Montem Resources Limited
ABN 87 623 236 831
Annual Report - 31 December 2021
Montem Resources Limited
Contents
31 December 2021
Corporate directory
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Montem Resources Limited
Shareholder information
Tenement List
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3
26
27
28
29
30
31
57
58
62
65
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Montem Resources Limited
Corporate directory
31 December 2021
Directors
Mark Lochtenberg, Chairman and Non-executive Director
Peter Doyle, Managing Director and CEO
Robert Tindall, Non-executive Director
Susie Henderson, Non-executive Director
William Souter, Non-executive Director
Company Secretary
Melanie Leydin
Registered office and principal
place of business
Level 4, 100 Albert Road
South Melbourne VIC 3205
Auditor
Solicitors
Bankers
William Buck
Level 20, 181 William Street
Melbourne VIC 3000
Dentons Australia Pty Ltd
567 Collins Street
Melbourne VIC 3000
McLennan Ross
600 McLennan Ross Building
12220 Stony Plain Road
Edmonton, AB, Canada T5N 3Y4
National Australia Bank
800 Bourke Street
Docklands VIC 3008
Royal Bank of Canada
1025 West Georgia Street
Vancouver BC Canada V6E 3N9
Stock exchange listing
Montem Resources Limited shares are listed on the Australian Securities Exchange
(ASX code: MR1)
Website
www.montem-resources.com
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Montem Resources Limited
Directors' report
31 December 2021
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'Consolidated Entity') consisting of Montem Resources Limited (referred to hereafter as the 'Company', 'Montem' or
'Parent Entity') and the entities it controlled at the end of, or during, year ended 31 December 2021.
Directors
The following persons were Directors of Montem Resources Limited during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Mark Lochtenberg, Chairman and Non-executive Director
Peter Doyle, Managing Director and CEO
Robert Tindall, Non-executive Director
Susie Henderson, Non-executive Director
William Souter, Non-executive Director
Company overview and principal activities
Montem is a steelmaking coal and renewable energy development company that owns and leases coal tenements and
freehold land in the Canadian provinces of Alberta and British Columbia.
The Company’s objective is to become the operator of steelmaking coal mines and renewable energy developments in
Canada by developing its projects in the Crowsnest Pass. The first component of this objective is the ongoing process of re-
establishing mining at the Tent Mountain Mine, while in parallel evaluating the transition of the Tent Mountain Mine to become
a Renewable Energy Complex. The second component of this objective is to continue exploring and evaluating the
development potential of the Chinook Project.
During the year ending 31 December 2021 the principal continuing activities of the Company were the exploration and
development of its two primary steelmaking coal projects, the Tent Mountain Mine Redevelopment Project and the Chinook
Project, while in parallel evaluating the Tent Mountain Renewable Energy Complex (TM-REX). In addition, the Company has
been engaging with the Government of Alberta and its appointed Coal Policy Review Committee regarding the review of the
Alberta 1976 Coal Development Policy.
Montem’s projects are located in the Crowsnest Pass, of southwest Alberta, Canada, which is a historical coal mining region.
The Tent Mountain Mine Redevelopment Project and the Chinook Project are estimated to contain 232 million tonnes (Mt)
of in-place coal resources (JORC 2012). Both projects have been explored extensively and have hosted historical open-cut
and underground coal mining operations.
In an effort to re-establish mining at Tent Mountain, over the past three years the Company has completed extensive
exploration and engineering studies, including a Definitive Feasibility Study. In 2021, the project was designated for Federal
review by the Impact Assessment Agency of Canada, and the Company continues to seek approval to restart the mine.
In light of delays to the mine re-start and following separate independent expert studies in 2019 and 2021, Montem identified
alternate opportunities for Tent Mountain, including transitioning the project to become a renewable energy complex made
up of a 320MW Pump Hydro Energy Storage (PHES), a 100 MW green hydrogen electrolyser, and a 100 MW wind farm.
The Company is progressing studies to support development of the TM-REX, including a feasibility study.
The TM-REX will aim to repurpose existing assets at Tent Mountain which include a 300m drop (or average “head”) between
two large water reservoirs that were formed during previous mining operations. The site is near Alberta’s high voltage
electricity transmission grid, has great existing infrastructure to support development, and is adjacent to rail, gas pipelines
and the interprovincial Highway 3.
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The Company has also identified the potential for a large mining complex to be established at the Chinook Project. A Scoping
Study, being a preliminary technical and economic study of the potential viability of open cut mining at the Chinook Project,
was announced in February 2021 (please refer to the cautionary statement included in the 9 February 2021 announcement
“Montem completes positive Scoping Study at the Chinook Project”). The study identifies an open cut mine opportunity at
the Chinook Project. Results from the Scoping Study indicate an economically and technically viable project with upside
justifying progressing to a Pre-Feasibility Study.
On 4 March 2022, the Alberta Government announced results of its year long coal policy review, The Alberta Minister of
Energy released the Coal Policy Committee reports (one outlining the public consultation and one setting out their
recommendations) and indicated that all its recommendations are being adopted. The report made eight principal
recommendations, with the result being a further pause on coal development while the Coal Policy is modernised.
The impact of that statement is the new Coal Policy is unlikely to be settled for a number of years while subregional plans
are developed. In addition, the South Saskatchewan Regional Plan which cover all of Montem’s assets expires in 2024 and
must then be reviewed.
Finally, under a new Ministerial Order, no exploration or development activities can be carried out on any coal lands,
regardless of land category, with the exception designated “advanced projects”. Fortunately for Montem, the Tent Mountain
restart project has been identified as an advanced project, along with three other projects in Alberta.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the Consolidated Entity after providing for income tax amounted to $14,055,639 (31 December 2020:
$3,411,080).
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The Consolidated Entity recognised an impairment loss of $10,416,991 in relation to Tent Mountain project costs.
Management, conservatively, recognised impairment losses on Tent Mountain due to the Federal Impact Review, which
was commissioned during the financial year.
The Consolidated Entity incurred operating cash outflow of $3,283,362 (2020: $1,723,788). This includes $305,904 on
initial set-up and consulting work related to feasibility studies for the TM-REX project.
The Consolidated Entity incurred evaluation and exploration costs of $3,357,428 (2020: $6,004,568) during the year.
The Consolidated Entity raised capital of $7,745,179 (2020: $9,229,132), net of cash costs during the year.
As at 31 December 2021, the cash balance was $3,803,727 (2020: $3,434,480) and net working capital surplus was
$3,197,879 (2020: Surplus of $2,451,918).
The loss for the current period is consistent with the principal activities of the Consolidated Entity with no revenue-generating
activities.
Exploration, mine and renewable energy complex development
Tent Mountain Mine
In 2021 the Company concentrated their efforts on planning the re-start of the Tent Mountain Mine and undertaking the
necessary steps to work through the regulatory process to re-start the mine.
The Company has been undertaking environmental testing and monitoring since early-2018 to facilitate the Alberta Energy
Regulator (AER) environmental permit amendment applications required to restart the mine. This environmental analysis
includes surface water quality and groundwater monitoring, flora and fauna surveys, fisheries and aquatics surveys as well
as cultural and archaeology studies. These surveys and studies have enabled impact assessment reports to be completed,
which are being used to underpin the permit amendment applications.
In January 2021, the AER recommended the Company undertake an Environmental Impact Assessment (EIA) for the mine
re-start. The Company worked with the AER, Indigenous Peoples, the local community, and stakeholders to determine the
appropriate Terms of Reference (TOR) for the EIA. In May 2021, the AER published the final TOR, which is an important
project milestone as it allows the Company to complete the remaining reports in support of the EIA.
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Directors' report
31 December 2021
In June 2021, the Canadian Federal Minister of Environment and Climate Change designated the Tent Mountain Mine
Redevelopment Project as a project requiring review under the Federal Impact Assessment Act. Hence the Tent Mountain
Mine, requires both Provincial and Federal approval to re-start. On 25 November 2021, the Impact Assessment Agency of
Canada (“IAAC”) began a review of the Tent Mountain Mine Redevelopment Project, by accepting Montem’s Initial Project
Description (“IPD”) submission. This was the first step in the IAAC Federal review process, which was followed by a 20-day
public review period. On 29 December 2021, IAAC provided the Company with a high-level summary of the issues submitted
during the IPD 20-day public review period. The next step is for Montem to address the issues raised in a Detailed Project
Description (“DPD”), something the Company is working toward completing in 2022.
On 4 March 2022 the Alberta Government announced a new Ministerial Order pausing coal development for all coal projects
in Alberta except for advanced projects. Tent Mountain qualifies as an advanced project, enabling Montem to continue the
permitting process.
Tent Mountain Renewable Energy Complex
On 18 October 2021 the Company made an announcement of plans to transition the Tent Mountain Mine to become a
renewable energy complex. The TM-REX will consists of three primary elements:
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320 MW Pumped Hydro Energy Storage
100 MW Green Hydrogen Electrolyser
100 MW Wind Farm (offsite)
In October 2021, the Company established a Steering Committee, chaired by experienced Canadian power industry
executive Will Bridge, to drive the development of the TM-REX. Over the course of 2022, the Steering Committee will move
the TM-REX through the front-end engineering and design (FEED) project phase. The FEED project phase is being driven
by appointed experts in engineering, project management, environment, permitting, indigenous consultation and
engagement and green Hydrogen.
The Company is working with the Piikani Nation to progress development plans for the TM-REX. The Piikani Nation and
Montem have agreed to explore the mutual benefits of the Project, and to investigate the development of a wind farm to
supply electricity to the Tent Mountain PHES. In October 2021, the Company applied to Canada’s Clean Fuels Program for
C$5 million to help fund the next phase of work, which will include a Feasibility Study.
Chinook Project
In February 2021, the Company released summary results of a Scoping Study that focused on the Chinook Vicary area of
the Chinook Project. The Scoping Study identifies an open cut mine opportunity at the Chinook Project, centred around the
historical Vicary underground mine. Results from the Scoping Study indicate an economically and technically viable project
with upside justifying progressing to a Pre-Feasibility Study.
The Scoping Study considered Montem’s JORC (2012) Indicated and Inferred in-place resource of 149.1Mt (Indicated
103.8Mt; Inferred 45.3Mt), and leverages existing rail, power, and road infrastructure adjacent to the project. As the proportion
of Indicated Resources underpinning the engineering study is less than 70%, the resulting financial analysis of the Study are
not able to be released to the market (in accordance with regulatory requirements).
The Chinook Project has the potential to be a major open-cut steelmaking coal project adjacent to rail, power, and highway
infrastructure. The Company focused on the Chinook Vicary area of the project as it is within Category 4 lands, has the
advantage of brownfield development, and sits adjacent to a historical mine that previously exported high quality hard coking
coal to Japanese steel makers.
Following the release of the Scoping study, the Company announced the results of coal quality test work performed on drill
samples collected at Chinook Vicary in Q4 2020.
Large diameter core samples, obtained from Montem’s exploration drilling at Chinook Vicary in late 2020, were analysed,
with coal quality and carbonization results confirming the occurrence of high quality low volatile Hard Coking Coal (HCC) at
Chinook Vicary. Chinook Vicary coal attributes fit precisely in the specification range to be marketed as a “Premium Low Vol
Hard Coking Coal”. Working section clean coal composite produced high simulated plant yields with low ash: 9.1%; low
volatile matter: 21.4%; low total sulphur: 0.48%; favourable rank (RoMax): 1.31%; and outstanding CSR: 70 The drilling at
Chinook Vicary was within the conceptual open-cut pit shell areas designed during the Chinook Project Scoping Study. These
drilling and coal quality results formed the basis of an update to the JORC Resource Estimate for Chinook Vicary, completed
in Q3 2021.
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31 December 2021
Operations
In the period from January to December 2021 Montem encountered significant interruption to our business plan. A series of
decisions by regulators in Alberta and Federally in Canada have impacted our business and put downward pressure on our
share price. Nonetheless, the Directors believe our Canadian coal assets remain viable, and we have a viable business plan
to prudently advance our projects while protecting the Company’s value. Montem is working with both provincial and federal
regulators to ascertain the correct pathway for re-starting the Tent Mountain Mine, and in November 2021 began the IAAC
Federal review process for Tent Mountain. The Company also actively participated in in the provincial review of the Coal
Policy undertaken by the Alberta Government. The Company hosted multiple site visits by regulators and the Alberta Coal
Policy Review Committee.
Business planning
The Company has undertaken a review of our business strategy in response to the regulatory decisions in 2021, and early
2022.
The outcome of this is an updated business plan focusing on these areas:
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Continuing development of the Tent Mountain Mine;
Alternate methods to protect and maximize value from Chinook Project and other development assets;
Evaluating the transition of Tent Mountain to become a renewable energy complex; and
Investigating potential acquisitions of active coking coal mines.
Alberta Legislation
In Alberta, coal projects are regulated by the Alberta Energy Regulator (AER) under the Environmental Protection and
Enhancement Act (EPEA) and the Coal Conservation Act (CCA). The following Albertan environmental legislation apply to
Montem Resources properties excluding the Tent Mountain Mine which retains an EPEA permit:
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Environmental Protection and Enhancement Act (EPEA)
Coal Conservation Act
Water Act
Public Lands Act
On 2 August 2021, Montem announced it has completed a JORC Resource Estimate update for the Chinook Project. The
coal Resource Estimate for the Chinook Project has increased by 23Mt to 172Mt (108Mt Indicated and 64Mt Inferred). The
Chinook Project is made up of two areas, Chinook Vicary and Chinook South. Along with the 172Mt coal Resource Estimate,
the Project also contains a coal Exploration Target Estimate of an additional 125Mt to 450Mt at Chinook Vicary.
On 4 March 2022, the Alberta Government announced a new Ministerial Order pausing coal development for all coal projects
in Alberta except for advanced projects. The Tent Mountain Mine re-start project qualifies as an advanced project and is able
to continue with the regulatory process for mine permitting. The Chinook Project does not qualify as an advanced project,
and all work on the project is suspended pending new information on the Coal Policy from the Alberta Government.
The Government of Alberta has indicated that, in the coming months, additional clarity regarding land use and coal
activities will be made apparent by an update to Alberta’s Eastern Slopes policy, that will incorporate the Alberta 1976 Coal
Development Policy land categories, and through the development of new regional, sub-regional or issue-specific
plans. Pending that update, the moratorium on exploration and development activities that previously affected only
Category 2 lands has been extended to include all land categories with the exception of advanced coal projects (e.g. the
Tent Mountain Mine). For that reason, Montem must wait for the release of the Government’s updated policies and plans
before conducting further exploration and development activities at its other Alberta coal projects, including the Chinook
Project.
The Chinook Project lies within the South Saskatchewan Regional Plan (“SSRP”) which was established in 2014. This is
one of two Land-Use Framework Regional Plans (“LUFRP”) Alberta has completed to date. The LUFRP set out the
approach to managing Alberta’s land and natural resources to achieve Alberta’s long-term economic, environmental and
social goals.
The SSRP addressed coal development, particularly the opportunity for responsible development:
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“The Government of Alberta is continuing to explore development opportunities for our abundant coal deposits. Given the
current and anticipated future global demand for coal, particularly from Asian markets, maintaining opportunities for
responsible development of coal resources is important to the region and the province.”
“Ensuring opportunities for coal exploration and development in the region will create economic diversification opportunities
and export markets for Alberta coal and mineral resources and will result in increased employment in the region.”
(p.14 South Saskatchewan Regional Plan)
A clear objective of the SSRP implementation plan was to establish and protect opportunities for responsible exploration,
development and extraction of energy resources. Of particular note, within the SSRP is the identification of special status for
freehold mineral rights. Within Montem’s estimated coal resources, there are over 100Mt (Indicated and Inferred JORC
resource) which lie within freehold tenements.
The SSRP identifies the need to maintain the ability for freehold mineral right holders to access their resource.
(Energy) Strategies:
1.7. Ensure rules regarding access to energy and processing and transportation of energy resources are clear and ensure
economic development opportunities are appropriately considered against other land uses and values.
1.8. Maintain physical access to freehold (that is, privately owned) petroleum and natural gas, coal and minerals.
(p.47 South Saskatchewan Regional Plan)
In addition, the plan also states that freehold coal rights are exempt from the restrictions associated with any part of the plan
(p.204 South Saskatchewan Regional Plan).
The current SSRP is to be reviewed before it expires in 2024, and Montem is eager to work with regulators to ensure that
existing goals of the SSRP regarding responsible resource development are maintained, and that freehold coal rights
continue to be explicitly recognised as exempt from the plan.
As Montem owns substantial steelmaking coal resources in Alberta held as “fee simple” through our Freehold Mineral Rights,
we are now investigating ways to access this coal.
Canadian Federal Legislation
Coal mining is typically an activity that requires the preparation and submission of an Impact Assessment report as per the
Canadian Federal Impact Assessment Act of 2019 (Act) and as established on a project by project basis by the Physical
Activities Regulation of that Act. Greenfield coal mine projects, including the Chinook Project, are generally subject to an
Impact Assessment according to the Physical Activities Regulations.
In June 2021, the Federal Minister of Environment and Climate Change, the Honourable Jonathan Wilkinson, designated the
Tent Mountain Redevelopment Project for Federal review under the Act. He took into account that the Project may cause
adverse effects to the transboundary environments, indigenous peoples and fish and fish habitat, given the uncertainty
related to the effectiveness of proposed measures to avoid deposition of selenium and other deleterious substances. Minister
Wilkinson also took into consideration public concerns related to these potential effects and the context that the entire Project
is not captured in a single provincial assessment. Subsequently, the Company is working their way through the Federal
review process.
Significant changes in the state of affairs
On 26 February 2021, the Company issued 30,394,021 ordinary shares at $0.17 per share, raising $5,166,984 (before
transaction costs) by way of share placement to sophisticated and professional investors.
On 29 March 2021, the Company issued 1,176,475 ordinary shares at $0.17 per share, raising $200,000 (before transaction
costs) by way of share placement to sophisticated and professional investors.
On 28 May 2021, the Company issued 1,692,606 Options over ordinary shares to the directors of the Company, following
shareholder approval at the Annual General Meeting held on 30 April 2021, with following terms:
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31 December 2021
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564,203 Options with exercise price of $0.31, which were vested on issue and expire on 28 May 2026
564,203 Options with exercise price of $0.37, which will vest on 28 May 2022 and expire on 28 May 2026
564,203 Options with exercise price of $0.50, which will vest on 28 May 2023 and expire on 28 May 2026
On 30 June 2021, 150,000 Performance Rights over ordinary shares and 750,000 Options over ordinary shares were
forfeited as the conditions attached with these securities have not been, or have become incapable of being, satisfied.
During July and August 2021, 1,181,810 Performance Rights over ordinary shares were forfeited as the conditions attached
with these securities have not been, or have become incapable of being, satisfied.
On 18 October 2021, the Consolidated Entity announced that it is transitioning the Tent Mountain Project in Alberta, Canada
to Renewable Energy Complex aiming to produce Green Hydrogen. The Tent Mountain Renewable Energy Complex will
integrate wind and hydropower to produce green hydrogen at Tent Mountain. Further detail is included under the Review of
Operations.
On 24 December 2021, the Company issued 55,608,150 ordinary shares at $0.051 (0.51 cents) per share, raising $2,836,016
(before transaction costs) by way of share placement to sophisticated and professional investors to advance the TM-REX
feasibility studies and working capital. In addition, the Company will issue a further 2,941,176 shares for $150,000 to
Chairman Mark Lochtenberg following shareholder approval at the General Meeting held on 17 March 2022.
There were no other significant changes in the state of affairs of the Consolidated Entity during the financial year.
Matters subsequent to the end of the financial year
On 7 March 2022, the Company announced that it has reviewed the Coal Policy Committee (“Committee”) reports and
recommendations, and the accompanying Ministerial Order, following the Committee’s review of the Alberta 1976 Coal
Development Policy, as released by the government of Alberta on 4 March 2022. As a result of the Committee’s
recommendations, the Alberta Government has designated Montem’s Tent Mountain Mine an advanced coal project.
Alberta’s advanced coal projects are unaffected by the Ministerial Order’s additional exploration and development restrictions
implemented as a result of the Committee’s recommendations. The Company confirmed that it will continue to advance Tent
Mountain through the Federal and Provincial permitting processes.
The Chinook Project, and other development assets in Alberta do not qualify as advanced assets, and hence all activities on
the Chinook Project and other Alberta coal assets is suspended pending additional information from the Alberta Government.
As the Company owns significant steelmaking coal resources as Freehold Mineral Rights in Alberta the Company continues
to investigate alternate means of accessing these assets.
No other matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly
affect the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in
future financial years.
Likely developments and expected results of operations
The Company continues to advance two parallel strategies for developing Tent Mountain:
1. restart of the existing coal mine;
2. transition of the existing coal mine to a renewable energy complex (“TM-REX”).
The Company intends to continue with permitting activities for the re-start of the Tent Mountain Mine.
Work on TM-REX will continue for the remainder of the first half of 2022 until the economic analysis of TM-REX is available,
at which point the investment potential of both development pathways can be compared.
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31 December 2021
Competent persons statement
Scoping Study
The information contained in this report relates to information compiled or reviewed by Mr Gregory Eisenmenger who is a
Member of the Australasian Institute of Mining and Metallurgy (304702). Gregory is Executive Consultant at RPMGlobal. He
has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he
is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Results, Mineral Resources and Ore Reserves. Mr Eisenmenger consents to the inclusion of
the information disclosed by the Company in the form in which it appears. Neither Mr Eisenmenger nor RPMGlobal have a
direct or indirect financial interest in, or association with Montem Resources Limited, the properties and tenements reviewed
in this statement, apart from standard contractual arrangements for the preparation of this report and other previous
independent consulting work. In preparing this Scoping Study RPMGlobal has been paid a fee for time expended on this
report. The present and past arrangements for services rendered to Montem Resources do not in any way compromise the
independence of RPMGlobal.
Exploration Results
The information in this release that relates to 2021 Mineral Resource Estimates for the Vicary Domain of the Chinook Project
is based on, and fairly represents, information and supporting documentation prepared by Mr. Shaun Tamplin, an employee
of Tamplin Resources Pty Ltd (Tamplin Resources) and a member of the Australasian Institute of Mining and Metallurgy (No.
228544). Mr. Tamplin has sufficient experience (20+ years) of relevance to the styles of mineralisation and the types of
deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012
Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Mr. Tamplin consents to the inclusion in this report of the matters based on information in the
form and context in which it appears.
The information in this release that relates to the 2020 Coal Quality, Mineral Resource Estimates and Exploration Target
Estimates at the Chinook Project are extracted from the report; “Coal Resources for the Chinook Project Alberta, Canada,
April 9, 2020”. This document was prepared by Dahrouge Geological Consulting Ltd. and lodged with the ASX on 31 July
2020 and is available to view on the Company’s website www.montem-resources.com. The Company confirms that it is not
aware of any new information or data that materially affects the information included in the original market announcement
and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement
continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent
Person’s findings are presented have not been materially modified from the original market announcement.
Forward looking statements
This annual report includes certain forward-looking statements that have been based on current expectations about future
acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and
assumptions that could cause those acts, events and circumstances to differ materially from the expectations described in
such forward-looking statements.
These factors include, among other things, commercial and other risks associated with the meeting of objectives and other
investment considerations, as well as other matters not yet known to the Company or not currently considered material by
the Company.
Environment, Health and Safety
The Company’s Board believes that all workplace injuries are avoidable. To that end, Montem has adopted an overall
environmental, health and safety policy. The detailed policies and procedures were written with the assistance of third-party
expertise in the development of such policies for coal mining in Alberta and British Columbia.
The Company conducts its operations in compliance with the relevant Albertan regulations for occupational health and safety
for coal mining. The Company has recorded no Loss Time Injuries and continues to operate without a Loss Time Injury since
inception.
Directors address Health, Safety and Environment issues at each Board meeting and are satisfied that there were no reported
Lost Time Injuries or environmental incidents during the period.
Exploration and development activities require a variety of regulatory approvals as detailed in the applicable regulatory
regime, including environment plans, safety procedures and the preparation of plans to manage the undertaking of the
activities and the contractors engaged in undertaking such activities.
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Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Mark Lochtenberg
Chairman and Non-executive Director
LLB (Hons)
Mr Lochtenberg graduated with a Bachelor of Law (Hons) degree from Liverpool
University, U.K. and has been actively involved in the coal industry for more than 30
years.
Mr Lochtenberg is the former Executive Chairman and founding Managing Director of
ASX-listed Baralaba Coal Company Limited (formerly Cockatoo Coal Limited). He was
a principal architect of Cockatoo’s inception and growth from an early-stage grassroots
explorer through to an emerging mainstream coal producer.
Mr Lochtenberg was also formerly the co-head of Glencore International AG’s
worldwide coal division, where he spent 13 years overseeing a range of trading
activities including the identification, due diligence, negotiation, acquisition and
aggregation of the coal project portfolio that would become Xstrata Coal.
Prior to this Mr Lochtenberg established a coal “swaps” market for Bain Refco,
(Deutsche Bank) after having served as a senior coal trader for Hansen Neuerburg AG
and as coal marketing manager for Peko Wallsend Limited.
Mr Lochtenberg has previously been a Director of ASX-listed Pacific American Coal
Limited and Cumnock Coal Limited and of privately held United Collieries Pty Limited
and is currently a Director of Australian Transport and Energy Corridor Pty Limited,
(ATEC), ASX-listed Nickel Mines Limited Equus Mining Limited and Terracom
Resources Limited.
Director, Equus Mining Limited, Nickel Mines Limited and Terracom Resources
Limited.
Former directorships (last 3 years): Nil
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Contractual rights to shares:
Member of Audit and Risk Committee
8,782,154 ordinary shares
350,194
525,097
Nil
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Montem Resources Limited
Directors' report
31 December 2021
Name:
Title:
Qualifications:
Experience and expertise:
Peter Doyle
Managing Director and Chief Executive Officer
BSc (Geol), MBA
Mr Doyle is a geologist with 25 years coal industry experience. Mr Doyle has worked in
roles in exploration, planning, development, production, and management. Previous
positions include VP Marketing and Business Development at Atrum Coal Ltd, Chief
Operating Officer at Cockatoo Coal Ltd, VP Coal at Wood Mackenzie and Project
Manager at Glencore (Xstrata Coal).
As well as having spent the first decade of his career working at coal mines in the
Hunter Valley, Mr Doyle has worked in project development, marketing and
management in the coal industries of China, USA, Mongolia, Russia and Europe. Mr
Doyle has been involved in successful greenfield and brownfield coal mine
developments, and managed coal mines selling to export metallurgical markets.
Mr Doyle was previously a Director at Wiggins Island Coal Terminal, and at ATEC Rail
Group.
Mr Doyle has been based in Canada since 2014. Mr Doyle joined Montem Canada in
2017 and became Managing Director of the Company in January 2018.
Mr Doyle holds a Bachelor of Science (Geology), and MBA from Newcastle University.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Nil
Special responsibilities:
3,569,728 ordinary shares
Interests in shares:
2,088,278
Interests in options:
3,200,389
Interests in rights:
Nil
Contractual rights to shares:
Name:
Title:
Qualifications:
Experience and expertise:
Mr Robert Tindall
Non-executive Director
BA, M.Tax
Mr Tindall has over 25 years of resources and finance experience and is the founder
of Montem Resources.
Mr Tindall has been the founder of several resource companies including being the Co-
Founder and Chairman of Origins, a bulk soft commodities business. Mr Tindall was
previously the CEO of Transatlantic Mining Corporation. He is the principal of GTG
Corporate and has extensive experience in funding a number of resource projects
globally including coal projects in Australia.
Mr Tindall holds a Bachelor of Arts and a Master of Taxation Degree and is a Fellow of
the Australian Institute of Company Directors.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Contractual rights to shares:
Member of Remuneration and Nomination Committee
13,936,864 ordinary shares
933,852
716,926
Nil
11
Montem Resources Limited
Directors' report
31 December 2021
Name:
Title:
Qualifications:
Experience and expertise:
Ms Susie Henderson
Non-executive Director
BBus (Acct), CPA, GAICD.
Ms Henderson is a management consultant with focus on infrastructure and mining.
Ms Henderson is currently President North America for GHD Advisory, a global
consulting firm.
Ms Henderson has over 20 years global experience in the field and is highly respected
for her strong strategic positioning skills and has a background in operational and
financial audit. Ms Henderson is also currently a committee member on the Global GHD
Board finance committee Previous roles include GM – Strategic Infrastructure and
Government Relations at Macarthur Coal Ltd, Executive Management with Aurizon
(Coal) and Project Development Manager with London Underground.
Ms Henderson has worked across a wide range of industries and across a variety of
jurisdictions in Canada, the United States, Latin America, Southeast Asia, England and
Australia. Ms Henderson's areas of focus include government, mining/ resources,
infrastructure/ logistics and energy. In addition to her degree in Accounting, Ms
Henderson has completed the globally recognized and rigorous CPA® and AICD®
Programs as well as being nominated for the EY Entrepreneur of the Year.
Ms Henderson is a Graduate of Australian Institute of Company Directors, a Certified
Practicing Accountant and holds a Bachelor of Business.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Contractual rights to shares:
Name:
Title:
Qualifications:
Experience and expertise:
Chair of Audit and Risk Committee and Member of Remuneration and Nomination
Committee
368,431 fully paid ordinary shares
350,194
425,097
Nil
Mr William Souter
Non-executive Director
BCom, LLB (Adel), IPAA, Admitted to the Supreme Court of NSW, GAICD
Mr Souter is a lawyer and investment banker with extensive global transaction and
fundraising experience, particularly in the resource sector.
Mr Souter was previously Executive Director at RFC Ambrian and currently CFO at
Atomo Diagnostics. Prior
include as a Director at
roles of Mr Souter
PricewaterhouseCoopers, and at Minter Ellison Lawyers.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Special responsibilities:
Interests in shares:
Interests in options:
Interests in rights:
Contractual rights to shares:
Chair of Remuneration and Nomination Committee and Member of Audit and Risk
Committee
341,763 ordinary shares
350,194
425,097
Nil
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
12
Montem Resources Limited
Directors' report
31 December 2021
Company Secretary
Melanie Leydin – BBus (Acc. Corp Law) CA FGIA
Ms Leydin holds a Bachelor of Business majoring in Accounting and Corporate Law. Ms Leydin is a member of the Institute
of Chartered Accountants, Fellow of the Governance Institute of Australia and is a Registered Company Auditor. Ms Leydin
graduated from Swinburne University in 1997, became a Chartered Accountant in 1999 and from February 2000 to October
2021 was the principal of Leydin Freyer. In November 2021 Vistra acquired Leydin Freyer and, Melanie is now Vistra
Australia's Managing Director. Vistra is a prominent provider of specialised consulting and administrative services to clients
in the Fund, Corporate, Capital Markets, and Private Wealth sectors.
Ms Leydin has over 25 years’ experience in the accounting profession and over 15 years’ experience holding Board positions
including Company Secretary of ASX listed entities. She has extensive experience in relation to public company
responsibilities, including ASX and ASIC compliance, control and implementation of corporate governance, statutory financial
reporting, reorganisation of companies, initial public offerings, secondary raisings and shareholder relations.
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held during the
year ended 31 December 2021, and the number of meetings attended by each Director were:
Full Board
Attended
Held
Attended
Audit and Risk
Held
Remuneration and
Nomination
Attended
Held
Robert Tindall
Peter Doyle
William Souter
Susie Henderson
Mark Lochtenberg
15
16
15
15
16
16
16
16
16
16
-
-
7
7
6
-
-
7
7
7
1
-
1
1
-
1
-
1
1
-
Held: represents the number of meetings held during the time the Director held office or was a member of the relevant
committee.
Shares under option
Unissued ordinary shares of Montem Resources Limited under option at the date of this report are as follows:
Grant date
12/01/2018
12/01/2018
12/01/2018
12/01/2018
31/01/2018
31/01/2018
31/01/2018
06/04/2018
06/04/2018
06/04/2018
08/07/2019
08/07/2019
08/07/2019
24/09/2019
24/09/2019
28/05/2021
28/05/2021
28/05/2021
Expiry date
12/01/2023
12/01/2023
31/12/2023
31/12/2024
12/01/2023
12/01/2023
12/01/2023
12/01/2023
31/12/2023
31/12/2024
12/01/2023
31/12/2023
31/12/2024
23/09/2022
23/09/2022
28/05/2026
28/05/2026
28/05/2026
13
Exercise
price
Number
under option
$0.6300
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.2500
$0.2500
$0.3100
$0.3700
$0.5000
1,086,667
649,805
649,806
649,806
233,463
233,463
161,832
116,732
116,732
116,730
58,366
58,366
58,365
1,000,000
375,000
564,203
564,203
564,200
7,257,739
Montem Resources Limited
Directors' report
31 December 2021
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Company or of any other body corporate.
Shares under performance rights
Unissued ordinary shares of Montem Resources Limited under performance rights at the date of this report are as follows:
Grant date
01/06/2018
08/07/2019
24/09/2019
30/06/2020
30/06/2020
Expiry date
01/06/2023
01/06/2023
30/06/2023
01/06/2023
30/06/2023
Exercise
price
Number
under rights
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
2,287,803
175,097
2,475,000
1,225,000
1,225,000
7,387,900
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in
any share issue of the Company or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Montem Resources Limited issued on the exercise of options during the year ended 31
December 2021 and up to the date of this report.
Shares issued on the exercise of performance rights
There were no ordinary shares of Montem Resources Limited issued on the exercise of performance rights during the year
ended 31 December 2021 and up to the date of this report.
Indemnity and insurance of officers
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
William Buck continues in office in accordance with section 327 of the Corporations Act 2001.
14
Montem Resources Limited
Directors' report
31 December 2021
This report is made in accordance with a resolution of the Board of Directors.
On behalf of the Directors
___________________________
Mark Lochtenberg
Chairman
29 March 2022
Remuneration report (audited)
The remuneration report details the Key Management Personnel remuneration arrangements for the Consolidated Entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key Management Personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all Directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to Key Management Personnel
Principles used to determine the nature and amount of remuneration
The objective of the Consolidated Entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board'), through Remuneration and Nomination committee, ensures that executive
reward satisfies the following key criteria for good reward governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board, through Remuneration and Nomination committee, is responsible for determining and reviewing remuneration
arrangements for its directors and executives. The performance of the Consolidated Entity depends on the quality of its
directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high quality
personnel.
In consultation with external remuneration consultants (where appropriate), the Board has structured an executive
remuneration framework that is market competitive and complementary to the reward strategy of the Consolidated Entity.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●
achieving project milestones, funding requirements and operational excellence as a core component of plan design;
focusing on sustained growth in shareholder wealth, consisting of growth in share price (and potential future dividends),
and delivering constant or increasing return on assets as well as focusing the executive on key non-financial drivers of
value; and
attracting and retaining high calibre executives
●
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
15
Montem Resources Limited
Directors' report
31 December 2021
In accordance with best practice corporate governance, the structure of Non-executive Director and Executive Director
remuneration is separate.
Non-executive Director's remuneration
Fees and payments to Non-executive Directors reflect the demands and responsibilities of their role. Non-executive Directors'
fees and payments are reviewed periodically by the Board. The Board may, from time to time, receive advice from
independent remuneration consultants to ensure Non-executive Directors' fees and payments are appropriate and in line
with the market. The Chairman's fees are determined independently to the fees of other Non-executive Directors based on
comparative roles in the external market. The Chairman is not present at any discussions relating to the determination of his
own remuneration.
ASX listing rules require the aggregate Non-executive Directors' remuneration be determined periodically by a general
meeting. The Non-executive Directors annual aggregate remuneration is $500,000 per annum as stipulated in the
Constitution.
Executive remuneration
The Consolidated Entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the Executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board based on individual and business unit performance, the overall performance of the Consolidated Entity and
comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the Consolidated Entity and provides additional value to the
executive.
The short-term incentives ('STI') are payable to Executives based upon the attainment of agreed corporate and individual
milestones and are reviewed and approved by the Board of Directors.
The long-term incentives ('LTI') include long service leave and share-based payments. Shares are awarded to executives
over a period of three years based on long-term incentive measures. These include increase in shareholders' value relative
to the entire market and the increase compared to the Consolidated Entity's direct competitors. The Board reviewed the long-
term equity-linked performance incentives specifically for executives during the year ended 2020.
Consolidated Entity's performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the Consolidated Entity. A portion of cash bonus
and incentive payments are dependent on achieving defined project related milestones, funding targets and other targets
deemed appropriate by the Board. The remaining portion of the cash bonus and incentive payments may be at the discretion
of the Board.
The Board is of the opinion that the continued success of the Consolidated Entity over the last few years can be attributed in
part to the adoption of performance based compensation and is satisfied that this improvement will continue to increase
shareholder wealth if maintained over the coming years.
Use of remuneration consultants
The Remuneration and Nomination Committee may, from time to time, receive advice from independent remuneration
consultants to ensure Non-executive Directors' fees and payments are appropriate and in line with the market. An agreed
set of protocols were put in place to ensure that the remuneration recommendations would be free from undue influence
from key management personnel. The Remuneration and Nomination Committee did not use the services of a remuneration
consultant during the year.
16
Montem Resources Limited
Directors' report
31 December 2021
Details of remuneration
Amounts of remuneration
Details of the remuneration of Key Management Personnel of the Consolidated Entity are set out in the following tables.
The Key Management Personnel of the Consolidated Entity consisted of the following Directors of Montem Resources
Limited:
●
●
●
●
●
Mark Lochtenberg, Chairman and Non-executive Director
Peter Doyle, Managing Director and CEO
Robert Tindall, Non-executive Director
Susie Henderson, Non-executive Director
William Souter, Non-executive Director
And the following persons:
●
●
Robert Bell, Chief Commercial Officer
Melanie Leydin, Chief Financial Officer and Company Secretary
Short-term
benefits
Cash
salary
and fees
$
Annual
leave (i)
$
Post-
employme
nt benefits
Long-term
benefits
Share-
based
payments
Super-
Long
service
Equity-
Bonus
$
annuation
$
leave
$
settled (v)
$
Total
$
91,117
60,000
45,000
45,000
-
-
-
-
-
-
-
-
8,883
-
-
-
-
-
-
-
(11,936)
12,733
4,775
4,775
88,064
72,733
49,775
49,775
507,019
11,669
-
68,256
-
(141,110)
445,834
299,717
129,890
1,177,743
(6,887)
-
4,782
-
-
-
10,262
-
87,401
-
-
-
(81,209)
-
221,883
129,890
(211,972) 1,057,954
31 December 2021
Non-Executive Directors:
Mark Lochtenberg
Robert Tindall
Susie Henderson
William Souter
Executive Directors:
Peter Doyle (ii)
Other Key Management
Personnel:
Robert Bell (iii)
Melanie Leydin (iv)
(i)
Annual leave amounts represent the movements in the carried forward accrued annual leave balances for executives
compared to the previous financial year.
(ii) Mr Peter Doyle's remuneration includes salaries amounting to CAD 476,342 and Company's contribution towards
employment insurance amounting to CAD 1,245. Post-employment benefits includes both current and prior year
contributions towards Registered Retirement Savings Plan (RRSP).
(iii) Mr Robert Bell's remuneration includes salaries amounting to CAD 281,073 and Company's contribution towards
employment insurance amounting to CAD 1,245. Mr Robert Bell became a part time employee during the year 2020.
Post-employment benefits includes both current and prior year contributions towards Registered Retirement Savings
Plan (RRSP).
(iv) The Company paid $129,890 for accounting and corporate secretarial services from an entity controlled by Ms Melanie
Leydin, during her term as Chief Financial Officer. All transactions were made on normal commercial terms and
conditions and at market rates.
(v) Equity settled share based payment represent the fair value of Share Options and Performance Rights (equity
instruments) issued to Key Management Personnel during the current and previous financial periods. These equity
instruments are recognised in the financial statements as per the requirements of AASB 2 Share-based Payment
(AASB2). Equity instruments which were lapsed, forfeiture or assessed not to be satisfying the conditions are reversed
according to AASB 2. Negative amounts represent amounts reversed in the financial statements in relation to equity
instruments lapsed, forfeiture or assessed not to be satisfying the conditions during the period.
17
Montem Resources Limited
Directors' report
31 December 2021
31 December 2020
Non-Executive Directors:
Mark Lochtenberg
Robert Tindall
Susie Henderson
William Souter
Robert Yeates (i)
Executive Directors:
Peter Doyle
Other Key Management
Personnel:
Robert Bell (ii)
Alan Ahlgren (iii)
Melanie Leydin (iv)
Short-term
benefits
Cash
salary
and fees
$
Annual
leave
$
Post-
employme
nt benefits
Long-term
benefits
Share-
based
payments
Super-
Long
service
Equity-
Bonus
$
annuation
$
leave
$
settled(v)
$
Total
$
46,285
60,000
34,375
34,375
14,743
-
-
-
-
-
-
-
-
-
-
4,397
-
-
-
-
-
-
-
-
-
41,866
90,761
44,130
44,130
(125,215)
92,548
150,761
78,505
78,505
(110,472)
501,430
27,481
48,297
3,043
-
337,027
917,278
282,559
106,968
13,350
1,094,085
22,973
-
-
50,454
-
-
-
48,297
3,043
-
-
10,483
-
-
-
-
164,128
-
-
472,703
106,968
13,350
596,827 1,800,146
Mr Robert Yeates, was a former director, who ceased employment with the Company in February 2020.
(i)
(ii) Mr Robert Bell became a part time employee during the year 2020.
(iii) Mr Alan Ahlgren resigned on 2 November 2020.
(iv) The Consolidated Entity paid $13,350 for accounting and corporate secretarial services from an entity controlled by Ms
Melanie Leydin, during her term as Chief Financial Officer. All transactions were made on normal commercial terms
and conditions and at market rates.
(v) Equity settled share based payment represent the fair value of Share Options and Performance Rights (equity
instruments) issued to Key Management Personnel during the current and previous financial periods. These equity
instruments are recognised in the financial statements as per the requirements of AASB 2 Share-based Payment
(AASB2). Equity instruments which were lapsed, forfeiture or assessed not to be satisfying the conditions are reversed
according to AASB 2. Negative amounts represent amounts reversed in the financial statements in relation to equity
instruments lapsed, forfeiture or assessed not to be satisfying the conditions during the period.
18
Montem Resources Limited
Directors' report
31 December 2021
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
Non-Executive Directors:
Mark Lochtenberg
Robert Tindall
Susie Henderson
William Souter
Robert Yeates
Executive Directors:
Peter Doyle
Other Key Management
Personnel:
Robert Bell
Alan Ahlgren
Melanie Leydin
31 December
2021
31 December
2020
31 December
2021
31 December
2020
31 December
2021
31 December
2020
114%
82%
90%
90%
-
77%
49%
58%
50%
13%
137%
63%
138%
-
100%
67%
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(14%)
18%
10%
10%
-
23%
51%
42%
50%
(113%)
6%
(37%)
31%
-
-
-
(38%)
-
-
33%
-
-
Service agreements
Remuneration and other terms of employment for key Management Personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Peter Doyle
Managing Director and CEO
1 June 2018
Ongoing
Annual salary of CAD 475,000 excluding statutory and other required deductions.
Mr Peter Doyle’s employment agreement is for an indefinite term, continuing until
terminated by either the Company or Mr Peter Doyle. Mr Peter Doyle may terminate
his employment agreement by giving at least 3 months’ notice in writing.
The Company may terminate the agreement at any time for cause (with no payment of
any additional remuneration save for any accrued and owing entitlements) or without
cause at any time upon the Company providing Mr Peter Doyle with payment of 12
months of total fixed remuneration.
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Robert Bell
Chief Commercial Officer
17 May 2018
Ongoing
Annual salary of CAD 350,000 less statutory and other required deductions.
Mr Robert Bell may terminate his employment agreement by giving at least 3 months’
notice in writing. The Company may terminate the agreement at any time for cause
(with no payment of any additional remuneration save for any accrued and owing
entitlements) or without cause at any time upon by providing Mr Robert Bell with
payment of 12 months of total fixed remuneration.
Mr Robert Bell became a part time employee during the year 2020.
19
Montem Resources Limited
Directors' report
31 December 2021
Name:
Title:
Agreement commenced:
Term of agreement:
Melanie Leydin
Company Secretary and Chief Financial Officer
2 November 2020
Ms Melanie Leydin’s services as the Chief Financial Officer for the Company are
provided under a consulting services agreement between the Company and Vistra
Australia (Melbourne) Pty Ltd (formerly Leydin Freyer Corp Pty Ltd). In consideration
for performing the services, the Company pays an hourly rate of $300 per hour.
Key Management Personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to Directors and other Key Management Personnel as part of compensation during the year
ended 31 December 2021.
20
Montem Resources Limited
Directors' report
31 December 2021
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and other Key
Management Personnel in this financial year or future reporting years are as follows:
Number of
options
Vesting date and
Fair value
per option
Exercise
Name
granted
Grant date
exercisable date
Expiry date
price
at grant date
12-Jan-23
31-Dec-23
31-Dec-24
12-Jan-23
31-Dec-23
31-Dec-24
12-Jan-23
31-Dec-23
31-Dec-24
12-Jan-23
31-Dec-23
31-Dec-24
12-Jan-23
31-Dec-23
31-Dec-24
12-Jan-23
31-Dec-23
31-Dec-24
23-Sep-22
23-Sep-22
23-Sep-22
23-Sep-22
23-Sep-22
23-Sep-22
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
28-May-26
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.2500
$0.2500
$0.2500
$0.2500
$0.2500
$0.2500
$0.3100
$0.3700
$0.5000
$0.3100
$0.3700
$0.5000
$0.3100
$0.3700
$0.5000
$0.3100
$0.3700
$0.5000
$0.3100
$0.3700
$0.5000
$0.361
$0.374
$0.381
$0.361
$0.374
$0.381
$0.361
$0.374
$0.381
$0.355
$0.368
$0.374
$0.355
$0.368
$0.374
$0.099
$0.106
$0.111
$0.129
$0.129
$0.133
$0.129
$0.129
$0.133
$0.045
$0.042
$0.038
$0.045
$0.042
$0.038
$0.045
$0.042
$0.038
$0.045
$0.042
$0.038
$0.045
$0.042
$0.038
Peter Doyle
Peter Doyle
Peter Doyle
Robert Tindall
Robert Tindall
Robert Tindall
Robert Bell
Robert Bell
Robert Bell
William Souter
William Souter
William Souter
Susie Henderson
Susie Henderson
Susie Henderson
Mark Lochtenberg
Mark Lochtenberg
Mark Lochtenberg
Peter Doyle
Peter Doyle
Peter Doyle
Robert Bell
Robert Bell
Robert Bell
Mark Lochtenberg
Mark Lochtenberg
Mark Lochtenberg
Peter Doyle
Peter Doyle
Peter Doyle
Robert Tindall
Robert Tindall
Robert Tindall
Susie Henderson
Susie Henderson
Susie Henderson
William Souter
William Souter
William Souter
233,463 12-Jan-18
233,463 12-Jan-18
233,463 12-Jan-18
155,642 12-Jan-18
155,642 12-Jan-18
155,642 12-Jan-18
175,097 12-Jan-18
175,097 12-Jan-18
175,097 12-Jan-18
58,366 06-Apr-18
58,366 06-Apr-18
58,365 06-Apr-18
58,366 06-Apr-18
58,366 06-Apr-18
58,365 06-Apr-18
58,366 08-Jul-19
58,366 08-Jul-19
58,365 08-Jul-19
375,000 24-Sep-19
125,000 24-Sep-19
187,500 24-Sep-19
150,000 24-Sep-19
75,000 24-Sep-19
87,500 24-Sep-19
58,366 28-May-21
58,366 28-May-21
58,365 28-May-21
233,463 28-May-21
233,463 28-May-21
233,463 28-May-21
155,642 28-May-21
155,642 28-May-21
155,642 28-May-21
58,366 28-May-21
58,366 28-May-21
58,365 28-May-21
58,366 28-May-21
58,366 28-May-21
58,365 28-May-21
Options granted carry no dividend or voting rights.
12-Jan-18
01-Jan-19
01-Jan-20
12-Jan-18
01-Jan-19
01-Jan-20
12-Jan-18
01-Jan-19
01-Jan-20
06-Apr-18
01-Jan-19
01-Jan-20
06-Apr-18
01-Jan-19
01-Jan-20
08-Jul-19
01-Jan-20
01-Jan-21
01-Apr-20
01-Apr-20
30-Jun-20
01-Apr-20
01-Apr-20
30-Jun-20
28-May-21
28-May-22
28-May-23
28-May-21
28-May-22
28-May-23
28-May-21
28-May-22
28-May-23
28-May-21
28-May-22
28-May-23
28-May-21
28-May-22
28-May-23
21
Montem Resources Limited
Directors' report
31 December 2021
The number of options over ordinary shares granted to and vested by Directors and other Key Management Personnel as
part of compensation during the year ended 31 December 2021 are set out below:
Number of Number of Number of Number of
options
granted
options
granted
options
vested
options
vested
during the during the during the during the
Name
Mark Lochtenberg
Peter Doyle
Robert Bell
Robert Tindall
Susie Henderson
William Souter
Robert Yeates*
year
31 December
2021
year
31 December
2020
year
31 December
2021
year
31 December
2020
175,097
700,389
-
466,926
175,097
175,097
-
-
-
-
-
-
-
-
116,731
233,463
-
155,642
58,366
58,366
-
58,365
920,963
487,597
155,642
58,365
58,365
233,463
*
Mr Robert Yeates, was a former director, who ceased employment with the Company in February 2020.
Values of options over ordinary shares granted, exercised and lapsed for Directors and other Key Management Personnel
as part of compensation during the year ended 31 December 2021 are set out below:
Value of
options
granted
Value of
options
Value of
options
lapsed
exercised
during the during the during the
Name
Peter Doyle
Robert Tindall
Robert Bell
Susie Henderson
William Souter
Mark Lochtenberg
year
$
year
$
year
$
19,100
12,733
-
4,775
4,775
4,775
-
-
-
-
-
-
(33,119)
-
(17,663)
-
-
-
22
Montem Resources Limited
Directors' report
31 December 2021
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of Directors and
other Key Management Personnel in this financial year or future reporting years are as follows:
Name
Mark Lochtenberg
Mark Lochtenberg
Mark Lochtenberg
Peter Doyle
Peter Doyle
Peter Doyle
Peter Doyle
Robert Bell
Robert Bell
Robert Bell
Robert Bell
Robert Tindall
Robert Tindall
Robert Tindall
Susie Henderson
Susie Henderson
Susie Henderson
William Souter
William Souter
William Souter
Number of
rights
granted
Grant date
Vesting date and
exercisable date
Expiry date
Fair value
per right
at grant date
175,097 08-Jul-19
175,000 30-Jun-20
175,000 30-Jun-20
700,389 01-Jun-18
1,500,000 24-Sep-19
500,000 30-Jun-20
500,000 30-Jun-20
525,292 01-Jun-18
750,000 24-Sep-19
100,000 30-Jun-20
100,000 30-Jun-20
466,926 01-Jun-18
125,000 30-Jun-20
125,000 30-Jun-20
175,097 01-Jun-18
125,000 30-Jun-20
125,000 30-Jun-20
175,097 01-Jun-18
125,000 30-Jun-20
125,000 30-Jun-20
01-Jun-23
30-Jun-23
01-Jun-23
30-Sep-20
30-Jun-23
30-Jun-23
01-Jun-23
30-Sep-20
30-Jun-23
30-Jun-23
01-Jun-23
30-Sep-20
30-Jun-23
01-Jun-23
30-Sep-20
30-Jun-23
01-Jun-23
30-Sep-20
30-Jun-23
01-Jun-23
01-Jun-23
30-Jun-23
01-Jun-23
01-Jun-23
30-Jun-23
30-Jun-23
01-Jun-23
01-Jun-23
30-Jun-23
30-Jun-23
01-Jun-23
01-Jun-23
30-Jun-23
01-Jun-23
01-Jun-23
30-Jun-23
01-Jun-23
01-Jun-23
30-Jun-23
01-Jun-23
$0.250
$0.150
$0.150
$0.500
$0.250
$0.150
$0.150
$0.500
$0.250
$0.150
$0.150
$0.500
$0.150
$0.150
$0.500
$0.150
$0.150
$0.500
$0.150
$0.150
Performance rights granted carry no dividend or voting rights.
The number of performance rights over ordinary shares granted to and vested by Directors and other Key Management
Personnel as part of compensation during the year ended 31 December 2020 are set out below:
Number of Number of Number of Number of
rights
granted
rights
granted
rights
vested
rights
vested
during the during the during the during the
Name
Mark Lochtenberg
Peter Doyle
Robert Bell
Robert Tindall
Susie Henderson
William Souter
Robert Yeates*
year
31 December
2021
year
31 December
2020
year
31 December
2021
year
31 December
2020
-
-
-
-
-
-
-
350,000
1,000,000
200,000
250,000
250,000
250,000
-
-
-
-
-
-
-
-
-
700,389
525,292
466,926
175,097
175,097
245,002
23
Montem Resources Limited
Directors' report
31 December 2021
Additional disclosures relating to Key Management Personnel
Shareholding
The number of shares in the Company held during the financial year by each Director and other members of Key
Management Personnel of the Consolidated Entity, including their personally related parties, is set out below:
Ordinary shares
Mark Lochtenberg
Peter Doyle
Robert Tindall
Susie Henderson
William Souter
Balance at
the start of
the year
Additions
Disposals
Other
8,782,154
3,569,728
13,936,864
368,431
341,763
26,998,940
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
the end of
the year
8,782,154
-
-
3,569,728
- 13,936,864
368,431
-
-
341,763
- 26,998,940
Option holding
The number of options over ordinary shares in the Company held during the financial year by each Director and other
members of Key Management Personnel of the Consolidated Entity, including their personally related parties, is set out
below:
Options over ordinary shares
Peter Doyle
Robert Tindall
Robert Bell
Susie Henderson
William Souter
Mark Lochtenberg
Balance at
the start of
the year
Granted
Exercised
Forfeited
Balance at
the end of
the year
1,762,889
466,926
1,037,791
175,097
175,097
175,097
3,792,897
700,389
466,926
-
175,097
175,097
175,097
1,692,606
-
-
-
-
-
-
-
(375,000)
-
(200,000)
-
-
-
(575,000)
2,088,278
933,852
837,791
350,194
350,194
350,194
4,910,503
Performance rights holding
The number of performance rights over ordinary shares in the Company held during the financial year by each Director and
other members of Key Management Personnel of the Consolidated Entity, including their personally related parties, is set
out below:
Balance at
the start of
the year
Granted
Vested
Forfeited
Performance rights over ordinary shares
Peter Doyle
Robert Tindall
Robert Bell
William Souter
Susie Henderson
Mark Lochtenberg
3,200,389
716,926
1,475,292
425,097
425,097
525,097
6,767,898
-
-
-
-
-
-
-
-
-
-
-
-
-
-
This concludes the remuneration report, which has been audited.
Balance at
the end of
the year
-
-
-
-
-
-
-
3,200,389
716,926
1,475,292
425,097
425,097
525,097
6,767,898
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in Note 19 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
24
Montem Resources Limited
Directors' report
31 December 2021
The Directors are of the opinion that the services as disclosed in Note 19 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-
making capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards.
●
Officers of the Company who are former partners of William Buck
There are no officers of the Company who are former partners of William Buck.
25
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE MEMBERS OF MONTEM RESOURCES LIMITED
I declare that, to the best of my knowledge and belief during the year ended 31 December
2021 there have been:
— no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the
audit.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
N. S. Benbow
Director
Dated this 29th March 2022
Montem Resources Limited
Statement of profit or loss and other comprehensive income
For the year ended 31 December 2021
Other income
Other income
Expenses
Employee benefits expense
Professional fees
Marketing and business development
Corporate expenses
Impairment of exploration and evaluation assets
Depreciation charges
Financing costs
Loss before income tax expense
Income tax expense
Consolidated
Note
31 December
2021
$
31 December
2020
$
159,191
-
5
5
5
5
5
(727,453)
(476,447)
(420,612)
(2,122,475)
(10,416,991)
(42,719)
(8,133)
(1,633,181)
(203,598)
(114,493)
(1,044,682)
-
(37,796)
(377,330)
(14,055,639)
(3,411,080)
-
-
Loss after income tax expense for the year attributable to the owners of
Montem Resources Limited
(14,055,639)
(3,411,080)
Other comprehensive income / (loss)
Items that may be reclassified subsequently to profit or loss net of tax
Foreign currency translation
Other comprehensive income / (loss) for the year, net of tax
Total comprehensive loss for the year attributable to the owners of Montem
Resources Limited
1,503,808
(1,294,358)
1,503,808
(1,294,358)
(12,551,831)
(4,705,438)
Cents
Cents
Basic earnings per share
Diluted earnings per share
24
24
(6.10)
(6.10)
(2.24)
(2.24)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
27
Montem Resources Limited
Statement of financial position
As at 31 December 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Deposits and advances
Prepayments
Total current assets
Non-current assets
Receivables
Plant and equipment
Right-of-use assets
Exploration and evaluation
Non-current deposits
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Lease liability
Employee benefits
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
31 December
2021
$
31 December
2020
$
6
7
3,803,727
65,559
8,567
-
3,877,853
3,434,480
104,946
33,117
32,059
3,604,602
8
9
10
11
12
12
-
720,371
134,774
5,103
707,730
208,576
13,680,104 19,561,890
350,831
14,726,495 20,834,130
191,246
18,604,348 24,438,732
412,783
43,455
70,772
152,964
679,974
845,348
-
116,144
191,192
1,152,684
-
72,001
72,001
40,671
109,017
149,688
751,975
1,302,372
17,852,373 23,136,360
13
45,054,400 37,313,701
2,748,777
(16,926,118)
3,779,729
(30,981,756)
17,852,373 23,136,360
The above statement of financial position should be read in conjunction with the accompanying notes
28
Montem Resources Limited
Statement of changes in equity
For the year ended 31 December 2021
Consolidated
Foreign
currency
translation
reserve
$
Share based
payments
reserve
$
Issued
capital
$
Accumulated
losses
$
Total equity
$
Balance at 1 January 2020
22,430,473
472,385
3,213,449
(13,952,061) 12,164,246
Loss after income tax expense for the year
Other comprehensive loss for the year, net of
tax
-
-
-
-
(3,411,080)
(3,411,080)
(1,294,358)
-
-
(1,294,358)
Total comprehensive loss for the year
-
(1,294,358)
-
(3,411,080)
(4,705,438)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
(note 13)
Share-based payments (note 25)
Share options and rights lapsed
14,883,228
-
-
-
-
-
-
794,324
(437,023)
-
-
437,023
14,883,228
794,324
-
Balance at 31 December 2020
37,313,701
(821,973)
3,570,750
(16,926,118) 23,136,360
Consolidated
Foreign
currency
translation
reserve
$
Share based
payments
reserve
$
Issued
capital
$
Accumulated
losses
$
Total equity
$
Balance at 1 January 2021
37,313,701
(821,973)
3,570,750
(16,926,118) 23,136,360
Loss after income tax expense for the year
Other comprehensive income for the year, net
of tax
-
-
-
-
(14,055,639)
(14,055,639)
1,503,808
-
-
1,503,808
Total comprehensive income / (loss) for the
year
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
(note 13)
Share-based payments (note 25)
Share options and rights lapsed (note 25)
-
1,503,808
-
(14,055,639)
(12,551,831)
7,740,699
-
-
-
-
-
-
47,704
(520,559)
-
-
-
7,740,699
47,704
(520,559)
Balance at 31 December 2021
45,054,400
681,835
3,097,895
(30,981,757) 17,852,373
The above statement of changes in equity should be read in conjunction with the accompanying notes
29
Montem Resources Limited
Statement of cash flows
For the year ended 31 December 2021
Cash flows from operating activities
Payments to suppliers and employees
Payment for initial set-up and consulting work TM-REX
Interest and other finance costs paid
Consolidated
Note
31 December
2021
$
31 December
2020
$
(2,969,325)
(305,904)
(1,709,927)
-
(3,275,229)
(8,133)
(1,709,927)
(13,861)
Net cash used in operating activities
23
(3,283,362)
(1,723,788)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Payments for security deposits
Payment for promissory note facility agreement
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Proceeds from borrowings
Repayment of lease liabilities
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
7
13
(16,033)
(3,357,428)
(302,967)
(409,724)
132,225
(41,701)
(6,004,568)
30,757
-
-
(3,953,927)
(6,015,512)
8,203,000
(457,821)
-
(137,198)
9,918,713
(689,581)
901,907
(101,300)
7,607,981 10,029,739
370,692
3,434,480
(1,445)
2,290,439
1,430,751
(286,710)
Cash and cash equivalents at the end of the financial year
6
3,803,727
3,434,480
The above statement of cash flows should be read in conjunction with the accompanying notes
30
Montem Resources Limited
Notes to the financial statements
31 December 2021
1. General information
The financial statements cover Montem Resources Limited as a Consolidated Entity consisting of Montem Resources Limited
and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars,
which is Montem Resources Limited's functional and presentation currency.
A description of the nature of the Consolidated Entity's operations and its principal activities are included in the Directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 23 March 2022. The
Directors have the power to amend and reissue the financial statements.
2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these
Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the
Consolidated Entity.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities
and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Consolidated Entity made a loss after tax of $14,055,639 during the year ended 31 December 2021 and had net
operating cash outflows of $3,283,362. As at 31 December 2021, the cash balance was $3,803,727 and net working capital
surplus was $3,197,879.
On 26 February 2021, the Company issued 30,394,021 ordinary shares at $0.17 per share, raising $5,166,984 (before
transaction costs) by way of share placement to sophisticated and professional investors.
On 29 March 2021, the Company issued 1,176,475 ordinary shares at $0.17 per share, raising $200,00 (before transaction
costs) by way of share placement to sophisticated and professional investors.
On 24 December 2021, the Company issued 55,608,150 ordinary shares at $0.051 per share, raising $2,836,016 (before
transaction costs) by way of share placement to sophisticated and professional investors.
In considering the ability of the Consolidated Entity to continue as a going concern the Directors considered the following
matters:
● The Consolidated Entity has the ability to raise additional working capital through the issue of equity, as needed;
● The Consolidated Entity has a successful history in raising funds and is well supported by its major shareholders;
● If required, the Consolidated Entity has the ability to undertake either the full or partial sale of its existing tenement portfolio,
enter into joint venture arrangements of its existing tenement portfolio or obtain approval for the deferral of the current work
programs.
The Directors will continue to monitor the ongoing funding requirements of the Consolidated Entity. As a consequence of the
above, the directors believe that, notwithstanding the Consolidated Entity's operating results for the year, the Consolidated
Entity will be able to continue as a going concern and therefore, these financial statements do not include any adjustments
relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification of liabilities
that might be necessary should the Consolidated Entity not continue as a going concern.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
31
Montem Resources Limited
Notes to the financial statements
31 December 2021
2. Significant accounting policies (continued)
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Consolidated Entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in Note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Consolidated Entity only.
Supplementary information about the parent entity is disclosed in Note 20.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Montem Resources Limited
('Company' or 'parent entity') as at 31 December 2021 and the results of all subsidiaries for the year then ended. The
Company and its subsidiaries together are referred to in these financial statements as the 'Consolidated Entity'.
Subsidiaries are all those entities over which the Consolidated Entity has control. The Consolidated Entity controls an entity
when the Consolidated Entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the Consolidated Entity. They are de-consolidated from the date that control
ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated Entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the Consolidated Entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the Consolidated Entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
Consolidated Entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Montem Resources Limited's presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
32
Montem Resources Limited
Notes to the financial statements
31 December 2021
2. Significant accounting policies (continued)
Interest
Interest income is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Consolidated Entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Consolidated Entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at
either amortised cost or fair value depending on their classification. Classification is determined based on both the business
model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an
accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
Consolidated Entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at amortised cost
A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business
model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial
asset represent contractual cash flows that are solely payments of principal and interest.
Impairment of financial assets
The Consolidated Entity recognises a loss allowance for expected credit losses on financial assets which are either measured
at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon
the Consolidated Entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk
has increased significantly since initial recognition, based on reasonable and supportable information that is available, without
undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a
default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is
determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit
losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
33
Montem Resources Limited
Notes to the financial statements
31 December 2021
2. Significant accounting policies (continued)
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is
recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss
allowance reduces the asset's carrying value with a corresponding expense through profit or loss.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Operating segments
The sole segment of the Consolidated Entity is coal mining in Canada.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of the consolidated entity, 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
Issued options and performance rights have not been included in the weighted average number of ordinary shares for the
purposes of calculating diluted earnings per share as they do not meet the requirements for inclusion in AASB 133 “Earnings
per Share”. The options and performance rights are non-dilutive as the Consolidated Entity has generated a loss for the year.
3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the Consolidated Entity based on known information. This consideration extends to the nature of the services received,
supply chain, staffing and geographic regions in which the Consolidated Entity operates. There does not currently appear to
be either any significant impact upon the financial statements or any significant uncertainties with respect to events or
conditions which may impact the Consolidated Entity unfavourably as at the reporting date or subsequently as a result of the
Coronavirus (COVID-19) pandemic.
34
Montem Resources Limited
Notes to the financial statements
31 December 2021
3. Critical accounting judgements, estimates and assumptions (continued)
Share-based payment transactions
The Consolidated Entity 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 by using either the Binomial or Black-
Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts
of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Any service or non-market performance condition is not reflected in the grant-date fair value of the share based payment.
Among others, non-market performance conditions includes factors such as project milestones, production and quality
targets. An estimate is made of the number of equity instruments for which the service and non-market performance
conditions are expected to be satisfied. Subsequent to initial recognition and measurement, the estimate of the number of
equity instruments for which the service and non-market performance conditions are expected to be satisfied is revised
during the vesting period.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the
expected credit loss, timing of cash flows and enforceability of the agreement terms.
Impairment of non-financial assets
The Consolidated Entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible
assets at each reporting date by evaluating conditions specific to the Consolidated Entity and to the particular asset that may
lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value
less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.
Consolidated Entity's exploration assets are integral part of the business and fair value less costs of disposal for these assets
may determined based on the market capitalisation of the Consolidated Entity. Please refer to note 10 for further information
on impairment assessment of exploration assets.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and carry forward losses, only if the Consolidated
Entity considers it is probable that future taxable amounts will be available to utilise those temporary differences.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Consolidated Entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
4. Operating segments
Identification of reportable operating segments
AASB 8 Operating Segments requires operating segments to be identified on the basis of internal reports about the
components of the Consolidated Entity that are regularly reviewed by the chief decision maker in order to allocate resources
to the segment and to assess its performance.
The Consolidated Entity is a steelmaking coal and renewable energy development company that owns and leases coal
tenements and freehold land in the Canadian provinces of Alberta and British Columbia. During the year ending 31 December
2021 the principal continuing activities of the Company were the exploration and development of its two primary steelmaking
coal projects, the Tent Mountain Mine Redevelopment Project and the Chinook Project, while in parallel evaluating the Tent
Mountain Renewable Energy Complex (TM-REX).
Therefore, currently the Consolidated Entity's activities are classified as one operating segment.
35
Montem Resources Limited
Notes to the financial statements
31 December 2021
4. Operating segments (continued)
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
5. Expenses
Loss before income tax includes the following specific expenses:
Depreciation
Plant and equipment
Office lease right-of-use assets
Total depreciation
Impairment
Exploration and evaluation (Note 10)
Finance costs
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid on lease liabilities
Finance costs expensed
Leases
Short-term lease payments
Superannuation expense
Defined contribution superannuation expense
Consolidated
31 December
2021
$
31 December
2020
$
7,532
35,187
2,994
34,803
42,719
37,797
10,416,991
-
-
8,133
367,456
9,874
8,133
377,330
-
15,070
13,511
2,169
Share-based payments expense
Share-based payments expense net of amounts reversed during period (Note 25)
(263,937)
621,897
Write-off of assets and allowances for credit losses
Allowance for promissory note facility agreement (Note 7)
Write-off of deposits on rail loadout property purchase option agreement (Note 18)
409,724
534,028
-
-
6. Current assets - cash and cash equivalents
Cash at bank
Consolidated
31 December
2021
$
31 December
2020
$
3,803,727
3,434,480
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
36
Montem Resources Limited
Notes to the financial statements
31 December 2021
7. Current assets - deposits and advances
Deposits and advances
Promissory note facility agreement
Allowance for promissory note facility agreement
Consolidated
31 December
2021
$
31 December
2020
$
8,567
409,724
(409,724)
33,117
-
-
8,567
33,117
The Consolidated Entity entered into a promissory note facility agreement with a non-related third party during the year. This
transaction is in dispute and the Consolidated Entity commencing legal proceedings to recover the amount. Conservatively,
a full allowance for expected credit loss is recognised at 31 December 2021.
Accounting policy for deposits and advances
Deposits and advances are recognised at amortised cost, less any allowance for expected credit losses.
8. Non-current assets - plant and equipment
Consolidated
31 December
2021
$
31 December
2020
$
519,094
(25,764)
493,330
22,569
(19,435)
3,134
46,225
(13,003)
33,222
162,425
(20,303)
142,122
64,144
(15,581)
48,563
485,842
(11,967)
473,875
21,124
(11,149)
9,975
27,660
(4,956)
22,704
152,021
(3,801)
148,220
60,035
(7,079)
52,956
720,371
707,730
Buildings - at cost
Less: Accumulated depreciation
Motor vehicles
Less: Accumulated depreciation
Computer equipment
Less: Accumulated depreciation
Roads and bridges
Less: Accumulated depreciation
Furniture and fixtures
Less: Accumulated depreciation
37
Montem Resources Limited
Notes to the financial statements
31 December 2021
8. Non-current assets - plant and equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 January 2020
Additions
Exchange differences
Depreciation expense
Balance at 31 December 2020
Additions
Exchange differences
Depreciation expense
Building
$
Motor
vehicles
$
Computer
equipment
$
Roads and
bridges
$
Furniture
and fixtures
$
Total
$
492,428
29,114
(35,701)
(11,967)
473,874
-
32,137
(12,682)
17,714
-
(1,284)
(6,454)
9,976
-
511
(7,352)
14,891
11,791
(1,350)
(2,628)
22,704
16,292
1,758
(7,532)
163,903
-
(11,882)
(3,801)
148,220
-
9,775
(15,873)
-
63,869
(3,834)
(7,079)
52,956
-
3,442
(7,835)
688,936
104,774
(54,051)
(31,929)
707,730
16,292
47,623
(51,274)
Balance at 31 December 2021
493,329
3,135
33,222
142,122
48,563
720,371
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line or declining balance basis to write off the net cost of each item of property, plant
and equipment (excluding land) over their expected useful lives as follows:
Plant and equipment
Office furniture and fixtures
Buildings
Roads and bridges
3-7 years (Straight line basis)
20% (Declining balance basis)
40 years (Straight line basis)
10 years (Straight line basis)
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
Consolidated Entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
9. Non-current assets - right-of-use assets
Buildings - right-of-use
Less: Accumulated depreciation
Motor vehicles - right-of-use
Less: Accumulated depreciation
Office equipment - right-of-use
Less: Accumulated depreciation
38
Consolidated
31 December
2021
$
31 December
2020
$
180,035
(147,029)
33,006
108,952
(21,185)
87,767
23,503
(9,502)
14,001
168,503
(103,910)
64,593
227,892
(101,780)
126,112
21,997
(4,126)
17,871
134,774
208,576
Montem Resources Limited
Notes to the financial statements
31 December 2021
9. Non-current assets - right-of-use assets (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 January 2020
Additions
Exchange differences
Depreciation expense
Balance at 31 December 2020
Additions
Disposals
Exchange differences
Depreciation expense
Buildings
$
Motor
vehicles
$
Office
equipment
$
105,976
-
(7,682)
(33,701)
64,593
-
-
3,600
(35,187)
133,669
73,988
(9,691)
(71,854)
126,112
106,471
(52,361)
7,563
(100,018)
-
21,997
-
(4,126)
17,871
-
-
1,107
(4,977)
Total
$
239,645
95,985
(17,373)
(109,681)
208,576
106,471
(52,361)
12,270
(140,182)
Balance at 31 December 2021
33,006
87,767
14,001
134,774
Accounting policy for right-of-use assets
A right-of-use asset is a leased asset that is recognised at the commencement date of a lease and is initially measured at
the present value of the unavoidable future lease payments to be made over the lease term, less any lease incentives
receivable.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the right-
of-use asset and lease liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the group, the lessee’s incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset
in a similar economic environment with similar terms, security and conditions.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the Consolidated Entity expects to obtain ownership of the leased asset at
the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The Consolidated Entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
10. Non-current assets - exploration and evaluation
Exploration and evaluation Chinook - at cost
Exploration and evaluation Tent Mountain - at cost
39
Consolidated
31 December
2021
$
31 December
2020
$
2,793,074
2,411,092
10,887,030 17,150,798
13,680,104 19,561,890
Montem Resources Limited
Notes to the financial statements
31 December 2021
10. Non-current assets - exploration and evaluation (continued)
The Consolidated Entity has a portfolio of hard coking coal (steelmaking coal) projects in western Canada’s Crowsnest
Pass region including the Tent Mountain Mine Re-start Project (“Tent Mountain”), the Chinook Project (“Chinook”), and the
greenfield exploration Isola, 4-Stack and Oldman projects.
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 January 2020
Expenditure during the year
Chinook expenses reclassification*
Exchange differences
Balance at 31 December 2020
Expenditure during the year
Exchange differences
Impairment of assets
Share-based payment arrangements forfeited during period (note 25)
Chinook
$
Tent
Mountain
$
Total
$
1,096,250 13,459,752 14,556,002
6,061,132
6,061,132
-
(1,394,315)
(1,055,244)
(975,771)
-
1,394,315
(79,473)
2,411,092 17,150,798 19,561,890
3,332,496
3,074,374
1,411,627
1,287,767
(10,416,991)
(10,416,991)
(208,918)
(208,918)
258,122
123,860
-
-
Balance at 31 December 2021
2,793,074 10,887,030 13,680,104
*
During the period, the Consolidated Entity reclassified Chinook exploration expenses of $1,394,315, which was
previously reported under Tent Mountain.
The Consolidated Entity announced that the Government of Canada announced on 17 June 2021 that the Joint Review
Panel (JRP), in its capacity as Alberta Energy Regulator, denied the application for the Grassy Mountain Coal Project owned
by Benga Mining Limited (subsidiary of Hancock Prospecting Pty Ltd). The Grassy Mountain Coal Project is located in close
proximity to the Consolidated Entity’s assets in Alberta and as such its developmental process may be relevant to the
Consolidated Entity’s own operational considerations. The Panel concluded that “the project is likely to result in significant
adverse environmental effects on surface water quality, Westslope cutthroat trout and their habitat, Whitebark pine, rough
fescue grasslands and vegetation species and community biodiversity; and, significant adverse effects on physical and
cultural heritage of some First Nations.” On 19 July 2021, Benga Mining announced it has commenced a legal appeal process
following the decision of the JRP to deny issuing a permit for its Grassy Mountain Steelmaking Coal Project.
The Consolidated Entity considers a number of factors differentiate the Tent Mountain Project from the Grassy Mountain
Coal Project application and the stated reasons for its denial. Montem will continue to engage Provincial and Federal
regulators, Indigenous Peoples, local communities, and other engaged stakeholders at all stages of the application, process,
paying specific attention to concerns raised by the panel in relation to the Grassy Mountain Project.
On 29 June 2021, the Consolidated Entity received notification that Canada’s Federal Environment and Climate Change
Minister had designated the Tent Mountain Project to undergo a Federal Impact Assessment under subsection 9(1) of the
Impact Assessment Act. The Federal Impact Assessment is an effective process featuring set timelines but is likely to delay
permitting for the Project, which was scheduled to produce first coal in 2023. The Federal process is being initiated in Q3
2021 with submission of the Initial Project Description to the Impact Assessment Agency of Canada (IAAC). The terms of a
Federal Impact Assessment will be established by the IAAC planning process that can take up to 180 days to finalise.
The Consolidated Entity is confident based on environmental monitoring and studies completed to date, its engagement
activities with Indigenous Peoples and the rapidly advancing selenium treatment technologies that it can satisfy all these
concerns during the Federal Impact Assessment.
40
Montem Resources Limited
Notes to the financial statements
31 December 2021
10. Non-current assets - exploration and evaluation (continued)
Management have reviewed the carrying value of its Exploration and Evaluation asset portfolio at 31 December 2021 under
AASB 6 Exploration for and Evaluation of Mineral Resources and has conducted an impairment assessment in relation to
the Tent Mountain Project in light of Federal Impact Assessment and the subsequent capital raise completed in December
2021. Impairment is recognised if the carrying amount exceeds the recoverable amount. Recoverable amount was
determined using fair value less costs to disposal. Fair value is determined using the Level 1 input - quoted prices of
Montem's share price. Based on this is review, management have concluded that it is prudent to recognise impairment loss
of $10,416,991, equivalent to the difference between the market capitalisation and the net asset value of the Consolidated
Entity as at 31 December 2021. Impairment loss is in full recognised against the capitalised Tent Mountain Project costs at
31 December 2021. Impairment loss recognised at 31 December 2021 is sensitive to any changes to the Company's share
price. A 10% change to the share price would have an +/- impact of $1,478,000 to the impairment loss recognised at 31
December 2021.
As noted in the note 22 Events after the reporting period, the Consolidated Entity has reviewed the Coal Policy Committee
(“Committee”) reports and recommendations, and the accompanying Ministerial Order, following the Committee’s review of
the Alberta 1976 Coal Development Policy, as released by the government of Alberta on 4 March 2022. As a result of the
Committee’s recommendations, the Alberta Government has designated Montem’s Tent Mountain Mine an advanced coal
project. Alberta’s advanced coal projects are unaffected by the Ministerial Order’s additional exploration and development
restrictions implemented as a result of the Committee’s recommendations. The Consolidated Entity will continue to advance
the existing coal mine restart through the Federal and Provincial permitting processes.
The Consolidated Entity will continue to assess the Project viability based on the permitting approvals and outcome of the
Federal Impact Review.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditures in relation to separate areas of interest for which rights of tenure are current is
carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered
through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are
continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or
otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure
incurred thereon is written off in the year in which the decision is made.
11. Current liabilities - trade and other payables
Trade payables
Accrued expenses
Other payables
Consolidated
31 December
2021
$
31 December
2020
$
355,421
16,450
40,912
739,962
75,758
29,628
412,783
845,348
Refer to note 14 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
41
Montem Resources Limited
Notes to the financial statements
31 December 2021
12. Current liabilities - lease liability
The Consolidated Entity entered into lease agreements for office space, motor vehicles and office equipment. Rental
contracts are typically made for fixed periods of 12 to 36 months, but may have an extension option. This note provides
information for leases where the Consolidated Entity is a lessee.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor.
Leased assets may not be used as security for borrowing purposes.
The statement of financial position shows the following amounts relating to leases:
Lease liabilities
Current
Non-current
Consolidated
31 December
2021
$
31 December
2020
$
119,184
101,990
116,144
109,167
221,174
225,311
Incremental borrowing rates
Right-of-use assets and lease liabilities are determined based on an incremental borrowing rate. To determine the
incremental borrowing rate, the Consolidated Entity:
- where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect
changes in financing conditions since third party financing was received
- uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for the Consolidated Group, which
does not have recent third party financing, and
- makes adjustments specific to the lease example term, country, currency and security.
Accounting policy for lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on
an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset
is fully written down.
13. Equity - issued capital
Consolidated
31 December
2021
Shares
31 December
2020
Shares
31 December
2021
$
31 December
2020
$
Ordinary shares - fully paid
289,805,457 202,626,811 45,054,400 37,313,701
42
Montem Resources Limited
Notes to the financial statements
31 December 2021
13. Equity - issued capital (continued)
Movements in ordinary share capital
Details
Balance
Share issue
Conversion share
Share issue
Share issue costs
Balance
Share issue
Share issue
Share issue
Share issue costs
Balance
Date
Shares
Issue price
$
1 January 2020
12 May 2020
14 September 2020
14 September 2020
31 December 2020
26 February 2021
29 March 2021
24 December 2021
124,903,784
12,791,419
32,931,608
32,000,000
-
202,626,811
30,394,021
1,176,475
55,608,150
-
$0.1500
$0.1750
$0.2500
$0.0000
22,430,473
1,918,713
5,773,560
8,000,000
(809,045)
$0.1700
$0.1700
$0.0510
$0.0000
37,313,701
5,166,984
200,000
2,836,016
(462,301)
31 December 2021
289,805,457
45,054,400
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Capital risk management
The Consolidated Entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain capital structure, the Consolidated Entity may issue new shares or sell assets to reduce debt.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The Consolidated Entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide long term returns for shareholders and benefits for other stakeholders and to maintain an optimum capital
structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
The Consolidated Entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current Company's share price at the time of the investment. The Consolidated Entity is not
actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in
order to maximise synergies.
Accounting policy for 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.
43
Montem Resources Limited
Notes to the financial statements
31 December 2021
14. Financial instruments
Financial risk management objectives
The Consolidated Entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The Consolidated Entity's overall financial risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the Consolidated Entity. The Consolidated Entity uses different methods to measure different types of
financial risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange
and other price risks, ageing analysis for credit risk.
Financial risk management is carried out by senior finance executives ('finance') under policies approved by the Board of
Directors ('the Board'). These policies include identification and analysis of the financial risk exposure of the Consolidated
Entity and appropriate procedures, controls and risk limits. Finance identifies, evaluates and manage financial risks within
the Consolidated Entity. Finance reports to the Board on a monthly basis.
The Consolidated Entity's material financial instruments include cash and cash equivalents, its promissory note facility
agreement, trade and other payables and lease liabilities.
Market risk
Foreign currency risk
The Consolidated Entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
managed through cash flow forecasting.
The average exchange rates and reporting date exchange rates applied were as follows:
Average exchange rate
Reporting date exchange
rate
31 December
2021
31 December
2020
31 December
2021
31 December
2020
Australian dollars
Canadian dollars
0.92
0.95
0.92
0.98
The carrying amount of the Consolidated Entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
Assets
Liabilities
Consolidated
Canadian dollars - Cash at bank
Canadian dollars - Payable
Canadian dollars - trade & other payables
Canadian dollars - borrowings
31 December
2021
$
31 December
2020
$
31 December
2021
$
31 December
2020
$
304,534
-
-
-
933,586
-
-
-
-
-
416,321
43,455
-
84,427
843,743
40,671
304,534
933,586
459,776
968,841
As at 31 December 2021 no reasonable movement in the value of the Canadian dollar would have materially impacted the
value of financial instruments in the consolidated financial statements (2020: none).
Interest rate risk
The Consolidated Entity has limited interest rate risk and there are no significant interest-bearing assets or liabilities at the
reporting date (2020:Nil).
44
Montem Resources Limited
Notes to the financial statements
31 December 2021
14. Financial instruments (continued)
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Consolidated Entity. The Consolidated Entity obtains guarantees where appropriate to mitigate credit risk. The maximum
exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for
impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The
Consolidated Entity does not hold any collateral. For details of the Consolidated Entity's material credit risk exposure, refer
to note 7.
Liquidity risk
Vigilant liquidity risk management requires the Consolidated Entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Consolidated Entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the Consolidated Entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 31 December
2021
Non-derivatives
Non-interest bearing
Trade and other payables
Accrued expenses
Other payables
Other loans
Interest-bearing - variable
Lease liabilities
Total non-derivatives
Consolidated - 31 December
2020
Non-derivatives
Non-interest bearing
Trade and other payables
Accrued expenses
Other payables
Other loans
Interest-bearing - fixed rate
Lease liability
Total non-derivatives
Weighted
average
interest rate
1 year or
less
Between 1
and 2 years
Between 2
and 5 years
Remaining
contractual
maturities
Over 5 years
%
$
$
$
$
$
-
-
-
-
355,420
16,450
40,912
43,455
-
-
-
-
5.32%
119,184
575,421
101,990
101,990
-
-
-
-
-
-
-
-
-
-
-
-
355,420
16,450
40,912
43,455
221,174
677,411
Weighted
average
interest rate
1 year or
less
Between 1
and 2 years
Between 2
and 5 years
Remaining
contractual
maturities
Over 5 years
%
$
$
$
$
$
-
-
-
-
739,962
75,758
29,629
40,671
-
-
-
-
-
-
-
-
5.32%
125,451
1,011,471
91,843
91,843
14,307
14,307
-
-
-
-
-
-
739,962
75,758
29,629
40,671
231,601
1,117,621
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
45
Montem Resources Limited
Notes to the financial statements
31 December 2021
14. Financial instruments (continued)
Fair value of financial instruments
As at 31 December 2021 the fair values of all financial instruments approximated their carrying values.
15. Key management personnel disclosures
Directors
The following persons were Directors of Montem Resources Limited during the financial year:
Mark Lochtenberg
Peter Doyle
Rob Tindall
Susie Henderson
William Souter
Chairman and Non-executive Director
Managing Director and CEO
Non-executive Director
Non-executive Director
Non-executive Director
Other key management personnel
The following persons also had the authority and responsibility for planning, directing and controlling the major activities of
the Consolidated Entity, directly or indirectly, during the financial year:
Robert Bell
Melanie Leydin
Chief Commercial Officer
Company Secretary and Chief Financial Officer
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Consolidated
Entity is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments & arrangements forfeited during period
Consolidated
31 December
2021
$
31 December
2020
$
1,182,525
87,401
(211,972)
1,192,836
10,483
596,827
1,057,954
1,800,146
The Company paid $129,890 for accounting and corporate secretarial services (which is included within the short-term
benefits to KMP above) from an entity controlled by Ms Melanie Leydin, during her term as Chief Financial Officer. All
transactions were made on normal commercial terms and conditions and at market rates.
16. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by William Buck, the auditor of the
Company:
Audit services - William Buck
Audit or review of the financial statements
Other services - William Buck
Preparation of the tax return
46
Consolidated
31 December
2021
$
31 December
2020
$
32,450
28,450
7,500
7,500
39,950
35,950
Montem Resources Limited
Notes to the financial statements
31 December 2021
17. Contingent liabilities / assets
The Consolidated Entity had no contingent liabilities / assets as at 31 December 2021 and 2020.
18. Commitments
The Consolidated Entity had no commitments at 31 December 2021 (2020: Nil).
19. Related party transactions
Parent entity
Montem Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 21.
Key management personnel
Disclosures relating to key management personnel are set out in Note 15 and the remuneration report included in the
Directors' report.
Transactions with related parties
The Consolidated Entity paid $72,897 (2020: Nil) for consulting services to GHD Limited (GHD Advisory), an entity associated
with Ms Susie Henderson, Non-executive Director. Ms Susie Henderson is employed by GHD Advisory in capacity of
President GHD Advisory – Americas region. All transactions were made on normal commercial terms and conditions and at
market rates.
There were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Consolidated
31 December
2021
$
31 December
2020
$
Current payables:
Trade payables to Key Management Personnel in relation to short-term employee benefits
102,754
89,054
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
20. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
47
Parent
31 December
2021
$
31 December
2020
$
(23,676,985)
(2,017,955)
(23,676,985)
(2,017,955)
Montem Resources Limited
Notes to the financial statements
31 December 2021
20. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
Parent
31 December
2021
$
31 December
2020
$
3,499,222
2,524,282
17,944,223 34,421,139
116,638
184,414
116,638
184,414
45,077,559 37,336,860
3,570,750
(6,670,885)
3,097,895
(30,347,869)
17,827,585 34,236,725
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 31 December 2021 and 2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 31 December 2021 and 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 31 December 2021 and 2020.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Consolidated Entity, as disclosed in note 2,
except for the following:
●
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
21. Interests in subsidiaries
The Montem Resources Group includes the following entities:
Name
Montem Resources Corp.
Montem Resources Alberta Operations Ltd
Principal place of business /
Country of incorporation
Vancouver, British Columbia,
Canada
Edmonton, Alberta, Canada
Ownership interest
31 December
2021
%
31 December
2020
%
100.00%
100.00%
100.00%
100.00%
48
Montem Resources Limited
Notes to the financial statements
31 December 2021
22. Events after the reporting period
On 7 March 2022, the Company announced that it has reviewed the Coal Policy Committee (“Committee”) reports and
recommendations, and the accompanying Ministerial Order, following the Committee’s review of the Alberta 1976 Coal
Development Policy, as released by the government of Alberta on 4 March 2022. As a result of the Committee’s
recommendations, the Alberta Government has designated Montem’s Tent Mountain Mine an advanced coal project.
Alberta’s advanced coal projects are unaffected by the Ministerial Order’s additional exploration and development restrictions
implemented as a result of the Committee’s recommendations. The Company confirmed that it will continue to advance Tent
Mountain through the Federal and Provincial permitting processes.
The Chinook Project, and other development assets in Alberta do not qualify as advanced assets, and hence all activities on
the Chinook Project and other Alberta coal assets is suspended pending additional information from the Alberta Government.
As the Company owns significant steelmaking coal resources as Freehold Mineral Rights in Alberta the Company continues
to investigate alternate means of accessing these assets.
No other matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly
affect the Consolidated Entity's operations, the results of those operations, or the Consolidated Entity's state of affairs in
future financial years.
23. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Share-based payments
Depreciation
Finance charges
Deposits written-off
Gain on disposal
Impairment of exploration and evaluation assets
Change in operating assets and liabilities:
Decrease/(increase) in prepayments
Increase in accounts receivable
Increase in deposits and advances
Increase/(decrease) in trade and other payables
Increase/(decrease) in employee benefits
Consolidated
31 December
2021
$
31 December
2020
$
(14,055,639)
(3,411,080)
(263,937)
42,719
-
943,754
(156,481)
10,416,991
37,160
384
26,205
(224,373)
(50,145)
621,897
37,796
510,988
245,043
-
-
(6,201)
1,650
(15,998)
221,465
70,652
Net cash used in operating activities
(3,283,362)
(1,723,788)
24. Earnings per share
Loss after income tax attributable to the owners of Montem Resources Limited
(14,055,639)
(3,411,080)
Consolidated
31 December
2021
$
31 December
2020
$
49
Montem Resources Limited
Notes to the financial statements
31 December 2021
24. Earnings per share (continued)
Weighted average number of ordinary shares used in calculating basic earnings per share
230,320,152 152,207,102
Weighted average number of ordinary shares used in calculating diluted earnings per share 230,320,152 152,207,102
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(6.10)
(6.10)
(2.24)
(2.24)
For financial period ended 31 December 2021 and 31 December 2020 outstanding options and performance rights are anti-
dilutive and are therefore excluded from the calculation of diluted earnings per share.
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Montem 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, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
The rights to options held by option holders have not been included in the weighted average number of ordinary shares for
the purposes of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 “Earnings per Share”.
The rights to options are non-dilutive as the combined entity has generated a loss for the year.
25. Share-based payments
(a) Equity issues to settle supplier liabilities
From time to time the Company may settle liabilities payable to external suppliers by way of an issue of ordinary shares in
the Company, or by the issue of options over ordinary shares in the Company.
Issues of options to settle supplier liabilities
On 12 January 2018, the Company issued 1,086,667 options over ordinary shares to suppliers as settlement of liabilities.
These options, which vested immediately, have an exercise price of 62.5 cents and an expiry date of 12 January 2023.
(b) Share issues to employees
From time to time the Company may issue of ordinary shares in the Company to directors or employees of the Company as
remuneration in recognition of past performance or other services provided to the Consolidated Entity.
Employee incentive plan - options and performance rights
The Company has established an Employee Incentive Plan, whereby the Company may, at the discretion of the Plan
Committee, grant options over ordinary shares in the Company or performance rights over ordinary shares in the Company
to eligible employees and any director of the Company.
50
Montem Resources Limited
Notes to the financial statements
31 December 2021
25. Share-based payments (continued)
●
On 28 May 2021, the Company has issued 1,692,606 Option over ordinary shares to the directors of the Company
under the terms of the Montem Employee Incentive Plan. These options, which were issued in three tranches with
varying vesting dates as follows:
●
●
●
●
●
●
- 564,203 Options with exercise price of $0.31, which were vested on issue and expire on 28 May 2026
- 564,203 Options with exercise price of $0.37, which will vest on 28 May 2022 and expire on 28 May 2026
- 564,203 Options with exercise price of $0.50, which will vest on 28 May 2023 and expire on 28 May 2026
In June 2020, the Company issued 3,000,000 performance rights under the terms of the Company’s Employee Incentive
Plan to the Managing Director and senior executives for no consideration with fair values $0.15 each, all with an expiry
date of 23 September 2022.The vesting condition is when the Company successfully mines and sells 100,000 tonnes
of coal from the Tent Mountain mine or any other Company project. The performance rights will expire on 1 June 2023.
In September 2019, the Company issued 3,000,000 performance rights under the terms of the Company’s Employee
Incentive Plan to the Managing Director and senior executives for no consideration with fair values from $0.11 to $0.13
each, all with an expiry date of 23 September 2022. The vesting condition is when the Company successfully mines
and sells 100,000 tonnes of coal from the Tent Mountain mine or any other Company project. The performance rights
will expire on 1 June 2023.
In September 2019, the Company issued 5,000,000 options to Directors and employees as remuneration under the
terms of the Company’s Employee Incentive Plan. These options were issued with key milestones to align shareholder’s
interests with varying vesting dates. Exercise prices for these options range from $0.25 to $0.50, all with an expiry date
of 23 September 2022.
In July 2019, the Company issued 175,097 options to a Director for no consideration with fair values of $0.10 to $0.11,
and each with expiry dates from 12 January 2023 to 31 December 2024. In addition, the Company also issued 175,097
performance rights with fair value of $0.25.
During the year ended 31 December 2018, the Company issued 3,000,000 options to Directors and employees under
the terms of the Montem Employee Incentive Plan. These options, which were issued in three tranches on 12 January
2018 (1,949,417 options), 31 January 2018 (700,389 options) and 6 April 2018 (350,194 options). These options were
issued with various service-based vesting dates and various expiry
dates. Exercise prices for these options range from 63 cents to $1.00. The vesting condition is when the Company
successfully mines and sells 100,000 tonnes of coal from the Tent Mountain mine or any other Company project. The
performance rights will expire on 1 June 2023.
On 1 June 2018, the Company issued 3,000,000 performance rights under the terms of the Company’s Employee
Incentive Plan to the Managing Director and senior executives. Each performance right will vest and convert to a fully
paid ordinary share in the Company, at no cost to the recipient, when the vesting condition is met. The vesting condition
is when the Company successfully mines and sells 100,000 tonnes of coal from the Tent Mountain mine or any other
Company project. The performance rights will expire on 1 June 2023.
51
Montem Resources Limited
Notes to the financial statements
31 December 2021
25. Share-based payments (continued)
Details of options and performance rights
Set out below are details of options granted as share-based payments:
31 December
2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Forfeited/
Exercised
other
Balance at
the end of
the year
12/01/2018
12/01/2018
12/01/2018
12/01/2018
31/01/2018
31/01/2018
31/01/2018
06/04/2018
06/04/2018
06/04/2018
08/07/2019
08/07/2019
08/07/2019
24/09/2019
24/09/2019
24/09/2019
28/05/2021
28/05/2021
28/05/2021
12/01/2023
12/01/2023
31/12/2023
31/12/2024
12/01/2023
12/01/2023
12/01/2023
12/01/2023
31/12/2023
31/12/2024
12/01/2023
31/12/2023
31/12/2024
23/09/2022
23/09/2022
23/09/2022
28/05/2026
28/05/2026
28/05/2026
$0.6300
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.2500
$0.2500
$0.5000
$0.3100
$0.3700
$0.5000
1,086,667
649,805
649,806
649,806
233,463
233,463
161,832
116,732
116,732
116,730
58,366
58,366
58,365
1,000,000
375,000
750,000
-
-
-
6,315,133
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
564,203
564,203
564,200
1,692,606
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(750,000)
-
-
-
(750,000)
1,086,667
649,805
649,806
649,806
233,463
233,463
161,832
116,732
116,732
116,730
58,366
58,366
58,365
1,000,000
375,000
-
564,203
564,203
564,200
7,257,739
Weighted average exercise price
$0.6997
$0.3933
$0.0000
$0.5000
$0.5706
31 December
2020
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Forfeited/
Exercised
other
Balance at
the end of
the year
12/01/2018
12/01/2018
12/01/2018
12/01/2018
31/01/2018
31/01/2018
31/01/2018
06/04/2018
06/04/2018
06/04/2018
08/07/2019
08/07/2019
08/07/2019
24/09/2019
24/09/2019
24/09/2019
24/09/2019
12/01/2023
12/01/2023
31/12/2023
31/12/2024
12/01/2023
12/01/2023
12/01/2023
12/01/2023
31/12/2023
31/12/2024
12/01/2023
31/12/2023
31/12/2024
23/09/2022
23/09/2022
23/09/2022
23/09/2022
$0.6300
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.6300
$0.7500
$1.0000
$0.2500
$0.2500
$0.5000
$0.5000
1,086,667
649,805
649,806
649,806
233,463
233,463
233,463
116,732
116,732
116,730
58,366
58,366
58,365
1,250,000
750,000
750,000
2,000,000
9,011,764
52
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(71,631)
-
-
-
-
-
-
(250,000)
(375,000)
-
(2,000,000)
(2,696,631)
1,086,667
649,805
649,806
649,806
233,463
233,463
161,832
116,732
116,732
116,730
58,366
58,366
58,365
1,000,000
375,000
750,000
-
6,315,133
Montem Resources Limited
Notes to the financial statements
31 December 2021
25. Share-based payments (continued)
Weighted average exercise price
$0.5635
$0.0000
$0.0000
$0.4553
$0.6997
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
12/01/2018
12/01/2018
12/01/2018
31/01/2018
31/01/2018
06/04/2018
06/04/2018
06/04/2018
06/04/2018
08/07/2019
08/07/2019
08/07/2019
24/09/2019
28/05/2021
12/01/2023
31/12/2023
31/12/2024
12/01/2023
12/01/2023
12/01/2023
12/01/2023
31/12/2023
31/12/2024
12/01/2023
31/12/2023
31/12/2023
23/09/2022
28/05/2026
31 December
2021
31 December
2020
Number
Number
1,736,472
649,806
649,806
233,463
233,463
161,832
116,732
116,732
116,730
58,366
58,366
58,365
1,375,000
564,203
1,736,472
649,806
649,806
233,463
233,463
-
116,732
116,732
116,730
58,366
58,366
-
1,375,000
-
6,129,336
5,344,936
The weighted average remaining contractual life of options outstanding at 31 December 2021 was 1.75 years (31 December
2020: 2.31 years)
Set out below are summaries of performance rights granted as share-based payments:
31 December
2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Forfeited/
Exercised
other
Balance at
the end of
the year
01/06/2018
08/07/2019
24/09/2019
30/06/2020
30/06/2020
01/06/2023
01/06/2023
30/06/2023
01/06/2023
30/06/2023
31 December
2020
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
2,544,613
175,097
3,000,000
1,500,000
1,500,000
8,719,710
-
-
-
-
-
-
-
-
-
-
-
-
(256,810)
-
(525,000)
(275,000)
(275,000)
(1,331,810)
2,287,803
175,097
2,475,000
1,225,000
1,225,000
7,387,900
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Expired/
forfeited/
other
Balance at
the end of
the year
Exercised
01/06/2018
08/07/2019
24/09/2019
30/06/2020
30/06/2020
01/06/2023
01/06/2023
30/06/2023
01/06/2023
30/06/2023
$0.0000
$0.0000
$0.0000
$0.0000
$0.0000
3,000,000
175,097
3,000,000
-
-
6,175,097
-
-
-
1,500,000
1,500,000
3,000,000
-
-
-
-
-
-
(455,387)
-
-
-
-
(455,387)
2,544,613
175,097
3,000,000
1,500,000
1,500,000
8,719,710
The weighted average remaining contractual life of performance rights outstanding at 31 December 2021 was 1.46 years
(31 December 2020: 2.46 years).
53
Montem Resources Limited
Notes to the financial statements
31 December 2021
25. Share-based payments (continued)
Fair value of the options granted during the current financial year, were determined using Black Scholes option pricing model
that takes into account factors specific to the share incentive plans, such as the vesting period. The valuation model inputs
used to determine the fair value at the grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
28/05/2021
28/05/2021
28/05/2021
28/05/2026
28/05/2026
28/05/2026
$0.0900
$0.0900
$0.0900
$0.3100
$0.3700
$0.5000
91.00%
91.00%
91.00%
-
-
-
2.85%
2.85%
2.85%
$0.045
$0.042
$0.038
(c) Share-based payments expenses
Total expense recognised for the period arising from share-based payment
transactions
Share-based payment arrangements expense recognised during vesting period
Share-based payment arrangements reversed during period recognised in the income
statement
Share-based payment arrangements reversed during period recognised under exploration
assets
Total share-based payments expense
Consolidated
31 December
2021
31 December
2020
47,705
621,897
(311,642)
(208,917)
-
-
(472,854)
621,897
Reversals of the costs of equity-settled transactions during the period are for following reasons;
●
●
Forfeiture of performance rights and options, for not meeting the non-market vesting conditions and the employee no
longer being in the employment of the Company.
Changes to the estimation of number of performance rights expected to become exercisable during the period.
Estimates are revised during the period and the cumulative share-based compensation resulting from a revision is
recognised in the current period.
(d) Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The costs of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying shares, the expected
dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not
determine whether the Consolidated Entity receives the services that entitle the employees to receive payment. No account
is taken of any other vesting conditions.
The costs of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the fair value of the award on the grant date,
the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already
recognised in previous periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
54
Montem Resources Limited
Notes to the financial statements
31 December 2021
25. Share-based payments (continued)
Non-market vesting conditions are included in assumptions about the number of options that are expected to become
exercisable. Estimates are subsequently revised if there is any indication that the number of share options expected to vest
differs from previous estimates. Any adjustment to cumulative share-based compensation resulting from a revision is
recognised in the current period. The number of vested options ultimately exercised by holders does not impact the expense
recorded in any period.
Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated to
share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share premium.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Consolidated Entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the Consolidated Entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If an equity-settled award is cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
26. Material Contracts
Rail Loadout Property Purchase
The Company has entered into an agreement (“Original Agreement”) to purchase property near the rail line to be utilized as
the rail loadout facility (the “Rail Land”). Subject to acceptance of an offer to purchase land adjacent to the Rail Land
(“Adjacent Land”), the Consolidated Entity has agreed to purchase the Rail Land and the Adjacent Land for a total of CAD
2,719,000.
On 4 January 2021, the Consolidated Entity and the landlord agreed to extend this option over the planned rail loadout land
for a further 12 months. The Land Vendors are not Related Parties. The parties agreed to an extension of this agreement
under the following terms:
●
●
●
●
Extension of agreement to 4 January 2022;
Total purchase price CAD 3,000,000;
The Consolidated Entity agreeing to forgo the existing CAD 184,000 deposit on 4 January 2021; and
The Consolidated Entity agreeing for a new, non-refundable deposit CAD 275,000 on 4 January 2021.
With the option expiring on 4 January 2022, the Consolidated Entity chose not to proceed with the land purchase subsequent
to the year end.
Chinook Properties Purchase
Montem Alberta completed the purchase of the Chinook Properties from PMRU, a subsidiary of Westmoreland Coal
Company. Total consideration for the Chinook Properties is CAD 12,000,000, of which CAD 1,000,000 was paid in
September 2016. Payment of the balance owing is as described below:
Tranche 1: Licensing Payments
Total of CAD 5,000,000 is payable as follows:
●
●
●
●
CAD 5,000,000 – within thirty days of receipt by Montem of a mining licence for any of the Chinook Properties not
including Tent Mountain or
CAD1,500,000 – within ninety days of receipt of the Tent Mountain renewed or amended coal mining licence;
CAD 1,500,000 – within ninety days of receipt of an amended Alberta Environmental Protection and Enhancement Act
(EPEA) for Tent Mountain;
CAD 2,000,000 on or before the earlier of thirty days of receipt of any coal mining licence related to the Chinook
Properties other than Tent Mountain and 31 January 2027.
55
Montem Resources Limited
Notes to the financial statements
31 December 2021
26. Material Contracts (continued)
Provided that:
●
●
If none of these payments have been triggered by 31 December 2021 and the purchaser has not submitted relevant
mining licence applications then the amounts will be payable on the earlier of the above triggers or in five equal
payments of CAD 1,000,000 payable annually before 31 January between 2022 and 2026; or
If none of these payments have been triggered by 31 December 2021 and the purchaser has submitted relevant mining
licence applications then the amounts will be payable on the earlier of the above milestones or in five equal payments
of CAD 1,000,000 payable annually before 31 January between 2024 and 2028. If the Company has submitted the
relevant mining licence applications but they are rejected by the authorities, the licence-related payments will be payable
in accordance with this provision.
As described above, the CAD 5,000,000 licensing payment is payable even if no licences are received for the Chinook
Properties.
Tranche 2: Production Payments
Total of CAD 6,000,000 is payable as follows:
●
CAD 6,000,000 within thirty days of the first 1,000,000 tonnes of coal from any of Chinook Properties not including Tent
Mountain.
Unless production of the first 1,000,000 tonnes of coal comes from Tent Mountain, then
●
●
●
●
●
CAD 500,000 within thirty days of production of the first 500,000 tonnes of Tent Mountain coal;
CAD 500,000 within thirty days of the production of the second 500,000 tonnes of Tent Mountain coal;
CAD 500,000 within thirty days of the first anniversary of such 1,000,000 tonnes production;
CAD 500,000 within thirty days of the second anniversary of such 1,000,000 tonnes production; and
CAD 4,000,000 within thirty days of production of 1,000,000 tonnes of production from the Chinook Properties other
than Tent Mountain.
56
Montem Resources Limited
Directors' declaration
31 December 2021
The Directors have determined that the Company is a reporting entity, and determined that this financial report should be
prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. The Directors of the
Company declare that:
●
●
●
●
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
31 December 2021 and of its performance for the financial year ended on that date; and
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in Note 2 to the financial statements;
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Mark Lochtenberg
Chairman
29 March 2022
57
Montem Resources Limited
Independent auditor’s report to members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Montem Resources Limited (the Company) and its
controlled entities (collectively, the Group), which comprises the consolidated statement of
financial position as at 31 December 2021, the consolidated statement of comprehensive
income, the consolidated statement of changes in equity and the consolidated statement
of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information, and the
directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 31 December 2021
and of its financial performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations
2001.
Material Uncertainty Related to Going Concern
We draw attention to Note 2 in the financial report, which indicates that the Group had a
net loss for the period of $14,055,639 and net cash outflow from operations of $3,283,362
during the year ended 31 December 2021. These conditions, along with other matters as
set forth in Note 2, indicate the existence of a material uncertainty that may cast significant
doubt about the Group’s ability to continue as a going concern and therefore the Group
may be unable to realise its assets and discharge it liabilities in the normal course of
business. Our conclusion is not modified in respect of this matter.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants
(including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
ASSESSMENT OF IMPAIRMENT OF EXPLORATION AND EVALUATION COSTS
Area of focus
Refer also to notes 2 and 11
The Group has incurred exploration and
evaluation costs for exploration projects
in Canada over a number of years.
There is a risk that the Group may lose
or relinquish its rights to explore and
evaluate those areas of interest and
therefore amounts capitalised to the
statement of financial position from the
current and historical periods be no
longer recoverable.
During the year an impairment charge of
$10,416,991 was recognised in relation
to exploration expenditure as a result of
a declining share price due to ongoing
coal policy developments in Alberta. The
ongoing policy renewal has impacted
and halted Montem’s ability to develop
their Tent Montain tenement. The
impairment resulted in the net assets of
Montem Resources being valued at the
market capitalisation at the price of the
capital raise in December 2021. This
was deemed the most appropriate
valuation under the fair value less costs
to sell method.
How our audit addressed it
Our audit procedures included the following:
— Understanding and vouching the underlying
contractual entitlement to explore and evaluate
each area of interest, including an evaluation of the
Group’s renewal in that area of interest at its expiry;
— Examining project spend per each area of interest
and comparing this spend to the minimum
expenditure requirements set out in the underlying
exploration expenditure plan;
— Evaluating management’s impairment analysis
which included the company’s analysis of
recoverability of the carrying value of the mining
tenements;
— Examining project spend to each area of interest to
ensure that it is directly attributable to that area of
interest; and
— From an overall perspective, comparing the market
capitalisation of the Group to the net carrying value
of its assets on the statement of financial position to
identify any other additional indicators of
impairment.
We also assessed the adequacy of the Group’s
disclosures in the financial report.
EQUITY BASED PAYMENT TRANSACTIONS
Area of focus
Refer also to notes 5 and 16
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.
For the year ended 31 December 2021,
the Group issued share-based
payments of $70,755 which had no
market vesting conditions.
How our audit addressed it
Our audit procedures included:
— A review of the internal control procedures and
systems implemented by the Group to account for
and issue equity based instruments;
— Obtaining formal agreements supporting the
transactions;
— Sought evidence supporting the achievement of
milestones necessary the accrual of the underlying
share-based payment expense;
The fair value is determined by using the
Black-Scholes model taking into account
the terms and conditions upon which the
instruments were granted. The
accounting estimates and assumptions
relating to equity-settled share-based
payments would have no impact on the
carrying amounts of assets and liabilities
within the next annual reporting period
but may impact profit or loss and equity.
— Reviewed the significant assumptions and evidence
supporting the calculations of the share-based
payments for accuracy and appropriateness
— Checking disclosures in the financial report for
accuracy of measurement and information about
the share-based payments.
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 31 December 2021 but does not include the financial report
and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report, or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 31
December 2021.
In our opinion, the Remuneration Report of Montem Resources Limited, for the year ended 31 December
2021, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
N. S. Benbow
Director
Melbourne, 29th of March 2022
Montem Resources Limited
Shareholder information
31 December 2021
The shareholder information set out below was applicable as at 21 March 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Holding Ranges
Total holders Total units
% units
above 0 up to and including 1,000
above 1,000 up to and including 5,000
above 5,000 up to and including 10,000
above 10,000 up to and including 100,000
above 100,000
3,316
20
181,586
52
121
941,196
354 13,855,257
241 274,824,102
788 289,805,457
-
0.06%
0.32%
4.78%
94.83%
Analysis of number of equitable security holders by size of holding for holders of unlisted options:
above 10,000 up to and including 100,000
above 100,000
Total holders Total units
% units
3
10
150,000
7,107,739
2.07%
97.93%
13
7,257,739
Analysis of number of equitable security holders by size of holding for holders of unlisted performance rights:
Holding ranges
above 100,000
Total holders Total units
% units
12
7,387,900
100.00%
62
Montem Resources Limited
Shareholder information
31 December 2021
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
HSBC Custody Nominees (Australia) Limited
CS Third Nominees Pty Limited (HSBC Cust Nom Au Ltd 13 A/C)
Citicorp Nominees Pty Limited
National Nominees Limited
JLNEC3 Pty Ltd (Tindall Family No 3 A/C)
UBS Nominees Pty Ltd
Evernal Energy Pte Ltd
Mark Lochtenberg & Michael Lochtenberg (Rigi Super Fund A/C)
Mr Micahel James Timothy Everard (HMT Family A/C)
Merrill Lynch (Australia) Nominees Pty Ltd (Regal Emerg Comp Fund Ii A/C)
CS Third Nominees Pty Ltd (Hsbc Cust Nomau Ltd 13 A/C)
Aliro Olave
BNP Paribas Nominees Pty Ltd (Ib Au Noms Retailclient Drp)
Mr Gavin Jeremy Dunhill
Mr Robert James Tindall
M & A Nomineee Serv Pty Ltd (M & A Cleaning Serv S/F A/C)
Twynam Investments Pty Ltd
Ilwella Pty Ltd
Armarna Too Pty Ltd (Armarna Too A/C)
Arianne Firth & Danielle Justine Langan
Unquoted equity securities
There are no unquoted equity securities.
Substantial holders
Substantial holders in the Company are set out below:
Regal Funds Management Pty Ltd
Illwella
Citicorp Nominees Pty Limited
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
% of total
shares
issued
Number held
28,671,728
17,771,082
16,403,144
8,000,000
7,296,604
7,034,497
6,217,079
5,982,154
5,816,018
5,727,238
5,682,993
5,663,383
5,443,337
5,100,000
4,453,334
4,346,422
4,000,000
3,767,490
3,569,728
3,146,500
9.89
6.13
5.66
2.76
2.52
2.43
2.15
2.06
2.01
1.98
1.96
1.95
1.88
1.76
1.54
1.50
1.38
1.30
1.23
1.09
154,092,731
53.18
Ordinary shares
% of total
shares
issued
Number held
30,532,817
32,439,218
16,403,144
10.54
11.19
5.66
At meeting of members or classes of members:
(a) each member entitled to vote may vote in person or by proxy, attorney or respective;
(b) on a show of hands, every person present who is a member or a proxy, attorney or representative of a member has one
vote; and
(c) on a poll, every person present who is a member or a proxy, attorney or representative of a member has:
63
Montem Resources Limited
Shareholder information
31 December 2021
(i) for each fully paid share held by person, or in respect of which he/she is appointed a proxy, attorney or representative,
one vote for the share;
(ii) for each partly paid share, only the fraction of one vote which the amount paid (not credited) on the share bears to the
total amounts paid and payable on the share (excluding amounts credited). Amounts paid or credited as paid in advance of
a call are ignored when calculating the fraction
Subject to any rights or restrictions attached to any shares or class of shares. The unlisted options and unlisted performance
rights do not carry any voting rights.
There are no other classes of equity securities.
Annual General Meeting and Director Nominations Closing Date
Montem Resources Limited advises that its Annual General Meeting will be held on Wednesday, 25 May 2022. The details
relating to the meeting will be advised in the Notice of Meeting to be sent to all Shareholders and released to ASX immediately
upon dispatch.
The Closing date for receipt of nomination for the position of Director is Friday, 8 April 2022. Any nominations must be
received in writing no later than 5.00pm (Melbourne time) on Friday, 8 April 2022 at the Company’s Registered Office.
The Company notes that the deadline for nominations for the position of Director is separate to voting on Director elections.
Details of the Director’s to be elected will be provided in the Company’s Notice of Annual General Meeting in due course.
Consistency with business objectives - ASX Listing Rule 4.10.19
In accordance with Listing Rule 4.10.19, the Consolidated Entity states that it has used the cash and assets in a form readily
convertible to cash that it had at the time of admission in a way consistent with its business objectives. The business
objectives are development of Tent Mountain Mine and completion of Chinook Project feasibility studies. Consistent with the
use of funds which were disclosed under the Prospectus dated 31 July 2020, the Consolidated Entity believes it has used its
cash in a consistent manner for the following purposes:
●
●
●
●
●
●
●
Tent Mtn: strategic land purchase (Tent Mtn rail)
Tent Mtn: Port reservation fee
Tent Mtn: permitting (enviro monitoring and liaison)
Tent Mtn: pre-production drilling (pit definition & bulk sample)
Chinook: exploration, PEA study and environmental work
General and administrative expenses
Offer costs (broker fees; IPO preparation)
64
Tenement List
PART I - Alberta Freehold Tenements
Prospect Area
Land Title Certificate Number Hectares
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
181 088 180
181 088 180 +13
181 088 180 +14
181 088 180 +15
181 088 180 +16
181 088 180 +17
181 088 180 +18
181 088 180 +19
181 088 180 +20
181 088 180 +21
181 090 692
181 090 692 +1
181 090 692 +2
181 090 692 +3
181 090 692 +4
181 090 692 +5
181 090 692 +6
181 090 692 +7
181 090 692 +8
181 090 692 +9
181 090 692 +10
181 090 692 +11
181 090 692 +12
181 090 692 +13
181 088 180 +1
181 088 180 +2
181 088 180 +3
181 088 180 +4
181 088 180 +5
181 088 180 +6
181 088 180 +7
181 088 180 +8
181 088 180 +9
181 088 180 +10
181 088 180 +11
181 088 180 +12
181 088 180 +22
181 088 180 +23
181 088 180 +24
65
8.1
32.6
16.3
32.6
8.1
48.9
8.1
24.3
64.7
16.2
24.3
2.3
8.0
12.2
56.7
16.2
32.6
8.1
64.7
16.3
32.6
8.1
48.9
8.1
36.4
129.5
28.3
12.1
16.2
165.9
131.5
129.5
129.5
248.3
259.0
12.1
129.5
129.5
129.5
PART I - Alberta Freehold Tenements
Prospect Area
Land Title Certificate Number Hectares
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
181 088 180 +25
181 088 180 +26
181 088 180 +27
181 088 180 +28
181 088 180 +29
181 088 180 +30
181 088 180 +31
181 088 180 +32
181 088 180 +33
181 088 180 +34
129.5
52.6
259.0
259.0
259.0
129.5
257.0
129.5
129.5
129.5
PART II - BC Leasehold Tenements
Prospect Area
Coal Lease No.
Hectares
Tent Mountain Mine
389283
153.0
PART III - Alberta Leasehold Tenements
Prospect Area
Coal Lease No.
Hectares
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Tent Mountain Mine
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
1320090097
1320090092
1320090093
1320090094
1320090095
1320090096
1320100052
1321080198
1321080199
1321080200
1321080201
1320120105
1321020120
1321020121
1321020122
1321020123
1321020124
1321050136
1321050137
1321050139
66
92.6
48.0
56.6
149.2
38.5
102.2
310.5
120.0
64.0
64.0
210.4
128.0
80.0
160.0
128.0
128.0
176.0
128.0
256.0
224.0
PART III - Alberta Leasehold Tenements
Prospect Area
Coal Lease No.
Hectares
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
Chinook Project
1321050140
1321080191
1321080193
1321080194
1321080195
1321080196
1321080197
1306120432
1306120433
1306120434
1307040479
1307040480
1307060454
1307100753
1307110904
1307110905
1307110906
1307110907
1308050910
1308090609
1311010588
1311010589
1311010590
1311080653
1311080654
1311080655
1311120668
1311120669
1312040484
1312100464
1312100465
1314030394
1316020095
1316020154
1316050179
1316120147
1316120148
1316120149
1316120150
1316120151
67
64.0
16.0
48.0
64.0
64.0
64.0
64.0
64.0
64.0
32.0
64.0
16.0
160.0
128.0
32.0
32.0
48.0
256.0
90.7
51.2
48.0
64.0
64.0
128.0
32.0
64.0
112.0
65.7
64.0
880.0
384.0
48.0
96.0
144.0
128.0
32.0
128.0
128.0
64.0
192.0
PART III - Alberta Leasehold Tenements
Prospect Area
Coal Lease No.
Hectares
Chinook Project
Chinook Project
Chinook Project
Chinook Project
4-Stack / Chinook Project (see Note below)
4-Stack / Chinook Project (see Note below)
4-Stack
4-Stack
4-Stack
4-Stack
4-Stack
4-Stack
4-Stack
4-Stack
4-Stack
4-Stack
Isola
Isola
Isola
Isola
Isola
Isola
Isola
Isola
Isola
Oldman
Oldman
Oldman
Oldman
Oldman
Oldman
1316120152
1316120155
1317080314
1320050132
1321050141
1321050143
1321050138
1321050142
1316120153
1316120154
1316120156
1316120157
1317090268
1317090269
1317090279
1317090280
1307070578
1307070579
1307070580
1319090188
1319090191
1319090192
1319090193
1319090194
1319090195
1317090270
1317090271
1317090272
1317090273
1317090274
1317090275
64.0
128.0
128.0
140.0
128.0
256.0
128.0
256.0
64.0
69.2
128.0
128.0
128.0
352.0
351.0
150.0
128.0
240.0
128.0
656.0
608.0
1,024.0
893.8
796.8
357.6
96.0
192.0
192.0
32.0
256.0
256.0
Note
Leases 1321050141 and 1321050143 are located partially within the Chinook Project and partially
within 4-Stack.
The total area of Lease 1321050141 is approximately 128 hectares with approximately 65 hectares lying within the Chinook Project
and the remainder in 4-Stack.
The total area of Lease 1321050143 is approximately 256 hectares with approximately 128
hectares lying within the Chinook Project and the remainder in 4-Stack.
Alberta Leasehold Tenements have a 15 year term after which time they require renewal. Upon renewal, a new Coal Lease number
is issued for the tenement but there is no change to the physical disposition of the tenement.
68