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2023 ReportMETEORIC RESOURCES NL
ABN 64 107 985 651
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2021
METEORIC RESOURCES NL
- 1 -
CORPORATE DIRECTORY
Directors
Patrick Burke
Andrew Tunks
Shastri Ramnath
Paul Kitto
Marcelo de Carvalho
Company Secretary
Matthew Foy
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Stock Exchange Listing
Australian Securities Exchange
ASX Code - MEI
Bankers
Bank of Western Australia Ltd
306 Murray Street
Perth WA 6000
Registered and Principal Office
Level 1, 33 Ord Street
West Perth WA 6005
Telephone: +61 8 9226 2011
+61 8 9226 2099
Facsimile:
info@meteoric.com.au
Email:
www.meteoric.com.au
Web:
Share Registry
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Facsimile:
+61 2 9698 5414
Auditor
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
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
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27
28
29
30
31
60
61
65
67
METEORIC RESOURCES NL
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CHAIRMAN’S LETTER
Dear Shareholders
Meteoric has had an exciting and productive 2021, with several irons in the fire at our two key projects in Western
Australia and Brazil.
In WA, we have made excellent progress at the Palm Springs Gold, which we only acquired in mid 2020, having made
the decision to diversify our portfolio of assets to include an Australian project. This decision has proven to be fruitful
for the Company as during the course of this year, we delivered a maiden resource for Palm Springs, totalling 5.6 million
tonnes at 2 grams per tonne gold for 357,000 ounces well ahead of schedule.
Excitingly, drilling programs at Butchers Creek will feed into additional Resource estimation work, and underpin mining
and metallurgical studies crucial for the development of the deposit. A crucial element of any further evaluation is to
understand mining and treatment methods for the Butchers Creek orebody. Previous exploration and the Company’s
announcement of the 5.2Mt @ 1.9 g/t for 319k oz of gold has cemented the deposit as the heart of any potential new
development in the Halls Creek region, it is by far and away the largest gold resource in the belt outside the Nicholsons
deposit.
We have also made impressive progress at our Juruena Project in Brazil where we increased the Mineral Resource
Estimate to a total of 1.9 million tonnes at 6.3 grams per tonne gold for 387,000 ounces of contained metal and identified
a quality porphyry copper target. This has enabled us to seriously assess development scenarios for both initial open pit
mining followed by deeper underground mining.
In July, we had the pleasure of welcoming Dr Marcelo De Carvalho to Meteoric’s board with the key responsibility of
overseeing our operations in Brazil. Marcelo has been involved with our Juruena Project since we acquired it in early
2019 and has done a stellar job in building a strong technical team who has helped to deliver these excellent results to
date. Marcelo brings with him vast knowledge of the local sector and geology and has extensive contacts across the
Brazilian Mining Industry and within Government. As a company, we feel confident he is the right person to guide us as
our exploration and development efforts in Brazil mature.
As Chairman of Meteoric, I would like to thank you for your loyal support of our company. Without it, our achievements
this year would not have been possible. Throughout the year again, we have been led by Managing Director Dr Andrew
Tunks whose passion for the industry and exploration buoys the Company as we progress.
We continue to work in earnest to progress our assets towards development and production. I look forward to keeping
you updated on our progress in the year ahead.
Yours sincerely
Patrick Burke
Chairman
METEORIC RESOURCES NL
- 3 -
DIRECTORS’ REPORT
The Company presents its financial report for the consolidated entity consisting of Meteoric Resources NL (Company,
Meteoric or MEI) and the entities it controls (Consolidated Entity or Group) at the end of, or during, the year ended 30
June 2021.
Meteoric completed this financial year focusing on the following key gold assets:
•
•
Juruena Gold Project, Brazil
Palm Springs Gold Project, Western Australia
Given the global COVID-19 situation that presented itself in 2020, the Meteoric Board made the decision to diversify the
Company’s geographical risk and seek an asset located in Australia. As such, the Palm Springs Gold Project acquisition
was announced in June 2020 and the Company enters the 2021 financial year with a two-pronged strategy of developing
both its Brazilian Juruena Project and Australian Palm Springs Project.
REVIEW OF OPERATIONS
Following the release of Mineral Resource Estimates for both Palm Springs and Juruena during the year, the Company’s
total portfolio of Resources across its Juruena and Palm Springs Projects now stands at ~745,000 oz Au.
Table 1: Mineral Resource Estimates at Palm Springs and Juruena Gold Projects, June 2021.
AUSTRALIA
Palm Springs Gold Project
Global Mineral Resource Estimate
Following the acquisition of the Palm Springs Project in mid-2020, Meteoric has made significant progress in developing
this project over the last year.
We released the below Maiden Global Mineral Resource Estimate (MRE) in June 2021 which we delivered well ahead of
schedule.
• Global Mineral Resource Estimate (MRE) of 5.6 Mt @ 2.0 g/t for 357,000 oz of gold (including 139,000 oz of
Indicated Resources) from two (2) deposits:-
o Butchers Creek (includes remaining resources below the historic Pit)
Indicated 1.9 Mt @ 2.24 g/t for 139,000 oz Au; and
Inferred 3.3 Mt @ 1.7g /t for 180,000 oz Au
o Golden Crown (restated under JORC 2012)
Inferred 390 Kt @ 3.1 g/t for 38,000 oz Au
The MRE underpins the Company’s ability to grow and develop the project, which has a history of gold production.
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
The maiden Mineral Resource Estimate for the Palm Springs Gold Project comprises mineralisation at Butchers Creek
and Golden Crown. The Global Resource, using a 0.8g/t Au lower cut-off, contains a total of 357,000 oz of gold comprising
139,000 ounces @ 2.24 g/t Au in the Indicated category and 218,000 ounces @ 1.9 g/t in the Inferred category.
Key points from the Palm Springs MRE include:
•
40% of MRE reported in Indicated category - significantly reducing planned exploration and development
timelines
• A large portion of the Indicated Resource at Butchers Creek occurs in the floor and beneath the historic pit,
•
•
providing immediate ore for future development
The Butchers Creek Resource largely sits within granted Mining Leases, potentially cutting approval times for
development
Classification of Indicated Resources immediately below the Butchers Creek pit means the Company no longer
needs to dewater the historic pit or complete verification drilling, a significant saving in expenditure and time
as the project moves toward economic studies/prefeasibility
Deposit
Butchers Creek
Sub-total
Golden Crown
Sub-total
PSPG Global Resource
Lower
Cut-off
(g/t)
0.8
0.8
0.8
0.8
Resource
Classification
Tonnes
(Mt)
Gold Grade
(g/t)
Contained
Gold (oz)
Indicated
Inferred
Inferred
1.9
3.3
5.2
0.4
0.4
5.6
2.2
1.7
1.9
3.1
3.1
2
139,000
180,000
319,000
38,000
38,000
357,000
Table 2: Meteoric’s Maiden Global Mineral Resource Estimate for the Palm Springs Gold Project.
2021 Drill Program
The Company learnt a great deal about Palm Springs from last year’s highly successful maiden drill program, in particular
that gold mineralisation is stratabound within a single thick syenite unit and that the highest grade and thickest parts of
the orebody occur within the hinge zone of a regional scale anticlinal fold hinge forming a robust high-grade zone that
plunges shallowly southeast.
Our 2021 drilling program is designed to further improve our confidence in the spatial distribution of the high-grade
zone and further extend this zone down plunge to potentially grow the current gold resource inventory.
Results to date from the Anticlinal hinge zone intersections confirm large, robust intervals including:-
BCRD483 – 57m @ 1.6g/t Au from 223m
including 18m @ 3.1g/t Au from 234m
BCRD484 – 32m @ 1.4g/t Au from 266m
including 4m @ 6.0g/t Au from 266m
Based upon these results the Company plans to progress the following key studies: Open pit optimisations to develop
ore immediately beneath the historic pit; underground development scenarios to exploit deeper portions of the
resource, initial preliminary metallurgical studies on 2021 drill core, and assessing process route designs. Results will all
be fed into a Scoping level study.
Further assay results are anticipated in October.
Butchers Creek Geologic interpretation and mineralisation
Mineralisation at Butchers Creek is interpreted to be stratabound within a trachytic unit that intrudes a sequence of
interbedded sedimentary rocks. The syenite acts as a host to gold mineralisation (Figure 1). The stratigraphy is
metamorphosed to greenschist facies, and the main deformation is represented as a tight, anticlinal fold that plunges
METEORIC RESOURCES NL
- 5 -
DIRECTORS’ REPORT (continued)
shallowly SW and has an axial plane dipping approximately 70 degrees to NW. The fold hinge zone is strongly thickened
but the mechanism for this is not yet clear.
The true thickness of the trachytic unit is approximately 20 to 30m along the fold limbs but is structurally thickened in
the hinge region. Significantly, higher grade gold mineralisation is observed in this hinge region of the fold. Figure 1
illustrates a cross-section through the central and southern parts of the orebody with thick, robust intersections in the
hinge region and narrower, generally lower grade intersections on the fold limbs.
Gold mineralisation is strongly associate with quartz-albite-carbonate veins and strong sulphidation with pyrite,
pyrrhotite and arsenopyrite (in decreasing percentages). As mentioned, gold mineralisation is observed to be
substantially thicker and generally higher grade in the hinge of the anticline. Therefore, the syenite unit has been
modelled as one domain, with a second higher-grade domain modelled within the fold hinge so as not to smear the
higher grades.
Figure 1: Section 9850N (150m south of Butchers Creek Open Pit) demonstrating southern extension of mineralisation
with continued thick, higher-grade intersections in the hinge region (modelled as a higher grade domain) and
generally narrower, lower grade intersections down the fold limbs (modelled as a separate domain).
This high-grade domain extends up dip into the south pit where it outcrops at the base of the southern wall of the pit.
Heading north the fold hinge and high-grade domain has been eroded, leaving only the mineralised limbs of the syenite
containing the gold mineralisation. The syenite host has been modelled along a strike length of approximately 1,600m
(Figure 2).
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
Figure 2: Mineralised Syenite (dark green) and the internal high-grade domain on the fold hinge (brown).
Golden Crown Mineral Resources Estimate
The Golden Crown Mineral Resource Estimate (MRE) is based on historic RC and DD drilling. The Golden Crown MRE is
made up of two (2) prospects, inclusive of historic workings at Golden Crown and Faugh-a-Ballagh. These prospects are
approximately 3 km NE of Butchers Creek.
Geology and geological interpretation
The gold mineralisation at Golden Crown and Faugh-a-Ballagh is stratabound within a syenite unit which has a northeast
strike and variable dip from sub vertical to 35°. Having a known strike length of over 3km and a width of up to 50m, the
syenite has intruded the metavolcanics and sediments.
Mineralisation at Golden Crown and Faugh-a-Ballagh is restricted to zones of quartz veining within the syenite body with
no gold mineralisation in the immediate surrounding rock. The main zones of quartz veining at Golden Crown and Faugh-
a-Ballagh appear to crosscut the host body in a north westerly direction with variable dips from sub vertical to 60°W.
Multiple quartz vein sets have been mapped at the prospects although the dominant vein sets have yet to be identified.
The quartz veining and the edge of the syenite body was generally used as the edge of gold mineralisation
Juruena Copper-Gold Porphyry Project, Brazil
Increase in Juruena Resources Estimate
In June 2021, the Company provided an updated Mineral Resource Estimate for the Juruena Project, comprising gold
mineralisation from the adjacent Dona Maria, Querosene and Crentes deposits. The updated Global Mineral Resource
now stands at 1.9Mt @ 6.3 g/t Au for 387,000 ounces of gold, an increase of 50% over the previous resource. For full
details of the MRE upgrade see the Company’s ASX Announcement of 15 June 2021.
METEORIC RESOURCES NL
- 7 -
DIRECTORS’ REPORT (continued)
The Juruena Resource comprises 3 separate but adjacent gold deposits:
• High-Grade Epithermal Gold deposits at Dona Maria and Querosene:
o
o
Indicated 286,000t @ 17.0 g/t Au for 156,000 ounces Au; and
Inferred 692,000t @ 7.6 g/t Au for 170,000 ounces Au
The Crentes Gold-Copper deposit hosted in the Juruena Fault:
Inferred 943,000t @ 2.0 g/t Au for 60,900 ounces Au
o
•
The growth in the Juruena Resource has largely been underpinned by growth at the Dona Maria and Crentes deposits
with significant extensions at depth where both orebodies remain open. A similar approach is under planning for the
Querosene as the next major target.
The significant 2021 Mineral Resource Upgrade, which includes 40% of the gold endowment in the Indicated Category,
allows the Company to update the existing 2017 Scoping Study and prepare to apply for a Mining Licence with Brazilian
mining authorities. In addition, the high-grade epithermal gold projects remain open at depth so there remains
considerable opportunity for further resource growth with additional drilling. Tenders for the Scoping Study update at
Juruena have been called for in both Brazil and Australia.
Prospect & Depth
All < 100m
All > 100m
Indicated
All < 100m
All > 100m
Inferred
Global MRE
RESOURCE
CATEGORY
Indicated
Indicated
Sub Total
Inferred
Inferred
Sub Total
CUT OFF (g/t)
TONNES
GRADE (g/t) GOLD (oz)
0.8
2.5
0.8
0.8
2.5
2.5
150,000
136,300
286,300
1,211,000
423,000
1,634,000
1,920,500
13.7
20.6
17.0
3.5
7.0
4.4
6.3
66,300
90,500
156,800
134,700
95,800
230,500
387,200
Table 3: Global Minerals Resources, note Figures may not add due to rounding.
RESOURCE
CATEGORY
Indicated
Indicated
Indicated
Inferred
Inferred
Inferred
Indicated
Indicated
Indicated
Inferred
Inferred
Inferred
Prospect & Depth
Dona Maria < 100m
Dona Maria > 100m
Sub-total
Dona Maria < 100m
Dona Maria > 100m
Sub-total
Dona Maria Total
Querosene < 100m
Querosene > 100m
Sub-total
Querosene < 100m
Querosene > 100m
Sub-total
Querosene Total
High Grade Indicated
High Grade Inferred
HIGH GRADE TOTAL
CUT OFF (g/t)
TONNES
GRADE (g/t) GOLD (oz)
0.8
2.5
0.8
0.8
2.5
2.5
0.8
2.5
0.8
0.8
2.5
2.5
125,000
130,000
255,000
164,000
274,000
438,000
693,000
25,000
6,000
31,000
151,000
103,000
254,000
285,000
286,000
692,000
978,000
11.0
16.2
15.6
2.8
6.4
5.1
9.0
27.4
32.2
28.1
13.5
13.6
12.0
13.9
17.0
7.6
10.4
44,000
84,000
128,000
15,000
57,000
72,000
200,000
22,000
6,000
28,000
65,000
33,000
98,000
127,000
156,000
170,000
326,000
Table 4: High-Grade Epithermal Deposits, note Figures may not add due to rounding.
Juruena Project - 2020 Deep IP Survey
Deep DC/IP (Direct Current Induced Polarisation) with MT (Magnetotellurics) is routinely used to explore for Porphyry
(Cu-Au) mineralisation as disseminated sulphide bodies, such as those present in porphyry Cu-Au deposits, are excellent
candidates for identification. The 2020 survey used a distributed array-based geophysical system that collects two
separate geophysical surveys; DCIP as well as MT. DCIP provides resistivity and chargeability sections, and the MT
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
provides a deeper resistivity section. The DCIP data is typically and routinely collected to depths of 800m/1000m (with
the telluric filter), and the MT data is collected to depths of 2000m.
Meteoric completed a Deep DCIP survey consisting of 6 lines, spaced 800m apart (4 km of strike) over 26-line kms (Figure
7) in October-November 2020 with the results announced in December. The survey was specifically designed to cover
an area of the project thought to exhibit the greatest prospectively for porphyry (Cu-Au) mineralisation, namely the
coincidence of:
strong Cu-Au-Mo anomalism in soils
depth extensions of distinct hydrothermal alteration, distinctive veining and
mineralisation logged in drill core at moderate-shallow levels
depth extensions to intermediate porphyry intrusives identified in drill core which display fertile Cu-Au
geochemistry at moderate-shallow levels
an area of structural complexity related to a fault wedge between the south dipping Juruena Fault and the
north dipping Gleba and Jacares Faults
low-level copper
L1
L2
L3
L4
L5
L6
Figure 7: Geophysical survey lines highlighting the Data coverage over Juruena and the location of the main gold prospects.
The deep IP survey defined a high chargeability/resistivity anomaly, directly beneath the area where alteration vectors
defined a potential source for the Cu-Au mineralising fluids. The intense chargeability anomaly (above 15 mv/v) is
strongly indicative of disseminated sulphides and very large in size (2km in length and 1.5km wide). An intense core of
high chargeability (above 20 mv/v) occurs within the center of the anomaly and presents an obvious drill target
approximately 1.5km long and 800m wide.
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
b
Figure 8: 3D image showing the 400m depth slice of the Juruena IP chargeability anomaly. The strongly anomalous zones with
>15 & 20mv/V chargeability are interpreted to represent strong porphyry Cu-Au related sulphide alteration.
The top of the chargeability anomaly lies less than 400m below surface and is open at depth and to the NW where it
approaches the Arrasto Hills Volcanic Center, thus defining an excellent drill target for 2021. In addition, the high
chargeability anomaly correlates very well with the MVI magnetic anomaly obtained from the historical MAG survey
conducted by Lago Dourado and re-interpreted by Southern Geoscience Australia.
Figure 8A shows a 3D view of the chargeability sections generated from the recent Deep IP survey data (10mv/v cut)
transposed over a geological map with the main Juruena prospects. Note that the major chargeability anomaly is situated
under the Uilian/Mauro targets, where historic exploration drill holes by previous explorers intercepted porphyritic rocks
but were too shallow to intersect the interpreted anomaly located closer to 400m in depth. Figure 8B similarly illustrates
in detail a 3D view of the strongest chargeability anomaly, using a 15mv/v cut for the recent Deep IP survey data.
A
Figure 8A: 3D Voxel
with chargeability
sections generated by
the Deep IP survey at
the Juruena Project.
Prospects have also
been highlighted. The
3D body was modeled
using10mv/v.
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
B
Figure 8B. Shows the
3D Voxel interpolation
generated with the IP
chargeability data.
Note the Iso-surfaces
with 15 mv/v (high)
and 20 mv/v (very
high) and 22 mv/v,
define a NW striking
elongated anomaly.
The higher chargeability (above 15mv/v) defines an elliptical anomaly in the central portion of the grid and is considered
an excellent potential Porphyry Cu-Au target to be drill tested.
Figure 9: 3D Voxel and chargeability sections generated by the Deep IP survey at Juruena illustrating the potential size of the
anomaly. The 3D body was modelled using 15mv/v values with internal iso-surfaces of 20 and 25mv/v.
Figure 10: Detail on the 3D Voxel showing the major chargeability anomaly. The major anomaly is 1,8km wide and defines an
excellent moderately shallow porphyry Cu-Au drill target.
METEORIC RESOURCES NL
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DIRECTORS’ REPORT (continued)
Juruena Porphyry
Following on from the results of the Deep IP survey Meteoric committed to testing the main chargeabilty anomaly with
three deep holes. Two deep holes were completed by the end of the year. The Company has reported that both holes
intercepted broad zones where molybdenite and chalcopyrite were recorded with more localised zones of bornite within
strong potassic alteration typical of a porphyry copper-gold system.
Porphyry Copper Drilling - JUDD042
The first deep drill hole (JUDD042) designed to test the deep high-chargeability IP anomaly at the Juruena Project area
confirms the potential for a major Cu-Au porphyry environment, closely related to the shallow epithermal deposits (Dona
Maria, Crentes and Querosene, among others).
The geology in JUDD042 confirms the Company’s interpretation of a magmatic Porphyry environment being responsible
for the high-grade gold and copper mineralisation at shallower levels. At the time of writing assays are still awaited.
Deep Diamond Hole JUDD043
Towards the end of the financial year Meteoric was continuing with JUDD043, a deep diamond hole at its Juruena Project,
designed to test a significant chargeability anomaly recognised in a Deep IP Survey Hole JUDD043 intersected multiple
zones of sulphides, considered diagnostic of magmatic (porphyry) deposits including; molybdenite, chalcopyrite, bornite
with traces of chalcocite and covellite.
A 50m thick zone of intense alteration with disseminated copper sulphides composing up to 10% of the rock mass (187-
240m) is related to two intermediate porphyritic intrusives. A distal zone of molybdenite + pyrite with zones chalcopyrite
has been recorded in veins and disseminations from 110m to 350m (zone of over 200m thickness) around the porphyry
intrusives.
Drill hole JUDD043 was finalised at 820m depth (see the Company’s ASX Announcement of 20 June 2021) molybdenum
and copper sulphides have been observed in over 600m of core from JUDD043, at the time of writing final assays are still
pending
Commenting on the Juruena project in general, newly appointed Meteoric Director, Dr Carvalho, said:
“I have been working for Meteoric since its acquisition of Juruena and am very excited about the future of this
project. As soon as I set foot out there, I knew Juruena had untapped potential and what has transpired with
the upgrade to the Mineral Resource Estimate and the identification and initial drilling of a quality porphyry
copper target is very impressive.
The excellent work MEI has carried out over the last 2 years has undoubtably unlocked the potential for a major
discovery.
In my opinion, the work carried out by Meteoric to date has discovered a new Porphyry System at Juruena. We
do not know yet how big it is and what average grade it will deliver, but initial signs indicate that it is strong
and large. Porphyry mineralisation was discovered a few years ago at the eastern end of the Alta Floresta Belt
by Anglo American. That discovery led to a new exploration rush to the region with license applications covering
the entire region and the area getting a dominant share of the investment in exploration in Brazil in recent
times. Our discovery, 400km to the west of the above-mentioned project, is changing exploration ideas along
the entire belt.
Finally, it is very important to point out that in my experience, success in exploration does not always come
easy, however, your chances are definitely enhanced if you can get the following mix right: a project with a
large potential, in a known mineralised belt, with an experienced exploration team and an appropriate
corporate strategy and financial support. MEI has done exactly that.”
METEORIC RESOURCES NL
- 12 -
DIRECTORS’ REPORT (continued)
Other Australian Projects
Webb Diamond JV (Ownership 16% MEI / 82% Geocrystal Pty Ltd)
The Webb Diamond JV is focused on the evaluation of a large kimberlite field comprising 280 nulls-eye targets and covers
an area of 400km2. About 23% of the targets have been drill tested with 51 kimberlite bodies identified.
Warrego North IOCG Project (Ownership 49% MEI / 51% Chalice Gold Mines Limited)
Located in the Northern Territory, the Warrego North Project is approximately 20km northwest of the historical high-
grade Warrego Copper-Gold Mine, the largest deposit mined in the area producing 1.3 Moz Au and 90,000 tonnes of
copper.
Chalice Gold Mines Limited (ASX:CHN) can earn up to 70% interest in the project by sole funding $800,000.
Disposal of Midrim and LaForce Projects, Canada
Meteoric Resources completed the sale of its Canadian Nickel-Copper projects, Midrim and LaForce, for consideration
of 13,050,000 shares in ASX listed Rafaella Resources Limited (ASX:RFR or “Raffaella”) in November.
The remainder of the Company’s Canadian cobalt projects (Mulligan, Mulligan East Beauchamp, and Iron Mask) remain
under review and as such, no field work was carried out this year.
Corporate
Capital Raising
In December 2020, Meteoric issued 70,175,439 new shares to raise up to $4 million before costs at an issue price of
$0.057 per share, to sophisticated and professional investors. The placement included an attaching unlisted option
exercisable at $0.10, expiring three years from the date of issue on the basis of one option for every two placement
shares issued.
Appointment of New Director
On 20 July 2021, Dr Marcelo De Carvalho was appointed to the board of Meteoric, bringing with him his intimate
knowledge of the Juruena Project along with a long and successful history of Brazilian exploration.
Dr Carvalho graduated from the State University of Sao Paulo in 1996 with a Bachelor of Geology and commenced his
exploration career in Brazil, working for Anglo Gold exploring for gold in the Amazon and subsequently with Vale,
exploring for base metals.
In 2004, Dr Carvalho moved to Perth (UWA) to complete a PhD in Metalogenesis. Returning to Brazil he joined Yamana
Gold and rose to the role of Greenfields Exploration Manager before departing in 2012.
During that time, Marcelo led an experienced Exploration Team and was part of a several gold discoveries, taking projects
from Project Generation all the way through to Mining Reserves and Development. With the experience acquired over
these years, Marcelo cofounded his own consultancy company, Target Latin America (TLA) and has consulted to explorers
from across the globe for over 10 years, selecting and managing exploration projects in the Americas.
Strong Cash Position
Meteoric maintains a strong cash position with A$4.0 million cash in hand as at 30 June 2021.
METEORIC RESOURCES NL
- 13 -
DIRECTORS’ REPORT (continued)
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Subsequent to year end:
- On 9 July 2021, the Company announced that it had issued 16,500,000 ordinary fully paid shares on conversion
of performance rights,
- On 20 July 2021, the Company announced that Dr Marcelo De Carvalho has been appointed to the board,
- On 4 August 2021, the Company announced that it had issued 3,000,000 ordinary fully paid shares on conversion
of performance rights, and
- On 24 August 2021, the Company announced that it had issued 3,000,000 ordinary fully paid shares on
conversion of performance rights.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not impacted financially on the Company
up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
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 stated are:
Mr Patrick Burke
Non-Executive Chairman
Dr Paul Kitto
Non-Executive Director
Ms Shastri Ramnath
Non-Executive Director
Dr Andrew Tunks
Managing Director
Dr Marcelo De Carvalho
Non-Executive Director
Appointed
20.07.2021
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 $9,043,665 for the year (30 June 2020: $7,145,567).
At 30 June 2021, the Group had net assets of $4,656,429 (30 June 2020: $6,536,253) and cash assets of $3,967,738
(30 June 2020: $6,512,581).
METEORIC RESOURCES NL
- 14 -
DIRECTORS’ REPORT (continued)
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 holds a Bachelor of Law from the University of Western Australia. He has
extensive legal and corporate advisory experience and over the last 15 years has acted
as a Director for a large number of ASX listed companies, as well as 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. He is
currently Non-Executive Chairman of ASX listed Province Resources Limited and
Mandrake Resources Limited and a Non-Executive Director of Western Gold Limited,
Torque Metals Limited, and Triton Minerals Limited.
Equity Interests
13,000,000 options exercisable at $0.024 on or before 28 May 2023.
15,000,000 performance rights subject to various performance milestones.
Directorships held in other
ASX listed entities
Current directorships:
- Non-Executive Director - Western Gold Limited from 22 March 2021
- Non-Executive Director - Torque Metals Limited from 9 February 2021
- Non-Executive Chairman - Province Resources Limited from 9 November 2020
- Non-Executive Chairman - Mandrake Resources Limited from August 2019
- Non-Executive Director - Triton Minerals Limited from July 2016
Former directorships:
- Koppar Resources Limited - from February 2018 to December 2019
- Transcendence Technologies Limited - from September 2018 to November 2019
- Vanadium Resources Limited - from July 2017 to November 2019
- Westwater Resources, Inc. - from March 2016 to April 2019
- Bligh Resources Limited - from December 2016 to November 2018
No other listed directorships have been held by Mr Burke in the previous three years.
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 Geoscientist 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, IMAGOLD 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.
Equity Interests
2,303,000 ordinary fully paid shares.
15,000,000 options exercisable at $0.024 on or before 28 May 2023.
15,000,000 performance rights subject to various performance milestones.
Directorships held in other
ASX listed entities
Current directorship:
- Non-Executive Director - West Wits Mining Ltd from April 2019
No other listed directorships have been held by Dr Tunks in the previous three years.
METEORIC RESOURCES NL
- 15 -
DIRECTORS’ REPORT (continued)
Dr Paul Kitto
Qualifications
Experience
Non-Executive Technical Director (appointed 16 October 2019)
B.Sc. (Hons), Ph.D, Dip Ed
Dr Kitto has over thirty years’ experience working within the mining industry having
served on a number of ASX Boards and holding senior level management positions
around the world. Dr Kitto is currently Technical Director for Tietto Minerals (ASX:TIE).
Most recently Dr Kitto was Exploration Manager, Africa for Newcrest Mining Ltd and
prior to that, was Chief Executive Officer and Managing Director of ASX listed Ampella
Mining Ltd from 2008 until 2014, when Ampella was acquired by LSE/TSX listed
Centamin PLC.
Throughout his career, Dr Kitto has led or been part of exploration teams that have
discovered numerous multi-million ounce gold deposits in Africa, Australia and Papua
New Guinea. Dr Kitto has extensive experience associated with a wide range of deposit
types, predominantly associated with gold and base metal deposits
Equity Interests
1,000,000 ordinary fully paid shares.
7,000,000 performance rights subject to various performance milestones.
Directorships held in other
ASX listed entities
Current directorship:
- Non-Executive Director - Tietto Minerals from January 2019
No other listed directorships have been held by Dr Kitto in the previous three years.
Ms Shastri Ramnath
Non-Executive Director (appointed 1 October 2017)
Qualifications
Experience
M.Sc., MBA, P.Geo.
Ms. Shastri Ramnath was appointed as a director of the Corporation in October 2017.
Ms. Ramnath is the President and CEO of Exiro Minerals Corp., a private mineral
exploration company and the Non-Executive Chair of Orix Geoscience Corp., a
geological consulting firm that she co-founded and co-owns. Ms. Ramnath is a
professional geoscientist and entrepreneur with over 20 years of global experience and
has worked in various technical and leadership roles, including FNX Mining, where she
was a key member of the exploration and resource team, and subsequently with
Bridgeport Ventures, a publicly listed company, where she was the President and CEO.
Ms. Ramnath has also raised approximately $25 million in the capital markets for
exploration and is currently a director at Jaguar Mining (TSX:JAG) and 1911 Gold Inc
(TSX-V: AUMB). Ms. Ramnath received a Bachelor of Science degree in geology from
the University of Manitoba, a Master of Science in exploration geology from Rhodes
University (South Africa), and an Executive MBA from Athabasca University.
Equity Interests
300,000 ordinary fully paid shares
1,500,000 options exercisable at $0.024 on or before 28 May 2023.
2,000,000 performance rights subject to various performance milestones.
Directorships held in other
ASX listed entities
No other listed directorships have been held by Ms Ramnath in the previous three
years.
Dr Marcelo De Carvalho
Non-Executive Director (appointed 20 July 2021)
Qualifications
Experience
Ph.D
Dr Carvalho graduated from the State University of Sao Paulo in 1996 with a Bachelor
of Geology and commenced his exploration career in Brazil, working for Anglo Gold
exploring for gold in the Amazon and subsequently with Vale, exploring for base metals.
In 2004, Dr Carvalho moved to Perth (UWA) to complete a PhD in Metalogenesis.
Returning to Brazil he joined Yamana Gold and rose to the role of Greenfields
Exploration Manager before departing in 2012.
METEORIC RESOURCES NL
- 16 -
DIRECTORS’ REPORT (continued)
During that time, Marcelo led an experienced Exploration Team and was part of a
several gold discoveries, taking projects from Project Generation all the way through to
Mining Reserves and Development. With the experience acquired over these years,
Marcelo co- founded his own consultancy company, Target Latin America (TLA) and has
over the past 10 years consulted to explorers from across the globe, selecting and
managing exploration projects in the Americas.
Equity Interests
4,000,000 Performance rights subject to various performance milestones.
Directorships held in other
ASX listed entities
Company Secretary
No other listed directorships have been held by Dr Carvalho in the previous three years.
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.
MEETINGS OF DIRECTORS
During the financial year ended 30 June 2021, the
following director meetings were held:
P. Burke
P. Kitto
S. Ramnath
A. Tunks
Eligible to
Attend
Attended
3
3
3
3
3
3
3
3
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.
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 Directors
Non-Executive Directors
Executive service agreements
Details of remuneration
Share-based compensation
Other information
METEORIC RESOURCES NL
- 17 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
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. 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 2020 annual general meeting, the Company’s remuneration report was passed by the requisite majority of
shareholders (99.5% by poll).
C. Key management personnel
The key management personnel in this report are as follows:
Non-Executive Directors
•
•
•
P Kitto (Non-Executive Director) – appointed 16 October 2019
S Ramnath (Non-Executive Director) – appointed 1 October 2017
M De Carvalho (Non-Executive Director) – appointed 20 July 2021
Executives
•
•
P Burke (Non-Executive Chairman) – appointed Non-Executive Chairman 4 December 2017, transitioned to
Executive Director from 1 July 2020, subsequent to year-end, 22 September 2021, Mr Burke transitioned to the
role of Non- Executive Director
A Tunks (Managing Director) – appointed 10 January 2018
METEORIC RESOURCES NL
- 18 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
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.
30 June 2021
$
30 June 2020
$
30 June 2019
$
30 June 2018
$
30 June 2017
$
Other income
1,313,876
55,543
92,126
43,665
25,123
Net loss attributable to members
of the Company
(9,043,665)
(7,145,567)
(4,450,617)
(6,731,507)
(449,444)
Share price
0.051
0.035
0.025
0.027
0.036
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 Director 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 for
the year ended 30 June 2021 is 9.50%, from 1 July 2021 the rate increased to 10%, and do not receive any other
retirement benefits.
Non-Executive Director 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 2021,
remuneration for a Non-Executive Director was between $40,000 and $150,000 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.
METEORIC RESOURCES NL
- 19 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
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 3 September 2020 shareholder approval was sought and obtained to issue 3,000,000 performance rights to Mr Kitto,
1,000,000 performance rights 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 3 September 2020 shareholder approval was sought and obtained to issue 7,500,000 performance rights to Dr Tunks,
7,500,000 performance rights to Mr Burke.
Contractual arrangement with key management personnel
Executives
Name
Effective date
Term of
agreement
Notice
period
Base
per annum
$
Termination
payments
A Tunks, Executive Director
1-Nov-19
No fixed term
3 months
331,644
3 months
P Burke (2), Executive Director
1-Jul-20
No fixed term
3 months
220,000
3 months
1
Subsequent to year end, on 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director
G. Details of remuneration
Remuneration of KMP for the 2021 financial year is set out below:
Short-term benefits
Post-employment
benefits
Share-based
payments (1)
Total
Salary
Consulting
fees
Other
benefits (2)
Super-
annuation
Termi-
nation
Performance
rights
Options
$
$
$
$
$
$
$
Non-Executive Directors
P Kitto
105,000
15,000
S Ramnath (3)
40,000
Executives
P Burke (4)
A Tunks
Total
247,500
286,644
-
-
-
-
-
-
-
-
45,000
27,231
679,144
15,000
45,000
27,231
-
-
-
-
-
211,000
62,500
468,750
468,750
1,211,000
-
-
-
-
-
331,000
102,500
716,250
827,625
1,977,375
1 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.
2 Other benefits include the provision of an office, travel and car allowance.
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
Subsequent to year end, on 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director.
METEORIC RESOURCES NL
- 20 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
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 2021:
Name
P Burke
P Kitto
S Ramnath
A Tunks
Fully paid ordinary shares
-
1,000,000
300,000
2,303,000
Options
13,000,000
-
1,500,000
15,000,000
Performance rights
15,000,000
7,000,000
2,000,000
15,000,000
Remuneration of KMP for the 2020 financial year is set out below:
Short-term benefits
Post-employment
benefits
Share-based
payments (1)
Total
Salary and
STIP (2)
Consulting
fees
Other
benefits (3)
Super-
annuation
$
$
$
$
Termi-
nation
$
Performance
rights
Options
$
$
Non-Executive Directors
P Burke (4)
P Kitto (5)
S Ramnath (6)
Executives
A Tunks (7)
120,000
100,000
39,500
34,727
360,435
9,999
-
-
Total
554,662
109,999
-
-
-
-
-
-
3,250
3,250
16,191
16,191
-
-
-
-
-
106,716
56,915
14,229
106,716
284,576
-
-
-
-
-
326,716
106,414
48,956
486,592
968,678
1 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.
2 The Salary and STIP includes Short-term incentive payments, paid for successful completion of the Juruena Gold and Nova Astro projects
and successful completion of the November placement, for $70,000 each, paid to both Mr Burke and Dr Tunks.
Subsequent to year end , from 1 July 2020, Mr Burke transitioned to the role of Executive Director.
3 Other benefits include the provision of a mobile phone allowance.
4
5 Dr Kitto was appointed on 16 October 2019.
6 Ms Ramnath, Non-Executive Director, is a Director of Ram Jam Holdings Inc, which received Ms Ramnath’s Director fees during the period.
7 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 for part of the period.
H. Share-based compensation
Performance rights
For the year ended 30 June 2021, the following performance rights were granted, on issue, vested and/or lapsed to KMP:
Grant
date
Grant
value (1)
$
Number
granted
Number of
vested during
the year
Number
cancelled
during the year
Expense recognised
during the year
$
Maximum value
yet to expense
$
P Burke - Non-Executive Chairman (2)
22-Nov-19
325,500
7,500,000
-
03-Sep-20
292,500
7,500,000
7,500,000
P Kitto - Non-Executive Director
22-Nov-19
188,000
4,000,000
-
03-Sep-20
117,000
3,000,000
3,000,000
-
-
176,250
292,500
94,000
117,000
69,534
37,085
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.
Subsequent to year end, on 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director.
2
METEORIC RESOURCES NL
- 21 -
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (Audited) (continued)
Grant
date
Grant
value (1)
$
Number
granted
Number of
vested during
the year
Number
cancelled
during the year
Expense recognised
during the year
$
Maximum value
yet to expense
$
S Ramnath - Non-Executive Director
22-Nov-19
03-Sep-20
47,000
39,000
1,000,000
-
1,000,000
1,000,000
A Tunks – Executive Director
22-Nov-19
325,500
7,500,000
-
03-Sep-20
292,500
7,500,000
7,500,000
-
-
23,500
39,000
176,250
292,500
9,271
-
69,534
-
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.
Performance rights granted on 22 November 2019 vest on the date on which the volume weighted average price of the
Company's shares trading on the ASX over 20 consecutive trading days is at least $0.078.
Performance rights granted on 3 September 2020 vest become exercisable on achievement of any one of the following
milestones:
a. The Company delineates a JORC 2012 Compliant Mineral Resource (Inferred Category or above) of not less than
250,0000z of Au at greater than 2.0 g/t at its Palm Springs Gold Project;
b. The Company delineates a JORC 2012 Compliant Mineral Resource (Inferred Category or above) of not less than
500,0000z of Au at greater than 2.0 g/t, in aggregate, at its Palm Springs Gold Project and/or its Juruena Gold
Project; or
c. The Company commences mining of gold at either its Palm Springs Gold Project or its Juruena Gold Project.
On 3 June 2021 performance rights converted following delineation of a JORC Compliant Mineral Resource of more than
250,000 oz Au at >2.O g/t at Palm Springs Gold Project
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 2021 and 2020 financial years:
Fixed
remuneration
Variable remuneration
STIP
Options
Performance
rights
Fixed
remuneration
Variable remuneration
STIP
Options
Performance
rights
2021
2020
Non-Executive Directors
P Kitto
S Ramnath
Executives
P Burke (1)
A Tunks
36%
39%
35%
43%
-
-
-
-
-
-
-
-
64%
61%
65%
57%
47%
71%
46%
64%
-
-
21%
14%
-
-
-
-
53%
29%
33%
22%
1
Subsequent to year end, on 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director.
The variable remuneration is based on remuneration committee discretion.
METEORIC RESOURCES NL
- 22 -
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
Granted/
Acquired
Exercised
Lapsed
Other
changes
Balance at
year end
Non-Executive Directors
P Kitto
Fully paid ordinary shares
Options
-
-
1,000,000
-
Performance rights
4,000,000
3,000,000
S Ramnath
Fully paid ordinary shares
Options
Performance rights
300,000
1,500,000
1,000,000
-
-
1,000,000
Executives
P Burke (1)
Fully paid ordinary shares
-
Options
13,000,000
-
-
Performance rights
7,500,000
7,500,000
A Tunks
Fully paid ordinary shares
1,303,000
1,000,000
Options
15,000,000
-
Performance rights
7,500,000
7,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
7,000,000
300,000
1,500,000
2,000,000
-
13,000,000
15,000,000
2,303,000
15,000,000
15,000,000
1
Subsequent to year end, on 22 September 2021, Mr Burke transitioned to the role of Non-Executive Director.
I. Other information
Payment of fees
- 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 payable balance of $3,348
(30 June 2020: $2,250).
Purchases of services
The Group acquired the following services from entities in which the group’s key management personnel have an
interest:
- Administrative services
A Director, Dr Tunks, is a Director of Tunks Geo Consulting Pty Ltd. Tunks Geo Consulting have been a partner to Meteoric
in providing geological services and support. All services provided have been on normal commercial terms and
conditions. The amount recognised as an expense during the year was $50,004 (ex GST) (during the prior year: $37,503
(ex GST)). No amount was outstanding at year end.
This concludes the Remuneration Report which has been audited.
METEORIC RESOURCES NL
- 23 -
DIRECTORS’ REPORT (continued)
UNISSUED ORDINARY SHARES
Unissued ordinary shares under option/right at the date of this report are 110,487,719 and broken-down as follows:
Options
-
-
Issued to Directors
Issued to Employees, Consultants and Vendors
29,500,000
80,987,719
Options over ordinary shares can be exercised between $0.024 to $0.100.
Performance rights
-
Issued to Directors, Employees and Advisors
70,500,000
Performance rights may be converted subject to various performance milestones.
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.
METEORIC RESOURCES NL
- 24 -
DIRECTORS’ REPORT (continued)
During the year ended 30 June 2021, the following amounts were paid or payable for non-audit services provided to the
Group by the auditor:
BDO Australia
Taxation services
Tax compliance services
Taxation advice
Other services
Valuation services
Total remuneration for non-audit services
2021
$
2020
$
8,276
7,071
-
15,347
6,695
-
2,500
9,195
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
30 September 2021
METEORIC RESOURCES NL
- 25 -
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 2021, 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, 30 September 2021
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 2021
Other income
Interest income
Other income
Expenses:
Exploration and tenement expenses
Depreciation expense
Share based payments expense
Administrative expenses
Foreign exchange loss
Notes
2021
$
2020
$
6
1,313,870
82
55,461
(6,275,982)
(5,311,670)
(8,344)
(2,727)
(2,920,975)
(590,494)
(1,152,158)
(1,294,854)
(82)
(1,365)
1
2
15
2
2
Loss before income tax expense
(9,043,665)
(7,145,567)
Income tax expense
4
-
-
Loss attributable to the owners of the Company
(9,043,665)
(7,145,567)
Other comprehensive income/(loss):
Items that may be reclassified to profit or loss
Exchange difference on translation of foreign operations
(37,327)
(210,131)
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)
39,335
54,222
Other comprehensive income/(loss) for the year, net of tax
2,008
(155,909)
Total comprehensive loss for year attributable to owners of
Meteoric Resources NL
(9,041,657)
(7,301,476)
Basic and diluted loss per share (cents per share)
19
(0.71)
(0.68)
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 27 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
Notes
2021
$
2020
$
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
Non-Current Assets
Other financial assets
Plant and equipment
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
6
7
9
10
11
3,967,738
247,893
4,215,631
6,512,581
136,097
6,648,678
855,022
113,507
968,529
64,656
48,702
113,358
5,184,160
6,762,036
509,598
18,133
527,731
219,903
5,880
225,783
527,731
225,783
4,656,429
6,536,253
13(a)
13(c)
13(b)
38,738,571
35,196,221
6,125,961
2,504,470
(40,208,103)
(31,164,438)
Total Equity
4,656,429
6,536,253
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 28 -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2021
Issued
Capital
$
Reserves
$
Accumulated
Losses
$
Total
$
Balance at 1 July 2019
24,545,133
1,852,809
(24,018,871)
2,379,071
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
-
-
-
-
(7,145,567)
(7,145,567)
(155,909)
-
(155,909)
(155,909)
(7,145,567)
(7,301,476)
Transactions with owners in their capacity as owners
Contributed equity
Share issue costs
Performance rights/options expense recognised
during the year
11,557,044
-
(905,956)
217,076
-
590,494
-
-
-
11,557,044
(688,880)
590,494
Balance at 30 June 2020
35,196,221
2,504,470
(31,164,438)
6,536,253
Loss for the year
Other comprehensive income for the year
Total comprehensive income/(loss) for the year
-
-
-
-
(9,043,665)
(9,043,665)
2,008
-
2,008
2,008
(9,043,665)
(9,041,657)
Transactions with owners in their capacity as owners
Contributed equity
Share issue costs
Performance rights expense recognised during the
year
4,380,858
-
(838,508)
698,508
-
2,920,975
-
-
-
4,380,858
(140,000)
2,920,975
Balance at 30 June 2021
38,738,571
6,125,961
(40,208,103)
4,656,429
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 29 -
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
Cash flows from operating activities
Cash receipts from customers
Payments for exploration and evaluation expenditure
Payments to suppliers, consultants, and employees
Interest received
Cash flow boost incentive
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant, and equipment
Proceeds from disposal of investments
Net effect of cash consideration and cash acquired as part of
asset acquisition
Payment for tenements acquired
Notes
2021
$
2020
$
1
1
22
-
17,000
(6,172,568)
(4,869,643)
(1,092,521)
(929,954)
6
49,961
82
26,961
(7,215,122)
(5,755,554)
(84,463)
527,869
-
-
(21,527)
-
(799,953)
(50,000)
Net cash provided by/(used in) investing activities
443,406
(871,480)
Cash flows from financing activities
Proceeds from new issues of shares
Proceeds from exercise of options
Proceeds from exercise of share options
Share issue costs
Net cash provided by financing activities
4,032,000
10,892,995
458
199,500
194,400
-
-
(483,208)
4,226,858
10,609,287
Net (decrease) / increase in cash held
(2,544,858)
3,982,253
Cash and cash equivalents at the beginning of the financial year
6,512,581
2,530,299
Effect of exchange rates on cash holdings in foreign currencies
15
29
Cash and cash equivalents at the end of the financial year
6
3,967,738
6,512,581
The accompanying notes form part of these consolidated financial statements.
METEORIC RESOURCES NL
- 30 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
1
OTHER INCOME
Other Income
Interest income
Sale of tenement (1)
Cash flow boost incentive payments (2)
Total other income
2021
$
2020
$
6
1,263,909
49,961
1,313,876
17,000
-
38,461
55,461
Income earned from the sale the Group’s Canadian projects, Midrim and La Force
1
2 Cash flow boosts payments are delivered as credits in the activity statements and equivalent to the amount withheld from wages
paid to employees from March to September 2021.
2
EXPENDITURE
Exploration and tenement expenses
Australian tenements
Canadian tenements (1)
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
Notes
2021
$
2020
$
3,202,860
1,144,330
45,995
3,027,127
6,275,982
(29,075)
4,196,415
5,311,670
137,693
170,317
171,405
131,716
49,810
80,161
337,535
73,521
94,262
79,901
186,029
104,701
46,029
50,621
684,102
49,209
Total administrative expense
1,152,158
1,294,854
Share-based payments expense
Performance rights
Total share-based payments expense
15
2,920,975
2,920,975
590,494
590,494
Foreign exchange loss (2)
82
1,365
1 Prior period includes a reversal of accrued expenditure relating to the Joyce Lake and Lorraine projects which were returned.
2 Foreign exchange loss was recognised upon cash held and payments of Canadian and United States dollar denominated balances.
METEORIC RESOURCES NL
- 31 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
3
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.
Brazil
$
Canada
$
Australia
$
Other
$
Total
$
For the year ended 30 June 2021
Other income
-
1,263,909
-
49,967
1,313,876
Reportable segment loss
(3,027,128)
(45,995)
(3,127,711)
(2,842,832)
(9,043,665)
Reportable segment assets (1)
Reportable segment liabilities
For the year ended 30 June 2020
Other income
163,172
(97,073)
-
-
-
-
2,768
5,018,220
5,184,160
(1,491)
(429,167)
(527,731)
17,000
38,543
55,543
Reportable segment (loss)/profit
(4,196,416)
29,076
(1,144,330)
(1,833,897)
(7,145,567)
Reportable segment assets (2)
79,353
-
2,768
6,679,915
6,762,036
Reportable segment liabilities
(106,574)
(1,038)
(28,396)
(89,775)
(225,783)
1 Other corporate activities includes cash held of $3,889,411.
2 Other corporate activities includes cash held of $2,528,485.
4
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% (2020: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Share based payments
Other
Foreign tax rate differential
2021
$
2020
$
-
-
-
-
-
-
(9,043,665)
(7,145,567)
(2,713,100)
(2,143,670)
876,293
43,723
218,237
177,148
219,138
525,514
Net timing differences not recognised
1,574,847
1,221,870
Total income tax benefit
-
METEORIC RESOURCES NL
-
- 32 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
4
INCOME TAX EXPENSE (continued)
Unrecognised temporary differences
Deferred tax assets and liabilities not recognised relate to the following:
Tax losses
Net deferred tax assets unrecognised
Significant accounting judgment
Deferred tax assets
2021
$
2020
$
7,443,225
6,074,823
7,443,225
6,074,823
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.
5
ASSET ACQUISITION – PALM SPRINGS PROJECT
On 30 June 2020, the Company acquired the Palm Springs project, through the acquisition of 100% of Kimberly Resources
Limited (Kimberly) and Horrocks Enterprises Pty Ltd (Horrocks).
Current assets
Cash and cash equivalents
Trade and other receivables
Non-Current assets
Kimberly
Horrocks
Combined
30 June 2020
$
30 June 2020
$
30 June 2020
$
47
257
-
-
47
257
Exploration and evaluation expenditure
Total assets
373,232
373,536
762,139
1,135,371
762,139
1,135,676
Current Liabilities
Trade and other payables
Total liabilities
59,541
59,541
26,135
26,135
85,676
85,676
Net assets
313,995
736,005
1,050,000
In consideration for 100% equity in Kimberly Resources Limited and Horrocks Enterprises Pty Ltd and the entities it
controls, Meteoric paid $800,000 in cash, and issued 12,500,000 ordinary shares.
METEORIC RESOURCES NL
- 33 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
5
ASSET ACQUISITION – PALM SPRINGS PROJECT (continued)
The fair value of consideration issued on 30 June 2020 was $1,050,000, 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
Note
13
30 June 2020
$
1,050,000
800,000
250,000
1,050,000
In accordance with the Group’s Accounting Policy at Note 27(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.
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 Palm Springs Project was an asset acquisition.
Fair value of asset acquisition
During the prior financial year 12,500,000 ordinary shares were issued and $800,000 in cash, was paid in consideration
for the Kimberly Resources Limited and Horrocks Enterprises Pty Ltd. 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 $250,000.
6
CASH AND CASH EQUIVALENTS
(a) Risk exposure
Refer to Note 16 for details of the risk exposure and
management of the Group’s cash and cash equivalents.
(b) Deposits at call
Deposits at call are presented as cash equivalents if they
have a maturity of three months or less. Refer Note 27(j) for
the Group's other accounting policies on cash and cash
equivalents.
2021
$
2020
$
Cash at bank
3,967,738
6,512,581
METEORIC RESOURCES NL
- 34 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
7
OTHER RECEIVABLES
The Group has no impairments to other receivables or
have receivables that are past due but not impaired.
Refer to Note 16 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.
Other receivables
Prepayments
2021
$
164,244
83,649
247,893
2020
$
76,648
59,449
136,097
8
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
2021 Interest
%
2020 Interest
%
Geocrystal JV – Webb Diamond Project
16%
16.5% with one tenement
held as to 10.5%
Chalice Gold JV - Warrego North Project (1)
49%, diluting
49%, diluting
1
Farm-in agreement in place, with Chalice holding the right to earn in up to 70%.
All exploration and evaluation expenditure is expensed to Statement of Profit or Loss and Other Comprehensive Income
as incurred.
9
OTHER FINANCIAL ASSETS
2021
$
2020
$
Significant accounting estimates, assumptions and
judgements
Non-Current
Financial assets at FVOCI
– equity securities
852,254
61,888
Security deposits
2,768
2,768
855,022
64,656
On disposal of these equity investments, any related balance
within the fair value through other comprehensive income
reserve remain within other comprehensive income.
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 12.
METEORIC RESOURCES NL
- 35 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
10 TRADE AND OTHER PAYABLE
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 16 for details of the risk exposure and
management of the Group’s trade and other receivables.
11 PROVISIONS
The current provision for employee benefits relate to annual
leave which is provided for all employees of the Group in line
with their employment contracts and the balance for the
year ended 30 June 2021 is expected to be settled within 12
months. The measurement and recognition criteria relating
to employee benefits have been included in Note 27(q) to
this report.
2021
$
2020
$
Trade payables
509,598
219,903
2021
$
2020
$
Employee benefits
18,133
5,880
12
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 2021 and 30 June 2020 on a recurring basis:
Level 1
$
Level 2
$
Level 3
$
Total
$
As at 30 June 2021
Financial assets at FVOCI – Equity securities
852,254
As at 30 June 2020
Financial assets at FVOCI – Equity securities
61,888
-
-
-
-
852,254
61,888
There were 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.
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).
METEORIC RESOURCES NL
- 36 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
12
FAIR VALUES OF FINANCIAL INSTRUMENTS (continued)
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.
13
ISSUED CAPITAL AND RESERVES
(a)
Issued capital
2021
Shares
2020
Shares
2021
$
2020
$
Fully paid
1,314,791,539
1,231,314,346
38,738,571
35,196,221
Movements in ordinary share capital during the current and prior financial period are as follows:
Details
Balance at 1 July 2019
Placement
Share-based payment
Exercise of options
Exercise of options
Shares issued
Exercise of options
Exercise of options
Shares issued
Placement
Placement
Share-based payment (Note 16(c))
Placement
Exercise of options
Acquisition of tenements (Note 5)
Less: Share issue costs
Balance at 30 June 2020
Date
Number of
shares
Issue price/share
$
$
20-Aug-19
20-Aug-19
30-Aug-19
30-Aug-19
30-Aug-19
13-Sep-19
11-Oct-19
11-Oct-19
889,003,296
84,375,000
3,737,250
4,500,000
3,000,000
24,300
1,000,000
1,000,000
40,000
29-Nov-19
135,000,000
12-Feb-20
22-Jun-20
22-Jun-20
26-Jun-20
30-Jun-20
700,000
5,934,500
88,000,000
2,500,000
12,500,000
0.032
0.032
0.011
0.024
-
0.024
0.024
-
0.050
0.050
0.016
0.016
0.012
0.020
24,545,133
2,700,000
119,592
49,500
72,000
-
24,000
24,000
-
6,750,000
35,000
94,952
1,408,000
30,000
250,000
(905,956)
1,231,314,346
35,196,221
METEORIC RESOURCES NL
- 37 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
13
ISSUED CAPITAL AND RESERVES (continued)
Details
Date
Number of
shares
Issue price/share
$
$
Balance at 30 June 2020
1,231,314,346
35,196,221
Exercise of options
Exercise of options
Exercise of options
Issue of options
Placement
Exercise of options
Placement
Share based payment
Exercise of options
Exercise of options
Exercise of options
Less: Share issue costs
Balance at 30 June 2021
(b) Accumulated losses
Balance at 1 July
Net loss for the year
Balance at 30 June
(c) Reserves
21-Aug-20
28-Aug-20
28-Aug-20
9-Sep-20
16-Sep-20
18-Sep-20
21-Dec-20
21,Dec-20
7-Jan-21
25-Jan-21
23-Feb-21
2,400,000
1,000,000
1,500,000
-
2,000,000
2,000,000
70,175,439
2,701,754
700,000
700,000
300,000
-
1,314,791,539
0.0240
0.0120
0.0240
0.0000
0.0160
0.0240
0.0570
0.0570
0.0240
0.0240
0.0240
57,600
12,000
36,000
458
32,000
48,000
4,000,000
154,000
16,800
16,800
7,200
(838,508)
38,738,571
2021
$
2020
$
(31,164,438)
(24,018,871)
(9,043,665)
(7,145,567)
(40,208,103)
(31,164,438)
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.
Share-based payments reserve
Balance at 1 July
Issue of options
Performance rights issued/cancelled
Balance at 30 June
Foreign currency translation reserve
Balance at 1 July
Currency translation differences arising during the year
Balance at 30 June
METEORIC RESOURCES NL
Note
15(a)
15(b)
2021
$
2020
$
2,614,240
1,806,670
698,508
2,920,975
217,076
590,494
6,233,723
2,614,240
(171,658)
(37,327)
(208,985)
38,472
(210,130)
(171,658)
- 38 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
13
ISSUED CAPITAL AND RESERVES (continued)
Fair value through other comprehensive income reserve
Balance at 1 July
Movement during the period
Balance at 30 June
Total reserves
Share-based payments reserve
Note
2021
$
2020
$
9
9
61,888
39,335
102,223
7,667
54,222
61,888
6,125,961
2,504,470
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 27(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.
Fair value through other comprehensive income reserve
Movements in investments designated at fair value through other comprehensive income where management have
made the election in accordance with AASB 9: Financial Instruments.
14
DIVIDENDS
No dividends have been declared or paid for the year ended 30 June 2021 (30 June 2020: nil).
15
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:
Note
2021
$
2020
$
As part of share-based payment reserve:
Performance rights issued/cancelled
15(b)
2,920,975
590,494
As part of exploration expense
Shares issued – Asset Acquisition - Palm Springs Project
5
-
250,000
Recognised in equity as a capital raising cost
Shares issued
Options issued to advisors
15(c)
15(a)
154,000
698,508
205,672
217,076
3,773,483
1,263,242
METEORIC RESOURCES NL
- 39 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
15
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
Exercised during the period
Forfeited
Closing balance
Vested and exercisable
2021
2020
Average exercise
price per option
$0.020
$0.100
$0.023
$0.011
$0.059
$0.059
Number of
options
98,500,000
51,087,719
(8,600,000)
(30,500,000)
110,487,719
110,487,719
Average exercise
price per option
$0.019
$0.024
$0.017
-
$0.020
$0.024
Number of
options
98,500,000
12,000,000
(12,000,000)
-
98,500,000
68,500,000
Grant date
Expiry date
Exercise price
2021
Number of options
2020
Number of options
(i)
(ii)
(iii)
(iv)
(v)
(vi)
09-Sep-15
25-Oct-17
25-Oct-17
21-May-19
22-Jun-20
21-Dec20 (1)
(vii)
21-Dec20
09-Sep-20
25-Oct-20
25-Oct-20
20-May-23
20-May-23
21-Dec-23
21-Dec-23
$0.012
$0.011
$0.011
$0.024
$0.024
$0.100
$0.100
-
-
-
47,400,000
12,000,000
35,087,719
16,000,000
1,000,000
500,000
30,000,000
55,500,000
12,000,000
-
-
110,487,719
98,500,000
Weighted average remaining contractual life of options outstanding at the
end of the year:
2.16 years
2.07 years
1 Options granted as free attaching options with placement performed during the year, no value has been assigned to the options.
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 could not 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
- 40 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
15
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
(vii)
$0.100
3.00
107%
0%
0.10%
$0.044
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 cost arising from options issued during the reporting period as part of the share-based payments reserve was
as follows:
Capital raising cost
Options issued to Advisors
(b) Performance rights
2021
$
2020
$
698,508
698,508
217,076
217,076
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
22-Nov-19(1)
21-Nov-21
03-Sep-20(1)
03-Sep-22
16-Sep-20(1)
21-Nov-21
-
-
-
-
Granted
during the
year
Converted
during the
year
Balance at
start of the
year
4,000,000
41,500,000
-
-
-
-
47,500,000
4,000,000
Cancelled
during the
year
(4,000,000)
-
-
-
Balance at
year end
Vested at
year end
-
41,500,000
-
-
47,500,000
47,500,000
4,000,000
-
(4,000,000)
93,000,000
47,500,000
-
-
-
-
-
Total
45,500,000
51,500,000
1 Performance rights granted to Directors, Employees and Advisors.
The weighted average remaining contractual life of performance rights outstanding at 30 June 2021 was 1.30 years
(30 June 2020: 1.30 years).
METEORIC RESOURCES NL
- 41 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
15
SHARE-BASED PAYMENTS (continued)
Key inputs used in the fair value calculation of the performance rights which have been granted during the year ended
30 June 2021 were as follows:
Key inputs
Exercise price
Exercise period
Grant date:
3 Sep 2020 (1)
Nil
2 years from the
date of issue
Vesting conditions
Performance milestones
Value per right
Total fair value
$0.039
$1,852,500
1 Performance rights vest and become exercisable on
achievement of any one of the following milestones:
a. The Company delineates a JORC 2012 Compliant
Mineral Resource (Inferred Category or above) of not
less than 250,0000z of Au at greater than 2.0 g/t at its
Palm Springs Gold Project;
b. The Company delineates a JORC 2012 Compliant
Mineral Resource (Inferred Category or above) of not
less than 500,0000z of Au at greater than 2.0 g/t, in
aggregate, at its Palm Springs Gold Project and/or its
Juruena Gold Project; or
c. The Company commences mining of gold at either its
Palm Springs Gold Project or its Juruena Gold Project.
On 3 June 2021 all performance rights converted following delineation of a JORC Compliant Mineral Resource of more
than 250,000 oz Au at >2.O g/t at Palm Springs Gold Project.
2 Performance rights vest on the date on which the volume
weighted average price of the Company’s shares trading
on the ASX over 20 consecutive trading days achieves at
least $0.078.
The rights have been valued using a barrier up and in
trinomial option pricing model.
Key inputs
Exercise price
Exercise period
Grant date:
16 Sep 2020 (2)
Nil
1.18 years from the
date of grant
Expected share price volatility
Risk-free interest rate
120%
0.21%
Vesting conditions
Performance milestone
Expected dividend yield
Value per right
Total fair value
Nil
$0.035
$140,000
Key inputs used in the fair value calculation of the performance rights which have been granted during the year ended
30 June 2020 were as follows:
3 Performance rights vest on the date on which the volume
weighted average price of the Company's shares trading
on the ASX over 20 consecutive trading days is at least
$0.078.
The rights have been valued using a barrier up and in
trinomial option pricing model.
Key inputs
Exercise price
Exercise period
Expected share price volatility
Risk-free interest rate
Grant date:
22 Nov 2019 (3)
Nil
2 years from the
date of grant
101%
0.76%
Vesting conditions
Performance milestone
Expected dividend yield
Value per right
Total fair value
Nil
$0.047
$1,950,500
As at 30 June 2021, management believe that all other performance and service hurdles will be met and accordingly have
recognised a share-based payment expense over the respective vesting periods.
METEORIC RESOURCES NL
- 42 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
15
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
(c) Share capital to vendors
During the period:
2021
$
2,920,975
2,920,975
2020
$
590,494
590,494
•
•
On 18 December 2020, 1,389,432 shares were issued to CPS Capital Investments Pty Ltd in consideration for capital
raising fees. The fair value of the shares recognised was by direct reference to the fair value of service received.
This was determined by the corresponding invoice received which amounted to $79,198 (including GST of $7,200).
An amount of $71,998 has been recognised in the Statement of Financial Position under capital raising cost.
On 18 December 2020, 1,312,322 shares were issued to Vert Capital Pty Ltd in consideration for capital raising
fees. The fair value of the shares recognised was by direct reference to the fair value of service received. This was
determined by the corresponding invoice received which amounted to $74,802 (including GST of $6,800). An
amount of $68,002 has been recognised in the Statement of Financial Position under capital raising cost.
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 barrier up and in trinomial option pricing
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.
16
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.
METEORIC RESOURCES NL
- 43 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
16
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
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.
Financial Instruments
The Group has the following financial instruments:
Financial assets
Cash and cash equivalents
Other receivables
Security deposits
Financial assets at FVOCI
Financial liabilities
Trade and other payables
(a) Market Risk
2021
$
2020
$
3,967,738
6,512,581
164,244
-
852,254
76,648
2,768
61,888
4,984,236
6,653,885
509,598
509,598
219,903
219,903
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 2021, the Group has
interest-bearing assets, being cash at bank (30 June 2020: 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 2021 and 30 June 2020 the Group did not hold any funds on deposit.
(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).
METEORIC RESOURCES NL
- 44 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
16
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
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.
The Group’s exposure to foreign currency risk at year end, expressed in Australian dollars, was as follows:
USD
$
2021
BRL
$
CAD
$
USD
$
2020
BRL
$
CAD
$
-
-
-
78,328
54,059
1,360
-
97,073
3,348
-
-
-
5,980
1,344
35,399
-
106,574
3,288
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.
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
Impact on post-tax profits and equity
30 June 2021
AUD/BRL + %
AUD/BRL - %
30 June 2020
AUD/BRL + %
AUD/BRL - %
%
10
10
10
10
$
3,531
(3,531)
6,519
(6,519)
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 9).
METEORIC RESOURCES NL
- 45 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
16
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
Sensitivity analysis
following
The
the estimated
table demonstrates
sensitivity to a 10% increase/decrease in the share price
of investments in equity securities, with all variables held
consistent, on post tax profit and equity. These
sensitivities should not be used to forecast the future
effect of movement in the share price of investments on
future cash flows.
A hypothetical change of 10%
in share price of
investments was used to calculate the Group's sensitivity
to price risk as the Company’s estimate of possible rate
movements over the coming year taking into account
current market conditions and past volatility.
(iv) Commodity price risk
Impact on post-tax profits and equity
30 June 2021
+ %
- %
%
10
10
$
85,225
(85,225)
During the prior year the Group did not consider this to
be a material risk/exposure to the Group and have
therefore not undertaken any further analysis.
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.
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
2021
$
2020
$
3,967,738
6,512,581
164,244
-
76,648
2,768
4,131,982
6,591,997
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.
METEORIC RESOURCES NL
- 46 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
16
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
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
2021
$
2020
$
-
-
3,888,004
6,505,256
78,328
1,406
5,931
1,344
3,967,738
6,512,581
109,886
-
-
76,648
54,358
-
-
-
164,244
76,648
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.
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 2021
Trade and other payables
509,598
At 30 June 2020
Trade and other payables
219,903
-
-
-
-
-
-
509,598
509,598
219,903
219,903
METEORIC RESOURCES NL
- 47 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
16
FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
(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.
17
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 4;
Asset acquisition not constituting a business combination – Note 5;
Fair value of assets acquisition – Note 5;
Classification of financial assets through other comprehensive income – Note 9;
Fair value of financial assets through other comprehensive income – Note 9;
Estimation of fair value of share-based payments – Note 15;
Probability of vesting conditions being achieved– Note 15; and
Estimation of contingent liabilities – Note 20.
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.
METEORIC RESOURCES NL
- 48 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
18
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
2021 (1)
$
2020 (2)
$
287,927
844,017
434,767
312,043
423,132
504,131
1,566,710
1,239,306
1 The CA$ commitments have been translated at a rate of 1.0748 to AUD and the BRL commitments have been translated at a rate
of 3.7304 to AUD.
2 The CA$ commitments have been translated at a rate of 1.0661 to AUD and the BRL commitments have been translated at a rate
of 3.7335 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.
Brazil Projects
The Group has no minimum obligations to perform exploration work on tenements held.
19
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)
2021
2020
$ (9,043,665)
$ (7,145,567)
1,277,475,562
1,053,931,073
(0.71)
(0.68)
METEORIC RESOURCES NL
- 49 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
20
(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.
Juruena Gold and Nova Astro Projects
During a prior year, 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 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.
(b) Contingent assets
The Group has no contingent assets as at 30 June 2021 (30 June 2020: 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 18).
METEORIC RESOURCES NL
- 50 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
21
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
2021
$
2020
$
739,144
27,231
-
1,211,000
1,977,375
667,911
16,191
-
284,576
968,678
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 24.
Transactions with related parties
Payment of fees
- 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 payable balance of $3,348
(30 June 2020: $2,250).
Purchases of services
The Group acquired the following services from entities in which the group’s key management personnel have an interest:
- Administrative services
A Director, Dr Tunks, is a Director of Tunks Geo Consulting Pty Ltd. Tunks Geo Consulting have been a partner to Meteoric
in providing geological services and support. All services provided have been on normal commercial terms and conditions.
The amount recognised as an expense during the year was $50,004 (ex GST) (during the period year: $37,503). No amount
was outstanding at the end of the year (30 June 2020: nil).
Share-based payments
Share based payments
During the year the following performance rights were granted on 3 September :
- Dr Tunks was granted 7,500,000 performance rights;
- Mr Burke was granted 7,500,000 performance rights;
- Dr Paul Kitto was granted 3,000,000 performance rights; and
- Ms Shastri Ramnath was granted 1,000,000 performance rights.
Details of the valuation pertaining to the above-mentioned equity instruments are set out in Note 15.
METEORIC RESOURCES NL
- 51 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
21
RELATED PARTY TRANSACTIONS (continued)
Transactions with related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
There were no other related party transactions during the year.
22
RECONCILATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Loss for the period
Add/(less) non-cash items:
Depreciation
Asset acquisition
Share based payments - Directors and Consultants
Share-based payments - Vendors
Foreign exchange (loss)/gain on foreign operations
Add/(less) items classified as investing/financing activities:
Receipt from sale of tenement
Palm Springs Project acquisition
Acquisition of tenements
Changes in assets and liabilities during the financial year:
Decrease/(increase) in receivables
(Decrease)/increase in payables
Increase/(decrease) in employee provision
Note
2021
$
2020
$
(9,043,665)
(7,145,567)
5
15
5
18,347
-
2,920,975
14,000
7,303
250,000
590,494
(50,982)
(210,159)
(1,263,948)
(17,000)
-
-
799,953
50,000
(111,796)
58,903
289,695
(162,361)
12,253
5,880
Net cash outflow from operating activities
(7,215,122)
(5,772,554)
(a) Non-cash investing and financing activities
Acquisition of Palm Springs Project
Note
5
2021
$
2020
$
-
250,000
METEORIC RESOURCES NL
- 52 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
23
EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to year end:
- On 9 July 2021, the Company announced that it had issued 16,500,000 ordinary fully paid shares on conversion
of performance rights,
- On 20 July 2021, the Company announced that Dr Marcelo De Carvalho has been appointed to the board, and
- On 4 August 2021, the Company announced that it had issued 3,000,000 ordinary fully paid shares on
conversion of performance rights.
- On 24 August 2021, the Company announced that it had issued 3,000,000 ordinary fully paid shares on
conversion of performance rights.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not impacted financially on the Company
up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
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.
24
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 27(a):
Country of
incorporation
2021
Equity holding
2020
Equity holding
Name of entity
Cobalt Canada Pty Ltd
Resources Meteore Sub Inc.
A.C.N 632 444 065
A.C.N 632 447 511
Batman Minerals Pty Ltd
Australia
Canada
Australia
Australia
Australia
Sunny Skies Investments Limited
British Virgin Islands
Meteoric Brasil Mineracao Ltda
Juruena Mineracao Ltda
Lago Dourado Mineracao Ltda
Kimberly Resources Limited (1)
Horrocks Enterprises Pty Ltd (1)
Brazil
Brazil
Brazil
Australia
Australia
1 Acquired on 30 June 2020 as part of the asset acquisition, see Note 5.
100%
100%
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
METEORIC RESOURCES NL
- 53 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
25
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.
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) BDO Australia
Audit and assurance services
Audit and review of financial statements
47,402
39,531
2021
$
2020
$
Taxation services
Tax compliance services
Taxation advice
Other services
Valuation services
Total remuneration for BDO
Total fees
26
PARENT ENTITY INFORMATION
The following information relates to the parent entity,
Meteoric Resources NL as at 30 June 2021. The
information presented here has been prepared using
consistent accounting policies as presented
in
Note 27.
(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 2021 or 30 June 2020.
(c) Contingent liabilities of the parent entity
Other than those disclosed in Note 20, the parent
entity did not have any contingent liabilities as at
30 June 2021 or 30 June 2020.
(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 2021 or 30 June 2020.
8,726
7,071
-
63,199
63,199
6,695
-
2,500
48,726
48,726
Company
2021
$
2020
$
Financial position
Current assets
3,837,940
6,606,993
Total assets
5,087,087
6,655,293
Current liabilities
430,658
119,040
Total liabilities
430,658
119,040
Equity
Contributed equity
38,738,571
35,196,389
Reserves
6,334,947
2,676,129
Accumulated losses
(40,417,089)
(31,336,265)
Total equity
4,656,429
6,536,253
Financial performance
Loss for the year
(9,080,824)
(7,355,726)
Total comprehensive loss
(9,080,824)
(7,355,726)
METEORIC RESOURCES NL
- 54 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
27
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 2021 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 judgments
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 18.
It also
New and amended standards adopted by the Group
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.
Other amendments 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
Certain new accounting standards and interpretations have been
published that are not mandatory for 30 June 2021 reporting
periods and have not been early adopted by the group. The
group's assessment of the impact of these new standards and
interpretations is set out below. These standards are not
expected to have a material impact on the entity in the current
or
future
transactions.
future reporting periods and on
foreseeable
Accounting policies
In order to assist in the understanding of the financial statements,
the following summary explains the principal 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 26 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
METEORIC RESOURCES NL
- 55 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
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
rates
(unless
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
transactions); and
is not a
•
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
in the countries where the company’s
reporting period
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
It establishes provision where
subject to
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
METEORIC RESOURCES NL
- 56 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
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.
its wholly owned Australian
Meteoric Resources NL and
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
the extent that
in other
comprehensive income or directly in equity. In this case, the tax
is also recognised in other comprehensive income or directly in
equity, respectively.
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.
(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
recognised for the asset in prior years. Such reversal is
impairment
last
METEORIC RESOURCES NL
- 57 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
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
The Group classifies
categories:
its financial assets
in the following
•
•
those to be measured subsequently at fair value (either
through OCI or through profit or loss); and
those to be measured 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
for the equity
fair value through other
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.
(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
15.
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.
METEORIC RESOURCES NL
- 58 -
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2021
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.
If the terms of an equity-settled award are modified, as a
minimum, an expense is recognised as if the terms had not been
for any
modified. An additional expense
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.
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.
Benefits to Vendors
(t) Contributed Equity
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”).
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.
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.
(u) Dividends
The cost of these equity-settled transactions is recognised over
the period in which the service was received.
No dividends were paid or proposed during the year.
(v) Comparatives
(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
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
information for the parent entity, Meteoric
The financial
Resources NL, disclosed in Note 26 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
- 59 -
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 2021 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 2021 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
30 September 2021
METEORIC RESOURCES NL
- 60 -
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 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, 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 2021 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 (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We 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.
Performance Rights
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 15 (b), the Group
recognised a share-based payment expense
in the Statement of Profit or Loss and Other
Comprehensive Income for the year ended
30 June 2021 due to the issue of
performance rights to eligible directors and
advisors.
Share-based payments are a complex
accounting area and due to the judgemental
estimates used in determining the fair value
of performance rights in accordance with the
Accounting Standards, we consider
management’s calculation of the share-
based payment expense to be a key audit
matter.
Our audit procedures included, but were not limited
to the following:
•
Examining market announcements and board
minutes to determine whether all the new
performance rights granted during the year
were accounted for;
• Reviewing the relevant agreements to obtain
an understanding of the contractual nature of
the performance rights arrangements;
• Reviewing management’s determination of
the fair value of the performance rights
granted, considering the appropriateness of
the valuation models used and assessing the
valuation inputs;
•
•
•
Involving our valuation specialists to assess
the reasonableness of management’s fair
value calculation;
Evaluating management’s assessment of the
timing of meeting the performance
conditions attached to the performance
rights; and
Evaluating the adequacy of the disclosures in
respect of the accounting treatment of the
performance rights in Note 15(b) to the
financial statements, including significant
judgements involved.
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 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
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:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 17 to 23 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Meteoric Resources NL, for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth, 30 September 2021
TENEMENT DETAILS
As at 30 June 2021
Tenement
Nature of Interest
Project
Equity (%)
Australian Tenements
E80/4407
E80/4815
E80/5121
E80/5471
E80/5496
E80/5499
EL23764
M80/0106
M80/0315
M80/0418
P80/1766
P80/1768
P80/1839
P80/1854
P80/1855
E80/4856
E80/4874
E80/4976
E80/5059
Granted
Granted
Granted
ANGAS HILL (Webb JV)
LAKE MACKAY (Webb JV)
WEBB DIAMONDS (Webb JV)
Application
WEBB DIAMONDS (Webb JV)
Application
WEBB DIAMONDS (Webb JV)
Application
WEBB DIAMONDS (Webb JV)
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
WARREGO NORTH
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
PALM SPRINGS
16%
16%
16%
16%
16%
16%
49%
97%
97%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement
Various
Various
Various
517797 - 517963
Canadian Tenements
Province
Ontario
Ontario
Ontario
Ontario
Project
IRON MASK
MULLIGAN
MULLIGAN EAST
BEAUCHAMP
Equity (%)
100%
100%
100%
100%
METEORIC RESOURCES NL
- 65 -
TENEMENT DETAILS
As at 30 June 2021
Tenement
Province
Project
Equity (%)
Brazilian Tenements
Juruena Project
866.079/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.081/2009
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA BANDEIRANTES/ MT
866.082/2009
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA BANDEIRANTES/ MT
866.084/2009
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
866.778/2006
Granted Exploration Permit
NOVA BANDEIRANTES/ 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
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
866.513/2013
Granted Exploration Permit
COTRIGUAÇU/MT, NOVA BANDEIRANTES/ MT
100%
Nova Astro Project
867.246/2005
Granted Exploration Permit
NOVA BANDEIRANTES/ MT
100%
METEORIC RESOURCES NL
- 66 -
OTHER INFORMATION
The following additional information is required by the Australian Securities Exchange Ltd in respect of listed public
companies only.
Information as at 17 September 2021
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
84
23
243
1,812
1,372
3,534
14,469
62,529
2,138,663
87,288,139
1,247,787,739
1,337,291,539
Unmarketable Parcels
The number of shareholdings held in less than marketable parcels is 623.
Substantial shareholders:
There were no shareholders who hold 5% or more of the issued capital of the Company as per substantial shareholder
notices lodged with ASX.
Twenty largest shareholders – Quoted fully paid ordinary shares:
Shareholder Name
1
2
3
KITARA INVESTMENTS PTY LTD
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