
been completed.
On 21 September 2021, the date to satisfy all Conditions Precedence passed. However, the parties are in the
process of extending the date for completion of the Conditions Precedent which have resulted from procedural
delays in obtaining the necessary approval from the Foreign Investment Review Board.
The assets and liabilities associated with Nickel Cobalt project have been reclassified as assets held for sale
at 30 June 2021. Refer to note 11 in the consolidated financial statements.
8.
Corporate
Repayment of the Citibank Finance Facility
On 31 July 2020, the Company made a final payment of $30.620 million (including interest to that date)
repaying the Citibank Finance Facility (“Citi Facility”) in full.
The Citi Facility was subsequently closed.
Asia Cheer Finance Facility
On 27 July 2020, the Company executed a new unsecured $26.000 million loan facility (“ACT Loan”) with Asia
Cheer Trading Limited (ACT), a subsidiary of the Company’s substantial shareholder, APAC Resources
Strategic Holdings Limited. The funds from the ACT Loan were used to repay the Citi Facility.
The initial key terms of the ACT Loan were:
Repayment date:
Until 31 January 2021
Establishment fee:
Fixed interest rate:
3.5%
1.0%
.
9
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
8.
Corporate (continued)
On 15 December 2020, the Company executed a deed of variation to extend the ACT Loan repayment date
to 31 July 2021 and increase the facility amount to $31.000 million (“Outstanding Amount”), all other terms and
conditions remain unchanged. The $5.000 million increase was used for general corporate expenditure and to
provide working capital.
On 14 April 2021, the Company repaid $15.500 million, comprising 50% of the Outstanding Amount. At 30
June 2021, the Outstanding Amount was $15.500 million.
Refer to Significant Events After Balance Date for changes to the ACT Loan after year end.
Mt Gordon Copper Payment Receivable
On 24 December 2020, the Company entered into a binding terms sheet with Capricorn Holdings Pty Ltd
(“CCH”) and its parent entity EMR Capital Investment (No 6B) (“ECI”) for the $10.000 million conditional copper
price payment (“Copper Payment”), detailing the material terms and timing for Copper Payment pursuant to
the Mt Gordon Sale Agreement for the now-named Capricorn Copper Tin Mine.
On 1 April 2021, the Company announced that it had agreed to an extension of time for the Copper Payment.
A summary of the varied key terms agreed is as follows:
Payment Terms
Payment of the Copper Payment is to be made in two instalments plus accrued
interest:
Interest:
Security:
Extension Fee:
$5.000 million (Tranche 1 Payment) to be paid on or before 30 June 2021;
and
$5.000 million (Tranche 2 Payment) to be paid on or before 24 June 2022.
To accrue on the outstanding balance of the Copper Payment at 12% per annum
from 25 December 2020 until final payment of the Copper Payment and accrued
interest;
ECI to provide an additional specific security over a further 10% of the ordinary
shares it holds in CCH, bringing the total specific security of shares it holds in CCH
to 20% exercisable in the event of a default by CCH; and
CCH will pay to Metals X an extension fee of $0.250 million on or before 30 June
2021. This fee is required to be made regardless of whether the Tranche 1 Payment
is paid to the Company prior to 30 June 2021.
The Copper Payment was recognised in the consolidated statement of comprehensive income as contingent
consideration income for $10.250 million. The Copper Payment was received in full after year end. Refer to
note 11 Significant Events After Balance Date.
Less than Marketable Parcel Share Sale Facility
On 12 October 2020, the Company announced details of a share sale facility (“Share Sale Facility”) established
for holders of less than a marketable parcel of shares in the Company’s issued capital, defined in the ASX
Listing Rules as a parcel of securities of not less than $500 in value. The Share Sale Facility was provided to
shareholders without difficulty, and without incurring any costs, that might otherwise make a sale of their shares
uneconomic.
Based on the closing price on the ASX of Metals X shares of $0.078 on 9 October 2020, a less than marketable
parcel of Metals X shares was 6,410 shares or fewer.
The Share Sale Facility closed on 30 November 2020 with the final number of Metals X shares sold being
6,242,379 Metals X shares from 2,621 shareholders.
9.
Dividends
No dividend was paid or declared during the year and no dividend has been recommended or declared by the
Directors for year ended 30 June 2021 (30 June 2020: nil).
10
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
10. Unissued Shares under Options
As at the date of this report, there are 488,024 ordinary unissued shares under option as follows:
Number
66,956
421,068
Type
Unquoted
Unquoted
Exercise Price
$1.32
$1.32
Expiry Date
30 June 2023
30 June 2024
During the year, 11,496,308 options were forfeited due to performance criteria not being achieved or cessation
of employment.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company
or any related body corporate.
There were no shares issued under option in the Company since year end.
11. Significant Events After Balance Date
Receipt of Mt Gordon Copper Payment
On 8 July 2021, the Company received $11.000 million as settlement of the Copper Payment pursuant to the Mt
Gordon Sale Agreement, and subsequent binding variation agreement, with CCH and its parent entity ECI.
The Copper Payment included the first and second instalments of $5.000 million each, the agreed extension fee
of $0.250 million, and interest due of $0.750 million.
Repayment of ACT Loan Facility
On 13 July 2021, the Company repaid $7.75 million, comprising 50% of the outstanding principal amount of
$15.50 million to ACT.
On 27 July 2021, the Company announced it had agreed to extend the Loan Facility Termination Date from 31
July 2021 to 31 January 2021, with all other terms and conditions remaining unchanged.
On 30 September 2021, the Company made a final payment of $7.764 million, comprising $7.750 million principal
plus interest, to ACT. The Company has now repaid the ACT loan facility in full.
12. Business Strategies and Prospects
With the divestments of the non-tin assets, the Company is looking to develop a broader tin portfolio. This may
be through expansions of its existing operations or through acquiring interests in other operations. The
Company will also look to extract the maximum value from its participation in the financial instruments and
shareholdings in the organisations continuing with its former copper and nickel assets.
The Group expects to continue its participation in the Renison joint venture, undertaking exploration, mining,
processing, production, and marketing of tin. These are described in more detail in the Review of Operations.
13. Environmental, Regulation and Performance
The Group’s operations are subject to the relevant environmental protection legislation (Commonwealth and
State legislation). The Group holds various environmental licenses issued under these laws, to regulate its
mining and exploration activities in Australia. These licenses include conditions and regulations in relation to
specifying limits on discharges into the air, surface water and groundwater, rehabilitation of areas disturbed
during mining and exploration activities and the storage of hazardous substances.
All environmental performance obligations are monitored by the Board of directors and subjected from time to
time to Government agency audits and site inspections. There have been no material breaches of the Group’s
licenses and all mining and exploration activities have been undertaken in compliance with the relevant
environmental regulations.
14. Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of
the Company support and have adhered to the principles of Corporate Governance. The Company’s corporate
governance statement is available at https://www.metalsx.com.au/aboutus/ corporate-governance/.
11
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
15. Remuneration Report - Audited
The Directors of Metals X present the Remuneration Report (the “Report”) for the Group for the year ended 30
June 2021. This Report forms part of the Directors’ Report and has been audited in accordance with section
300A of the Corporations Act 2001 and its regulations.
This Report details the remuneration arrangements for the Company’s Key Management Personnel (“KMP”)
defined as those who directly or indirectly, have authority and responsibility for planning, directing, and
controlling the major activities of the Group, including any Director (whether executive or otherwise) and
Executives of the Company.
15.1 Remuneration Policy
The Board recognises that the Company’s performance depends upon the quality of its Directors and
Executives. To achieve its financial and operating activities, the Company must attract, motivate, and retain
highly skilled Directors and Executives.
The Company embodies the following principles in its remuneration framework:
Provides competitive rewards to attract high calibre Directors and Executives;
Structures remuneration at a level that reflects the Executive’s duties and accountabilities and is
competitive within Australia;
Benchmarks remuneration against appropriate industry groups; and
Aligns Executive incentive rewards with the creation of value for shareholders.
Performance related executive remuneration, including cash bonuses, are based on the Company’s and
individual performance, and are determined at the Board’s discretion.
15.2 Company Performance
The table below shows the Company’s financial performance over the last five years.
Performance summary
30 June
2021
30 June
2020
30 June
2019
30 June
2018
30 June
2017
Closing share price
$0.21
$0.08
$0.25
$0.80
$0.67
(Loss)/profit per share from
continuing operations (cents)
Net assets per share
Total shareholder return
Dividend paid per shares (cents)
2.53
(1.46)
(17.17)
(4.30)
(17.43)
$0.15
172%
-
$0.06
(68%)
-
$0.15
(69%)
-
$0.28
19%
-
$0.27
12%
1.00
15.3 Remuneration and Nomination Committee Responsibility
The Remuneration and Nomination Committee (the “Committee”) is a subcommittee of the Board and is
responsible for making recommendations to the Board on KMP remuneration, and the KMP remuneration
framework and incentive plan policies.
The Committee assesses the appropriateness of the nature and amount of remuneration of KMP on a periodic
basis by reference to relevant employment market conditions with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high performing KMP.
To ensure the Committee is fully informed when making remuneration decisions, it can seek external
remuneration advice. No external consultants were utilised during the current year.
15.4 Remuneration of Non-Executive Directors
The Company’s Non-Executive Director fee policy is designed to attract and retain high calibre directors who
can discharge the roles and responsibilities required in terms of good governance, strong oversight,
independence, and objectivity.
The Company’s Constitution and the ASX listing rules specify that the aggregate remuneration of Non-
Executive Directors, shall be approved periodically by shareholders. The last determination was at the Annual
General Meeting held on 26 November 2014 when shareholders approved an aggregate fee pool of $600,000
per year.
12
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
15. Remuneration Report – Audited (continued)
The amount of the aggregate remuneration sought to be approved by shareholders and the way it is paid to
Non-Executive Directors is reviewed annually.
15.5 Remuneration of Executives
In determining Executive remuneration, the Committee aims to ensure that remuneration practices are:
Competitive and reasonable,
Enabling the Company to attract and retain high calibre talent;
Aligned to the Company’s strategic and business objectives and the creation of shareholder value;
Transparent and easily understood; and
Acceptable to shareholders.
The Company’s approach to remuneration ensures that remuneration is competitive, performance-focused,
clearly links appropriate reward with desired business performance, and is simple to administer and
understand by Executives and shareholders.
15.6 Executive Remuneration Structure
The Company’s remuneration structure provides for a combination of fixed and variable pay with the following
components fixed remuneration, short-term incentives (“STI”) and long-term incentives (“LTI”). The Company
does not currently consider the issue of long-term incentive (“LTI”) to Directors and Executives to be
appropriate.
15.7 Fixed Remuneration
Fixed remuneration consists of base salary, superannuation and other non-monetary benefits designed to
reward for:
The scope of the executive’s role;
The executive’s skills, experience, and qualifications; and
Individual performance.
15.8 Performance Linked Compensation – STI
Directors and Executives may have an STI component included in their remuneration package representing a
meaningful “at risk” short-term incentive payment. The payment will be “at risk” in that it will only be payable if
a set of clearly defined and measurable performance metrics or Key Performance Indicators (“KPI”) have been
met in the applicable performance period. The KPI’s may include a combination of Company KPI’s and
Individual KPI’s. The Board must set KPI’s that are based on metrics that are measurable, transparent, and
achievable, designed to motivate and incentivise the recipient to achieve high performance, and are aligned
with the Company’s short-term objectives and shareholder value creation.
The STI, if achieved, will be paid annually in cash depending on the eligible employee’s employment contract.
STI opportunities will vary from employee to employee depending on role and responsibility and will be set out
in employee’s employment contract. The maximum STI award for the Executive Director for 2021 is $200,000
and represents 67% of FY2021 total fixed remuneration (“TFR”) being subject to performance related criteria
On 20 July 2021, the Remuneration and Nomination Committee considered the achievement of the Executive
Director STI KPI’s at 30 June 2021 and approved a cash bonus payment of $150,000 to Mr Brett Smith. The
STI award represents 50% of Executive Director TFR for FY2021. There were no STI payments approved or
paid during FY2020.
13
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
15. Remuneration Report – Audited (continued)
The STI award threshold for the Directors Executives are subject to annual review of the Board of Directors.
KPIs will be set annually as part of the Annual Business Planning Cycle and are targeted to be finalised no
later than the 31 July of each financial year as follows:
KPIs for the Company and Executive Director are set and approved by the Board;
KPIs for Senior Executives are set by the Executive Director and approved by the Board;
KPIs will be reviewed by the Board to ensure that hurdles are objectively measurable and aligned with
Company strategy; and
KPI achievement may be subject to ‘gate way’ tests as itemised for a particular KPI (for example,
irrespective of performance, a safety KPI will not be deemed achieved in the event that the Company
experiences a fatality).
KPI Targets and Stretch Targets will generally be aligned with the Company’s strategic plan and may include
HSE metrics, financial metrics, delivery of projects and growth initiatives, sustainability initiatives and
improvements to Company systems and processes. KPI Targets are not the same as Budget Targets.
Philosophically, employees are paid their total fixed remuneration (“TFR”) for delivering budget performance
and are paid “at risk” compensation for delivering better than budget performance. Stretch performance should
be a level beyond this. Targets and Stretch Targets will be developed as part of the Annual Business Planning
Cycle. The Board is responsible for the determination of whether the KPI Targets or Stretch Targets have been
achieved and how much of the STI will be payable for each performance period. In making such determination
it may obtain external expert advice.
15.9 Equity Based Compensation – LTI
Long-term incentives reward Directors’ and Executives in a manner which aligns this element of remuneration
with the creation of shareholder wealth. As such LTI’s may be offered to Directors’ and Executives’ who can
influence the generation of shareholder wealth and thus have an impact on the Company’s performance.
The Company prohibits Directors’ or Executives’ from entering arrangements to protect the value of any
Company shares or options that the Director or Executive has become entitled to as part of their remuneration
package. This includes entering contracts to hedge their exposure.
There was no equity-based compensation issued to KMP during the financial year (2020: nil).
15.10 Executive Employment Arrangements and Service Contracts
Compensation and other terms of employment for KMP are formalised in contracts of employment. The major
provisions of each of the agreements relating to compensation are set out below.
A summary of the key terms of employment agreements for KMP is set out below. The Company may terminate
employment agreements immediately for cause, in which the executive is not entitled to any payment other
than the value of fixed remuneration and accrued leave entitlements up to the termination date.
14
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
15. Remuneration Report - Audited (continued)
Name
Fixed
Remuneration
Variable
STI
Super-
annuation
Resigned
Notice
period
(months)
Maximum
termination
payment
(months)
Directors
Mr Peter Gunzburg1
Mr Brett Smith2
Mr Patrick O’Connor1
Mr Grahame White1
Executives
Mr Michael
Spreadborough3
Mr Daniel Broughton4
Simon Rigby
Stephen Robinson
Fiona Van Maanen
$100,000
$300,000
$70,000
$70,000
-
$150,000
-
-
$2,500 / day
$100,000
$325,000
$375,000
$365,297
-
-
-
-
-
9.5%
9.5%
9.5%
9.5%
-
-
9.5%
9.5%
9.5%
-
-
-
-
-
-
4 Dec 21
4 Dec 21
4 Dec 21
-
6
-
-
1
-
1
3
3
-
6
-
-
-
-
6
6
6
1 On 20 July 2021, the Remuneration and Nomination Committee considered Non-Executive Director (“NED”)
remuneration and increased NED remuneration for the Chairman to $110,000 and other NEDs to $80,000with
effect from 1 July 2021.
2 On 20 July 2021, the Remuneration and Nomination Committee considered the achievement FY2021 STI
KPI’s and approved a cash bonus payment of $150,000 to Mr Brett Smith. The STI award represents 50% of
FY2021 TFR (exclusive of superannuation). On 28 July 2021, Mr Brett Smith’s TFR increased from $300,000
to $400,000 per annum exclusive of superannuation, plus a total STI award of up to 66% of TFR payable on
achievement of FY2022 Executive STI KPI’s.
3 Mr Michael Spreadborough was employed under a service agreement on a fixed day rate that is inclusive of
superannuation and any other employment entitlements. Mr Spreadborough resigned from the Company on 6
August 2021.
4 Mr Daniel Broughton provides Chief Financial Officer services under a separate service agreement between
Dragon Mining Limited and Metals X.
15.11 Equity Instruments
No options over ordinary shares in the Company were granted as compensation to KMP during the year and
no options vested during the financial year.
15.12 Modifications of Terms of Equity-Settled Share-Based Payment Transactions
No terms of equity-settled share-based payment transactions (including options and rights granted as
compensation to KMP) have been altered or modified by the issuing entity during the financial year.
15.13 Exercise of Options Granted as Compensation
During the financial year, no shares were issued on the exercise of options previously granted as
compensation to KMP.
15.14 Analysis of Options and Rights Over Equity Instruments Granted as Compensation
No options have been issued, granted, or will vest to KMP personnel of the Company.
15.15 Analysis of movements in options and rights
There were no options granted during the financial year ended 30 June 2021 and 30 June 2020 to KMP.
15
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
15. Remuneration Report – Audited (continued)
15.16 Shareholdings of Directors and Key Management Personnel
Ordinary Fully Paid Shares
Balance 1
July 2020
Granted as
Remuneration
Net Change
Other *
Balance 30
June 2021
Directors
Mr Peter Gunzburg
Mr Brett Smith
Mr Patrick O’Connor
Mr Grahame White
Executives
Mr Simon Rigby
Mr Stephen Robinson
Ms Fiona Van Maanen
Mr Daniel Broughton
Total
-
160,000
1,000,000
-
23,334
338,983
607,882
-
2,130,199
-
-
-
-
-
-
-
-
-
-
50,000
-
-
(23,334)
(338,983)
(607,882)
-
(920,199)
-
210,000
1,000,000
-
-
-
-
-
1,210,000
Ordinary Fully Paid Shares
Balance 1
July 2019
Granted as
Remuneration
Net Change
Other *
Balance 30
June 2020
Directors
Mr Patrick O’Connor
Mr Patrick Gunzburg
Mr Brett Lambert
Mr Anthony Polglase
Mr Brett Smith
Mr Grahame White
Mr Xingwang Bao
Executives
Mr Simon Rigby
Mr Stephen Robinson
Ms Fiona Van Maanen
Total
-
-
-
-
-
-
-
20,000
129,000
521,041
670,041
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
-
-
160,000
-
-
3,334
209,983
86,841
1,460,158
1,000,000
-
-
-
160,000
-
-
23,334
338,983
607,882
2,130,199
*Represents acquisitions and disposals on market and shares issued under the dividend reinvestment plan,
as well as departures and appointments.
16
15.17 Directors and Executive Officers Remuneration
In dollars
Directors
Mr Peter Gunzburg1
(Non-Executive Chairman)
Mr Brett Smith
(Executive Director)
Mr Grahame White1
(Non-Executive Director)
Mr Patrick O'Connor2
(Non-Executive Director)
Mr. Xingwang Bao3
(Non-Executive Director)
Mr. Brett Lambert3
(Independent Non-Executive Director)
Mr Anthony Polgase3
(Independent Non-Executive Director)
Total all specified Directors
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Specified Executives
2021
Mr Michael Spreadborough
2020
(Chief Executive Officer)
Mr Simon Rigby5
2021
(GM Geology & Business Development) 2020
Mr Stephen Robinson5
2021
2020
(GM Projects and Planning)
Ms Fiona Van Maanen5
2021
2020
(CFO and Company Secretary)
Mr Daniel Broughton6
2021
2020
(Chief Financial Officer)
2021
2020
2021
2020
Total all specified Directors and
Executives
Total all named Executives
Short-Term
Non-
Monetary
Benefits
AUD
Salary &
Fees
AUD
Bonuses
AUD
Long-Term
Benefits
Employee
Entitlements
AUD
Post-
Employment
Super-
annuation
Benefits
AUD
Share
Based
Payments
Options
AUD
Termination
Payments
98,172
-
294,677
46,237
70,833
-
110,167
270,221
-
-
2,151
55,054
2,192
55,054
578,192
426,566
591,777
359,663
171,878
400,437
169,231
389,793
170,358
391,726
50,000
-
1,153,244
1,541,619
1,731,436
1,968,185
-
-
-
-
-
-
4,276
2,816
-
-
-
-
-
-
4,276
2,816
10,928
1,661
7,517
7,130
7,327
10,858
7,517
11,053
-
-
33,289
30,702
37,565
33,518
-
-
150,000
-
-
-
-
-
-
-
-
-
-
-
150,000
-
-
-
-
-
-
-
-
-
-
-
-
-
150,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,103
17,999
11,840
32,876
15,715
8,831
-
-
39,658
59,706
39,658
59,706
9,326
-
42,994
4,392
6,729
-
6,806
6,893
-
-
204
5,230
219
5,230
66,278
21,745
-
-
16,328
38,042
16,077
20,833
16,851
30,783
-
-
49,256
89,658
115,534
111,403
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(36,838)
46,085
(45,660)
58,269
(44,591)
56,874
-
-
(127,089)
161,228
(127,089)
161,228
-
-
91,667
-
112,981
-
273,973
-
-
-
478,621
-
478,621
-
Total
Emoluments
AUD
107,498
-
487,671
50,629
77,562
-
121,249
279,930
-
-
2,355
60,284
2,411
60,284
798,746
451,127
602,705
361,324
262,655
509,693
271,796
512,629
439,823
499,267
50,000
-
1,626,979
1,882,913
2,425,725
2,334,040
1Appointed 10 July 2020.
2Resigned as Executive Chairman, reappointed Non-Executive Director 10 July 2020.
3Resigned 12 November 2020.
4Resigned 6 August 2021.
5Resigned 4 December 2020.
6Appointed 4 December 2020.
7Share based payments have been reversed as a result of resignations
Proportion of
Remuneration
Performance
Related
%
-
-
31%
-
-
-
-
-
-
-
-
-
-
-
19%
-
-
-
-
9%
-
11%
-
11%
-
-
-
9%
1%
7%
17
17
DIRECTORS’ REPORT (Continued)
For the year ended 30 June 2021
16.
Indemnification and Insurance of Directors, Officers and Auditors
The Company provides Directors’ and Officers’ liability insurance covering Directors’ and Officers of the
Company against liability in their role with the Company, except where:
The liability arises out of conduct involving a wilful breach of duty; or
There has been a contravention of Sections 232(5) or (6) of the Corporations Act 2001.
The Directors’ have not included details of the nature of the liabilities covered or the amount of the premium
paid in respect of this insurance, as such disclosure is prohibited under the terms of the contract.
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of
the terms of its audit engagement against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young during or since the financial year.
17. Lead Auditor’s Independence Declaration
The Directors have received confirmation from the auditor of Metals X that they are independent of the
Company.
A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001
is included on page 65 of this report.
18. Non-Audit Services
The following non-audit services were provided by the entity’s auditor, Ernst & Young. The Directors are
satisfied that the provision of non-audit is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service provided
means that auditor independence was not compromised.
Ernst & Young received or are due to receive the following amounts for the provision of non-audit services
(refer to note 22 of the consolidated financial statements):
Tax Compliance Services $0.104 million
19. Rounding
The amounts contained in this report and in the financial report have been rounded to the nearest $1,000
(unless otherwise stated), and where noted ($’000) under the option available to the Company under ASIC
Corporations (Rounding in Financial/Directors Report) Instrument 2016/191. The Company is an entity to
which the instrument applies.
Signed in accordance with a resolution of the Directors’.
Brett Smith
Executive Director
30 September 2021
18
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2021
Continuing operations
Revenue
Cost of sales
Gross profit
Contingent consideration income
Other income
General and administrative expenses
Commodity and foreign exchange (loss)/gain
Finance costs
Fair value change in financial assets
Share-based payment reversal/(charges)
Rehabilitation provision
Profit before tax
Income tax expense
Profit/(loss) for the period from continuing
operations
Discontinued operations
Notes
3
5(a)
4
4
5(b)
5(c)
5(d)
5(e)
21
17
6
2021
$'000
93,834
(75,145)
18,689
10,250
1,945
(5,775)
(1,866)
(2,999)
2,337
344
-
22,925
-
2020
$'000
73,243
(70,330)
2,913
-
448
(6,383)
673
(1,494)
(83)
(137)
(8,360)
(12,423)
-
22,925
(12,423)
Profit/(loss) for the period from discontinued operations
25
64,274
(67,918)
Profit/(loss) attributable to:
Members of the parent
87,199
(80,341)
Total comprehensive income/(loss) attributable to:
Members of the parent
87,199
(80,341)
Basic Earnings and diluted earnings/(loss) per
share attributable to the ordinary equity holders of
the parent (cents per share)
From continuing operations
From discontinued operations
Total
7
7
2.53
7.08
9.61
(1.46)
(7.99)
(9.45)
19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the year ended 30 June 2021
Notes
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Assets classified as held for sale
Convertible note receivable
Derivative financial instruments
Total current assets
Non-current assets
Other receivables
Convertible note receivable
Derivative financial instruments
Property, plant, and equipment
Mine properties and development costs
Exploration and evaluation expenditure
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Liabilities directly associated with assets classified as
held for sale
Provisions
Interest bearing liabilities
Total current liabilities
Non-current liabilities
Provisions
Interest bearing liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Share based payments reserve
Total equity
8
9
10
11
12
12
9
12
12
13
14
15
16
11
17
18
17
18
19
20
21
2021
$'000
13,472
23,427
20,526
570
4,648
360
2,332
65,335
3,457
37,246
3,091
36,034
37,884
352
118,064
183,399
8,675
43
3,531
17,364
29,613
12,456
2,684
15,140
44,753
138,646
2020
$'000
14,095
6,153
20,328
885
-
-
1,532
42,993
9,978
-
50
43,315
39,633
13,993
106,969
149,962
7,518
-
3,680
33,108
44,306
51,397
2,468
53,865
98,171
51,791
332,406
(221,597)
27,837
138,646
332,406
(308,796)
28,181
51,791
20
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
Cash flows from operating activities
Note
Receipts from customers
Payments to suppliers and employees
Interest received
Other income
Interest paid
Net cash flows from/(used in) operating activities
8
Cash flows from investing activities
Payments for property, plant, and equipment
Payments for mine properties and development
Payments for exploration and evaluation
Payments for other financial assets
Proceeds from sale of financial assets
Proceeds from disposal of subsidiary
Proceeds from sale of property plant and equipment
Proceeds from release of performance bond facility
Net cash flows from/(used in) investing activities
Cash flows from financing activities
Repayment of borrowings
Payment of lease and hire purchase liabilities
Payments for share issue costs
Payments for dividends
Proceeds from borrowings
Proceeds from share issue
Net cash flows (used in)/from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash at the beginning of the year
Cash and cash equivalents at the end of the year
8
2021
$'000
86,499
(79,197)
57
68
(3,023)
4,404
(12,618)
(8,500)
(1,549)
(30)
78
26,768
2,018
6,521
12,688
(47,985)
(3,039)
-
-
33,309
-
(17,715)
(623)
14,095
13,472
2020
$'000
147,468
(167,549)
441
230
(1,633)
(21,043)
(10,405)
(18,230)
(3,919)
-
155
-
319
795
(31,285)
(4,814)
(5,369)
(2,330)
(58)
34,899
32,731
55,059
2,731
11,364
14,095
21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2021
At 1 July 2019
Loss for the period
Other comprehensive income, net of tax
Total comprehensive loss for the period
Transactions with owners in their capacity as owners
Issue of share capital
Share issue costs
Other
Share-based payments
At 30 June 2020
At 1 July 2020
Profit for the period
Other comprehensive income, net of tax
Total comprehensive profit for the period
Transactions with owners in their capacity as owners
Issue of share capital
Share issue costs
Other
Share-based payments
At 30 June 2021
Issued capital
Accumulated losses
Share based
payments reserve
Total Equity
$'000
302,005
-
-
-
32,731
(2,330)
30,401
-
332,406
332,406
-
-
-
-
-
-
-
$'000
(228,456)
(80,340)
-
(80,340)
-
-
-
-
(308,796)
(308,796)
87,199
-
87,199
-
-
-
-
332,406
(221,597)
$'000
28,044
-
-
-
-
-
-
137
28,181
28,181
-
-
-
-
-
-
$'000
101,593
(80,340)
-
(80,340)
32,731
(2,330)
30,401
137
51,791
51,791
87,199
-
87,199
-
-
-
(344)
27,837
(344)
138,646
22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
1.
Corporate Information and Summary of Accounting Policies
The financial report of Metals X Limited (the “Company” or “Parent”) for the year ended 30 June 2021 was authorised
for issue in accordance with a resolution of the Directors on 30 September 2021.
The Company was incorporated and domiciled in Australia and is a for profit company limited by shares which are
publicly traded on the Australian Securities Exchange. The consolidated financial statements comprise the financial
statements of the Parent and its subsidiaries (the “Group”). The Company’s registered office address is Level 5, 197
St Georges Terrace, Perth WA 6000.
a)
Basis of preparation of the consolidated financial report
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board.
The financial report has been prepared on a historical cost basis, except for certain financial instruments measured
at fair value through profit and loss.
The amounts contained in the financial statements have been rounded to the nearest thousand dollars unless
otherwise stated (where rounding is applicable) under the option available to the Group under ASIC Corporations
(Rounding in Financial Report) Instrument 2016/191.
Both the functional and presentation currency of the Group is Australian dollars (A$).
b)
Statement of compliance
The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards
Board and International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board.
c)
New and amended accounting standards and interpretations
Since 1 July 2019, the Group has adopted all Accounting Standards and Interpretations effective from 1 July 2020.
The accounting policies adopted are consistent with those of the previous financial year. The Group has not early
adopted any standard, interpretation or amendment that has been issued but is not yet effective.
d)
Changes in accounting policies and disclosures
Certain new and amended accounting standards and interpretations have been issued that are not mandatory for
30 June 2021 reporting periods. These standards and interpretations have not been early adopted. The Company
has performed a preliminary assessment of the standards and interpretations below and anticipates no material
impact on the balances and transactions presented in these financial statements when they come into effect.
Reference to the Conceptual Framework – Amendments to IFRS 3 – Business Combinations (effective 1 January
2022)
The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains
or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent
Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply
the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present
obligation exists at the acquisition date.
At the same time, the amendments add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for
recognition at the acquisition date.
The amendments are intended to update a reference to the Conceptual Framework without significantly changing
requirements of IFRS 3. The amendments will promote consistency in financial reporting and avoid potential
confusion from having more than one version of the Conceptual Framework in use.
Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 (effective 1 January 2022)
The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment (PP&E),
any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to
be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from
selling such items, and the costs of producing those items, in profit or loss.
Classification of Liabilities as Current or Non-current – Amendments to IAS 1 (effective 1 January 2023)
The amendments clarify that if an entity’s right to defer settlement of a liability is subject to the entity complying with
specified conditions, the entity has a right to defer settlement of the liability at the end of the reporting period if it
complies with those conditions at that date.
The amendments also clarify that the requirement for the right to exist at the end of the reporting period applies
regardless of whether the lender tests for compliance at that date or later.
23
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
1.
Corporate Information and Summary of Accounting Policies (continued)
Amendments to IAS 37 - Onerous Contracts – Costs of Fulfilling a Contract (effective 1 January 2022)
The amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets to specify which costs an entity
needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a ‘directly
related cost approach’. The costs that relate directly to a contract to provide goods or services include both
incremental costs (e.g., the costs of direct labour and materials) and an allocation of costs directly related to contract
activities (e.g., depreciation of equipment used to fulfil the contract as well as costs of contract management and
supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are
explicitly chargeable to the counterparty under the contract.
The amendments are intended to provide clarity and help ensure consistent application of the standard. Entities that
previously applied the incremental cost approach will see provisions increase to reflect the inclusion of costs related
directly to contract activities, whilst entities that previously recognised contract loss provisions using the guidance
from the former standard, IAS 11 Construction Contracts, will be required to exclude the allocation of indirect
overheads from their provisions.
AIP IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter
(effective 1 January 2022)
The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative
translation differences using the amounts reported in the parent’s consolidated financial statements, based on the
parent’s date of transition to IFRS if no adjustments were made for consolidation procedures and for the effects of
the business combination in which the parent acquired the subsidiary. This amendment is also applied to an associate
or joint venture that elects to apply paragraph D16(a) of IFRS 1.
AIP IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
The amendment clarifies the fees that 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. These fees include only
those paid or received between the borrower and the lender, including fees paid or received by either the borrower
or lender on the other’s behalf. There is no similar amendment proposed for IAS 39.
An entity applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of
the annual reporting period in which the entity first applies the amendment.
Amendments to IFRS 4, IFRS 16, IFRS 7, IFRS 9 and IAS 39 - Interest Rate Benchmark Reform – Phase 2
The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered
rate is replaced with an alternative nearly risk-free interest rate.
Definition of Accounting Estimates - Amendments to IAS 8 (effective 1 January 2023)
The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies
and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop
accounting estimates.
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 (effective 1 January 2023)
The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the
requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’
accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about
accounting policy disclosures.
e)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Parent and its subsidiaries (the
‘Group') as at 30 June 2021. Control is achieved when the Group is exposed, or has rights, to variable returns from
its involvement with the investee and can affect those returns through its power over the investee. Specifically, the
Group controls an investee if and only if the Group has:
power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the
investee);
exposure, or rights, to variable returns from its involvement with the investee, and
the ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
1.
Corporate Information and Summary of Accounting Policies (continued)
the contractual arrangement with the other vote holders of the investee;
rights arising from other contractual arrangements; and
the Group’s voting rights and potential voting rights
The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income, and
expenses of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive
income from the date the Group gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent
of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit
balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with the Group’s accounting policies. All intra-Group assets and liabilities, equity, income, expenses,
and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
f) Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated
at the rate of exchange at the reporting date.
All exchange differences in the consolidated financial report are taken to the profit or loss.
g)
Other accounting policies
Significant and other accounting policies that summarise the measurement basis used and are relevant in
understanding of the consolidated financial statements are provided throughout the notes to the consolidated
financial statements.
h)
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset (i.e., an asset
that necessarily takes a substantial amount of time to prepare for its intended use or sale) are capitalised as part of
the cost of that asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds.
i)
Goods and service taxes (GST)
Revenues, expenses, and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item
as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the consolidated statement of financial position. Cash flows are included in the consolidated statement
of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities,
which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments
and contingencies are disclosed net of amounts of GST recoverable from, or payable to, the taxation authority.
j)
Significant accounting judgements, estimates and assumptions
The preparation of the consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the consolidated financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue, and expenses.
Management bases its judgements and estimates on historical experience, independent experts, and on other
various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying
values of assets and liabilities that are not readily apparent from other sources.
Management has identified the following critical accounting policies for which significant judgements have been made
as well as the following key estimates and assumptions that have the most significant impact on the consolidated
financial statements. Actual results may differ from these estimates under different assumptions and conditions and
may materially affect financial results or the financial position reported in future periods.
25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
1.
Corporate Information and Summary of Accounting Policies (continued)
Note
Key estimate or judgement
Revenue – note 3(a), 3(b) and 3(c)
Identification of the enforceable contract
Identification of performance obligations for arrangements subject
to CIF Incoterms
Principal versus agent considerations – freight/shipping services
Determining the timing of satisfaction of freight/shipping services
Property, plant and equipment and
depreciation - note 13
Life of mine method of depreciation provided incorporating
residual values and useful lives
Mine property and development and
amortisation - note 14
Exploration expenditure - note 15
Determination of mineral resources and ore reserves
Life of mine method of amortisation based on units of production
(“UOP”) resulting in an amortisation charge proportional to the
depletion of the economically recoverable mineral reserves
Impairment of capitalised mine development expenditure
Estimate of future capital development expenditure
Impairment of capitalised exploration and evaluation expenditure
Provisions - note 17
Convertible note receivable
Derivative financial instruments – note
2(g), 12 and 13
Future cash flows (amounts and timing) required to rehabilitate
Discount rate
Share price volatility
Determination of forecast commodity prices
Market interest rate
2.
Financial Risk Management Objectives and Policies
The Group’s principal financial instruments comprise receivables, payables, lease liabilities, cash and short-term
deposits, derivative financial instruments, and equity investments.
Risk exposures and responses
The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management
policy. The objective of the policy is to support the delivery of the Group’s financial targets while protecting future
financial security.
The Group enters derivative transactions, principally forward commodity swaps, from time to time, to manage the
commodity price risks arising from the Group’s operations. The Group did not have any derivative transactions as
at 30 June 2021 of these types. Historically, these derivatives provide economic hedges, but do not qualify for hedge
accounting and are based on limits set by the Board.
The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency risk, commodity
risk, credit risk, equity price risk and liquidity risk. The Group uses different methods to measure and manage
different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate, foreign
exchange risk and assessments of market forecasts for interest rate, foreign exchange, and commodity prices.
Ageing analysis and monitoring of receivables are undertaken to manage credit risk, liquidity risk is monitored
through the development of future rolling cash flow forecasts.
Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews and
agrees policies for managing each of the identified risks, including for interest rate risk, credit allowances and cash
flow forecast projections.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis
of measurement and the basis on which income and expenses are recognised, in respect of each class of financial
asset, financial liability and equity instrument are disclosed in the notes to the consolidated financial statements.
The accounting classification of each category of financial instruments, as defined in the notes to the consolidated
financial statements, and their carrying amounts, are set out below:
26
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
2.
a)
Financial Risk Management Objectives and Policies (continued)
Interest rate risk
The Group’s exposure to risks of changes in market interest rates relate primarily to the Group’s interest-bearing
loans, trade receivables at fair value through the profit and loss, financial assets at fair value through profit or loss,
convertible note receivable, other receivables, and cash balances. The Group’s policy is to manage its interest cost
using fixed rate debt where possible.
The Asia Cheer Trading (ACT) loan facility has a fixed interest rate that is on commercial terms. The Group regularly
reviews its interest rate exposure. Within this analysis consideration is given to potential renewals of existing
positions, alternative financing positions and the mix of fixed and variable interest rates. The following sensitivity
analysis is based on the interest rate risk exposures in existence at the reporting date. The sensitivity analysis is
for variable rate interest bearing loans and cash balances.
At 30 June 2021, if interest rates had moved by a reasonably possible 0.25%, as illustrated in the table below, with
all other variables held constant, post tax profits and equity would have been affected as follows:
Judgement of reasonably
possible movements:
+ 0.25% (25 basis points)
- 0.25% (25 basis points)
Post tax profit
higher/(lower)
Other comprehensive income
higher/(lower)
2021
$’000
17
(17)
2020
$’000
(23)
23
2021
$’000
-
-
2020
$’000
-
-
A sensitivity of +0.25% or -0.25% has been selected as this is considered reasonable given the current level of short-
term and long-term interest rates. The movements in profit are due to possible higher or lower interest payable or
receivable from variable rate interest bearing loans and cash balances.
At the reporting date the Group’s exposure to interest rate risk for classes of financial assets and financial liabilities
is set out below.
2021 ($’000)
Financial assets
Cash and cash equivalents
Trade receivables at fair value
through the profit and loss
Other receivables
Convertible note receivable
Financial assets at fair value
through profit or loss
Financial liabilities
Trade and other payables
Interest bearing liabilities
Net financial assets/(liabilities)
2020 ($’000)
Financial assets
Cash and cash equivalents
Trade receivables at fair value
through the profit and loss
Other receivables
Other financial assets
Commodity forward contracts
Financial liabilities
Trade and other payables
Interest bearing liabilities
Net financial assets/(liabilities)
Floating
interest
12,869
9,147
-
-
-
26,016
-
-
-
22,016
Fixed
interest
Non-interest
bearing
Total carrying
amount
60
-
11,000
22,095
-
33,155
-
(20,048)
(20,048)
14,161
543
-
-
15,511
5,423
21,477
(8,675)
-
(8,675)
12,802
13,472
9,147
11,000
37,606
5,423
76,648
(8,675)
(20,048)
(28,723)
48,979
Floating
interest
Fixed
interest
Non-interest
bearing
Total carrying
amount
9,674
1,812
4,077
-
1,532
17,095
-
(30,186)
(30,186)
(13,091)
74
-
-
9,978
-
10,052
-
(5,390)
(5,390)
4,662
4,347
-
266
-
-
4,613
(7,518)
-
(7,518)
(2,905)
14,095
1,812
4,342
9,978
1,532
31,759
(7,518)
(35,576)
(43,094)
(11,335)
27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
2.
b)
Financial Risk Management Objectives and Policies (continued)
Credit risk
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The
Group’s maximum exposures to credit risk at reporting date in relation to each class of financial asset is the carrying
amount of those assets as indicated in the consolidated statement of financial position.
Credit risk is managed on a Group basis. Credit risk predominantly arises from cash, cash equivalents, derivative
financial instruments, deposits with banks and financial institutions and receivables.
The Group has in place policies that aim to ensure that derivative counterparties and cash transactions are limited
to high credit quality financial institutions and that the amount of credit exposure to any one financial institution is
limited as far as is considered commercially appropriate. The credit quality of financial assets that are neither past
due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information
about counterparty default rates:
Cash and cash equivalents and other financial assets are held with ANZ Bank and the National Australia Bank,
Australian Banks with an AA- credit rating (Standard & Poor’s). Significant concentrations of credit risk are in relation
to cash and cash equivalents with Australian banks. Receivable balances are monitored on an ongoing basis with
the result that the Group does not have a significant exposure to bad debts.
The Group does not hold any credit derivatives to offset its credit exposure.
The Group trades only with recognised, creditworthy third parties and as such collateral, letters of credit or other
forms of credit insurance is not requested nor is it the Group’s policy to securitise its trade and other loans and
receivables. The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers
are in several jurisdictions and operate in largely independent markets.
At 30 June 2021, the Group had two customers (2020: two customers) that each owed the Group $8,899,000 and
$248,000 respectively and accounted for approximately 100% (2020: 29%) of all receivables owing.
At 31 June 2021, there are $4.031million trade receivables at amortised cost that are past due.
c)
Equity security price risk
The Group’s revenues may be exposed to equity security price fluctuations arising from investments in equity
securities. At 30 June 2021, the Group did not hold any listed equity securities and the Groups investments in unlisted
equity securities is not considered material.
d)
Foreign currency risk
As a result of tin concentrate sales receipts being denominated in US dollars, the Group’s cash flows can be affected
by movements in the US dollar/Australian dollar exchange rate.
At the balance date the Group had the following exposure to US dollar foreign currency:
Cash and cash equivalents
Trade and other receivables
2021
$’000
543
9,147
9,690
2020
$’000
4,347
1,812
6,159
At 30 June 2021, if foreign currency rates had moved by a reasonably possible 10%, as illustrated in the table below,
with all other variables held constant, post tax profits and equity would have been affected as follows:
Judgement of reasonably
possible movements:
A$/US$ Rate +10%
A$/US$ Rate -10%
Post tax profit
higher/(lower)
Other comprehensive income
higher/(lower)
2021
$’000
969
(969)
2020
$’000
616
(616)
2021
$’000
-
-
2020
$’000
-
-
A sensitivity of +10% or -10% has been selected as this is considered reasonable given recent fluctuations in foreign
currency rates and management’s expectations of future movements. The overall sensitivity for post-tax profits in
2021 is higher than 2020 due to an increase in the value exposed to fluctuations in US dollar foreign currency.
28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
2.
e)
Financial Risk Management Objectives and Policies (continued)
Commodity price risk
The Group is exposed to movements in the tin price. As part of the risk management policy of the Group, a variety
of financial instruments (such as forward commodity swaps) may be used from time to time to reduce exposure to
unpredictable fluctuations in the project life revenue streams. At 30 June 2021, the Group did not hold any commodity
derivatives (30 June 2020: $1.532 million).
f)
Liquidity risk
Liquidity risk arises from the financial liabilities of the Group and the subsequent ability to meet the obligations to
repay the financial liabilities as and when they fall due.
The Group’s objective is to maintain a balance between continuity of funding and flexibility using finance and hire
purchase leases.
The tables below reflect all contractually fixed payables for settlement repayment resulting from recognised financial
liabilities as of 30 June 2021. Cash flows for financial liabilities without fixed amount or timing are based on the
conditions existing as 30 June 2021.
The remaining contractual maturities of the Group’s financial liabilities are:
2021 ($’000)
<6 months
6-12 months
1-5 years
>5 years
Total
Financial liabilities
Trade and other payables
Lease Liabilities
Interest bearing loans
Total outflow
(8,675)
(832)
(15,528)
(25,035)
-
(1,004)
-
(1,004)
-
(2,684)
-
(2,684)
-
-
-
-
(8,675)
(4,520)
(15,528)
(28,723)
2020 ($’000)
<6 months
6-12 months
1-5 years
>5 years
Total
Financial liabilities
Trade and other payables
Lease Liabilities
Interest bearing loans
Total outflow
g)
Fair values
(7,518)
(1,979)
(31,510)
(41,007)
-
(1,071)
-
(1,071)
-
(2,576)
-
(2,576)
-
-
-
-
(7,518)
(5,626)
(31,510)
(44,654)
For all financial assets and liabilities recognised in the consolidated statement of financial position, carrying amount
approximates fair value unless otherwise stated in the applicable notes.
The methods for estimating fair value are outlined in the relevant notes to the consolidated financial statements.
The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise:
Level 1 -
the fair value is calculated using quoted prices in active markets.
Level 2 -
Level 3 -
the fair value is estimated using inputs other than quoted prices included in level 1 that are
observable for the asset or liability, either directly (as prices) or indirectly (derived from price).
the fair value is estimated using inputs for the asset or liability that are not based on observable
market data.
29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
2.
Financial Risk Management Objectives and Policies (continued)
30 June 2021
Valuation
technique market
observable
inputs
(Level 2)
$'000
Valuation technique
non-market observable
inputs
(Level 3)
$'000
Quoted
market price
(Level 1)
$'000
Trade receivables at fair value1
Unlisted equity investments2
Convertible note receivable3
Derivative financial instruments4
-
-
-
-
-
9,147
30
-
-
9,177
Total
$'000
9,147
30
-
-
37,606
37,606
5,393
42,999
5,393
52,176
30 June 2020
Quoted
market price
(Level 1)
$'000
Valuation technique
market observable
inputs
(Level 2)
$'000
Valuation technique
non-market
observable inputs
(Level 3)
$'000
-
50
-
50
1,812
-
1,532
3,344
-
-
-
-
Total
$'000
1,812
50
1,532
3,394
Trade receivables at fair value1
Listed equity investments2
Derivative financial instruments
1The fair value of trade receivables relates to tin concentrate provisionally sold at the reporting date. The fair value is
based on the applicable KLM or LME forward prices.
2Quoted market price represents the fair value determined based on quoted prices on active markets as at the
reporting date without any deduction for transaction costs. The fair value of equity investments and derivatives are
based on quoted market prices. Unlisted equity investments are recognised at cost.
3The carrying value of the convertible note receivable on inception was equivalent to $35.070 million and on 30 June
2021 $37,606 million (2020: nil). The change in fair value resulted from $2.536 million in remeasurement. To estimate
the fair value of the convertible notes, the Group uses a discounted cash flow (“DCF”) technique, applying market
interest rates.
In addition, the Group adds the fair value of the conversion option. Exercising the conversion option would result in
the Group receiving 101.380 million shares in Cyprium Metals Limited. The fair value is estimated using a Black &
Scholes valuation model (“B&S Model”). The inputs to these models and techniques require a degree of judgement,
including consideration of the risk-free rates, share price volatility and market interest rates.
The inputs used to value the convertible notes at 30 June 2021 are as follows:
Expected volatility
Risk-free interest rate
Expected life
Options exercise price
Share price at grant date
Expiry date/maturity date
Face value of convertible notes
Market interest rates
Fair value per instrument
Number of instruments
Total Fair Value at 30 June 2021
B&S Model
100%
0.77%
3.75 years
$0.3551
$0.250
30 Mar 2025
-
-
$0.153
101,379,893
$15.511m
DCF
Total Fair Value at
30 June 2021
-
-
3.75 years
-
-
30 Mar 2025
$36.000 million
20%
-
-
$22.095m
$37.606m
30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
2.
Financial Risk Management Objectives and Policies (continued)
4The derivative financial assets are 40.6 million options, consisting of two tranches of 20.3 million options each, to
acquire shares in Cyprium Metals Limited. Exercising the options can result in bonus shares being awarded to the
Group depending on the copper price on the date of exercise. The fair value of the options on inception was equivalent
to $4.542 million and on 30 June 2021, $5.393 million (2020: nil). The change in fair value of $0.851 million was the
result of remeasurement using an equivalent valuation technique. The fair value of the options was determined using
a B&S Model, which considers factors including the option’s exercise prices, the volatility of the underlying share
price, the risk-free interest rate, the market price of the underlying share at measurement date and the expected life
of the options. To accommodate the additional award, the Group has increased the Black & Scholes fair value by
estimating the fair value of the bonus shares that are most likely to be awarded at the exercise dates, which is judged
to be the expiry dates. The number of bonus shares to be awarded is estimated with reference to forecast copper
prices on the expiry dates and applying the pre-set factor. The additional fair value is then calculated by applying that
factor to the number of options converted and multiplying by the price of Cyprium shares on the measurement dates.
The inputs used to value the options at 30 June 2021 are as follows:
T1
Options
T2
Options
T1
Bonus
Shares
T2
Bonus
Shares
Total
Fair
Value at
30 June
2021
Expected volatility
Risk-free interest rate
Expected life of options
Options exercise price
Share price at measurement
date
Forecast copper price per tonne
100%
0.06%
100%
0.06%
0.75 years
1.75 years
$0.3141
$0.3551
$0.250
$0.250
$0.205
$0.250
$US 8,752
$US 8,204
Bonus share factor / award
1.2x
1.2x
4.045 m
4.045 m
Expiry date
30 Mar 2022
30 Mar 2023
Fair value as at 30 June 2021
$1.338m
$2.027m
$1.014m
$1.014m
$5.393m
The effects of fair value changes are reflected in the consolidated statement of comprehensive Income.
Significant estimates and judgments – level 3 inputs
The following significant estimates and judgments were made for inputs used in determining the fair value of financial
instruments categorised as level 3:
(i)
Volatility for buyer options and conversion feature
Management used an external expert to assist with the estimate of volatility for the purposes of its Black Scholes
valuation technique. Volatility was estimated based on the performance of the shares of the loaned party, Cyprium
Metals Limited, over a historical period equivalent to that of the time to expiry of the option being valued.
(ii)
Market interest rates
Management used an external expert to assist with the estimate of the market interest rate of borrowing. The estimate
compared the terms and conditions of the Group’s convertible note to a lending transaction that was judged to have
the most similar characteristics. The lending rate in this comparable transaction was 15%. The rate was benchmarked
to other lending transactions that were similar in terms and conditions but not as alike. The rate was then risk-adjusted
by adding 5% to estimate a market interest rate of 20% of which management has adopted in its valuation technique.
The risk adjustment was estimated to address differences between the stages of operations when comparing the
loaned party in the comparative lending arrangement to that of the Group’s counterparty, Cyprium Metals Limited. A
range of 15% - 25% was then estimated to be appropriate to address inherent estimation uncertainty.
(iii)
Copper price forecasts
Management used an external expert to assist with the estimate of future copper prices. Future copper prices were
estimated based on the mean of results from more than 40 energy and metals analysts.
31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
2.
Financial Risk Management Objectives and Policies (continued)
A quantitative sensitivity analysis as at 30 June 2021 is shown below:
Instrument
Convertible
note
receivable
Valuation technique
DCF
Significant
unobservable inputs
Market interest
rates
Value/
20%
Black & Scholes
Volatility
100%
Derivative
financial
instruments –
T1
Black Scholes model plus
share price * estimated
bonus shares to be
awarded based on
forecast copper price
Copper price
forecasts on 31 March
2022
US$8,752
Volatility
100%
Derivative
financial
instruments –
T2
Black & Scholes model
plus share price *
estimated bonus shares
to be awarded based on
forecast copper price
Copper price
forecasts on 31 March
2023
US$8,204
Volatility
100%
Sensitivity of the input to fair
value
1.5% change in the market
interest rate would result in a
change in fair value by +/-$1.000
million.
+/(-) 10% change in volatility
would result in a change in fair
value of $1.355 and ($1.484)
million.
US$500 per tonne increase
would result in an increase in fair
value by $0.500 million.
US$500 per tonne decrease
would not result in a change in
the fair value estimate.
+/(-)10% change in volatility
would result in a change in fair
value of $0.172 million and
($0.174) million.
US$500 per tonne increase
would not result in a change in
the fair value estimate.
US$500 per tonne decrease
would result in a decrease in fair
value by $0.500 million.
+/(-)10% change in volatility
would result in a change in fair
value of $0.242 million and
($0.251) million.
h)
Changes in liabilities arising from financing activities
The ‘Other’ column includes the effect of reclassification of non-current portion of interest-bearing loans and
borrowings, including obligations under finance leases and hire purchase contracts to current due to the passage of
time. The Group classifies interest paid as cash flows from operating activities.
1 July
2020
$'000
Net
Transfers &
New Leases Disposals
New
loans
Other
30 June
2021
$'000
Payments
Current interest -bearing
loans and borrowings
Non-current interest -
bearing loans and
borrowings
Total liabilities from
financing activities
33,108
(47,985)
(1,068)
-
33,309
-
17,364
2,468
(3,039)
3,255
-
-
-
2,684
35,576
(51,024)
2,187
-
33,309
-
20,048
1 July
2019
$'000
Payments
Net
Transfers &
New Leases
Disposals
New
loans
Other
30 June
2020
$'000
Current interest -bearing
loans and borrowings
Non-current interest- bearing
loans and borrowings
Total liabilities from financing
activities
5,495
(10,184)
4,266
(4,390)
35,000
2,921
33,108
4,634
-
755
-
-
(2,921)
2,468
10,129
(10,184)
5,021
(4,390)
35,000
-
35,576
32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
3.
Revenue
Tin concentrate sales
Recognition and measurement
2021
$’000
93,834
2020
$’000
73,243
The Group is principally engaged in the business of producing tin in concentrate. Revenue from contracts with
customers is recognised when control of the goods or services is transferred to the customer at an amount that
reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.
The Group has generally concluded that it is the principal in its revenue contracts because it typically controls the
goods or services before transferring them to the customer.
Based on the current contractual terms, revenue is recognised when control passes to the customer, which occurs
at a point in time when the metal in concentrate physically arrives at the customer’s works for tin concentrate.
Revenue is measured as the amount to which the Group expects to be entitled, being the estimate of the price
expected to be received at the end of the Quotational Period (QP), and a corresponding trade receivable is
recognised.
The Group’s sales of metal in concentrate allow for price adjustments based on the market price at the end of the
relevant QP stipulated in the contract. These are referred to as provisional pricing arrangements and are such that
the selling price for metal in concentrate is based on prevailing spot prices on a specified future date after shipment
to the customer. Adjustments to the sales price occur based on movements in quoted market prices up to the end
of the QP. The QP for tin concentrate is not expected to result in a material adjustment due to the short period
between the point of control of the concentrate passes to the customer and the end of the QP.
For the provisional pricing arrangements, any future changes that occur over the QP are embedded within the
provisionally priced trade receivables and are, therefore, within the scope of AASB 9 Financial Instruments (“AASB
9”) and not within the scope of AASB 15 Revenue from Contracts with Customers (“AASB 15”).
Revenue is initially recognised based on the most recently determined estimate of metal in concentrate using the
expected value approach based on initial internal assay and weight results. The Group has determined that it is
highly unlikely that a significant reversal of the amount of revenue recognised will occur due to variations in assay
and weight results. Subsequent changes in the fair value based on the customer’s final assay and weight results
are recognised in revenue at the end of the QP.
For CIF arrangements, the transaction price (as determined above) is allocated to the metal in concentrate and
shipping services using the relative stand-alone selling price method. Under these arrangements, a portion of
consideration is received from the customer at, or around, the date of shipment under a provisional invoice.
Therefore, some of the upfront consideration that relates to the shipping services yet to be provided is deferred.
This is generally not material at the balance sheet date. It is then recognised as revenue over time using an output
method (being days of shipping/transportation elapsed) to measure progress towards complete satisfaction of the
service as this best represents the Group’s performance. This is on the basis that the customer simultaneously
receives and consumes the benefits provided by the Group as the services are being provided. The costs associated
with these freight/shipping services are also recognised over the same period as incurred.
Key estimates and judgements
Revenue from contracts with customers
a)
Identification of the enforceable contract
For tin in concentrate (metal in concentrate) sales, there are master services agreements with key customers that
set out the general terms and conditions governing any sales that occur. The customer is only obliged to purchase
tin in concentrate when it places an order for each shipment. Therefore, the enforceable contract has been
determined to be each purchase order.
b)
Identification of performance obligations for arrangements subject to CIF Incoterms
A proportion of the Group’s metal in concentrate sales subject to CIF Incoterms, whereby the Group is responsible
for providing freight/shipping services. The freight/shipping services are a promise to transfer services in the future
and are part of the negotiated exchange between the Group and the customer. The Group determined that both the
metal in concentrate and the freight/shipping services are capable of being distinct as the customer can benefit from
both products on their own. The Group also determined that the promises to transfer the metal in concentrate and
the freight/shipping services are distinct within the context of the contract. Consequently, the Group allocated a
portion of the transaction price to the metal in concentrate and the freight/shipping services based on relative stand-
alone selling prices.
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
3.
c)
Revenue (continued)
Principal versus agent considerations – freight/shipping services
As noted above, in some arrangements subject to CIF Incoterms, the Group is responsible for providing
freight/shipping services. While the Group does not actually provide nor operate the vessels, the Group has
determined that it is principal in these arrangements because it has concluded it controls the specified services
before they are provided to the customer. This is on the basis that the Group obtains control of a right to
freight/shipping services after entering into the contract with the customer, but before those services are provided
to the customer. The terms of the Group’s contract with the service provider give the Group the ability to direct the
service provider to provide the specified services on the Group’s behalf.
In addition, the Group has concluded that the following indicators provide evidence that it controls the
freight/shipping services before they are provided to the customer:
The Group is primarily responsible for fulfilling the promise to provide freight/shipping services. Although the
Group has hired a service provider to perform the services promised to the customer, it is the Group itself
that is responsible for ensuring that the services are performed and are acceptable to the customer (i.e., the
Group is responsible for fulfilment of the promise in the contract, regardless of whether the Group performs
the services itself or engages a third-party service provider to perform the services).
The Group has discretion in setting the price for the services to the customer as this is negotiated directly
with the customer.
d)
Determining the timing of satisfaction of freight/shipping services
The Group concluded that revenue for freight/shipping services is to be recognised over time because the customer
simultaneously receives and consumes the benefits provided by the Group. The fact that another entity would not
need to re-perform the freight/shipping services that the Group has provided to date demonstrates that the customer
simultaneously receives and consumes the benefits of the Group’s performance as it performs. The Group
determined that the input method is the best method for measuring progress of the freight/shipping services because
there is a direct relationship between the Group’s effort (i.e., time elapsed) and the transfer of service to the
customer. The Group recognises revenue on the basis of the time elapsed relative to the total expected time to
complete the service.
4.
Contingent Consideration, Interest Income and Other Income
Contingent consideration income (i)
Interest income (ii)
Other income
Total other income
2021
$’000
10,250
1,886
59
1,945
2020
$’000
14
434
-
448
(i)
Includes contingent consideration income of $10.000 million representing the copper price contingent
payment (“Copper Payment”), included in the Mt Gordon Sale Agreement transacted in 2015 and payable by
Capricorn Copper Holding Ltd (“CCH”). On 24 December 2020, the Company entered into a binding term
sheet with Capricorn Copper Holdings Pty Ltd and its parent entity, EMR Capital Investment (No. 6B) Pte Ltd,
detailing the material terms and timing for payment of the Copper Payment. On 1 April 2021, the Company
announced that it has agreed to an extension of time and payment terms in exchange for an agreed fee of
$0.250, plus interest of $0.750 million. The Copper Payment was received on 8 July 2021. Refer to note 29
Significant Events After Period End.
Reconciliation of contingent consideration income
Copper Payment
Agreed extension fee
Interest income (ii)
Total
2021
$’000
10,000
250
750
11,000
(ii)
Interest income is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset. Interest income
includes $0.750 million interest on the Copper Payment and income and accretion on the convertible notes.
34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
5.
Expenses
a)
Cost of sales
Salaries, wages expense and other employee benefits
Superannuation expense
Mining
Processing
Other production costs
Changes in stockpiles
Write down in value of stores inventory to NRV
Royalty expense
Depreciation - property, plant, and equipment
Depreciation - buildings
Mine properties and development costs amortisation
Total cost of sales
b)
General and administration expenses
Salaries and wages expense
Directors' fees and other benefits
Superannuation expense
Other employee benefits
Consulting expenses
Travel and accommodation expenses
Net loss/(gain) on sale of assets
Administration costs
Depreciation – other assets
Total general and administration expense
c)
Commodity and foreign exchange
Foreign exchange loss/(gain)
Forward commodity swaps
Total commodity and foreign exchange
d)
Finance costs
Interest
Borrowing costs
Unwinding of rehabilitation provision discount
Total finance costs
e)
Fair value change in financial assets
Fair value change in financial assets through profit and loss (note 12)
Total fair value change in financial assets
Recognition and measurement
2021
$’000
14,223
1,351
27,940
14,706
3,956
(5,557)
207
3,957
3,784
466
10,112
75,145
1,925
623
240
14
1,548
131
108
926
260
5,775
409
1,457
1,866
770
2,199
30
2,999
(2,337)
(2,337)
2020
$’000
13,027
1,238
23,846
15,292
3,411
(1,615)
41
1,400
3,231
451
10,009
70,330
2,618
560
299
34
2,020
237
(558)
940
233
6,383
171
(844)
(673)
1,355
102
37
1,494
83
83
Salaries, wages, and other employee benefits are recognised as and when employees render their services.
Expenses for non-accumulating personal leave are recognised when the leave is taken and measured at the rates
paid or payable. Refer to note 17 for the accounting policy relating to short term and long-term employee benefits.
Provisions and other payables are discounted to their present value when the effect of time value of money is
significant. The impact of the unwinding of these discounts is reported in finance costs.
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
6.
Income Tax
(a) Major components of income tax expense/(benefit):
Income statement
Current income tax expense
Current income tax expense/(benefit)
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to origination and reversal of temporary differences in current
year
(Recognition)/derecognition of carry forward losses and other
temporary differences
Income tax reported in the income statement
2021
$'000
2020
$'000
13,560
-
(25,432)
1,723
11,892
629
(25,452)
23,080
-
-
(b) A reconciliation of income tax benefit and the product of accounting loss before income tax multiplied by
the Group's applicable income tax rate is as follows:
Total accounting profit/(loss) before income tax
87,199
(80,340)
At statutory income tax rate of 30% (2020: 30%)
26,160
(24,102)
Non-deductible items
Share-based payments
Sundry items
Deductible items
(Derecognition)/recognition of net deferred tax assets not previously
recognised
Income tax expense/(benefit) reported in income the statement of
comprehensive income
(103)
6
(611)
(25,452)
41
3
(745)
24,803
-
-
36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
6.
Income Tax (continued)
Deferred income tax at 30 June relates to the following:
Deferred tax liabilities
Exploration
Deferred mining
Mine site establishment and refurbishment
Consumables
Prepayments
Diesel rebate
Non-current financial assets
Derivative held for trading
Gross deferred tax liabilities
Deferred tax assets
Property, plant and equipment
Derivative Financial Instruments
Inventories
Legal costs
Accrued expenses
Provision for employee entitlements
Provision for fringe benefits tax
Provision for rehabilitation
Unrecognised timing differences
Gross deferred tax assets
Deferred tax income/(expense)
Statement of
Financial Position
Statement of Other
Comprehensive Income
2021
$'000
(1,207)
(9,179)
(1,800)
(1,777)
-
(18)
-
-
(13,981)
9,168
-
333
274
38
1,308
3
3,503
(646)
13,981
2020
$'000
(4,040)
(9,052)
(2,729)
(8,451)
-
(16)
361
-
(23,927)
14,731
(460)
5,408
149
47
1,330
5
15,194
(12,477)
23,927
2021
$'000
(2,833)
127
(929)
(6,674)
-
2
361
-
5,563
(460)
5,075
(125)
9
22
2
11,691
2020
$'000
1,156
(255)
(605)
(669)
(2)
(39)
986
26
1,127
460
106
(132)
-
1,411
(6)
(2,909)
11,831
655
At 30 June 2021, there are unrecognised losses of $240,199,000 (2020: $254,180,000) for the Group, of which $156,354,000 (2020: $156,354,000) are subject to a restricted rate of
utilisation.
37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
6.
Income Tax (continued)
Recognition and measurement
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted at the reporting date in the countries where the Group operates and generates taxable income.
Current income tax relating to items recognised directly in equity is recognised in equity and not in the consolidated
statement of comprehensive income. Management periodically evaluates positions taken in the tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
Deferred tax
Deferred tax is provided for using the balance sheet full liability method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
in respect of taxable temporary differences associated with investments in subsidiaries, associates, and
interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and
it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised
except:
when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; and
in respect of the deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which
the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax
asset to be utilised. Unrecognised income taxes are reassessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the profit and loss.
Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and
the same taxation authority.
Tax consolidation legislation
Metals X Limited and its wholly owned Australian controlled entities have implemented the tax consolidation
legislation as of 1 July 2004. The head entity, Metals X Limited and the controlled entities in the tax consolidated
group continue to account for their own current and deferred tax amounts. The Group has applied the group allocation
approach in determining the appropriate amount of current taxes and deferred taxes to allocate to members of the
tax consolidated group. Members of the group have entered into a tax sharing agreement that provides for the
allocation of income tax liabilities between the entities should the head entity default on its tax payments obligations.
No amounts have been recognised in the consolidated financial statements in respect of this agreement on the basis
that the possibility of default is remote.
38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
6.
Income Tax (continued)
Tax consolidation legislation (continued)
Members of the group have also entered into tax sharing agreements. The tax funding agreement provides for the
allocation of current taxes to members of the tax consolidated group. The allocation of taxes under the tax funding
agreement is recognised as an increase/decrease in the controlled entities intercompany accounts with the tax
consolidated group head company, Metals X Limited. The nature of the tax funding agreement is such that no tax
consolidation contributions by or distributions to equity participants are required.
7.
Earnings Per Share
The following reflects the data used in the basic and diluted earnings per share computations.
For basic and diluted earnings/(loss) per share:
Profit/(loss) attributable to continuing operations ($’000)
Profit/(loss) attributable to discontinued operations ($’000)
Weighted average number of ordinary shares outstanding during the period
used in the calculation of basic and diluted earnings/(loss) per share
Basic and diluted earnings/(loss) per share (cents)
From continuing operations
From discontinued operations
Total
Recognition and measurement
2021
2020
22,925
64,274
87,199
(12,422)
(67,644)
(80,340)
907,266,067
849,817,790
2.53
7.08
9.61
(1.46)
(7.99)
(9.45)
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any
costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average
number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent adjusted for:
cost of servicing equity (other than dividends) and preference share dividends;
the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised; and
other non-discriminatory changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares.
The result is divided by the weighted average number of ordinary shares and dilutive potential ordinary shares,
adjusted for any bonus element.
The Company had 488,024 (2020: 11,984,332) share options on issue which are anti-dilutive and are therefore not
required to be included in the calculation of diluted earnings per share.
There have been no transactions involving ordinary shares or potential ordinary shares since that would significantly
change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and
before the completion of these consolidated financial statements.
39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
8.
Cash and Cash Equivalents
Cash at bank and in hand - denominated in AUD
Cash at bank and in hand - denominated in USD
Short-term deposits
Total
2021
$'000
12,869
543
60
2020
$'000
9,674
4,347
74
13,472
14,095
Short-term deposits are made for varying periods of between one day and three months, depending on the immediate
cash requirements of the Group, and earn interest at the respective short-term deposit rates.
Refer to note 2(b) for more details on the Group’s credit risk management practices. As all deposits are on demand
or have maturity dates of less than twelve months, the Group has assessed the credit risk on these financial assets
using lifetime expected credit losses. In this regard, the Group has concluded that the probability of default is
insignificant.
Recognition and measurement
Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in hand and
short-term deposits that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value.
Reconciliation of net profit after income tax to net cash flows from operating activities
Profit/(loss) after income tax
Amortisation and depreciation
Impairment reversal in discontinued operations – note 25
Fair value change in financial assets
Borrowing costs
Impairment loss on assets
Share based payments
Rehabilitation expense
Exploration and evaluation expenditure written off
Gain on disposal of property, plant, and equipment
Gain on disposal of Copper asset portfolio – note 25
Interest accrued on convertible note
Changes in assets and liabilities
(Increase)/decrease in inventories
(Increase)/decrease in trade and other receivables and prepayments
Increase/(decrease) in trade and other creditors
Decrease in provisions
Net cash flows from/(used in) operating activities
2021
$'000
87,199
14,651
(15,753)
(2,337)
-
-
(344)
(587)
-
(432)
(60,930)
(1,054)
20,413
(198)
(16,860)
1,157
(108)
4,404
2020
$'000
(80,340)
23,508
-
83
102
15,363
137
8,587
105
(319)
-
-
(32,774)
23,868
10,431
(17,887)
(4,681)
(21,043)
40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
9.
Trade and Other Receivables
Current
Trade receivables at fair value through profit or loss (i)
Contingent consideration receivable – Mt Gordon (ii)
Other receivables at amortised cost (iii)
Non-current
2021
$’000
9,147
11,000
3,280
23,427
2020
$’000
1,811
-
4,342
6,153
Other receivables – performance bond facility (iv)
3,457
9,978
(i)
On 30 June 2021, tin concentrate sales totalling 520 tonnes remained open to price adjustment (2020: 303
tonnes).
Trade receivables (subject to provisional pricing) are non-interest bearing but are exposed to future commodity
price movements over the quotational period (“QP”) and are measured at fair value through profit or loss up
until the date of settlement. These trade receivables are initially measured at the amount which the Group
expects to be entitled, being the estimate of the price expected to be received at the end of the QP. For tin
concentrate 80% - 85% of the provisional invoice (based on the provisional price) is received in cash within
four weeks of the arrival of shipment at smelter. The QP for tin concentrate is not expected to result in a
material adjustment due to the short period between the point of control of the concentrate passes to the
customer and the end of the QP.
(ii)
(iii)
(iv)
The contingent consideration receivable of $11.000 million includes the $10.000 million contingent copper
price payment included in the Mt Gordon Sale Agreement, plus the agreed fee of $0.250 million and interest
of $0.750 million.
Cash calls advanced to the Bluestone Mines Tasmania Joint Venture Pty Ltd of $2.306 million, GST receivable
$0.764 million, and other debtors of $0.210 million.
The performance bond facility is interest bearing and is used as security for government performance bonds.
The fair value approximates cost. Refer to note 2(b) for credit risk assessment. Bonds held by Metals X to
secure Patterson Copper obligations for Nifty rehabilitation provisions and key commercial contracts of
approximately $6.521 million, were returned following the completed sale of its Copper Assets.
10.
Inventories
Ore stocks at net realisable value
Tin in circuit - at cost
Tin concentrate - at cost
Stores and spares at cost
Provision for obsolete and impairment stores and spares
2021
$'000
1,201
105
14,433
5,895
(1,108)
20,526
2020
$'000
798
52
9,332
28,171
(18,025)
20,328
Recognition and measurement
Inventories are valued at the lower of cost and net realisable value. Cost includes expenditure incurred in acquiring
and bringing the inventories to their existing condition and location and is determined using the weighted average
cost method.
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
11. Assets Classified as Held for Sale
On 25 May 2021, the Company announced that it has signed a binding term sheet with NICO Resources Limited
(“NICO”) for the sale and spin out of its nickel asset portfolio, including the Wingellina Nickel-Cobalt Project located
in Western Australia and the Claude Hills Project located in South Australia (together “Nickel Assets”) (the “Term
Sheet”).
As at 30 June 2021, the Nickel Assets were available for immediate sale and the sale was considered highly
probable within a 12-month period. The associated assets and liabilities were consequently presented as held for
sale.
Assets and liabilities comprising the disposal group are remeasured at the lower of their carrying value and fair
value less costs to sell. Any cumulative impairment losses recognised previously in accordance with IAS 36
Impairment of Assets should be reversed and allocated against the carrying value of each asset classified as held
for sale. Any excess of carrying value over fair value less cost to sell should be recognised as an impairment. No
impairment has been reversed because of this reclassification. Once classified as held-for-sale, property, plant and
equipment are no longer amortised or depreciated.
(a)
Results for the Nickel Assets for the year are presented as follows:
2021
$’000
2020
$’000
Revenue
Cost of sales
Gross profit
Other income
Administration costs
Loss for the period from discontinued operations
(b)
The assets and liabilities classified as held for sale at 30 June 2021:
Assets
Cash and bonds
Other receivables
Inventory
Property, plant, and equipment
Exploration
Liabilities
Trade and other payables
Provision for rehabilitation
Carrying value of assets held for sale
(c)
The net cash flows for assets held for sale:
Net cash flows (used in)/from operating activities
Net cash flows used in investing activities
Net cash outflow
-
-
-
6
32
38
2021
$'000
20
34
29
397
4,168
4,648
28
15
43
4,605
2021
$’000
(62)
(1,110)
(1,172)
-
-
-
4
36
40
2020
$’000
76
(1,340)
(1,416)
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
12. Financial Assets at Fair Value Through Profit or Loss
Current
Convertible notes
Derivative financial assets
Forward commodity swaps
Non-current
Shares – Australian listed
Shares – Australian unlisted
Derivative financial assets
Convertible notes
Australian shares
2021
$’000
360
2,332
-
2,692
-
30
3,061
37,246
40,337
2020
$’000
-
-
1,532
1,532
50
-
-
50
On 4 January 2021, the Company sold its remaining 1,113,541 listed shares in Nelson Resources Limited for $0.070
cents per share to receive $0.780 million (less transaction costs).
On 28 June 2021, the Company acquired 600,000 unlisted shares in NICO Resources Limited for $0.05 cents per
share for $0.030 million.
Recognition and measurement
Listed equity investments are designated as fair value through profit or loss on initial recognition with all changes in
fair value subsequently being recorded in profit or loss within the consolidated statement of comprehensive income.
Dividends on listed equity investments are also recognised as other income in the consolidated statement of
comprehensive income when the right of payment has been established.
The fair value of listed equity investments has been determined directly by reference to published price quotations
in an active market. Unlisted equity investments are initially recognised at cost.
Financial assets and debt instruments
Financial assets are financial instruments. A financial instrument is any contract that gives rise to a financial asset
of one entity and a financial liability or equity instrument of another entity.
On 30 March 2021, the Group completed the sale of its Copper Assets to Cyprium Metals Limited (“Cyprium”) and
received $60.000 million worth of consideration, which included four (4) convertible notes with a value of $9.000
million each, for an aggregate of $36.000 million, plus 40.6 million options, consisting of two tranches of 20.3 million
options each, to acquire Cyprium shares.
The convertible notes were issued by Cyprium on the following basis:
a four-year maturity from 30 March 2021;
convertible at maturity at the election of Metals X, or otherwise redeemable by Cyprium at maturity;
conversion price of $0.355 (based on the Buyer’s 20-day VWAP to Completion x 1.3);
annual coupon of 4% to be capitalised and paid annually on a default basis on each anniversary of Completion
until maturity (with annual interest to be paid in shares at the same conversion price, at the election of Metals
X); and
Cyprium can elect annually to repay all or some of the convertible notes at face value x 1.15, with Metals X
able to convert the convertible notes into Cyprium shares in the event Cyprium elects to repay early.
The 40.6 million options were issued by Cyprium on the following basis:
20.3 million options exercisable at $0.314 per option with an expiry date of 30 March 2022; and
20.3 million options exercisable at $0.355 per option with an expiry date of 30 March 2023.
Initial recognition and measurement
The Group initially recognises financial assets in the following measurement categories:
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
12. Financial Assets at Fair Value Through Profit or Loss (continued)
those to be measured at fair value through profit or loss (“FVTPL”);
fair value through other comprehensive income (“FVTOCI”), and
financial assets measured at amortised cost (“Debt Instruments”).
The classification of financial assets at initial recognition, depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income. For investments in equity instruments that are not held for trading, this will depend on whether the Group
has made an irrevocable election at the time of initial recognition to account for the equity investment at FVTOCI.
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at
FVTPL, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at FVTPL are expensed.
For a financial asset to be classified and measured at amortised cost or FVTOCI, it needs to give rise to cash flows
that are ‘solely payments of principal and interest (“SPPI”) on the principal amount outstanding. Financial assets with
cash flows that are not SPPI are classified and measured at FVTPL, irrespective of the business model. The Group
reclassifies debt investments when and only when its business model for managing those assets changes.
Convertible notes are financial assets with embedded derivatives which are considered in their entirety when
determining whether their cash flows are solely the payment of principal and interest.
Subsequent measurement
Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected
to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair
value gains and losses to the consolidated statement of comprehensive income following the derecognition of the
investment. Dividends from such investments continue to be recognised in the consolidated statement of
comprehensive income as other income when the Group’s right to receive payment is established. Changes in the
fair value of financial assets at FVTPL are recognised in other gains/(losses) in the consolidated statement of
comprehensive income as applicable. Impairment losses (and reversal of impairment losses) on equity investments
measured at FVTOCI are not reported separately from other changes in fair value.
Debt instruments
The subsequent measurement of Debt Instruments depends on the Group’s business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories for Debt Instruments:
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. Interest income from these financial
assets is included in finance income using the effective interest rate (“EIR”) method. Any gain or loss arising
on derecognition is recognised directly in the consolidated statement of comprehensive income and
presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are
presented as separate line item in the consolidated statement of comprehensive income.
Financial assets that are held for collection of contractual cash flows and for selling the financial assets,
where the assets’ cash flows represent solely payments of principal and interest, are measured at FVTOCI.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains
or losses, interest income and foreign exchange gains and losses which are recognised in the consolidated
statement of comprehensive income. When the financial asset is derecognised, the cumulative gain or loss
previously recognised in other comprehensive income is reclassified from equity to profit or loss and
recognised in other gains/(losses). Interest income from these financial assets is included in finance income
using the EIR. Foreign exchange gains and losses are presented in other gains/(losses) and impairment
expenses are presented as separate line item in the consolidated statement of comprehensive income.
Assets that do not meet the criteria for amortised cost or FVTOCI are measured at FVTPL. A gain or loss
on a debt investment that is subsequently measured at FVTPL is recognised in the consolidated statement
of comprehensive income in other gains/(losses) in the period in which it arises
Impairment
Further disclosures relating to impairment of financial assets are also provided in:
Disclosures for significant assumptions in note 1(j).
Financial assets at fair value through profit and loss, note 12.
Trade and other receivables, note 9.
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
12. Financial Assets at Fair Value Through Profit or Loss (continued)
The Group recognises an allowance for expected credit losses (“ECL’s”) for all debt instruments not carried at FVTPL.
ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all
the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements
that are integral to the contractual terms. The Group applies the simplified approach permitted by AASB 9, which
requires expected lifetime losses to be recognised from initial recognition of the receivables.
Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial
recognition as at FVTPL.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. This category also includes derivative financial instruments entered into by the Group that are not designated
as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities
held for trading are recognised in the Consolidated Statement of Comprehensive Income. Financial liabilities
designated upon initial recognition at FVTPL are designated at the initial date of recognition, and only if the criteria
in IFRS 9 are satisfied. The Group has not designated any financial liability as at FVTPL.
Financial liabilities at amortised cost (loans and borrowings)
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognised in Consolidated Statement of Comprehensive Income when the
liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by talking
into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the Consolidated Statement of Comprehensive Income. This category
generally applies to interest-bearing loans and borrowings. For more information, refer to note 18.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in the consolidated statement of comprehensive income.
Estimates and judgments
Fair value measurement of financial instruments
These financial assets cannot be measured based on quoted prices in active markets and are therefore measured
using valuation techniques.
The convertible note receivable conveys a right to receive cash upon maturity of 30 March 2025 or the option to
convert the principle amount outstanding into shares of Cyprium Metals Limited. The notes attract interest at a coupon
rate of 4% per annum to be capitalised and paid annually, payable in cash unless Metals X elects to receive the
interest in fully paid ordinary Cyprium shares.
To determine the fair value of the convertible notes, the Group estimates the fair value of the right to receive the cash
using discounted cash flow techniques and market interest rates. In addition, the Group adds the fair value of the
conversion option, which is estimated using the Black Scholes valuation model. Refer to note 1(j). The inputs to this
model and technique requires a degree of judgement, including consideration of the risk-free rate, Cyprium share
price volatility and market coupon rates.
The Group’s derivative financial instruments are options to acquire shares in Cyprium with an additional award of
shares granted by a factor dependant on commodity prices on the date of exercise. To determine the fair value of
these instruments, the Group has used Black Scholes. To accommodate for the additional award, the Group has
increased the Black Scholes fair value by multiplying the quoted price of Cyprium shares on the Option grant dates
by the most likely factor to apply on the estimated dates of exercise (assumed to be the dates of expiry). Refer to
note 1(j). The inputs to these models and techniques require a degree of judgement, including consideration of the
risk-free rates, Cyprium share price volatilities and forecast commodity prices.
Changes in assumptions relating to the above factors could affect the reported fair value of financial assets. See note
1(j) for further disclosures. The financial assets estimated fair value of $39.612 million was recognised at the sale
completion date (note 25(b{{and remeasured to $42.999 million (note 2(g)) as at the reporting date. Future
developments may require further revisions to the estimate. The convertible note and derivative financial instruments
are classified as financial assets at fair value through profit or loss.
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
13. Property, Plant, and Equipment
Plant and equipment
Gross carrying amount - at cost
Accumulated depreciation and impairment
Net carrying amount
Land and buildings
Gross carrying amount - at cost
Accumulated depreciation and impairment
Net carrying amount
Capital work in progress at cost
Gross carrying amount - at cost
Net carrying amount
Total property, plant, and equipment
Reconciliations:
Reconciliations of the carrying amounts of property, plant, and
equipment at the beginning and end of the reporting period:
Plant and equipment
At 1 July net of accumulated depreciation
Transfer from capital in progress
Disposals
Disposal and discontinued operations
Impairment loss
Depreciation charge for the year
At 30 June net of accumulated depreciation
Land and buildings
At 1 July net of accumulated depreciation
Transfer from capital in progress
Disposals
Disposal and discontinued operations
Impairment loss
Depreciation charge for the year
At 30 June net of accumulated depreciation
Capital work in progress
At 1 July
Additions
Transfer to mine properties & development
Transfer to plant and equipment
Transfer to land and buildings
At 30 June
2021
$'000
56,299
(35,693)
20,606
6,723
(3,424)
3,299
12,129
12,129
36,034
31,521
8,429
(57)
(15,244)
-
(4,043)
20,606
5,843
-
(388)
(1,690)
-
(466)
3,299
5,951
15,420
(813)
(8,429)
-
12,129
2020
$'000
77,185
(45,664)
31,521
11,035
(5,192)
5,843
5,952
5,952
43,315
37,677
9,729
(3,378)
-
(3,454)
(9,052)
31,521
5,529
1,377
(25)
-
(220)
(817)
5,843
3,260
15,214
(1,416)
(9,729)
(1,377)
5,951
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
13. Property, Plant, and Equipment (continued)
Recognition and measurement
Plant and equipment are stated at historical cost less accumulated depreciation and any impairment in value.
Capital work-in-progress is stated at cost and comprises all costs directly attributable to bringing the assets under
construction ready to their intended use. Capital work-in-progress is transferred to property, plant and equipment or
mine properties and development at cost on completion.
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset, or where appropriate,
over the estimated life of the mine.
Major depreciation periods are:
Mine specific plant and equipment is depreciated using – the shorter of life of mine and useful life. Useful life
ranges from 2 to 10 years.
Buildings – the shorter of life of mine and useful life. Useful life ranges from 5 to 40 years.
Office Plant and equipment is depreciated at 33% per annum for computers and office machines and 20%
per annum for other office equipment and furniture.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the item) is included in the profit and loss in the period the item is derecognised
Key estimates and judgements
Life of mine method of amortisation and depreciation
The Group applies the life of mine method of amortisation and depreciation to its mine specific plant and to mine
properties and development based on ore tonnes mined. These calculations require the use of estimates and
assumptions. Significant judgement is required in assessing the available reserves and the production capacity of
the plants to be depreciated under this method. Factors that are considered in determining reserves and production
capacity are the Group’s history of converting resources to reserves and the relevant time frames, the complexity
of metallurgy, markets, and future developments. When these factors change or become known in the future, such
differences will impact pre-tax profit and carrying values of assets.
14. Mine Properties and Development
Recognition and measurement
Expenditure on the acquisition and development of mine properties within an area of interest are carried forward at
cost separately for each area of interest. Accumulated expenditure is amortised over the life of the area of interest to
which such costs relate on a production output basis.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest.
Key estimates and judgements
In determining amortisation of its Mine capital development, the Group applies the unit of production method and
factors in future development spend required to access the remaining ore reserves. For Mine site establishment,
the Group applies the life of mine method of amortisation, which is also based on ore tonnes mined.
Determination of mineral resources and ore reserves
The determination of reserves impacts the accounting for asset carrying values, depreciation and amortisation rates
and provisions for mine rehabilitation. The Group estimates its mineral resource and reserves in accordance with
the Australian code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 (the “JORC
code”). The information on mineral resources and ore reserves were prepared by or under the supervision of
Competent Persons as defined in the JORC code. The amounts presented are based on the mineral resources and
ore reserves determined under the JORC code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that
are valid at the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of reserves and may, ultimately, result in the reserves being restated.
Determination of future capital development spend
Management estimates its future capital development spend based on historical annual requirements forecasted
over the remaining estimated life of mine.
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
14. Mine Properties and Development (continued)
Development areas at cost
Gross carrying amount - at cost
Impairment
Net carrying amount
Mine site establishment
Gross carrying amount - at cost
Accumulated depreciation and impairment
Net carrying amount
Mine capital development
Gross carrying amount - at cost
Accumulated depreciation and impairment
Net carrying amount
2021
$'000
-
-
-
40,909
(34,315)
6,594
112,175
(80,885)
31,290
2020
$'000
72,715
(72,490)
225
43,390
(34,426)
8,964
207,190
(176,747)
30,444
Total mine properties and development
37,884
39,633
Movement in mine properties and development
Development areas at cost
At 1 July
Additions
Disposal and discontinued operations
At 30 June
Mine site establishment
At 1 July net of accumulated amortisation
Additions
Impairment loss
Transfer from capital work in progress
(Decrease)/increase in rehabilitation provision
Amortisation charge for the year
At 30 June net of accumulated amortisation
Mine capital development
At 1 July net of accumulated amortisation
Additions
Impairment loss
Adjustment to rehabilitation liability
Amortisation charge for the year
At 30 June net of accumulated amortisation
225
-
(225)
-
8,964
-
-
813
(540)
(2,643)
6,594
30,444
8,315
-
-
(7,469)
31,290
109
116
-
225
11,109
143
(1,395)
1,416
370
(2,679)
8,964
31,329
17,971
(8,631)
736
(10,961)
30,444
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
15. Exploration and Evaluation Expenditure
Exploration and evaluation costs carried forward in respect of mining
areas of interest
Pre-production areas
At Cost
Net carrying amount
Movement in exploration and evaluation
At 1 July net of accumulated impairment
Additions
Transfers to assets held for sale
Expenditure written off
At 30 June net of accumulated impairment
Recognition and measurement
2021
$'000
2020
$'000
352
352
13,993
13,993
13,993
-
(13,641)
-
352
10,179
3,919
-
(105)
13,993
Expenditure on acquisition, exploration and evaluation relating to an area of interest is carried forward at cost where
rights to tenure of the area of interest are current and;
it is expected that expenditure will be recouped through successful development and exploitation of the area
of interest or alternatively by its sale and/or;
exploration and evaluation activities are continuing in an area of interest but at reporting date have not yet
reached a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest. Where uncertainty exists as to the future viability of certain areas,
the value of the area of interest is written off to the profit and loss or provided against.
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment regularly and
if after expenditure is capitalised, information becomes available suggesting that the recovery of expenditure is
unlikely or that the Group no longer holds tenure, the relevant capitalised amount is written off to profit or loss in
the period when the new information becomes available.
The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the
successful development and commercial exploitation or sale of the respective mining areas. Amortisation of the
costs carried forward for the development phase is not recognised pending the commencement of production.
Key estimates and judgements
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related area interest itself or, if not, whether it successfully
recovers the related exploration and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future technological
changes, which could impact the cost of mining, future legal changes (including changes to environmental
restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the
future, profits and net assets will be reduced in the period in which this determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet
reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves. To the extent it is determined in the future that this capitalised expenditure should be written off, profits
and net assets will be reduced in the period in which this determination is made.
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
16. Trade and Other Payables
Trade creditors
Sundry creditors and accruals
Recognition and measurement
2021
$'000
3,129
5,546
8,675
2020
$'000
3,779
3,739
7,518
Trade and other payables are initially recognised, at fair value and subsequently measured at amortised cost using
the effective interest rate method.
Trade creditors are non-interest bearing and generally on 30-day terms. Sundry creditors and accruals are non-
interest bearing and generally on 30-day terms. Due to the short-term nature of these payables, their carrying value
approximates their fair value.
17. Provisions
Current
Provision for annual leave
Provision for sick leave
Provision for long service leave
Non-current
Provision long service leave
Provision for rehabilitation
Rehabilitation movement
Balance at 1 July
Arising during the year
Disposal of copper asset portfolio
Reclassification of liability as held for sale
Rehabilitation borrowing discount unwound
Balance at 30 June
Provision for long service leave
2021
$’000
2,657
-
874
3,531
793
11,663
12,456
50,465
(460)
(38,537)
(15)
30
11,663
2020
$’000
2,679
2
999
3,680
752
50,645
51,397
40,952
9,467
-
226
50,645
The liability for long service leave is recognised and measured as the present value of expected future payments to
be made in respect of services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures, and periods
of service. Expected future payments are discounted using market yields at the reporting date on high quality
corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash
outflows.
Provision for rehabilitation
Environmental obligations associated with the retirement or disposal of mining properties and/or of exploration
activities are recognised when the disturbance occurs and are based on the extent of the damage incurred. The
provision is measured as the present value of the future expenditure. The rehabilitation liability is remeasured at each
reporting period in line with the change in the time value of money (recognised as an interest expense in the
Consolidated Statement of Comprehensive
the provision), and additional
Income and an
disturbances/change in the rehabilitation cost are recognised as additions/changes to the corresponding asset and
rehabilitation liability. The carrying value of the provision is calculated by applying an inflation factor of 1.10% (2020:
0.70%) which has been estimated based on rates throughout the period and a weighted average discount rate of
0.34% (2020: 0.26%), which has been estimated using government bond yields for an equivalent period of that of
the expected cash payments. Costs are inflated and discounted with reference to the Group’s anticipated timing of
payment, which is estimated based on the Group’s life of mine and planned activities. A majority of the payments are
anticipated within 5 years (2020: 6 years).
increase
in
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
18.
Interest Bearing Liabilities
Current liabilities
Lease liabilities relating to right of use assets
Hire purchase liabilities
Citibank finance facility 1
ACT finance facility
Non-current liabilities
Lease liabilities
Hire purchase liabilities
2021
$'000
94
1,742
-
15,528
17,364
-
2,684
2,684
2020
$'000
191
2,731
30,186
-
33,108
137
2,331
2,468
1On 31 July 2020, the Company made a final payment of $30.814 million (including principal and interest to that date)
fully repaying the Citibank Finance Facility and closing out the associated hedge contracts. The facility has been
closed.
ACT Finance Facility
On 27 July 2020, the Company executed an unsecured loan facility with Asia Cheer Trading Limited (ACT) for a
$26.000 million unsecured term loan facility (ACT Loan). The ACT Loan was fully utilised on 31 July 2020 to fully
repay the Citibank Facility.
On 15 December 2020, the Company executed a deed of variation to extend the ACT Loan repayment date from 31
January 2021 to 31 July 2021 and increase the facility amount by $5.000 million to $31.000 million. Upon execution
the Company made a further $5.000 million drawdown, less establishment fees, from its ACT Loan, the funds to be
used for working capital and general corporate expenditure.
At 31 December 2020, the key terms of the ACT Loan are as follows:
Repayment date:
31 July 2021
Establishment fee:
Fixed interest rate
3.5%
1.0%
On 14 April 2021, the Company repaid $15.500, comprising 50% of the outstanding principal amount of $31.000
million. As at 30 June 2021, the ACT Loan of $15.500 million remains outstanding plus the interest accrued. Refer to
note 29 Significant Events After Period End for additional repayment information.
Recognition and measurement
Financial liabilities at amortised cost (loans and borrowings)
This is the category most relevant to the Group. After initial recognition, interest bearing loans and borrowings are
subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the consolidated statement of
comprehensive income.
This category generally applies to interest bearing loans and borrowings.
Leases
Group as lessor
The Group has entered into lease contracts for various items of plant, machinery, vehicles, equipment, and remote
area residential accommodation. These leases have an average life of between one month and three years with
renewal options included in the contracts. The Group applies judgement in evaluating whether it is reasonably
certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive
for it to exercise the renewal. The Group's obligations under its leases are secured by the lessor's title to the leased
assets. Generally, the Group is restricted from assigning and subleasing the lease assets.
The Group also has certain leases of machinery with lease terms of 12 months or less and leases of office
equipment with low value. The Group applies the short-term lease and lease of low-value assets recognition
exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the
movements during the period: Reconciliations of the carrying amounts of right-of-use assets and lease liabilities at
the beginning and end of the year.
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
18.
Interest Bearing Liabilities (continued)
Right of use assets
At 1 July
Transition adjustment on 1 July 2019
Additions
Depreciation
Impairment
Disposal and discontinued operations
Disposals
At 30 June
Lease liabilities
At 1 July
Transition adjustment on 1 July 2019
Additions
Accretion of interest
Payments
Disposal and discontinued operations
Disposals
At 30 June
Current lease liabilities
Non-current lease liabilities
The maturity analysis of lease liabilities is disclosed in note 2(f).
The following amounts are recognised in profit or loss:
Depreciation expense of right-of-use assets
Interest expense on lease liabilities
Expense relating to short-term leases (included in cost of sales)
Total amount recognised in profit or loss
2021
$'000
698
-
-
(90)
-
(518)
-
90
328
-
-
12
(102)
(144)
-
94
94
-
94
90
12
10
112
2020
$'000
-
776
2,176
(442)
(61)
-
(1,751)
698
-
776
2,173
94
(593)
-
(2,122)
328
2,922
2,468
5,390
442
94
10
546
The Group had total cash outflows for lease liabilities related to right of use assets plus hire purchase liabilities
related to the Renison operations of $3.039 million in 2021 (2020: $5.369 million).
Recognition and measurement
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
i)
Right-of-use assets
The Group recognises right-of-use assets at the lease commencement date, which is when the assets are available
for use. The assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or before the commencement date, plus any make-good obligations and initial
direct costs incurred.
Right-of-use assets are depreciated using the straight-line method over the shorter of their useful life and the lease
term. Periodic adjustments are made for any re-measurements of the lease liabilities and for impairment losses,
assessed in accordance with the Group’s impairment policies.
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
18.
Interest Bearing Liabilities (continued)
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise
of a purchase option, depreciation is calculated using the estimated useful life of the asset.
ii)
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
future minimum lease payments, discounted using the Group’s incremental borrowing rate if the rate implicit in the
lease cannot be readily determined, and are subsequently measured at amortised cost using the effective interest
rate. Minimum lease payments are fixed payments or index-based variable payments incorporating the Group’s
expectations of extension options and do not include non-lease components of a contract.
The lease liability is re-measured when there are changes in future lease payments arising from a change in rates,
index, or lease terms from exercising an extension or termination option. A corresponding adjustment is made to
the carrying amount of the lease assets, with any excess recognised in the consolidated statement of comprehensive
income.
iii)
Short-term leases and leases of low-value assets
The Group has elected not to recognise assets and lease liabilities for short term leases (lease term of 12 months
or less) and leases of low value assets. The Group recognises the lease payments associated with these leases as
an expense on a straight-line basis over the lease term.
19.
Issued Capital
Share capital
Average number. of shares
Ordinary shares fully paid
907,266,067
907,266,067
30 Jun
2021
30 Jun
2020
Movements in issued capital
Balance at 1 July 2020
Balance at 30 June 2021
Recognition and measurement
30 Jun
2021
AU$’000
332,406
30 Jun
2020
AU$’000
332,406
AU$'000 No. of Shares
332,406
332,406
907,266,067
907,266,067
Issued and paid-up capital is recognised at the fair value of the consideration received by the Group. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction in the
proceeds received.
Dividend Reinvestment Plan
The Company operates a dividend reinvestment plan (DRP) which allows eligible shareholders to elect to invest
dividends in ordinary shares.
There were no shares issued under the DRP in the 2021 financial year (2020: nil).
Options on issue
Unissued ordinary shares of the company under option at the date of this report are as follows:
Type
Unlisted options
Unlisted options
Total
Expiry Date
30 June 2023
30 June 2024
Exercise Price
Number of options
$1.32
$1.32
66,956
421,068
488,024
The unlisted options were issued pursuant to the Metals X Limited Employee Option Scheme and can only be
exercised pursuant to the scheme rules.
Capital management gearing ratio
Gearing ratio
Net debt
Capital1
2021
$000
14.49%
20,048
138,365
2020
$000
68.69%
35,576
51,791
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
19.
Issued Capital (continued)
1Includes issued capital and all other equity reserves attributable to the equity holders of the parent for the purpose
of the Group’s capital management. The primary objective of the Group’s capital management is to ensure that it
maintains a strong credit rating and healthy capital ratios to support its business and maximise the shareholder’s
value. The Group manages its capital structure and adjusts considering changes in economic conditions and the
requirements of the financial covenants.
To maintain or adjust the capital structure, the Group’s may return capital to shareholders or issue new shares. No
changes were made in the objectives, policies or processes during the years ended 30 June 2021 and 30 June
2020. The Group monitors capital using a gearing ratio, which is net debt divided by the aggregate of equity and
net debt. The Group includes in its net debt, interest-bearing loans and borrowings, trade and other payables, less
cash, and short-term deposits. Net debt in the current year is higher due to the Citi Finance Facility.
20. Accumulated Losses
At 1 July
Net profit/(loss) attributable to members of the parent entity
At 30 June
21. Reserves
Share based payments reserve
At 1 June
Share based payments
At 30 June
2021
$’000
(308,796)
87,199
(221,597)
2020
$’000
(228,456)
(80,340)
(308,796)
28,044
(344)
27,837
28,044
137
28,181
This reserve is used to recognise the fair value of rights and options issued to employees in relation to equity-settled
share-based payments.
During the year ended 30 June 2021, the Company recognised income for reversal of ($0.344) million for share
based payments (30 June 2020: $0.137million) in the profit and loss. There were no share-based payments granted
during the year.
22. Auditor Remuneration
Fees to Ernst & Young (Australia)
2021
$'000
2020
$'000
Fees for auditing the statutory financial report of the parent covering
the group and auditing the statutory financial reports of any
controlled entities
185
212
Fees for other assurance and agreed-upon-procedures services
under other legislation or contractual arrangements where there is
discretion as to whether the service is provided by the auditor or
another firm:
- Renison joint Venture audit
Fees for other services
- tax compliance
Total fees to Ernst & Young (Australia)
52
64
104
341
47
323
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
23. Commitments
Capital commitments
Commitments relating to joint arrangements
At 30 June 2021 the Group has capital commitments that relate principally to the purchase and maintenance of plant
and equipment for its mining operations. Refer to note 13.
Estimated capital expenditure contracted for at reporting date, but not recognised as liabilities for the Group:
Within one year
Mineral tenement commitments
2021
$’000
9,037
2020
$’000
1,632
The Company has tenements in which the mining operations are located. These tenement leases have a life of up
to twenty-one years. To maintain current rights to explore and mine the tenements the Group is required to perform
minimum exploration work to meet the expenditure requirements specified by the relevant state governing body.
There are no restrictions placed on the lessee by entering into these contracts. The commitments include Joint
Operation commitments as disclosed in note 24.
Within one year
After one year but not more than five years
After more than five years
Other commitments
2021
$’000
128
319
441
888
2020
$’000
875
3,228
6,347
10,450
The Group has obligations for various expenditures such as state government royalties, production-based payments,
and exploration expenditure. Such expenditures are predominantly related to the earning of revenue in the ordinary
course of business.
24.
Interest in Joint Operations
The Group's interest in the assets and liabilities of joint operations are included in the consolidated statement of
financial position.
Renison Tin Project
Subsidiary Bluestone Mines Tasmania Pty Ltd has a 50% interest and participating share in the Renison Tin Project,
which is operated and managed by Bluestone Mines Tasmania Joint Venture Pty Ltd. The Group is entitled to 50%
of the production. The Renison Tin Project is located in Tasmania.
Recognition and measurement
Joint arrangements are arrangements over which two or more parties have joint control. Joint Control is the
contractual agreed sharing of control of the arrangement which exists only when decisions about the relevant
activities require unanimous consent of the parties sharing control. Joint arrangements are classified as ether a joint
operation or a joint venture, based on the rights and obligations arising from the contractual obligations between the
parties to the arrangement.
To the extent the joint arrangement provides the Group with rights to the individual assets and obligations arising
from the joint arrangement, the arrangement is classified as a joint operation and as such, the Group recognises its:
Assets, including its share of any assets held jointly;
Liabilities, including its share of liabilities incurred jointly;
Revenue from the sale of its share of the output arising from the joint operation;
Share of revenue from the sale of the output by the joint operation; and
Expenses, including its share of any expenses incurred jointly
To the extent the joint arrangement provides the Group with rights to the net assets of the arrangement, the
investment is classified as a joint venture and accounted for using the equity method. Under the equity method, the
cost of the investment is adjusted by the post-acquisition changes in the Group’s share of the net assets of the joint
venture.
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
25. Discontinued Operations
On 30 March 2021, Metals X completed the sale of its Copper asset portfolio including the Nifty Copper operations,
the Maroochydore Copper project, and the Paterson exploration project to Cyprium.
(a)
Copper assets and liabilities disposed of at 30 March 2021:
Assets
Prepayments
Inventories
Property plant & equipment
Exploration and evaluation expenditure
Liabilities
Trade and other payables
Interest bearing liabilities
Rehabilitation provision
Carrying value of Copper assets disposal group (i)
(b)
Consideration received for Copper asset portfolio:
Consideration received:
Cash consideration
Convertible note receivable
Derivative financial instruments
Working capital adjustment
Carrying value of Copper assets disposal group (i)
Profit on disposal of Copper assets (ii)
As at
30 Mar
2021
$'000
272
16,858
16,499
11,023
44,652
647
18
38,537
39,202
5,450
30 Mar
2021
$’000
24,000
35,070
4,542
2,768
66,380
(5,450)
60,930
On 25 May 2021, the Company announced that it had signed a binding term sheet with NICO Resources Limited
(NICO) for the sale and spin out of its Nickel asset portfolio. The assets, liabilities and cash flows from this
discontinued operation are as shown in note 11.
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
25. Discontinued Operations (continued)
(c)
The results for the discontinued Copper and Nickel asset portfolios during the year are presented as follows:
Revenue
Cost of sales
Gross loss
Profit on disposal of Copper assets (ii)
Impairment reversal upon categorising as assets held for
sale
Other income
Commodity and foreign exchange trading gains
Fair value loss on provisionally priced trade receivables
Rehabilitation interest accretion
Finance and admin costs
Care and maintenance costs
Loss on sale of assets
Exploration and evaluation expenditure written off
Impairment loss on assets
Profit/(loss) for the period from discontinued operations
(d)
The net cash flows incurred by the Copper and Nickel assets is as follows:
Net cash flows used in operating activities
Net cash flows from/(used in) investing activities
Net cash outflow
26. Key Management Personnel
Compensation of Key Management Personnel
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share-based payment
Termination payments
2021
$’000
-
-
-
60,930
15,753
73
1
-
(187)
(87)
(8,463)
(3,747)
-
-
64,274
(9,699)
30
(9,669)
2020
$’000
70,206
(95,840)
(25,634)
-
-
220
546
(2,066)
(190)
(308)
(24,744)
-
(105)
(15,363)
(67,644)
(1,414)
(15,965)
(17,379)
2021
$
1,919,001
115,534
39,658
(127,089)
478,621
2,425,725
2020
$
2,961,955
201,941
94,140
75,087
472,757
13,805,880
1KMP compensation for 2020 includes total emoluments paid to KMP who are no longer disclosed in the
Remuneration Report.
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
27. Related Party Disclosure
Subsidiaries
The consolidated financial statements of the Group include Metals X and the subsidiaries listed in the following
table:
Name
Bluestone Australia Pty Ltd
Metals Exploration Pty Ltd
Paterson Copper Pty Ltd (formerly Cupric Pty Ltd)
Subsidiary companies of Bluestone Australia Pty Ltd
Country of
Ownership Interest
Incorporation
Australia
Australia
Australia
2021
100%
100%
-
2020
100%
100%
100%
Bluestone Mines Tasmania Pty Ltd
Australia
100%
100%
Subsidiary companies of Metals Exploration Pty Ltd
Austral Nickel Pty Ltd
Hinckley Range Pty Ltd
Metex Nickel Pty Ltd
Subsidiary companies of Paterson Copper Pty Ltd
Nifty Copper Pty Ltd
Maroochydore Copper Pty Ltd
Transactions with related parties
Related party transactions
Shareholder’s Loan & Interest:
Asia Cheer Trading Limited (subsidiary of
Company’s substantial shareholder APAC
Resources Strategic Holdings Limited)
Jointly controlled operations
Bluestone Mines Tasmania Joint Venture
Pty Ltd (Manager of the Renison Tin
Project)
2021
2020
2021
2020
Australia
Australia
Australia
Australia
Australia
100%
100%
100%
-
-
100%
100%
100%
100%
100%
Sales to
related
parties
$’000
Purchases
and interest
charges
from
related
parties
$’000
Amounts
owed by
related
parties
$’000
Amounts
owed to
related
parties
$’000
-
-
126
888
1,583
-
170
-
-
-
-
64
15,528
-
48
-
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Cont’d)
For the year ended 30 June 2021
28. Parent Entity Disclosure
Current assets
Total assets
Current Liabilities
Total Liabilities
Issued capital
Accumulated losses
Share based payment reserve
Total Equity
Profit/(Loss) of the parent entity
Total comprehensive profit/(loss) of the parent entity
29. Significant Events After Period End
Receipt of Mt Gordon Copper Payment
2021
$'000
30,913
119,219
15,750
15,750
341,685
(266,053)
27,836
103,469
82,526
82,526
2020
$'000
16,133
22,050
762
762
341,685
(348,578)
28,181
21,288
(90,587)
(90,587)
On 8 July 2021, the Company received $11 million as settlement of the Copper Payment pursuant to the Mt Gordon
Sale Agreement, and subsequent binding variation agreement, with Capricorn Copper Holdings Pty Ltd (CCH) and its
parent entity, EMR Capital Investment (No. 6B) Pte Ltd.
The payment from CCH includes the first and second instalments of $5,000,000 each, the agreed extension fee of
$250,000, and interest due, being a total payment of $11 million.
Repayment of ACT Loan Facility
On 13 July 2021, the Company repaid $7.75 million, comprising 50% of the outstanding principal amount of $15.50
million to ACT.
On 27 July 2021, the Company announced it had agreed to extend the Loan Facility Termination Date from 31 July
2021 to 31 January 2021, with all other terms and conditions remaining unchanged.
On 30 September 2021, the Company made a final payment of $7.764 million, comprising $7.750 million principal plus
interest, to ACT. The Company has now repaid the ACT loan facility in full.
Spin Out of Nickel-Cobalt Assets
As described in the Director’s Report, on 21 September 2021, the date to satisfy all Conditions Precedent to the
binding term sheet to sell the assets passed. However, the parties involved in the sale are in the process of extending
the date for completion of the Conditions Precedent which have resulted from procedural delays in obtaining the
necessary approval from the Foreign Investment Review Board.
59
DIRECTORS’ DECLARATION
For the year ended 30 June 2021
In accordance with a resolution of the Directors of Metals X Limited, I state that:
In the opinion of the Directors:
(a)
the consolidated financial statements and notes of the Group are in accordance with the Corporations Act 2001,
including:
(i)
(ii)
giving a true and fair view of the financial position as at 30 June 2021 and the performance for the year
ended on that date of the Group; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001; and
the consolidated financial statements and notes also comply with International Financial Reporting Standards as
disclosed in note 1(b) and;
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
this declaration has been made after receiving the declarations required to be made to the Directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.
(b)
(c)
(d)
On behalf of the Board
Brett Smith
Executive Director
30 September 2021
60
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Auditor’s independence declaration to the Directors of Metals X Limited
As lead auditor for the audit of Metals X Limited for the financial year ended 30 June 2021, I declare
to the best of my knowledge and belief, there have been:
a) No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b) No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Metals X Limited and the entities it controlled during the financial
year.
Ernst & Young
Philip Teale
Partner
30 September 2021
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
PT:DA:MLX:009
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.com/au
Independent auditor’s report to the members of Metals X Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Metals X Limited (the Company) and its subsidiaries
(collectively the Group), which comprises the consolidated statement of financial position as at 30
June 2021, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, notes to the consolidated financial statements, including a summary of significant
accounting policies, and the Directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2021
and of its consolidated financial performance for the year ended on that date; and
b. Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. The matters we identified are addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do
not provide a separate opinion on the matters. For the matters below, our description of how our
audit addressed the matters is provided in that context. We have determined the matters described
below to be key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, Including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
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1.
Fair value of financial assets through profit and loss
Why significant
How our audit addressed the key audit matter
As described in note 25 discontinued operations, the
Group completed the sale of its copper asset portfolio
on 30 March 2021. As part of the proceeds, the
Group received non-cash consideration initially
recognised at a fair value of $39.6 million. The non-
cash consideration consists of the following financial
assets:
a convertible note from the buyer; and
options to acquire shares in the buyer.
These financial assets are required to be
subsequently measured at fair value through profit or
loss under AASB 9 Financial Instruments. At 30 June
2021, the fair value of these financial assets through
profit or loss changed to $43.0 million resulting in a
gain and interest earned of $3.4 million reported in
the Group’s profit for the period.
Due to the inherent complexity and judgement
required to value these financial assets, management
engaged an independent expert to assist in
determining the fair value.
Given the size of the financial assets relative to the
Group’s total assets and judgements involved in
determining fair value, this was considered a key
audit matter.
Our procedures included:
Assessed the Group’s recognition, measurement,
classification and treatment of the financial
instruments, in accordance with the accounting
standards, which included understanding of the
terms and conditions within the Convertible Note
Deed
Assessed the competency and objectivity of
management’s expert
Read the valuation reports prepared by the Group’s
external expert and:
compared the inputs used by the expert to
supporting evidence; and
re-computed the fair value outcomes based on
the inputs and techniques applied
For the options and convertible note conversion
feature, we engaged our internal valuation specialist
to determine our own point estimate based on the
appropriate valuation techniques and compared the
results to that the management’s expert
Assessed the adequacy of disclosures in the financial
report.
Information other than the financial statements and auditor’s report
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2021 annual report, 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, with the exception of the Remuneration Report
and our related assurance opinion.
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.
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In preparing the financial report, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment 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.
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.
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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 to the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current year 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.
Report on the audit of 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 Metals X 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.
Ernst & Young
Philip Teale
Partner
Perth
30 September 2021
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TABLES OF MINERAL RESOURCES AND ORE RESERVES
As at 31 March 2021
Mineral Resource Estimates (50% MLX) – Consolidated Summary & Annual Comparison
Project
31 Mar 2020
Renison Bell
Rentails
Total
Mining Depletion
Renison Bell
Rentails
Total
Resource Adjustments
Renison Bell
Rentails
Total
31 Mar 2021
Renison Bell
Rentails
Tonnes1
(Mt)
Tin
(%Sn)
Copper
(%Cu)
18.5
23.9
42.4
(0.82)
-
(0.82)
0.5
-
0.5
18.2
23.9
1.57
0.44
0.93
1.25
-
1.25
3.95
-
3.95
1.65
0.44
0.20
0.22
0.21
0.24
-
0.24
0.36
-
0.36
0.20
0.22
Contained Metal
Tin
Copper
(kt)
292
104
396
(10.3)
-
(10.3)
19.80
-
19.80
302
104
(kt)
36.6
52.7
89.3
(1.94)
-
(1.94)
1.8
-
1.8
36.5
52.7
Total
1Figures are rounded according to JORC Code guidelines and may show apparent addition errors. Contained
metal does not imply recoverable metal.
42.1
89.2
0.96
0.21
406
Ore Reserve Estimates (50% MLX) – Consolidated Summary & Annual Comparison
The Ore Reserve estimates are a subset of the Mineral Resource estimates
Ore
Kt
Grade
% Sn
8,100
22,310
30,410
1.02
0.44
0.60
Tin
Metal
Kt Sn
82
99
181
8,100
22,310
30,410
Copper
Ore
Kt
Grade
% Cu
Metal
Kt Cu
(1,583)
-
1.20
-
(19)
-
(1,583)
-
1,320
-
3.56
-
47
-
1,320
-
7,837
22,310
1.41
0.44
110
99
7,837
22,310
0.21
0.23
0.22
0.27
-
0.15
-
0.19
0.23
17
51
68
(4)
-
3
-
16
51
67
Project
30 Jun 2019
Renison Bell
Rentails
Mining Depletion
Renison Bell
Rentails
Reserve Adjustments
Renison Bell
Rentails
31 Mar 2021
Renison Bell
Rentails
30,147
30,147
Renison Bell and Rentails Resources and Reserves are 50% owned by Metals X.
The geographic region for Tin Mineral Resources and Ore Reserves is Australia.
For further details on total Mineral Resources refer to ASX announcement dated 7 June 2021. For further
details on total Ore Reserves refer to ASX announcement dated 17 June 2020. Ore Reserves have been
adjusted to reflet mining depletion to 31 March 2021.
0.69
0.22
209
66 COMPETENT PERSONS STATEMENT
The information in this report that relates to Mineral Resources has been compiled by Bluestone Mines
Tasmania Joint Venture Pty Ltd technical employees under the supervision of Mr Colin Carter B.Sc. (Hons),
M.Sc. (Econ. Geol), AusIMM. Mr Carter is a full-time employee of the Bluestone Mines Tasmania Joint Venture
Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and types of deposit under
consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Carter consents to the inclusion in this report of the matters based on his information in the form
and context in which it appears.
The information in this report that relates to Tin Ore Reserves has been compiled by Bluestone Mines
Tasmania Joint Venture technical employees under the supervision of Mr Mark Recklies, B Engineering
(Mining Engineering), AusIMM. Mr. Recklies is a full-time employee of Bluestone Mines Tasmania Joint
Venture. Mr Recklies has sufficient experience which is relevant to the style of mineralisation and types of
deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves”. Mr Recklies consents to the inclusion in this report of the matters based on his information
in the form and context in which it appears.
STATEMENT OF GOVERNANCE ARRANGEMENTS AND INTERNAL CONTORLS
Governance of Metals X’s Mineral Resources and Ore Reserves development and management activities is
a key responsibility of the Executive Management of the Company.
Senior geological and mining engineering staff of the Company oversee reviews and technical evaluations of
the estimates and evaluate these with reference to actual physical and cost and performance measures. The
evaluation process also draws upon internal skill sets in operational and project management, ore processing
and commercial/financial areas of the business.
The Executive Director (in consultation with senior staff) is responsible for monitoring the planning, prioritisation
and progress of exploratory and resource definition drilling programs across the Company and the estimation
and reporting of resources and reserves. These definition activities are conducted within a framework of quality
assurance and quality control protocols covering aspects including drill hole siting, sample collection, sample
preparation and analysis as well as sample and data security.
A four-level compliance process guides the control and assurance activities:
1. Provision of internal policies, standards, procedures and guidelines;
2. Mineral Resources and Ore Reserves reporting based on well-founded assumptions and compliance
with external standards such as the Australasian Joint Ore Reserves Committee (JORC) Codes;
3.
4.
Internal review of process conformance and compliance; and
Internal assessment of compliance and data veracity.
The objectives of the estimation process are to promote the maximum conversion of identified mineralisation
into JORC 2012 compliant Mineral Resources and Ore Reserves.
Metals X reports its Mineral Resources and Ore Reserves on an annual basis, in accordance with ASX Listing
Rule 5.21 and clause 14 of Appendix 5A (the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the JORC code) 2012 Edition).
Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by Metals X are
members of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists
and qualify as Competent Persons as defined in the JORC Code 2012.
CORPORATE GOVERNANCE
The Company’s 2021 Corporate Governance Statement is available for in the Corporate Governance section
of the Company’s website: https://www.metalsx.com.au/aboutus/corporate-governance/.
67 SECURITY HOLDER INFORMATION
As at 31 August 2021
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this
report is as follows. The information is current as at 31 August 2021.
Issued Equity Capital
Number of holders
Number on issue
Voting Rights
Ordinary Shares
4,072
907,266,067
Options
2
488,024
The voting rights for each class of security on issue are:
Ordinary fully paid shares
Each ordinary shareholder is entitled to one vote for each share held.
Options
The holders of options have no rights to vote at a general meeting of the company.
Distribution of Holdings of Equity Securities
Fully Paid Ordinary Shares
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Unlisted options expiring 30 June 2023
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Unlisted options expiring 30 June 2024
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Unmarketable Parcels
Ordinary Shares
Number of Holders
269
539
815
1,993
456
4,072
Number of Holders
0
0
0
1
0
1
Number of Holders
0
0
0
0
1
1
Options
Options
Units
60,419
1,647,995
6,668,660
68,125,597
830,763,396
907,266,067
Units
0
0
0
66,956
0
66,956
Units
0
0
0
0
421,068
421,068
The number of shareholders holding less than a marketable parcel was 340 as at 31 August 2021 (being 1,755
shares based on a closing share price of $0.2850 at 31 August 2021).
68 SECURITY HOLDER INFORMATION (Continued)
As at 31 August 2021
Substantial Shareholders
Substantial Shareholders as disclosed in substantial shareholder notices provided to the Company as at 31
August 2021.
Old Peak Group Ltd1
APAC Resources Limited and its related bodies
corporate2, 5
Credit Suisse Holdings (Australia) Limited (on behalf
of Credit Suisse Group AG and its affiliates)3
Bank of America Corporation and its related bodies
corporate4
Number of Ordinary
Shares
148,485,759
130,627,608
55,329,373
54,695,622
Percentage (%)
16.36
15.31
6.10
6.03
1. As lodged on 11 May 2021
2. As lodged on 3 October 2019
3. As lodged on 3 August 2021
4. As lodged on 4 August 2021
5. On16 September 2021, APAC Resources Limited acquired on-market 48,968,711 Metals X Limited
shares taking its percentage interest to 19.80%.
On Market Buy Back
There is no current on-market buy-back.
Restricted Securities
The Company has no restricted securities on issue.
Top 20 Shareholders
Rank Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LIMITED
SUN HUNG KAI INVESTMENT SERVICES LIMITED
BNP PARIBAS NOMS PTY LTD
NATIONAL NOMINEES LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO
ECA
JINCHUAN GROUP LTD
FARJOY PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
CS FOURTH NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NATIONAL NOMINEES LIMITED
NGE CAPITAL LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
MRS YUQIN ZHUANG
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR RAM SHANKER KANGATHARAN
CS THIRD NOMINEES PTY LIMITED
Total
Number of
Ordinary Shares
Percentage
(%)
146,854,893
79,536,595
16.19
8.77
73,197,236
59,641,333
48,832,964
44,000,000
40,897,831
29,998,030
25,171,869
19,768,769
17,941,694
10,729,448
10,284,250
10,189,465
9,700,000
6,583,078
5,862,328
5,635,858
5,000,000
4,336,880
8.07
6.57
5.38
4.85
4.51
3.31
2.77
2.18
1.98
1.18
1.13
1.12
1.07
0.73
0.65
0.62
0.55
0.48
654,162,521
72.10
69