More annual reports from Methode Electronics:
2023 ReportMETEORIC RESOURCES NL
ABN 64 107 985 651
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2019
METEORIC RESOURCES NL
- 1 -
CORPORATE DIRECTORY
Directors
Patrick Burke
Andrew Tunks
Shastri Ramnath
Non-Executive Chairman
Managing Director
Non-Executive Director
Share Registry
Automic Registry Services
Level 2, 267 St Georges Terrace, Perth WA 6000
Telephone: 1300 288 664
Facsimile:
+61 2 9698 5414
Stock Exchange Listing
Australian Securities Exchange
ASX Code - MEI
Bankers
Bank of Western Australia Ltd
1215 Hay Street
West Perth WA 6005
Auditor
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Company Secretary
Matthew Foy
Registered and Principal Office
Level 8, 99 St Georges Terrace
Perth WA 6000
Telephone: +61 8 9486 4036
+61 8 9486 4799
Facsimile:
info@meteoric.com.au
Email:
www.meteoric.com.au
Web:
CONTENTS
Corporate Directory
Chairman’s Letter
Directors’ Report
Auditor’s Independence Declaration
Consolidated statement of Profit or Loss and Other Comprehensive Income
Consolidated statement of Financial Position
Consolidated statement of Changes in Equity
Consolidated statement of Cash Flows
Notes to and forming part of the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Tenement Details
Other Information
2
3
4
28
29
30
31
32
33
64
65
68
70
METEORIC RESOURCES NL
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CHAIRMAN’S LETTER
Dear Shareholders
Throughout the 2019 Financial Year, Meteoric’s Managing Director, Dr Andrew Tunks, led an exhaustive search for
exploration assets culminating in the acquisition of the Juruena and Novo Astro Gold Projects located in one of the most
prospective gold regions in the world; the Alta Floresta Belt in Mato Grosso State Brazil.
Home to Majors including Anglo American and Vale, significant pegging has occurred in the region since 2017, with
approximately 4 million hectares of copper and gold exploration permit applications being filed with the Brazilian
National Agency for Minerals (ANM), covering virtually the entire Belt.
The Projects secured in the Alta Floresta Belt present a huge opportunity for Meteoric. The Juruena Project hosts an
existing Mineral Resource Estimate (JORC 2012) of 1.3Mt for 261koz Au at 6.3 g/t comprising:
• High grade Dona Maria & Querosene resources - 436,000t @ 14.7g/t for 205,000 oz Au .
•
Large-tonnage, lower-grade Crentes resource with - 846,000t @ 2.0 g/t for 55,000 oz Au.
The Juruena Project has had a long history of artisanal gold production culminating a gold rush in the 1980s when
approximately 30,000 Garimpeiros (illegal miners) exploited alluvial gold and shallow primary mineralisation. Since that
time several other companies including Maddison, Lago Dourado and Crusader Resources have explored the area for
copper gold prospects. Meteoric’s exploration plan is designed around improving the understanding of and then
expanding the known Mineral Resources at depth and along strike while at the same time testing new and under drilled
targets that have indications of gold mineralisation. Meteoric’s first hole JUDD001 intercepted a thick zone of strong
altered granites and assays confirm a broad zone of bonanza grades with 20.6m @ 76.4 g/t Au from 96.8m, which
includes 3.65m @ 404.3 g/t Au from 107.5m. Drilling is ongoing with results to follow well into 2020.
Novo Astro some 30 km East of Juruena is a large area of Garimpeiro workings dating from the 1980s through to the
present day. Coherent gold in soil anomalies and textures of bedrock mineralisation combined with the results of
rockchip sampling of in excess of 250 g/t Au suggest enormous potential. The exploration team have planned a 2500m
initial drilling program to test this previously undrilled Project with drilling expected to commence in late September
2019.
I am extremely proud with what Andrew and his team have achieved in such a short period of time as the Company
continues to test the untapped potential of the Juruena and Novo Astro Projects.
Your Company is in a strong financial position with the capacity to continue its aggressive exploration of its exciting Gold
Projects. We look forward to building upon the achievements of the 2019 Financial Year for the benefit of our
shareholders.
Yours sincerely
Pat Burke
Chairman
METEORIC RESOURCES NL
- 3 -
DIRECTORS’ REPORT
The Company presents its financial report for the consolidated entity consisting of Meteoric Resources NL (Company or
Meteoric) and the entities it controls (Consolidated entity or Group) at the end of, or during, the year ended 30 June
2019.
REVIEW OF OPERATIONS
Brazilian Gold Acquisition
The most significant event of the year was the Company’s change in strategic direction away from Canadian Ni-Cu-Co
assets and into the precious metals space ultimately resulting in the acquisition of the Juruena and Novo Astro Gold
Projects in Brazil.
The two new projects represent the potential for near term gold Mineral Resource growth and exploration success:
•
•
Juruena has an existing high-grade resource at Dona Maria & Querosene resources of 436,000t @ 14.7g/t for
205,000 oz Au.
30 km east of Juruena, the Novo Astro Project has extensive artisanal workings and contains a massive gold in
soil anomaly (+15 km2) with multiple rock chip samples >10 g/t Au.
Announced in March, the Company entered a Binding Term Sheet with Big River Gold Limited (formerly Crusader
Resources Limited (ASX:BRV)) to acquire the Juruena and Novo Astro Gold Projects in the state of Mato Grosso in Central
Brazil, with the Acquisition successfully completed in May 2019.
Terms of the Acquisition
Total consideration payable pursuant to the Acquisition was $3M in cash and milestoned Meteoric Shares as follows:
•
•
•
$1M cash and 50 million Meteoric shares paid following completion of the Acquisition on 31 May 2019;
Subject to Meteoric Shareholder approval, $750,000 in Meteoric Shares upon the delineation of a JORC
Resource of not less than 400,000oz Au at Juruena and/or Novo Astro, with the number of Meteoric Shares
calculated on a 5-day VWAP on the date of the delineation. In the event Shareholder approval is not obtained
an amount of $750,000 shall be payable in cash by Meteoric; and
Subject to Meteoric Shareholder approval, $750,000 in Meteoric Shares upon a decision by the Meteoric Board
to commence mining at Juruena and/or Novo Astro pursuant to a full mining licence, with the number of
Meteoric Shares calculated on a 5-day VWAP on the date of the decision to mine. In the event Shareholder
approval is not obtained an amount of $750,000 shall be payable in cash by Meteoric.
Since the Acquisition announcement, the Company has been actively progressing activities on the ground in Brazil, which
has resulted in Meteoric commencing its maiden drilling program at Juruena post the reporting period.
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
Juruena and Novo Astro Gold Projects
Figure 1: Project Location in Mato Grosso State Brazil.
The Juruena and Novo Astro Projects comprise 24 tenements, located on the western end of the highly prospective Alta
Floresta Belt, which is home to over 40 known gold deposits and is host to major miners including Anglo American and
Vale.
The Alta Floresta Belt is arguably the most desirable gold exploration destination in Brazil. Significant pegging has been
occurring since the latter half of 2017, with approximately 4 million hectares of copper and gold exploration permit
applications being filed with the Brazilian National Mineral Agency (ANM), covering virtually the entire belt. Geologically,
the Alta Floresta belt is a Paleoproterozoic, east west trending, continental magmatic-arc, estimated to have produced
over 7 Moz of Gold to date (source DNPM – Brazil).
Figure 2: Geology and Gold deposits of the Alta Floresta Belt
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
The Acquisition hosts a JORC-Code Compliant Resource Estimate of 1.3Mt for 261koz Au at 6.3 g/t that is contained
within three prospects at Juruena; the high-grade Dona Maria and Querosene and the lower-grade Crentes prospect.
PROSPECT
CATEGORY
CUT OFF
Dona Maria
Querosene
Indicated
Inferred
Sub-total
Indicated
Inferred
Sub-total
Total Indicated
Total Inferred
Total High-Grade
2.5 g/t
2.5 g/t
Crentes
Inferred
1.0 g/t
Tonnes
67,800
148,500
216,300
31,200
188,700
219,900
99,000
337,200
436,200
846,450
Grade (g/t)
13.7
12.2
12.7
28.4
14.7
16.7
18.3
13.6
14.7
2.0
6.3
Oz Au
29,800
58,200
88,000
28,500
89,300
117,800
58,300
147,500
205,800
55,100
260,900
Global Resources
1,282,650
Table 1: MRE for Juruena Project (Reported by BRV 22/12/2017).
Figure 3: Licences acquired the large Garimpo workings at Juruena and Mato Grosso are easily visible.
METEORIC RESOURCES NL
- 6 -
DIRECTORS’ REPORT (continued)
Both Juruena and Novo Astro have been the site of extensive artisanal mining with recorded production in excess of
500,000 oz of gold, largely produced during a gold rush in the 1980s when over 20,000 Garimpeiros (artisanal miners)
worked in the Juruena and Novo Astro areas.
Maiden Drill Program - Juruena
Meteoric has partnered with Brazil’s largest drilling Company, GEOSOL, to carry out the maiden drilling program which
comprises approximately 26 holes for 4,700m. An advantage of working with GEOSOL is they have a logistical base
located in the Alta Floresta Belt in the township of Peixoto de Azevedo, with such proximity being crucial to minimising
unwanted delays and costs.
Two rigs are being utilised for the program working two shifts per day.
Drilling at Juruena is targeting existing Bonanza gold grade intercepts at multiple targets including (ASX_MEI 26/3/2019):
DONA MARIA MD-09/2016
10m @ 101.1 g/t
from 127m
including 2.4m @ 389 g/t
DONA MARIA MR-10/2015
8m @ 62.4 g/t
from 100m
including 3.0m @ 162 g/t
QUEROSENE
QD-44/2016
3.6m @ 554.3 g/t
from 147m
including 1.0m @ 1,992 g/t
QUEROSENE
QD-43/2016
2.9m @ 76.7 g/t
from 113m
including 0.5m @ 346 g/t
TOMATE
TD-06/2016
37m @ 3.7 g/t
from 132m
including 2.0m @ 48g/t
UILLIAM
JRND062
9m @ 15.4 g/t
from 204m
including 1.0m @ 80g/t
The program will concentrate on the high-grade zones at the Dona Maria and Querosene prospects as well as testing
other known prospects including Mauro, Tomate and Uilliam. The Company will continue to refine targets as the drilling
progresses considering a combination of visual logging of the drill cores and assay results from the laboratory.
Drilling commenced in July and is it is expected to be complete in December as the rainy season commences. Samples
will be despatched for assaying intermittently and reported to the market as they become available.
METEORIC RESOURCES NL
- 7 -
DIRECTORS’ REPORT (continued)
Figure 4: Meteoric Senior Geologist Marcelo Gomez examining core from drilling.
Figure 5: Drilling beneath the old workings at Dona Maria Prospect.
METEORIC RESOURCES NL
- 8 -
DIRECTORS’ REPORT (continued)
Figure 6: Detail of Geology and the main prospects at Juruena.
Juruena – High-grade drill intercepts
There has been considerable previous exploration and artisanal mining throughout the Juruena and Novo Astro areas.
Gold mineralisation at Juruena has been intersected at multiple prospects, three of which have been sufficiently drilled
to resource status. Mineralisation is typically occurs associated with strong quartz + sericite + pyrite (Phyllic) alteration
surrounding sheeted veins emplaced into a granitic host. Ore bodies are typically narrow (less than 10m true thickness)
and steeply dipping. The strike of the mineralised zones varies from prospect to prospect. Of the 14 target zones
identified by artisanal mining, geochemistry and geophysical techniques, only 7 have been drill tested.
Prospect
Querosene
Dona Maria
Dona Maria
Capixba
Dona Maria
Querosene
Dona Maria
Dona Maria
Dona Maria
Tatu
Tatu
Hole
Intercept
QD-44/2016
3.6m @ 554.3 g/t
MD-09/2016
10m @ 101.1 g/t
MR-10/2015
8m @ 62.4 g/t
J-81
J-07
9 m @ 54.4 g/t
21.8m @ 20.9 g/t
QD-43/2016
2.9m @ 76.7 g/t
MD-06/2016
1.5m @ 141.4 g/t
MD-12/2016
8.3m @ 23.7 g/t
MD-01/2015
8m @ 21.8 g/t
TD-06
37m @ 3.7 g/t
JRNRC032
59m @ 2.2 g/t
Querosene
JRND018
4m @ 32.5 g/t
From
147m
127m
100m
33m
109m
113m
45m
196m
179m
132m
3m
65m
(g/t Au).m
Including
1995
1011
499
486
456
222
212
197
174
137
131
130
1m @ 1992 g/t
2.4m @ 389 g/t
3m @ 162 g/t
4m @ 131.3 g/t
9.5m @ 14.6 g/t
&
5.8m @ 52.4 g/t
0.5m @ 346 g/t
0.5m @ 209 g/t
1.5m @ 90.0 g/t
1.9m @ 84.5 g/t
2m @ 47.7 g/t &
2m @ 15.4 g/t
1m @ 62.6 g/t
1m @ 120.8 g/t
METEORIC RESOURCES NL
- 9 -
DIRECTORS’ REPORT (continued)
Hole
Intercept
From
(g/t Au).m
Including
Prospect
Dona Maria
Dona Maria
Dona Maria
Crentes
MD-12/2016
1.5m @ 76.7 g/t
MD-14/2016
4m @ 27.1 g/t
JRND012
1m @ 101.1 g/t
J-01
35m @ 2.8 g/t
Querosene
JRND022
2m @ 47.1 g/t
Crentes
Crentes
J-02
J-09
1.4m @ 63.3 g/t
19m @ 4.3 g/t
Querosene
Querosene
Querosene
Querosene
Crentes
Querosene
QR-03/2014
3m @ 26.4 g/t
QD-39/2016
1.4m @ 48.6 g/t
QR-20/2015
4m @ 16.9 g/t
JRDN020
1m @ 62.2 g/t
J-33
2m @ 31.5 g/t
JRND018
3m @ 20.3 g/t
78m
84m
59m
18m
69m
91m
4m
73m
84m
82m
122m
49m
136m
115
108
101
98
94
87
82
79
68
68
62
62
61
1m @ 70.0 g/t
1m @ 10.2 g/t &
1m @ 14.3 g/t
1m @ 80.7 g/t
0.8m @ 108 g/t
1.2m @ 21.3 g/t
&
0.6m @ 26.5 g/t
0.5m @ 151 g/t
0.4m @ 88 g/t
1m @ 60 g/t
0.5m @ 109.6 g/t
1m @ 58.2 g/t
Table 2: Selection of high-grade intercepts from the Juruena Project ranked on gram-metres (intersection width multiplied by
gold grade). Note the thicker lower-grade intercepts from Crentes and some other exceptional results from Capixaba, Uiliam
and Tatu that have received only minimal drilling to date. All drilling results previously released by Big River Gold – ASX: BRV–
08/05/15, 01/07/15, 02/08/16, 21/09/16, 23/11/16, 08/06/16, 08/06/18.
Juruena - Mineral Resource Estimate (MRE)
The Juruena Mineral Resource Estimate reported by Big River Gold (previously Crusader Resources) in Dec 2016 in
compliance with the JORC 2012 code is contained in three prospects: Crentes (55koz), Querosene (118koz) and Dona
Maria (88koz). Importantly, mineralisation is largely open along strike and at depth and these are the targets for the
initial drill program.
The mineral resource is available on the ASX website. The mineral resource estimate was reported pursuant to the JORC
2012 code and it is the opinion of Meteoric’s competent person that the information in this market announcement is an
accurate representation of the resource estimates at Dona Maria, Querosene and Crentes deposits.
PROSPECT
CATEGORY
CUT OFF
Dona Maria
Querosene
Indicated
Inferred
Sub-total
Indicated
Inferred
Sub-total
Total Indicated
Total Inferred
Total High-Grade
2.5 g/t
2.5 g/t
Crentes
Inferred
1.0 g/t
Tonnes
67,800
148,500
216,300
31,200
188,700
219,900
99,000
337,200
436,200
846,450
Global Resources
1,282,650
Table 3: MRE for Juruena Project (Reported by BRV 22/12/2017).
METEORIC RESOURCES NL
Grade (g/t)
13.7
12.2
12.7
28.4
14.7
16.7
18.3
13.6
14.7
2.0
6.3
Oz Au
29,800
58,200
88,000
28,500
89,300
117,800
58,300
147,500
205,800
55,100
260,900
- 10 -
DIRECTORS’ REPORT (continued)
Novo Astro Project
Novo Astro is a separate, standalone prospect on the Eastern edge of Meteoric’s Brazilian land holding approximately
30km from Juruena. The 5km roughly circular gold anomaly has been extensively worked by Garimpeiros and the massive
scale of Novo Astro soil anomaly (+15 km2) suggests a well-developed and large gold system.
The anomaly has 13 historic rock chip samples >10 g/t Au (highest value 264 g/t Au) and has been a rich source of alluvial
gold to local Garimpeiros for over 40 years. (Big River Gold – ASX:BRV 22/09/16 presentation “Juruena Gold Project- Path
to Production”).
Soil sampling and mapping by previous explorers identified a suite of high-temperature minerals including bismuth,
tellurium, molybdenum and tungsten that are spatially related to Intrusion Related Gold Systems (IRGS) vastly increasing
the prospectivity of the area.
Given the Novo Astro project has never been drilled it leaves potential for significant resource to be discovered within
the large tenement holding.
Figure 7: Anomalous gold in soils and rock chip samples indicating the immense size of the Novo Astro footprint.
Novo Astro Geology
The Company’s initial field work is being led by Dr Marcelo Carvahlo and initial impressions have been very positive,
hence the decision to proceed to drilling immediately.
Thick zones of strongly altered intrusive rock have been identified with intense vein stockworks that can reach up to 50m
across the Garimpeiro workings. Areas where sulfide rich quartz veining is more intense, are preferentially mined down
the water table at approximately 25m below the surface.
METEORIC RESOURCES NL
- 11 -
DIRECTORS’ REPORT (continued)
Historical regional chip sampling over those pits shows impressive values for gold (up to 264 g/t Au) and Silver (50.1 g/
t Ag)(ASX Announcement 21 March 2019).
Hydrothermal alteration associated with those stockwork zones and particularly to the richer gold zones are basically
composed of sericite and pyrite. In some cases, the sericitisation is so strong that it completely obliterates the original
granitic structure. The sulphide (Pyrite) alteration is intense and can be 30% of the rock content. Because the rocks are
partially oxidised due to weathering, fresh sulphides are rare with boxworks of limonite after pyrite commonly
developed.
Figure 8: A) Strongly sericite pyrite and partially oxidised granitic host.
B) Fresh granite cut by quartz veins with accompanying coarse-grained pyrite.
Figure 9: Aerial shot of Novo Astro Village highlighting the two types of mineralisation found in the area.
METEORIC RESOURCES NL
- 12 -
DIRECTORS’ REPORT (continued)
Canadian Assets
The Company’s Canadian Cobalt Portfolio currently consists of seven cobalt projects; six located in areas in Eastern
Ontario historically known for silver and cobalt production, including the Cobalt town region which demonstrate
potential for high grade cobalt mineralisation, and one in West Ontario, targeting cobalt-copper-gold mineralisation.
Throughout the reporting period, Meteoric continued its systematic exploration program across the entire cobalt
portfolio, identifying multiple targets for exploration however given the acquisition of the Juruena and Novo Astro
Projects and the Company’s subsequent shift in focus to Brazilian Gold, the Canadian Project portfolio has been placed
under review.
Disposal of Non-Core Assets
Figure 10: Meteoric Canadian Cobalt Portfolio
During the December quarter, Meteoric entered into a conditional tenement sale agreement to dispose of its non-
core Canadian Nickel-Copper projects, Midrim and LaForce to ASX listed TopTung Limited (ASX:TTW). However, in
early January 2019, Meteoric was advised that as a result of present market conditions, TopTung had elected not to
proceed with the acquisition.
The Company continues to review potential farm-out / sale opportunities for its portfolio of non-core Canadian
assets.
Australian Projects
Webb Diamond JV
Ownership: 17% Meteoric / 83% Geocrystal Pty Ltd (*Meteoric 11% of E80/4506)
The Webb Diamond JV covers an area of 400km2 and is focused on the evaluation of a large kimberlite field comprising
280 bulls-eye magnetic targets. 23% of these targets have been drill tested with 51 kimberlite bodies identified. No
significant work was reported during the reporting period.
Warrego North IOCG Project, Northern Territory Australia
The Warrego North Project is located approximately 20km north west of the historical high-grade Warrego copper-gold
mine, in the western part of the Tennant Creek Mineral Field.
Warrego was the largest deposit mined in the area producing 1.3Moz Au and 90,000 tonnes of copper historically. Chalice
Gold Mines Limited (ASX:CHN) can earn up to 70% interest in the Project by sole funding $800,000. There was no activity
reported by the JV partner during the reporting period.
METEORIC RESOURCES NL
- 13 -
DIRECTORS’ REPORT (continued)
Babbler
The Babbler licence is situated 34km ESE of Tennant Creek and contains a prominent magnetic anomaly. Very little
modern exploration has been carried out in the area and no work was completed by the Company in the reporting
period.
Competent Person Statement
The information in this report that relates to mineral resource estimates and exploration results is based on information reviewed,
collated and fairly represented by Mr Peter Sheehan who is a Member of the Australasian Institute of Mining and Metallurgy and a
consultant to Meteoric Resources NL. Mr Sheehan has sufficient experience relevant to the style of mineralisation and type of deposit
under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition
of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Sheehan consents to the inclusion in this report of the matters based on this information in the form and context in
which it appears. Additionally, Mr Sheehan confirms that the entity is not aware of any new information or data that materially affects
the information contained in the ASX releases referred to in this report.
Corporate
Dr Andrew Tunks has assumed the role of Managing Director on a full-time basis, on a salary of $276,000p.a., with a
termination period of 3 months and otherwise on standard terms and conditions.
Share Purchase Plan
The Share Purchase Plan previously announced on 21 March 2019 to raise up to $750,000 at $0.01 per share closed on
Friday, 12 April 2019 heavily oversubscribed with applications totalling $1.76 million.
Small Shareholding Sale Facility
The Company established a small shareholding sale facility for shareholders on the register with Meteoric holdings
valued at less than $500, to sell their shares without incurring any brokerage or handling costs that could otherwise
make a sale uneconomic. The Facility was closed on 10 May 2019 with the final number of shares sold under the Facility
being 12,773,790 from 703 shareholders representing approximately 31.8% of the total number of shareholders
presently holding shares in the Company.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
During the year the Company acquired the Juruena and Novo Astro Gold Projects in Brazil and the Company’s subsequent
change of focus and strategy to Gold Exploration.
Other than as noted above, there were no significant changes in the state of affairs of the Company during the financial
period.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Juruena Drilling Progress
Drilling commenced at Dona Maria in early August 2019 with almost immediate success. JUDD001 intercepted visible
gold at 112.8m within a wide zone of intense potassic alteration. Subsequently diamond drill holes JUDD001 intercepted
a thick zone of strongly altered granite and assays confirm a broad zone of bonanza grades with 20.6m @ 94.9 g/t Au
from 96.8m, which includes 3.65m @ 508.4 g/t Au from 107.5m.
Diamond drill holes JUDD002 intercepted two separate zones of alteration and gold mineralisation returning assays of
1.1m @ 22.68 g/t Au from 41.2m and 4.5m @ 6.20 g/t Au from 46.6m.
METEORIC RESOURCES NL
- 14 -
DIRECTORS’ REPORT (continued)
Figure 11: Free gold within intensely sericite +pyrite +phengite + chlorite + quartz altered granite from DDH JUDD001
Figure 12: JUDD001 Cross Section (oblique to grid)
through Dona Maria highlighting existing ore zone
interpretation, historic drilling by Crusader and Lago
Dorado.
JUDD001 was targeted to confirm high-grades
intercepted in MR-10/2015 and is drilled with an
Azimuth of 070 and is oblique to the EW local grid.
For this reason, other holes only appear as they cut
this oblique section.
Novo Astro
In July-August 2019 the Meteoric Exploration Team carried out reconnaissance mapping and rock chip sampling at the
Novo Astro Project which defined four targets for follow up drilling: Graça, Matteus, José, and Bodhi (Figure 13). The
best results from the rock chip sampling include: 290.13g/t, 8.75g/t, 4.72g/t, 2.42g/t, and 2.21g/t Au. These results
complement previous historic rock chip sampling across the area which returned grades of up to 264 g/t (ASX: BRV
11/09/2013).
To follow up on these exciting results the Company has planned an initial twenty-one (21) hole drilling program for
2,500m at Novo Astro. The drill collars are shown as blue and white circles in the following figure.
METEORIC RESOURCES NL
- 15 -
DIRECTORS’ REPORT (continued)
Figure 13. Mapping by Meteoric geologists has highlighted both alluvial gold mineralisation and primary gold mineralisation
being exploited by Garimpeiros. Reconnaissance rock chip sample locations (triangles) overlayed on historic rock chip samples
(circles). Meteoric planned drill collars are shown as blue circles with white crosses.
Capital Raise
On 20 August 2019 Meteoric advised it had completed a placement to raise $2.7 million through the issue of 84,375,000
shares at an issue price of 3.2¢ per share (Placement). Funds raised from the Placement will be used to accelerate and
expand the drilling exploration program at the Company’s 100% owned Juruena and Novo Astro Gold Projects in Brazil.
No other material matters have occurred subsequent to the end of the financial year which requires reporting on other
than those which have been noted above or reported to ASX.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
In general terms. the review of operations of the Group gives an indication of likely developments and the expected
results of the operations. In the opinion of the directors. disclosure of any further information would be likely to result
in unreasonable prejudice to the Group.
DIRECTORS
The following persons were Directors who held office during the year and up to the date of signing this report, unless
otherwise states are:
Mr Patrick Burke
Non-Executive Chairman
Appointed 04.12.2017
Ms Shastri Ramnath
Non-Executive Director
Appointed 01.10.2017
Dr Andrew Tunks
Managing Director
Appointed 10.01.2018
METEORIC RESOURCES NL
- 16 -
DIRECTORS’ REPORT (continued)
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were to explore mineral tenements in Brazil, Canada, Western
Australia, and Northern Territory.
DIVIDENDS
No amounts have been paid or declared by way of dividend by the Company since the end of the previous financial year
and the Directors do not recommend the payment of any dividend.
FINANCIAL POSITION
The Group made a loss from continuing operations of $4,450,617 for the year (30 June 2018: $6,731,507).
At 30 June 2019, the Group had net assets of $2,379,071 (30 June 2018: $3,129,953) and cash assets of $2,530,299 (30
June 2018: $3,299,194).
INFORMATION ON DIRECTORS
The following information is current as at the date of this report.
Mr Patrick Burke
Non-Executive Chairman (appointed 4 December 2017)
Qualifications
Experience
LLB
Mr Burke has extensive legal and corporate advisory experience and over the last 15
years has acted as a Director for a large number of ASX, NASDAQ and AIM listed
companies. His legal expertise is in corporate, commercial and securities law in particular,
capital raisings and mergers and acquisitions. His corporate advisory experience includes
identification and assessment of acquisition targets, strategic advice, deal structuring and
pricing, funding, due diligence and execution.
Equity Interests
13,000,000 Options exercisable at 2.4c on or before 28 May 2023.
Directorships held in other
listed entities
Mr Burke is currently a Director of ASX listed Triton Minerals Limited, Vanadium
Resources Limited, Koppar Resources Limited, Mandrake Resources Limited and
Transcendence Technologies Limited.
In the last three years Mr Burke was a Non-executive Director of Westwater Resources,
Inc., Bligh Resources Limited, ATC Alloys Limited and Pan Pacific Petroleum NL.
Dr Andrew Tunks
Managing Director (appointed 10 January 2018)
Qualifications
Experience
B.Sc. (Hons.), Ph.D
Dr Tunks is a member of the Australian Institute of Geoscientists holding a B.Sc. (Hons.)
from Monash and a Ph.D. from the University of Tasmania. Dr. Tunks has held
numerous senior executive positions in a range of small to large resource companies
including Auroch Minerals, A-Cap Resources, IAMGOLD Corporation and Abosso
Goldfields.
In his role as CEO and Director of A-Cap Resources Dr. Tunks led the discovery of the
10th largest uranium resource in the world and managed four separate capital raisings
totalling AUD$45 million. Through his 30-year career within the resource and academic
sectors Dr. Tunks has developed a unique skill set including technical, promotional and
corporate expertise which will make him invaluable in the next stages of Meteoric's
project advancement.
Equity Interests
15,000,000 Options exercisable at 2.4c on or before 28 May 2023.
903,000 ordinary fully paid shares.
Directorships held in other
listed entities
Dr Tunks is currently a Director of ASX listed West Wits Mining Ltd.
In the last three years Dr Tunks has not held any listed Directorships.
METEORIC RESOURCES NL
- 17 -
DIRECTORS’ REPORT (continued)
Ms Shastri Ramnath
Non-Executive Director (appointed 1 October 2017)
Qualifications
Experience
MSc., MBA, P.Geo.
Throughout her 20 years in the exploration and mining industry, Ms Ramnath has
gained extensive international experience, working on projects in Canada, the United
States (Nevada), South America (Chile, Ecuador & Peru) and Africa (Guinea, Burkina
Faso, Zambia, Namibia & South Africa).
She has extensive experience in Canadian mining and exploration including roles at
Falconbridge Limited in Winnipeg, Manitoba, FNX Mining (now KGHM International) in
Sudbury, Ontario, and as the President and Managing Director of Bridgeport Ventures,
a TSX-listed junior exploration company.
Equity Interests
1,500,000 Options exercisable at 2.4c on or before 28 May 2023.
Directorships held in other
listed entities
No other current Directorships. In the last three years Ms Ramnath has not held any
listed Directorships.
Company Secretary
Mr Matthew Foy, appointed 17 January 2018
BCom, GradDipAppFin, GradDipACG, SAFin, AGIA, ACIS
Mr Foy is a contract Company Secretary and active member of the WA State Governance Council of the Governance
Institute Australia (GIA). He spent four years at the ASX facilitating the listing and compliance of companies and
possesses core competencies in publicly listed company secretarial, operational and governance disciplines. His working
knowledge of ASIC and ASX reporting and document drafting skills ensure a solid base to make a valued contribution to
Meteoric.
MEETINGS OF DIRECTORS
During the financial year ended 30 June 2019, the
following director meetings were held:
P. Burke
S. Ramnath
A. Tunks
Eligible to
Attend
Attended
4
4
4
4
4
4
AUDIT COMMITTEE
At the date of this report the Company does not have a
separately constituted Audit Committee as all matters
normally considered by an audit committee are dealt with
by the full Board.
REMUNERATION COMMITTEE
At the date of this report, the Company does not have a
separately constituted Remuneration Committee and as
such, no separate committee meetings were held during
the year. All resolutions made in respect of remuneration
matters were dealt with by the full Board.
METEORIC RESOURCES NL
- 18 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited)
The remuneration report is set out under the following main headings:
A.
B.
C.
D.
E.
F.
G.
H.
I.
Introduction
Remuneration governance
Key management personnel
Remuneration and performance
Remuneration structure
•
•
Executive
Non-executive directors
Executive service agreements
Details of remuneration
Share-based compensation
Other information
This report details the nature and amount of remuneration for each Director of Meteoric Resources NL (Company) and
key management personnel.
A.
Introduction
The remuneration policy of the Company has been designed to align Director and management objectives with
shareholder and business objectives by providing a fixed remuneration component, and offering specific long-term
incentives, based on key performance areas affecting the Group’s financial results. Key performance areas include cash
flow management, growth in share price, successful exploration and subsequent exploitation of the Group’s tenements.
The Company believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best
management and Directors to run and manage the Group, as well as create goal congruence between Directors,
Executives and Shareholders.
During the period the Company did not engage remuneration consultants.
B. Remuneration governance
The Board retains overall responsibility for remuneration policies and practices of the Company. Due to the Company's
size and current stage of development, the Board has not established a separate nomination and remuneration
committee at this stage. This function is performed by the Board.
The Board aims to ensure that the remuneration practices are:
•
•
•
•
competitive and reasonable, enabling the Company to attract and retain key talent;
aligned to the Company’s strategic and business objectives and the creation of shareholder value;
transparent and easily understood, and
acceptable to Shareholders.
At the 2018 annual general meeting, the Company’s remuneration report was passed by the requisite majority of
shareholders (100% by a show of hands).
METEORIC RESOURCES NL
- 19 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
C. Key management personnel
The key management personnel in this report are as follows:
Non-Executive Directors – Current
•
•
P Burke (Non-Executive Chairman) – appointed 4 December 2017
S Ramnath (Non-Executive Director) – appointed 1 October 2017
Executives – Current
•
A Tunks (Managing Director) – appointed 10 January 2018
D. Remuneration and performance
The following table shows the gross revenue, net losses attributable to members of the Company and share price of the
Company at the end of the current and previous four financial years.
Revenue from continuing
operations
Net loss attributable to members
of the Company
30 June 2019
$
30 June 2018
$
30 June 2017
$
30 June 2016
$
30 June 2015
$
92,126
43,665
25,123
24,225
394,720
(4,450,617)
(6,731,507)
(449,444)
(940,457)
(413,972)
Share price
0.025
0.027
0.036
0.012
0.008
There is no relationship between the financial performance of the Company for the current or previous financial year
and the remuneration of the key management personnel. Remuneration is set having regard to market conditions and
encourage the continued services of key management personnel.
E. Remuneration structure
Executive remuneration structure
The Board’s policy for determining the nature and amount of remuneration for senior executives of the Group is as
follows.
The remuneration policy, setting the terms and conditions for executive directors and other senior executives, was
developed and approved by the Board. All Executives receive a base salary (which is based on factors such as length of
service and experience), superannuation, fringe benefits, options and performance incentives. The Board reviews
Executive packages annually by reference to the Group’s performance, executive performance, and comparable
information from industry sectors and other listed companies in similar industries.
Executives are also entitled to participate in the employee share option and performance rights plans. If an Executive is
invited to participate in an employee share option or performance rights plan arrangement, the issue and vesting of any
equity securities will be dependent on performance conditions relating to the Executive’s role in the Group and/or a
tenure based milestone.
The employees of the Group receive a superannuation guarantee contribution required by the Government, which is
currently 9.50%, and do not receive any other retirement benefits.
METEORIC RESOURCES NL
- 20 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Non-executive remuneration structure
In line with corporate governance principles, Non-executive Directors of the Company are remunerated solely by way of
fees and statutory superannuation. Non-executive Directors fees are set at the lower end of market rates for comparable
companies for time, responsibilities and commitments associated with the proper discharge of their duties as members
of the Board.
Non-executive Directors' fees and payments are reviewed annually by the Board. For the year ended 30 June 2019,
remuneration for a Non-executive Director was $40,000 per annum and Non-executive Chairman was $60,000 per
annum inclusive of superannuation. There are no termination or retirement benefits paid to Non-executive Directors
(other than statutory superannuation). Non-executive Directors of the Company may also be paid a variable consulting
fee for additional services provided to the Company of $1,000 per day inclusive of superannuation.
The maximum aggregate amount of fees that can be paid to Non-executive Directors, as part of the constitution, is
$250,000 per annum.
Fees for Non-executive Directors are not linked to the performance of the Group. Non-executive Directors are able to
participate in the employee share option or performance rights plans.
On 21 May 2019 shareholder approval was sought and obtained to issue 13,000,000 options to Mr Burke and 1,500,000
options to Ms Ramnath.
F. Executive service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
The service agreements specify the components of remuneration, benefits and notice periods. Participation in the share
and performance rights plans are subject to the Board's discretion. Other major provisions of the agreements relating
to remuneration are set out below. Termination benefits are within the limits set by the Corporations Act 2001 such
that they do not require shareholder approval.
On 21 May 2019 shareholder approval was sought and obtained to issue 15,000,000 options to Dr Tunks.
Contractual arrangement with key management personnel
Executives – Current
Name
A Tunks (1), Executive Director
Effective date
Term of
agreement
Notice
period
Base
per annum
$
Termination
payments
8-Jan-18
No fixed term
3 months
200,000
3 months
1-Apr-19
No fixed term
3 months
276,000
3 months
1 Dr Tunks is a Director of Tunks Geo Consulting Pty Ltd, which receives Dr Tunks’ Director fees.
METEORIC RESOURCES NL
- 21 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
G. Details of remuneration
Remuneration of KMP for the 2019 financial year is set out below:
Short-term benefits
Post-employment
benefits
Share-based payments (2)
Total
Cash
salary
Consulting
fees
Non-cash
benefits (1)
Super-
annuation
Termi-
nation
Performance
rights
Options
$
$
$
$
$
$
$
Non-Executive Directors – Current
P Burke
60,000
75,000
S Ramnath (3)
40,045
Executives - Current
A Tunks (4)
218,998
-
-
Total
319,043
75,000
-
-
2,750
2,750
-
-
-
-
-
-
-
-
8,532
136,959
280,491
4,151
15,803
59,999
17,064
158,030
396,842
29,747
310,792
737,332
1 Other benefits include the provision of a mobile phone and internet allowance.
2 Performance rights and options granted as part of remuneration package, AASB 2 – Share Based Payments requires the fair value at grant
date of the performance rights granted to be expensed over the vesting period. Management note that on 9 November 2018 the
performance rights granted on 6 April 2018 were cancelled by agreement for nil consideration. The cancellation of the performance rights
was accounted for as an acceleration of vesting, an amount that otherwise would have been recognised for services received over the
remainder of the vesting period were recognised immediately.
3 Ms Ramnath, Non-executive Director, is a Director of Ram Jam Holdings Inc, which received Ms Ramnath’s director fees during the period.
4 Dr Tunks, Executive Director, is a Director of Tunks Geo Consulting Pty Ltd as Trustee for Tunks Family Trust, which received Dr Tunks’
Director fees during the period.
The following table sets out each KMP’s relevant interest in fully paid ordinary shares, options and performance rights
to acquire shares in the Company, as at 30 June 2019:
Name
A Tunks
P Burke
S Ramnath
Fully paid ordinary shares
903,000
-
-
Options
15,000,000
13,000,000
1,500,000
Performance rights
-
-
-
METEORIC RESOURCES NL
- 22 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Remuneration of KMP for the 2018 financial year is set out below:
Short-term benefits
Post-employment
benefits
Share-based payments
Total
Cash
salary
Consulting
fees
Non-cash
benefits (1)
Super-
annuation
Termi-
nation
Performance
rights (2)
Options
$
$
$
$
$
$
$
Non-Executive Directors – Current
P Burke (3)
35,000
35,000
S Ramnath (4)(5)
29,877
Non-Executive Director – Former
N Bassett (6)
17,105
Executives - Current
A Tunks (7)(8)
91,667
Executives – Former
G Clatworthy (9)
G Sakalidis (10)
45,667
16,557
-
-
-
-
-
Total
235,873
35,000
-
-
-
-
-
-
-
-
-
1,625
-
-
-
-
-
6,561
23,397
1,573
-
718
349
52,500
1436
52,500
15,000
9,759
23,397
122,503
-
-
-
-
-
-
-
70,718
30,226
71,230
93,103
128,125
33,130
426,532
1 Other benefits include the provision of car parking and a mobile phone allowance.
2 Performance rights granted as part of remuneration package, AASB 2 – Share Based Payments requires the fair value at grant date of the
performance rights granted to be expensed over the vesting period.
3 Mr Burke was appointed on 4 December 2017.
4 Ms Ramnath was appointed on 1 October 2017.
5 Ms Ramnath, Non-Executive Director, is a director of Ram Jam Holdings Inc, which received Ms Ramnath’s director fees during the period.
6 Mr Bassett resigned as Non-Executive Chairman 4 December 2017.
7 Dr Tunks was appointed on 10 January 2018.
8 Dr Tunks, Executive Director, is a director of Tunks Geo Consulting Pty Ltd as Trustee for Tunks Family Trust, which received Dr Tunks’
director fees during the period.
9 Mr Clatworthy resigned as Executvie Director 9 April 2018.
10 Mr Sakalidis resigned as Executive Technical Director 29 November 2017.
H. Share-based compensation
Performance rights
During the year ended 30 June 2019, the following performance rights were granted, vested and/or lapsed to KMP:
Grant
value(1)
Grant date
$
P Burke - Non-Executive Chairman
Number
granted
Number of
vested during
the year
Number
cancelled
during the
year
Expense
recognised
during the
year
06-Apr-18
9,250
5,500,000
S Ramnath - Non-Executive Director
06-Apr-18
4,500
2,000,000
A Tunks – Executive Director
06-Apr-18
18,500
11,000,000
-
-
-
(5,500,000)
8,532
(2,000,000)
4,151
(11,000,000)
17,064
Maximum
value yet to
expense
$
-
-
-
1 The value of performance rights is calculated as the fair value of the rights at grant date and allocated to remuneration equally over the
period from grant date to expected vesting date.
METEORIC RESOURCES NL
- 23 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Management note that on 9 November 2018 the performance rights granted on 6 April 2018 were cancelled by
agreement for nil consideration. The cancellation of the performance rights was accounted for as an acceleration of
vesting, an amount that otherwise would have been recognised for services received over the remainder of the vesting
period were recognised immediately.
Options
Grant
date (1)
Grant
value (2)
$
Number
granted
Value per
option (3)
$
Expiry
date
Vesting
date
Number
exercised
Vested %
P Burke - Non-Executive Chairman
21-May-19
136,959
13,000,000
0.011
20-May-23
21-May-19
S Ramnath - Non-Executive Director
21-May-19
15,803
1,500,000
0.011
20-May-23
21-May-19
A Tunks – Executive Director
21-May-19
158,030
15,000,000
0.011
20-May-23
21-May-19
-
-
-
100%
100%
100%
1
Issuance of options to directors were dependent on all the acquisition resolutions being passed, with no other performance conditions
attached. The securities were approved on the 21 May 2019 at the Company’s General Meeting.
2 Value of options has been calculated in accordance with AASB 2: Share Based Payments.
3 Refer to Note 13 of the financial statements for details of the assumptions used in calculating the value of each option as at their grant
date.
The options carry no dividend or voting rights. No conditions must be satisfied for the options to vest. When exercisable,
each option is convertible into one ordinary share of Meteoric Resources NL. No options were exercised during the
year, the table above shows the number of options over ordinary shares in the Company provided as remuneration
during the year to KMP.
Relative proportions of fixed vs variable remuneration expense
The following table shows the relative proportions of remuneration that are linked to performance and those that are
fixed, based on the amounts disclosed as statutory remuneration expense for the 2019 and 2018 financial years:
Fixed
remuneration
At risk STI
At risk LTI
Fixed
remuneration
At risk STI At risk LTI
Non-Executive Directors – Current
P Burke
S Ramnath
48%
67%
Non-Executive Director – Former
2019
52%
33%
N Bassett (1)
Executives - Current
A Tunks
Executives – Former
G Clatworthy (2)
G Sakalidis (3)
56%
44%
-
-
-
2018
-
-
-
-
-
-
99%
99%
26%
99%
59%
55%
1%
1%
74%
1%
41%
45%
1 Mr Bassett resigned as Non-Executive Chairman 4 December 2017.
2 Mr Clatworthy resigned as Executvie Director 9 April 2018.
3 Mr Sakalidis resigned as Executive Technical Director 29 November 2017.
The variable remuneration is based on remuneration committee discretion.
METEORIC RESOURCES NL
- 24 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Reconciliation of equity instruments held by KMP
The following table sets out a reconciliation of each KMP’s relevant interest in ordinary shares and options and
performance rights to acquire shares in the Company:
Balance at the start
of the year/period
Granted/
Acquired
Exercised/
Vested
Lapsed
Other
changes
Balance at
year end
Non-Executive Directors – Current
P Burke (1)
Fully paid ordinary shares
Options
-
-
-
13,000,000
Performance rights
5,500,000
S Ramnath (2)
Fully paid ordinary shares
Options
-
-
Performance rights
2,000,000
-
-
1,500,000
Executives – Current
A Tunks (4)
Fully paid ordinary shares
Options
-
-
903,000
15,000,000
Performance rights
11,000,000
-
I. Other information
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,000,000
(5,500,000)
-
-
-
-
1,500,000
(2,000,000)
-
-
-
903,000
15,000,000
(11,000,000)
-
Dr Andrew Tunks, Executive Director, is a Director of Tunks Geo Consulting Pty Ltd, which received Dr Tunks’ Director
and fees during the period. At year end the Company had no outstanding payable balance (30 June 2018: $16,667 (ex
GST).
Ms Shastri Ramnath, Non-Executive Director, is a Director of Ram Jam Holding Inc. which received Ms Ramnath’s Director
fees during the period. At year end the Company had an outstanding balance payable of $3,781 (30 June 2018: $7,558).
This concludes the Remuneration Report which has been audited.
UNISSUED ORDINARY SHARES
Unissued ordinary shares under option/right at the date of this report are 94,000,000 and broken-down as follows:
Options
-
-
Issued to Directors
Issued to employees, consultants and vendors
33,000,000
57,000,000
Options over ordinary shares can be exercised between $0.011 to $0.024.
Performance rights
-
Issued to Directors, employees and advisors
4,000,000
Performance rights may be converted subject to various performance milestones.
METEORIC RESOURCES NL
- 25 -
DIRECTORS’ REPORT (continued)
ENVIRONMENTAL ISSUES
The Company’s policy is to comply with, or exceed, its environmental obligations in each jurisdiction in which it operates.
No known environmental breaches have occurred
ACCESS TO INDEPENDENT ADVICE
Each Director has the right, so long as he is acting reasonably in the interests of the Company and in the discharge
of his duties as a Director, to seek independent professional advice and recover the reasonable costs thereof from
the Company.
The advice shall only be sought after consultation about the matter with the Chairman (where it is reasonable that
the Chairman be consulted) or, if it is the Chairman that wishes to seek the advice or it is unreasonable that he be
consulted, another Director (if that be reasonable).
The advice is to be made immediately available to all Board members other than to a Director against whom
privilege is claimed.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into agreements indemnifying, to the extent permitted by law, all the Directors and Officers
of the Company against all losses or liabilities incurred by each Director and Officer in their capacity as Directors and
Officers of the Company. Disclosure of the nature of the liability covered by and the amount of the premium payable for
such insurance is subject to a confidentiality clause under the contract of insurance The Company has not provided any
insurance for the external auditor of the Company or a body corporate related to the external auditor
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out
in this annual report.
NON-AUDIT SERVICES
From time to time the Consolidated Entity may decide to employ an external auditor on assignments additional to their
statutory audit duties where the auditor's expertise and experience with the Consolidated Entity are important.
The Board is satisfied that the provision of non-audit services during the period is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001.
During the year ended 30 June 2019, the following amounts were paid or payable for non-audit services provided to the
Group by the auditor:
Taxation services
BDO Tax (WA) Pty Ltd
Tax compliance services
Total remuneration for taxation services
2019
$
2018
$
7,080
7,080
-
-
METEORIC RESOURCES NL
- 26 -
DIRECTORS’ REPORT (continued)
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001.
On behalf of the Directors.
Signed in accordance with a resolution of the Directors
PATRICK BURKE
Non-Executive Chairman
Perth
27 September 2019
METEORIC RESOURCES NL
- 27 -
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF METEORIC RESOURCES NL
As lead auditor of Meteoric Resources NL for the year ended 30 June 2019, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Meteoric Resources NL and the entities it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth, 27 September 2019
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2019
Other income
Interest income
Other income
Expenses:
Exploration and tenement expenses
Depreciation expense
Share based payments expense
Administrative expenses
Foreign exchange loss
Notes
2019
$
2018
$
42,126
50,000
43,665
-
1
13
1
1
(2,901,017)
(5,340,817)
(25)
(363)
(683,081)
(124,289)
(944,322)
(1,276,170)
(14,298)
(33,533)
Loss before income tax expense
(4,450,617)
(6,731,507)
Income tax expense
3
-
-
Loss attributable to the owners of the Company
(4,450,617)
(6,731,507)
Other comprehensive income:
Items that may be reclassified to profit or loss
Changes in the fair value of available-for-sale financial assets
Exchange difference on translation of foreign operations
Items that will not be reclassified to profit or loss
Changes in the fair value of financial assets at fair value
through other comprehensive income (FVOCI)
Other comprehensive income for the year, net of tax
-
33,676
1,378
35,054
2,912
4,796
-
7,708
Total comprehensive income for year attributable to owners of
Meteoric Resources NL
(4,415,563)
(6,723,799)
Basic and diluted (loss) per share (cents per share)
15
(0.71)
(1.35)
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 29 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2019
Notes
2019
$
2018
$
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
Non-Current Assets
Other financial assets
Property, plant & equipment
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
5
6
8
9
2,530,299
186,128
2,716,427
3,299,194
50,307
3,349,501
10,435
34,478
44,913
21,896
-
21,896
2,761,340
3,371,397
382,269
382,269
241,444
241,444
382,269
241,444
2,379,071
3,129,953
11(a)
11(b)
11(c)
24,545,133
21,563,533
1,852,809
1,134,674
(24,018, 871)
(19,568,254)
2,379,071
3,129,953
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 30 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2019
Issued
Capital
$
Reserves
$
Accumulated
Losses
$
Total
$
Balance at 1 July 2017
13,727,199
36,677
(12,836,747)
927,129
Loss for the year
Other comprehensive income/(loss) for the year
Total comprehensive income/(loss) for the year
-
-
-
-
(6,731,507)
(6,731,507)
7,708
-
7,708
7,708
(6,731,507)
(6,723,799)
Transactions with owners in their capacity as owners
Contributed equity
Share issue costs
Issue of options
Performance rights/options expense recognised
during the year
Options issued as part of asset acquisition
8,130,622
(294,288)
-
-
-
-
6,000
124,289
960,000
-
-
-
-
-
8,130,622
(294,288)
6,000
124,289
960,000
Balance at 30 June 2018
21,563,533
1,134,674
(19,568,254)
3,129,953
Loss for the year
Other comprehensive income/(loss) for the year
Total comprehensive income/(loss) for the year
-
-
-
-
(4,450,617)
(4,450,617)
35,054
-
35,054
35,054
(4,450,617)
(4,415,563)
Transactions with owners in their capacity as owners
Contributed equity
Share issue costs
Performance rights/options expense recognised
during the year
3,140,000
(158,400)
-
-
-
683,081
-
-
-
3,140,000
(158,400)
683,081
Balance at 30 June 2019
24,545,133
1,852,809
(24,018,871)
2,379,071
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 31 -
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2019
Notes
2019
$
2018
$
Cash flows from operating activities
Cash receipts from customers
Payments for exploration and evaluation expenditure
Payments to suppliers, consultants and employees
Interest received
-
-
(1,551,018)
(2,188,619)
(803,193)
(999,207)
42,126
43,665
Net cash (used in) operating activities
21
(2,312,085)
(3,144,161)
Cash flows from investing activities
Payments for property, plant and equipment
Decrease / (increase) in security deposits
Net effect of cash consideration and cash acquired as part of
asset acquisition
-
12,839
(950,089)
(1,373)
-
-
Net cash provided by / (used in) investing activities
(937,250)
(1,373)
Cash flows from financing activities
Proceeds from new issues of shares
Proceeds from issue of options
Proceeds from exercise of options
Share issue costs
Net cash provided by financing activities
2,640,000
5,030,800
-
-
(158,400)
6,000
504,000
(186,000)
2,481,600
5,354,800
Net (decrease) / increase in cash held
(767,735)
2,209,266
Cash and cash equivalents at the beginning of the financial year
3,299,194
1,090,846
Effect of exchange rates on cash holdings in foreign currencies
(1,160)
(918)
Cash and cash equivalents at the end of the financial year
5
2,530,299
3,299,194
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 32 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
1
EXPENDITURE
Notes
2019
$
2018
$
Exploration and tenement expenses
Australian tenements
Canadian tenements
Brazil tenements
Total exploration and tenement expenses
Administrative expense
Advertising and marketing costs
Advisory costs
Compliance costs
Consultants
Travel costs
Employee benefits expense
Director benefits expense
Other administrative expenses
10,037
14,463
942,200
5,326,354
1,948,780
-
2,901,017
5,340,817
136,208
59,871
149,058
121,119
37,604
2,750
399,249
38,463
225,962
110,753
183,149
161,568
71,124
148,202
312,403
63,009
Total administrative expense
944,322
1,276,170
Share-based payments expense
Performance rights
Options
Total share-based payments expense
13
13
50,961
632,120
683,081
124,289
-
124,289
Foreign exchange loss (1)
14,298
33,533
1 Foreign exchange loss was recognised upon cash held and payments of Canadian and United States dollar denominated balances.
2
OPERATING SEGMENTS
Management has determined that the Group has three reportable segments, being exploration activities in Brazil,
exploration activities in Canada and exploration activities in Australia. This determination is based on the internal reports
that are reviewed and used by the Board (chief operating decision maker) in assessing performance and determining the
allocation of resources. As the Group is focused on exploration, the Board monitors the Group based on actual versus
budgeted exploration expenditure incurred by area of interest. This internal reporting framework is the most relevant
to assist the Board with making decisions regarding the Group and its ongoing exploration activities, while also taking
into consideration the results of exploration work that has been performed to date. During the prior year, the group only
had two operating segments, being mineral exploration in Canada and mineral exploration in Australia.
METEORIC RESOURCES NL
- 33 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
2
OPERATING SEGMENTS (continued)
Brazil
$
Canada
$
Australia
$
Other
$
Total
$
For the year ended 30 June 2019
Income from external sources
-
50,000
-
42,126
92,126
Reportable segment loss
(1,948,780)
(942,200)
(10,037)
(1,549,600)
(4,450,617)
Reportable segment assets (1)
70,443
-
2,768
2,688,129
2,761,340
Reportable segment liabilities
(270,071)
(34,293)
(1,249)
(76,656)
(382,269)
For the year ended 30 June 2018
Income from external sources
Reportable segment loss
Reportable segment assets (2)
Reportable segment liabilities
-
-
-
-
-
-
43,665
43,655
(5,326,354)
(14,463)
(1,390,689)
(6,731,507)
-
-
3,371,397
3,371,397
(137,299)
(1,390)
(102,756)
(241,444)
1 Other corporate activities includes cash held of $2,528,485.
2 Other corporate activities includes cash held of $3,299,194.
3
INCOME TAX EXPENSE
The components of tax expense comprise:
Current tax
Deferred tax asset/liability
Reconciliation of income tax to prima facie tax payable
Loss before income tax
Income tax benefit at 30% (2018: 27.5%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Shares based payments
Other
Unrecognised tax losses in the current year
Net timing differences not recognised
Total income tax benefit
2019
$
2018
$
-
-
-
-
-
-
(4,450,617)
(6,731,507)
(1,335,185)
(1,851,164)
204,924
85,437
-
1,044,823
-
950,481
7,793
910,686
(17,796)
-
METEORIC RESOURCES NL
- 34 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
3
INCOME TAX EXPENSE (continued)
Unrecognised temporary differences
Deferred tax assets and liabilities not recognised relate to the following:
Prepayments
Carried forward losses
Exploration assets
Section 40-880 deduction
Provisions & other
2019
$
2018
$
-
4,184,653
2,259,419
-
11,674
(6,041)
4,299,767
1,425
6,636
Net deferred tax assets unrecognised
6,455,746
4,301,787
Significant accounting judgment
Deferred tax assets
The Group expects to have carried forward tax losses, which have not been recognised as deferred tax assets, as it is not
considered sufficiently probable that these losses will be recouped by means of future profits taxable in the relevant
jurisdictions. The utilisation of the tax losses is subject to the Group passing the required Continuity of Ownership and
Same Business Test rules at the time the losses are utilised. Net deferred tax assets have not been brought to account as
it is not probable within the immediate future that tax profits will be available against which deductible temporary
difference can be utilised.
4
ASSET ACQUISITION
On 21 May 2019, shareholders approved the acquisition of the Jurena Gold Project and Nova Astro Project through the
acquisition of 100% of the share capital in Batman Minerals Pty Ltd. The acquisition successfully completed on 31 May
May 2019.
Current assets
Cash and cash equivalents
Prepayments
Trade and other receivables
Non-Current assets
Trade and other receivables
Plant and Equipment
Exploration and evaluation expenditure
Total assets
31 May 2019
Note
$
95
12,026
41,530
6,363
28,271
1,483,628
1,572,913
METEORIC RESOURCES NL
- 35 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
4
ASSET ACQUISITION (continued)
Current Liabilities
Trade and other payables
Non-Current Liabilities
Trade and other payables
Total liabilities
Net assets
Note
31 May 2019
$
89,125
33,604
122,729
1,450,184
In consideration for 100% equity in Batman Minerals Pty Ltd and the entities it controls, Meteoric paid $1,000,000 in
cash, less a payment made in arrears of $49,816 and issued 50,000,000 ordinary shares.
In addition, the following contingent consideration may be due:
- AU$750,000 of ordinary fully paid shares at an issue price equal to a 5-day VWAP upon defining a mineral resource
estimate in accordance with the JORC Code, at Juruena and/or Novo Astro containing at least 400,000 oz gold.
- AU$750,000 of ordinary fully paid shares at an issue price equal to a 5-day VWAP upon the Board of Meteoric
approving a decision to mine at Juruena and/or Novo Astro, pursuant to a granted mining licence.
The Group assigned no value to the consideration on acquisition of the project as at the date of acquisition it was not
considered probable (see Note 18).
The fair value of consideration issued on 31 May 2019 was $1,450,184, which was by reference to the fair value of the
net assets acquired.
Fair value of net assets acquired
Consideration provided for assets acquired
Cash
Ordinary shares
31 May 2019
Note
$
1,450,184
950,184
500,000
1,450,184
In accordance with the Group’s Accounting Policy at Note 26(h) the acquired exploration and evaluation expenditure
has been expensed.
Significant accounting judgments
Asset acquisition not constituting a Business
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying
amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise in relation to
the acquired assets and assumed liabilities as the initial recognition exemption for deferred tax under AASB 112 applies.
No goodwill will arise on the acquisition and transaction costs of the acquisition will be included in the capitalised cost of
the asset.
METEORIC RESOURCES NL
- 36 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
4
ASSET ACQUISITION (continued)
In determining when an acquisition is determined to be an asset acquisition and not a business, significant judgement is
required to assess whether the assets acquired constitute a business in accordance with AASB 3. Under AASB 3 a business
is an integrated set of activities and assets that is capable of being conducted or managed for the purpose of providing a
return, and consists of inputs and processes, which when applied to those inputs has the ability to create outputs.
Management determined that the acquisition of Jurena Gold Project and Nova Astro Project was an asset acquisition.
Fair value of asset acquisition
During the financial year 50,000,000 ordinary shares were issued and $1,000,000 in cash, less a payment made in arrears
of $49,816 was paid in consideration for the Jurena Gold Project and Nova Astro Project projects in Brazil. The fair value
of consideration was by reference to the fair value of assets and liabilities acquired in accordance with AASB 2. The fair
value of the shares granted by Meteoric was determined to be $500,000.
5
CASH AND CASH EQUIVALENTS
(a) Risk exposure
Refer to Note 14 for details of the risk exposure and
management of the Group’s cash and cash equivalents.
2019
$
2018
$
(b) Deposits at call
Deposits at call are presented as cash equivalents if they
have a maturity of three months or less. Refer Note 26(j) for
the Group's other accounting policies on cash and cash
equivalents.
6
OTHER RECEIVABLES
The Group has no impairments to other receivables or have
receivables that are past due but not impaired. Refer to
Note 14 for detail of the risk exposure and management of
the Group’s other receivables.
Due to the short-term nature of the current receivables,
their carrying amount is assumed to be the same as their
fair value.
Cash at bank
2,530,299
374,194
Deposits at call
-
2,925,000
2,530,299
3,299,194
Other receivables
Prepayments
2019
$
2018
$
134,124
52,004
186,128
28,341
21,966
50,307
METEORIC RESOURCES NL
- 37 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
7
JOINT VENTURES
The Company is or has been party to a number of unincorporated exploration joint ventures which involves the “farming
out” (diluting) of its interest in selected tenements. The following is a list of unincorporated exploration joint ventures
under which the Company has diluted and may yet dilute its original interest:
Name of Joint Venture and Project
Geocrystal JV – Webb Diamond Project
2019 Interest
%
2018 Interest
%
17% with one tenement held
as to 11%
18.5% with one tenement
held as to 13%
Blaze JV – Barkly Project
Emmerson/Santexco JV – Perseverance Project
30% (1)
- (2)
30% (1)
68.43%
Chalice Gold JV - Warrego North Project
49%, diluting
49%, diluting
1
2
Potential dilution to 20%
Following discussions with JV partner Emmerson Resources the licences were surrendered during the year.
All exploration and evaluation expenditure is expensed to Statement of Profit or Loss and Other Comprehensive Income
as incurred.
8
OTHER FINANCIAL ASSETS
Non-Current
Available-for-sale financial assets – shares in listed corporations
Financial assets at FVOCI – equity securities
Security deposits
2019
$
2018
$
-
7,667
2,768
10,435
6,289
-
15,607
18,984
As a result of the adoption of AASB 9, assets with a fair value of $6,289 were reclassified from available-for-sale financial
assets, to financial assets at FVOCI in the statement of financial position, see Note 19 for further details of the impact of
the adoption of AASB 9.
On disposal of these equity investments, any related balance within the FVOCI reserve remain within other
comprehensive income.
Significant accounting estimates, assumptions and judgements
Classification of financial assets at fair value through other comprehensive income
Investments are designated at fair value through other comprehensive income where management have made the
election in accordance with AASB 9: Financial Instruments.
Fair value for financial assets at fair value through other comprehensive income
Information about the methods and assumptions used in determining fair value is provided in Note 14.
Classification of financial assets as available for sale
Investments are designated at fair value through other comprehensive income where management have made the
election in accordance with AASB 9: Financial Instruments.
METEORIC RESOURCES NL
- 38 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
8
OTHER FINANCIAL ASSETS (continued)
Impairment indicators for available for sale financial assets
A security is considered to be impaired if there has been a significant or prolonged decline in the fair value below its cost.
During the prior year, no impairment indicators have been identified for the assets.
Fair value for available for sale financial assets
Information about the methods and assumptions used in determining fair value is provided in Note 10.
9
TRADE AND OTHER PAYABLES
Trade payables
2019
$
2018
$
382,269
382,269
241,444
241,444
Trade and other payables are normally settled within 30 days from receipt of invoice. All amounts recognised as trade
and other payables, but not yet invoiced, are expected to settle within 12 months.
The carrying value of trade and other payables are assumed to be the same as their fair value, due to their short-term
nature.
Refer to Note 14 for details of the risk exposure and management of the Group’s trade and other receivables.
10
FAIR VALUES OF FINANCIAL INSTRUMENTS
This note provides an update on the judgements and estimates made by the Group in determining the fair values of the
financial instruments since the last annual financial report.
Fair value hierarchy
To provide an indication about the reliability of the inputs used in determining fair value, the Group classifies its financial
instruments into the three levels prescribed under the accounting standards. An explanation of each level follows
underneath the table.
The following table presents the group's financial assets and financial liabilities measured and recognised at fair value at
30 June 2019 and 30 June 2018 on a recurring basis:
Level 1
$
Level 2
$
Level 3
$
Total
$
As at 30 June 2019
Financial assets at FVOCI – Equity securities
7,667
As at 30 June 2018
Available for sale financial assets – Equity securities
6,289
-
-
-
-
7,667
6,289
There was no transfers between levels during the period. The Group's policy is to recognise transfers into and transfers
out of fair value hierarchy levels as at the end of the reporting period.
METEORIC RESOURCES NL
- 39 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
10
FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)
The fair value of financial assets and liabilities held by the Group must be estimated for recognition, measurement and/or
disclosure purposes. The Group measures fair values by level, per the following fair value measurement hierarchy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The groups policy is to recognise transfers into and out of fair value hierarchy levels as at the end of the reporting period.
Valuation techniques used to determine fair values
The Group did not have any financial instruments that are recognised in the financial statements where their carrying
value differed from the fair value. The fair value of the financial assets and liabilities are included at the amount at which
the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The carrying amounts of cash and short-term trade and other receivables, trade payables and other current
liabilities approximate their fair values largely due to the short-term maturities of these payments.
Financial assets at fair value through other comprehensive income – equity securities
The fair value of the equity holdings is based on the quoted market prices from the ASX on the last traded price prior or
nearest to year-end.
11
ISSUED CAPITAL
(a)
Issued capital
2019
Shares
2018
Shares
2019
$
2018
$
Fully paid
889,003,296
574,455,761
24,545,133
21,563,533
Movements in ordinary share capital during the current and prior financial period are as follows:
Details
Balance at 1 July 2017
Issue of shares
Acquisition of tenements
Share based payment
Acquisition of Cobalt Canada
Acquisition of technical database
Exercise of options
Exercise of options
Exercise of options
Issue of shares
Exercise of options
Exercise of options
Exercise of options
Share based payment
Issue of shares
Exercise of options
METEORIC RESOURCES NL
Date
Number of shares
Issue price/share
$
22-Aug-17
22-Aug-17
22-Aug-17
22-Aug-17
25-Sep-17
13-Oct-17
13-Oct-17
25-Oct-17
7-Dec-17
7-Dec-17
7-Dec-17
7-Dec-17
7-Dec-17
19-Dec-17
19-Dec-17
317,318,395
62,800,000
6,348,795
7,560,000
60,000,000
7,200,000
1,500,000
1,000,000
3,500,000
50,000,000
3,150,000
1,500,000
13,000,000
628,571
20,000,000
6,000,000
0.011
0.0316
0.010
0.030
0.041
0.020
0.012
0.020
0.062
0.020
0.012
0.011
-
0.062
0.011
$
13,727,199
690,800
200,622
75,600
1,800,000
295,200
30,000
12,000
70,000
3,100,000
63,000
18,000
143,000
44,000
1,240,000
66,000
- 40 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
11
ISSUED CAPITAL (continued)
Details
Share based payment
Exercise of options
Share based payment
Exercise of options
Acquisition of tenements
Less: Share issue costs
Balance at 30 June 2018
Issue of shares
Issue of shares
Issue of shares
Acquisition of Batman Minerals (Note 4)
Less: Share issue costs
Balance at 30 June 2019
(b) Reserves
Date
19-Dec-17
7-Mar-18
19-Apr-18
16-May-18
16-May-18
28-Mar-19
18-Apr-19
24-May-19
31-May-19
Number of
shares
Issue price/share
$
1,200,000
6,000,000
750,000
3,000,000
2,000,000
574,455,761
92,000,000
75,000,000
97,547,535
50,000,000
-
0.011
-
0.012
-
0.010
0.010
0.010
0.010
$
74,400
66,000
30,000
36,000
76,000
(294,288)
21,563,533
920,000
750,000
970,000
500,000
(158,400)
889,003,296
24,545,133
The following table shows a breakdown of the reserves and the movements in these reserves during the year. A
description of the nature and purpose of each reserve is provided.
Note
2019
$
2018
$
Share based payments reserve
Balance at 1 July
Issue of options
Performance rights issued/cancelled
13(b)
Options issued as part of asset acquisition
Balance at 30 June
Available for sale reserve
Balance at 1 July
Movement during the period
Balance at 30 June
Foreign currency translation reserve
Balance at 1 July
Currency translation differences arising during the year
Balance at 30 June
Fair value through other comprehensive income reserve
Balance at 1 July
Movement during the period
Balance at 30 June
19
8
19
8
1,123,589
632,120
50,961
-
33,300
6,000
124,289
960,000
1,806,670
1,123,589
-
-
-
4,796
33,676
38,472
6,289
1,378
7,667
3,377
2,912
6,289
-
4,796
4,796
-
-
-
Total reserves
1,852,809
1,134,674
METEORIC RESOURCES NL
- 41 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
11
ISSUED CAPITAL (continued)
Share based payments reserve
The share based payments reserve is used to recognise: (a) the grant date fair value of options issued but not exercised;
(b) the grant date fair value of market based performance rights granted to directors, employees, consultants and vendors
but not yet vested; and (c) the fair value non-market based performance rights granted to directors, employees,
consultants and vendors but not yet vested.
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entities are recognised in other comprehensive
income as described in Note 26(d) and accumulated in a separate reserve within equity. The cumulative amount is
reclassified to profit or loss when the net investment is disposed of.
(c) Accumulated losses
Balance at 1 July
Net loss for the year
Balance at 30 June
12
DIVIDENDS
2019
$
2018
$
(19,568,254)
(12,836,747)
(4,450,617)
(6,731,507)
(24,018,871)
(19,568,254)
No dividends have been declared or paid for the year ended 30 June 2019 (30 June 2018: nil).
13
SHARE-BASED PAYMENTS
Share-based payment transactions are recognised at fair value in accordance with AASB 2.
The total movement arising from share-based payment transactions recognised during the year were as follows:
As part of share-based payment reserve:
Options issued to directors and advisors
Performance rights issued/cancelled
As part of exploration expense
Note
13(a)
13(b)
2019
$
2018
$
632,120
50,961
960,000
124,289
Shares issued – Asset Acquisition
4
500,000
1,800,000
Shares issued –Acquisition of tenements and database
As part of administrative expense
Shares issued
Recognised in equity as a capital raising cost
Shares issued
-
-
-
571,822
74,000
150,000
1,183,081
3,680,111
METEORIC RESOURCES NL
- 42 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
13
SHARE-BASED PAYMENTS (continued)
During the year the Group had the following share-based payments:
(a) Share options
The Meteoric Resources NL share options are used to reward Directors, Employees, Consultants and Vendors for their
performance and to align their remuneration with the creation of shareholder wealth through the performance
requirements attached to the options. The Company’s Option Plan was approved and adopted by shareholders on 30
November 2009. Options are granted at the discretion of the Board and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefits.
The options are not listed and carry no dividend or voting right. Upon exercise, each option is convertible into one
ordinary share to rank pari passu in all respects with the Company’s existing fully paid ordinary shares.
Set out below are summaries of options granted:
Opening balance
Granted during the period (1)
Exercised during the period
Forfeited
Closing balance
Vested and exercisable
30 June 2019
30 June 2018
Average exercise
price per option
Number of options
Average exercise
price per option
Number of options
$0.011
$0.024
-
-
$0.019
$0.022
38,500,000
60,000,000
-
-
98,500,000
68,500,000
$0.016
$0.011
$0.013
-
$0.011
$0.011
17,150,000
60,000,000
(38,650,000)
-
38,500,000
8,500,000
1 The securities were approved on the 21 May 2019 at the Company’s General Meeting.
Grant date
09-Sep-15
25-Oct-17
25-Oct-17
21-May-19
(i)
(ii)
(iii)
(iv)
Expiry date
09-Sep-20
25-Oct-20
25-Oct-20
20-May-23
Exercise price
$0.012
$0.011
$0.011
$0.024
30 June
2019
Number of options
30 June
2018
Number of options
3,500,000
5,000,000
30,000,000
60,000,000
98,500,000
3,500,000
5,000,000
30,000,000
-
38,500,000
Weighted average remaining contractual life of options outstanding at the
end of the year:
2.88 years
2.31 years
The fair value of option issued is measured by reference to the value of the goods or services received. The fair value of
services received in return for share options granted to Directors and employees and consultants is measured by
reference to the fair value of options granted. The fair value of services received by advisors couldn’t be reliably measured
and are therefore measured by reference to the fair value of the equity instruments granted. The estimate of the fair
value of the services is measured based on a number of closed and open form models by an independent valuer. The life
of the options including early exercise options are built into the option model. The fair value of the options are expensed
over the expected vesting period.
METEORIC RESOURCES NL
- 43 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
13
SHARE-BASED PAYMENTS (continued)
The model inputs for options granted during the year included:
Series
Exercise
price
Expiry
(years)
Expected volatility (1)
Dividend yield
Risk free interest
rate (2)
Option value
(iv)
$0.024
4.00
106%
0%
1.27%
$0.0105
1 The expected price volatility is based on historical volatility (based on the remaining life of the option), adjusted for any expected
changes to future volatility due to publicly available information.
2 Risk free rate of securities with comparable terms to maturity.
The total expense arising from options issued during the reporting period as part of share-based payments expense was
as follows:
Options issued to Directors
Options issued to Advisors
(b) Performance rights
2019
$
2018
$
310,792
321,328
632,120
-
960,000
960,000
The Company’s Performance Rights Plan was approved and adopted by shareholders on 14 August 2017. Each
performance right will vest as an entitlement to one fully paid ordinary share upon achievement of certain performance
milestones. If the performance milestones are not met, the performance rights will lapse and the eligible participant will
have no entitlement to any shares.
Performance rights are not listed and carry no dividend or voting rights. Upon exercise each performance right is
convertible into one fully paid ordinary share to rank pari passu in all respects with existing fully paid ordinary shares.
Movement in the performance rights for the current year is shown below:
Grant date
Expiry
date
Exercise
price
25-Oct-17 (1)
25-Oct-20
06-Apr-18 (1)
06-Apr-21
-
-
Total
Balance at
start of the
period
4,000,000
31,500,000
35,500,000
Granted
during the
period
Converted
during the
period
Cancelled
during the
period (2)
Balance at
period end
Vested at
period
end
-
-
-
-
-
-
-
4,000,000
(31,500,000)
-
(31,500,000)
4,000,000
-
-
-
1 Performance rights granted to Directors, Employees and Advisors.
The weighted average remaining contractual life of performance rights outstanding at 30 June 2019 was 1.32 years (30
June 2018: 2.67 years).
Management note that on 9 November 2018 the performance rights granted on 6 April 2018 were cancelled by
agreement for nil consideration. The cancellation of the performance rights was accounted for as an acceleration of
vesting, an amount that otherwise would have been recognised for services received over the remainder of the vesting
period were recognised immediately.
All other performance rights on issue have already been fully expensed during the prior period.
METEORIC RESOURCES NL
- 44 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
13
SHARE-BASED PAYMENTS (continued)
The total Director, Employee and Consultant share performance rights expense arising from performance rights
recognised during the reporting period as part of share-based payment expense were as follows:
Performance rights granted during the year
Performance rights cancelled during the year
Reversal of performance rights expense
2019
$
2018
$
-
50,961
-
50,961
274,289
-
(150,000)
124,289
Significant accounting estimates, assumptions and judgements
Estimation of fair value of share-based payments
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at
the date at which they are granted. The fair value is determined using the Black-Scholes or Monte-Carlo model taking
into account the assumptions detailed within this note.
Probability of vesting conditions being achieved
Inputs to pricing models may require an estimation of reasonable expectations about achievement of future vesting
conditions. Vesting conditions must be satisfied for the counterparty to become entitled to receive cash, other assets or
equity instruments of the entity, under a share-based payment arrangement.
Vesting conditions include service conditions, which require the other party to complete a specified period of service,
and performance conditions, which require specified performance targets to be met (such as a specified Increase in the
entity's profit over a specified period of time) or completion of performance hurdles.
The Company recognises an amount for the goods or services received during the vesting period based on the best
available estimate of the number of equity instruments expected to vest and shall revise that estimate, if necessary, if
subsequent information Indicates that the number of equity instruments expected to vest differs from previous
estimates. On vesting date, the entity shall revise the estimate to equal the number of equity instruments that ultimately
vested.
The achievement of future vesting conditions are reassessed each reporting period.
14
FINANCIAL AND CAPITAL RISK MANAGEMENT
Overview
The financial risks that arise during the normal course of the Group’s operations comprise market risk, credit risk and
liquidity risk. In managing financial risk, it is policy to seek a balance between the potential adverse effects of financial
risks on financial performance and position, and the "upside" potential made possible by exposure to these risks and by
taking into account the costs and expected benefits of the various risk management methods available to manage them.
General objectives, policies and processes
The Board is responsible for approving policies on risk oversight and management and ensuring management has
developed and implemented effective risk management and internal control. The Board receives reports as required
from the Managing Director in which they review the effectiveness of the processes implemented and the
appropriateness of the objectives and policies it sets. The Board oversees how management monitors compliance with
the Group's risk management policies and procedures and reviews the adequacy of the risk management framework in
relation to the risks faced.
These disclosures are not, nor are they intended to be an exhaustive list of risks to which the Group is exposed.
METEORIC RESOURCES NL
- 45 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
14
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
Financial Instruments
The Group has the following financial instruments:
Financial assets
Cash and cash equivalents
Other receivables
Security deposits
Available for sale asset
Financial liabilities
Trade and other payables
(a) Market Risk
2019
$
2018
$
2,530,299
3,299,194
92,720
2,768
-
28,341
15,607
6,289
2,625,787
3,349,431
382,269
382,269
241,444
241,444
Market risk can arise from the Group’s use of interest-bearing financial instruments, foreign currency financial
instruments and equity security instruments and exposure to commodity prices. It is a risk that the fair value of future
cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk), foreign exchange
rate (currency risk), equity securities price risk (price risk) and fluctuations in commodity prices (commodity price risk).
(i)
Interest rate risk
The Board manages the Group's exposure to interest rate risk by regularly assessing exposure, taking into account funding
requirements and selecting appropriate instruments to manage its exposure. As at the 30 June 2019, the Group has
interest-bearing assets, being cash at bank (30 June 2018: cash at bank).
As such, the Group's income and operating cash flows are not highly dependent on material changes in market interest
rates.
Sensitivity analysis
The Group does not consider this to be a material risk/exposure to the Group and have therefore not undertaken any
further analysis.
As at 30 June 2019, the Group didn’t hold any funds on deposit, the weighted average effective interest rate of funds on
deposit at 30 June 2018 was 1.91%.
(ii) Currency risk
The Group maintains a corporate listing in Australia and operates in Brazil, Canada and Australia. As a result of various
operating locations, the Group is exposed to foreign exchange risk arising from fluctuations, primarily in the US Dollar
(USD), Brazilian Real (BRL) and Canadian Dollar (CAD).
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a
currency that is not the Company’s functional currency. The Group manages risk by matching receipts and payments in
the same currency and monitoring movements in exchange rates. The exposure to risks is measured using sensitivity
analysis and cash flow forecasting.
METEORIC RESOURCES NL
- 46 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
14
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
The Group’s exposure to foreign currency risk at year end, expressed in Australian dollars, was as follows:
USD
$
2019
BRL
$
CAD
$
2018
CAD
$
-
-
-
442
42,222
1,373
-
76,968
-
234,071
37,631
86,580
Financial assets
Cash
Other receivables
Financial liabilities
Trade and other payables
Sensitivity analysis
The following table demonstrates the estimated sensitivity
to a 10% increase/decrease in the Australian dollar/BRL
exchange rate, with all variables held consistent, on post
tax profit and equity. The Group does not consider the
other currencies to be a material risk/exposure to the
Group and have therefore not undertaken any further
analysis. These sensitivities should not be used to forecast
the future effect of movement in the Australian dollar
exchange rate on future cash flows.
Impact on post-tax
profits and equity
AUD/BRL + %
AUD/BRL - %
2019
$
19,141
(19,141)
%
10
10
A hypothetical change of 10% in BRL exchange rates was used to calculate the Group's sensitivity to foreign exchange
rate movements as the Company’s estimate of possible rate movements over the coming year taking into account current
market conditions and past volatility
(iii) Price risk
The Group’s only equity investments are publicly traded on the ASX.
To manage its price risk arising from investments in equity securities, management monitors the price movements of the
investment and ensures that the investment risk falls within the Group’s framework for risk management.
The Group’s exposure to equity securities price risk arises from investments held by the Group and classified in the
statement of financial position as financial assets at fair value (Note 8).
Sensitivity analysis
The Group does not consider this to be a material risk/exposure to the Group and have therefore not undertaken any
further analysis.
(iv) Commodity price risk
As the Group has not yet entered into mineral or energy production, the risk exposure to changes in commodity price is
not considered significant.
(b) Credit risk
Credit risk arises from cash and cash equivalents and deposits with financial institutions, as well as trade receivables.
Credit risk is managed on a Group basis. For cash balances held with bank or financial institutions, where possible only
independently rated parties with a minimum rating of ‘-A’ are accepted.
The Board are of the opinion that the credit risk arising as a result of the concentration of the Group's assets is more than
offset by the potential benefits gained.
METEORIC RESOURCES NL
- 47 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
14
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
The maximum exposure to credit risk at the reporting date is the carrying amount of the assets as summarised net of
credit loss provisions and impairments.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents
Other receivables
Security deposits
2019
$
2018
$
2,530,299
3,299,194
92,720
2,768
28,341
15,607
2,625,787
3,343,142
The credit quality of financial assets are assessed by reference to external credit ratings (if available) or to historical
information about counterparty default rates. The Group has adopted lifetime expected credit loss allowance in
estimating expected credit loss.
Cash at bank and short-term deposits
Held with Australian banks and financial institutions
AA- S&P rating
A+ S&P rating
BB S&P rating
Unrated
Total
Other receivables
Counterparties with external credit ratings
Counterparties without external credit ratings(1)
Group 1
Group 2
Group 3
Total
2019
$
2018
$
-
-
2,528,484
3,297,792
442
1,373
1,402
2,530,299
3,299,194
-
43,948
92,720
-
-
-
-
-
1 Group 1 — new customers (less than 6 months)
Group 2 — existing customers (more than 6 months) with no defaults in the past
Group 3 — existing customers (more than 6 months) with some defaults in the past. All defaults were fully recovered
(c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Group’s reputation. Through continuous monitoring of forecast and actual cash flows the Group manages liquidity
risk by maintaining adequate reserves to meet future cash needs. The decision on how the Group will raise future capital
will depend on market conditions existing at that time.
METEORIC RESOURCES NL
- 48 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
14
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
Maturities of financial liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period
at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.
Less than
6 months
6 - 12
months
$
$
1 - 5
years
$
Over 5
years
$
Total
contractual
cash flows
Carrying
amount of
liabilities
$
$
At 30 June 2019
Trade and other payables
382,269
At 30 June 2018
Trade and other payables
241,444
-
-
-
-
-
-
382,269
382,269
241,444
241,444
(d) Capital risk management
The Group’s objective when managing capital is to safeguard the ability to continue as a going concern. This is to provide
returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost
of capital.
The Board monitors capital on an ad-hoc basis. No formal targets are in place for return on capital, or gearing ratios, as
the Group has not derived any income from operations.
15
LOSS PER SHARE
Basic and diluted loss per share
Net loss after tax attributable to the members of the Company
Weighted average number of ordinary shares
Basic and diluted loss per share (cents)
2019
2018
$ (4,450,617)
$ (6,731,507)
627,146,881
499,204,562
(0.71)
(1.35)
16
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the Group's accounting policies.
This Note provides an overview of the areas that involved a higher degree of judgement or complexity and items which
are more likely to be materially adjusted. Detailed information about each of these estimates and judgements is included
in the Notes together with information about the basis of calculation for each affected line item in the financial
statements.
Significant accounting estimates and judgements
The areas involving significant estimates or judgements are:
Recognition of deferred tax asset for carried forward tax losses — Note 3;
Asset acquisition not constituting a business combination – Note 4;
METEORIC RESOURCES NL
- 49 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
16
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
Fair value of assets acquisition – Note 4;
Fair value of financial assets through other comprehensive income – Note 8;
Classification of financial assets through other comprehensive income – Note 8;
Probability of vesting conditions being achieved– Note 13;
Estimation of fair value of share-based payments – Note 13; and
Estimation of contingent liabilities – Note 18.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
There have been no actual adjustments this year as a result of an error and of changes to previous estimates.
17
TENEMENT EXPENDITURES CONDITIONS AND LEASING COMMITTMENTS
The Company has certain obligations to perform minimum exploration work on the tenements in which it has an interest.
These obligations may in some circumstances, be varied or deferred. Tenement rentals and minimum expenditure
obligations which may be varied or deferred on application are expected to be met in the normal course of business.
Within one year
Later than one year but no later than five years
Later than five years
2019 (1)
$
2018 (2)
$
148,066
483,001
-
130,319
236,080
7,257
631,067
373,656
1 The CA$ commitments have been translated at a rate of 1.0547 to AUD
2 The CA$ commitments have been translated at a rate of 1.0273 to AUD
The Company has the ability to diminish its exposure under these commitments through the application of a variety of
techniques including applying for exemptions from the regulatory expenditure obligations, surrendering tenements,
relinquishing portions of tenements or entering into farm-out agreements whereby third parties bear the burdens of such
obligation in whole or in part.
Australian Projects
The Group has certain obligations to perform minimum exploration work on tenements held. These obligations may
vary over time, depending on the Group's exploration programmes and priorities. As at reporting date, total exploration
expenditure commitments on tenements held is shown in the above table. These obligations are also subject to variations
by farm-out arrangements, dilution with current partners or sale of the relevant tenements. This commitment does not
include the expenditure commitments which are the responsibility of the joint venture partners.
Canadian Projects
The Group has certain obligations to perform minimum exploration work on tenements held. These obligations may vary
over time, depending on the Group's exploration programmes and priorities. As at reporting date, total exploration
expenditure commitments on tenements held less amount already spent is shown in the above table. Included within the
tenement expenditures and commitments is deferred consideration under the claim sale agreements in relation to the
Joyce Lake and Lorraine projects. These obligations are also subject to variations by farm-out arrangements or sale of the
relevant tenements. Other commitments specific to projects have been detailed below.
METEORIC RESOURCES NL
- 50 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
17
TENEMENT EXPENDITURES CONDITIONS AND LEASING COMMITMENTS (continued)
Brazil Projects
The Group has no minimum obligations to perform exploration work on tenements held.
18
(a)
CONTINGENT LIABILITIES
Contingent liabilities
Native Title
Tenements are commonly (but not invariably) affected by native title.
The Company is not in a position to assess the likely effect of any native title impacting the Company.
The existence of native title and heritage issues represent, as a general proposition, a serious threat to explorers and
miners, not only in terms of delaying the grant of tenements and the progression of exploration development and mining
operations, but also in terms of costs arising consequent upon dealing with aboriginal interest groups, claims for native
title and the like.
As a general proposition, a tenement holder must obtain the consent of the owner of freehold before conducting
operations on the freehold land. Unless it already has secured such rights, there can be no assurance that the Company
will secure rights to access those portions (if any) of the Tenements encroaching freehold land but, importantly, native
title is extinguished by the grant of freehold so if and whenever the Tenements encroach freehold the Company is in the
position of not having to abide by the Native Title Act in respect of the area of encroachment albeit aboriginal heritage
matters still be of concern.
Batman Acquisition
In consideration for 100% equity in Batman Minerals Pty Ltd and the entities it controls Meteoric paid $1,000,000 in cash,
less a payment made in arrears of $49,816 and issued 50,000,000 ordinary shares (see Note 4). In addition to the
payments made the following contingent consideration may be due:
-
-
AU$750,000 of ordinary fully paid shares at an issue price equal to a 5-day VWAP upon defining a mineral
resource estimate in accordance with the JORC Code, at Juruena and/or Novo Astro containing at least 400,000
oz gold.
AU$750,000 of ordinary fully paid shares at an issue price equal to a 5-day VWAP upon the Board of Meteoric
approving a decision to mine at Juruena and/or Novo Astro, pursuant to a granted mining licence.
The Group assigned no value to the consideration on acquisition of the project as at the date of acquisition it was not
considered probable.
METEORIC RESOURCES NL
- 51 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
18 CONTINGENT LIABILITIES (continued)
The Group currently has no contingent liabilities as at 30 June 2019 (30 June 2018: Nil).
(b) Contingent assets
The Group has no contingent assets as at 30 June 2019 (30 June 2018: Nil).
Significant judgments
Contingencies & commitments
As the Group is subject to various laws and regulations in the jurisdictions in which it operates, significant judgment is
required in determining whether any potential contingencies are required to be disclosed and/or whether any capital or
operating leases require disclosure (refer to Note 16).
19
CHANGES IN ACCOUNTING POLICIES
This note explains the changes in the Group’s accounting policies as a result of the adoption of AASB 9 Financial
instruments and AASB 15 Revenue from Contracts with Customers, however the prior year financial statements did not
have to be restated as a result.
(a)
AASB 9 Financial Instruments (“AASB 9”)
AASB 9 replaces the provisions of AASB 139 Financial Instruments: Measurement and Recognition (“AASB 139”) that
relate to the recognition, classification and measurement of financial assets and liabilities, recognition of financial
instruments, impairment of financial assets and hedge accounting.
The adoption of AASB 9 resulted in minimal changes in accounting policies. The new accounting policies are set out below.
Transitional adjustments were however required, as set out below, which were recognised on 1 July 2018, in accordance
with the transitional provisions of AASB 9.
(b)
AASB 15 Revenue from Contracts with Customers (“AASB 15”)
The adoption of AASB 15 resulted in no impact, or changes in accounting policies.
AASB 9 - Impact of adoption
Classification and measurement of financial assets
On the date of initial application, 1 July 2018, the financial instruments of the Group were as follows, with any
reclassifications noted.
Measurement category
Carrying amount
Original (AASB 139)
New (AASB 9)
$
$
$
Original
New
Difference
Financial Assets
Trade and other receivables
Amortised cost
Amortised cost
Security deposits
Amortised cost
Amortised cost
Equity instruments
Available-for-sale
FVOCI
50,307
15,607
6,289
50,307
15,607
6,289
-
-
-
As a result of the adoption of AASB 9, assets with a fair value of $6,289 were reclassified from available-for-sale financial
assets, to financial assets at FVOCI in the statement of financial position.
The adoption of AASB 9 on the Group’s trade and other receivables did not have a material impact.
METEORIC RESOURCES NL
- 52 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
19
CHANGES IN ACCOUNTING POLICIES (continued)
The following tables show the above noted adjustments recognised for each individual line item. Line items that were
not affected by the changes have not been included.
Impact on statement of financial position (Financial Assets)
Consolidated statement of financial position (condensed extract)
Financial Assets
Financial assets at FVOCI
Available-for-sale financial assets
30 June 2018
As originally
presented
$
AASB 9
$
1 July 2018
$
-
6,289
6,289
6,289
(6,289)
-
6,289
-
6,289
Impact on statement of financial position (Equity)
There was no impact on the Group’s Accumulated Losses and Reserves as at 1 July 2018.
AASB 9 - Accounting policies applied from 1 July 2018
Investments and other financial assets
Classification
From 1 July 2018, the Group classifies its financial assets in the following measurement categories:
-
-
those to be measured subsequently at fair value (either through OCI, or through profit or loss), and
those to be measured at amortised cost.
The classification depends on the entity's business model for managing the financial assets and the contractual terms of
the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity
instruments that are not held for trading, this will depend on whether the group has made an irrevocable election at the
time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).
The group reclassifies debt investments when and only when its business model for managing those assets changes.
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows
are solely payment of principal and interest.
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 profit or loss following the derecognition of the investment. Dividends from such investments continue to
be recognised in profit or loss as other income when the group's right to receive payments is established. Changes in the
fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit or loss as applicable.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported
separately from other changes in fair value.
METEORIC RESOURCES NL
- 53 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
19
CHANGES IN ACCOUNTING POLICIES (continued)
Impairment
From 1 July 2018, the Group assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has
been a significant increase in credit risk.
For trade receivables, the group applies the simplified approach permitted by AASB 9, which requires expected lifetime
losses to be recognised from initial recognition of the receivables.
20
RELATED PARTY TRANSACTIONS
Transactions with related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Termination
Share-based payments
2019
$
2018
$
396,793
-
-
340,539
737,332
340,265
17,376
35,897
122,503
516,041
Detailed remuneration disclosures are provided within the remuneration report.
Parent entity
The ultimate parent entity and ultimate controlling party is Meteoric Resources NL (incorporated in Australia).
Subsidiaries
Interests in subsidiaries are set out in Note 23.
Transactions with related parties
Payment of fees
- Dr Andrew Tunks, Executive Director, is a Director of Tunks Geo Consulting Pty Ltd, which received Dr Tunks’s Director
and fees during the period. At year end the Company had no outstanding payable (30 June 2018: $16,667(ex GST)).
- Ms Shastri Ramnath, Non-Executive Director, is a Director of Ram Jam Holding Inc. which received Ms Ramnath’s
Director fees during the period. At year end the Company had an outstanding balance payable of $3,781
(30 June 2018: $7,558).
Purchases of services
The Group acquired the following services from entities in which the group’s key management personnel have an interest:
- Geological services
A Director, Ms. Ramnath, is the Co-founder and Non-Executive Chair of the firm of Orix Geoscience Inc. (Orix). Orix have
been a partner to Meteoric in providing geological services and support for the Canadian projects. All services provided
have been on normal commercial terms and conditions. The amount recognised as an expense during the year was
$239,308 (from 1 October 2017 to 30 June 2018 was $521,011).
METEORIC RESOURCES NL
- 54 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
20
RELATED PARTY TRANSACTIONS (continued)
Share-based payments
During the year the following performance rights were granted:
- Dr Tunks was granted 15,000,000 options;
- Mr Burke was granted 13,000,000 options; and
- Ms Ramnath was granted 1,500,000 options.
Details of the valuation pertaining to the above-mentioned equity instruments are set out in Note 13.
There were no other related party transactions during the period.
21
RECONCILATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Loss for the period
Add/(less) non-cash items:
Depreciation
Disposal of PPE
Receipt from sale of tenement
Asset acquisition
Acquisition of tenements
Acquisition of data base
Share based payments - Directors and advisor
Share based payments - Vendors
Unrealised foreign exchange loss
2019
$
2018
$
(4,450,617)
(6,731,507)
517
-
363
1,010
534,444
2,760,000
-
-
683,081
-
34,836
276,622
295,200
124,289
70,000
5,714
Add/ (less) items classified as invested/financing activities:
Batman Minerals acquisition
950,184
-
Changes in assets and liabilities during the financial year:
Decrease/(increase) in receivables
(Decrease)/increase in payables
(75,901)
(29,686)
11,371
83,834
Net cash outflow from operating activities
(2,312,085)
(3,144,161)
METEORIC RESOURCES NL
- 55 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
21
RECONCILATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES (continued)
(a) Non-cash investing and financing activities
Acquisition of Batman Minerals Pty Ltd (see Note 4)
2019
$
1,484,628
2018
$
-
Acquisition of Cobalt Canada Pty Ltd
-
2,760,000
22
EVENTS SUBSEQUENT TO REPORTING DATE
On 20 August 2019 Meteoric advised it had completed a placement to raise $2.7 million through the issue of 84,375,000
shares at an issue price of 3.2¢ per share (Placement). Funds raised from the Placement will be used to accelerate and
expand the drilling exploration program at the Company’s 100% owned Juruena and Novo Astro Gold Projects in Brazil.
In the opinion of the Directors, no other event of a material nature or transaction, has arisen since period end and the
date of this report that has significantly affected, or may significantly affect, the Group’s operations, the results of those
operations, or its state of affairs.
23
INTEREST IN OTHER ENTITIES
(a) Investments in controlled entities
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in Note 26(a):
Country of
incorporation
2019
Equity holding
2018
Equity holding
Name of entity
Cobalt Canada Pty Ltd
Resources Meteore Sub Inc.
A.C.N 632 447 511 (2)
A.C.N 632 447 511 (2)
Batman Minerals Pty Ltd (1)
Australia
Canada
Australia
Australia
Australia
Sunny Skies Investments Limited (1)
British Virgin Islands
Meteoric Brasil Mineracao Ltda (1)
Juruena Mineracao Ltda (1)
Lago Dourado Mineracao Ltda (1)
Brazil
Brazil
Brazil
1 Acquired on 31 May 2019 as part of the asset acquisition, see Note 4.
2
Incorporated on 22 March 2019.
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
24
REMUNERATION OF AUDITORS
From time to time the Consolidated Entity may decide to employ an external auditor on assignments additional to their
statutory audit duties where the auditor's expertise and experience with the Consolidated Entity are important. These
assignments are principally tax advice and due diligence on acquisitions, which are awarded on a competitive basis. It is
the Group’s policy to seek competitive tenders for all major consulting projects. The Board is satisfied that the provision
of non-audit services during the period is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
METEORIC RESOURCES NL
- 56 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
24 REMUNERATION OF AUDITORS (continued)
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its
related parties and non-related audit firms:
(a) Greenwich & Co
Audit and assurance services
Audit and review of financial statements
Total remuneration for Greenwich & Co
(b) BDO Australia
Audit and assurance services
Audit and review of financial statements
Taxation services
Tax compliance services
Total remuneration for BDO
Total audit fees
2019
$
2018
$
297
297
30,850
30,850
30,705
7,080
37,785
38,082
-
-
30,850
25
PARENT ENTITY INFORMATION
The following information relates to the parent entity,
Meteoric Resources NL as at 30 June 2019. The
information presented here has been prepared using
consistent accounting policies as presented in Note 26.
(a) Summary of financial information
The individual aggregate financial information for the
parent entity is shown in the table.
(b) Guarantees entered into by the parent entity
The parent entity did not have any guarantees as at 30
June 2019 or 30 June 2018.
Financial position
Current assets
Total assets
Current liabilities
Total liabilities
Equity
Company
2019
$
2018
$
2,673,763
3,298,398
2,638,769
3,371,397
259,699
241,444
259,699
241,444
(c) Contingent liabilities of the parent entity
Other than those disclosed in Note 18, the parent entity
did not have any contingent liabilities as at 30 June 2019
or 30 June 2018.
Contributed equity
24,545,273
21,563,533
Reserves
1,814,337
1,129,878
Accumulated losses
(23,980,539)
(19,563,458)
(d) Contractual commitments for the acquisition of
property, plant and equipment
The parent entity did not have any contractual
commitments for the acquisition of property, plant and
equipment as at 30 June 2019 or 30 June 2018.
Total equity
2,379,071
3,129,953
Financial performance
Loss for the year
(4,417,081)
(6,726,711)
Total comprehensive loss
(4,417,081)
(6,726,711)
METEORIC RESOURCES NL
- 57 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
26
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Meteoric Resources NL (Company or Meteoric) is a company
incorporated in Australia whose shares are publicly traded on the
Australian Securities Exchange. Meteoric Resources NL is the
ultimate parent entity of the Group.
The consolidated financial statements of Meteoric Resources NL
for the year ended 30 June 2019 comprise the Company and its
controlled subsidiaries (together referred to as the Group and
individually as Group entities).
Statement of compliance
These general-purpose financial statements have been prepared
in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting
Standards Board, Australian Accounting Group Interpretations
and the Corporations Act 2001. Meteoric Resources NL is a for-
profit entity for the purpose of preparing the financial
statements.
The consolidated financial statements of the Group also comply
with International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB).
Historical cost convention
These financial statements have been prepared on an accruals
basis and are based on historical costs and do not take into
account changing money values or, except where stated, current
valuations of non-current assets. Cost is based on the fair values
of the consideration given in exchange for assets.
Critical accounting estimates and significant judgements
critical accounting estimates.
The preparation of financial statements requires the use of
requires
certain
Management to exercise its judgment in the process of applying
the Group's accounting policies. The areas involving a higher
degree of judgment or complexity, or areas where assumptions
and estimates are significant to the financial statements are
disclosed within Note 16.
It also
Advance Consideration.
The group also elected to adopt the following amendments early:
•
AASB 2018-1 Amendments to Australian Accounting
Standards - Annual Improvements 2015- 2017 cycle.
The Group had to change its accounting policies and make certain
retrospective adjustments following the adoption of AASB 9. This
is disclosed in Note 19. Most of the other amendments listed
above did not have any impact on the amounts recognised in
prior periods and are not expected to significantly affect the
current or future periods.
The adoption of all the new and revised Standards and
Interpretations has not resulted in any changes to the Group’s
accounting policies and has no effect on the amounts reported
for the current or prior years. However, the above standards have
affected the disclosures in the notes to the financial statements.
New standards and interpretations not yet adopted
AASB 16 Leases
AASB 16 eliminates the operating and finance lease classifications
for lessees currently accounted for under AASB 117 Leases. It
instead requires an entity to bring most leases onto its Statement
of Financial Position in a similar way to how existing finance
leases are treated under AASB 117. An entity be required to
recognise a lease liability and a fight of use asset in its Statement
of Financial Position for most leases. There are some optional
exemptions for leases with a period of 12 months or less and for
low value leases.
Lessor accounting remains largely unchanged from AASB 117.
The entity is yet to undertake a detailed assessment of the impact
of AASB 16. However, based on the entity’s preliminary
assessment, the Standard is not expected to have a material
impact on the transactions and balances recognised in the
financial statements when it is first adopted for the year ending
30 June 2020.
New and amended standards adopted by the Group
Interpretation 23 Uncertainty over Income Tax Treatments
The Group has adopted all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to their
operations and effective for the current annual reporting period.
New and revised Standards and amendments thereof and
Interpretations effective for the first time for the annual
reporting period commencing 1 July 2018 that are relevant to the
Group include:
•
•
•
•
AASB 9 Financial Instruments
AASB 15 Revenue from Contracts with Customers
AASB 2016-5 Amendments to Australian Accounting
Standards - Classification and Measurement of Share-based
Payment Transactions
Interpretation 22 Foreign Currency Transactions and
Interpretation 23 requires entities to calculate the current tax
liability in their financial statements as if the tax authorities were
going to perform a tax audit, and the tax authorities knew all the
facts and circumstances about the entity’s tax position.
Based on the entity’s preliminary assessment, the Standard is not
expected to have a material impact on the transactions and
balances recognised in the financial statements when it is first
adopted for the year ending 30 June 2020.
There are no other standards that are not yet effective and that
are expected to have a material impact on the Group in the
current or future reporting period and in the foreseeable future.
METEORIC RESOURCES NL
- 58 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
Accounting policies
In order to assist in the understanding of the financial statements,
the following summary explains the principle accounting policies
that have been adopted in the preparation of the financial report.
These policies have been applied consistently to all of the periods
presented, unless otherwise stated.
(a) Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and
liabilities of subsidiaries of the Company at the end of the
reporting period. Subsidiaries are all those entities (including
special purpose entities) over which the Group has the power to
govern
financial and operating policies, generally
accompanying a shareholding of more than one-half of the voting
rights. The existence and effect of potential voting rights that are
currently exercisable or convertible are considered when
assessing whether the Group controls another entity.
the
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are de-consolidated from the
date that control ceases. Where a subsidiary has entered or left
the Group during the year, the financial performance of those
entities is included only for the period of the year that they were
controlled. A list of subsidiaries is contained in Note 23 to the
financial statements.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated in full on
consolidation. Unrealised losses are also eliminated unless the
transaction provides evidence of the impairment of the asset
transferred.
Non-controlling interests in the results and equity of subsidiaries
are shown separately in the consolidated statement of profit or
loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of financial
position.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the
Group.
Changes in ownership interests
The Group treats transactions with non-controlling interests that
do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in an
adjustment between the carrying amounts of the controlling and
non-controlling interests to reflect their relative interests in the
subsidiary. Any difference between the amount of the
adjustment to non-controlling interests and any consideration
paid or received is recognised in a separate reserve within equity
attributable to owners of Meteoric Resources NL.
When the group ceases to consolidate or equity account for an
investment because of a loss of control, joint control or significant
influence, any retained interest in the entity is remeasured to its
fair value with the change in carrying amount recognised in profit
or loss. This fair value becomes the initial carrying amount for the
purposes of subsequently accounting for the retained interest as
an associate, joint venture or financial asset. In addition, any
amounts previously recognised in other comprehensive income
in respect of that entity are accounted for as if the group had
directly disposed of the related assets or liabilities. This may
mean
in other
amounts previously
comprehensive income are reclassified to profit or loss.
recognised
that
(b) Going Concern
The financial statements have been prepared on the basis that
the consolidated entity is a going concern, which contemplates
the continuity of normal business activity, realisation of assets
and settlement of liabilities in the normal course of business.
(c) Segment Reporting
Operating segments are reported in a manner that is consistent
with the internal reporting to the chief operating decision maker,
which has been identified by the company as the Board.
(d) Foreign Currency Translation
Functional and presentation currency
Items included in the financial statements of the Group are
measured using the currency of the primary economic
environment in which the Group operates (‘the functional
currency). The consolidated financial statements are presented in
Australian dollars, which is Meteoric Resources NL’s functional
and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign currency monetary assets and liabilities at
the reporting date are translated at the exchange rate existing at
reporting date. Exchange differences are recognised in profit or
loss in the period in which they arise.
No dividends were paid or proposed during the year.
Group companies
The results and financial position of foreign operations (none of
which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency
are translated into the presentation currency as follows:
•
•
assets and liabilities for each statement of financial position
presented are translated at the closing rate at the date of
that statement of financial position;
income and expenses for each statement of profit or loss
and other comprehensive income are translated at average
exchange
reasonable
this
approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income
and expenses are translated at the dates of the
is not a
(unless
rates
METEORIC RESOURCES NL
- 59 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
transactions); and
•
all resulting exchange differences are recognised in other
comprehensive income.
On consolidation, exchange differences arising from the
translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as hedges
of such investments, are recognised in other comprehensive
income. When a foreign operation is sold or any borrowings
forming part of the net investment are repaid, a proportionate
share of such exchange difference is reclassified to profit or loss,
as part of the gain or loss on sale where applicable.
Goodwill and fair value adjustments arising on the acquisition of
a foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate.
(e) Other income
Other income for other business activities is recognised on the
following basis:
Interest income
Interest revenue is recognised on a time proportionate basis that
takes into account the effective yield on the financial asset.
All revenue is stated net of Goods and Service Tax.
(f)
Income Tax and Other Taxes
The income tax expense or revenue for the period is the tax
payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the
tax laws enacted or substantively enacted at the end of the
reporting period
in the countries where the company’s
subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is
subject to
It establishes provision where
appropriate on the basis of amounts expected to be paid to the
tax authorities.
interpretation.
Deferred income tax is provided in full, using the liability method,
on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated
financial statements. However, deferred tax liabilities are not
recognised if they arise from the initial recognition of goodwill.
Deferred income tax is also not accounted for if it arises from
initial recognition of an asset or liability in a transaction other
than a business combination that at the time of the transaction
affects neither accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax liability is
settled.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary
differences and losses.
Deferred tax liabilities and assets are not recognised for
temporary differences between the carrying amount and tax
bases of investments in foreign operations where the company is
able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse
in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle
the liability simultaneously.
Meteoric Resources NL and
its wholly-owned Australian
controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single
entity and the deferred tax assets and liabilities of these entities
are set off in the consolidated financial statements.
it relates to
Current and deferred tax is recognised in profit or loss, except to
in other
the extent that
comprehensive income or directly in equity. In this case, the tax
is also recognised in other comprehensive income or directly in
equity, respectively.
items recognised
(g) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount
of GST except:
• where 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 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 Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross
basis and the GST component of cash flow 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 the amount
of GST recoverable from, or payable to, the taxation authority.
METEORIC RESOURCES NL
- 60 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
(h) Exploration and Evaluation Expenditure
The Group expenses exploration and evaluation expenditure as
incurred in respect of each identifiable area of interest until a
time where an asset is in development.
Exploration and Evaluation expenditure
Exploration for and evaluation of mineral resources is the search
for mineral resources after the entity has obtained legal rights to
explore in a specific area as well as the determination of the
technical feasibility and commercial viability of extracting mineral
resource.
Exploration and evaluation expenditure is expensed to profit or
loss as incurred except when existence of a commercially viable
mineral reserve has been established and it is anticipated that
future economic benefits are more likely than not to be
generated as a result of the expenditure.
(i)
Impairment of Non-Financial Assets
The Group assesses at each reporting date whether there is an
indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is
required, the Group makes an estimate of the asset’s recoverable
amount. An asset’s recoverable amount is the higher of its fair
value less costs to sell and its value in use and is determined for
an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets
or groups of assets and the asset’s values in use cannot be
estimated to be close to its fair value. In such cases the asset is
tested for impairment as part of the cash generating unit to which
it belongs.
When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating
unit is considered impaired and is written down to its recoverable
amount. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset.
Impairment
losses relating to continuing operations are
recognised in those expense categories consistent with the
function of the impaired asset unless the asset is carried at re-
valued amount (in which case the impairment loss is treated as a
revaluation decrease).
As assessment is also made at each reporting date as to whether
there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A
previously recognised impairment loss is reversed only if there
has been a change in the estimates used to determine the asset’s
recoverable amount since the
loss was
recognised. If that is the case the carrying amount of the asset is
increased to its recoverable amount. That increased amount
cannot exceed the carrying amount that would have been
determined, net of depreciation, had the impairment loss been
impairment
last
recognised for the asset in prior years. Such reversal is
recognised in profit or loss unless the asset is carried at the re-
valued amount, in which case the reversal is treated as a
revaluation increase. After such a reversal the depreciation
charge is adjusted in future periods to allocate the asset’s revised
carrying amount, less any residual value, on a systematic basis
over its remaining useful life.
(j) Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash
equivalents includes cash on hand, cash in bank accounts, money
market investments readily convertible to cash within two
working days, and bank bills but net of outstanding bank
overdrafts.
(k) Trade and Other Receivables
Receivables are initially recognised at fair value and subsequently
measured at amortised cost, less expected lifetime losses.
Current receivables for GST are due for settlement within 30 days
and other current receivables within 12 months.
(l)
Investments and Other Financial Assets
From 1 July 2018 the Group classifies its financial assets in the
following categories:
•
•
those to be measure subsequently at fair value (either
through OCI or through profit or loss); and
those to be measure at amortised cost.
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
fair value through other
for the equity
comprehensive income (FVOCI).
investment at
Investments in 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 profit
or loss following the derecognition of the investment. Dividends
from such investments continue to be recognised in profit or loss
as other income when the group's right to receive payments is
established.
Changes in the fair value of financial assets at FVPL are recognised
in other gains/(losses) in the statement of profit or loss as
applicable. Impairment losses (and reversal of impairment losses)
on equity investments measured at FVOCI are not reported
separately from other changes in fair value.
Accounting policies applied prior to 1 July 2018
Available for sale financial assets
Available for sale financial assets, comprising principally
marketable equity securities, are non-derivatives that are either
designated in this category or not classified in any of the other
METEORIC RESOURCES NL
- 61 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
categories. They are included in non-current assets unless the
investment matures or management intends to dispose of the
investment within 12 months of the end of the reporting period.
Investments are designated as available for sale if they do not
have fixed maturities and fixed or determinable payments and
management intends to old them for the medium to long term.
(i) Recognition and de-recognition
Investments are initially recognised at fair value plus transactions
costs for all financial assets not carried at fair value through profit
or loss. Financial assets are derecognised when the rights to
receive cash flows from the financial assets have expired or have
been transferred and the Group has transferred substantially all
the risks and rewards of ownership.
When securities classified as available for sale are sold, the
accumulated
in other
comprehensive income are reclassified to profit or loss as gains
and losses from investment securities.
fair value adjustments recognised
(ii) Subsequent measurement
Loans and receivables are carried at amortised cost using the
effective interest method.
Available for sale financial assets are subsequently carried at fair
value.
(iii) Impairment
The Group assesses at the end of each reporting period whether
there is objective evidence that a financial asset or Group of
financial assets is impaired. A financial asset or a Group of
financial assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of one
or more events that occurred after the initial recognition of the
asset (a 'loss event') and that loss event (or events) has an impact
on the estimated future cash flows of the financial asset or group
of financial assets that can be reliably estimated.
(m) Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated
depreciation and any impairment in value. Historical cost includes
expenditure that is directly attributable to the acquisition of the
items.
Subsequent costs are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the group and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as
a separate asset is derecognised when replaced.
The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in profit or
loss.
(n) Acquisition of Assets
Where an entity or operation is acquired, the identifiable assets
acquired (and, where applicable, identifiable liabilities assumed)
are to be measured at the acquisition date at their relative fair
values of the purchase consideration.
Where the acquisition is a group of assets or net assets, the cost
of acquisition will be apportioned to the individual assets
acquired (and, where applicable, liabilities assumed). Where a
group of assets acquired does not form an entity or operation,
the cost of acquisition is apportioned to each asset in proportion
to the fair values of the assets as at the acquisition date.
(o) Share-Based Payment Transactions
Benefits to Employees and consultants (including Directors)
The Group provides benefits to employees and consultants
(including directors) of the Group in the form of share-based
payment transactions, whereby employees render services in
exchange for shares or rights over shares or options (“equity-
settled transactions”).
The costs of these equity settled transactions are measured by
reference to the fair value of the equity instruments at the date
on which they are granted. The fair value of performance rights
granted is determined using the single barrier share option
pricing model. The fair value of options granted is determined by
using the Black-Scholes option pricing technique. Further details
of options and performance rights granted are disclosed in Note
13.
The cost of these equity-settled transactions is recognised,
together with a corresponding increase in equity, over the period
in which the performance and/or service conditions are fulfilled
(the vesting period).
At each subsequent reporting date until vesting, the cumulative
charge to the profit or loss is the product of: (i) the fair value at
grant date of the award; (ii) the current best estimate of the
number of equity instruments that will vest, taking into account
such factors as the likelihood of employee turnover during the
vesting period and the likelihood of non-market performance
conditions being met; and (iii) the expired portion of the vesting
period.
The charge to profit or loss for the period is the cumulative
amount as calculated above less the amounts already charged in
previous periods. There is a corresponding credit to equity.
Until an equity instrument has vested, any amounts recorded are
contingent and will be adjusted if more or fewer equity
instruments vest than were originally anticipated to do so. Any
equity instrument subject to a market condition is valued as if it
will vest irrespective of whether or not that market condition is
fulfilled, provided that all other conditions are satisfied.
METEORIC RESOURCES NL
- 62 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2019
If the terms of an equity-settled award are modified, as a
minimum, an expense is recognised as if the terms had not been
modified. An additional expense
for any
modification that increases the total fair value of the share-based
payment arrangement or is otherwise beneficial to the recipient
of the award, as measured at the date of modification.
is recognised
If an equity-settled transaction is cancelled (other than a grant
cancelled by forfeiture when the vesting conditions are not
satisfied), it is treated as if it had vested on the date of
cancellation, and any expense not yet recognised for the award is
recognised immediately. However, if a new equity instrument is
substituted for the cancelled award and designated as a
replacement award on the date that it is granted, the cancelled
and new equity instrument are treated as if they were a
modification of the original award, as described in the preceding
paragraph.
Benefits to Vendors
The Group provides benefits to vendors of the Group in the form
of share-based payment transactions, whereby the vendor has
render services in exchange for shares or rights over shares or
options (“equity-settled transactions”).
The fair value is measured by reference to the value of the goods
or services received. If these cannot be reliably measured, then
by reference to the fair value of the equity instruments granted.
The cost of these equity-settled transactions is recognised over
the period in which the service was received.
(p) Fair Value Estimation
The fair value of financial assets and financial liabilities must be
estimated for recognition and measurement or for disclosure
purposes.
The carrying value less impairment provision of trade receivables
and payables are assumed to approximately their fair value due
to their short-term nature. The fair value of financial liabilities for
disclosure purposes is estimated by discounting the future
contractual cash flows at the current market interest rate that is
available to the Group for similar financial instruments.
(q) Employee Entitlements
The Group’s liability for employee entitlements arising from
services rendered by employees to reporting date is recognised
in other payables. Employee entitlements expected to be settled
within one year together with entitlements arising from wages
and salaries, and annual leave which will be settled within one
year, have been measured at their nominal amount and include
related on-costs.
(r) Loss Per Share
Basic loss per share
Basic loss per share is determined by dividing the operating loss
attributable to the equity holder of the Group after income tax by
the weighted average number of ordinary shares outstanding
during the financial year.
Diluted loss per share
Diluted loss per share adjusts the figures used in determination
of basic loss per share by taking into account amounts unpaid on
ordinary shares and any reduction in earnings per share that will
arise from the exercise of options outstanding during the year.
(s) Trade and Other Payables
Trade payables and other payables are carried at cost and
represent liabilities for goods and services provided to the Group
prior to the end of the financial period that are unpaid and arise
when the Group becomes obliged to make future payments in
respect of the purchase of these goods and services. The
amounts are unsecured and usually paid within 30 days of
recognition.
(t) Contributed Equity
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 of the share proceeds received.
(u) Dividends
No dividends were paid or proposed during the year.
(v) Comparatives
Comparative figures have been restated to conform with the
current year’s presentation. This has had no impact on the
financial statements.
(w) Parent Entity Financial Information
The financial
information for the parent entity, Meteoric
Resources NL, disclosed in Note 25 has been prepared on the
same basis as the consolidated financial statements except as set
out below:
Investments in subsidiaries
Investments in subsidiaries are accounted for at cost and subject
to an annual impairment review.
METEORIC RESOURCES NL
- 63 -
DIRECTORS’ DECLARATION
The directors of the Group declare that:
1.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 and:
(a) comply with Australian Accounting Standards and the Corporations Act 2001;
(b)
(c)
give a true and fair view of the financial position as at 30 June 2019 and performance for the year ended
on that date of the Group; and
the audited remuneration disclosures set out in the Remuneration Report section of the Directors’
Report for the year ended 30 June 2019 complies with section 300A of the Corporations Act 2001;
2.
the Chief Financial Officer has declared pursuant to section 295A.(2) of the Corporations Act 2001 that:
(a)
(b)
the financial records of the Group for the financial year have been properly maintained in accordance
with section 286 of the Corporations Act 2001;
the financial statements and the notes for the financial year comply with Australian Accounting
Standards; and
(c) the financial statements and notes for the financial year give a true and fair view;
3.
4.
in the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts
as and when they become due and payable;
the Directors have included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.
Patrick Burke
Non-Executive Chairman
Perth
27 September 2019
METEORIC RESOURCES NL
- 64 -
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Meteoric Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Meteoric Resources NL (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2019 the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Acquisition of Batman Minerals Pty Ltd
Key audit matter
How the matter was addressed in our audit
On 31 May 2019, the Group acquired ownership of
Our work included but was not limited to the
Batman Minerals Pty Limited as disclosed in Note 4 of
following procedures:
the financial report.
(cid:127)
Obtaining an understanding of the transaction,
The group treated the transaction as an asset
including an assessment of whether the
acquisition, rather than a business combinations.
transaction constituted an asset acquisition or
Accounting for this transaction is complex and requires
management to exercise judgement to determine the
appropriate accounting treatment including whether
the acquisition should be classed as an asset
acquisition or business combination, estimating the fair
value of the net assets acquired and estimating the fair
value of the purchase consideration.
business combination;
(cid:127)
(cid:127)
(cid:127)
(cid:127)
Reviewing the sale and purchase agreement to
understand the key terms and conditions;
Assessing management’s determination of the
fair value of consideration paid and agreeing the
consideration to supporting documentation;
Evaluating management’s assessment of the fair
value of the net assets acquired; and
Assessing the adequacy of the related disclosure
in Note 4 to the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2019, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Other matter
The financial report of Meteoric Resources NL, for the year ended 30 June 2018 was audited by another
auditor who expressed an unmodified opinion on that report on 29 September 2018.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included on pages 19 to 25 of the directors’ report for the
year ended 30 June 2019.
In our opinion, the Remuneration Report of Meteoric Resources NL, for the year ended 30 June 2019,
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.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth, 27 September 2019
TENEMENT DETAILS
As at 30 June 2019
Tenement
Nature of Interest
Project
Equity (%)
Australian Tenements
E80/4235
E80/4407
E80/4506
E80/4737
E80/4815
E80/5071
E80/5121
EL23764
EL30701
EL28620
Granted
Granted
Granted
Granted
Granted
Granted
ELIZABETH HILLS (Webb JV)
ANGAS HILL (Webb JV)
19%
19%
WEBB DIAMONDS (Webb JV)
Rights to 11%
WEBB DIAMONDS (Webb JV)
LAKE MACKAY (Webb JV)
WEBB DIAMONDS (Webb JV)
Application
WEBB DIAMONDS (Webb JV)
Granted
Granted
Granted
WARREGO NORTH
R29 BABBLER
BARKLY
Canadian Tenements
17%
17%
17%
17%
49%
49%
30%
Tenement
Province
Project
Equity (%)
1131335 - 1131337
1131339- 1131345
2402370 to 2402386
2412147 to 2412207
2499867 to 2499896
2499900 to 2499960
2500063 to 2500089
2500771 to 2500776
2501091 to 2501095
2505025 to 2505027
2505037 to 2505039
2505048 to 2505053
2505823 to 2505827
4284365 to 4284371
4278666 and 4280538
Variuos
517797 to 517963
504371-504383
518751-518760
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Quebec
Ontario
Ontario
Ontario
Ontario
Ontario
Ontario
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
MIDRIM/LAFORCE
IRON MASK
MULLIGAN
BURT
BEAUCHAMP
JOYCE RIVER
JOYCE RIVER
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
METEORIC RESOURCES NL
- 68 -
TENEMENT DETAILS
As at 30 June 2019
Tenement
Province
Project
Equity (%)
Brazilian Tenements
Juruena Project
866.079/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.081/2009
Granted Exploration Permit
866.082/2009
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA
BANDEIRANTES/ MT
COTRIGUAÇU/MT, NOVA
BANDEIRANTES/ MT
866.084/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.778/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.531/2015
Granted Exploration Permit
COLNIZA/MT, COTRIGUAÇU/MT
866.532/2015
Granted Exploration Permit
COTRIGUAÇU/MT
866.533/2015
Granted Exploration Permit
COLNIZA/MT, COTRIGUAÇU/MT
866.534/2015
Granted Exploration Permit
COLNIZA/MT, COTRIGUAÇU/MT
866.535/2015
Granted Exploration Permit
COLNIZA/MT, COTRIGUAÇU/MT
866.537/2015
Granted Exploration Permit
COLNIZA/MT, COTRIGUAÇU/MT
866.538/2015
Granted Exploration Permit
COTRIGUAÇU/MT
866.085/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.080/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.086/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.247/2011
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.578/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.105/2013
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.934/2012
Granted Exploration Permit
COTRIGUAÇU/MT
866.632/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.633/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.294/2013
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.513/2013
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA
BANDEIRANTES/ MT
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Nova Astro Project
867.246/2005
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
100%
METEORIC RESOURCES NL
- 69 -
OTHER INFORMATION
The following additional information is required by the Australian Securities Exchange Ltd in respect of listed public
companies only.
Information as at 24 September 2019.
Distribution of Shareholders
Category (Size of
Holding)
Number of
Holders
Fully Paid Ordinary
Shares
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
49
10
51
962
1,097
2,169
8,560
26,684
460,576
53,950,304
930,293,722
984,639,846
Unmarketable Parcels
The number of holders with less than a marketable parcel of shares is 77.
Substantial shareholders:
The names of the substantial shareholders listed in the Company's register as at 24 September 2019.
Shareholder Name
Tolga Kumova
KLARE PTY LTD
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