More annual reports from Nagambie Resources Limited:
2023 ReportPeers and competitors of Nagambie Resources Limited:
Auric Mining Limited Massive Stibnite in NAD009
2022 Annual Report
CORPORATE DIRECTORY
NAGAMBIE RESOURCES LIMITED ABN 42 111 587 163
NAGAMBIE DEVELOPMENTS PTY LTD ABN 37 130 706 311
NAGAMBIE LANDFILL PTY LTD ABN 90 100 048 075
REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS
533 Zanelli Road
Nagambie Vic 3608
PO Box 339
Telephone: (03) 5794 1750
Website: www.nagambieresources.com.au
Email: info@nagambieresources.com.au
DIRECTORS
Michael W Trumbull (Executive Chairman)
Alfonso M G Grillo (Non-Executive Director)
William T Colvin (Non-Executive Director)
Warwick R Grigor (Non-Executive Director)
CHIEF EXECUTIVE OFFICER
James C Earle
COMPANY SECRETARY
Alfonso M G Grillo
PRINCIPAL LEGAL ADVISER
GrilloHiggins Lawyers
Level 4, 114 William Street
Melbourne Vic 3000
Telephone: (03) 8621 8881
Website: www.grillohiggins.com.au
AUDITOR
William Buck
Level 20, 181 William Street
Melbourne Vic 3000
SHARE REGISTRY
Automic Pty Ltd
Level 3, 50 Holt Street
Surry Hills NSW 2010
Telephone: 1300 288 664
Website: www.automic.com.au
SECURITIES EXCHANGE LISTING
Nagambie Resources Limited shares are
listed on the Australian Securities Exchange
ASX Code: NAG
Front Cover: Photo of NAD009 diamond hole core:
near-pure massive stibnite, assays pending
TABLE OF CONTENTS
Corporate Directory
Chairman’s Letter
IFC
1
CEO’s Operations & Exploration Review 2
Directors' Report
Remuneration Report
8
13
Auditor's Independence Declaration 18
Statement of Profit and 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
Additional ASX Information
19
20
21
22
23
45
46
51
Note: Corporate Governance Statement
The Corporate Governance Statement was
approved by the Board at the same time as
this Annual Report and can be found at:
https://www.nagambieresources.com.au/investor
-information/corporate-governance-statement
Chairman’s Letter
CHAIRMAN’S LETTER
Dear Shareholder
Antimony (Sb) is a metal that most people have never heard of. It is increasingly being recognised, given recent
events, as a critical metal in very short supply in the western world – China, Russia and Tajikistan control around 85%
of the world supply of antimony metal ingots and antimony trioxide powder (Sb203). Historical uses include solders,
bearings, bullets, missiles, fire retardance, lead batteries and semiconductors. A major emerging future-facing use
for antimony is predicted in calcium-antimony, liquid-metal batteries for large renewable energy developments, such
as solar and wind, that require grid-scale power storage. The calcium-antimony batteries are promoted as being
much cheaper to produce and maintain, and having twice the life (20 years versus 10 years), compared to lithium
batteries.
In March this year, Nagambie Resources completed a detailed re-analysis of the spectacular-looking 2006 NRP02
drill intersection under the West Pit at the Nagambie Mine. The principal conclusion was that the high-grade,
antimony-gold veining could strike NNW, a direction never tested in the eight follow-up holes drilled in 2006/2007.
Importantly, NNW is a common strike direction for the antimony-gold veins at the Costerfield Mine, 45 km to the west
of the Nagambie Mine.
The board determined to defer the deep diamond drilling of the Nagambie Mine Feeder Zone target and commence
drilling the Costerfield Mine-style (C-vein) targets. The C-veins drilling program has been very successful, with most
of the holes drilled to date intersecting massive stibnite veins striking N to NNW (stibnite being antimony sulphide,
Sb2S3, which can theoretically contain up to 71.7% Sb).
Historically, all mineralisation at the Nagambie Mine was simplistically thought to run E-W and all exploration holes
were drilled N-S to hit the expected mineralisation at right angles. It is now evident that, post the E-W mineralisation,
secondary antimony-gold mineralisation has been emplaced as variable thickness veins in N to NNW cross faults.
As the drilling program got underway, Nagambie set about establishing the most accurate, consistent and meaningful
reporting benchmark for the antimony-gold veins intersected – paying specific attention to the available information
on the Costerfield Mine. Mining Plus, a global mining services provider, reviewed the assay-reporting criteria
developed by Nagambie in August and agreed that the criteria were appropriate and meaningful in terms of reporting
to the ASX. Weighting all sample assays by bulk density (BD), as well as sample thickness, was found to be
particularly important. For example, doing so for the NRP02 intersection increased average grades for gold (Au),
antimony (Sb) and gold equivalent (AuEq) to 5.4 g/t Au, 9.1% Sb and 27.0 g/t AuEq – increases of 12.1%, 21.9% and
19.8% respectively.
For both the Costerfield Mine and the Nagambie Mine, the stibnite is known to contain variable amounts of the gold-
antimony mineral, aurostibite (AuSb2). While pure stibnite has a BD of 4.56, aurostibite has a BD of 9.98, reflective of
its high gold content. The highest sample assay for antimony within the NRP02 intersection was 60.2% Sb and the
associated gold assay was 24.0 g/t Au – all of the gold occurring as aurostibite within the massive stibnite. Put simply,
a stibnite vein at the Nagambie Mine can also be a high-grade “gold” vein.
Nagambie is targeting being both a high-grade antimony-gold miner and a producer of antimony-gold flotation
concentrate, via its 50:50 treatment plant joint venture with Golden Camel Mining. In terms of being a potential low-
cost concentrate producer, Nagambie is already fielding enquiries from overseas antimony refineries.
Warwick Grigor joined the Nagambie board at the beginning of October. Warwick has over 40 years’ experience in
the investment and gold mining sectors, having worked with numerous stock broking and investment banking
organisations. More recently he was the founding Chairman of Canaccord Genuity Australia. He retired from
Canaccord in 2014 to resume his Chairmanship of Far East Capital, an AFSL accredited private investment bank that
specialises in the mining sector, providing independent research, corporate advice and capital raising services.
Warwick adds considerable depth and strategic acumen to the board at a particularly exciting juncture in the
development of Nagambie’s resources.
I consider that Nagambie now has a well-credentialled board going forward. At first glance, the board consists of two
mining engineers (Bill Colvin and myself), a lawyer (Alfonso Grillo) and an investment analyst/banker (Warwick
Grigor). The CEO, James Earle, is a geological engineer. We all have additional qualifications and attributes – Bill
is also a chartered accountant, Alfonso is a specialist in mergers and acquisitions advice, James has environmental
qualifications and an MBA, I have an MBA and extensive gold exploration experience, and Warwick is a renowned
exploration/mining dealmaker.
As usual I would again like to thank the Company’s very supportive and patient shareholders - also my fellow directors,
the CEO and his team, our joint venture partners Southern Cross Gold and Golden Camel Mining, and our various
excellent consultants for another productive year.
Mike Trumbull
Executive Chairman
31 October 2021
Nagambie Resources Limited | 2022 Annual Report | Page 1
CEO’s Operations & Exploration Review
CEO’s OPERATIONS & EXPLORATION REVIEW
GOLD EXPLORATION
Gold exploration for high-grade underground sulphide-gold deposits in Nagambie Resources’ tenements continued to be
methodically advanced during the year – both by Nagambie at its 100%-owned Nagambie Mine and by Southern Cross Gold
(SXG, ex-Mawson Gold) at the Whroo and Redcastle joint venture properties.
Nagambie Mine C-Veins Drilling Program
Early this year, Nagambie completed a detailed re-analysis of the spectacular-looking 2006 NRP02 drill intersection under
the West Pit at the Nagambie Mine. The principal conclusion was that the high-grade, antimony-gold veining could strike
NNW, a direction never tested in the eight follow-up holes drilled in 2006/2007. Importantly, NNW is a common strike
direction for the antimony-gold veins at the Costerfield Mine, 45 km to the west of the Nagambie Mine.
It was decided to defer the deep diamond drilling of the Nagambie Mine Feeder Zone target and commence drilling the
Costerfield Mine-style (C-vein) targets. The C-veins drilling program has been very successful, with most of the holes drilled
to date (refer Figures 1 and 2) intersecting massive stibnite veins striking N to NNW. Stibnite is antimony sulphide, Sb2S3,
which can theoretically contain up to 71.7% Sb.
Figure 1 Plan: Diamond drilling of the C1/C2 antimony-gold vein system
Nagambie established the most accurate, consistent and meaningful reporting benchmark for the antimony-gold veins,
paying particular attention to the available information on the Costerfield Mine. Mining Plus, a global mining services
provider, reviewed the assay-reporting criteria developed by Nagambie and agreed that the criteria were appropriate and
meaningful in terms of reporting to the ASX.
Weighting all sample assays by bulk density (BD), as well as sample thickness, was found to be particularly important. For
example, doing so for the 2006 NRP02 intersection increased average grades for gold (Au), antimony (Sb) and gold
equivalent (AuEq) to 5.4 g/t Au, 9.1% Sb and 27.0 g/t AuEq – increases of 12.1%, 21.9% and 19.8% respectively.
For both the Costerfield Mine and the Nagambie Mine, the stibnite is known to contain variable amounts of the gold-antimony
mineral, aurostibite (AuSb2). While pure stibnite has a BD of 4.56, aurostibite has a BD of 9.98, reflective of its high gold
content. The highest sample assay for antimony within the NRP02 intersection was 60.2% Sb and the associated gold assay
was 24.0 g/t Au – all of the gold occurring as aurostibite within the massive stibnite.
Early Trends
The C-style cross-fault veins are associated with the E-W-striking Nagambie Mine Central Anticline and the various E-W-
striking thrust faults, all of which dip to the north (due to the N to S compression event at the time of first mineralisation, circa
375 Ma) and are known to continue regionally to kilometres in depth.
The most northern intersection to date, NAD009 – C2 (refer Figure 2), contains solid massive stibnite, indicating that the
vein system is open to the north. The NAD011 – C2 intersection (refer Figure 2) is the deepest significant intersection to
date, based on the visual logging of massive stibnite veins within it. The NAD012 – C2 intersection (refer Figure 2) is the
shallowest stibnite intersection to date, occurring just below the base of oxidation at around 50m vertical depth.
Nagambie Resources Limited | 2022 Annual Report | Page 2
Based on the above intersections, the strike length and vertical depth of the C1/C2 vein system could be around 60m and
80m respectively but are expected to increase substantially, particularly at depth, with further drilling.
Figure 2 Long Section looking E: Diamond drilling of the C1/C2 antimony-gold vein system
CEO’s Operations & Exploration Review
Nagambie Resources Limited | 2022 Annual Report | Page 3
CEO’s Operations & Exploration Review
The first ever intersection of visible gold at the Nagambie Mine occurred at 150m vertical depth in diamond hole NAD013
(refer Figures 1 and 2). Nagambie is now hopeful that it will intersect progressively higher-grade gold as drilling extends
deeper. It is noteworthy that first visible gold was intersected at the Fosterville Mine, the world’s highest-grade gold mine,
at around 200m vertical depth and spectacular gold results were subsequently drilled at around 800m vertical depth.
The discovery of more N to NNW-striking stibnite veining 200m to the west of the C1/C2 vein system in NAD012 has
confirmed the potential for extensive antimony-gold veining to the SW of the West Pit.
Photo 1 Contract diamond drilling rig positioned on the south side of the West Pit at the Nagambie Mine
Redcastle and Whroo Joint Ventures with Southern Cross Gold (ASX: SXG)
Southern Cross (SXG, ex-Mawson Gold) currently manages gold exploration within the Redcastle and Whroo JV Properties
of 75 sq km and 179 sq km respectively.
Whroo JV Property (NAG currently 100%, SXG has the right to earn up to 60% or 70% at Nagambie Resources’ option)
SXG drilled the first two deep diamond drill holes under Balaclava Hill within the Whroo JV Property (refer Figure 3) during
the year and encouragingly obtained peak assays of 49.7 g/t gold and 16.5% antimony. SXG are planning follow up drilling
and geophysics to begin earning an interest in the property.
Redcastle JV Property (SXG currently 70%, NAG 30%)
Across the property, SXG has established a 1 km geophysical target, a large antimony soil anomaly with a 73 g/t gold grab
sample, and 17 km of structures that remain untested (refer Figure 4).
Gold Tenements
Nagambie Resources’ tenements as at 30 September 2021, totalling 3,384 sq km, are listed in Table 1 and their general
location in central Victoria is shown in Figure 5.
Nagambie Resources Limited | 2022 Annual Report | Page 4
Figure 3 Whroo Workings
CEO’s Operations & Exploration Review
From a Southern Cross plan.
Figure 4 Plan of Redcastle showing Geological Detail
From a Southern Cross Plan
Figure 5 Nagambie Resources’ Tenements (blue) all within the Melbourne Zone (pink)
Nagambie Resources Limited | 2022 Annual Report | Page 5
CEO’s Operations & Exploration Review
Table 1 Nagambie Resources Tenements as at 30 September 2022
Tenement Number
MIN 5412
EL 5430
EL 5511
EL 6352
EL 6508
EL 6606
EL 6719
EL 6720
EL 6731
EL 6748
EL 6937
EL 6877
EL 7207
EL 7208
EL 7210
EL 7211
EL 7212
ELA 7213
EL 7264
ELA 7265
EL 7594
ELA 7595
ELA 7690
ELA 8082
ELA 8083
Subtotal
EL 6158
EL 6212
EL 7205
EL 7209
EL 7237
EL 7238
RL 2019
Subtotal
EL 5546
EL 7498
EL 7499
Subtotal
TOTAL
Tenement Name
Nagambie Mining Licence
Bunganail Exploration Licence
Nagambie Central Exploration Licence
Miepoll Exploration Licence
Tabilk Exploration Licence
Gowangardie Exploration Licence
Euroa Exploration Licence
Tatura Exploration Licence
Arcadia Exploration Licence
Waranga Exploration Licence
Nagambie East Exploration Licence
Nagambie Exploration Licence
Arcadia Exploration Licence
Cullens Road Exploration Licence
Locksley Exploration Licence
Shepparton Exploration Licence
Shepparton North Exploration Licence
Pederick Exploration Licence Application
Resource Recovery Exploration Licence
Nagambie Town Exploration Licence Application
Miepoll East Exploration Licence
Miepoll West Exploration Licence Application
Nagambie South Exploration Licence Application
Tabilk North Exploration licence Application
Tabilk East Exploration Licence Application
Waranga Domain excluding Whroo JV Property
Rushworth Exploration Licence
Reedy Lake North Exploration Licence
Angustown Exploration Licence
Goulburn West Exploration Licence
Kirwans North (1) Exploration Licence
Kirwans North (2) Exploration Licence
Doctors Gully Retention Licence
Whroo JV Property with SXG
Total Waranga Domain
Redcastle Exploration Licence
Cornella Exploration Licence
Sheoak Exploration Licence
Redcastle JV Property with SXG
Nagambie Resources Limited Tenements
sq km
3.5
160.0
21.0
342.0
33.0
88.0
81.0
145.0
218.0
102.0
2.0
8.0
156.0
29.0
26.0
444.0
321.0
683.0
1.0
8.0
47.0
113.0
4.0
7.0
40.0
3,082.5
46.0
17.0
49.0
34.0
20.0
9.0
4.0
179.0
3,261.5
51.0
19.0
5.0
75.0
3,336.5
NAGAMBIE GOLD TREATMENT PLANT
Nagambie Resources and Golden Camel Mining (GCM) are proceeding with the construction and operation of a 300,000
tonnes per annum toll treatment facility at the Nagambie Mine. GCM is the Manager and is paying 100% of all additional
infrastructure, construction and commissioning costs – thereafter, all revenues and operating costs will be shared 50:50.
Initial feed for the plant is to be trucked from GCM’s Golden Camel Mine.
GCM has been refurbishing key components of the plant and is finalising financial arrangements with an external party. GCM
has advised Nagambie that commissioning of the CIL toll treatment plant at the Nagambie Mine is now scheduled for the
September quarter 2023.
POTENTIAL BACTERIAL RECOVERY OF GOLD IN 1990s HEAP LEACH PAD
Total recorded gold production from the Nagambie Mine cyanide heap between 1989 and 1997 was 134,000 ounces and
Nagambie Resources considers that a significant amount of gold remains in the heap. Extracting this gold in a toll treatment
plant or by additional cyanide heap leaching is currently not viable or economic.
Stage 1 of the Bioleaching Project was completed with the findings being that gold can be bioleached from the tailings using
native and externally sourced bacteria when suitable conditions are provided. Further research was recommended to refine
and improve the rate of gold bioleaching.
$50,000 of funding assistance for Stage 2 of laboratory testwork, using larger samples from the Nagambie Mine and more
bacteria options, has been approved under the Federal Government's Innovation Connections Program. The Perth-based
laboratory, which is carrying out the work, has agreed to contribute an additional $55,000 to the Stage 2 work given its
positive assessment of the project. The Stage 2 work is to commence in November 2022.
Nagambie Resources Limited | 2022 Annual Report | Page 6
CEO’s Operations & Exploration Review
PASS STORAGE
The Spark consortium announced that it had placed orders for two large tunnel-boring machines (TBMs) to excavate the
road tunnels for the North East Link Project (NELP), commencing early in CY2024. The consortium has not yet placed orders
for the storage of the 7 Mt of PASS material (potential acid sulfate soil and rock) that will be generated. Nagambie Resources
remains one of the bidders for the NELP PASS storage.
James Earle
Chief Executive Officer
STATEMENT AS TO COMPETENCY
The Exploration Results in this report have been compiled by Adam Jones who is a Member of the Australian Institute of Geoscientists
(MAIG). Adam Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and
to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves”. He consents to the inclusion in this report of these matters based on the
information in the form and context in which it appears.
FORWARD-LOOKING STATEMENTS
This report contains “forward-looking statements” within the meaning of securities laws of applicable jurisdictions. Forward-looking
statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “target”, “intend”, “plan”, “estimate”,
“anticipate”, “believe”, “continue”, “objectives”, “outlook”, “guidance” or other similar words, and include statements regarding certain plans,
strategies and objectives of management and expected financial performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors, many of which are outside the control of Nagambie Mining and any of its officers, employees,
agents or associates. Actual results, performance or achievements may vary materially from any projections and forward-looking statements
and the assumptions on which those statements are based. Exploration potential is conceptual in nature, there has been insufficient
exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Readers are cautioned not to place undue reliance on forward- looking statements and Nagambie Resources assumes no obligation to
update such information.
Nagambie Resources Limited | 2022 Annual Report | Page 7
Directors’ Report
Directors’ Report
The directors of Nagambie Resources Limited submit herewith the annual financial report of the company and its
controlled entities (the group) for the financial year ended 30 June 2022.
Directors
The names and particulars of the company directors in office during the financial year and until the date of this report are
as follows. The directors were in office for the entire period unless stated otherwise.
Name
Particulars
MICHAEL W TRUMBULL
Non-Executive Director
Appointed 28 July 2005
Non-Executive Chairman
Appointed 20 December 2007
Executive Chairman
Appointed 13 September 2013
Michael Trumbull has a degree in mining engineering (first class honours) from
the University of Queensland and an MBA from Macquarie University. A Fellow
of the Australian Institute of Mining and Metallurgy, he has over 40 years of broad
mining industry experience with mines / subsidiaries of MIM, Renison, WMC,
CRA, AMAX, Nicron, ACM and BCD Resources.
From 1983 to 1991, he played a senior executive role in expanding the Australian
gold production assets of ACM Gold. From 1985 to 1987, he was Project
Manager and then Resident Manager of the Westonia open pit gold mine and
treatment plant in Western Australia. From 1987 to 1991, he was General
Manager – Investments for the ACM Group.
From 1993 to 2011, he was a Director of the BCD Resources Group and was
involved in the exploration, subsequent mine development and operation of the
Beaconsfield underground gold mine in Tasmania. From 1993 to 2003, he was
the sole Executive Director of BCD and, from 2003 to 2004, was the Managing
Director.
Other current Directorships of Listed Companies
None
Former Directorships of Listed Companies in last three years
None
ALFONSO M GRILLO
Non-Executive Director and
Company Secretary
Independent
Appointed 24 November 2017
Alfonso Grillo is a founding Partner at GrilloHiggins Lawyers. He holds a Bachelor
of Arts and Bachelor of Law degree. Alfonso has over 20 years experience as a
corporate lawyer, including company meeting practice and corporate governance
procedures, fundraising and fundraising documentation, ASX Listing Rules and
mergers and acquisitions.
Alfonso advises resource industry companies in relation to mining and exploration
projects, acquisition and divestment of assets, joint ventures and due diligence
assessments.
Alfonso has been a member of the Audit and Compliance Committee since his
appointment.
Other Current Directorships of Listed Companies
None
Former Directorships of Listed Companies in last three years
None
Nagambie Resources Limited | 2022 Annual Report | Page 8
GARY R DAVISON
Non-Executive Director
Independent
Appointed 15 May 2019
Resigned 8 September 2021
Directors’ Report
Gary Davison is a mining engineer. He is Managing Director and principal Mining
Engineer of Mining One Pty Ltd which he helped establish in August 2005, an
employee-owned independent group which has over 60 technical consultants.
Mining One provides expertise in Australia and internationally in resource
geology, mine planning, geotechnical engineering, conceptual studies, feasibility
studies and corporate strategic advice.
Gary has over 40 years’ experience in the mining industry in Australia and
overseas. His career began at Renison, Tasmania in 1978 and he has worked at
senior mine management levels in Tasmania, Western Australia, Victoria and
New South Wales – covering principally underground, but also surface mines. In
the early 1990’s, Gary managed the Nagambie Mine open pit and heap leach
treatment operations for Perseverance.
Gary was chairman of the Audit and Compliance Committee until his
resignation.
Other Current Directorships of Listed Companies
Westgold Resources Limited from 8 June 2021
Former Directorships of Listed Companies in last three years
None
WILLIAM T COLVIN
Non-Executive Director
Independent
Appointed 8 September 2021
Bill Colvin is both a Mining Engineer (BSc (Eng) Hons from the Royal School of
Mines, London) and a Chartered Accountant (Institute Chartered Accountants of
England & Wales). He worked as an auditor for Coopers & Lybrand in London
and Sydney before commencing his executive mining career and has over 30
years of broad experience with mines / subsidiaries of RGC / Goldfields, MPI
Mines / Leviathan Resources, Beaconsfield Gold / BCD Resources and currently
Bayan Airag Exploration LLC.
With Goldfields, Bill had various senior executive roles before becoming General
Manager of the Henty Gold Mine in Tasmania and then General Manager, Group
Operations. With MPI, he was the General Manager of the Stawell Gold Mine in
Victoria, where he transformed the operation from a closure mode to a
sustainable future, producing over 800,000 ounces of gold. He was CEO for the
BCD Resources group for six years and championed a unique remote mining
method that enabled the Beaconsfield Gold Mine to resume operations following
its high-profile closure in 2006.
for Bayan Airag, Bill supervised the permitting, construction and
As CEO
operational start-up of that company’s 1 Mtpa gold-silver heap-leach mine in
remote western Mongolia that faced difficult climatic, infrastructure and political
challenges. The mine has been in continuous production since 2014 and
the company is now advancing several other Mongolian copper-gold resources.
Bill has been Chairman of the Audit and Compliance Committee since his
appointment.
Other Current Directorships of Listed Companies
None.
Former Directorships of Listed Companies in last three years
None
Nagambie Resources Limited | 2022 Annual Report | Page 9
Directors’ Report
Chief Executive Officer
JAMES C EARLE BE (Geological) MEM MBA
James Earle was appointed as Chief Executive Officer on 4 July 2016. He is a Geological Engineer with over 15 years
broad experience with environmental impact assessments and approvals, waste management, environmental
management plans, soil and water assessments and strategic advice. The majority of his experience has been in public
infrastructure development and site-based environmental management.
He has held positions with consulting organisations and government departments in Australia and the UK. The most
recent positions held by James were Manager of the Victorian practice of Ramboll Environ and prior to that he was a
Senior Consultant, Service Group Manager and Principal Consultant at GHD. Both of these groups are global engineering
and environmental consultancies. James has also lectured at the Australian National University.
Operating and Financial Review
Principal Activities
The principal activities of the group during the financial period were the exploration for, and development of, gold,
associated minerals, and construction materials in Australia, and the investigation and development of waste handling
assets.
Review of Operations
Detailed re-analysis of the spectacular-looking 2006 NRP02 drill intersection under the West Pit at the 100%-owned
Nagambie Mine concluded that the massive-stibnite veining could strike NNW, a direction never tested in the eight follow-
up holes drilled in 2006/2007. The first seven holes in a CY2022 diamond drilling program designed to test this re-
analysis, NAD007-013, all intersected stibnite mineralisation. In particular, holes NAD009-011 all intersected significant
massive stibnite veining.
Until this year, Nagambie Resources’ gold model was based on the major N-S compression event (circa 375 million
years ago) in the Waranga Domain resulting in E-W-striking anticlines and thrust faults, with quartz-carbonate gold
mineralisation emplaced in the resulting E-W “plumbing systems”. With the confirmation of mineralised N to NNW-
striking cross faults at the Nagambie Mine, the gold model was adapted to consider that these cross faults post-dated
and progressively (from east to west at Nagambie) displaced the E-W features southwards in blocks, with stibnite-gold
mineralisation being emplaced in the N-NNW-striking “plumbing systems”.
Nagambie Resources and Golden Camel Mining Pty Ltd (GCM) are proceeding with the construction and operation of a
300,000 tonnes per annum gold toll treatment facility at the Nagambie Mine. GCM is the Manager and is paying 100%
of all construction and commissioning costs; thereafter all revenues and operational costs will be shared 50:50. Initial
feed for the plant is to be trucked from GCM’s Golden Camel Mine.
Following successful first-stage laboratory testwork on bacterial leaching of the historical gold heap leach pad at the
Nagambie Mine, a second-stage, larger-scale project has been devised and is to be funded by AusIndustry and the
Perth-based laboratory to an amount of $105,000.
The Spark consortium announced that it had placed orders for two large tunnel-boring machines (TBMs) to excavate the
road tunnels for the North East Link Project (NELP), commencing in CY2024. The consortium has not yet placed orders
for the storage of the 7 Mt of PASS material that will be generated. Nagambie Resources remains one of the bidders
for the NELP PASS storage.
Nagambie Resources Limited | 2022 Annual Report | Page 10
Directors’ Report
Covid-19 Impacts
The Covid-19 pandemic continued to affect activities throughout the year. Lockdowns in Melbourne and regional
Victoria resulted in some exploration drilling delays and various site visits being delayed, although the internet and
virtual meetings did allow personnel to work from home.
Likely Developments
During the 2023 financial year, Nagambie Resources is planning to:
1. Continue drilling the C1 / C2 vein system from the northern side of the West Pit, testing for both strike
extension to the north and extension at depth;
2.
In the second half of FY2023, design an exploration decline to access the C1 / C2 vein system at 100m
vertical depth and prepare a Work Plan Variation for MIN5430 to construct the decline and carry out
strike driving of the C1 and C2 veins on three levels;
3. Continue to assist Golden Camel wherever required to construct and commission the gold toll treatment
plant at the Nagambie Mine;
4. Carry out the second-stage, larger-scale laboratory testwork to recover residual gold from the Nagambie
Mine heap leach pad; and
5. Continue detailed investigations and permitting for the commencement of mining of the sand and
gravel resources established at the Nagambie Mine.
Financial Matters
The consolidated loss for the group for the year amounted to $2,340,799 after tax. This compared to a restated loss
after tax for the year ended 30 June 2021 of $1,981,521. The increase of $359,278 in the loss for the year arises after
a decrease in revenue of $25,677 and an increase in expenditures of $333,601. After a loss on disposal of $65,111
and a decrease of $623,852 in the carrying value of the shares in Mawson Gold Limited is taken into account as Other
comprehensive income there is a Total comprehensive loss of $3,029,762 for the year.
There were 13,213,812 new shares issued during the year at 5.3 cents.
Changes in state of affairs
There was no significant change in the state of affairs of the Group during the financial year other than already
disclosed.
Subsequent events
On 25 July 2022, the Company redeemed 18,000,000 Series 6 Convertible Notes with a face value of $1,800,000 into
new Series 10 Convertible Notes with a face value of $1,800,000, alongside issuing 15,712,500 convertible notes to
investors who are sophisticated, experienced or professional investors for the purposes of section 708 of the
Corporations Act, in respect of $1,257,000 in funding received (First Round Series 10 Convertible Notes).
Further to the 25 July 2022 issue of $3.057 million Series 10 Convertible Notes to sophisticated and professional
investors, on 17 August 2022 the Company issued an additional 2,500,000 Series 10 Convertible Notes with a face
value of $200,000 or $0.08 each to a sophisticated and professional investor for the purposes of section 708 of the
Corporations Act (Second Round Series 10 Convertible Notes). The additional fund will be used to continue the
successful drilling program for Costerfield-Mine-style, antimony-gold mineralisation at the Nagambie Mine
and to add working capital.
No other matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly
affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years
Environmental regulations
The company’s exploration and mining tenements are located in Victoria. The operation of these tenements is subject
to compliance with the Victorian and Commonwealth mining and environmental regulations and legislation.
Licence requirements relating to ground disturbance, rehabilitation and waste disposal exist for all tenements held.
The directors are not aware of any ongoing breaches of mining and environmental regulations and legislation during
the year and up to the date of this report.
Nagambie Resources Limited | 2022 Annual Report | Page 11
Directors’ Report
Dividends
No dividends in respect of the current financial period have been paid, declared or recommended for payment (2020:
Nil).
Share options
Share options granted to directors and executives
The following options were granted to directors and executives during the year: Refer to page 10 of the remuneration
report for full details.
Michael Trumbull (director)
Alfonso Grillo (director)
William Colvin (director)
James Earle (chief executive officer)
4,000,000
2,000,000
2,000,000
4,000,000
Shares under option or issued on exercise of options
No options were exercised during the year.
Options on issue as at reporting date
Number of options
13,750,000
1,000,000
4,500,000
10,500,000
2,000,000
14,900,000
14,150,000
14,650,000
75,450,000
Grant date
24/11/2017
20/12/2017
22/8/2018
23/11/2018
27/2/2019
29/11/2019
1/12/2020
26/11/2021
Vesting date
24/11/2017
20/12/2017
22/8/2018
23/11/2018
27/2/2019
29/11/2019
1/12/2020
26/11/2021
Expiry date
24/11/2022
20/12/2022
22/8/2023
23/11/2023
27/2/2024
29/11/2024
1/12/2025
26/11/2026
Exercise price
10 cents
14.1 cents
12.6 cents
10.8 cents
12.0 cents
10.0 cents
10.0 cents
11.25 cents
Indemnification of officers and auditors
During the financial year, the company paid a premium in respect of a contract insuring the directors of the company
(as named above), the company secretary, executive officers and any related body corporate against a liability incurred
by a director, secretary or executive officer 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. The company has not
otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to
indemnify an officer or auditor of the company or of any related body corporate against a liability incurred as such by
an officer or auditor.
Directors’ meetings
The following table sets out the number of directors’ meetings (including meetings of committees of directors) held
during the financial year and the number of meetings attended by each director (while they were a director or committee
member).
During the financial year 4 board meetings and 2 audit and compliance committee meetings were held.
Directors
Michael Trumbull
Alfonso Grillo
William Colvin
Gary Davison
Board of directors
Audit and compliance committee
Held
Attended
Held
Attended
4
4
4
-
4
4
4
-
2
2
2
-
2
2
2
-
Nagambie Resources Limited | 2022 Annual Report | Page 12
Directors’ Report
Directors’ shareholdings and options
The following table sets out each director’s relevant interest in shares, debentures, and rights or options on shares of
the company or a related body corporate as at the date of this report.
Directors
Michael Trumbull
Alfonso Grillo
Bill Colvin
Gary Davison
Fully paid ordinary shares
Number
Share options
Number
21,734,529
2,504,010
674,020
586,038
20,000,000
10,000,000
2,000,000
6,000,000
Remuneration report (Audited)
Remuneration policy for directors and executives
Details of key management personnel
The directors and key management personnel of Nagambie Resources Limited during the financial year were:
Michael Trumbull
Alfonso Grillo
William Colvin
Gary Davison
James Earle
Remuneration Policy
Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Chief Executive Officer
The Board is responsible for determining and reviewing the compensation of the directors, the chief executive officer,
the executive officers and senior managers of the company and reviewing the operation of the company’s Employee
Option Plan. This process requires consideration of the levels and form of remuneration appropriate to securing,
motivating and retaining executives with the skills to manage the company’s operations. The board of directors also
recommends levels and form of remuneration for non-executive directors with reference to performance and when
required, sought independent expert advice. The total sum of remuneration payable to non-executive directors shall
not exceed the sum fixed by members of the company in general meeting.
In accordance with ASX Listing Rule 10.17, the current maximum aggregate compensation payable out of the funds of
the company to non-executive directors for their services as directors is $250,000 per annum. For the year ending 30
June 2022, the board resolved that the executive chairman’s remuneration be set at $150,000 (2021: $150,000) per
annum excluding superannuation and share based payments. For non-executive directors, remuneration was set at
$42,000 (2020: $42,000) per annum excluding superannuation and share based payments. Where a director performs
special duties or otherwise performs consulting services outside of the scope of the ordinary duties of a director, then
additional amounts will be payable.
There is no direct relationship between the company’s remuneration policy and the company’s performance. That is,
no portion of the remuneration of directors, secretary or senior managers is ‘at risk’. However, in determining the
remuneration to be paid in each subsequent financial year, the board will have regard to the company’s performance.
Therefore, the relationship between the remuneration policy and the company’s performance is indirect.
Options are issued to employees under the company’s Employee Option Plan at the discretion of the board. Options
issued to directors require the approval of shareholders at a general meeting. The purpose of the issue of options is to
remunerate employees and directors as an incentive for future services. The directors consider it important that the
company is able to attract and retain people of the highest calibre and believe that the most appropriate means of
achieving this is to provide an opportunity to participate in the company’s future growth and give them an incentive to
contribute to that growth.
Nagambie Resources Limited | 2022 Annual Report | Page 13
Directors’ Report
Relationship between the remuneration policy and company performance
The tables below set out summary information about the Group earnings and movements in shareholder wealth for
the five years to June 2022.
Revenue
Net loss before tax
Net loss after tax
30 June
2022
$259,498
$2,340,798
$2,340,798
30 June
2021
$285,175
$1,981,521
$1,981,521
30 June
2020
$306,173
$1,604,138
$876,491
30 June
2019
30 June
2018
$328,904
$1,764,434
$1,485,048
$762,163
$1,187,261
$1,187,261
Share price at start of year (cents)
Share price at end of year (cents)
Dividends paid
Basic earnings per share (cents)
Diluted earnings per share (cents)
5.2
4.9
Nil
(0.46)
(0.46)
5.2
8.0
Nil
(0.40)
(0.40)
4.4
5.2
Nil
(0.19)
(0.19)
16.0
4.4
Nil
(0.35)
(0.35)
4.7
16.0
Nil
(0.29)
(0.29)
Director and executive remuneration
The directors, executives and consultants detailed below received the following amounts as compensation for their
services during the year:
Short
Term
Benefits
Post
Employment
Benefits
Share
Based
Payment
Performance
Related
Benefits
Movement
In
Accrued
Leave
Salary
and fees
$
Superannuation
$
Options
(non-cash)
$
165,000
164,250
46,200
45,990
8,568
45,990
33,945
-
166,667
200,000
420,380
456,230
-
-
-
-
-
-
3,395
-
16,667
19,000
20,062
19,000
198,892
161,588
99,446
80,794
-
80,794
99,446
-
198,892
80,794
596,676
403,790
$
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
5,643
15,297
5,643
15,297
Total
$
363,892
325,838
145,646
126,784
8,568
126,784
136,786
-
387,869
315,091
1,042,761
894,497
Alfonso Grillo (2)
Directors
Michael Trumbull (1) 2022
2021
2022
2021
2022
2021
2022
2021
William Colvin (4)
Gary Davison (3)
Chief Executive Officer
James Earle (5)
2022
2021
Total for Year
Total for Year
2022
2021
Apart from the contracts disclosed at (1) and (5) below there were no other contracts with management or directors in
place during the 2022 and the 2021 financial years.
(1)
(2)
Michael Trumbull is employed as Executive Chairman under a consultancy agreement which commenced on
1 July 2013 and is ongoing. The fixed annual remuneration level was set at $150,000 plus superannuation of
$15,000 (2021: $150,000 plus superannuation of $14,250) plus provision of a motor vehicle and
reimbursement of out of pocket expenses. The contract may be terminated upon giving 6 months notice by
the company or 3 months by the Consultant. Apart from accrued entitlements there are no other termination
benefits.
During the 2022 financial year, fees of $165,000 (2021: $164,250) were paid to Cypron Pty Ltd, an entity
controlled by Michael Trumbull, for his services as a director of the company. At 30 June 2022, there was an
amount of $165,000 (2020: $45,168) owing to Cypron Pty Ltd.
During the 2022 financial year, fees of $46,200 (2021: $45,990) were paid to GrilloHiggins Lawyers, an entity
in which Alfonso Grillo is a partner, for his services as a director of the company. The amount of $46,200 is
comprised of $42,000 director’s fee plus an allowance of $4,200 for superannuation. During the 2022 financial
year the company also paid fees of $81,859 (2021: $68,335) to GrilloHiggins Lawyers for secretarial and legal
services provided by Alfonso Grillo and other GrilloHiggins personnel.
At 30 June 2021, there was $52,905 (2020: $Nil) owing to GrilloHiggins.
Nagambie Resources Limited | 2022 Annual Report | Page 14
Directors’ Report
(3)
Gary Davison was appointed a director on 15 May 2019 and resigned 8 September 2021. During the 2022
financial year he was paid $8,568 (2021: $45,990) for his services as a director of the company. The amount
of $8.568 is comprised of $7,825 director’s fee plus an allowance of $743 for superannuation.
At 30 June 2022, there was no amount (2021: $3,990) owing to Gary Davison.
(5)
(4) William Colvin was appointed a director on 8 September 2021 . During the 2022 financial year he was paid
$37,340 (2021: $Nil) for his services as a director of the company. The amount of $37,340 is comprised of
$33,945 director’s fee plus an allowance of $3,395 for superannuation.
At 30 June 2022, there was $37,340 (2021: $Nil) owing to William Colvin.
James Earle is employed as the Chief Executive Officer under an employment agreement which commenced
on 8 August 2016 and is ongoing. The fixed remuneration is $200,000 per annum plus superannuation. He is
also entitled to a cash incentive bonus subject to performance hurdles. For the 2022 financial year there was
no cash bonus paid (2021: $0). The agreement may be terminated by either party upon giving 3 months
notice. Apart from accrued entitlements, there are no other termination benefits.
At 30 June 2022 there was $36,666 (2021 $Nil) owing to James Earle.
Shareholdings of key management personnel
Balance
1 July 2021
Granted as
remuneration
On exercise
of options
Net change
(1)
Balance
30 June 2022
Michael Trumbull
Alfonso Grillo
Gary Davison
William Colvin
James Earle
Total
21,168,492
1,937,973
586,038
-
1,258,287
24,950,790
-
-
-
-
-
-
-
-
-
-
-
-
566,037
566,037
-
674,020
-
-
21,734,529
2,504,010
586,038
674,020
1,258,287
26,756,884
(1) Net change refers to on and off market acquisitions/disposals and participation in share purchase plans.
Executive Options
The Group has an ownership-based remuneration scheme for staff and executives (including executive and non-
executive directors) of the company. In accordance with the provisions of the scheme, as approved by shareholders at
a previous annual general meeting, staff and executives of the company may be granted options to purchase parcels
of ordinary shares at an exercise price determined at the discretion of the board of directors.
Each share option converts into one ordinary share of Nagambie Resources Limited on exercise by the payment of the
exercise price. No amounts are paid or payable by the recipient on receipt of the options. The options carry neither right
to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.
The number of options granted is at the discretion of the board of directors of the company.
The options granted expire five years after their issue or one month after the resignation of the staff member or
executive, whichever is the earlier, or as otherwise determined by the board of directors. There are 75,450,000 share
options on issue under this plan, of which 52,000,000 are held by directors and key management personnel and
23,450,000 are held by other current and former executives and employees.
Options on issue at the end of the financial year
Number of options
Grant date
Vesting date
Expiry date
Exercise price
13,750,000
1,000,000
4,500,000
10,500,000
2,000,000
14,900,000
14,150,000
14,650,000
75,450,000
24/11/2017
20/12/2017
22/8/2018
23/11/2018
27/2/2019
29/11/2019
1/12/2020
26/11/2021
24/11/2017
20/12/2017
22/8/2018
23/11/2018
27/2/2019
29/11/2019
1/12/2020
26/11/2021
24/11/2022
20/12/2022
22/8/2023
23/11/2023
27/2/2024
29/11/2024
1/12/2025
26/11/2026
10 cents
14.1 cents
12.6 cents
10.8 cents
12.0 cents
10.0 cents
10.0 cents
11.25 cents
Nagambie Resources Limited | 2022 Annual Report | Page 15
Value of options issued to directors and executives
The following grants of share-based payment compensation to directors and executives relate to the 2022 financial
year:
Directors’ Report
Name
Michael Trumbull
Alfonso Grillo
William Colvin
James Earle
% of compensation
for year consisting
of options
54.65%
68.27%
72.70%
issued 26/11/2021 4,000,000 4,000,000 100% 0% 46.84%
Option series
issued 26/11/2021
issued 26/11/2021
issued 26/11/2021
% of
grant
forfeited
0%
0%
0%
Number
granted
4,000,000
2,000,000
2,000,000
Number
vested
4,000,000
2,000,000
2,000,000
% of
grant
vested
100%
100%
100%
The following table summarises the value of options granted, exercised or lapsed during the 2022 financial year to
directors and executives:
Name
Michael Trumbull
Alfonso Grillo
William Colvin
Gary Davison
James Earle
Value of options granted
during the year (i)
$
198,892
99,446
99,446
Nil
198,892
Value of options exercised
during the year (ii)
$
Nil
Nil
Nil
Nil
Nil
Value of options lapsed
during the year (iii)
$
137,474
34,368
Nil
Nil
102,332
(i) The value of options granted during the period is recognised in compensation at the grant date which is also the
vesting date. The assessed value was 4.97 cents per option.
No options were exercised during the reporting period.
(ii)
(iii) 8,000,000 directors options and no executives options lapsed during the reporting period.
Option holdings of key management personnel
Balance
1 July
2021
Granted as
remuneration
Options
Exercised
Options
Lapsed
Balance
30 June
2022
Vested and
exercisable at
30 June 2022
Michael Trumbull 20,000,000
9,000,000
Alfonso Grillo
-
William Colvin
6,000,000
Gary Davison
13,000,000
James Earle
48,000,000
Total
4,000,000
2,000,000
2,000,000
-
4,000,000
12,000,000
-
-
-
-
-
-
(4,000,000) 20,000,000
(1,000,000) 10,000,000
2,000,000
6,000,000
(3,000,000) 14,000,000
(8,000,000) 52,000,000
-
-
20,000,000
10,000,000
2,000,000
6,000,000
14,000,000
52,000,000
This concludes the Remuneration report which has been audited.
Corporate Governance
The Company’s Corporate Governance Statement and other corporate governance related documents may be
accessed
the Company’s website at https://www.nagambieresources.com.au/investor-information/corporate-
governance-statement.
from
Non-audit services
As detailed in note 27 to the financial statements, no amount has been paid to the auditor during the financial year for
non-audit services.
Auditor’s independence declaration
The auditor’s independence declaration is attached to this directors’ report.
Nagambie Resources Limited | 2022 Annual Report | Page 16
Directors’ Report
Proceedings on behalf of the company
No person has applied for leave of court to bring proceedings on behalf of the company or 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 any part of
these proceedings.
Signed in accordance with a resolution of directors made pursuant to s.298(2) of the Corporations Act 2001.
On behalf of the directors
Michael W Trumbull
Executive Chairman
Melbourne
28 September 2022
Nagambie Resources Limited | 2022 Annual Report | Page 17
Auditor’s Independence Declaration
Nagambie Resources Limited | 2022 Annual Report | Page 18
Statement of Profit and Loss and Other Comprehensive Income
Statement of Profit and Loss and Other Comprehensive Income
for the financial year ended 30 June 2022
Consolidated
Restated
2022
$
2021
$
259,498
285,175
Note
4
(471,542)
(529,296)
(13,027)
(19,061)
(204,869)
(225,899)
(828,500)
(676,779)
(1,082,359)
(815,661)
(2,340,799)
(1,981,521)
-
-
(2,340,799)
(1,981,521)
(688,963)
(1,091,514)
(3,029,762)
(3,073,035)
(0.46)
(0.40)
4
3
5
8
6
Revenue
Corporate expenses
Cost of sales and rehabilitation
Depreciation
Employee benefits expense
Interest expense
Loss before income tax
Income tax benefit
Loss for the year after tax
Other comprehensive income
Items that will not be re-classified to profit or loss
Movement in Fair Value of investments
Total comprehensive income (loss) for the year
Loss per share calculated on Loss for the year after tax
Basic and diluted loss per share in cents
The accompanying notes form part of these financial statements
Nagambie Resources Limited | 2022 Annual Report | Page 19
Statement of Financial Position
as at 30 June 2022
Statement of Financial Position
Current assets
Cash and cash equivalents
Deposit paid
Trade and other receivables
Equity investments at fair value
Total current assets
Non-current assets
Security deposits
Equity investments at fair value
Property, plant and equipment
Right of use assets
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Provisions
Contract liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2022
$
Restated
2021
$
Restated
2020
$
16(b)
7
8
9
8
11
12
10
13
17
18
17
18
14
15
127,211
-
33,967
220,074
381,252
1,359,055
90,500
76,298
2,039,706
3,565,559
224,057
-
75,235
1,977,054
2,276,346
750,795
-
1,502,538
54,806
14,506,514
16,814,653
739,559
-
254,101
544,162
13,282,132
14,819,954
709,213
1,977,055
284,013
743,579
12,149,498
15,863,358
17,195,905
18,385,513
18,139,704
691,135
1,559,199
62,075
51,420
41,876
2,405,705
359,250
-
254,640
47,522
41,876
703,288
246,725
300,000
279,349
32,303
41,188
899,565
4,291,192
-
28,310
4,319,502
5,518,801
62,076
23,063
5,603,940
3,351,180
287,092
18,927
3,657,199
6,725,207
6,307,228
4,556,764
10,470,698
12,078,285
13,582,940
27,977,836
4,138,612
(21,645,750)
10,470,698
27,284,103
4,531,592
(19,737,410)
12,078,285
27,284,103
4,626,210
(18,327,373)
13,582,940
The accompanying notes form part of these financial statements
Nagambie Resources Limited | 2022 Annual Report | Page 20
Statement of Changes in Equity
for the financial year ended 30 June 2022
Consolidated
Statement of Changes In Equity
Issued
capital
$
Options
reserve
$
Asset
revaluation
reserve
$
Convertible
notes
reserve
Accumulated
losses
$
$
Total
$
Balance at 1 July 2020
27,284,103
2,105,677
1,236,697
-
(17,926,357)
12,700,120
Adjustment for correction of error
(Note 3)
Balance at 1 July 2020 restated
Loss for the year
Other comprehensive income
Total comprehensive income
Recognition of share based
t
payments
Transfer of gain on disposal of
Investment
Transfer of value of options lapsed
-
-
-
1,283,836
(401,016)
882,820
27,284,103
2,105,677
1,236,697
1,283,836
(18,327,373)
13,582,940
-
-
-
-
-
-
-
-
-
-
(1,091,514)
(1,091,514)
571,618
-
-
(456,484)
(115,000)
-
-
-
-
-
-
-
-
-
(1,981,521)
(1,981,521)
-
(1,091,514)
(1,981,521)
(3,073,035)
-
571,618
456,484
115,000
-
-
996,762
-
996,762
2,562,295
(311,301)
2,280,598
(19,737,410)
12,078,285
Recognition of reserve for issue of
Convertible Notes (Note 3)
Balance at 30 June 2021 restated
-
27,284,103
Balance at 1 July 2021
27,284,103
2,562,295
(311,301)
2,280,598
(19,737,410)
12,078,285
Loss for the year
Other comprehensive income
Total comprehensive income
Recognition of share based
t
payments
Transfer of loss on disposal
of investment
Transfer value of options lapsed
-
-
-
-
-
-
-
-
-
-
(688,963)
(688,963)
728,442
-
-
65,111
(497,570)
Issue of Share Capital
Share issue expenses
700,333
(6,600)
-
-
-
-
-
-
-
-
-
-
-
-
(2,340,799)
(2,340,799)
-
(688,963)
(2,340,799)
(3,029,762)
-
728,442
(65,111)
497,570
-
-
-
-
700,333
(6,600)
Balance at 30 June 2022
27,977,836
2,793,167
(935,153)
2,280,598
(21,645,750)
10,470,698
The accompanying notes form part of these financial statements
Nagambie Resources Limited | 2022 Annual Report | Page 21
Statement of Cash Flows
for the financial year ended 30 June 2022
Statement of Cash Flows
Consolidated
Note
$
2022
2021
$
Cash flows from operating activities
Receipts from customers
Receipts from Aust. Taxation Office – Cash Flow Boost
Payments to suppliers and employees
Interest received
Interest paid
300,492
-
246,367
32,108
(329,597)
(521,637)
1,337
4,408
(750,769)
(551,278)
Net cash used in operating activities
16(a)
(778,537)
(790,032)
Cash flows from investing activities
Payments for exploration expenditure
(1,224,382)
(1,232,634)
Receipt from Mawson Gold JV option
Payments for security bonds
Payments for term deposits
Receipts from disposal of plant and equipment
Receipts from disposal of investments
Payment for property, plant and equipment
Deposit paid for land
Net cash used in investing activities
Proceeds from issue of shares
Proceeds (repayment) of borrowings
Proceeds from issue of convertible notes
Repayment of lease liabilities
Net cash provided by financing activities
-
100,000
(10,000)
(30,000)
(1,237)
-
-
5,000
1,130,669
822,889
(873,449)
-
-
(90,500)
(978,399)
(425,245)
693,733
-
86,000
(300,000)
-
2,900,000
(254,641)
(249,725)
525,092
2,350,275
Net increase (decrease) in cash and cash equivalents
(1,231,844)
1,134,998
Cash and cash equivalents at the beginning of the financial period
1,359,055
224,057
Cash and cash equivalents at the end of the financial period
16(b)
127,211
1,359,055
The accompanying notes form part of these financial statements
Nagambie Resources Limited | 2021 Annual Report | Page 22
Notes to the Financial Statements
Notes to the Financial Statements
for the financial year ended 30 June 2022
1. General information
Nagambie Resources Limited (the Company) is a listed for-profit public company, incorporated in Australia and
operating in Victoria. The registered office and principal place of business for the Company are located at 533 Zanelli
Road, Nagambie Vic 3608. These financial statements were authorised for issue on the date of the signing of the
attached Directors’ Declaration.
2. Significant accounting policies
Statement of compliance
The financial statements are general purpose financial statements which have been prepared in accordance with the
Corporations Act 2001 and the Corporations Regulations 2001, Australian Accounting Standards and Interpretations.
The financial statements include the consolidated financial statements of the group.
Compliance with Australian Accounting Standards (AASBs) ensures that the financial statements and notes of the
group comply with International Financial Reporting Standards (‘IFRS’).
Basis of preparation
The financial statements have been prepared on an accruals basis using historical cost with the exception of certain
assets measured at fair value. Cost is based on the fair values of the consideration given in exchange for assets. All
amounts are presented in Australian dollars, which is the functional and presentation currency of the Company and its
controlled entities. Comparative information where necessary has been reclassified in order to achieve consistency in
presentation with amounts disclosed in the current year.
Changes in accounting policies
Other than the policies described below there have been no changes in accounting policies.
The following significant accounting policies have been adopted in the preparation and presentation of the financial
statements:
Going concern
(a)
The financial report has been prepared on the going concern basis, which contemplates the continuity of normal
business activity and the realisation and settlement of liabilities in the normal course of business.
The consolidated entity generated a net loss after income tax expense for the period ended 30 June 2022 of $2,340,799
(2021: $1,981,521) and at reporting date has net assets of $10,470,698 (30 June 2021: $12,078,285) including
$14,506,514 (30 June 2021: $13,282,132) of capitalised exploration, evaluation and development costs. The
consolidated entity’s working capital deficit, being current assets less current liabilities was $2,024,453 at 30 June 2022
(30 June 2021: working capital surplus $2,862,271).
On the basis of the disclosures above a material uncertainty exists for the consolidated entity to continue as a going
concern. This material uncertainty that exists that may cast significant doubt on the entity’s ability to continue as a
going concern and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course
of business.
The biggest impact on the current net assets deficit is the redemption of $1.8 million Series 6 convertible notes, due
for redemption on 17 November 2022. The Company on the 25 July successfully negotiated with these note holders
to roll over Series 6 into Series 10 which also included the raising of additional funds of $1,457,000. The early
redemption and roll over of Series 6 convertible notes had the effect of reducing the working capital deficit from
$2,024,453 to $465,254 before taking into account the additional $1,457,000 raised.
The Directors have concluded that the going concern basis is appropriate, based on analysis of the consolidated
entity’s existing cash reserves and internal cash flow forecasts which include their current best estimate of expected
future financial commitments and other cash flows over the next 12 months.
If the actual outcomes differ significantly from the cash flow forecast estimates made and the consolidated entity
has additional cash requirements, the consolidated entity may need to take one or more of the following measures
when necessary:
Nagambie Resources Limited | 2022 Annual Report | Page 23
Notes to the Financial Statements
2. Significant accounting policies (continued)
• Raise additional capital. The consolidated entity has demonstrated its ability to raise capital over many
years and the Directors are confident that a future capital raising would be successful;
• Obtain letters of support from convertible notes holders, indicating their intention to convert their notes;
• Sale or mortgage of freehold property;
• Continue to reduce corporate overhead costs;
• Continue to pursue opportunities to farm-out part of the consolidated entity’s exploration interests.
On this basis no adjustments have made to the financial report relating to the recoverability and classification of the
carrying amount of the assets or the amount and classification of liabilities that might be necessary should the
consolidated entity not continue as a going concern. Accordingly, the financial report has been prepared on a going
concern basis.
If the going concern basis of accounting is found to be no longer appropriate, the recoverable amounts of the assets
shown on the consolidated statement of financial position sheet are likely to be significantly less than the amounts
disclosed and the extent of the liabilities may differ significantly, from those reflected.
(b) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (referred to as ‘the group’ in these financial statements). The Group controls an entity
when the Group 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.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of
profit or loss and other comprehensive income from the effective date of acquisition or up to the effective date
of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with those used by other members of the group. All intra-group transactions, balances, income
and expenses are eliminated in full on consolidation.
(c) Cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
(d) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be wholly settled within 12 months of the reporting date are recognised in current liabilities in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when the
liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be wholly settled within 12 months of the
reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer settlement
of the liability. The liability is measured as the present value of expected future payments to be made in respect
of services provided by employees up to the reporting date using the projected unit credit method. Consideration
is given to expected future wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the reporting date on government bonds with
terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Nagambie Resources Limited | 2022 Annual Report | Page 24
Notes to the Financial Statements
2. Significant accounting policies (continued)
(e) Exploration and evaluation assets
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the end of the reporting period
reached a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest are
continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortisation of assets used in exploration and evaluation activities. General and administrative costs are
only included in the measure of exploration and evaluation costs where they are related directly to operational
activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable
amount of the exploration and evaluation asset (or the cash-generating unit(s) to which it has been allocated,
being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if
any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset in previous years.
Where a decision is made to proceed with the development in respect of a particular area of interest, the relevant
exploration and evaluation asset is tested for impairment and the balance will then be reclassified to capitalised
development costs.
(f)
Impairment of tangible assets
At the end of each reporting period, the group reviews the carrying amounts of its tangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Where the asset does not generate cash flows that are independent from other assets, the group estimates the
recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent
allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the estimates
of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognised in profit or loss immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (or cash-generating unit) in prior years.
(g)
Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or
substantively enacted at the end of the reporting period. Current tax for current and prior periods is recognised
as a liability (or asset) to the extent that it is unpaid (or refundable).
Nagambie Resources Limited | 2022 Annual Report | Page 25
Notes to the Financial Statements
2. Significant accounting policies (continued)
Deferred tax
Deferred tax is accounted for using the liability method. Temporary differences are differences between the tax
base of an asset or liability and its carrying amount in the statement of financial position. The tax base of an
asset or liability is the amount attributed to that asset or liability for tax purposes.
(g)
Income tax
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are
recognised to the extent that it is probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax
assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial
recognition of assets and liabilities (other than as a result of a business combination) which affects neither
taxable income nor accounting profit.
A deferred tax liability is not recognised in relation to taxable temporary differences arising from the initial
recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries, branches and associates, and interests in joint ventures except where the group is able to control
the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the
foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with these investments and
interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against
which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when
the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the end of the reporting period. The measurement of deferred tax liabilities
and assets reflects the tax consequences that would follow from the manner in which the group expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation
authority and the group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the statement of profit or loss and other
comprehensive income, except when it relates to items credited or debited directly to equity, in which case the
deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a business
combination, in which case it is taken into account in the determination of goodwill or excess.
(h) Research & development tax incentive
The Research & development (R&D) tax incentive refund relates to eligible R&D activities undertaken by the group.
The tax credit is recognised when the money is received from the Australian Taxation Office. This credit is recognised
in current tax (refer note 2(g) above).
(i)
Right of use assets
A right of use asset is recognised at the commencement date of a lease. The right of use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable; any lease payment
made at or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling
and removing the underlying asset and restoring the site or asset.
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. When the Group 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 Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with a term of 12 months or leases of low-value assets. Lease payments on these assets are expensed
to profit or loss as incurred.
Nagambie Resources Limited | 2022 Annual Report | Page 26
Notes to the Financial Statements
2. Significant accounting policies (continued)
(j)
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 payment 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 Group’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 guarantees, lease term; certainty of a purchase option and termination penalties. When a
lease liability is remeasured, an adjustment is made to the following right-of-use asset, or to profit or loss if the
carrying amount of the right-of-use asset is fully written down.
Depreciation is calculated on a straight line basis so as to write off the net cost amount of each asset over its
expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the effect of any changes recognised on a
prospective basis.
(k) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes
expenditure that is directly attributable to the acquisition of the item.
Depreciation is provided on property, plant and equipment except for freehold land.
Depreciation is calculated on a straight line basis so as to write off the net cost amount of each asset over its
expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the effect of any changes recognised on a
prospective basis.
The range of useful lives for each class of plant equipment for the year were:
Plant and equipment:
Computer equipment:
Motor vehicles:
Buildings
4-10 years
3-5 years
3-5 years
40 years
The gain or loss arising on disposal or retirement of an item of property, plant or equipment is determined as the
difference between the sales proceeds and the carrying amount of the asset and is recognised in profit and loss.
(l)
Provisions
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the group will be required to settle the obligation, and a reliable estimate can be made
of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
(m) Revenue
Revenue is measured at the fair value of the consideration received or receivable.
Sale of rock revenue
Revenue from the sale of rock is measured at the fair value for the consideration received or receivable. The
revenue is recognised when the rock is removed from the company premises. There are no cartage expenses
as the customer utilises their own assets to source and remove the rock.
Interest revenue
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest
rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset’s net carrying amount.
Nagambie Resources Limited | 2022 Annual Report | Page 27
Notes to the Financial Statements
2. Significant accounting policies (continued)
Rental revenue
Property rental income is recognised on a straight-line basis over the period of the lease term. When rental
income is received in advance at the end of a period it is recognised as income in the following period to which
it relates.
Government Grants
Government grants are recognised when the Group has reasonable assurance that conditions will be complied
with and the grant will be received
(n) Share-based payments
Equity-settled share-based payments with employees and others providing similar services are measured at the
fair value of the equity instrument at the grant date. Fair value is measured by use of a Binomial option pricing
model. The expected life used in the model has been adjusted, based on management’s best estimate, for the
effects of non-transferability, exercise restrictions, and behavioural considerations.
The fair value determined at the grant date of the equity-settled share-based payments is expensed when
options are granted since in all cases there is no delay until options are vested.
Equity-settled share-based payment transactions with other parties are measured at the fair value of the goods
and services received, except where the fair value cannot be estimated reliably, in which case they are measured
at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the
counterparty renders the service.
(o) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i.
where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part
of the cost of acquisition of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST.
ii.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables. Cash flows are presented on a net basis. The GST components of cash flows arising from investing
or financial activities which are recoverable from a payable to the taxation authority are presented as operating
cash flows.
(p) Trade and other payables
Accounts payable and other payables represent the liability outstanding at the end of the reporting period for
goods and services received by the company during the reporting period which remain unpaid. The balance is
recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(q) Trade and other receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the
ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets.
(r) Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting
date, the loans or borrowings are classified as non-current.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the
statement of financial position, net of transaction costs.
Convertible notes are initially classified as a financial liability until extinguished on conversion or redemption.
The corresponding interest on convertible notes is expensed to profit or loss.
(s) Finance costs
Finance costs are expensed in the period in which they are incurred, including interest on bank accounts and
interest on short-term and long-term borrowings.
Nagambie Resources Limited | 2022 Annual Report | Page 28
Notes to the Financial Statements
2. Significant accounting policies (continued)
(t)
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 company 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
(u) Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
company intends to hold and has irrevocably elected to classify them as such upon initial recognition. There are
two types of FVOCI accounting under AASB 9 (Equity FVOCI and Debt FVOCI)
(v)
Impairment of financial assets
The company 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 company’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.
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.
(w) Critical accounting estimates and judgements
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the group may 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 directly 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 or activities that are not at a stage that permits a reasonable estimate of
the existence of economically recoverable reserves. 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.
Management have assessed the balance of capitalised exploration costs in line with future planned exploration
activities and the group’s accounting policy and have determined that no impairment was necessary. If a
tenement has been relinquished or reduced, then an impairment charge is taken. This charge is generally based
on the pro-rata area reduced, however there can be other reasons for not using such an approach. When a
tenement is not relinquished or reduced but is thought to be of reduced carrying value then an impairment based
on management’s estimate of fair value has been applied. Any charge for impairment is recognised in profit or
loss immediately and also shown at Note 9.
Nagambie Resources Limited | 2022 Annual Report | Page 29
Notes to the Financial Statements
2. Significant accounting policies (continued)
Rehabilitation of tenements
The group has considered whether a provision for rehabilitation of any tenement is required. The directors do
not consider that such a provision is necessary due to the fact that rehabilitation is being undertaken on a
progressive basis. Whilst the company is in exploration phase it cannot reliably estimate the scope and costs of
rehabilitation work that will need to be undertaken.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the group considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Share based payments
The group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using a Binomial
valuation method of taking into account the terms and conditions upon which the instruments were granted. The
company employs an external consultant to complete the valuation and this takes into account the expected
volatility of the share price as one of the key components of the valuation. 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.
Fair value of convertible notes
On the issue of the convertible notes the fair value of the liability component is determined using a market rate
for an equivalent non-convertible bond and this amount is carried as a non-current liability on the amortised cost
basis until extinguished on conversion or redemption. The increase in the liability due to the passage of time is
recognised as a finance cost. The remainder of the proceeds are allocated to the conversion option that is
recognised and included in shareholders equity as a convertible note reserve, net of transaction costs. The
carrying amount of the conversion option is not remeasured in the subsequent years. The corresponding interest
on convertible notes is expensed to profit or loss.
(x) Fair value measurement hierarchy
The company is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy,
based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted
prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability.
Considerable judgement is required to determine what is significant to fair value and therefore which category
the asset or liability is placed in can be subjective.
(y) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the group only.
Supplementary information about the parent entity is disclosed in note 29.
(z) New Accounting Standards for Application in Current and Future Periods
The AASB has issued new and amended accounting standards and interpretations that have mandatory
application dates for future reporting periods and which the Company has decided not to early adopt. In the
directors’ view none of these standards and interpretations will have a material effect on these financial
statements.
Nagambie Resources Limited | 2022 Annual Report | Page 30
Notes to the Financial Statements
2. Significant accounting policies (continued)
New Accounting Standards for Application in Current and Future Periods
Standard
Mandatory date for annual
reporting periods beginning
on or after
Reporting period standard
adopted by the company
The revised Conceptual Framework for Financial Reporting
1 January 2020
1 July 2020
AASB 2018-6 Amendments to Australian Accounting Standards –
Definition of a Business
1 January 2020
1 July 2020
AASB 2018-7 Amendments to Australian Accounting Standards –
Definition of Material
1 January 2020
1 July 2020
AASB 2020-1 Amendments to Australian Accounting Standards –
Classification of liabilities as Current or Non-Current
1 January 2023
1 July 2023
3. Restatement of Financial Statements as a Result of Change in Accounting Policy and
Correction of an Error
The Company was reporting the convertibles notes it had issued at face value as either a Current liability or Non-
current liability depending on when those liabilities fell due.
AASB 132 Financial Instruments: Presentation requires that the debt component of convertible notes, with fixed
conversion formulae, be valued at fair value upon initial recognition (the date upon which the Company and the
convertible noteholder became party to contract), with any difference between the face value of those notes and the
fair value of the debt component recognised in equity.
Following the directors of the Company taking up the fair value of the four tranches of convertible notes the following
items have been adjusted and restated as if valued at fair value upon initial recognition.
Profit and Loss 30 June 2021
Finance costs
Loss for the year
Reported
$
Adjusted
$
Restated
$
(551,278)
(264,383)
(851,661)
(1,717,138)
(264,383)
(1,981,521)
Basic and diluted loss per share in cents
(0.34)
(0.40)
Statement of Financial Position 30 June 2021
Borrowings
7,134,000
(1,615,199)
5,518,801
Equity
Convertible notes reserve
Accumulated losses
-
(19,072,011)
2,280,598 2,280,598
(19,737,410)
(665,399)
Statement of Financial Position 30 June 2020
Borrowings
4,234,000
(882,820)
3,351,180
Equity
Convertible notes reserve
Accumulated losses
-
(17,926,357)
1,283,836
(401,016)
1,283,836
(18,327,373)
Nagambie Resources Limited | 2022 Annual Report | Page 31
Notes to the Financial Statements
4. Revenue and expenses
The loss before income tax includes the following items of revenue and expenses.
(a) Revenue
Revenue from contracts with customers
Rental income
Sale of rock and quarry products
Other sales
Other revenue
Government cash flow boost
Interest
Sundry income
Total revenue
(b) Expenses
Employee benefits expense
Employee benefits
Share based payments expense
Superannuation expense
5. Income tax
(a)
Income tax expense
Loss from operations
Consolidated
2022
$
2021
$
223,148
28,146
-
-
1,337
6,867
259,498
71,323
728,442
28,735
828,500
211,798
18,005
9,107
30,438
4,754
11,073
285,175
77,898
571,618
27,263
676,779
(2,340,799)
(1,717,138)
Prima facie tax benefit calculated at 25% (2021: 26%)
585,200
515,141
Add tax effect of:
- Non deductible expenses
- Share based payments
Less tax effect of:
Current year tax loss not recognised
Add R&D tax incentive
Income tax benefit
(b) Deferred tax asset
(3,073)
(182,110)
3,323
(171,485)
(400,017)
(346,979)
-
-
-
-
A deferred tax asset attributable to tax losses and timing differences
has not been brought to account due to the uncertainty of recoverability
in future periods.
4,906,200
5,527,182
Nagambie Resources Limited | 2022 Annual Report | Page 32
Notes to the Financial Statements
6. Loss per share
Basic and diluted loss per share is calculated as net loss attributable to members of
the parent, adjusted to exclude any costs of servicing equity (other than dividends)
and preference share dividends, divided by the weighted average number of
ordinary shares, adjusted for any bonus element.
Net loss
2,340,799
1,981,521
Weighted average number of ordinary shares used in the calculation of basic and
diluted earnings per share
Basic and diluted loss per share in cents
503,146,158
499,932,346
0.46
0.40
As discussed in Note 22, the company has issued options over its unissued share capital. All these options are anti-
dilutive in nature due to the company incurring losses and the share price being less than the exercise price. They
therefore have not been incorporated into the diluted earnings per share calculation.
7. Receivables
Trade receivables
Other receivables
Total receivables
8. Equity investments at fair value
Current assets
Shares in Mawson Gold Limited
Total equity investments at fair value
2022
2021
$
$
461
33,506
33,967
628
75,670
76,298
220,074
2,039,706
220,074
2,039,706
Total Equity Investments at fair value 30 June 2021
Sale of investments during the period at fair value
Revaluation on investments held 30 June 2022
Total equity investments at fair value 30 June 2022
2,039,706
(1,195,780)
(623,852)
220,074
The shares shown above as current assets are those which are available for sale within the next 12 months. There are
no shares subject to escrow periods which expire beyond that time.
The difference between fair value at balance date and the cost at the date of the transaction for equity investments is
$935,153 loss (2021 $311,301 loss). This amount is reflected in an Asset revaluation reserve and shown at Note15.
Financial assets at fair value through other comprehensive income relate to Mawson Gold Limited which are ordinary
shares in a company listed on the Toronto Stock Exchange. These have been valued at the quoted prices at accordance
with AASB 13, using Level 1 of the fair value hierarchy – quoted prices (unadjusted) in active markets for identical assets
or liabilities
Nagambie Resources Limited | 2022 Annual Report | Page 33
Notes to the Financial Statements
8. Equity investments at fair value continued
A reconciliation of the number of Mawson Gold Limited shares held, Fair Value and Asset Revaluation Reserve is
below.
Date
Transaction
Quantity of
shares
Equity investment
at fair value
Asset
revaluation
$
reserve
$
23 Mar 2020
Acquisition
9,500,000
2,717,412
-
30 Jun 2020
Revalued at financial year end
-
1,236,697
(1,236,697)
30 Jun 2021
Sold at fair value during financial year
(1,900,000)
(366,405)
-
30 Jun 2021
Movement in revaluation reserve
30 Jun 2021
Profit on disposal
-
-
(1,091,514)
1,091,514
(456,484)
454,484
30 Jun 2022
Sold at fair value during financial year
(5,975,000)
(1,195,780)
-
30 Jun 2022
Movement in revaluation reserve
30 Jun 2022
Loss on disposal
-
-
(688,963)
688,963
65,111
(65,111)
30 Jun 2022
Balance at year end
1,625,000
220,074
935,153
9. Security deposits
Non-current assets
Security deposits - environmental bonds (i)
Deposit on land
Total other assets
(i) Security deposits – environmental bonds
600,795
150,000
750,795
589,559
150,000
739,559
The company holds security deposits, in the form of term deposits with its banker. These are guarantees for
performance conditions set by the Department of Economic Development, Jobs, Transport and Resources Victoria on
mining tenements held by the company. Those guarantees are held to cover any future rehabilitation obligations the
company may have on the mining tenements. When all obligations in relation to a mining tenement are finalised, the
relevant guarantee will be released and associated environmental bond will be redeemed. The deposits are shown as
non-current assets since it is not expected that they will be repaid during the coming 12 months. These cash deposits
earn interest for the company.
10. Exploration and evaluation assets
Balance at beginning of the year
add Exploration costs capitalised for the year
Less Mawson Gold Limited option conditions payment
Balance at end of the year
Consolidated
2022
$
13,282,132
1,224,382
-
14,506,514
2021
$
12,149,498
1,235,634
(100,000)
13,282,132
Nagambie Resources Limited | 2022 Annual Report | Page 34
Notes to the Financial Statements
11. Property, plant and equipment
Gross carrying amount
Balance at 1 July 2021
Additions
Disposals
Movement from Right of use assets
Balance at 30 June 2022
Accumulated depreciation
Balance at 1 July 2021
Depreciation expense
Disposals
Movement from Right of use assets
Balance at 30 June 2022
Net book value
As at 30 June 2021
As at 30 June 2022
Land and
buildings
$
Plant and
equipment
$
Consolidated
Computer
equipment
$
Motor
vehicles
$
Total
$
45,063
960,184
-
-
1,005,247
-
-
-
-
-
390,873
3,765
-
609,674
1,004,312
(184,031)
(41,899)
-
(302,036)
(527,966)
25,951
-
-
-
25,951
(23,755)
(751)
-
-
(24,506)
86,211
-
-
25,290
111,501
(86,211)
(5,790)
-
-
(92,001)
548,098
963,949
-
634,964
2,147,011
(293,997)
(48,440)
-
(302,036)
(644,473)
45,063
1,005,247
206,842
476,346
2,196
1,445
-
19,500
254,011
1,502,538
The movement from Right of use assets are leased assets that finished their lease term during the year and the
entity took ownership of the leased asset. During the Right of use asset's life, management had depreciated at a
slower rate than the life of the lease contract and therefore when they took ownership there was still a useful life /
carrying value which has been transferred to Property, plant and equipment.
12. Right of use assets
Gross carrying amount
Balance at 1 July 2020
Additions
Movement to Property, plant and
Balance at 30 June 2021
Accumulated depreciation
Balance at 1 July 2021
Depreciation expense
Movement to Property, plant and
Balance at 30 June 2021
Net book value
As at 30 June 2021
As at 30 June 2022
Consolidated
Land and
buildings
$
Plant and
equipment
$
Motor
vehicles
$
Total
$
416,523
-
416,523
609,674
-
(609,674)
-
(230,184)
(131,532)
-
(361,716)
(277,750)
(24,286)
302,036
-
88,932
-
(88,932)
-
(63,033)
(609)
63,642
-
1,115,129
-
(698,606)
416,523
(570,967)
(156,428)
365,678
(361,716)
186,339
54,806
331,924
-
25,899
-
544,162
54,806
Land and buildings consists of the group’s rental lease for farm land in Nagambie (remaining term is 5 months, no
option to extend is included in valuation). For calculation of the value the group has used a discount rate based on
weighted average incremental borrowing rate of 10%.
Plant and equipment consists of the group’s rental lease for equipment. For calculation of the value the group has
used a discount rate based on weighted average incremental borrowing rate of 10%.
Motor vehicles consists of the group’s rental leases for motor vehicles. For calculation of the value the group has used
a discount rate based on weighted average incremental borrowing rate of 10%.
Nagambie Resources Limited | 2022 Annual Report | Page 35
13. Trade and other payables
Trade payables
Other payables
14. Issued capital
(a) Issued and paid capital
Ordinary shares fully paid
(b) Movements in shares on issue
Balance at beginning of the year
Movements during the year
Placement of shares
March 2022 issue price 5.3 cents
Share purchase plan
March 2022 issue price 5.3 cents
Share issue expenses
Balance at end of the year
Notes to the Financial Statements
Consolidated
2022
$
143,573
547,562
691,135
2021
$
182,173
177,077
259,250
2022
$
27,977,836
2021
$
27,284,103
Year ended
30 June 2022
Year ended
30 June 2021
Number of
shares issued
Issued
capital
$
499,932,346
27,284,103
Number of
shares
issued
499,932,346
Issued
capital
$
27,284,103
6,755,340
358,033
-
-
6,458,490
-
513,146,176
342,300
(6,600)
27,977,836
-
-
499,932,346
-
-
27,284,103
(c) Terms and conditions of issued capital
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to
participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid
up on the shares held.
Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the company. The fully
paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.
Share options granted under the employee share option plan
As at 30 June 2022 there were 29,300,000 (2021 28,300,000) options over ordinary shares in respect of the
employee share option plan. These options were issued in accordance with the provisions of the employee share
option plan to executives and senior employees. Of these options 29,300,000 were vested by 30 June 2022 (2021:
28,300,000).
Share options granted under the employee share option plan carry no rights to dividends and have no voting
rights. Further details of the employee share option plan are contained in note 22 to the financial statements.
Other share options on issue
As at 30 June 2022 there were 38,000,000 options over ordinary shares issued to directors (2021:48,000,000).
Of these options 38,000,000 were vested by 30 June 2022 (2021: 48,000,000).
The options carry no rights to dividends and have no voting rights. Further details of these options are shown in
note 22 to the financial statements.
(d) Capital management
The group'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.
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The group 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 group 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.
The group is subject to equipment financing arrangements and meeting these is given priority in all capital risk
management decisions. There have been no events of default on the financing arrangements during the financial
year.
The capital risk management policy remains unchanged from the 30 June 2020 Financial Statements.
Nagambie Resources Limited | 2022 Annual Report | Page 36
15. Reserves
Options reserve
Balance at beginning of the year
Recognition of share based payments
Value of options exercised
Value of options lapsed
Balance at end of the year
Notes to the Financial Statements
Consolidated
2022
$
2,562,295
728,442
-
(497,570)
2,793,167
Restated
2021
$
2,562,295
571,618
-
(115,000)
2,562,295
The options reserve represents the fair value of unvested and vested ordinary shares under options granted to
directors, consultants and employees.
Asset revaluation reserve
Balance at beginning of the year
Decrease on Equity investment at fair value
Increase on Equity investments at fair value
Transfer gain on disposal of investment
Balance at end of the year
Convertible notes reserve
Balance at beginning of the year
Equity in new notes issued
Equity in notes repaid or converted
Balance at end of year
Total reserves at end of year
16. Notes to the statement of cash flows
(311,301)
(623,852)
-
-
(935,153)
1,236,697
(1,091,514)
-
(456,484)
(311,301)
2,280,598
-
-
2,280,598
-
1,283,836
996,762
-
2,280,598
4,138,612
4,531,592
(a) Reconciliation of loss after tax to net cash flows from operations
Net loss for the period
(2,340,799)
(1,981,521)
Depreciation of property, plant and equipment
Profit on disposal of plant and equipment
Share based payment expense
Non-cash interest on convertible notes
Impairment of assets
Changes in assets and liabilities
(Increase)/Decrease in receivables
Increase/(Decrease) in creditors
Increase/(Decrease) in employee provisions
Net cash from (used in) operating activities
(b) Reconciliation of cash
Cash and cash equivalents comprise:
Cash on hand and at call
204,869
-
728,442
331,590
-
42,330
245,886
9,144
(778,538)
225,899
(1,570)
571,618
264,383
-
(1,409)
113,213
19,355
(790,032)
127,211
127,211
1,359,055
1,359,055
Nagambie Resources Limited | 2022 Annual Report | Page 37
17. Borrowings
Current
Convertible Notes Series 6
Series 6 Face value of notes issued
Series 6 Equity component
Series 6 Interest
Total current borrowings
Non-current
Convertible Notes Series 6
Series 6 Face value of notes issued
Series 6 Equity component
Series 6 Equity component
Convertible Notes Series 7
Series 7 Face value of notes issued
Series 7 Equity component
Series 7 Interest
Convertible Notes Series 8
Series 8 Face value of notes issued
Series 8 Equity component
Series 8 Interest
Convertible Notes Series 9
Series 9 Face value of notes issued
Series 9 Equity component
Series 9 Interest
Total non-current borrowings
Total borrowings
Notes to the Financial Statements
Consolidated
2022
$
Restated
2021
$
1,800,000
(691,837)
451,036
1,559,199
1,559,199
-
-
-
-
700,000
(269,048)
124,657
577,609
1,134,000
(322,951)
165,207
976,256
3,500,000
(996,762)
234,089
2,737,327
4,291,192
5,850,391
-
-
-
-
-
1,800,000
(691,837)
355,901
1,464,064
700,000
(269,048)
109,660
540,612
1,134,000
(322,951)
116,397
927,446
3,500,000
(996,762)
83,441
2,586,679
5,518,801
(i)
The Company has four series of unsecured Convertible Notes outstanding for a total of $7,134,000.
Series 6: 18,000,000 Notes issued at 10 cents on 17 November 2017 for a total of $1,800,000
Series 7: 7,000,000 Notes issued at 10 cents on 27 February 2019 for a total of $700,000
Series 8: 22,680,000 Notes issued at 5 cents on 19 January 2020 for a total of $1,134,000
Series 9: 35,000,000 Notes issued at 10 cents on 13 April 2021 for a total of $3,500,000
Each series of Convertible Note has the following terms:
•
• Convertible on a 1 for 1 basis into ordinary shares in the company at any time prior to the
Interest is payable at 10% per annum every six months after the issue date;
maturity date at the option of the note holder;
•
•
•
Redeemable for cash in full after 5 years, if not converted;
Unsecured but rank ahead of shareholders; and
Protected for reorganisation events such as bonus issues and share consolidations.
Nagambie Resources Limited | 2022 Annual Report | Page 38
Notes to the Financial Statements
17. Borrowings continued
On the issue of the convertible notes the fair value of the liability component is determined using a market rate for
an equivalent non-convertible bond and this amount is carried as a non-current liability on the amortised cost basis
until extinguished on conversion or redemption. The increase in the liability due to the passage of time is
recognised as a finance cost. The remainder of the proceeds are allocated to the conversion option that is
recognised and included in shareholders equity as a convertible note reserve, net of transaction costs. The carrying
amount of the conversion option is not remeasured in the subsequent years. The corresponding interest on
convertible notes is expensed to profit or loss.
18. Provisions
Current
Employee benefits
Non-current
Employee benefits
Total provisions
19. Commitments
Consolidated
2022
$
2021
$
51,420
47,522
28,310
23,063
79,730
70,585
(a) Planned exploration expenditure
The amounts detailed below are the minimum expenditure required to maintain ownership of the current
tenements held. An obligation may be cancelled if a tenement is surrendered.
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
1,099,260
2,087,949
1,174,240
4,546,449
1,301,055
2,909,687
-
4,210,092
(b) Property acquisition with deferred settlement
As noted in the 2021 Annual Financial Report the company is in the process, via its wholly owned subsidiary
Nagambie Developments Pty Ltd, of purchasing a farming property in the Nagambie area. Unless settlement is
further deferred by agreement with the vendor, the balance due on or before the 15 October 2022 will be
$1,513,488.
The land as an asset and the balance due at settlement as a liability have not been brought to account since control
and the title will not pass until settlement.
20. Contingent Liabilities
Apart from the matter discussed in Note 9 the group has no contingent liability as at 30 June 2022 (2021: Nil).
Nagambie Resources Limited | 2022 Annual Report | Page 39
Notes to the Financial Statements
21. Financial instruments
The board of directors is responsible for monitoring and managing the financial risk exposures of the group, to which
end it monitors the financial risk management policies and exposures and approves financial transactions and reviews
related internal controls within the scope of its authority. The board has determined that the only significant financial
risk exposures of the group are liquidity risk and market risk. Other financial risks are not significant to the group due
to the following:
−
−
−
−
−
−
It has no foreign exchange risk as all of its account balances and transactions are in Australian Dollars;
It has no significant outstanding receivable balances that have a credit risk;
Its mining operations are in the exploration phase and therefore have no direct exposure to movements in
commodity prices;
All of the interest bearing instruments are held at amortised cost which have fair values that approximate their
carrying values since all cash and payables (except for convertible notes refer note 17) have maturity dates within
one financial year. Term deposits on environmental bonds and convertible notes have interest rate yields
consistent with current market rates;
All of the financing for the group is from equity and convertible note instruments, and
The group has no externally imposed capital requirements with the exception of an ASX requirement to not issue
more than 25% of its share capital through a placement in a 12-month period.
(a) Categories of financial instruments
Financial assets
Cash and cash equivalents
Receivables
Equity investments at fair value
Financial liabilities
Lease liabilities
Trade and other payables
Borrowings
Consolidated
2022
$
127,211
33,967
220,074
2021
$
1,359,055
76,298
2,039,706
62,075
691,135
5,850,391
316,716
359,250
5,518,801
(b) Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate
liquidity risk management framework for the management of the group’s funding and liquidity management
requirements. The group manages liquidity risk by maintaining sufficient cash balances to meet obligations as and
when they fall due.
The following tables detail the company’s and the group’s remaining contractual maturity for its financial liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on
which the group can be required to pay. The table includes both interest and principal cash flows.
Nagambie Resources Limited | 2022 Annual Report | Page 40
Notes to the Financial Statements
21. Financial instruments (continued)
Consolidated
liabilities
Interest
rate
%
Less than 1
month
$
1-3 months
$
3+ months
to 1 year
$
1-5 years
$
5+ years
$
2022
Trade and other payables
Lease liabilities
Borrowings
2021
Trade and other payables
Lease liabilities
Borrowings
10.0
10.0
10.0
10.0
(c) Market risk
501,346
12,210
-
513,556
103,789
24,010
-
127,799
112,104
37,243
-
149,347
77,685
12,622
1,559,199
1,798,853
24,037
48,020
-
72,057
231,423
182,610
-
414,033
-
-
4,491,192
4,491,192
-
62,076
5,518,801
5,580,877
-
-
-
-
-
-
-
-
The group is exposed to price risk in relation to equity investments which it holds in Mawson Gold Limited. These
shares are listed on the Toronto Stock Exchange and the price will fluctuate. The following table shows the impact
of a 50% change in the price of those listed securities.
%
change
Average price increase
Effect on
profit
before tax
Effect on
equity
Average price decrease
%
change
Effect on
profit before
tax
Effect on
equity
+50%
Nil
$110,037
-50%
Nil
($110,037)
Shares in Mawson
Gold Limited
22. Share-based payments
The group has an ownership-based remuneration scheme for executives (including executive directors) of the group.
In accordance with the provisions of the scheme, as approved by shareholders at a previous annual general meeting,
executives with the company may be granted options to purchase parcels of ordinary shares at an exercise price
determined at the discretion of the board of directors. Each executive share option converts into one ordinary share
of Nagambie Resources Limited on exercise. No amounts are paid or payable by the recipient on receipt of the option.
The options carry neither right to dividends nor voting rights. Options may be exercised at any time from the date of
vesting to the date of their expiry. The number of options granted is at the discretion of the board of directors. The
options granted expire five years after their issue, or one month after the resignation of the executive, whichever is
the earlier. The total of options on issue is 75,450,000 (2020: 75,300,000). Of these 23,450,000 (2020: 27,300,000)
have been issued to executives and employees and the balance of 52,000,000 (2020: 48,000,000) have been issued
to directors and key management personnel.
Information with respect to the number of all options granted including executive options is as follows.
Balance at beginning of period
granted
exercised
lapsed
Balance at end of period
30 June 2022
30 June 2021
Number of
options
75,300,000
14,650,000
-
(14,500,000)
75,450,000
Exercise price
11.4 cents
10 cents
Number of
options
72,450,000
14,150,000
-
(11,300,000)
75,300,000
Exercise price
10 cents
10 cents
Nagambie Resources Limited | 2022 Annual Report | Page 41
Notes to the Financial Statements
22. Share-based payments (continued)
Options on issue at the end of the reporting period
Number of
options
13,750,000
1,000,000
4,500,000
10,500,000
2,000,000
14,900,000
14,150,000
14,650,000
75,450,000
Grant date
Vesting date
Expiry date
Exercise price
24/11/2017
20/12/2017
22/8/2018
23/11/2018
27/2/2019
29/11/2019
1/12/2020
26/11/2021
24/11/2017
20/12/2017
22/8/2018
23/11/2018
27/2/2019
29/11/2019
1/12/2020
26/11/2021
24/11/2022
20/12/2022
22/8/2023
23/11/2023
27/2/2024
29/11/2024
1/12/2025
26/11/2026
10 cents
14.1 cents
12.6 cents
10.8 cents
12.0 cents
10.0 cents
10.0 cents
11.4 cents
Fair value at
grant date
2.80 cents
2.80 cents
3.90 cents
3.90 cents
3.90 cents
2.85 cents
4.04 cents
4.97 cents
(i)
(ii)
Exercised during the financial year
There were no options exercised during the financial year
Equity-settled employee benefits reserve
The equity-settled employee benefits reserve arises on the grant of share options to executives and
senior employees under the employee share option plan. Amounts are transferred out of the reserve and
into issued capital when the options are exercised.
(iii)
There are no vesting conditions for the above options
The weighted average fair value of the share options granted during the financial year is 4.04 cents (2020: 3.90 cents).
Options were priced using a Binomial option valuation model. Where relevant, the expected life used in the model has
been adjusted based on management’s best estimate for the effects of non-transferability, exercise restrictions
(including the probability of meeting market conditions attached to the option), and behavioural considerations.
Expected volatility is based on the historical share price volatility over the past 3 years. The options may be exercised
early, but not before vesting date.
Inputs into the valuation model
Grant date
Options Issued
Share price at grant date
Exercise price
Expected volatility
26/11/2021
14,650,000
7.6 cents
11.4 cents
95.0%
23. Key Management personnel compensation
Short-term employee benefits
Post-employment benefits
Movement in Accrued Leave
Share-based payment
Option life
Dividend yield
Risk free interest rate
Expiry date
5 years
Nil
0.64%
26/11/2026
Consolidated
2022
$
420,380
20,062
5,643
596,676
1,042,761
2021
$
456,230
19,000
15,297
403,970
894,497
Nagambie Resources Limited | 2022 Annual Report | Page 42
Notes to the Financial Statements
24. Subsidiaries
Name of entity
Parent entity
Nagambie Resources Limited
Subsidiaries
Nagambie Developments Pty Ltd
property owning entity
Nagambie Landfill Pty Ltd
no business activity conducted during the year
25. Related party transactions
Country of incorporation
Ownership interest
2021
2022
%
%
Australia
-
-
Australia
Australia
100
100
100
100
Transactions with key management personnel and related parties
There were no related party transactions undertaken during the year other than disclosures already identified
elsewhere in this report.
26. Segment information
The group operates in one principal geographical area – in Australia. The group carries out exploration for, and
development of gold associated minerals and construction materials in the area. During the year the group earned
$167,503 (2021 $169,341) of its rental income described in note 4 from the Department of Defence. There was no
other major reliance on any other customer.
27. Remuneration of auditors
Auditor of the parent entity--
Audit or review of the financial report
Other non-audit services
The auditor of Nagambie Resources Limited is William Buck
Consolidated____
2022
$
2021
$___
34,000
-
34,000
28,500
-
28,500
28. Subsequent events
On 25 July 2022, the Company redeemed 18,000,000 Series 6 Convertible Notes with a face value of $1,800,000 into
new Series 10 Convertible Notes with a face value of $1,800,000, alongside issuing 15,712,500 convertible notes to
investors who are sophisticated, experienced or professional investors for the purposes of section 708 of the
Corporations Act, in respect of $1,257,000 in funding received (First Round Series 10 Convertible Notes).
Further to the 25 July 2022 issue of $3.057 million Series 10 Convertible Notes to sophisticated and professional
investors, on 17 August 2022 the Company issued an additional 2,500,000 Series 10 Convertible Notes with a face
value of $200,000 or $0.08 each to a sophisticated and professional investor for the purposes of section 708 of the
Corporations Act (Second Round Series 10 Convertible Notes). The additional fund will be used to continue the
successful drilling program for Costerfield-Mine-style, antimony-gold mineralisation at the Nagambie Mine
and to add working capital.
Nagambie Resources Limited | 2022 Annual Report | Page 43
29. Parent entity disclosures
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Issued capital
Options reserve
Accumulated losses
Convertible notes reserve
Total equity
Loss
Total comprehensive income
Notes to the Financial Statements
Parent
2022
$
381,252
15,604,601
15,985,853
2,343,630
4,319,502
6,663,132
27,947,736
2,793,167
(21,590,667)
2,280,598
10,495,681
(2,386,893)
(623,852)
2021
$
3,475,059
14,647,590
18,122,649
522,530
7,157,063
7,679,593
27,254,033
2,562,295
(19,035,945)
2,280,598
10,469,052
(1,762385)
(1,305,901)
There were no contingent liabilities and commitments of the parent entity not otherwise disclosed in the consolidated
financial statements.
Nagambie Resources Limited | 2022 Annual Report | Page 44
Directors’ Declaration
Directors’ Declaration
In the Directors opinion:
(a)
(b)
(c)
The financial statements and notes are in accordance with the Corporations Act 2001, including:
(i) Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance for
the year ended on that date; with Accounting Standards, the Corporations Regulations 2001 and other
mandatory, professional reporting requirements; and
(ii) Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory,
professional reporting requirements.
There are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable; and
At the date of this declaration there are reasonable grounds to believe that the members of the group are able
to meet their obligations as and when they become due and payable.
Note 2 confirms that the financial statements also comply with International Reporting Standards as issued by the
International Accounting Standards Board.
The directors have been given the declarations required by s.295A of the Corporations Act 2001
Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.
On behalf of the directors
Michael W Trumbull
Executive Chairman
Melbourne
28 September 2022
Nagambie Resources Limited | 2021 Annual Report | Page 45
Independent Auditor’s Report
Independent Auditor’s Report
Nagambie Resources Limited | 2021 Annual Report | Page 46
Independent Auditor’s Report
Independent Auditor’s Report
Nagambie Resources Limited | 2021 Annual Report | Page 47
Independent Auditor’s Report
Independent Auditor’s Report
Nagambie Resources Limited | 2021 Annual Report | Page 48
Independent Auditor’s Report
Independent Auditor’s Report
Nagambie Resources Limited | 2021 Annual Report | Page 49
Independent Auditor’s Report
Independent Auditor’s Report
Nagambie Resources Limited | 2021 Annual Report | Page 50
Additional ASX Information
Additional ASX Information
Additional information required by the ASX Ltd and not shown elsewhere in this report is as follows.
The information was current as at 24 October 2022.
Number of holders of equity securities
Ordinary share capital
528,671,439 fully paid ordinary shares are held by 1,105 individual shareholders. All the shares carry
one vote per share.
Options
75,450,000 options are held by 18 individual optionholders. Options do not carry a right to vote.
Unsecured convertible notes
105,392,500 unsecured convertible notes are held by 65 individual noteholders. The notes do not
carry a right to vote.
Buy-Back
The company does not have a current on-market buy-back.
Distribution of holders of ordinary shares
Holding Ranges
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Totals
Holders
Total Units
% Issued Share Capital
66
80
124
510
325
1,105
4,937
292,776
1,067,239
21,509,946
505,796,541
528,671,439
0.00%
0.06%
0.20%
4.07%
95.67%
100.00%
The number of holders with an unmarketable parcel was 167, holding a total of 425,000 amounting to 0.08% of the
Issued Share Capital.
Substantial Shareholders
Shareholder
PPT Nominees Pty Ltd
Southern Cross Gold Limited
Adare Manor Pty Ltd
Continue reading text version or see original annual report in PDF format above