Montrose Environmental Group
Annual Report 2022

Plain-text annual report

Annual Report 31 December 2021 Revision: 1 Date Issued: 00/00/ TABLE OF CONTENTS  ▪ ▪ ▪ ▪ ▪ ▪ ▪  • • • • • • • •     • • • • • • • • •   ▪ ▪ ▪ ▪ ▪ ▪ ▪ ‑ ‑ ‑ ‑       | 23 | Annual Report - 31 December 2021   ▪ ▪ ▪  ▪ ▪ ▪ ▪  ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪    ,          • • • • • • • • • • • • • • • Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF MEGADO MINERALS LIMITED (FORMERLY MEGADO GOLD LIMITED) As lead auditor of Megado Minerals Limited (formerly Megado Gold Limited) for the year ended 31 December 2022, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Megado Minerals Limited (formerly Megado Gold Limited) and the entities it controlled during the period. Phillip Murdoch Director BDO Audit (WA) Pty Ltd Perth 29 March 2023 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. 1 Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia INDEPENDENT AUDITOR'S REPORT To the members of Megado Minerals Limited (formerly Megado Gold Limited) Report on the Audit of the Financial Report Opinion We have audited the financial report of Megado Gold Limited (formerly Megado Gold Limited) (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies and the directors’ declaration. In our opinion the accompanying financial report of the Group, is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the Group’s financial position as at 31 December 2022 and of its financial performance for the year ended on that date; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty relating to going concern We draw attention to Note 2(d) in the financial report which describes the events and/or conditions which give rise to 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 its liabilities in the normal course of business. Our conclusion is not modified in respect of this matter. 1 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. 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. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. Accounting for exploration and evaluation expenditure Key audit matter How the matter was addressed in our audit At 31 December 2022, we note that the carrying Our procedures included, but were not limited to: value of exploration and evaluation expenditure is significant to the financial statements, as disclosed  Obtaining a schedule of the areas of interest held by the Group and assessing whether the rights to tenure in note 7 to the financial report. of those areas of interest remained current at During the year, the Group obtained the tenement balance date; rights in the Fork Rare Earth Project through the  Considering the status of the ongoing exploration acquisition of 100 percent of the share capital of programmes in the respective areas of interest by Felix Strategic Minerals Pty Ltd for a combination holding discussions with management, and reviewing of cash and via an equity settled share based the Group’s exploration budgets, ASX announcements payment transaction. and director’s minutes; The accounting for acquisition transactions requires exercise of judgement to determine the appropriate accounting treatment including  Considering whether any such areas of interest had reached a stage where a reasonable assessment of economically recoverable reserves existed; whether the acquisition should be classed as an  Verifying, on a sample basis, exploration and asset or business acquisition and estimating the fair evaluation expenditure capitalised during the year value of the consideration paid. for compliance with the recognition and Furthermore, in accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group is required to assess at each reporting date if there are any triggers for measurement criteria of AASB 6;  Considering whether there are any other facts or circumstances existing to suggest impairment testing was required; impairment which may suggest that the carrying  Evaluating management’s assessment for the amount of this asset may exceed its recoverable acquisition of Fork Rare Earth Project and amount. This is a key audit matter due to the significant judgement involved in determining the impairment triggers and the accounting for the Fork Rare Earth project during the year. determination of the fair value of consideration paid and the value of net assets acquired;  Obtaining an understanding of the transaction including an assessment of the accounting acquirer and whether the transaction constituted a business or an asset acquisition; and  Assessing the adequacy of the related disclosures in Note 7 and Note 1(s) of the financial report. 2 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 2022, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our auditor’s report. 3 Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 16 to 20 of the directors’ report for the year ended 31 December 2022. In our opinion, the Remuneration Report of Megado Gold Limited (formerly Megado Gold Limited), for the year ended 31 December 2022, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. BDO Audit (WA) Pty Ltd Phillip Murdoch Director Perth, 29 March 2023 4    Revision: 1 Date Issued: 00/00/ 

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