1 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
ANNUAL REPORT
for the financial year ended to 30 June 2021
Page
Corporate Directory ................................................................................................................................................................................................................................................................................................ 1
Chairman’s Letter ..................................................................................................................................................................................................................................................................................................... 2
Directors’ Report ...................................................................................................................................................................................................................................................................................................... 3
Independence Declaration to the Directors of Miramar Resources Limited ......................................................................................................................................................................... 19
Directors’ Declaration ......................................................................................................................................................................................................................................................................................... 20
Independent Auditor’s Report to the Members of Miramar Resources Limited ................................................................................................................................................................ 21
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................................................................................................................... 25
Consolidated Statement of Financial Position ....................................................................................................................................................................................................................................... 26
Consolidated Statement of Changes in Equity ..................................................................................................................................................................................................................................... 27
Consolidated Statement of Cash Flows .................................................................................................................................................................................................................................................... 28
Notes to the Consolidated Financial Statements ................................................................................................................................................................................................................................. 29
CORPORATE DIRECTORY
Board of Directors
Executive Chairman
Technical Director
Non-Executive Director
Mr Allan Kelly
Ms Marion Bush
Mr Terry Gadenne
Principal Office
Unit 1, 22 Hardy Street,
South Perth, Western Australia 6151
Registered Office
Unit 1, 22 Hardy Street,
South Perth, Western Australia 6151
Postal Address
PO Box 810,
South Perth, Western Australia 6951
Contact Details
+61 8 6166 6302 (Telephone)
info@miramarresources.com.au (Email)
www.miramarresources.com.au (Website)
ABN 34 635 359 965
1 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
Company Secretary
Company Secretary
Mrs Mindy Ku
Auditors
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade
Perth, Western Australia, 6000
Share Registry
Automic
Level 2/267 St George’s Terrace
Perth, Western Australia, 6000
1300 288 664 (Telephone)
www.automicgroup.com.au (Website)
Lawyers
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street, Perth, Western Australia, 6000
DIRECTORS’ REPORT
CHAIRMAN’S LETTER
Dear Shareholder,
On behalf of the Board of Miramar Resources Limited (Miramar or the
Company), it gives me great pleasure to present the Company’s first Annual
Report since listing on the ASX in October 2020.
Late in the reporting period, Miramar commenced the first drilling
campaigns at the Company’s second flagship project, Glandore, located
approximately 40km east of Kalgoorlie.
The Company compiled a portfolio of highly prospective exploration
projects throughout Western Australia last year and completed a heavily
oversubscribed Initial Public Offering (IPO) raising $8 million before listing
on the ASX on 22 October 2020 at a significant premium to the IPO price. I
would like to take the opportunity to thank Shaw and Partners for managing
the IPO process.
Soon after listing, Miramar commenced work on the Gidji JV Project, located
approximately 15km north of Kalgoorlie. The Company believes the Gidji
Project is very poorly explored despite its close proximity to a number of
existing gold mining and/or processing operations.
The Company’s view of the prospectivity of Gidji was confirmed with high-
grade gold results coming from the first aircore drilling programme,
specifically from the newly defined “Marylebone” target.
Miramar soon recognised several similarities between the geology, structure
and scale of Marylebone and the nearby Paddington deposit, which
produced approximately 4 million ounces of gold.
Subsequent aircore drilling and ground magnetic surveys have expanded
and upgraded the Marylebone target and reinforced its likeness to
Paddington. In addition, results released after the end of the reporting
period have now outlined gold mineralisation over at least 2 kilometres of
strike.
As of the date of this letter, the target remains open along strike in both
directions and virtually untested at depth.
Further aircore and deeper drilling is planned for the upcoming year and the
Company is excited about the opportunity to make a large new gold
discovery at Marylebone, in close proximity to Kalgoorlie.
Glandore has some significant historical drill results that have only been
sporadically followed up, andMiramar believes it has the potential to host a
significant new gold discovery. The Company looks forward to results of the
first drilling programmes including drilling on Lake Yindarlgooda.
In parallel to the systematic exploration at Gidji and preparations for drilling
at Glandore, the Company has been busy behind the scenes across several
other projects.
Miramar sold the Garden Gully Project to Sipa Resources for cash and shares
and applied for new tenements to add to its strategic landholding in the
Bangemall region, an emerging Ni-Cu-PGE province whose prospectivity
has been recognised both by Geoscience Australia and the Geological
Survey of Western Australia.
Just after the end of the reporting period, the Company completed a surface
geochemical survey over the Whaleshark Project near Onslow, and the
Company is planning to complete aircore drilling at the Lang Well Project,
located in a prime position between the Deflector and Rothsay gold mines
in the Murchison region.
I would like to take the opportunity to thank our Board members,
employees, contractors and consultants for their contribution to the
Company so far, and to thank our shareholders for their ongoing support
and belief in the Company’s projects and people.
Allan Kelly
Executive Chairman
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 2
DIRECTORS’ REPORT
OPERATIONAL REVIEW
EASTERN GOLDFIELDS PROJECTS
Miramar has three projects in the Eastern Goldfields with the potential for new gold discoveries within proximity to existing mining and/or processing
operations (Figure 1).
GIDJI JV PROJECT (Miramar 80%)
Figure 1. Eastern Goldfields Projects showing proximity to existing gold operations.
The Gidji JV Project is located approximately 15km north of Kalgoorlie and is located within a major regional structure, the “Boorara Shear Zone”, which hosts
gold mineralisation at Paddington, approximately 10km to the northwest, and Horizon Minerals’ “Boorara” gold operation to the southeast (Figure 1).
The project has been poorly explored despite its location in proximity to these major gold deposits.
Soon after listing on the ASX in October 2020, Miramar conducted an initial aircore drilling campaign at Gidji which outlined four new targets and returned
results up to 2m @ 7.69g/t Au in quartz vein material from the Marylebone target.
The Company quickly recognised several apparent similarities between Marylebone and the Paddington deposit to the northwest.
Marylebone is related to an apparent dilational jog in the Boorara Shear Zone crosscut by a series of N-S trending structures. The local geology is characterised
by a sequence of NW-trending mafic and ultramafic rocks within the Boorara Shear Zone, adjacent to volcaniclastic rocks of the Black Flag Beds.
The footprint of the anomalism at Marylebone is also similar to that of the Paddington deposit.
The Phase 2 aircore campaign was completed in April and aimed to infill the drill spacing to 150-200m x 50m over key areas identified by the Phase 1 drilling.
The results of the Phase 2 drilling campaign extended and upgraded the four main targets at Gidji, including Marylebone.
3 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
Given the increasing similarities between the
Marylebone target and Paddington, a detailed
ground magnetic survey was completed during
May/June with 25m-spaced
lines oriented
perpendicular to the NW trending stratigraphy.
The survey helped refine the local geology and
structure and reinforced the similarities between
Marylebone and Paddington.
Further aircore drilling was completed at
Marylebone during June and results were
pending at the end of the year.
Miramar aims to complete further exploration at
Gidji including the following:
Further aircore drilling to define the lateral
extents of Marylebone
Extending the existing ground magnetic
survey along strike
Deeper testing of Marylebone with RC
and/or diamond drilling
In addition, the Company is working towards the
granting of several tenements which will almost
double the total area of the Gidji JV Project.
The applications contain several additional
targets to those already tested, including an
obvious dilational jog in the Boorara Shear Zone.
DIRECTORS’ REPORT
Figure 2. Gidji JV Project showing location in relation to nearby deposits.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 4
DIRECTORS’ REPORT
Figure 3. Marylebone Prospect showing all drilling to date.
5 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
RC Drilling
Following completion of the Phase 2 aircore
programme, a series of RC holes were planned
to test the Marylebone target where aircore
drilling was ineffective due to a silcrete layer.
A RC rig was secured at short notice and an
initial programme of 6 holes, totalling 900m,
was
the Piccadilly,
testing
Marylebone and Railway targets.
completed
Results were pending at the end of the year.
Diamond Drilling
During March/April, three diamond holes were
drilled at the 8-Mile target to test for a potential
northern extension to the adjacent Runway
deposit (7Mt @ 1.39g/t Au for 313koz Au).
Two holes, GJDD001 and GJDD002, were
drilled approximately 60m north of the
northernmost KCGM drill holes, EMD0028 and
29 which had sporadic high-grade gold
mineralisation in quartz veins in the hanging
wall sediments but no significant mineralisation
in the Runway “porphyry” itself.
The two new diamond holes intersected the
same geological sequence seen at Runway,
along with a sulphidised quartz breccia, and
established
the prospective
“porphyry” unit.
the dip of
GJDD002 intersected coarse visible gold in a
thin quartz-sulphide veinlet in the hanging wall
sandstone at 121m downhole. This vein
returned a result of 1m @ 2.79g/t Au.
A similar vein was observed in GJDD001 which
returned a result of 1m @ 0.53g/t Au. The
Runway “porphyry” itself was only weakly
mineralised on this section.
Given the observations from the first two holes,
and the shorter than expected hole depths, a
third hole
completed
(GJDD003) was
approximately 50m north of GJDD001 and
GJDD002.
GJDD003 intersected a similar sequence of
rocks and confirmed the strike of the west
dipping “porphyry”, however no significant
results were obtained from this hole.
As a result, no further work is planned for the 8-
Mile target at this stage.
GLANDORE
The Glandore Project is located within the Eastern Goldfields,
approximately 40km east of Kalgoorlie, Western Australia and
covers approximately 42 square km. The project consists of 10
Prospecting Licences and one Exploration Licence, all of which
are granted.
The highest priority western part of the project is underlain by
a layered mafic sill intruding into basalt and sedimentary rocks.
The sill comprises varieties of dolerite and gabbro analogous to
the Golden Mile Dolerite.
The local geology has been folded into a north-plunging
antiform with the project located on the eastern limb, southeast
of the hinge zone which has been intruded by a granodiorite
and felsic porphyry dykes.
The prospective geology is overlain by up to 50m of recent
playa lake sediments which thin towards the west. Exploration
has been mostly limited to the western part of the project,
within the Prospecting Licences, and has been sporadic since
the late 1980’s.
Previous exploration including aircore drilling outlined a
significant area of anomalous gold on the eastern side of the
late granite pluton (Figure 4). Limited diamond drilling returned
significant results including 8m @ 22.5g/t Au, however most
sections have no systematic bedrock testing.
The western side of the granite pluton has not been tested for
over 2.5km of strike despite significant aircore results to the
south of Lake Yindarlgooda and apparent similarities to the
eastern target.
Final planning for the first phase of exploration was completed
during the June 2021 Quarter, including pegging and clearing
of a series of aircore holes to be completed south of the lake.
The Company commenced a gravity survey and this continued
in-between periods of wet weather which restricted access to
the lake surface.
The Company’s maiden land and lake aircore drilling
campaigns are scheduled to commence early in the September
2021 Quarter.
DIRECTORS’ REPORT
Figure 4. Glandore Project showing significant historical drill results.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 6
DIRECTORS’ REPORT
RANDALLS
The Randalls Project is located immediately east
of Silver Lake Resources Limited’s Maxwells and
Cockeyed Bob gold mines, approximately 70km
east of Kalgoorlie (Figure 5).
The project consists of a single Exploration
Licence Application (E25/596) and covers the
same folded Banded Iron Formation and
sediments that host the gold mineralisation
currently being mined by Silver Lake.
No work was completed during the Quarter as
the Company waits for the tenement to be
granted.
Figure 5. Randalls Project showing proximity to Silver Lake Resources gold operations.
7 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
DIRECTORS’ REPORT
MURCHISON REGION PROJECTS
Miramar has two under-explored projects in the Murchison region
Lang Well
Lakeside
LANG WELL
LAKESIDE
The Lang Well Project consists of a single Exploration Licence covering a large, remnant greenstone belt
located between the Deflector, Golden Grove and Rothsay gold operations (Figure 6).
No work was completed as the Company
waits for this tenement to be granted.
Historical rock chip sampling returned results from 0.10g/t up to 16g/t Au whilst auger drilling in 2010
identified several large +5km long gold +/-pathfinder anomalies which have not been drill tested.
The Company plans to complete aircore drilling at Lang Well within the second half of 2021.
GARDEN GULLY
The Company completed the sale of the three
tenements that make up the Garden Gully
Project
(see ASX
Announcement dated 22 June 2021).
to Sipa Resources
Figure 6. Lang Well Project location and regional geology.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 8
DIRECTORS’ REPORT
GASCOYNE REGION PROJECTS
Miramar has two projects within the Proterozoic Capricorn Orogen, in the Gascoyne region of Western Australia (Figure 7):
Whaleshark – folded BIF complex under Carnarvon Basin sediments
Bangemall – multiple applications over areas prospective for Ni-Cu-PGE mineralisation
Figure 7. Location map for Miramar’s Gascoyne region projects.
WHALESHARK
The Whaleshark Project is located 40km east of Onslow, WA, and consists of a single Exploration Licence, E08/3166.
The project is located within the north-western extension of the Proterozoic Capricorn Orogen and is characterised by a folded Banded Iron Formation (BIF)
complex under approximately 100m of Carnarvon Basin sediments (Figure 8).
Previous exploration included limited diamond drilling which intersected anomalous gold in the BIF.
The project has potential for Proterozoic BIF-hosted Au and Iron Oxide Cu-Au mineralisation.
At the end of the June 2021 Quarter, the Company commenced a programme of surface geochemical sampling over the BIF.
9 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
DIRECTORS’ REPORT
Figure 8. Magnetic image for Whaleshark Project showing geological interpretation and previous drilling.
BANGEMALL (NI-CU-PGE)
The Bangemall Project covers a series of major crustal-scale structures in the Capricorn Orogen between the
Yilgarn and Pilbara cratons (Figure 9).
The area has been highlighted by both the GSWA and Geoscience Australia as having high prospectivity for
Proterozoic craton margin Ni-Cu-PGE mineralisation like that seen in the Albany-Fraser Province (e.g. Nova-
Bollinger), the West Musgraves (e.g. Nebo-Babel) and the giant Voisey Bay and Norilsk deposits.
The project consists of several Exploration Licence applications that cover areas with:
proximity to major crustal-scale faults - confirmed by seismic traverses
numerous Proterozoic-aged dolerite dykes/sills with the same age as the West Musgraves
regional-scale stream sediment Ni-Cu-Pt-Pd anomalism from GSWA sampling
regional-scale airborne EM conductors
The area has seen substantial exploration for Cu-Pb-Zn but minimal exploration for Ni-Cu-PGE’s.
The Company is planning to conduct an airborne EM survey over the Mt Vernon target as soon as practicable
following discussions with the local pastoralist.
Figure 9. Regional geological setting for the Bangemall Project tenements.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 10
DIRECTORS’ REPORT
CORPORATE REVIEW
IPO AND ASX LISTING
Miramar Resources Limited (“Miramar” or “the Company”) listed on the ASX on 22 October 2020 following a heavily oversubscribed $8 million Initial Public
Offering.
CAPITAL STRUCTURE AS OF 30 JUNE 2021
Description
Fully paid ordinary shares
Unlisted options exercisable at $0.20 on or before 22 October 2022
Unlisted options exercisable at $0.48 on or before 6 January 2023
Unlisted options exercisable at $0.25 on or before 9 October 2023
Unlisted options exercisable at $0.20 on or before 26 June 2025
MARKETING
During the Year, the Company attended and/or presented at a number of events including:
•
•
AMEC Investor Briefing;
RIU Sydney Resources Roundup;
• Gold Coast Investment Showcase; and
•
Resources Roadhouse Investor Afternoon.
Numbers
55,060,100
8,210,000
50,000
6,000,000
3,000,000
11 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
DIRECTORS’ REPORT
BOARD OF DIRECTORS
The names and particulars of the Directors of the Company during the financial year and until the date of the report are:
Mr Allan Kelly, Executive Chairman (Appointed 6 August 2019)
Ms Marion Bush, Technical Director (Appointed 3 March 2020)
Mr Kelly is a geologist and manager with over
25 years’ experience in mineral exploration,
development and production throughout
Australia and the Americas.
Mr Kelly graduated in 1994 with a Bachelor of
Science (with honours) in Applied Geology
from Curtin University. He has been involved
in targeting early stage exploration of gold,
nickel and copper deposits in Australia,
Alaska and Canada and has previously held
senior exploration positions within Western
Mining Corporation and Avoca Resources
Limited. He has also served as an Executive Director of Riversgold Ltd and a
non-executive director of Alloy Resources Ltd.
In 2009, Mr Kelly founded Doray Minerals Limited, which listed on the ASX
in early 2010. Under Mr Kelly’s management, Doray discovered the high-
grade Wilber Lode gold deposit within the Andy Well Project in the
Murchison Region of Western Australia, which moved from discovery to
production within three and a half years, and subsequently funded,
constructed and commissioned the Deflector Gold-Copper Project within
14 months of completing the takeover of Mutiny Gold Limited in 2014.
In 2014, Mr Kelly was awarded the Association of Mining and Exploration
Companies (AMEC) ‘Prospector Award’, along with Doray’s co-founder Mr
Heath Hellewell, for the discovery of the Wilber Lode and Andy Well gold
deposits.
Mr Kelly is a Fellow and Former Councillor of the Association of Applied
Geochemistry (AAG), a Member of the Australian Institute of Geoscientists
(AIG) and a Member of the of the Institute of Brewing and Distilling (IBD).
Mr Kelly is responsible for the day-to-day management of the Company
and is the Chairman of the Board.
During the past 3 years Mr Kelly has also served as a director of the following
other listed companies:
Alloy Resources limited (10 February 2017 – 1 May 2019)
Riversgold Limited (24 February 2017 – 26 March 2019)
COMPANY SECRETARY
Mrs Mindy Ku (Appointed 26 June 2020)
Ms Bush is a geologist with over 25 years’
in
experience
senior management,
directorship,
commercial management,
analyst and marketing roles within the UK,
Australia, Africa, and South America. She was
the former CEO of TSX-V listed Cassidy Gold
Corp and a former Mining Analyst.
She holds a Bachelor of Science (Geology)
from Curtin University, a Master of Science
(Mineral Project Appraisal)
the
University of London (Imperial College), and
is Member of the Australian Institute of
Geoscientists (AIG).
from
During the past 3 years Ms Bush did not serve as a director on other listed
companies.
Mr Terry Gadenne, Non-Executive Director (Appointed 3 March 2020)
Mr Gadenne has over 30 years’ experience in
the military and civilian aviation, agriculture
and mining management roles. He was the
Chief Pilot of Mackay Helicopters Pty Ltd and
Managing Director of Mining Logic Pty Ltd
located in Queensland. He has also held
various board positions in not-for-profit
organisations.
He holds a Bachelor of Aviation Studies
the University of
(Management)
from
the
Western Sydney, has completed
Company Directors Course with AICD and
was a former army and navy pilot.
During the past 3 years Mr Gadenne did not serve as a director on other
listed companies.
Mrs Ku has over 15 years’ international experience in financial analysis, financial reporting, management accounting,
compliance reporting, board reporting, company secretarial services and office management across multiple jurisdictions
(Australia, Malaysia, UK, Sweden and Norway) including ASX listed public and private companies.
She holds a Bachelor of Science in Computing from the University of Greenwich, United Kingdom, is a Member of Certified
Practising Accountant Australia and a Fellow Member of the Governance Institute of Australia.
DIRECTORS’ RELEVANT INTEREST IN SHARES AND OPTIONS
At the date of this report the following table sets out the current Directors’ relevant interests in shares and options of Miramar Resources Limited and the
changes since 30 June 2021.
Director
Allan Kelly
Marion Bush
Terry Gadenne
Ordinary Shares
Options over Ordinary Shares
Current
Holding
6,707,293
435,000
200,000
Net Increase/
(decrease)
–
75,000
–
Current
Holding
2,000,000
1,360,000
1,200,000
Net Increase/
(decrease)
–
–
–
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 12
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The remuneration report is set out under the following main headings:
A.
B.
C.
D.
E.
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share–based compensation
Additional information
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
A.
Principles used to determine the nature and amount of remuneration
The whole Board forms the Remuneration Committee. The remuneration policy has been designed to align director and executive objectives with shareholder
and business objectives by providing a fixed remuneration component with the flexibility to offer specific long term incentives based on key performance
areas affecting the Group’s financial results. The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the
best directors and executives to manage the Group.
The Board’s policy for determining the nature and amount of remuneration for Board members and senior executives is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, was developed by the Board. All
executives receive a base salary (which is based on factors such as length of service and experience) and superannuation. The Board reviews executive
packages annually and determines policy recommendations by reference to executive performance and comparable information from industry sectors
and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses and options. The policy is designed to attract and retain the highest
calibre of executives and reward them for performance that results in long term growth in shareholder wealth.
The Executive Director and executives receive a superannuation guarantee contribution required by the government where applicable, which is
currently 10.0% (30 June 2021: 9.5%) of base salary and do not receive any other retirement benefits.
All remuneration paid to directors and executives is valued at the cost to the Group and expensed. Options are valued using the Black–Scholes
methodology where relevant.
The Board policy is to remunerate non–executive directors at market rates for comparable companies for time, commitment and responsibilities. The
Board determines payments to the non–executive directors and reviews the remuneration annually, based on market practice, duties and
accountability. Independent external advice is sought when required. No independent external advice was sought during the year. The maximum
aggregate amount of fees that can be paid to Non–Executive Directors is subject to approval by shareholders at the Annual General Meeting. The
Company intends to seek shareholder approval at the Annual General Meeting for the maximum aggregate amount that may be paid to Non-
Executive Directors as remuneration for each financial year which may be divided among the Non-Executive Directors in the manner determined by
the Board and Company from time to time. Fees for Non–Executive Directors are not linked to the performance of the Company.
The remuneration policy has been tailored to increase the direct positive relationship between shareholders investment objectives and directors and executive
performance. The Company facilitates this through the issue of options from time to time to the directors and executives to encourage the alignment of
personal and shareholder interests. The Company believes this policy will be effective in increasing shareholder wealth. The Company currently has no
performance based remuneration component built into director and executive remuneration packages.
The Board does not consider earnings during the current and previous financial years when determining, and in relation to, the nature and amount of
directors’ remuneration. Refer below for a summary of the Group’s earnings and the Company’s market performance for the past 2 years.
Summary of 2 Years earnings and market performance as at 30 June
Profit/(Loss) ($)
Share price ($)
Market capitalisation (Undiluted) ($)
2021
2020
(1,019,910)
(189,516)
0.18
9,910,818
–
–
13 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (cont’d)
B.
Details of remuneration
Details of remuneration of the Directors and key management personnel (as defined in AASB 124 Related Party Disclosures) of Miramar are set out in the
table below.
The key management personnel of Miramar and the Group are listed on pages 12.
Given the size and nature of operations of Miramar, there are no other employees who are required to have their remuneration disclosed in accordance with
the Corporations Act 2001.
Short Term
Post-employment
Equity
Salary
& fees
Other
benefits(i)
D&O(ii)
insurance
Superan-
nuation
Other
benefits Options(iii)
Long term
benefits
Other
benefits
Value
options as
proportion of
remuneration
%
Total
$
$
$
2021
Directors
A Kelly
M Bush
T Gadenne
Total
2020
Directors
A Kelly
M Bush
T Gadenne
Total
$
$
$
$
$
191,465
16,513
86,971
16,786
6,091
–
7,050
7,050
7,050
18,304
8,308
1,595
295,222
22,604
21,150
28,207
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$
–
–
–
–
26,493
26,493
26,493
79,479
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
233,332
108,420
25,431
367,183
26,493
26,493
26,493
79,479
0.0%
0.0%
0.0%
0.0%
100%
100%
100%
100%
Short Term Other benefits include car allowance and annual leave accrued during the year.
(i)
(ii) For accounting purposes Directors & Officers Indemnity Insurance is required to be recorded as remuneration. No director receives any cash benefits, simply the benefit of the
insurance coverage for the financial year.
(iii) The amounts included are under Miramar’s Employee Share Option Plan (ESOP) and are non-cash items that are subject to vesting conditions. Refer to Section D for more
information.
C.
Service agreements
Executive Directors
A Kelly
Mr Allan Kelly was appointed a Director on 6 August 2019. He entered
into an Executive Services Agreement as Executive Chairman of the
Company on 21 August 2020, rendering a salary of $275,000 per
annum plus superannuation which commenced on 22 October 2020
upon the Company’s admission to the official list of the ASX. The
remuneration package includes statutory superannuation entitlements
and provision of leave in accordance to the National Employment
Standards. Mr Kelly’s salary will be reviewed by the Company in
accordance with the policy of the Company for the annual review of
salaries. Any salary increase will be backdated to 1 July of the relevant
year. The Company may at any time during the term of appointment
pay Mr Kelly a performance-based bonus over and above his salary.
In determining the extent of any performance-based bonus, the
Company shall take into consideration the key performance indicators
of Mr Kelly and the Company, as the Company may set from time to
time, and any other matter that it deems appropriate.
M Bush
Ms Marion Bush was appointed a Director on 3 March 2020. She
entered into a Consultancy Services Agreement as a Technical Director
of the Company on 21 August 2020, rendering a fee of $120,000 per
annum (excluding GST) which commenced on 22 October 2020 upon
the Company’s admission to the official list of the ASX. Ms Bush’s fees
will be reviewed annually by the Company in accordance with the
policy of the Company for the annual review of salaries or fees paid to
consultants and directors of the Company. The Company may pay Ms
Bush a performance-based bonus over and above the consultancy fee
in cash or non-cash form at any time during the engagement term
subject to obtaining any applicable regulatory approvals.
In
determining the extent of any performance-based bonus, the
Company shall take into consideration the key performance indicators
Ms Bush and the Company, as the Company may set from time to
time, and any other matter that it deems appropriate.
Remuneration and other terms of employment for the executive are formalised in an employment agreement. The executives are employed on a rolling basis
with no specified fixed terms.
Major provisions of the agreements relating to the executives are set out below.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 14
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (cont’d)
Name
Engagement
By MIRAMAR
By Director
Executive Chairman
| Allan Kelly
Executive Chairman
Technical Director
| Marion Bush
Consultant
6 months
1 month
6 months
1 month
Termination Notice Period
Termination
payments*
6 months
1 month
*
Termination payments (other than for gross misconduct) are calculated on current remuneration at date of termination and are inclusive of the notice period.
Non-Executive Director
Mr Terry Gadenne was appointed a Director on 3 March 2020. Mr Gadenne’s appointment as a Non-Executive Director commenced on 22 October 2020
upon the Company’s admission to the official list of the ASX. Mr Gadenne is entitled to a base fee of $26,400 per annum (excluding GST) including
superannuation entitlements, subject to annual review by the Board and approval by the shareholders of the Company (if required).
Major provisions of the agreements relating to the Non-Executive Director are set out below.
Name
Non-Executive Director
Terry Gadenne
Termination Notice Period
By MIRAMAR
By Director
Termination
payments*
6 months
Immediately
N/A
*
Termination payments (other than for gross misconduct) are calculated on current remuneration at date of termination and are inclusive of the notice period.
D.
Share–based compensation
If approved by shareholders, options are issued to directors and executives as part of their remuneration. The options are not based on performance criteria,
but are issued to align the interests of directors, executives and shareholders. There were no options issued to the directors and executives during the year.
As at 30 June 2021, 4,560,000 options (2020: 4,560,000) were held by directors and non-executives.
Options
issued
during the
year
No of
options
No.
No.
Issue date
Fair
value per
options at
issue date
Vesting
date
Vested
during the
year
Expired/
Exercised
during the
year
Exercise
price Expiry date
No.
No.
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,000,000
26 Jun 20
$0.026
26 Jun 20
$0.20
26 Jun 25
1,000,000
26 Jun 20
–
–
–
–
26 Jun 20
$0.20
22 Oct 22
–
–
–
1,000,000
26 Jun 20
$0.026
26 Jun 20
$0.20
26 Jun 25
360,000
26 Jun 20
–
–
–
–
26 Jun 20
$0.20
22 Oct 22
–
–
–
1,000,000
26 Jun 20
$0.026
26 Jun 20
$0.20
26 Jun 25
200,000
26 Jun 20
–
26 Jun 20
$0.20
22 Oct 22
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Directors
A Kelly
M Bush
T Gadenne
Financial
year
2021
2020
2020
2021
2020
2020
2021
2020
2020
E.
Additional information
Performance income as a proportion of total compensation
No performance based bonuses have been paid to directors or executives during the financial year.
Key management personnel (KMP) equity holdings
Fully paid ordinary shares of Miramar Resources Limited
Key management personnel 2021
Allan Kelly
Marion Bush
Terry Gadenne
Total
Balance at
1 July
No.
2,000,100
360,000
200,000
2,560,100
Granted as
remuneration
No.
Received on
exercise of options
No.
–
–
–
–
–
–
–
–
Net other change
No.
4,707,193
–
–
Balance at
30 June
No.
6,707,293
360,000
200,000
4,707,193
7,267,293
15 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (cont’d)
Options of Miramar Resources Limited
Key management personnel
Balance at
July
No.
Granted as
remuneration
No.
Options
exercised
No.
Net other
change
No.
Balance at
30 June
No.
Exercisable
No.
Not
exercisable
No.
Vested at 30 June
2021
Allan Kelly
Marion Bush
Terry Gadenne
Total
2,000,000
1,360,000
1,200,000
4,560,000
–
–
–
–
–
–
–
–
–
–
–
–
2,000,000
2,000,000
1,360,000
1,360,000
1,200,000
1,200,000
4,560,000
4,560,000
–
–
–
–
The options include those held directly, indirectly and beneficially by KMP.
Loans to KMP and their related parties
There were no loans to KMP and their related parties during the year.
Other transactions and balances with KMP and their related parties
Directors transactions
XGS Exploration Geochemistry Services (XGS), of which Mr Allan Kelly is a Director, provided consulting services in relation to the IPO and ASX listing of the
Company to October 2020 amounting to $35,200. The services provided were on arms-length commercial terms. At 30 June 2021 the Company did not
owe XGS.
The Company entered in a lease agreement with XGS on 15 July 2020. The lease commenced from 1 July 2020 to 31 October 2020 amounting to $7,040.
At 30 June 2021 the Company did not owe XGS.
The Company entered into a Sales and Purchase Agreement (S&P Agreement) with Debnal Pty Limited (Debnal), of which Mr Allan Kelly is a Director, for
mineral tenements and applications for mineral tenements in Whaleshark, Bangemall, Garden Gully, Lakeside, Lang Well and Randalls (Tenements). On
8 June 2020 the Company made a non-refundable cash payment of $25,000 to Debnal for a 6-month exclusion option to purchase the Tenements (Option).
On 7 October 2020 the Company elected to exercise the Option and made a final payment of $75,000 and issued 4,500,000 fully paid ordinary share at fair
value of $0.20 per share to Debnal.
Ms Marion Bush provided geological services in relation to the IPO and ASX listing of the Company to October 2020 amounting to $18,500. The services
provided were on arms-length commercial terms. At 30 June 2021 the Company did not owe Ms Bush.
End of Remuneration Report
DIRECTORS MEETINGS
The following tables set information in relation to Board meetings held during the financial year.
Board Member
Held while Director
Attended
Board Meetings
A Kelly
M Bush
T Gadenne
8
8
8
8
8
8
Circular resolutions
passed
5
7
7
Total
13
15
15
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 16
DIRECTORS’ REPORT
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were the exploration and evaluation of mining tenements with the objectives of identifying economic
mineral deposits.
FINANCIAL REVIEW
The Group began the financial year with cash reserves of $327,771.
During the year total exploration expenditure expensed by the Group amounted to $114,132 (2020: to $64,758). The exploration expenditures relate to non
granted tenements and this has been expensed in accordance with the Group’s accounting policy. Administrative expenditure incurred amounted to $824,381
(2020: $124,758). Operating loss after income tax for the year ended 30 June 2021 amounted to $1,019,910 (2020: $189,516 loss).
As at 30 June 2021 cash and cash equivalents totalled $5,055,388.
Summary of 2 Year Financial Information as at 30 June
Cash and cash equivalents ($)
Net assets/equity ($)
Exploration expenditure expensed ($)
Exploration and evaluation expenditure capitalised ($)
No of issued shares
No of options
Share price ($)
Market capitalisation (Undiluted) ($)
Summary of Share Price Movement to the date of this report
Highest
Lowest
Latest
Share Price ($)
Date
$0.415
$0.170
$0.190
22 October 2020
28-29 July 2021
13 September 2021
2021
5,055,388
7,812,145
(114,132)
3,038,658
55,060,100
17,260,000
0.180
9,910,818
2020
327,771
299,424
(64,758)
–
9,010,100
11,010,000
–
–
CORPORATE GOVERNANCE STATEMENT
The Company is committed to high standards of corporate governance designed to enable the Company to meet its performance objectives and better
manage its risks.
The Company has adopted a comprehensive governance framework in the form of a formal corporate governance charter together with associated policies,
protocols and related instruments (together Charter). The Charter was formally adopted by the board on 19 December 2019.
The Company’s Charter is based on a template which has been professionally verified to be complementary to and in alignment with the ASX Corporate
Governance Council Principles and Recommendations 4th Edition 2019 (ASX CGCPR) in all material respects. The Charter also substantially addresses the
suggestions of good corporate governance mentioned in the ‘Commentary’ sections of the ASX CGCPR.
The Board is responsible for the overall corporate governance of the Group. The Board has governance oversight of all matters relating to the strategic
direction, corporate governance, policies, practices, management and operations of the Group with the aim of delivering value to its Shareholders and
respecting the legitimate interest of its other valued stakeholders, including employees, suppliers and joint venture partners.
Under ASX Listing Rule 4.10.3, the Company is required to provide in its annual report details of where shareholders can obtain a copy of its corporate
governance statement, disclosing the extent to which the Company has followed the ASX Corporate Governance Council Principles and Recommendations
in the reporting period. The corporate governance statement is published on the Company’s website:
https://www.miramarresources.com.au/corporate/corporate-governance/
17 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
DIRECTORS’ REPORT
Significant changes in state of affairs
Insurance of directors and officers
Other than those disclosed in this annual report no significant changes in
the state of affairs of the Group occurred during the financial year.
Significant events after the balance date
No other matters or circumstances have arisen since the end of the financial
year which significantly affected or may significantly affect the operations
of the Group, the results of those operations, or state of affairs of the Group
in future financial years other than those stated below:
(a)
On 13 September 2021 the Company advised that several key
tenements within the 80% Gidji JV Project were granted. Pursuant to
the agreement disclosed in the Prospectus dated 4 September
2020, 1,250,000 fully paid ordinary shares will be issued when more
than 51% of the total area of ungranted project area are granted.
The issue of shares has not occurred on the date of this report.
COVID-19
The COVID-19 pandemic continues to pose a global socio-political,
economic and health risk. The potential for the pandemic to have both
lasting and unforeseen impacts is high. At this point in time the Group is
experiencing minor delays in project timelines as a result of the pandemic.
These delays are not expected to be significant. As a Group, we adhere to
the changes in government policies and changed the way we work to
protect the wellbeing of our people and ensure business continuity. We
continue to maintain a state of response readiness commensurate with the
risks and in accordance with Government recommendations and health
advice.
During or since the end of the financial year, the Company has paid
premiums insuring all the Directors of Miramar Resources Limited against
costs incurred in defending conduct involving:
(a)
(b)
a wilful breach of duty, and
a contravention of sections 182 or 183 of the Corporations Act
2001,
as permitted by section 199B of the Corporations Act 2001.
The total amount of insurance contract premiums paid was $21,150.
Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify its
auditors, RSM Australia Partners, as part of the terms of its audit
engagement agreement against claims by third parties arising from the
audit (for an unspecified amount). No payment has been made to
indemnify RSM during or since the financial year.
Dividends
No dividends were paid or declared during the financial year and no
recommendation for payment of dividends has been made.
Non–audit services
During the year the associate of RSM Australia Partners, RSM Australia Pty
Ltd performed non-audit services to the Group. Refer to note 9 for further
information.
Likely developments and expected results
Auditor’s independence declaration
The Group expects to maintain the present status and level of operations
and hence there are no likely developments in the Group’s operations.
The auditor’s independence declaration as required under section 307C of
the Corporations Act 2001 is included on page 19.
Signed in accordance with a resolution of the Directors made pursuant to
s.298(2) of the Corporations Act 2001.
Environmental regulation and performance
The Group is subject to significant environmental regulation in respect to
its exploration activities.
The Group aims to ensure the appropriate standard of environmental care
is achieved, and in doing so, that is aware of and is in compliance with all
environmental legislation. The Directors of the Group are not aware of any
breach of environmental legislation for the year under review.
Share options
As at the date of this report, there were 17,260,000 options on issue to
purchase ordinary shares at a range of exercise prices (17,260,000 at
30 June 2021).
Option holders do not have any right, by virtue of the option, to participate
in any share issue of the Company or any related body corporate.
On behalf of the Directors
Allan Kelly
Executive Chairman
Perth, Western Australia this 15th of September 2021
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 18
INDEPENDENCE DECLARATION TO THE DIRECTORS OF
MIRAMAR RESOURCES LIMITED
19 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
DIRECTORS’ DECLARATION
The Directors declare that:
(a)
(b)
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;
in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance
with Australian Accounting Standards and International Financial Reporting Standards as disclosed in note 2 to the financial report and giving a true
and fair view of the financial position and performance of the Group for the financial year ended 30 June 2021; and
(c)
the Directors have been given the declarations required by section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001.
On behalf of the Directors
Allan Kelly
Executive Chairman
Perth, Western Australia this 15th of September 2021
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 20
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
MIRAMAR RESOURCES LIMITED
21 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
MIRAMAR RESOURCES LIMITED
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 22
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
MIRAMAR RESOURCES LIMITED
23 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
MIRAMAR RESOURCES LIMITED
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 24
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
for the financial year ended 30 June 2021
Continuing operations
Revenue
Other income
Employee expenses
Depreciation expense
Consultants expenses
Interest expense
Occupancy expenses
Marketing expenses
Exploration and evaluation expenses
Write off exploration and evaluation expenses
Fair value changes in financial assets designated at fair value through P&L
Other expenses
Loss from continuing operations before income tax benefit
Income tax expense
Loss attributable to members of the parent entity
Other comprehensive income for the year/period
Total comprehensive loss for the year/period
Net loss attributable to the parent entity
Total comprehensive loss attributable to the parent entity
Loss per share:
Basic (cents per share)
Diluted (cents per share)
The accompanying notes form part of the financial statements.
Note
5(a)
5(b)
5(c)
5(d)
5(e)
14
6
2021
$
150,000
1,716
(139,628)
(30,647)
(331,047)
(1,638)
(26,926)
(82,790)
(114,132)
(219,554)
(13,559)
(211,705)
(1,019,910)
–
6 August 2019
to 30 June 2020
$
–
–
(79,479)
–
(44,899)
–
–
–
(64,758)
–
–
(380)
(189,516)
–
(1,019,910)
(189,516)
–
–
(1,019,910)
(189,516)
(1,019,910)
(1,019,910)
(189,516)
(189,516)
21
21
(2.39)
(2.39)
(192.28)
(192.28)
25 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets at fair value through profit and loss
Total current assets
Non–current assets
Other receivables
Plant and equipment
Right-of-use asset
Capitalised exploration and evaluation expenditure
Total non–current assets
TOTAL ASSETS
Current liabilities
Trade and other payables
Provisions
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of the financial statements.
Note
27(a)
10
11
12
13
17
14
15
16
17
17
18
19
20
2021
$
5,055,388
71,313
86,441
5,213,142
56,000
149,129
62,518
3,038,658
3,306,305
8,519,447
376,704
266,957
51,473
695,134
12,168
12,168
707,302
7,812,145
8,268,845
752,726
(1,209,426)
7,812,145
2020
$
327,771
2,968
–
330,739
–
–
–
–
–
330,739
31,315
–
–
31,315
–
–
31,315
299,424
409,461
79,479
(189,516)
299,424
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the financial year ended 30 June 2021
Attributable to equity holders
For the year ended
30 June 2021
Balance as at 1 July 2021
Total comprehensive income
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
Transactions with owners
recorded direct to equity
Issue of shares
Share based payments
Share issue costs
Total transactions with owners
Balance as at 30 June 2021
For the period ended
30 June 2020
Balance as at 6 August 2019
Total comprehensive income
Loss for the period
Other comprehensive loss for the period
Total comprehensive loss for the period
Transactions with owners
recorded direct to equity
Issue of shares
Shared based payments
Share issue costs
Total transactions with owners
Balance as at 30 June 2020
Issued
Capital
$
409,461
–
–
–
9,180,000
–
(1,320,616)
7,859,384
8,268,845
–
–
–
–
410,600
–
(1,139)
409,461
409,461
Reserves
$
79,479
–
–
–
–
673,247
–
673,247
752,726
–
–
–
–
–
79,479
–
79,479
79,479
Accumulated
Losses
$
(189,516)
Total
Equity
$
299,424
(1,019,910)
(1,019,910)
–
–
(1,019,910)
(1,019,910)
–
–
–
–
(1,209,426)
9,180,000
673,247
(1,320,616)
8,532,631
7,812,145
–
–
(189,516)
–
(189,516)
–
–
–
–
(189,516)
(189,516)
–
(189,516)
410,600
79,479
(1,139)
488,940
299,424
The accompanying notes form part of the financial statements.
27 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
CONSOLIDATED STATEMENT OF CASH FLOWS
for the financial year ended 30 June 2021
Note
2021
$
6 August 2019
to 30 June 2020
$
Cash flows from operating activities
Payments for exploration and evaluation
Payments to suppliers and employees
Interest received
Net cash used in operating activities
27(b)
Cash flows from investing activities
Payment for acquisition of tenements
Payments for exploration and evaluation
Payment for plant and equipment
Proceeds from sale of tenements
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issues of equity securities
Payment for share issue costs
Repayment of lease liabilities
Net cash received in financing activities
21,606
(680,722)
1,488
(657,628)
(291,970)
(1,530,142)
(179,776)
50,000
(1,951,888)
8,010,000
(650,135)
(22,732)
7,337,133
(59,758)
(23,071)
–
(82,829)
–
–
–
–
410,600
–
–
410,600
Net increase in cash and cash equivalents
4,727,617
327,771
Cash and cash equivalents at the beginning of the financial period
Cash and cash equivalents at the end of the financial period
27(a)
327,771
5,055,388
–
327,771
The accompanying notes form part of the financial statements.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
1. General Information
Miramar Resources Limited (Miramar or the Company) is a company limited by shares, incorporated and domiciled in Australia, and whose shares
are publicly traded on the Australian Securities Exchange. The consolidated financial report of the Group as at year ended 30 June 2021 comprises the
Company and its subsidiaries (together referred to as the Group).
Miramar is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities
Exchange.
The nature of the operations and principal activities of the Group are mineral exploration and project development which is further described in the
Directors’ Report. Information on other related party relationships is provided in note 25.
2.
Summary of significant accounting policies
The financial report is a general purpose financial report, which has
been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of
the Australian Accounting
Standards Board. The financial report includes the financial statements
of Miramar Resources Limited and its subsidiaries.
The financial report also complies with International Financial
Reporting Standards (IFRS) as issued by the International Accounting
Standards Board.
(a) Basis of preparation
The financial report has been prepared on an accruals basis and
is based on historical cost, except for certain financial assets and
liabilities which are carried at fair value. Cost is based on the fair
values of the consideration given in exchange for assets. All
amounts are presented in Australian dollars, unless otherwise
noted.
Separate financial statements for Miramar as an individual entity
are no longer presented as the consequence of a change to the
Corporations Act 2001, however, required financial information
for Miramar as an individual entity is included in note 30.
The accounting policies set out below have been applied in
preparing the financial statements for the year ended 30 June
2021 and the comparative information presented in these
financial statements for the year ended 30 June 2020.
(b) New Accounting Standards for Application
in the Current Financial Year and Future Periods
The accounting policies adopted in the preparation of the
financial statements are consistent with those followed in the
preparation of the Company’s annual financial statements for the
year ended 30 June 2020 except for the new accounting
standards stated below.
New and Amended Standards Adopted by the Group
The Group has considered the implications of new and amended
Accounting Standards which have become applicable for the
current financial reporting period.
Initial adoption of AASB 2020-04:
COVID-19-Related Rent Concessions
AASB 2020-4: Amendments to Australian Accounting Standards
– COVID-19-Related Rent Concessions amends AASB 16 by
providing a practical expedient that permits lessees to assess
whether rent concessions that occur as a direct consequence of
the COVID-19 pandemic and, if certain conditions are met,
account for those rent concessions as if they were not lease
modifications.
(b) New Accounting Standards for Application
in the Current Financial Year and Future Periods (cont’d)
Initial adoption of AASB 2018-6:
Amendments to Australian Accounting Standards
– Definition of a Business
AASB 2018-6 amends and narrows the definition of a business
specified in AASB 3: Business Combinations, simplifying the
determination of whether a transaction should be accounted for
as a business combination or an asset acquisition. Entities may
also perform a calculation and elect to treat certain acquisitions
as acquisitions of assets.
Initial adoption of AASB 2018-7:
Amendments to Australian Accounting Standards
– Definition of Material
This amendment principally amends AASB 101 and AASB 108 by
refining the definition of material by improving the wording and
aligning the definition across the standards issued by the AASB.
Initial adoption of AASB 2019-1:
Amendments to Australian Accounting Standards –
References to the Conceptual Framework
This amendment amends Australian Accounting Standards,
Interpretations and other pronouncements to reflect the issuance
of Conceptual Framework for Financial Reporting by the AASB.
The standards listed above did not have any impact on the
amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
New Accounting Standards and Interpretations not yet
mandatory or early adopted
Australian Accounting Standards and Interpretations that have
recently been issued or amended but are not yet mandatory,
have not been early adopted by the Group for the annual
reporting period ended 30 June 2021. The Group has not yet
assessed the impact of these new or amended Accounting
Standards and Interpretations.
(c) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in banks
and investments in money market instruments that are readily
convertible to known amount of cash which are subject to an
insignificant risk of change in value , net of outstanding bank
overdrafts.
(d) Employee benefits
Provision is made for benefits accruing to employees in respect
of wages and salaries and annual leave when it is probable that
settlement will be required and they are capable of being
measured reliably. Liabilities recognised in respect of employee
benefits expected to be settled within 12 months, are measured
at their nominal values using the remuneration rate expected to
apply at the time of settlement. Liabilities recognised in respect of
employee benefits which are not expected to be settled within 12
months are measured as the present value of the estimated
future cash outflows to be made by the Group in respect of
services provided by employees up to reporting date.
29 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
2.
Statement of significant accounting policies (cont’d)
(e) Financial assets
(f) Financial instruments issued by the Company
Financial assets are recognised and derecognised on trade date
where purchase or sale of an investment is under a contract whose
terms require delivery of the investment within the timeframe
established by the market concerned, and are initially measured at
fair value, net of transaction costs.
Subsequently measured at fair value through profit or loss (FVPL),
amortised cost, or fair value through other comprehensive income
(FVOCI). The classification is based on two criteria: the Group’s
business model for managing the assets; and whether the
instruments’ contractual cash flows represent ‘solely payments of
principal and interest’ (SPPI) on the principal amount outstanding
(SPPI criterion). The SPPI test is applied to the entire financial asset,
even if it contains an embedded derivative. Consequently, a
derivative embedded in a debt instrument is not accounted for
separately.
Trade and other receivables
Trade receivables are initially recognised at their transaction price
and other receivables at fair value. Receivables that are held to
collect contractual cash flows and are expected to give rise to cash
flows representing solely payments of principal and interest are
classified and subsequently measured at amortised cost.
Receivables that do not meet the criteria for amortised cost are
measured at FVPL.
The Group assesses on a forward-looking basis the ECL associated
with its debt instruments carried at amortised cost. The amount of
ECL is updated at each reporting date to reflect changes in credit
risk since initial recognition of the respective financial instrument.
The Group always recognises the lifetime ECL for trade receivables
carried at amortised cost. The ECL on these financial assets are
estimated based on the Group’s historic credit loss experience,
adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of both the current as
well as forecast conditions at the reporting date.
For all other receivables measured at amortised cost, the Group
recognises lifetime ECL when there has been a significant increase
in credit risk since initial recognition. If the credit risk on the financial
instrument has not increased significantly since initial recognition,
the Group measures the loss allowance for that financial
instrument at an amount equal to ECL within the next 12 months.
The Group considers an event of default has occurred when a
financial asset is more than 90 days past due or external sources
indicate that the debtor is unlikely to pay its creditors, including the
Group. A financial asset is credit impaired when there is evidence
that the counterparty is in significant financial difficulty or a breach
of contract, such as a default or past due event has occurred. The
Group writes off a financial asset when there is information
indicating the counterparty is in severe financial difficulty and there
is no realistic prospect of recovery.
Equity instruments
Shares and options held by the Group are classified as equity
instruments and are stated at FVPL. Gains and losses arising from
changes in fair value are recognised directly to profit or loss for the
period.
Loans receivables
Loans receivables are classified, at initial recognition, and
subsequently measured at amortised cost, FVOCI, or FVPL. Loan
receivables that are held to collect contractual cash flows and are
expected to give rise to cash flows representing solely payments
of principal and interest are classified and subsequently measured
at amortised cost. Loan receivables that do not meet the criteria
for amortised cost are measured at FVPL.
Debt and equity instruments
Debt and equity instruments are classified as either liabilities or
equity in accordance with the substance of the contractual
arrangement.
Transaction costs on the issue of equity instruments
Transaction costs arising on the issue of equity instruments are
recognised directly in equity as a reduction of the proceeds of the
equity instruments to which the costs relate. Transaction costs are
the costs that are incurred directly in connection with the issue of
those equity instruments and which would not have been incurred
had those instruments not been issued.
(g) Goods and services tax
Revenues, expenses and assets are recognised net of the amount
of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable from
the taxation authority, it is recognised as part of the cost of
acquisition of an asset or as part of an item of expense; or
ii.
for receivables and payables which are recognised inclusive
of GST.
The net amount of GST recoverable from, or payable to, the
taxation authority is included as part of receivables or payables.
Cash flows are included in the statement of cash flows on a gross
basis. The GST component of cash flows arising from investing and
financing activities which is recoverable from, or payable to, the
taxation authority is classified as operating cash flows.
(h) Impairment of non-financial assets
At each reporting date, the Group reviews the carrying amounts
of its tangible and intangible assets to determine whether there is
any indication that those assets have suffered an impairment loss.
Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the
recoverable amount of the cash–generating unit to which the
asset belongs. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of the
impairment loss (if any), being the higher of the asset’s fair value
less costs to sell and value in use to the asset’s carrying value.
Excess of the asset’s carrying value over its recoverable amount is
expensed to the consolidated statement of profit or loss and other
comprehensive income.
Intangible assets with indefinite useful lives and intangible assets
not yet available for use are tested for impairment annually and
whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value using a pre–tax
discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (cash–generating unit) is increased to the
revised estimate of its recoverable amount, but only to the extent
that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment
loss been recognised for the cash–generating unit in prior years. A
reversal of an impairment loss is recognised in profit or loss
immediately, unless the relevant asset is carried at fair value, in
which case the reversal of the impairment loss is treated as a
revaluation increase.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
2.
Statement of significant accounting policies (cont’d)
(i) Tax
Current tax
Current tax is calculated by reference to the amount of income
taxes payable or recoverable in respect of the taxable profit or tax
loss for the period. It is calculated using tax rates and tax laws that
have been enacted or substantively enacted by reporting date.
Current tax for current and prior periods is recognised as a liability
(or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the full liability method in
respect of temporary differences arising from differences between
the carrying amount of assets and liabilities in the financial
statements and the corresponding tax base of those items.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries, branches,
associates and joint ventures except where the entity is able to
control the reversal of the temporary differences and it is probable
that the temporary differences will not reverse in the foreseeable
future. Deferred tax assets arising from deductible temporary
differences associated with these investments and interests are
only recognised to the extent that it is probable that there will be
sufficient taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in the
foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that
are expected to apply to the period(s) when the asset and liability
giving rise to them are realised or settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted by
reporting date. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the
manner in which the entity expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to
income taxes levied by the same taxation authority and the entity
intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in
the statement of profit or loss and other comprehensive income,
except when it relates to items credited or debited directly to
equity, in which case the deferred tax is also recognised directly in
equity, or where it arises from the initial accounting for a business
combination, in which case it is taken into account in the
determination of goodwill or excess.
Tax consolidation
Legislation to allow groups, comprising a parent entity and its
Australian resident wholly owned entities, to elect to consolidate
and be treated as a single entity for income tax purposes was
substantively enacted on 21 October 2002. The Company and its
100% owned Australian resident subsidiaries implemented the tax
consolidation legislation on 28 May 2020 with Miramar as the
head entity.
(j) Government grants
Government grants are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an
expense item, it is recognised as income on a systematic basis over
the periods that the related costs, for which it is intended to
compensate, are expensed. When the grant relates to an asset, it
is recognised as income in equal amounts over the expected
useful life of the related asset.
31 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
(j) Government grants (cont’d)
When the Group receives grants of non-monetary assets, the
asset and the grant are recorded at nominal amounts and released
to profit or loss over the expected useful life of the asset, based on
the pattern of consumption of the benefits of the underlying asset
by equal annual instalments.
(k) Plant and equipment
Plant and equipment are stated at cost less accumulated
depreciation and impairment loss. Cost includes expenditure that
is directly attributable to the acquisition of the item.
Depreciation is provided on plant and equipment. Depreciation is
calculated on a straight line or diminishing value basis so as to
write off the net cost of each asset over its expected useful life to
its estimated residual value. The estimated useful lives, residual
values and depreciation method are reviewed at the end of each
annual reporting period.
The depreciation rates used for each class of depreciable assets
are:
Class of fixed asset
Depreciation rate (%)
Office furniture
Office equipment
Motor vehicles
25.0 – 33.33
25.0 – 33.33
25.00
(l) Exploration and evaluation expenditure
Exploration and evaluation expenditure in relation to each
separate area of interest are recognised as capitalised exploration
and evaluation asset in the year in which they are incurred where
the following conditions are satisfied:
i.
the right to tenure of the area of interest are current; and
ii. at least once of the following conditions is also met:
the exploration and evaluation expenditures are
expected to be recouped through successful
development and exploration of the area of interest, or
alternatively, by its sale; or
exploration and evaluation activities in the area of
interest have not, at the reporting date, reached a stage
which permits a reasonable assessment of the existence
or otherwise of economically recoverable reserves, and
active operations in, or relating to, the area are
continuing.
Capitalised exploration costs for each area of interest (considered
to be the cash generating unit) are reviewed each reporting date
to test whether an indication of impairment exists. If any such
indication exists, the recoverable amount of the capitalised
exploration costs is estimated to determine the extent of the
impairment loss (if any). The recoverable amount for capitalised
exploration costs has been determined as the fair value less costs
to sell by reference to an active market. Where an impairment loss
subsequently reverses, the carrying amount of the asset is
increased to the revised estimate of its recoverable amount, but
only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset in previous
years.
Where a decision is made to proceed with development,
accumulated expenditure is tested for impairment and transferred
to capitalised development and then amortised over the life of the
reserves associated with the area of interest once mining
operations have commenced.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
2.
Statement of significant accounting policies (cont’d)
(m) Joint arrangements
Joint ventures
A joint venture is a type of joint arrangement whereby the parties
that have joint control of the arrangement have rights to the net
assets of the joint venture. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous consent
of the parties sharing control.
The considerations made in determining significant influence or
joint control is similar to those necessary to determine control over
subsidiaries.
The Group’s investments in joint ventures are accounted for using
the equity method.
Under the equity method, the investment in a joint venture is
initially recognised at cost. The carrying amount of the investment
is adjusted to recognise changes in the Group’s share of net assets
of the joint venture since the acquisition date. Goodwill relating to
the joint venture is included in the carrying amount of the
investment and is neither amortised nor individually tested for
impairment.
The statement of profit or loss and other comprehensive income
reflects the Group’s share of the results of operations of the joint
venture. Any change in OCI of those investees is presented as part
of the Group’s OCI. In addition, when there has been a change
recognised directly in the equity of the joint venture, the Group
recognises its share of any changes, when applicable, in the
statement of changes in equity. Unrealised gains and losses
resulting from transactions between the Group and joint venture
are eliminated to the extent of the interest in the joint venture.
The aggregate of the Group’s share of profit or loss of a joint
venture is shown on the face of the statement of profit or loss and
other comprehensive income outside operating profit and
represents profit or loss after tax and non-controlling interests in
the subsidiaries of the joint venture.
The financial statements of the joint venture are prepared for the
same reporting period as the Group. When necessary,
adjustments are made to bring the accounting policies in line with
those of the Group. After application of the equity method, the
Group determines whether it is necessary to recognise an
impairment loss on its investment in its joint venture. At each
reporting date, the Group determines whether there is objective
evidence that the investment in the joint venture is impaired.
If there is such evidence, the Group calculates the amount of
impairment as the difference between the recoverable amount of
the joint venture and its carrying value, then recognises the loss as
‘Share of profit of a joint venture’ in the statement of profit or loss
and other comprehensive income.
Upon loss of joint control over the joint venture, the Group
measures and recognises any retained investment at its fair value.
Any difference between the carrying amount of the joint venture
upon loss of joint control and the fair value of the retained
investment and proceeds from disposal is recognised in profit or
loss.
Joint operations
The Group recognises its interest in joint operations by recognising
its:
Assets, including its share of any assets held jointly
Liabilities, including its share of any liabilities incurred jointly
Revenue from the sale of its share of the output arising from
the joint operation
Share of the revenue from the sale of the output by the joint
operation
Expenses, including its share of any expenses incurred jointly
(n) Principles of consolidation
The consolidated financial statements comprise the financial
statements of the Group as at and for the period ended 30 June
2021. Control is achieved when the Group is exposed, or has rights,
to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the
investee. Specifically, the Group controls an investee if and only if
the Group has:
Power over the investee (i.e. existing rights that give it the
current ability to direct the relevant activities of the investee);
Exposure, or rights, to variable returns from its involvement
with the investee; and
The ability to use its power over the investee to affect its
returns.
When the Group has less than a majority of the voting or similar
rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee,
including:
The contractual arrangement with the other vote holders of
the investee;
Rights arising from other contractual arrangements; and
The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if
facts and circumstances indicate that there are changes to one or
more of the three elements of control. Consolidation of a
subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the
subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the
statement of profit or loss and other comprehensive income from
the date the Group gains control until the date the Group ceases
to control the subsidiary.
Profit or loss and each component of other comprehensive
income (OCI) are attributed to the equity holders of the parent of
the Group and to the non-controlling interests, even if this results
in the non-controlling interests having a deficit balance. When
necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies into line with the
Group’s accounting policies. All intra-group assets and liabilities,
equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on
consolidation.
A change in the ownership interest of a subsidiary, without a loss
of control, is accounted for as an equity transaction. If the Group
loses control over a subsidiary, it:
De-recognises the assets (including goodwill) and liabilities
of the subsidiary;
De-recognises the carrying amount of any non-controlling
interests;
De-recognises the cumulative translation differences
recorded in equity;
Recognises the fair value of the consideration received;
Recognises the fair value of any investment retained;
Recognises any surplus or deficit in profit or loss; and
Reclassifies the parent’s share of components previously
recognised in OCI to profit or loss or retained earnings, as
appropriate, as would be required if the Group had directly
disposed of the related assets or liabilities.
A list of subsidiaries appears in note 4 to the financial statements.
(o) Operating cycle
The operating cycle of the Group coincides with the annual
reporting cycle.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
2.
Statement of significant accounting policies (cont’d)
(p) Payables
(u) Leases
Trade payables and other accounts payable are recognised when
the Group becomes obliged to make future payments resulting
from the purchase of goods and services.
(q) Provisions
Provisions are recognised when the Group has a present
obligation, the future sacrifice of economic benefits is probable,
and the amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation as a result
of a past event at reporting date, taking into account the risks and
uncertainties surrounding the obligation. Where a provision is
measured using the cashflows estimated to settle the present
obligation, its carrying amount is the present value of those
cashflows.
When some or all of the economic benefits required to settle a
provision are expected to be recovered from a third party, the
receivable is recognised as an asset if it is virtually certain that
recovery will be received and the amount of the receivable can be
measured reliably.
(r) Share–based payments
Equity–settled share–based payments are measured at fair value
at the date of grant. Fair value is measured by use of the Black and
Scholes model or Monte-Carlo simulation model. The expected
life used in the model has been adjusted, based on management’s
best estimate, for the effects of non–transferability, exercise
restrictions, and behavioural considerations.
The fair value determined at the grant date of the equity–settled
share–based payments is expensed on a straight–line basis over
the vesting period, based on the entity’s estimate of shares that will
eventually vest.
For cash–settled share–based payments, a liability equal to the
portion of the goods or services received is recognised at the
current fair value determined at each reporting date.
(s) Revenue recognition
Revenue is recognised when or as the Group transfers control of
goods or services to a customer at the amount to which the Group
expects to be entitled. If the Group estimates the amount of
consideration promised includes a variable amount, the Group
estimates the amount of consideration to which it will be entitled.
Dividend and interest revenue
Dividend revenue is recognised on a receivable basis. Interest
revenue is recognised on a time proportionate basis that takes into
account the effective yield on the financial asset.
(t) Segment reporting policy
Operating segments are identified and segment information
disclosed on the basis of internal reports that are regularly
provided to, or reviewed by the Group’s chief operating decision
maker which, for the Group, is the Board of Directors. In this regard,
such information is provided using similar measures to those used
in preparing the statement of profit or loss and other
comprehensive income and statement of financial position.
The Group assesses at contract inception whether a contract is, or
contains, a lease. That is, if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for
consideration
Group as a lessee
The Group applies a single recognition and measurement
approach for all leases, except for short-term leases (i.e., leases
with a lease term of 12 months or less) and leases of low-value
assets. The Group recognises lease liabilities to make lease
payments and right-of-use assets representing the right to use
the underlying assets.
(i) Right-of-use assets
The Group recognises right-of-use assets at the 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 (where the Group does
not have a purchase option at the end of the lease term). Right-
of-use assets are subject to impairment assessment.
(ii) 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.
(iii) Short-term leases and Low Value Assets
The Group applies the short-term lease recognition exemption to
its short-term leases of their Office Spaces (i.e., those leases that
have a lease term of 12 months or less from the commencement
date and do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption (i.e. below
$5,000). Lease payments on short-term leases and leases of low-
value assets are expensed on a straight-line basis over the lease
term.
33 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
2.
Statement of significant accounting policies (cont’d)
(v) Fair value measurement
The Group measures equity instrument at fair value and receivables are measured at amortised costs at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes
place either:
In the principal market for the asset or liability; or
In the absence of a principal market, in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable; or
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
(w) Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
(x) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Miramar Resources Limited, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect
of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to
have been issued for no consideration in relation to dilutive.
3. Critical accounting estimates and judgements
In the application of the Group’s accounting policies, which are described in note 2, management is required to make judgments, estimates and
assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the
basis of making the judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and
future periods.
The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities
within the next annual reporting period are:
Key judgements — capitalised exploration and evaluation expenditure
The future recoverability of exploration and evaluation expenditure capitalised on the acquisition of areas of interest and/or capitalised JORC compliant
mineral resource expenditure are dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not,
whether it successfully recovers the related exploration and evaluation asset through sale. To the extent that capitalised acquisition costs and/or
capitalised JORC compliant mineral resource expenditure are determined not to be recoverable in the future, profits and net assets will be reduced in
the period in which this determination is made.
Key judgements — share–based payments
The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the date at which
they are granted. The fair value is determined using a Black Scholes model. The related assumptions detailed in note 8. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amount of assets and liabilities within the next
annual reporting period but may impact expenses and equity.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
4.
Subsidiary
Name of entity
Parent entity:
Miramar Resources Limited (i)
Subsidiary:
Miramar (Goldfields) Pty Ltd (ii)
Country of
incorporation
Australia
Australia
Ownership Interest
2021
%
100
MQ Minerals Pty Ltd (iii)
(i) Miramar Resources Limited (previously Miramar Holdings Pty Ltd) is the ultimate parent entity.
(ii) The 100% interest in Miramar (Goldfields) Pty Ltd is held by the parent entity. The company was incorporated on 28 May 2020.
(iii) The 100% interest in MQ Minerals Pty Ltd is held by the parent entity. The company was incorporated on 26 October 2020.
Australia
100
5.
Income/expenses from operations
(a)
Revenue
Proceeds from sale of tenements (i)
Total revenue
(i)
The Company sold its 100% owned Garden Gully Project to Sipa Resources Limited (Sipa) for
$150,000 which consists of $50,000 cash and $100,000 worth of fully paid ordinary shares in
Sipa. Refer note 11 for further information.
(b)
Interest income
Bank
Total interest income
(c)
Employee expenses
Salaries and wages
Post-employment benefits
Defined contribution plans
Share-based payments
Equity settled share-based payments
Total employee expenses
(d) Depreciation of non-current assets
(e) Occupancy expenses
Rent
Depreciation of right-of-use assets
Total occupancy expenses
The Group has a lease of office space with lease terms of 12 months or less and is a lease of low-
value asset. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition
exemption for the lease.
2021
$
150,000
150,000
1,716
1,716
95,864
40,999
2,765
139,628
30,647
4,710
22,216
26,926
35 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
2020
%
100
100
2020
$
–
–
–
–
–
–
79,479
79,479
–
–
–
–
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
6.
Income taxes
Income tax recognised in consolidated profit or loss
Current income tax
Current income tax charged
Tax not recognised
Deferred income tax
Relating to origination and reversal of temporary differences
Deferred tax not recognised
Total tax benefit
Reconciliation of income tax expense/(benefit) applicable to accounting profit before
income tax at the statutory income tax rate to income tax expense at the Company’s
effective income tax rate for the period ended 30 June 2021 is as follows:
Loss from operations
Income tax expense calculated at 30% (2020: 27.5%)
Effect of expenses that are not deductible in determining taxable loss
Temporary differences not recognised
Unused tax losses not recognised as deferred tax assets
Income tax benefit
Unrecognised deferred tax assets
2021
$
2020
$
840,293
(840,293)
703,809
(703,809)
–
(1,019,910)
(305,973)
1,260
(535,580)
840,293
–
4,834
(4,834)
31,949
(31,949)
–
(189,516)
(52,117)
21,856
25,427
4,834
–
Deferred tax assets have not been
recognised in respect of the following items
Trade and other receivables
Other financial assets
Plant & equipment
Right of use asset
Capitalised exploration and evaluation expenditure
Trade and other payables
Provisions
Lease liability - current
Lease liability - non-current
Business related costs - equity
Business related costs - P&L
Tenement acquisition
Revenue losses
Deferred tax assets not recognised
Deferred tax (income)/expense
Consolidated Statement of
Financial Position
Consolidated Statement of Profit or
Loss and Other
Comprehensive Income
2021
$
2020
$
2021
$
2020
$
(2,210)
4,068
(44,739)
(18,755)
(431,034)
19,988
7,712
15,442
3,650
317,153
3,775
16,671
844,037
735,758
–
–
–
–
–
7,014
–
–
–
250
4,569
15,282
4,834
31,949
(2,210)
4,068
(44,739)
(18,755)
(431,034)
12,974
7,712
15,442
3,650
316,903
(794)
1,389
839,203
–
–
–
–
–
7,014
–
–
–
250
4,569
15,282
4,834
703,809
31,949
The tax losses do not expire under current legislation. Deferred tax assets have not been recognised in respect of these items because it is not
probable that future taxable profit will be available against which the Group can utilise the benefits.
Tax consolidation
Relevance of tax consolidation to the Group
Legislation to allow groups, comprising a parent entity and its Australian resident wholly owned entities, to elect to consolidate and be treated as a
single entity for income tax purposes was substantively enacted on 21 October 2002. The Company and its 100% owned Australian resident
subsidiaries have implemented the tax consolidation legislation.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
7.
Key management personnel disclosures
Details of key management personnel compensation are set out on pages 12 to 16 of the Directors’ Report.
The aggregate compensation made to key management personnel is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payment
Total
8.
Share-based payments
2021
$
338,976
28,207
–
367,183
2020
$
–
–
79,479
79,479
The Company has an ownership based compensation arrangement for employees of the Group.
Each option issued under the arrangement converts into one ordinary share on exercise. No amounts are paid or payable by the recipient on receipt
of the option. Options neither carry rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date
of their expiry. The number of options granted is at the sole discretion of the Directors.
Incentive options issued to Directors (executive and non–executive) are subject to approval by shareholders and attach vesting conditions as
appropriate. Details of options over ordinary shares in the Company provided as remuneration to each Director during the year are set out on
pages 13 to 16 of the Remuneration Report.
The following share–based payment arrangements were in existence during the current and comparative reporting periods:
Options series
Number
Grant date
Expiry date
Exercise price
OPT001
OPT002
OPT003
OPT004
3,000,000
8,210,000
26 June 2020
26 June 2025
26 June 2020
22 October 2022
6,000,000
9 October 2020
9 October 2023
50,000
7 January 2021
6 January 2023
$0.20
$0.20
$0.25
$0.48
The following unlisted options were issued during the period and are not share–based payment to employees.
Options series
OPT003
OPT004
Number
Grant date
Expiry date
Exercise price
6,000,000
9 October 2020
9 October 2023
50,000
7 January 2021
6 January 2023
Expenses arising from share-based payment transactions
Options issued to key management personnel
Options issued to non-employees
Options issued to employees
Total
Unlisted options
The following table summarise the share options during the period.
2021
$
–
670,482
2,765
673,247
$0.25
$0.48
2020
$
79,479
–
–
79,479
Exercise
price
Balance at
1 Jul
No.
Granted
No.
Exercised
No.
Forfeited
No.
Balance at
30 Jun
No.
Vested and
exercisable
at 30 Jun
No.
Grant date
Expiry date
2021
19 Jun 20
26 Jun 25
26 Jun 20
22 Oct 22
9 Oct 20 (i)
9 Oct 23
7 Jan 21 (i)
6 Jan 23
$0.20
$0.20
$0.25
$0.48
3,000,000
8,210,000
–
–
–
–
6,000,000
50,000
Total
11,210,000
6,050,000
Weighted average exercise price
$0.20
$0.25
37 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
–
–
–
–
–
–
–
–
–
–
–
–
3,000,000
8,210,000
6,000,000
50,000
17,260,000
$0.22
–
–
–
–
–
–
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
8.
Share-based payments (cont’d)
Unlisted options (cont’d)
Exercise
price
Balance at
1 Jul
No.
Granted
No.
Exercised
No.
Forfeited
No.
Balance at
30 Jun
No.
Vested and
exercisable
at 30 Jun
No.
Grant date
Expiry date
2020
19 Jun 20
26 Jun 25
26 Jun 20
22 Oct 22
$0.20
$0.20
Total
Weighted average exercise price
–
–
–
–
3,000,000
8,210,000
11,210,000
$0.20
–
–
–
–
–
–
–
–
3,000,000
3,000,000
8,210,000
8,210,000
11,210,000
11,210,000
$0.20
$0.20
The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.11 years (2020: 4.99 years).
(i)
Issued during the financial year
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows:
Grant date
Expiry date
9 Oct 20
7 Jan 21
9 Oct 23
6 Jan 23
Share price at
grant date
Exercise price
$0.20
$0.34
$0.25
$0.48
Expected
volatility
97.78%
82.60%
9. Remuneration of auditors
Audit or review of the financial report
RSM Australia Partners
Other services – Investigative Accountant’s Report
RSM Australia Pty Ltd
Total
10. Current trade and other receivables
Net goods and services tax (GST) receivable
Other receivables
Total
11. Other financial assets at fair value through profit and loss
Current
Available-for-sale investments
Quoted equity shares (i)
Total
(i)
The Company sold its 100% owned Garden Gully Project to Sipa Resources Limited (Sipa) for
$150,000 which consists of $50,000 cash and $100,000 worth of fully paid ordinary shares in Sipa.
The Company holds 1,694,915 shares in Sipa as a result of the sale. Refer note 5(a) for further
information.
Dividend yield
Risk-free
interest rate
Fair value at
grant date
Nil
Nil
0.15%
0.08%
2021
$
32,000
10,000
42,000
59,464
11,849
71,313
$0.11
$0.12
2020
$
5,000
–
5,000
2,968
–
2,968
86,441
86,441
–
–
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
12. Other receivables
Non-current
Other receivables – bond
Total
13. Plant and equipment
Cost
Balance at 1 July 2020
Additions
Balance at 30 June 2021
Accumulated depreciation
Balance at 1 July 2020
Additions
Balance at 30 June 2021
Net book value
As at 30 June 2020
As at 30 June 2021
14. Capitalised exploration and evaluation expenditure
Balance at beginning of financial year
Capitalised acquisition costs (i)
Exploration expenditure during the period
LESS: Disposal of assets (ii)
Balance at end of financial year
2021
$
56,000
56,000
Motor vehicle
$
Furniture and
equipment
$
–
110,209
110,209
–
9,085
9,085
–
101,124
–
69,567
69,567
–
21,562
21,562
–
48,005
2021
$
–
1,703,220
1,554,992
(219,554)
3,038,658
2020
$
–
–
Total
$
–
179,776
179,776
–
30,647
30,647
–
149,129
2020
$
–
–
–
–
–
(i)
The Company exercised the options to purchase tenements during the period. Payment was made
by cash and issue of shares in accordance with the respective agreements.
(ii) The Company sold its 100% owned Garden Gully Project to Sipa Resources Limited (Sipa) for
$150,000 which consists of $50,000 cash and $100,000 worth of fully paid ordinary shares in Sipa.
Refer note 5(a) and note 11 for further information.
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the
continuance of the Group’s right to tenure of the interest, the results of future exploration and the successful
development and commercial exploration, or alternatively, sale of the respective area of interest.
39 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
15. Current trade and other payable
Trade payable
Accruals
Other payables
Total
16. Provision
Current
Employee benefits
Other (i)
Total
(i) On 23 July 2020 the Company executed a Tenement Sale Agreement with Thunder Metals Pty Ltd
(Thunder Metals) to acquire 80% legal and beneficial interest in the Tenements. On 7 October 2020
the Company elected to exercise the Option and made a cash payment of $57,500 and issued
1,250,000 fully paid ordinary share to Thunder Metals. The Company will issue a further 1,250,000
fully paid shares upon grant of the presently ungranted Tenements representing not less than 51% of
the total area and a final cash payment of $50,000 for the balance 49% of the total area.
2021
$
185,069
119,592
72,043
376,704
25,707
241,250
266,957
Balance at 1 July 2020
Movement in provision
Balance at 30 June 2021
17. Leases
Right-of-use asset
Non-current
Total
Balance at 1 July 2020
Additions
Depreciation expense
Balance at 30 June 2021
Employee benefits
$
–
25,707
25,707
Other
$
–
241,250
241,250
2021
$
62,518
62,518
Building
$
–
84,734
(22,216)
62,518
2020
$
5,815
25,500
–
31,315
–
–
–
Total
$
–
266,957
266,957
2020
$
–
–
Total
$
–
84,734
(22,216)
62,518
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
17. Leases (cont’d)
Lease liability
Current
Non-current
Total
Amounts recognised in profit or loss
Depreciation expense on right-of-use asset
Interest expense on lease liabilities
Total
18.
Issued capital
55,060,100 fully paid ordinary shares (2020: 9,010,100)
Total
2021
$
51,473
12,168
63,641
22,216
1,638
23,854
2021
$
8,268,845
8,268,845
2021
No.
$
Balance at beginning of financial period
9,010,100
409,461
Issue of shares – incorporation
Issue of shares – Founder shares
Issue of shares – Seed investors (i)
Issue of shares – IPO (ii)
Issue of shares – Vendors for acquisition of tenements (iii)
–
–
200,000
40,000,000
5,850,000
–
–
10,000
8,000,000
1,170,000
Share issue costs
–
(1,320,616)
2020
No.
–
100
1,000,000
8,010,000
–
–
–
Balance at end of financial year
55,060,100
8,268,845
9,010,100
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
(i) On 2 July 2020 the Company received a late application for the seed raising of $10,000.
(ii) On 7 October 2020 the Company completed the IPO raising.
(iii) On 8 October 2020 the Company completed the acquisition of tenements.
19. Reserves
Option reserve
Balance at the beginning of the financial period
Share-based payment expense
Balance at end of financial year
Nature and purpose
The option reserve recognises the fair value of options issued and valued using the Black-
Scholes model.
2021
$
79,479
673,247
752,726
41 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
2020
$
–
–
–
–
–
–
2020
$
409,461
409,461
$
–
100
10,000
400,500
–
–
(1,139)
409,461
2020
$
–
79,479
79,479
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
19. Reserves (cont’d)
Share options
As at 30 June 2021, options over 17,260,000 (2020: 11,010,000) ordinary shares in aggregate are as follow:
Issuing entity
Miramar Resources Limited
Miramar Resources Limited
Miramar Resources Limited
Miramar Resources Limited
No of shares
under options
Class of shares
Options
exercise price
Option
expiry date
8,210,000
6,000,000
3,000,000
50,000
Ordinary
Ordinary
Ordinary
Ordinary
$0.20 each
22 Oct 2022
$0.25 each
9 Oct 2023
$0.20 each
26 Jun 2025
$0.48 each
6 Jan 2023
Share options are all unlisted, carry no rights to dividends and no voting rights. No options were exercised during the period.
The balance of reserves is made up as follows:
Option reserve
Total reserves
20. Accumulated losses
Balance at the beginning of the financial period
Loss attributable to members of the parent entity
Balance at end of financial year
21. Loss per share
Basic
Diluted
Basic and diluted loss per share
2021
$
752,726
752,726
2020
$
79,479
79,479
(189,516)
(1,019,910)
(1,209,426)
–
(189,561)
(189,516)
2021
cents per share
2020
cents per share
(2.39)
(2.39)
(192.28)
(192.28)
The loss and weighted average number of ordinary shares used in the calculation of basic and diluted loss per share are as follows.
Loss for the year/period
Weighted average number of ordinary shares for the purpose of basic loss per share
Effects of dilution from share options
Weighted average number of ordinary shares
adjusted for the effect of dilution loss per share
2021
$
2020
$
(1,019,910)
(189,516)
2021
No.
42,599,826
–
42,599,826
2020
No.
98,560
–
98,560
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
22. Commitments for expenditure
Exploration, evaluation & development (expenditure commitments)
Not longer than 1 year (i)
Longer than 1 year and not longer than 5 years
Longer than 5 years
Total
2021
$
2020
$
529,410
29,417
–
–
–
–
529,410
29,417
(i) Due to the nature of this expenditure, in that the expenditure commitments may be reduced by the relinquishment of tenements, estimates for the commitment
have not been forecast beyond June 2021. However, should the Group continue to hold the tenements beyond this date additional expenditure commitments
would arise.
23. Joint operations
Name of project
Gidji (i)
Principal activity
Exploration
Interest
2021
%
80
2020
%
0
(i)
The Company entered into a joint venture agreement with Thunder Metals Pty Ltd whereby Miramar (Goldfields) Pty Ltd retained a 80% interest in the Gidji Project.
24. Segment reporting
The Group operates in the mineral exploration industry in Australia. For management purposes, the Group is organised into one main operating
segment which involves the exploration of minerals in Australia. All of the Group’s activities are interrelated and discrete financial information is
reported to the Board as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Group as one segment.
Operating segments are identified and segment information disclosed on the basis of internal reports that are regularly provided to, or reviewed
by, the Group’s Chief Operating Decision Maker which, for the Group, is the Board of Directors. In this regard, such information is provided using
similar measures to those used in preparing the statement of profit or loss and comprehensive income and statement of financial position.
25. Related party disclosure
(a)
Equity interests in related parties
Equity interests in subsidiaries
Details of the percentage of ordinary shares held in subsidiaries are disclosed in note 4 to the financial statements.
Equity interests in joint operations
Details of the interests in joint operations are disclosed in note 23 to the financial statements.
(b)
Key management personnel (KMP) remuneration
Details of KMP remuneration are disclosed in pages 13 to 16 and note 7 to the financial statements.
(c)
Transactions with other related parties
Director transactions
XGS Exploration Geochemistry Services (XGS), of which Mr Allan Kelly is a Director, provided consulting services in relation to the IPO and
ASX listing of the Company to October 2020 amounting to $35,200. The services provided were on arms-length commercial terms.
At 30 June 2021 the Company did not owe XGS.
The Company entered in a lease agreement with XGS on 15 July 2020. The lease commenced from 1 July 2020 to 31 October 2020
amounting to $7,040. At 30 June 2021 the Company did not owe XGS.
The Company entered into a Sales and Purchase Agreement (S&P Agreement) with Debnal Pty Limited (Debnal), of which Mr Allan Kelly is
a Director, for mineral tenements and applications for mineral tenements in Whaleshark, Bangemall, Garden Gully, Lakeside, Lang Well and
Randalls (Tenements). On 8 June 2020 the Company made a non-refundable cash payment of $25,000 to Debnal for a 6-month exclusion
option to purchase the Tenements (Option). On 7 October 2020 the Company elected to exercise the Option and made a final payment of
$75,000 and issued 4,500,000 fully paid ordinary share at fair value of $0.20 per share to Debnal.
Ms Marion Bush provided geological services in relation to the IPO and ASX listing of the Company to October 2020 amounting to $18,500.
The services provided were on arms-length commercial terms. At 30 June 2021 the Company did not owe Ms Bush.
43 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
25. Related party disclosure (cont’d)
(d)
Parent entity
The ultimate parent entity in the Group is Miramar Resources Limited.
26. Subsequent events
On 13 September 2021 the Company advised that several key tenements within the 80% Gidji JV Project were granted. Pursuant to the agreement
disclosed in the Prospectus dated 4 September 2020, 1,250,000 fully paid ordinary shares will be issued when more than 51% of the total area of
ungranted project area are granted. The issue of shares has not occurred on the date of this report.
COVID-19
The COVID-19 pandemic continues to pose a global socio-political, economic and health risk. The potential for the pandemic to have both lasting
and unforeseen impacts is high. At this point in time the Group is experiencing minor delays in project timelines as a result of the pandemic. These
delays are not expected to be significant. As a Group, we adhere to the changes in government policies and changed the way we work to protect
the wellbeing of our people and ensure business continuity. We continue to maintain a state of response readiness commensurate with the risks
and in accordance with Government recommendations and health advice.
No other matters or circumstances have arisen since 30 June 2021 that may significantly affect the operations of the Company, the results of those
operations, or the state of affairs of the Group in future financial years.
27. Notes to the statement of cash flows
(a)
Reconciliation of cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes
cash on hand and in banks and investments in money market instruments, net of
outstanding bank overdrafts. Cash and cash equivalents at the end of the financial
period as shown in the statement of cash flows is reconciled to the related items in
the consolidated statement of financial position as follows:
Cash and cash at bank
Term deposit
Total
(b) Reconciliation of loss for the year to net cash flows used in operating activities
Loss for the year/period
Sale of tenements
Equity settled share-based payments
Depreciation of non–current assets
Depreciation of right of use assets
Write off exploration and evaluation expenses
Changes in fair value of financial assets designated at fair value through profit or loss
Interest expense
Changes in net assets and liabilities
Trade and other receivables
Trade and other payables and provisions
Net cash used in operating activities
(c) Non-cash financing and investing activities
2021
$
2020
$
2,805,388
2,250,000
5,055,388
(1,019,910)
(150,000)
2,765
30,647
22,216
219,554
13,559
1,638
(124,344)
346,247
(657,628)
327,771
–
327,771
327,771
–
79,479
–
–
–
–
–
(2,968)
30,176
(82,829)
During the current period, the Group did not enter into any non-cash investing and financing activities which are not reflected in the
consolidated statement of cash flows.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
28. Financial risk management objectives and policies
(a)
Financial risk management objectives
The Group manages the financial risks relating to the operations of the Group.
The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes although it
holds, at 30 June 2021, shares in other listed mining companies. The use of financial derivatives is governed by the Group’s Board of Directors.
The Group’s activities expose it primarily to the financial risks of changes in interest rates, but at 30 June 2021 it is also exposed to market
price risk. The Group does not enter into derivative financial instruments to manage its exposure to interest rate.
(b)
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the
basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are
disclosed in note 2 to the financial statements.
(c)
Interest rate risk management
The Group is exposed to interest rate risk as it places funds at both fixed and floating interest rates. The risk is managed by maintaining an
appropriate mix between fixed and floating rate products which also facilitate access to money.
Cash flow sensitivity analysis for variable rate instruments
A change of 1 per cent in interest rates at the reporting date would have increased profit or loss by the amounts shown below. This analysis
assumes that all other variables remain constant. The analysis is performed on the same basis for 2020:
2021
Variable rate instruments
Cash flow sensitivity
2020
Variable rate instruments
Cash flow sensitivity
Profit of loss
Equity
1%
increase
1%
decrease
1%
increase
1%
decrease
37,501
37,501
(37,501)
(37,501)
–
–
–
–
–
–
–
–
–
–
–
–
The following table details the Group’s exposure to interest rate risk.
Weighted
average
effective
interest rate
%
Fixed maturity dates
Variable
interest rate
$
Less than
1 year
$
1 – 5
years
$
5+
years
$
Non-interest
bearing
$
Total
$
2021
Financial assets
Cash and
cash equivalent
Trade and
other receivables
Other financial assets
Other receivables
– non-current
Total
Financial liabilities
Trade and
other payables
Total
0.05%
3,750,125
0.00%
0.00%
–
–
0.06%
50,000
3,800,125
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,305,263
5,055,388
71,313
86,441
71,313
86,441
6,000
56,000
1,469,017
5,269,142
376,704
376,704
376,704
376,704
45 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
28. Financial risk management objectives and policies (cont’d)
(c)
Interest rate risk management
Weighted
average
effective
interest rate
%
0.00%
0.00%
0.00%
2020
Financial assets
Cash and
cash equivalent
Trade and
other receivables
Total
Financial liabilities
Trade and
other payables
Total
(d)
Liquidity risk
Fixed maturity dates
Variable
interest rate
$
Less than
1 year
$
1 – 5
years
$
5+
years
$
Non-interest
bearing
$
Total
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
327,771
327,771
2,968
2,968
330,739
330,739
31,315
31,315
31,315
31,315
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The following table details the Group’s non-derivative financial instruments according to their contractual maturities. The amounts disclosed
are based on contractual undiscounted cash flows.
2021
Trade and
other payables
Total
2020
Trade and
other payables
Total
(e)
Credit risk
Less than
6 months
$
6 – 12
months
$
1 – 2
years
$
2+
years
$
376,704
376,704
31,315
31,315
–
–
–
–
–
–
–
–
–
–
–
–
Total
$
376,704
376,704
31,315
31,315
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 and obtaining sufficient collateral where appropriate, as a means of
mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored.
The Group measures credit risk on a fair value basis.
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.
(f) Market risk
Market risk is the potential for loss arising from adverse movements in the level and volatility of equity prices.
The Group’s listed equity investments are as detailed in note 11.
A 5 per cent increase at reporting date in the equity prices would increase the market value of the securities by $4,322 (2020: Nil) and an
equal change in the opposite direction would decrease the value by the same amount. The increase/decrease would be reflected in equity
as these financial instruments are classified as available–for–sale. The increase/decrease net of deferred tax would be $3,025 (2020: Nil).
(g) Capital risk management
The Group’s policy is to endeavour to maintain a strong capital base so as to maintain investor, creditor and market confidence and to
sustain future development of the business. The Group sources any additional funding requirements from either debt or equity markets
depending on the market conditions at the time the funds are sourced and the purpose for which the funds are to be used. The Group is
not subject to externally imposed capital requirements.
MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the financial year ended 30 June 2021
29. Financial instruments
The fair value of financial assets and financial liabilities of the Group approximated their carrying amount. It does not include fair value information
for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. The table
below analyses financial instruments carried at fair value by value measurement hierarchy.
Quantitative disclosures fair value measurement
hierarchy as at 30 June
2021
Assets measured at fair value
Available-for-sale financial assets (note 11):
Quoted equity shares (i)
Total
Quoted prices in
active market
(Level 1)
$
Significant
observable
inputs
(Level 2)
$
Significant
unobservable
inputs
(Level 3)
$
Total
$
86,441
86,441
–
–
–
–
86,441
86,441
The management assessed that cash and short-term deposits, trade receivables, trade payables and other current liabilities approximate their carrying amounts largely
due to the short term maturities of these instruments. The fair value of the financial assets is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair value:
(i)
Fair value of equity instruments and financial assets is derived from quoted market prices in active markets. Refer note 28(f) for market price risk impact.
30. Parent entity disclosures
The following details information related to the parent entity, Miramar Resources Ltd. The information presented here has been prepared using
consistent accounting policies as presented in note 2.
Results of the parent entity
Loss for the year/period
Other comprehensive income
Total comprehensive loss for the year/period
Financial position of parent entity at period end
Current assets
Non–current assets
Total assets
Current liabilities
Total liabilities
Total equity of the parent entity comprising of:
Share capital
Reserves
Accumulated losses
Total equity
2021
$
(3,234,720)
–
(3,234,720)
4,909,650
1,169,163
6,078,813
481,378
481,378
8,268,845
752,726
(3,424,136)
5,597,435
2020
$
(189,416)
–
(189,416)
330,739
100
330,839
31,315
31,315
409,461
79,479
(189,416)
299,524
(a) Guarantees entered into by the parent entity in relation to the debts of its subsidiary
The parent entity had not entered into any guarantees in relation to the debts of its subsidiary as at 30 June 2021 (30 June 2020: Nil).
(b)
Parent entity contingencies
The parent entity had no contingent liabilities as at 30 June 2021 (30 June 2020: Nil) other than disclosed in this financial report.
(c)
Commitments for the acquisition of property, plant and equipment by the parent entity
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 (30 June 2020: Nil) other than disclosed
in this financial report.
47 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021
ADDITIONAL SHAREHOLDER INFORMATION
CAPITAL
as at 13 September 2021
Miramar Resources Limited issued capital is as follows:
Ordinary fully paid shares
Number of ordinary fully paid shares at the date of this report are:
Quoted ordinary fully paid shares
Restricted fully paid shares until 22 October 2021
Restricted fully paid shares until 22 October 2022
Ordinary fully paid shares at 30 June 2021
Ordinary fully paid shares at the date of this report
End of escrow period
Number of shares
N/A
22 October 2021
22 October 2022
47,215,020
6,495,080
1,350,000
55,060,100
55,060,100
At a general meeting of shareholders:
(a) on a show of hands, each person who is a member or sole proxy has one vote; and
(b) on a poll, each shareholder is entitled to one vote for each fully paid share.
SUBSTANTIAL SHAREHOLDERS
Miramar Resources Limited has the following substantial shareholders:
Name
XGS Pty Ltd
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