2021
ANNUAL
REPORT
CORPORATE DIRECTORY
Directors
Mr Andrew Woskett
Managing Director
Dr Antonio Belperio
Non-Executive Director
Mr George McKenzie
Non-Executive Director
Dr Roger Higgins
Non-Executive Chairman
Company Secretary
Mr Varis Lidums
Registered Office
C/- O’Loughlins Lawyers
Level 2, 99 Frome Street
Adelaide SA 5000
Principal Place of Business
Minotaur Exploration Limited (ASX: MEP)
Level 1, 8 Beulah Road
Norwood SA 5067
Tel: (+61 8) 8132 3400
Fax: (+61 8) 8132 3499
minotaurexploration.com.au
ACN 108 483 601
Share Register
Computershare Investor Securities Pty Ltd
Level 5, 115 Grenfell Street
Adelaide SA 5000
Legal Advisers
O’Loughlins Lawyers
Level 2, 99 Frome Street
Adelaide SA 5000
Bankers
National Australia Bank
22-28 King William Street
Adelaide SA 5000
Auditors
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
Adelaide SA 5000
This annual report covers both Minotaur Exploration Ltd (ABN 35 108 483 601) as
an individual entity and the consolidated group (‘Group’) comprising Minotaur
Exploration Ltd and its subsidiaries. The Group’s functional and presentational
currency is Australian dollars
The description of the Group’s operations and of its principal activities is included in
the review of operations and activities in the Directors’ Report on pages 7 to 19. The
Directors’ Report is not part of the financial report.
Annual Report 2021
2
2020/2021 Highlights
Chairman’s Review
Managing Director’s Report
Directors’ Report
Remuneration Report
Financial Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
CONTENTS
3
4
5
7
13
20
20
21
22
23
25
26
61
62
65
Minotaur Exploration
3
Peake and Denison Project, SA, accessing area to conduct cultural heritage survey with Arabana traditional owners
Annual Report 2021
4
Continuing disruptions to cross border travel have affected the whole population but thankfully
have been far less impactful on Minotaur than on families and many other businesses. Minotaur
has been able to sustain a degree of momentum across its exploration portfolio and is seeing
positive outcomes at Breena Plains, Pyramid and Peake and Denision projects.
The Company agreed to acquire Sandfire Resources’ tenements in the Cloncurry-Cannington
region which, once finalised, will place Minotaur in a strong land position in a prolific base
metals belt and bring full ownership of the Altia mineral resource. Nearby, preparations are
underway to resume drilling at Jericho in the new year, the motivation being management’s
strong view that the mineral resource can be expanded and upgraded through directed drilling.
We welcome the news that AIC Mines Limited (ASX: A1C) has purchased outright the Eloise
mine operation. The juxtaposition of the mine and Minotaur’s tenure highlights the base metal
enrichment of the area and points to continuing prospectivity.
Minotaur, through 2022, will be well positioned to pursue organic growth through asset
improvement. Applying well-honed skills and experience in the region Minotaur is perfectly
capable of determining an investment case for resource expansion and advancing Jericho
development scenarios.
Joint venture partner Andromeda Metals Ltd (ASX: ADN) continues to develop a definitive
feasibility study (DFS) for the Great White kaolin deposits in South Australia, due by the end of
2021. Andromeda achieved its ultimate 75% interest through total investment of $6 million by
late 2020 and Minotaur began contributing its 25% share of project expenses from that time.
Andromeda, as marketing agent for the joint venture, secured significant binding off-take
contracts for Great White refined products, those intrinsic to DFS assumptions and projections.
Your Board will assess the DFS closely and determine the best course of action thereafter, in the
Company’s interests.
Directors appreciate the interactive engagement by shareholders and keen interest in MEP
prospects.
The Company’s financial position is sound with $5.1 million cash held as at 30 June 2021
enabling an active field program and continuing involvement in the Great White project.
Dr Roger Higgins
Chairman
CHAIRMAN’S REVIEW
Minotaur Exploration
5
MANAGING DIRECTOR’S REPORT
Joint venture activity at the Jericho deposit was put on hold while similar prospects were slated
for closer examination. Work on the Eloise joint venture (OZ Minerals 70%; Minotaur 30%)
occurred intermittently as permitted by cross-border restrictions. OZ Minerals funded new
JV ground EM surveys and funded similar work on the new venture with Sandfire Resources
(ASX: SFR) to explore Sandfire’s extensive Breena Plains tenement group adjacent to the Eloise
JV ground. Results from Breena Plains revealed a significant basement conductor named ‘The
Gap’, exhibiting strong geophysical similarities to the Jericho system pre-discovery. A proof of
concept drilling campaign is arranged to test the feature.
Minotaur and Sandfire agreed that Minotaur shall purchase Sandfire’s tenement interests in
the region, including Breena Plains. The transaction includes Sandfire’s 60% interest in the Altia
zinc-lead deposit situated 3km west of Jericho and 4km south-west of the Eloise copper mining
operation. For Minotaur, consolidation of assets in this area of prolific mineralisation provides
an organic growth pathway. These transactions create, for Minotaur, a dominant regional land
holding in highly prospective terrane and interests in significant mineral resource assets at
Jericho, Altia and Sandy Creek, all of which deserve further exploration attention. Minotaur is
particularly of the view that the Jericho Cu-Au resource model can be substantially improved
through targeted drilling within the current block model.
Sale of the nearby Eloise mine to AIC Mines1 (ASX: A1M) crystalises valuation of the Eloise
mining operation which, having been in private ownership for decades, has not been visible to
copper minded mining investors, until now. Minotaur recognises this as beneficial as it provides
a direct yardstick against which the Jericho deposit can be publicly measured and assessed
for development viability. AIC Mines’ Prospectus details operating and orebody characteristics
for Eloise, immediately relevant to Jericho given proximity, similar mineralogy, geology
and geochemistry. As Minotaur works the Jericho resource upwards the task of building a
development case can be supported by reference to the Eloise operation and production history.
The Highlands project north-west of Mt Isa, Queensland is to be vended into an initial public
offering by Larvotto Resources for a mix of cash and shares, subject to listing in FY2022.
1
Refer AIC Mines report to ASX Transformational acquisition, AIC to acquire the Eloise Copper Mine; 31
August 2021
Annual Report 2021
6
South of Charters Towers, Queensland, at the Windsor project IP trials in October 2020 were
inconclusive causing a review of targeting methods. A groundwater copper isotope collection
and analysis approach was adopted and is underway in collaboration with James Cook University.
South of Townsville, Queensland, Minotaur acquired the Pyramid Gold Project where past
explorers proved the presence of several gold mineralised features along the Gettysberg fault
corridor. The Gettysberg occurrence had been successfully drilled, returning an impressive array
of high-grade gold assays but not satisfactorily pursued. Minotaur’s initial drilling confirmed
historic grades and intersections and also identified several new IP chargeability responses,
suggestive of sulphide development at depth. Arrangements to dill test each anomaly are
in hand.
Andromeda Metals Limited’s (ASX: ADN) expenditure on Minotaur’s Great White Kaolin project
culminated in Andromeda attaining its 75% ceiling interest in the joint venture tenement
assets. Andromeda (as manager and operator of the joint venture) has forecast publication of
a definitive feasibility study (DFS) for the project by end calendar 2021. Minotaur expects that
see-through value to Minotaur’s shareholders for its 25% interest will be evident upon release of
the DFS. Minotaur is maintaining its project interest by contributing proportionally to DFS phase
expenses.
In South Australia, Minotaur’s Peake and Denison project now has drill locations determined and
land access and Native Title cultural heritage clearances obtained in readiness for drilling.
Minotaur last raised new capital in August 2020 and deployed that cash diligently during the
FY2021 year, retaining $5.1 million at 30 June 2021.
Sunset at Peake and Denison Project, SA
Minotaur Exploration
7
Your directors present their report on the Consolidated Group for the financial year ended 30
June 2021.
Director Details
The names of the directors in office at any time during, or since the end of, the year are:
Mr Andrew Woskett
Managing Director
Dr Roger Higgins
Non-Executive Chairman
Mr George McKenzie
Non-Executive Director
Dr Antonio Belperio
Non-Executive Director
Directors have been in office since the start of the financial year to the date of this report unless
otherwise stated.
Review of Operations
Corporate
The 2021 financial year concluded with the Group holding $5.1 million in cash and term deposits
plus a minor equity holding in ASX listed explorer TMZ.
Minotaur’s share of the Great White kaolin project reduced to 25% as a result of Andromeda
Metals’ earn-in expenditure culminating at $6 million in December 2020. Andromeda and
Minotaur are now contributing funds, on a 75/25 proportional basis, to a definitive feasibility
study into the Great White kaolin deposit (formerly known as the Poochera kaolin project).
Andromeda expects the DFS to be finalised by the end of calendar 2021, following which the
joint venture partners will consider advancing to a bankable feasibility study.
Exploration
Exploration activity centred on copper-gold prospects in Queensland.
A joint operation between Minotaur, OZ Minerals (OZL) and Sandfire Resources (tenement
holder) was the primary focus of work in the Cloncurry district, funded by OZ Minerals. A series
of ground EM surveys were completed, identifying basement exploration targets at Murphy’s
Tank and Garnet Creek. The work is ongoing.
For the Eloise JV (OZL 70%; MEP 30%) Minotaur carried out several ground EM surveys to locate
basement conductive responses. Two anomalies were detected late in the reporting period and
are to be followed up. No work was done on the Jericho project (OZL 80%; MEP 20%).
A new gold project, Pyramid, was acquired during the financial year. Pyramid is 180km south-
west of Townsville and exhibits gold mineralisation at several discrete locations. Minotaur drill
tested the Gettysberg prospect, confirming the attractive tenor of historic drill results. Ground IP
mapping of this and nearby zones showed unresolved sulphide anomalism; to be investigated in
the coming financial period.
The Windsor VMS tenement group south of Charters Towers is a technically challenging terrane
due to extensive surficial cover over basement. A new technique will be trialed analysing copper
isotopes in groundwater to detect the presence of basement mineralisation, against which
ground geophysics might be correlated.
In South Australia, 750km north of Adelaide, Minotaur has been developing the case for a
‘frontier’ style exploration effort to locate new IOCG mineralisation, postulated within rock types
akin to Ernest Henry in Queensland. The Peake and Denison project shows, through ground and
aerial geophysics, several basement candidates - some of which will be drill tested to gain ‘proof
of concept’.
DIRECTORS’ REPORT
Annual Report 2021
8
Information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Dr A. P. Belperio, who is a director of the Company and a Fellow of the Australasian
Institute of Mining and Metallurgy. Dr A. P. Belperio has a minimum of 5 years experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking,
to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Dr A. P. Belperio consents to the inclusion in the report
of the matters based on his information in the form and context in which it appears.
Research & Development
Natural Nanotech Pty Ltd (NNT), a company equally owned by Minotaur and Andromeda Metals,
was incorporated to pursue technology developments and commercial opportunities, initiating
its first R&D project in July 2020 through the University of Newcastle. Two significant R&D
projects are underway: 1) assessing halloysite as precursors for adsorbent nanomaterials and; 2)
a pilot plant scale demonstration of CO2 capture using functionalised halloysite.
NNT’s business objective is to develop halloysite dependent intellectual property applicable to
real world pollution and energy challenges, from which NNT may derive licensing and/or royalty
revenues.
Business strategies and prospects
The Company remains focussed on base metals exploration, primarily copper, but has expanded
its remit to include gold through purchase of the Pyramid tenement group. The minerals sector
has benefitted from resurgent investor appetite for ‘grass roots’ exploration over the past year,
often rewarded through notable discoveries or commodity price improvement. The imperative
to search for new ore bodies intensifies as existing operations deplete their reserves while
global demand grows. Minotaur considers its land position within Australia represents credible
exposure to discovery success and reinforcement of the Company’s position in the Cloncurry
region is being actively assessed.
As the Great White project approaches delivery of the definitive feasibility study at year end the
Company will evaluate the benefits of its ongoing position in the joint venture. Minotaur’s 25%
contribution to DFS expenses through FY2021 was $1 million. The Company acknowledges the
work effort being expended by Andromeda Metals towards the DFS objective.
Exploration Manager Glen Little and Senior Geologist Andy Burtt at the Pyramid Project, QLD
Minotaur Exploration
9
Names, qualifications, experience and special responsibilities
Dr Antonio Belperio, BSc (Hons), PhD, FAusIMM
Non-Executive Director
Dr Belperio has an Honours Degree in Geology from the University of Adelaide, a PhD from
James Cook University, and a diverse background in a wide variety of geological disciplines,
including marine geology, environmental geology and mineral exploration. He has over 35 years’
experience in university, government and the mineral exploration industry. Dr Belperio is also a
former director of Thomson Resources Ltd (ASX: TMZ; Resigned 2019), a public company listed
on the ASX.
Dr Roger Higgins, BE (Hons), MSc, PhD, FIEAust, FAusIMM
Non-Executive Chairman
Dr Higgins has over 40 years’ experience in mine management, project development and
sustainability, and is a current director of Newcrest Mining Ltd (ASX: NCM) and Worley Ltd (ASX:
WOR), and a former director of Metminco Ltd (resigned 2019) and Blackthorn Resources Ltd
(resigned 2014), all public companies listed on the ASX. He is also a current director and a former
Managing Director of Ok Tedi Mining Limited in Papua New Guinea. As Chairman of Minotaur
Exploration Ltd, he is responsible for the management of the board as well as the general
strategic direction of the Company.
Mr George McKenzie, BA LLB (cum laude), FAICD, MtB (Order of Merit)
Non-Executive Director
George McKenzie is a commercial lawyer with over 25 years’ experience representing many of
South Australia’s explorers and mine developers. He is an honorary life member, and was a long
standing Councillor of the South Australian Chamber of Mines and Energy Inc. (SACOME), having
served as Vice-President and member of the Executive Committee of the Chamber. Mr McKenzie
was also a member of the Minerals and Energy Advisory Council which advised the Minister of
Mineral Resources and Energy on strategic issues, from inception of the Council in 2000 until 30
June 2019.
Mr Andrew Woskett, B Eng, M Comm Law
Managing Director
Andrew Woskett has over 35 years’ project and corporate experience in the mining industry.
He held senior development responsibility roles for a variety of Australian mining landmarks
in gold, copper, iron ore and coal. He has had several roles as managing director of resource
development companies culminating in his tenure as managing director of Minotaur since early
2010. Andrew is a Fellow of the Australasian Institute of Mining and Metallurgy.
Mr Varis Lidums, BEc, LLB, CA, MBA
Company Secretary
Mr Lidums is a Chartered Accountant and qualified lawyer with over 25 years’ experience in
the resources, energy and accounting industries. He has held senior roles with BP, Shell and
ConocoPhillips and was a Councillor of the South Australian Chamber of Mines and Energy Inc.
(SACOME). Mr Lidums has been the Commercial Manager at Minotaur Exploration Ltd since 1
March 2011.
Operating results
The consolidated loss of the Group after providing for income tax amounted to $2,780,295
(2020: $3,119,741).
DIRECTORS’ REPORT
Annual Report 2021
10
Interests in the shares and options of the Company and related bodies corporate
As at the date of this report, the interests of the directors in office in the shares and options of
Minotaur Exploration Limited were:
Number of ordinary
shares
Number of options
over ordinary shares
Antonio Belperio
3,077,036
3,200,000
Roger Higgins
3,464,159
4,000,000
George McKenzie
1,059,100
3,200,000
Andrew Woskett
1,640,000
7,800,000
Dividends paid or recommended
No dividends were paid or declared since the start of the financial year. No recommendation for
payment of dividends has been made.
Principal activities
The principal activities of the Consolidated Group during the financial year were:
•
To secure new tenements with potential for mineralisation; and
•
To evaluate results achieved through surface sampling, drilling and geophysical surveys
carried out during the year.
Early morning campfire at Peake and Denison project, SA
Minotaur Exploration
11
Risk management
The Group takes a proactive approach to risk management. The Board is responsible for ensuring
that risks, and also opportunities, are identified on a timely basis and that the Group’s objectives
and activities are aligned with the risks and opportunities identified by the Board.
The Group believes that it is crucial for all Board members to be a part of this process, and as
such the Board has not established a separate risk management committee other than the Audit,
Business Risk and Compliance Committee.
The Board has a number of mechanisms in place to ensure that management’s objectives and
activities are aligned with the risks identified by the Board. These include the following:
•
Board approval of a strategic plan designed to meet stakeholders’ needs and manage
business risk.
•
Implementation of Board approved operating plans and budgets and Board monitoring
of progress against these budgets, including the establishment and monitoring of
performance indicators of both a financial and non-financial nature.
Significant changes in the state of affairs
On 3 September 2020 the Company issued 81,000,000 new ordinary shares through a Share
Placement followed by an additional 42,313,650 new ordinary shares though a Share Purchase
Plan on 28 September 2020.
On 20 August 2020 the Company announced it had entered into a binding Term Sheet to acquire
100% of a tenement package known as the Pyramid project, located approximately 180km south
from Townsville in Northern Queensland. On 17 November 2020 the Company announced it had
successfully completed the acquisition of the Pyramid project.
No other significant changes occurred during the year.
DIRECTORS’ REPORT
Large gypsum crystals growing in the soil, Peake and Denison Project, SA
Annual Report 2021
12
Date options granted
Expiry date
Exercise price of shares
$
Number under
option
Unlisted
12/12/2018
31/12/2021
0.0525
1,450,000
29/11/2019
28/11/2022
0.1000
11,400,000
29/11/2019
28/11/2022
0.1200
6,800,000
03/03/2020
28/11/2022
0.1000
1,900,000
03/03/2020
28/11/2022
0.1200
1,700,000
05/03/2021
31/01/2024
0.2000
12,000,000
35,250,000
Environmental regulations
The Group is aware of its responsibility to impact as little as possible on the environment and,
where there is any disturbance, to rehabilitate sites. During the year the majority of work carried
out was in Queensland and the Group followed procedures and pursued objectives in line
with guidelines published by the Queensland Government. These guidelines are quite detailed
and encompass the impact on owners and land users, heritage, health and safety and proper
restoration practices.
The Group adheres to regulatory guidelines, and any local conditions applicable, both in South
Australia and elsewhere. The Group has not been in breach of any State or Commonwealth
environmental rules or regulations during the period.
Events since the end of the reporting period
No matter or circumstance has arisen since 30 June 2021 that has significantly affected the
Group’s operations, results or state of affairs, or may do so in the future.
Unissued shares under option
Unissued ordinary shares of Minotaur Exploration Limited under option at the date of this report
are:
Shares issued as a result of exercise of options
During the year and up to the date of this report, the Company issued 7,296,123 ordinary shares
as a result of the exercise of options (2020: Nil).
Indemnification and insurance of directors and officers
To the extent permitted by law, the Company has indemnified (fully insured) each director and
the secretary of the Company for an annual premium of $14,209. The liabilities insured include
costs and expenses that may be incurred in defending civil or criminal proceedings (that may
be brought) against the officers in their capacity as officers of the Company or a related body,
and any other payments arising from liabilities incurred by the officers in connection with such
proceedings, other than where such liabilities arise out of conduct involving a wilful breach of
duty by the officers or the improper use by the officers of their position or of information to gain
advantage for themselves or someone else or to cause detriment to the Company.
Minotaur Exploration
13
Remuneration report – Audited
This report outlines the remuneration arrangements in place for directors and other key
management personnel of Minotaur Exploration Limited in accordance with the requirements
of the Corporations Act 2001 (the Act) and its regulations. This information has been audited as
required by section 308(3C) of the Act.
Introduction
The remuneration report details the remuneration arrangements for key management personnel
who are defined as those persons having authority and responsibility for planning, directing and
controlling the major activities of the Company and the Group, directly or indirectly, including
any director (whether executive or otherwise) of the Parent. These are as follows:
Dr Antonio Belperio
Non-Executive Director
Dr Roger Higgins
Non-Executive Chairman
Mr George McKenzie
Non-Executive Director
Mr Andrew Woskett
Managing Director
Mr Varis Lidums
Commercial Manager and Company Secretary
Remuneration philosophy
Executive remuneration policies and structures
The Board is responsible for determining remuneration policies applicable to directors and
senior executives of the Group. The broad policy is to ensure that remuneration properly reflects
the individual’s duties and responsibilities and that remuneration is competitive in attracting,
retaining and motivating people with appropriate skills and experience. When determining
remuneration the Board has regard to the Group’s financial performance and capacity.
How executive remuneration policies and structures are determined
Decisions about executive remuneration are guided by the following four principles:
•
Fairness: provide a fair level of reward to all employees
•
Outcomes: ensure correlation between reward and performance
•
Alignment: as far as possible align employee and shareholder interests
•
Corporate Culture: facilitate leadership standards that create a culture aligned to
shareholders’ interests.
Fixed remuneration
Fixed remuneration consists of base salary, superannuation and other non-monetary benefits
and is designed to reward for:
•
The scope of the executive’s role;
•
The executive’s skills, experience and qualifications; and
•
Individual performance.
It is set with reference to comparable roles in similar companies.
DIRECTORS’ REPORT
Annual Report 2021
14
Employment contracts
The employment conditions of the Managing Director, Mr Andrew Woskett, are formalised in a
consultancy agreement. Mr Woskett commenced as a consultant to Minotaur on 1 March 2010
and his annual retainer is $355,675 per annum, exclusive of GST. The Company may terminate
the consultancy agreement without cause by providing three (3) months written notice and
paying a severance amount equal to nine (9) months’ retainer. Termination payments are
generally not payable on resignation or dismissal for serious misconduct. In the instance of
serious misconduct the Company can terminate the agreement at any time.
The employment conditions of the Commercial Manager and Company Secretary (effective 1
July 2016), Mr Varis Lidums, are formalised in a contract of employment. Mr Lidums commenced
employment on 1 March 2011 and his gross salary, inclusive of the 9.5% superannuation
guarantee as at 30 June 2021, is $215,000 per annum. The Company may terminate the
employment contract without cause by providing one (1) month written notice or making
payment in lieu of notice, based on the annual salary component. Termination payments are
generally not payable on resignation or dismissal for serious misconduct. In the instance of
serious misconduct the Company can terminate employment at any time.
The table below details the conditions under which non-executive directors of the Company are
remunerated:
Non-Executive Directors
Annual Retainer
$
Dr Roger Higgins
Non-Executive Chairman
90,000
Dr Antonio Belperio
Non-Executive Director
45,000*
Mr George McKenzie
Non-Executive Director
45,000
* Dr Belperio also provides consulting services to the Group as and when required. The total
amount paid to Dr Belperio, in addition to his director’s fees detailed above, relating to
consulting services for the year was $26,460. Consulting services are paid on an hourly basis and
agreed with the Managing Director.
As part of the Company’s COVID-19 response measures, all directors and key management
personal received a 20% temporary reduction in remuneration from 1 April 2020 to 31 August
2020. Payment of Non-Executive directors’ fees for the June 2020 quarter was deferred to
October 2020.
Key management personnel remuneration and equity holdings
The Board currently determines the nature and amount of remuneration for board members
and senior executives of the Group. The policy is to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component and offering
specific long-term incentives.
The executive directors and other executives receive a superannuation guarantee contribution
when required by law, which is 9.5% as at 30 June 2021, and do not receive any other retirement
benefits.
Some individuals, however, may choose to sacrifice part of their salary to increase payments
towards superannuation.
All remuneration paid to directors and other key management personnel is expensed as
incurred. Key management personnel are also entitled to participate in the Group’s share option
scheme. Options are valued using the Black-Scholes methodology.
Minotaur Exploration
15
The board policy is to remunerate non-executive directors at market rates based on comparable
companies for time, commitment and responsibilities. The board determines payments to non-
executive directors and reviews their remuneration annually, based on market practice, duties
and accountability. Independent external advice is sought when required.
Table 1: Director remuneration for the year ended 30 June 2021 and 30 June 2020
* Dr Belperio also provides consulting services to the Group as and when required. The total
amount paid to Dr Belperio, in addition to his director’s fees detailed in Table 1 above, relating to
consulting services for the year was $26,460. Consulting services are paid on an hourly basis and
agreed with the Managing Director.
(i)
As part of the Company’s COVID-19 response measures, all directors and employees
received a 20% reduction in remuneration from 1 April 2020 to 31 August 2020.
(ii) It is noted that share-based payments reported in the remuneration tables above are not
cash payments and represent the fair value of options at the date of issue using the Black-
Scholes pricing model.
Short Term
Employee
Benefits
Post-
Employment
Share-based
payments
Totals
Performance
Based
Percentage of
Remuneration
Salary &
Fees (i)
Bonus
Superannuation
Options (ii)
$
%
Antonio Belperio*
-
2021
43,500
-
-
-
43,500
-
2020
89,685
-
14,891
52,000
156,576
-
Roger Higgins
-
-
2021
87,000
-
-
-
87,000
-
2020
85,500
-
-
65,000
150,500
-
George McKenzie
-
-
2021
43,500
-
-
-
43,500
-
2020
42,750
-
-
52,000
94,750
-
Andrew Woskett
-
-
2021
340,579
-
-
-
340,579
-
2020
339,259
-
-
126,800
466,059
-
Total
-
-
2021
514,579
-
-
-
514,579
-
2020
557,194
-
14,891
295,800
867,885
-
DIRECTORS’ REPORT
Annual Report 2021
16
Table 2: Remuneration of other key management personnel for the year ended 30 June 2021
and 30 June 2020
(i)
As part of the Company’s COVID-19 response measures, all directors and employees
received a 20% reduction in remuneration from 1 April 2020 to 31 August 2020.
(ii)
It is noted that share-based payments reported in the remuneration tables above are
not cash payments and represent the fair value of options at the date of issue using the
Black-Scholes pricing model.
Share based payments, being options issued to directors and employees under the Company’s
Employee Share Option Plan, are recognised at fair value using the Black-Scholes pricing model.
Other transactions with key management personnel
Throughout the year $57,854 (2020: $57,020) (inclusive of GST) was paid to a related entity of Dr
Antonio Belperio under a commercial lease agreement for the use of warehouse space located at
Magill, South Australia.
Bonuses
No bonuses were paid to directors during the 2021 financial year.
During the 2021 financial year, key management personnel received a cash bonus at the
discretion of the Board. All available bonuses to key management personnel were paid during
the year.
Share based remuneration
Options may be granted to key management personnel at the discretion of the Board under an
Employee Share Option Plan. All options refer to options over ordinary shares of the Company,
which are exercisable on a one-for-one basis under the terms of the agreements. All options
expire on the earlier of their expiry date or termination of the individual’s employment.
No options were granted to directors during the year.
Short Term
Employee
Benefits
Post-
Employment
Share-based
payments
Totals
Performance
Based
Percentage of
Remuneration
Salary &
Fees (i)
Bonus
Superannuation
Options (ii)
$
%
Varis Lidums
2021
183,094
4,566
17,828
138,460
343,948
-
2020
177,637
-
16,876
5,350
199,863
-
Total
-
2021
183,094
4,566
17,828
138,460
343,948
-
2020
177,637
-
16,876
5,350
199,863
-
Minotaur Exploration
17
Details of options over ordinary shares in the Company that were granted during the year as
remuneration to each of the other key management personnel are set out below:
Number
granted
Grant
date
Value per
option
at grant
date
$
Value of
options
at grant
date
$
Number
vested
Exercise
price
$
Last
exercise
date
Other key management
Varis Lidums
2,150,000
05/03/21
0.0644
138,460
2,150,000
0.20
31/01/24
Options held by key management personnel
The number of options to acquire shares in the Company held during the 2021 reporting period
by each of the key management personnel of the Group, including their related parties, are set
out below:
Balance at
beginning
of period
Granted as
remuneration
Exercised
Balance
at end of
period
Expiry
date
First
exercise
date
Directors – Unlisted options
Antonio Belperio
3,200,000
-
-
3,200,000
28/11/22
29/11/19
Roger Higgins
4,000,000
-
-
4,000,000
28/11/22
29/11/19
George McKenzie
3,200,000
-
-
3,200,000
28/11/22
29/11/19
Andrew Woskett
7,800,000
-
-
7,800,000
28/11/22
29/11/19
Other key management – Unlisted options
Varis Lidums
400,000
-
(400,000)
-
06/09/21
07/09/16
Varis Lidums
1,250,000
-
-
1,250,000
31/12/21
12/12/18
Varis Lidums
950,000
-
-
950,000
28/11/22
03/03/20
Varis Lidums
-
2,150,000
-
2,150,000
31/01/24
05/03/21
DIRECTORS’ REPORT
Outcrop from western side of Breena Plains project, Qld
Annual Report 2021
18
Shares held by key management personnel
The number of fully paid ordinary shares in the Company held during the 2021 reporting period
by each of the key management personnel of the Group, including their related parties are set
out below:
Balance at
1 July 2020
Participation
in Share
Purchase
Plan
Exercise of
Options
Disposals
Balance
30 June 2021
Directors
Antonio Belperio
2,477,036
600,000
-
-
3,077,036
Roger Higgins
2,864,159
600,000
-
-
3,464,159
George McKenzie
1,059,100
-
-
-
1,059,100
Andrew Woskett
1,040,000
600,000
-
-
1,640,000
Other key management
Varis Lidums
-
-
109,412
(109,412)
-
Use of remuneration consultants
During the financial year, there were no remuneration recommendations made in relation to key
management personnel for the Company by any remuneration consultants.
Voting and comments made at the Company’s 2020 Annual General Meeting
Minotaur Exploration Ltd received more than 97% of “yes” votes on its remuneration report
for the 2020 financial year by proxy. The Company did not receive any feedback at the Annual
General Meeting on its remuneration report.
End of audited remuneration report
Directors’ meetings
The number of meetings of directors (including meetings of committees of directors) held
during the year and the number of meetings attended by each director were as follows:
Directors’ Meetings
Audit Committee
Director
Eligible
Attended
Eligible
Attended
Antonio Belperio
7
7
-
-
Roger Higgins
7
7
2
2
George McKenzie
7
7
2
2
Andrew Woskett
7
7
-
-
Proceedings on behalf of the Group
No person has applied for leave of Court to bring proceedings on behalf of the Group
or intervene in any proceedings to which the Group is a party for the purpose of taking
responsibility on behalf of the Group for all or any part of those proceedings.
Minotaur Exploration
19
Non-audit services
During the year, Grant Thornton Audit Pty Ltd, the Company’s auditors, performed certain other
services in addition to their statutory audit duties.
The Board has considered the non-audit services provided during the year by the auditor and is
satisfied that the provision of those non-audit services during the year is compatible with, and
did not compromise, the auditor independence requirements of the Corporations Act 2001 for
the following reasons:
•
all non-audit services were subject to the corporate governance procedures adopted by the
Company to ensure they do not impact upon the impartiality and objectivity of the auditor;
and
•
the non-audit services do not undermine the general principles relating to auditor
independence as set out in APES 110 Code of Ethics for Professional Accountants, as they
did not involve reviewing or auditing the auditor’s own work, acting in a management
or decision-making capacity for the Company, acting as an advocate for the Company or
jointly sharing risks and rewards.
Details of the amounts paid to the auditors of the Company, Grant Thornton Audit Pty Ltd, and
it’s related practices for audit and non-audit services provided during the year are set out in
Note 24 to the Financial Statements.
A copy of the Auditor’s Independence Declaration as required under s307C of the Corporations
Act 2001 is included on page 16 of this financial report and forms part of this Directors’ Report.
Signed in accordance with a resolution of the directors:
Roger Higgins
Chairman
Dated this 24th day of September 2021
DIRECTORS’ REPORT
Annual Report 2021
20
AUDITOR’S INDEPENDENCE DECLARATION
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
www.grantthornton.com.au
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Auditor’s Independence Declaration
To the Directors of Minotaur Exploration Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Minotaur
Exploration Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:
a
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b
no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 24 September 2021
Minotaur Exploration
21
FINANCIAL REPORT
Consolidated Group
Note
30 June 2021
30 June 2020
$
$
Revenue
4 (a)
84,177
92,126
Other income
4 (b)
27,666
1,584,256
Impairment of exploration and evaluation assets
4 (c)
(11,780)
(3,050,565)
Project generation costs
4 (c)
(950,464)
(368,970)
Employee benefits expense
4 (d)
(1,339,537)
(835,873)
Depreciation expense
4 (c)
(258,799)
(236,631)
Finance costs
14
(29,655)
(36,150)
Other expenses
4 (e)
(757,049)
(801,545)
Loss before income tax expense
(3,235,441)
(3,653,352)
Income tax benefit
5
455,146
533,611
Loss for the year
(2,780,295)
(3,119,741)
Other comprehensive income (net of tax)
Items that will not be subsequently reclassified to profit
or loss
Gain/(Loss) on equity instruments designated at fair
value through other comprehensive income
1,072,480
(697,828)
Total comprehensive income for the year
attributable to the members of the parent entity
(1,707,815)
(3,817,569)
Earnings per share
Basic earnings per share (cents)
6
(0.59)
(0.88)
Diluted earnings per share (cents)
6
(0.59)
(0.88)
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2021
The above statement should be read in conjunction with the accompanying notes.
Annual Report 2021
22
The above statement should be read in conjunction with the accompanying notes.
Consolidated Statement of Financial Position
as at 30 June 2021
Consolidated Group
Note
30 June 2021
30 June 2020
$
$
CURRENT ASSETS
Cash and cash equivalents
7
5,089,698
2,420,189
Trade and other receivables
8
705,099
434,485
Other current assets
9
75,589
137,875
5,870,386
2,992,549
Held-for-sale assets
10
120,111
-
TOTAL CURRENT ASSETS
5,990,497
2,992,549
NON-CURRENT ASSETS
Financial assets
11
302,350
901,655
Right-of-use assets
14
646,383
861,845
Property, plant and equipment
12
504,566
490,754
Exploration and evaluation assets
13
8,536,074
6,257,579
TOTAL NON-CURRENT ASSETS
9,989,373
8,511,833
TOTAL ASSETS
15,979,870
11,504,382
CURRENT LIABILITIES
Trade and other payables
16
1,436,452
1,840,938
Lease liabilities
14
236,664
229,214
Borrowings
17
23,504
23,504
Provisions
18
344,420
368,830
TOTAL CURRENT LIABILITIES
2,041,040
2,462,486
NON-CURRENT LIABILITIES
Lease liabilities
14
455,832
662,841
Borrowings
17
1,245,547
1,246,797
Provisions
18
-
24,663
TOTAL NON-CURRENT LIABILITIES
1,701,379
1,934,301
TOTAL LIABILITIES
3,742,419
4,396,787
NET ASSETS
12,237,451
7,107,595
EQUITY
Issued capital
19
55,917,752
49,684,911
Reserves
20
1,409,699
(200,193)
Accumulated losses
21
(45,090,000)
(42,377,123)
TOTAL EQUITY
12,237,451
7,107,595
Minotaur Exploration
23
FINANCIAL REPORT
Consolidated Statement of Changes in Equity
for the year ended 30 June 2021
Consolidated Group
Note
Issued Capital
$
Share
Option
Reserve
$
Other
Components
of Equity
(Note 20)
$
Accumulated
Losses
$
Total Equity
$
Balance at 1 July 2020
49,684,911
559,521
(759,714)
(42,377,123)
7,107,595
Comprehensive income
Total loss for the year
-
-
-
(2,780,295)
(2,780,295)
Other comprehensive
income for the year
-
-
1,072,480
-
1,072,480
Total comprehensive
income for the year
-
-
1,072,480
(2,780,295)
(1,707,815)
Transactions with owners,
in their capacity as owners,
and other transfers
Issue of shares as part
consideration for the
acquisition of the
Pyramid project
19
100,000
-
-
-
100,000
Issue of shares through
Placement and Share
Purchase Plan
19
6,165,683
-
-
-
6,165,683
Issue of shares from the
exercise of share options
306,470
(167,970)
-
-
138,500
Transaction costs on
shares issued
(339,312)
-
-
-
(339,312)
Issue of options
employees
-
772,800
-
-
772,800
Transfers upon sale of
equity instruments
-
-
(67,418)
67,418
-
6,232,841
604,830
(67,418)
67,418
6,837,671
Balance at 30 June 2021
55,917,752
1,164,351
245,348
(45,090,000)
12,237,451
The above statement should be read in conjunction with the accompanying notes.
Annual Report 2021
24
Consolidated Statement of Changes in Equity
for the year ended 30 June 2021 (cont.)
Consolidated Group
Note
Issued Capital
$
Share
Option
Reserve
$
Other
Components
of Equity
(Note 20)
$
Accumulated
Losses
$
Total Equity
$
Balance at 1 July 2019
48,166,080
1,147,705
(185,495)
(40,063,007)
9,065,283
Comprehensive income
Total loss for the year
-
-
-
(3,119,741)
(3,119,741)
Other comprehensive
income for the year
-
-
(697,828)
-
(697,828)
Total comprehensive
income for the year
-
-
(697,828)
(3,119,741)
(3,817,569)
Transactions with owners,
in their capacity as owners,
and other transfers
Issue of shares as part
consideration for the
acquisition of the
Windsor project
19
150,000
-
-
-
150,000
Issue of shares through
Placement
19
1,500,000
-
-
-
1,500,000
Transaction costs on
shares issued
(131,169)
-
-
-
(131,169)
Issue of options to
directors and employees
-
341,050
-
-
341,050
Transfers upon lapse of
options
-
(929,234)
-
929,234
-
Transfers upon sale of
equity instruments
-
-
123,609
(123,609)
-
1,518,831
(588,184)
123,609
805,625
1,859,881
Balance at 30 June 2020
49,684,911
559,521
(759,714)
(42,377,123)
7,107,595
The above statement should be read in conjunction with the accompanying notes.
Minotaur Exploration
25
FINANCIAL REPORT
Consolidated Group
Note
30 June 2021
30 June 2020
$
$
Cash flows from operating activities
Receipts from customers
84,177
92,126
Payments to suppliers and employees
(1,788,907)
(1,742,263)
Interest received
2,666
3,486
COVID-19 cash flow boost received
50,000
50,000
JobKeeper stimulus received
237,750
66,000
R&D tax incentive received
432,103
354,158
Net cash used in operating activities
7
(982,211)
(1,176,493)
Cash flows from investing activities
Payments for property, plant and equipment
(52,627)
(8,952)
Proceeds from sale of property, plant and equipment
-
4,750
Purchase of equity instruments
(183,750)
-
Proceeds from sale of equity instruments less costs
1,870,939
357,033
Proceeds from sale of exploration assets
-
225,000
Acquisition of exploration assets
(260,000)
(150,000)
Option, exclusivity, extension and signing fees received
25,000
225,000
Joint Operation receipts
868,595
1,884,433
Payment for exploration activities
(4,585,741)
(4,553,205)
Net cash used in investing activities
(2,317,584)
(2,015,941)
Cash flows from financing activities
Proceeds from issue of shares through share purchase
plan and share placement
6,304,182
1,500,000
Payment of transaction costs for issue of shares
(333,631)
(131,169)
Proceeds from Jericho project loan carry arrangement
22,256
284,425
Repayment of borrowings
(23,503)
(26,439)
Net cash provided by financing activities
5,969,304
1,626,817
Net increase/(decrease) in cash and cash
equivalents
2,669,509
(1,565,617)
Cash at the beginning of the year
2,420,189
3,985,806
Cash at the end of the year
7
5,089,698
2,420,189
Consolidated Statement of Cash Flows
for the year ended 30 June 2021
The above statement should be read in conjunction with the accompanying notes.
Annual Report 2021
26
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
These consolidated financial statements and notes represent those of Minotaur Exploration Ltd and Controlled Entities (the
”Consolidated Group” or “Group”).
Supplementary information about the parent entity, Minotaur Exploration Ltd, is disclosed in Note 2.
Note 1: Summary of significant accounting policies
Basis of preparation
The consolidated financial statements are general purpose financial statements that have been prepared in accordance
with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001. The Group is a for-profit entity for financial reporting
purposes under Australian Accounting Standards.
Minotaur Exploration Limited is the Group’s Ultimate Parent Company. Minotaur Exploration Limited is a Public Company
incorporated and domiciled in Australia. The address of its registered office is C/- O’Loughlins Lawyers, Level 2, 99 Frome
Street, Adelaide SA 5000 and its principal place of business is Level 1, 8 Beulah Road, Norwood SA 5067.
Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has
concluded would result in financial statements containing relevant and reliable information about transactions, events
and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB).
Material accounting policies adopted in the preparation of these financial statements are presented below and have been
consistently applied unless stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accruals basis and are based on
historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets
and financial liabilities.
The consolidated financial statements for the year ended 30 June 2021 were approved and authorised for issue by the
Board of Directors on 24 September 2021.
(a) Principle of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Minotaur
Exploration Ltd at the end of the reporting period. The parent entity controls a subsidiary if it is exposed, or has rights, to
variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over
the subsidiary.
Where controlled entities have entered or left the Group during the year, the financial performance of those entities is
included only for the period of the year that they were controlled. A list of controlled entities is contained in Note 26 to the
financial statements.
In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the
Consolidated Group have been eliminated in full on consolidation.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are reported
separately within the equity section of the consolidated statement of financial position and statement of profit or loss and
other comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of the
original business combination and their share of changes in equity since that date.
(b) Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense
(income).
Current income tax expense charged to profit or loss is the tax payable on taxable income.
Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation
authority.
Minotaur Exploration
27
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well unused tax losses.
Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items
that are recognised outside profit or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability,
where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled and their measurement also reflects the manner in which management expects to recover
or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and
liabilities are offset where:
(a)
a legally enforceable right of set-off exists; and
(b)
the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and
settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax
assets or liabilities are expected to be recovered or settled.
Tax consolidation
The parent entity and its Australian wholly-owned entities are part of a tax Consolidated Group under Australian taxation
law. The head entity within the tax consolidation group for the purposes of the tax consolidation system is Minotaur
Exploration Limited.
Minotaur Exploration Limited and each of its own wholly-owned subsidiaries recognise the current and deferred tax assets
and deferred tax liabilities applicable to the transactions undertaken by it, after elimination of intra-group transactions.
Minotaur Exploration Limited recognises the entire tax Consolidated Group’s retained tax losses.
Research and development tax incentive
To the extent that research and development costs are eligible activities under the “Research and development tax
incentive” programme, a 43.5% refundable tax offset is available for companies with annual turnover of less than $20
million. The Group recognises refundable tax offsets based on management’s best estimate as an income tax benefit, in
profit or loss, resulting from the monetisation of available tax losses that otherwise would have been carried forward.
(c) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost as indicated less, where applicable, any accumulated
depreciation and impairment losses.
Land and buildings
Buildings are measured on the cost basis and therefore carried at cost less accumulated depreciation for buildings and
any accumulated impairment. In the event the carrying amount of buildings is greater than the estimated recoverable
amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are
recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal
assessment of recoverable amount is made when impairment indicators are present.
Annual Report 2021
28
Plant and equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and
any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated
recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and
impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a
revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.
The carrying amount of property, plant and equipment is reviewed annually by directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that
will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted
to their present values in determining recoverable amounts.
The cost of fixed assets constructed within the Consolidated Group includes the cost of materials, direct labour, borrowing
costs and an appropriate proportion of fixed and variable overheads. 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. All other repairs and maintenance
are charged to the statement of profit or loss and other comprehensive income during the financial period in which they are
incurred.
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding freehold
land, is depreciated on a straight-line and diminishing value basis over the asset’s useful life to the Consolidated Group
commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of
either the unexpired period of the lease or the estimated useful lives of the improvements.
The useful life for each class of depreciable assets are:
Class of Fixed Asset
Useful Life
Leasehold improvements
3 – 7 years
Buildings
20 years
Plant and equipment
2 – 10 years
Motor vehicles
4 – 7 years
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 the carrying amount. These gains and losses are
included in the statement of profit or loss and other comprehensive income.
(d) Exploration, Evaluation and Development Expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of
interest. These costs are only capitalised to the extent that they are expected to be recovered through the successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of
the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to
abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area of interest.
Minotaur Exploration
29
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Costs of site restoration are provided over the life of the project from when exploration commences and are included in
the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of the
permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an
undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration,
there is uncertainty regarding the nature and extent of the restoration due to community expectations and future
legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year
of abandoning the site.
(e) Leases
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease
incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease
term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life
and the lease term. Right-of-use assets are subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term
reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate
are recognised as expense in the period on which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date,
the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a
change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
(f) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
i)
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not
contain a significant financing component or for which the Group has applied the practical expedient, the Group initially
measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss,
transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has
applied the practical expedient are measured at the transaction price determined under AASB 15.
Annual Report 2021
30
In order for a financial asset to be initially classified and measured at amortised cost or fair value through OCI, it needs to
give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate
cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the
financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or
convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits
to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
•
Financial assets at amortised cost (debt instruments)
•
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
•
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
•
Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)
The Group measures financial assets at amortised cost if both of the following conditions are met:
•
The financial asset is held within a business model with the objective to hold financial assets in order to collect
contractual cash flows; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to
impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
The Group’s financial assets at amortised cost includes trade receivables and a joint operation loan receivable.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated
at fair value through OCI when they meet the definition of equity under AASB 132 Financial Instruments: Presentation and
are not held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income
in the statement of profit or loss when the right of payment has been established, except when the Group benefits from
such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are not subject to impairment assessment.
The Group elected to classify irrevocably its listed equity investments under this category.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
•
The rights to receive cash flows from the asset have expired; or
•
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the
Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Minotaur Exploration
31
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also
recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are
integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk
since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure,
irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group
does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases,
the Group may also consider a financial asset to be in default when internal or external information indicates that the Group
is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held
by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash
flows.
ii)
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and
derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.
This category generally applies to interest-bearing loans and borrowings.
Annual Report 2021
32
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the
statement of profit or loss.
(g) Investments in associates, joint ventures and joint operations
Associates are those entities over which the Group is able to exert significant influence but which are not subsidiaries.
A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the
Group has rights to a share of the arrangement’s net assets rather than direct rights to underlying assets and obligations
for underlying liabilities. A joint arrangement in which the Group has direct rights to underlying assets and obligations for
underlying liabilities is classified as a joint operation.
Investments in associates and joint ventures are accounted for using the equity method. Interests in joint operations are
accounted for by recognising the Group’s assets (including its share of any assets held jointly), its liabilities (including its
share of any liabilities incurred jointly), its revenue from the sale of its share of the output arising from the joint operation,
its share of the revenue from the sale of the output by the joint operation and its expenses (including its share of any
expenses incurred jointly).
Any goodwill or fair value adjustment attributable to the Group’s share in the associate or joint venture is not recognised
separately and is included in the amount recognised as investment.
The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the Group’s
share of the profit or loss and other comprehensive income of the associate and joint venture, adjusted where necessary to
ensure consistency with the accounting policies of the Group.
Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the
extent of the Group’s interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested
for impairment.
(h) Business combinations
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the
Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred,
liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising
from a contingent consideration arrangement. Acquisition costs are expensed as incurred.
The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether
they have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and
liabilities assumed are generally measured at their acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of (a)
fair value of consideration transferred, (b) the recognised amount of any non-controlling interest in the acquiree, and (c)
acquisition-date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable
net assets.
(i) Non-current assets held for sale and discontinued operations
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups classified
as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the
incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax
expense.
Minotaur Exploration
33
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal
group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that
it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management
must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the
classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial
position.
(j) Foreign Currency Transactions and Balances
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which
is the parent entity’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year end exchange rate. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured
at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss, except where deferred in
equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive
income to the extent that the underlying gain or loss is recognised in other comprehensive income; otherwise the exchange
difference is recognised in profit or loss.
(k) Employee benefits
Short-term employee benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within
twelve (12) months after the end of the period in which the employees render the related service. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The Group’s liabilities for long service leave are included in other long-term benefits as they are not expected to be settled
wholly within twelve (12) months after the end of the period in which the employees render the related service. They are
measured at the present value of the expected future payments to be made to employees. The expected future payments
incorporate anticipated future wage and salary levels, experience of employee departures and periods of service, and are
discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate
bonds that have maturity dates that approximate the timing of the estimated future cash outflows. Any re-measurements
arising from experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the
changes occur.
The Group presents employee benefit obligations as current liabilities in the statement of financial position if the Group
does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting period,
irrespective of when the actual settlement is expected to take place.
Annual Report 2021
34
Equity-settled compensation
The Group operates an employee share option plan. Share-based payments to employees are measured at the fair value of
the instruments issued and amortised over the vesting periods. Share-based payments to non-employees are measured at
the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value
of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received.
The corresponding amount is recorded to the option reserve. The fair value of options is determined using the Black-
Scholes pricing model. The number of options expected to vest is reviewed and adjusted at the end of each reporting
period such that the amount recognised for services received as consideration for the equity instruments granted is based
on the number of equity instruments that eventually vest.
(l) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting
period.
(m) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly liquid
investments with original maturities of 6 months or less, and bank overdrafts.
Bank overdrafts are reported within short-term borrowings in current liabilities in the statement of financial position.
(n) Revenue and Other Income
The Group generates revenues from management fees charged to joint operation partners for the management of
exploration activities. This revenue is recognised over time as the management services are provided.
Rental income from operating leases is recognised on a straight-line basis over the lease term.
Interest income is reported on an accruals basis using the effective interest method.
All revenue is stated net of the amount of goods and services tax (GST).
(o) Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the
end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30-90
days of recognition of the liability.
(p) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a
substantial period of time to prepare for their intended use or sale are added to the cost of those assets, until such time as
the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
(q) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office (ATO).
Minotaur Exploration
35
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial
position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from
customers or payments to suppliers.
(r) Government Grants
Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and
all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to
match the grant to the costs they are compensating. Grants relating to capitalised exploration and evaluation expenditure
are credited against the exploration and evaluation assets to which they relate in order to match the grants received with
the expenditure the grants are intended to compensate.
(s) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
(t) Going concern
The Group’s financial statements are prepared on the going concern basis which assumes continuity of normal business
activities and the realisation of assets and settlement of liabilities and commitments in the normal course of business.
During the year ended 30 June 2021 the Group recognised a loss of $2,780,295, had net cash outflows from operating and
investing activities of $3,299,795, and had accumulated losses of $45,090,000 as at 30 June 2021. The continuation of the
group as a going concern is dependent upon its ability to generate sufficient net cash inflows from operating and financing
activities and manage the level of exploration and other expenditure within available cash resources. The Directors consider
that the going concern basis of accounting is appropriate, as the Company has the following options:
•
The ability to issue share capital under the Corporations Act 2001, by a share purchase plan, share placement or rights
issue;
•
The option of farming out all or part of its assets;
•
The option of selling interests in the Group’s assets; and
•
The option of relinquishing or disposing of rights and interests in certain assets.
In the event that the Group is unsuccessful in implementing one or more of the funding options listed above, such
circumstances would indicate that a material uncertainty exists that may cast significant doubt as to whether the Group will
continue as a going concern and therefore whether it will realise its assets and discharge its liabilities in the normal course
of business and at the amounts stated in the financial report.
This financial report does not include any adjustments relating to the recoverability and classification of recorded asset
amounts or to the amounts and classification of liabilities that might be necessary should the Company not continue as a
going concern.
(u) Critical Accounting Estimates and Judgements
The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on
current trends and economic data, obtained both externally and within the Group.
Annual Report 2021
36
Key estimates
(i) Impairment
The Group assesses impairment at the end of each reporting period by evaluating conditions and events specific to the
Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using fair value
less cost of disposal calculations which incorporate various key assumptions.
(ii) Exploration and evaluation expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable
or where the activities have not reached a stage that permits a reasonable assessment of the existence of reserves. While
there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that
such expenditure should not be written off since feasibility studies in such areas have not yet concluded. Such capitalised
expenditure is carried at the end of the year at $8,536,074 (2020: $6,257,579).
(iii) Research and development incentive
The Group recognises Research and Development incentives on an accrual basis. Management complete a detailed
estimate of the expected claim relating to the financial year based on current projects lodged with AusIndustry.
(v) Changes in Accounting Policies
New and amended standards adopted by the Group
The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning
on or after 1 January 2020. The Group has not early adopted any other standard, interpretation or amendment that has
been issued but is not yet effective.
Amendments to AASB 3: Definition of a Business
The amendment to AASB 3 Business Combinations clarifies that to be considered a business, an integrated set of activities
and assets must include, at a minimum, an input and a substantive process that, together, significantly contribute to the
ability to create output. Furthermore, it clarifies that a business can exist without including all of the inputs and processes
needed to create outputs. These amendments had no impact on the consolidated financial statements of the Group, but
may impact future periods should the Group enter into any business combinations.
Amendments to AASB 7, AASB 9 and AASB 39 Interest Rate Benchmark Reform
The amendments to AASB 9 and AASB 39 Financial Instruments: Recognition and Measurement provide a number of reliefs,
which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship
is affected if the reform gives rise to uncertainty about the timing and/or amount of benchmark-based cash flows of the
hedged item or the hedging instrument. These amendments have no impact on the consolidated financial statements of
the Group as it does not have any interest rate hedge relationships
Amendments to AASB 1 and AASB 8 Definition of Material
The amendments provide a new definition of material that states, “information is material if omitting, misstating or
obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial
statements make on the basis of those financial statements, which provide financial information about a specific reporting
entity.” The amendments clarify that materiality will depend on the nature or magnitude of information, either individually
or in combination with other information, in the context of the financial statements. A misstatement of information is
material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no
impact on the consolidated financial statements of, nor is there expected to be any future impact to the Group.
Minotaur Exploration
37
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Amendments to AASB 16 COVID-19 Related Rent Concessions
On 28 May 2020, the IASB issued COVID-19-Related Rent Concessions - amendment to AASB 16 Leases. The amendments
provide relief to lessees from applying AASB 16 guidance on lease modification accounting for rent concessions arising
as a direct consequence of the COVID-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a
COVID-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any
change in lease payments resulting from the COVID-19 related rent concession the same way it would account for the
change under AASB 16, if the change were not a lease modification. The amendment applies to annual reporting periods
beginning on or after 1 June 2020. Earlier application is permitted. This amendment had no impact on the consolidated
financial statements of the Group.
(w) Standards, amendments and interpretations to existing standards that are not yet effective and have
not been adopted early by the Group
There are no new standards, amendments or interpretations that are issued and not yet effective which will have a material
impact on the Group in future years. None have been adopted early by the Group.
Annual Report 2021
38
Note 2: Parent information
30 June 2021
$
30 June 2020
$
Assets
Current assets
5,356,035
3,605,535
Non-current assets
9,895,118
7,699,411
15,251,153
11,304,946
Liabilities
Current liabilities
1,768,155
2,925,890
Non-current liabilities
1,245,547
1,271,461
3,013,702
4,197,351
Equity
Issued capital
55,917,754
49,684,911
Reserves – Share option
1,164,351
559,521
Accumulated losses
(44,844,654)
(43,136,837)
12,237,451
7,107,595
Financial performance
Loss for the year
(1,707,817)
(3,817,569)
Other comprehensive income
-
-
(1,707,817)
(3,817,569)
Guarantees
Minotaur Exploration Limited has not entered into any guarantees, in the current or previous financial year, in relation to
the debts of its subsidiaries.
Contingent Liabilities
Contingent liabilities of the parent entity have been incorporated into the Group information in Note 25. The contingent
liabilities of the parent are consistent with that of the Group.
Contractual Commitments
Contractual Commitments of the parent entity have been incorporated into the Group information in Note 22. The
contractual commitments of the parent are consistent with that of the Group.
Note 3: Operating segments
The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by
the chief operating decision maker (the Managing Director) in allocating resources and have concluded, due to the Group
being focused on exploration activity, at this time that there are no separately identifiable segments. As such there is one
segment being the Consolidated Group.
Minotaur Exploration
39
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Note 4: Revenue and expenses
Consolidated Group
30 June 2021
30 June 2020
$
$
(a) Revenue
Administration fees
48,833
80,366
Rent received
35,344
11,760
84,177
92,126
Timing of revenue recognition
Goods transferred at a point in time
84,177
92,126
Total revenue
84,177
92,126
(b) Other income
Option, exclusivity, signing and extension fees received
25,000
225,000
Net gain on disposal of exploration assets
-
1,240,708
Bank interest received or receivable
2,666
3,486
COVID-19 cash flow boost received or receivable
-
100,000
Other income
-
15,062
27,666
1,584,256
(c) Expenses
Impairment of exploration and evaluation assets
Impairment of exploration and evaluation assets
11,780
3,050,565
11,780
3,050,565
Project generation costs
Project generation costs
950,464
368,970
950,464
368,970
Annual Report 2021
40
Consolidated Group
30 June 2021
30 June 2020
$
$
Depreciation expense
Right-of-use assets
215,461
215,461
Buildings
7,937
7,937
Plant and equipment
27,258
10,518
Motor vehicles
8,143
2,715
258,799
236,631
(d) Employee benefits expense
Wages, salaries, directors’ fees and other remuneration expenses
1,582,323
1,709,802
Superannuation expense
118,905
119,292
Transfer from annual leave provision
(26,937)
(25,053)
Transfer from long service leave provision
(22,136)
(42,988)
Share options expense
772,800
341,051
Transfer to exploration assets
(1,085,418)
(1,266,231)
1,339,537
835,873
(e) Other expenses
Professional and consultancy
285,817
213,232
Employee taxes and levies
2,559
61,735
Occupancy costs
45,823
47,225
Insurance costs
52,297
48,636
ASX/ASIC costs
56,892
46,615
Share register maintenance
40,485
44,176
Communication costs
5,453
7,340
Promotion and seminars
1,213
23,501
Other expenses
266,510
309,085
757,049
801,545
Minotaur Exploration
41
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Note 5: Income tax benefit
Consolidated Group
30 June 2021
30 June 2020
$
$
The major components of income tax benefit are:
Statement of comprehensive income
Current income tax
Current income tax charge
-
-
Research and development tax incentive
(455,146)
(533,611)
Income tax benefit reported in the income statement
(455,146)
(533,611)
A reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Group’s
applicable income tax rate is as follows:
Consolidated Group
30 June 2021
30 June 2020
$
$
Accounting loss before income tax
(3,235,441)
(3,653,352)
At the Group’s statutory income tax rate of 26% (2020: 27.5%)
(841,215)
(1,004,672)
Expenditure not allowable for income tax purposes
202,702
95,404
Revenue non-assessable for tax purposes
-
(27,500)
Research and development tax incentive
(455,146)
(533,611)
Tax losses not recognised due to not meeting recognition criteria
638,513
936,768
(455,146)
(533,611)
The Group has tax losses arising in Australia of $91,944,313 (2020: $88,621,639) that are available indefinitely for offset
against future taxable profits generated by the Group. In addition the Group has $6,356,016 (2020: $8,049,531) capital
losses available. These losses include $72,537,535 tax losses and $2,323,426 capital losses transferred by members to the tax
Consolidated Group. The utilisation of these losses will be restricted to their available fraction.
Tax Consolidation
Minotaur Exploration Ltd and its 100% owned Australian resident subsidiaries have formed a tax Consolidated Group with
effect from 5 February 2005.
Minotaur Exploration Ltd is the head entity of the tax Consolidated Group.
Annual Report 2021
42
Note 6: Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of
the parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number
of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted earnings per share computations:
Consolidated Group
30 June 2021
30 June 2020
Net loss attributable to
ordinary equity holders of
the parent
($2,780,295)
($3,119,741)
Weighted average number
of ordinary shares for basic
earnings per share
473,046,205
352,667,042
Effect of dilution
In accordance with AASB 133 ’Earnings per Share’, as potential ordinary shares may only result in a situation where their
conversion results in an increase in loss per share or decrease in profit per share from continuing operations, no dilutive
effect has been taking into account for 2021.
As no dilutive effect has been taken into account for 2021, 36,565,000 potential ordinary shares have not been included in
the calculation.
Note 7: Cash and cash equivalents
Consolidated Group
30 June 2021
30 June 2020
$
$
Cash and cash equivalents
Cash at bank and on hand
4,844,098
2,182,089
Short-term deposits
245,600
238,100
5,089,698
2,420,189
Cash at bank earns interest at floating rates based on daily deposit rates.
Short-term deposits are made for varying periods between one month and six months, depending on the immediate cash
requirements of the Group, and earn interest at the respective short-term deposit rate.
Restricted cash
The cash and cash equivalents disclosed above and in the statement of cash flows include $463,896 received in advance for
joint operation related exploration expenditure. These amounts are not available for general use by the Group.
Included in short-term deposits is $245,600 relating to deposits to secure tenements and rental tenancy and as such is
restricted for this use.
Minotaur Exploration
43
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Reconciliation to Statement of Cash Flows
For the purpose of the Statement of Cash Flows, cash and cash equivalents comprise the following at 30 June:
Consolidated Group
30 June 2021
30 June 2020
$
$
Cash at bank and on hand
4,844,098
2,182,089
Short-term deposits
245,600
238,100
5,089,698
2,420,189
Consolidated Group
30 June 2021
30 June 2020
$
$
Reconciliation of net loss after tax to net cash flows from operations
Net loss
(2,780,295)
(3,119,741)
Adjustments for non-cash items:
Depreciation – Property, plant and equipment
43,338
21,170
Depreciation – Right-of-use assets
215,461
215,461
Impairment of non-current assets and project generation costs
962,244
3,419,535
Net gain on disposal of property, plant and equipment, equity
investments and tenements
(25,000)
(1,480,770)
Share options expensed
772,800
341,051
Changes in assets and liabilities:
Decrease in trade receivables
37,510
15,201
Increase in accrued R&D tax incentive
(23,043)
(179,453)
Decrease in prepayments
1,667
6,341
Decrease in trade and other payables
(137,821)
(347,244)
Decrease in employee provisions
(49,073)
(68,042)
Net cash used in operating activities
(982,212)
(1,176,491)
Note 8: Trade and other receivables
Trade receivables
250,077
2,506
Accrued R&D tax incentive
455,022
431,979
705,099
434,485
Trade receivables are non-interest bearing and are generally on 30-90 day terms.
Information regarding the credit risk of current receivables is set out in Note 27.
Annual Report 2021
44
Note 9: Other current assets
Consolidated Group
30 June 2021
30 June 2020
$
$
Prepayments
39,146
40,813
COVID cash flow boost receivable
-
50,000
Other
36,443
47,062
75,589
137,875
Note 10: Held-for-sale assets
Opening balance
-
635,222
Transfers from exploration assets (i)
120,111
-
Less: Disposal of subsidiaries (see note 23)
-
(616,306)
Less: Sale of tenements (ii)
-
(18,916)
120,111
-
i.
On 15 December 2020 the Group announced that a binding Terms Sheet had been signed with private company
Larvotto Resources Ltd by which Larvotto will acquire full ownership of the Highlands copper-gold prospective
tenements, 50km north-east of Mt Isa, Queensland. Minotaur purchased the ground package in 2018 and carried
out ground geophysical surveys and limited drilling. Minotaur now views the asset as being low priority and non-
core.
Larvotto intends to include Highlands in an initial public offer on ASX in the second half of 2021. Minotaur has
granted Larvotto exclusivity through to end of December 2021 for two non-refundable payments of $25,000 and
$15,000. Subject to the IPO proceeding by that date Larvotto will pay Minotaur $100,000 cash and issue new
IPO shares to the value of $500,000, such shares being escrowed as ASX requires. A 1% NSR will attach to the
tenements on transfer to Larvotto.
Proceeds from the sale of tenements listed above are in excess of the carrying value. No impairment expense was
recognised upon reclassification of the assets to held-for-sale.
ii.
On 16 September 2019, the Group successfully completed the sale of E37/909.
iii.
On 29 August 2019, the Group successfully completed the sale of Minotaur Gold Solutions Pty Ltd and Altia
Resources Pty Ltd. Refer note 23.
Note 11: Financial assets
Consolidated Group
30 June 2021
30 June 2020
$
$
Equity instruments at fair value through OCI – shares in listed companies
Opening balance
901,655
332,672
Equity consideration for the sale of Altia Resources Pty Ltd and
Minotaur Gold Solutions Pty Ltd
-
1,650,000
Revaluations to fair value
1,072,480
(697,828)
Disposal of shares in listed companies
(1,855,535)
(383,189)
Acquisition of shares in listed companies
183,750
-
302,350
901,655
Fair value measurement is considered at Note 29.
Minotaur Exploration
45
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Note 12: Property, plant and equipment
30 June 2021
Land and
Buildings
Leasehold
Improvements
Plant and
Equipment
Kaolin
Pilot Plant
Motor
Vehicles
Total
Cost
Opening balance
508,723
611,218
374,393
283,765
185,553
1,963,652
Additions
-
-
57,150
-
-
57,150
508,723
611,218
431,543
283,765
185,553
2,020,802
Accumulated depreciation
Opening balance
47,622
611,218
352,883
283,765
177,410
1,472,898
Depreciation for the year
7,937
-
27,258
-
8,143
43,338
55,559
-
380,141
-
185,553
1,516,236
Net book value
453,164
-
51,402
-
-
504,566
Property is measured at historical cost less accumulated depreciation. Land and buildings with a net book value of $453,164
(2020: $461,101) is offered as security against a mortgage of $318,237.
Note 13: Exploration and evaluation assets
Consolidated Group
30 June 2021
30 June 2020
$
$
Exploration, evaluation and development costs carried forward in
respect of mining areas of interest
Exploration and evaluation phase – Joint Operations
6,339,590
5,482,615
Exploration and evaluation phase – Other
2,196,484
774,964
8,536,074
6,257,579
30 June 2020
Land and
Buildings
Leasehold
Improvements
Plant and
Equipment
Kaolin
Pilot Plant
Motor
Vehicles
Total
Cost
Opening balance
508,723
611,218
377,018
283,765
187,253
1,967,977
Additions
-
-
16,072
-
-
16,072
Disposals
-
-
(18,697)
-
(1,700)
(20,397)
508,723
611,218
374,393
283,765
185,553
1,963,652
Accumulated depreciation
Opening balance
39,685
611,218
356,360
283,765
176,395
1,467,423
Depreciation for the year
7,937
-
10,518
-
2,715
21,170
Disposals
-
-
(13,995)
-
(1,700)
(15,695)
47,622
611,218
352,883
283,765
177,410
1,472,898
Net book value
461,101
-
21,510
-
8,143
490,754
Annual Report 2021
46
Capitalised tenement expenditure movement reconciliation – Consolidated Group:
30 June 2021
Exploration Joint
Operations
$
Exploration Other
$
Total
$
Balance at beginning of year
5,482,615
774,964
6,257,579
Additions through expenditure capitalised
2,526,100
1,364,105
3,890,205
Additions through acquisition of tenements
-
250,000
250,000
Reductions through joint operation contributions
(1,512,800)
-
(1,512,800)
Reductions through government grants received
(155,231)
(61,788)
(217,019)
Transfers to Held-for-sale assets
-
(120,111)
(120,111)
Write-off of tenements relinquished
(1,094)
(10,686)
(11,780)
Balance at end of year
6,339,590
2,196,484
8,536,074
30 June 2020
Exploration Joint
Operations
$
Exploration Other
$
Total
$
Balance at beginning of year
7,256,212
333,437
7,589,649
Additions through expenditure capitalised
1,923,878
1,100,594
3,024,472
Additions through acquisition of Windsor project
-
300,000
300,000
Reductions through joint operation contributions
(1,605,977)
-
(1,605,977)
Write-off of tenements relinquished
(2,091,498)
(959,067)
(3,050,565)
Balance at end of year
5,482,615
774,964
6,257,579
The impairment expense of $11,780 (2020: $3,050,565) arose from a review of the Group’s capitalised costs and the relevant
tenements to which the costs related.
The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful
development and commercial exploitation or sale of the respective mining areas.
Joint Operations
Set out below are details of the Group’s joint operations and their respective ownership conditions:
Eloise project
The Eloise project is a joint operation between OZ Minerals Ltd (ASX: OZL) owning 70% and the Group owning 30%. OZ
Minerals has committed to contribute a further $3 million towards exploration activity over a 24 month period, with its 70%
interest remaining static.
Jericho project
The Jericho project is a joint operation between OZ Minerals Ltd (ASX: OZL) and the Group. From 1 April 2019 OZ Minerals
Ltd’s ownership of the project was set at 80% (with the Group owning 20%) from which time all activity is sole funded by OZ
Minerals Ltd. The Group’s 20% contribution to the joint operation is treated as a non-recourse loan advanced by OZ Minerals
Ltd and repayable only from positive cash flow from commercial production at Jericho (refer to Note 17).
Minotaur Exploration
47
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Cloncurry Alliance
On 14 May 2019, the Company announced it had entered into a Cloncurry Regional Alliance (the “Alliance”) with OZ
Minerals Ltd. The Alliance was established on a 70% OZ Minerals Ltd and 30% Minotaur Group ownership structure. To
initiate the Alliance OZ Minerals Ltd committed to fund the Group’s prospect research and project generation activity in the
region to $1 million over 2 years.
Breena Plains project
As a results of the Cloncurry Alliance mentioned above, a joint operation between the Alliance (being OZ Minerals Ltd and
the Group) and Sandfire Resources Ltd (ASX: SFR) was established for the Breena Plains project. The project requires OZ
Minerals Ltd, on behalf of the Alliance, to invest $1m in exploration in the first year. Thereafter the Alliance may earn a 51%
interest in the project by sole funding a further $3 million through the next 2 year period. The Alliance may then earn an
additional 24% interest for a further expenditure of $4m over the subsequent 2 years. Thus, to attain its maximum interest
of 75% over 5 years the Alliance must invest $8 million.
The terms of the Heads of Agreement – Farm in and Joint Venture – Breena Plains project were amended on 28 July 2021
to account for impacts of COVID-19. The project required OZ Minerals Ltd, on behalf of the Alliance, to invest $0.85m in
exploration to 14 September 2021. Thereafter the Alliance may earn a 51% interest in the project by sole funding a further
$3.5 million within 3 years of the original Agreement date. The Alliance may then earn an additional 24% interest for a
further expenditure of $4m over the subsequent 2 years. Thus, to attain its maximum interest of 75%, over 5 years from 14
February 2020, the Alliance must invest $8.35 million.
Great White project
The Great White project is a joint operation between Andromeda Metals Ltd (ASX: ADN) owning 75% and the Group owning
25%. Ongoing expenditure, as required, is proportional to the JV parties interests.
Note 14: Right-of-use assets and lease liabilities
This note provides information about the Group’s Right-of-use assets and Lease liabilities.
The Group has a lease for its principal place of business, expiring 9 July 2024, and includes an escalation clause linked to CPI.
Set out below, are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during
the period:
30 June 2021
Right of use assets - Leases
$
Lease liabilities
$
Opening balance
861,845
892,055
Depreciation expense
(215,462)
-
Interest expense (included in finance costs)
-
29,655
Payments
-
(229,214)
646,383
692,496
Current
-
236,664
Non-current
646,383
455,832
646,383
692,496
Annual Report 2021
48
30 June 2020
Right of use assets - Leases
$
Lease liabilities
$
Opening balance
Additions
1,077,306
1,077,306
Depreciation expense
(215,461)
-
Interest expense (included in finance costs)
-
36,150
Payments
-
(221,401)
861,845
892,055
Current
-
229,214
Non-current
861,845
662,841
861,845
892,055
Note 15: Share based payments
Employee share option plan
The Company has established the Minotaur Exploration Ltd Employee Share Option Plan and a summary of the Rules of the
Plan are set out below:
All employees (full and part time) will be eligible to participate in the Plan after a qualifying period of 12 months
employment by a member of the Group, although the board may waive this requirement.
Options are granted under the Plan at the discretion of the board and if permitted by the board, maybe issued to an
employee’s nominee.
Each option is to subscribe for one fully paid ordinary share in the Company. An option is exercisable at any time from
its date of issue. Options will be issued free. The exercise price of options will be determined by the board, subject to a
minimum price equal to the market value of the Company’s shares at the time the board resolves to offer those options. The
total number of shares the subject of options issued under the Plan, when aggregated with issues during the previous 5
years pursuant to the Plan and any other employee share plan, must not exceed 5% of the Company’s issued share capital.
If, prior to the expiry date of options, a person ceases to be an employee of a Group company for any reason other than
retirement at age 60 or more (or such earlier age as the board permits), permanent disability, redundancy or death, the
options held by that person (or that person’s nominee) automatically lapse on the first to occur of a) the expiry of the period
of 1 month from the date of such occurrence, and b) the expiry date. If a person dies, the options held by that person will be
exercisable by that person’s legal personal representative.
Options cannot be transferred other than to the legal personal representative of a deceased option holder.
The Company will not apply for official quotation of any options. Shares issued as a result of the exercise of options will rank
equally with the Company’s previously issued shares.
Option holders may only participate in new issues of securities by first exercising their options.
The board may amend the Plan Rules subject to the requirements of the Listing Rules. The expense recognised in the
Statement of profit or loss and other comprehensive income in relation to share-based payments is disclosed in Note 4 (d).
Minotaur Exploration
49
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
The outstanding balance as at 30 June 2021 is represented by:
•
A total of 1,315,000 options exercisable at any time until 6 September 2021 with an exercise price of $0.115.
•
A total of 1,450,000 options exercisable at any time until 31 December 2021 with an exercise price of $0.0525.
•
A total of 13,300,000 options exercisable at any time until 28 November 2022 with an exercise price of $0.10.
•
A total of 8,500,000 options exercisable at any time until 28 November 2022 with an exercise price of $0.12.
•
A total of 12,000,000 options exercisable at any time until 31 January 2024 with an exercise price of $0.20.
The weighted average remaining contractual life for the share options outstanding as at 30 June 2021 is 1.72 years (2020:
2.14 years).
The range of exercise prices for options outstanding at the end of the year was $0.0525 - $0.20 (2020: $0.0525 - $0.12).
Share options issued to directors
No share options were issued to directors of the Company during the year.
i.
Trade payables are non-interest bearing and are normally settled on 30-day terms.
ii.
These funds have been received in advance for joint operation related exploration expenditure and have therefore
been recognised as restricted cash not available for general use by the Group.
iii.
Other payables are non-interest bearing and are normally settled within 30-90 days.
Information regarding the credit risk of current payables is set out in Note 27.
Note 16: Trade and other payables
Consolidated Group
30 June 2021
30 June 2020
$
$
Trade payables (i)
381,545
114,699
Joint operation funding received in advance (ii)
463,896
1,500,530
Net GST and PAYG payable
7,361
356
Accrued expenses
35,000
66,894
Funds received from Andromeda Metals Ltd relating to Natural
Nanotech Pty Ltd
537,258
150,000
Other payables (iii)
11,393
8,459
1,436,453
1,840,938
2021 Number
2021 WAEP
2020 Number
2020 WAEP
Outstanding at the beginning of the year
36,230,000
$0.10
15,135,000
$0.11
Granted during the year
12,000,000
$0.07
26,200,000
$0.08
Exercised during the year
(11,665,000)
-
-
-
Expired during the year
-
-
(5,105,000)
$0.06
Outstanding at the end of the year
36,565,000
$0.14
36,230,000
$0.10
Exercisable at the end of the year
36,565,000
$0.14
36,230,000
$0.10
The following table illustrates the number and weighted average exercise prices (WAEP) and movements in share options
under the Company’s Employee Share Option Plan issued during the year:
Annual Report 2021
50
(i)
Bank borrowings reflect a secured interest and principal loan relating to the Group’s property located in Cloncurry,
Queensland. The loan is fully offset by unrestricted cash and there are no annual renewal or review terms.
(ii) In the Company’s ASX Release dated 14 May 2019, the Company announced it had entered into a ‘loan carry’
arrangement with OZ Minerals Ltd through to commercial production from the Jericho copper deposit. In return, OZ
Minerals’ beneficial ownership of the Jericho JV increased from 70% to 80% (Minotaur 20%), effective 1 April 2019.
From that date, loan amounts advanced by OZ Minerals to the Company will be non-recourse and only repayable out
of positive cash flow from production at Jericho.
Note 17: Borrowings
Consolidated Group
30 June 2021
30 June 2020
$
$
Current
Bank borrowings (i)
23,504
23,504
23,504
23,504
Non-current
Bank borrowings (i)
294,733
318,237
Jericho project loan carry arrangement (ii)
950,812
928,560
1,245,545
1,246,797
Note 18: Provisions
Consolidated Group
30 June 2021
30 June 2020
$
$
Current
Annual leave provision
43,787
70,724
Long service leave provision
300,633
298,106
344,420
368,830
Non-current
Long service leave provision
-
24,663
-
24,663
Note 19: Issued capital
501,339,148 fully paid ordinary shares (2020: 370,085,045)
55,917,752
48,166,080
Minotaur Exploration
51
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
2021
2020
Number
$
Number
$
Balance at beginning of financial year
370,085,045
49,684,911
334,396,917
48,166,080
Issue of shares as part consideration for the acquisition of
the Pyramid project
644,330
100,000
-
-
Issue of shares as part consideration for the acquisition of
the Windsor project
-
-
5,688,128
150,000
Issue of shares from the exercise of share options
7,296,123
306,470
-
-
Issue of shares through Placement and Share Purchase
Plan
123,313,650
6,165,683
30,000,000
1,500,000
Transaction costs on shares issued
N/A
(339,312)
N/A
(131,169)
Balance at end of financial year
501,339,148
55,917,752
370,085,045
49,684,911
Fully paid ordinary shares carry one vote per share and carry the right to dividends (in the event such a dividend was
declared).
Note 20: Reserves
Consolidated Group
30 June 2021
30 June 2020
$
$
Reserves
Share option reserve (a)
1,164,351
559,521
FVOCI reserve (b)
245,348
(759,714)
1,409,699
(200,193)
(a) Share option reserve
Balance at beginning of financial year
559,521
1,147,705
Issue of options to employees and officers under employee share
option plan
772,800
45,250
Issue of options to directors of the Company
-
295,800
Share options exercised during the year
(167,970)
-
Transfer to retained earnings upon lapse of options
-
(929,234)
Balance at end of financial year
1,164,351
559,521
The share option reserve comprises the fair value of options issued to employees under the Company’s Employee Share
Option Plan and to directors of the Company.
During the period unlisted share options were issued to employees under the Company’s Employee Share Option Plan. The
unlisted share options were issued under the following terms and conditions:
Number of Options Issued
Exercise Price
Expiry Date
Unlisted options issued to employees of the Company
12,000,000
$0.20
31/1/2024
Annual Report 2021
52
All options listed above issued during the period are exercisable at the date the options are issued.
Share-based payments to employees issued under the Company’s Employee Share Option Plan and to directors of the
Company are measured at the fair value of the instruments issued and amortised over the vesting periods or expensed
immediately if these vest on grant date.
Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of
the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are
recorded at the date the goods or services are received.
The corresponding amount is recorded to the share option reserve. The fair value of options is determined using the Black-
Scholes pricing model. The valuation inputs used in determining the fair value at grant date were as follows:
Share price at grant date:
$0.155
Expected volatility:
75.53%
Risk free rate:
0.14%
Fair value at grant date:
$0.064
Consolidated Group
30 June 2021
30 June 2020
$
$
(b) FVOCI reserve
Balance at beginning of financial year
(759,714)
(185,495)
Transfer to accumulated losses upon disposal of listed shares
(67,418)
123,609
Net revaluation (decrement)/increment
1,072,480
(697,828)
Balance at end of financial year
245,348
(759,714)
The FVOCI reserve comprises the cumulative net change in the fair value of shares held in listed companies.
Note 21: Accumulated Losses
Consolidated Group
30 June 2021
30 June 2020
$
$
Balance at beginning of financial year
(42,377,123)
(40,063,007)
Net loss attributable to members of the parent entity
(2,780,295)
(3,119,741)
Transfer from FVOCI reserve upon disposal of listed shares
67,418
(123,609)
Transfer from share option reserve – lapsed options
-
929,234
Balance at end of financial year
(45,090,000)
(42,377,123)
Note 22: Commitments for expenditure
Exploration licences
In order to maintain current rights of tenure to exploration tenements the Group will be required to outlay in the year
ending 30 June 2021 amounts of approximately $3.38m in respect of exploration licence rentals and related items and to
meet minimum expenditure requirements. It is expected that of the minimum expenditure requirement, $1.64m will be
funded by the Group and $1.73m will be funded by JV partners. The net obligation to the Group is expected to be fulfilled in
the normal course of operations.
Minotaur Exploration
53
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Minotaur Gold Solutions Pty
Ltd
$
Altia Resources Pty
Ltd
$
Total
$
Carrying amounts of net assets over which
control was lost
Assets
Held-for-sale assets
549,531
65,845
615,376
549,531
65,845
615,376
Liabilities
-
-
-
Net assets derecognised
549,531
65,845
615,376
Consideration received:
Fair value of equity received in Auroch
Minerals Ltd (ASX: AOU)
1,473,450
176,550
1,650,000
Fair value of shares in Auroch Minerals Ltd (ASX: AOU) allotted to the Group:
Number of shares
18,333,333
Closing share price on date of allotment
$0.09
Date of allotment
29/08/2019
Note 24: Auditor’s remuneration
Consolidated Group
30 June 2021
30 June 2020
$
$
Audit or review of the financial report
58,042
50,333
Taxation compliance
52,050
14,700
Total auditor’s remuneration
110,092
65,033
Note 23: Disposal of subsidiaries
As referred to in Note 8 to the financial statements, on 29 August 2019 the Group successfully completed the sale of 100%
of its shares in Minotaur Gold Solutions Pty Ltd and Altia Resources Pty Ltd.
Details of the disposal are as follows:
Note 25: Contingent liabilities and contingent assets
At the date of signing this report, the Group is not aware of any Contingent Asset or Liability that should be disclosed in
accordance with AASB 137. It is however noted that the Company has established various bank guarantees in place with
a number of State Governments in Australia, totalling $255,000 at 30 June 2021 (2020: $218,500). These guarantees are
designed to act as collateral over the tenements which Minotaur explores on and can be used by the relevant Government
authorities in the event that Minotaur does not sufficiently rehabilitate the land it explores on. It is noted that the bank
guarantees have, as at the date of signing this report, never been utilised by any State Government.
Annual Report 2021
54
Note 26: Controlled entities
Ownership interest
Name of Entity
Country of incorporation
2021 %
2020 %
Parent entity
Minotaur Exploration Limited
Australia
Subsidiaries
Minotaur Gold Mines Pty Ltd (i)
Australia
100
-
Minotaur Operations Pty Ltd
Australia
100
100
Minotaur Resources Investments Pty Ltd
Australia
100
100
Minotaur Industrial Minerals Pty Ltd
Australia
100
100
Great Southern Kaolin Pty Ltd
Australia
100
100
Breakaway Resources Pty Ltd
Australia
100
100
Levuka Resources Pty Ltd
Australia
100
100
BMV Properties Pty Ltd (ii)
Australia
-
100
Natural Nanotech Pty Ltd
Australia
100
100
i)
On 12 November 2020, Minotaur Gold Mines Pty Ltd was incorporated as a proprietary company limited by shares.
ii)
On 30 June 2021, BMV Properties Pty Ltd was deregistered as a Company.
Note 27: Financial assets and liabilities
Note 1(f) provides a description of each category of financial assets and financial liabilities and the related
accounting policies. The carrying amounts of financial assets and financial liabilities in each category are as
follows:
30 June 2021
Financial Assets
Note
Equity instruments
at FV through OCI
$
Cash
$
Loans &
Receivables
$
Total
$
(Carried at fair value)
(Carried at amortised cost)
Cash and cash equivalents
7
-
5,089,698
-
5,089,698
Trade and other receivables
8
-
-
705,099
705,099
Equity instruments
11, 29
302,350
-
-
302,350
302,350
5,089,698
705,099
6,097,147
Financial Liabilities
Note
Payables
$
Borrowings
$
Lease Liabilities
$
Total
$
(Carried at amortised cost)
Trade and other payables
16
1,436,452
-
-
1,436,452
Lease liabilities
14
-
-
692,496
692,496
Current borrowings
17, 27(a)
-
23,504
-
23,504
Non-current borrowings
17, 27(a)
-
1,245,547
-
1,245,547
1,436,452
1,269,051
692,492
3,397,999
Minotaur Exploration
55
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
30 June 2020
Financial Assets
Note
Equity instruments
at FV through OCI
$
Cash
$
Loans &
Receivables
$
Total
$
(Carried at fair value)
(Carried at amortised cost)
Cash and cash equivalents
7
-
2,420,189
-
2,420,189
Trade and other receivables
8
-
-
434,485
434,485
Equity instruments
11, 29
901,655
-
-
901,655
901,655
2,420,189
434,485
3,756,329
Financial liabilities
Note
Payables
$
Borrowings
$
Lease Liabilities
$
Total
$
(Carried at amortised cost)
Trade and other payables
16
1,840,938
-
-
1,840,938
Lease Liabilities
14
-
-
892,055
892,055
Current borrowings
17, 27(a)
-
23,504
-
23,504
Non-current borrowings
17, 27(a)
-
1,246,797
-
1,246,797
1,840,938
1,270,301
892,055
4,003,294
A description of the Group’s financial instrument risks, including risk management objectives and policies is given in Note 28.
The methods used to measure financial assets and liabilities reported at fair value are described in Note 29.
27(a) Borrowings
Borrowings include the financial liabilities:
Current
Non-current
Financial Liabilities
2021
2020
2021
2020
Carried at amortised cost
Borrowings
23,503
23,503
1,245,547
1,246,797
23,503
23,503
1,245,547
1,246,797
All borrowings are denominated in AUD.
There are no covenants on the borrowings.
Borrowings at amortised cost
Bank borrowings are secured by land and buildings owned by the Group (see Note 12). Current interest rates are variable
and average 4.32% (2020: 4.52%). The carrying amount of bank borrowings is considered to be a reasonable approximation
of the fair value.
Other financial instruments
The carrying amount of the following financial assets and liabilities is considered to be a reasonable approximation of the
fair value:
•
Trade and other receivables;
•
Cash and cash equivalents; and
•
Trade and other payables
Annual Report 2021
56
At the reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held constant,
the Group’s net loss would increase or decrease by $18,775 which is mainly attributable to the Group’s exposure to interest
rates on its variable bank deposits.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, which has built an appropriate liquidity
risk management framework for the management of the Group’s short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves.
Liquidity and interest risk tables
The following table details the Company’s and the Group’s remaining contractual maturity for its non-derivative financial
liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the Group can be required to pay. The table includes both interest and principal cash flows.
Consolidated
Weighted average
effective interest rate
%
Less than 1 year
$
2021
Variable interest rate
0.07
$5,089,698
2020
Variable interest rate
0.11
$2,420,189
Note 28: Financial risk management
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders. The capital structure of the Group consists of cash and cash equivalents and equity
attributable to equity holders of the parent, comprising issued capital, reserves and accumulated losses as disclosed in
Notes 19, 20, 21 respectively. Proceeds from share issues are used to maintain and expand the Group’s exploration activities
and fund operating costs.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of
financial loss from activities.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of counterparties
having similar characteristics. The credit risk on liquid funds is limited because the counterparties are banks with high
credit-ratings assigned by international credit-rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the
Group’s maximum exposure to credit risk.
Interest rate risk
The tables listed below detail the Group’s interest bearing assets, consisting solely of cash on hand and on short term
deposit (with all maturities less than one year in duration).
Minotaur Exploration
57
FINANCIAL REPORT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
Consolidated
Weighted average
effective interest rate
%
Less than 1 year
$
Longer than 1 year
and not longer than
5 years
$
Longer than 5
years
$
2021
Interest bearing
4.32
23,503
94,012
200,722
Non-interest bearing
-
1,436,452
-
-
2020
Interest bearing
4.52
23,503
94,012
224,225
Non-interest bearing
-
1,840,938
-
-
Equity instrument risk management
Ultimate responsibility for the Group’s investments in equity instruments rests with the Board. The Board actively manages
its investments by reviewing the market value of the Group’s portfolio periodically at board meetings and making
appropriate investment decisions.
Note 29: Fair Value Measurement
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into
three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the
measurement, as follows:
•
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 or indirectly
•
Level 3: unobservable inputs for the asset or liability
The following table shows the Levels within the hierarchy of financial assets and liabilities measured at fair value on a
recurring basis at 30 June 2021 and 30 June 2020:
30 June 2021
Level 1
$
Level 2
$
Level 3
$
Level 4
$
Financial assets at fair value
Equity instruments designated at FVOCI
Equity instruments
302,350
-
-
302,350
302,350
-
-
302,350
30 June 2020
Level 1
$
Level 2
$
Level 3
$
Level 4
$
Financial assets at fair value
Equity instruments designated at FVOCI
Equity instruments
901,655
-
-
901,655
901,655
-
-
901,655
There were no transfers between Level 1 and Level 2 in 2021 or 2020.
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have been based on
the closing quoted bid prices at the end of the reporting period, excluding transaction costs.
Annual Report 2021
58
30 June 2021
30 June 2020
$
$
Salaries and fees including bonuses
702,239
734,831
Total short term employee benefits
702,239
734,831
Superannuation
17,828
31,767
Total post-employment benefits
17,828
31,767
Share based payments
138,460
301,150
Total share based payments
138,460
301,150
Total remuneration
858,527
1,067,748
Note 30: Related party disclosure and key management personnel remuneration
Transactions with key management personnel
The following individuals are classified as key management personnel in accordance with AASB 124 ‘Related Party
Disclosures’:
Directors
Dr Antonio Belperio, Non-Executive Director
Dr Roger Higgins, Non-Executive Chairman
Mr George McKenzie, Non-Executive Director
Mr Andrew Woskett, Managing Director
Other key management personnel
Mr Varis Lidums, Commercial Manager and Company Secretary
Key management personnel remuneration includes the following expenses:
Dr Belperio also provides consulting services to the Group as and when required. The total amount paid to Dr Belperio, in
addition to his director’s fees detailed above, relating to consulting services for the year was $26,460.
Transactions with associates
Throughout the year no transactions took place between Minotaur Exploration Limited and any associates (2020: $Nil). In
addition, no amounts were owed by any associates at the end of the year (2020: $Nil).
Director and key management personnel related entities
Throughout the year $57,854 (2020: $57,020) (inclusive of GST) was paid to a related entity of Dr Antonio Belperio under a
commercial lease agreement for the use of warehouse space located at Magill, South Australia.
Throughout the year, no other transactions took place between Minotaur Exploration Limited and any director or key
management personnel related entities.
Wholly owned Group transactions
The entities comprising the wholly owned Group and ownership interests in these controlled entities are set out in Note 26.
Transactions between Minotaur Exploration Limited and other entities in the wholly owned Group during the year consisted
of loans advanced by Minotaur Exploration Limited to fund exploration activities.
Note 31: Post-reporting date events
No matter or circumstance has arisen since 30 June 2021 that has significantly affected the Group’s operations, results or
state of affairs, or may do so in the future.
Minotaur Exploration
59
The directors of the Company declare that:
1.
the consolidated financial statements and notes, as set out on pages 21 to 58, are in accordance with the Corporations
Act 2001 and:
a.
comply with Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements,
constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and
b.
give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended
on that date of the Company and Consolidated Group;
2.
the Managing Director and Company Secretary have each declared that:
c.
the financial records of the Company for the financial year have been properly maintained in accordance with s
286 of the Corporations Act 2001;
d.
the financial statements and notes for the financial year comply with Accounting Standards; and
e.
the financial statements and notes for the financial year give a true and fair view; and
3.
in the directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Roger Higgins
Chairman
Dated this 24th day of September 2021
DIRECTORS’ DECLARATION
Annual Report 2021
60
INDEPENDENT AUDITOR’S REPORT
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
www.grantthornton.com.au
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6668
Independent Auditor’s Report
To the Members of Minotaur Exploration Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Minotaur Exploration Limited (the Company), which comprises the statement of
financial position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of
changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
including:
a
Giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year
ended on that date; and
b
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Minotaur Exploration
61
INDEPENDENT AUDITOR’S REPORT
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets - Notes 1, 4 & 13
As at 30 June 2021 the carrying value of exploration and
evaluation assets was $8,536,074.
In accordance with AASB 6 Exploration for and Evaluation
of Mineral Resources, the Group is required to assess at
each reporting date if there are any triggers for impairment
which may suggest the carrying value is in excess of the
recoverable value.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to the
general ledger;
reviewing management’s area of interest considerations
against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in accordance with
AASB 6 including;
tracing projects to statutory registers, exploration
licenses and third party confirmations to determine
whether a right of tenure existed;
enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure;
understanding whether any data exists to suggest that
the carrying value of these exploration and evaluation
assets are unlikely to be recovered through
development or sale;
assessing the accuracy of impairment recorded for the
year as it pertained to exploration interests;
evaluating the competence, capabilities and objectivity of
management’s experts in the evaluation of potential
impairment triggers; and
assessing the appropriateness of the related financial
statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Company’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and 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.
Annual Report 2021
62
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 Company’s ability 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 Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar2_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 the Directors’ report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Minotaur Exploration Limited, for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 24 September 2021
Minotaur Exploration
63
ADDITIONAL ASX INFORMATION
Tenement Listings as at 22 October 2021
Lease ID
Lease Name
State
Holding Company
Minotaur Equity
or Equity Earned
%
JV Partner
Cloncurry (Regional)
MDL432
Altia
QLD
Levuka Resources
40
Sandfire Resources has 60% equity in the
tenement
Highlands Project
EPM16197
Blockade
QLD
Minotaur Operations
100
EPM17914
Blockade East
QLD
Minotaur Operations
100
EPM17947
Blockade East
Extension
QLD
Minotaur Operations
100
EPM19733
Mt Remarkable
Consolidated
QLD
Minotaur Operations
100
EPM18492
Mt Remarkable
Extension
QLD
Minotaur Operations
100
EPM17638
Phillips Hill
QLD
Minotaur Operations
100
EPM14281
Yamamilla
QLD
Minotaur Operations
100
Pyramid Project
EPM 12887
Pyramid
QLD
Minotaur Gold Mines
100
EPM 25154
Pyramid 2
QLD
Minotaur Gold Mines
100
EPM 19554
Pyramid 3
QLD
Minotaur Gold Mines
100
Windsor Project
EPM27426
Crooked Creek
QLD
Minotaur Operations
100
EPM25135
Liontown 3
QLD
Minotaur Operations
100
EPM25134
Liontown 4
QLD
Minotaur Operations
100
EPM25148
Liontown 5
QLD
Minotaur Operations
100
EPM25270
Liontown 6
QLD
Minotaur Operations
100
EPM25271
Liontown 7
QLD
Minotaur Operations
100
EPM25437
Liontown 8
QLD
Minotaur Operations
100
EPM25680
Liontown 9
QLD
Minotaur Operations
100
Jericho Joint Venture (OZ Minerals)
EPM25389
Fullarton
QLD
Minotaur Operations
20
OZ Minerals 80% in portion of the tenement
EPM26233
Route 66
QLD
Minotaur Operations
20
OZ Minerals 80% in portion of the tenement
MDL431
Eloise
QLD
Levuka Resources
20
OZ Minerals 80% in portion of the tenement,
Sandfire Resources 60% in portion of the
tenement
EPM17838
Levuka
QLD
Levuka Resources
20
OZ Minerals 80% in portion of the tenement
Sandfire Resources 60% in portion of the
tenement
Eloise Joint Venture (OZ Minerals)
MDL431
Eloise
QLD
Levuka Resources
30
OZ Minerals 70% in portion of the tenement,
Sandfire Resources 60% in portion of the
tenement
EPM25389
Fullarton
QLD
Minotaur Operations
30
OZ Minerals 70% in portion of the tenement
EPM26233
Route 66
QLD
Minotaur Operations
30
OZ Minerals 70% in portion of the tenement
EPM26703
Holy Joe
QLD
Minotaur Operations
30
OZ Minerals 70%
EPM17838
Levuka
QLD
Levuka Resources
30
OZ Minerals 70% in portion of the tenement,
Sandfire Resources 60% in portion of the
tenement
EPM27052
Matilda
QLD
Minotaur Operations
30
OZ Minerals 70%
EPM18624
Oorindi Park
QLD
Minotaur Operations
30
OZ Minerals 70%
EPM26684
Pink Hut
QLD
Minotaur Operations
30
OZ Minerals 70%
Annual Report 2021
64
Tenement Listings as at 22 October 2021 (cont.)
Lease ID
Lease Name
State
Holding Company
Minotaur Equity
or Equity Earned
%
JV Partner
Eloise Joint Venture (OZ Minerals) (cont.)
EPM25238
Saxby
QLD
Minotaur Operations
30
OZ Minerals 70%
EPM27279
Swagman
QLD
Levuka Resources
30
OZ Minerals 70%
EPM26521
Sybellah
QLD
Minotaur Operations
30
OZ Minerals 70%
Industrial Minerals Project
EL6128
Camel Lake
SA
Great Southern Kaolin
25
Andromeda Industrial Minerals Pty Ltd 75%
ELA5502
Casterton South
VIC
Minotaur Industrial Minerals
0
ELA2019/73
Dromedary
SA
Minotaur Operations
0
EL6426
Mount Cooper
SA
Great Southern Kaolin
25
Andromeda Industrial Minerals Pty Ltd 75%
EL6202
Mount Hall
SA
Great Southern Kaolin
25
Andromeda Industrial Minerals Pty Ltd 75%
EL6285
Sceales
SA
Minotaur Operations
100
MC4510
Mineral Claim 4510
SA
Great Southern Kaolin
25
Andromeda Metals Limited 75%
EL6588
Tootla
SA
Great Southern Kaolin
25
Andromeda Industrial Minerals Pty Ltd 75%
EL6096
Whichelby
SA
Great Southern Kaolin
25
Andromeda Industrial Minerals Pty Ltd 75%
EL6682
Yanerbie
SA
Minotaur Operations
100
Peake & Denison Project
EL6221
Big Perry
SA
Minotaur Operations
100
EL6270
Davenport
SA
Minotaur Operations
100
EL6222
Teemurrina
SA
Minotaur Operations
100
EL6223
Wood Duck
SA
Minotaur Operations
100
Other Projects
EL6465
Blinman
SA
Perilya
10
Perilya Ltd 90%, MEP 10% free carried to BFS
completion
EL5117
Ediacara
SA
Perilya
10
Perilya Ltd 90%, MEP 10% free carried to BFS
completion
ML4386
Third Plain
SA
Perilya
10
Perilya Ltd 90%, MEP 10% free carried to BFS
completion
EL6504
Wilkawillina
SA
Perilya
10
Perilya Ltd 90%, MEP 10% free carried to BFS
completion
EL5984
Moonta
SA
Peninsula Resources
10
Peninsula Resources (Interest in portion of
the tenement)
M15 395
West Kambalda
WA
Maximus Resources
1.5% NSR
M15 703
West Kambalda
WA
Maximus Resources
1.5% NSR
L15 128
West Kambalda
WA
Maximus Resources
1.5% NSR
L15 255
West Kambalda
WA
Maximus Resources
1.5% NSR
E15 1688
West Kambalda
WA
Mariner Mining
1.5% NSR
E15 1689
West Kambalda
WA
Spargoville Minerals
1.5% NSR
1.5% NSR = 1.5% NSR all minerals other than Nickel
Minotaur Exploration
65
Additional information required by the Australian Securities Exchange Ltd and not shown elsewhere in this
report is as follows. The information is current as at 22 October 2021.
DISTRIBUTION OF EQUITY SECURITIES
Ordinary share capital
501,339,148 fully paid ordinary shares are held by 3,514 shareholders.
All issued ordinary shares carry one (1) vote per share and carry the rights to dividend.
Options
20,730,000 unlisted options are held by 16 option holders. The number of holders, by size of holding, in
each class are:
Fully paid
Ordinary shareholders
Number
%
Yarraandoo Pty Ltd
26,441,569
5.27
Fully paid ordinary shares
Twenty largest holders of quoted equity securities
Number
%
Yarraandoo Pty Ltd
26,441,569
5.27
Mr Craig Alex Barrett
10,433,368
2.08
Mr George David Butkeraitis
8,455,576
1.69
Oz Minerals Limited
8,041,670
1.60
Chetan Enterprises Pty Ltd
7,299,000
1.46
BNP Paribas Nominees Pty Ltd
7,082,078
1.41
Citicorp Nominees Pty Limited
6,513,738
1.30
Surpion Pty Ltd
6,500,000
1.30
Mr Sean Vereker Shepperson
6,267,372
1.25
Mr William Mcarthur
6,084,400
1.21
Mr Kalpesh Varsani & Mrs Rita Varsani
4,735,000
0.94
Mr Robert Lloyd Blesing
4,727,292
0.94
Mr Wei Guo Fan & Ms Hong Ji
4,214,722
0.84
Mr John Philip Daniels
3,767,817
0.75
Netwealth Investments Limited
3,464,160
0.69
H & A Frigger Pty Ltd
3,400,000
0.68
Mr Kirk Peter Lindesay
3,193,530
0.64
Hsbc Custody Nominees (Australia) Limited
3,109,186
0.62
LJ & K Thomson Pty Ltd
3,000,000
0.60
Mr Derek Robert Mc Comber & Mrs Susan Mc Comber
3,000,000
0.60
RJ & KE Super Fund Pty Ltd
3,000,000
0.60
132,730,478
26.48
Shareholdings as at 22 October 2021
Ordinary Shares
Unlisted Options
Range
Holders
% Shares
Holders
% Options
1 - 1,000
195
0.01
0
-
1,001 - 5,000
358
0.26
0
-
5,001 - 10,000
487
0.79
0
-
10,001 - 100,000
1,752
13.49
0
0
100,000 and over
722
85.44
16
100
3,514
100
16
100
Holding less than a marketable parcel
361
ADDITIONAL ASX INFORMATION
SUBSTATIAL SHAREHOLDERS
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