And Controlled Entities
ABN: 83 127 620 482
ANNUAL REPORT
For the Year Ended 30 June 2020
For personal use only
CONTENTS
CORPORATE DIRECTORY
CHAIRMAN’S LETTER
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL INFORMATION FOR PUBLIC LISTED COMPANIES
1
2
3
21
22
23
24
25
26
51
52
57
Nelson Resources Limited and Controlled Entities
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CORPORATE DIRECTORY
DIRECTORS
Warren Hallam
Adam Schofield
Stephen Brockhurst
SECRETARY
Stephen Brockhurst
Non-Executive Chairman
Executive Director
Non-Executive Director
REGISTERED AND BUSINESS OFFICE
Level 11, London House
216 St Georges Terrace
Perth WA 6000
Telephone: +61 8 9481 0389
Facsimile: +61 8 9463 6103
WEBSITE & EMAIL
www.nelsonresources.com.au
info@nelsonresources.com.au
STOCK EXCHANGE LISTINGS
Australian Securities Exchange
ASX Code: NES
AUDITORS
Criterion Audit Pty Ltd
Suite 1 GF
437 Roberts Road
Subiaco WA 6008
BANKER
National Australia Bank
1232 Hay Street
West Perth WA 6005
LEGAL ADVISORS
Price Sierakowski
Level 24, St Martin’s Tower
44 St Georges Terrace
Perth WA 6000
SHARE REGISTRY
Automic Registry Services Pty Ltd
Level 2
267 St Georges Terrace
Perth WA 6000
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CHAIRMAN’S LETTER
Dear Shareholders
It is with pleasure that I present you the third Annual Report of Nelson Resources Limited as a
listed public company.
In what has been a challenging 6 - 12 months for many Junior Explorers, the Company has
managed to achieve several successes:
The Company has completed a successful and highly oversubscribed Rights Issue and
Placement to existing and new shareholders raising $2.355m after costs.
The Company has completed its planned reconsolidation of the Woodline Project.
The Company has finalised an 18-month review of the large Woodline data set it
acquired and has generated an exploration model for Woodline that will guide its future
exploration programs.
The Company has delineated its exploration programs for the next 6 -12 months which
it believes will produce significant exploration success.
Since listing on the ASX in December of 2017 with 20 km² of tenure, the Company has delivered
on its exploration commitments across the Company’s portfolio of gold assets in the prolific
eastern goldfields’ region of WA.
The Company has subsequently built a significant and enviable 956 km² tenement holding. Within
this holding the Company has 934 km² of tenure in the Albany Fraser Range and more specifically
has re-consolidated 828 km² of the exciting Woodline Project that was previously explored by
SIPA Resources, Newmont and MRG Resources.
The Woodline Project is located north of the Fraser Range and is at the southern end of the
interpreted Tropicana belt. Total exploration expenditure to date by previous explorers, including
Nelson Resources, is approximately $14m.
The exploration to date has an identified >20km long gold geochemical surface and bedrock
anomaly that is placed in the same structural setting as the Tropicana Gold Mine which is 350km
north east. The Company believes the Woodline Project has the potential to deliver several
significant gold resources including the potential for a Tropicana scale deposit and looks forward
to continuing the exceptional work undertaken to date.
The Tempest Project was acquired by the Company during the year and has an exciting extension
of the gold bearing paleochannel identified in drilling at the adjoining IGO/Rumble Thunderstorm
project. The Company anticipates the base metals potential at this project to also be of significant
interest.
The Yarri project which lies 12km north of Carosue Dam has had considerable work completed by
the Company. This project has delivered some significant gold intercepts, however further work
is required to determine the resource potential of the project.
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CHAIRMAN’S LETTER continued
The Fortnum project lies 14km southwest of the Fortnum Mining center and has some exciting
historical drilling. The Company is in discussions with a potential JV partner for this project.
I commend our team managed by Adam Schofield for their efforts during the year and the
demeanor and care for with which they have looked after shareholder’s funds and for their
methodical approach to project building and exploration.
I look forward to an exciting year ahead where our Woodline Project and Tempest Project will be
the focus of our attention.
To you, our shareholders I thank you for your patience and for the support that you have placed
in the Board and our team and we look forward to working together and remain focused on
delivering shareholder value through our exploration success.
____________________
Warren Hallam
Non-Executive Chairman
12 August 2020
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DIRECTORS’ REPORT
Your Directors submit the annual financial report of the Consolidated Entity for the year ended
30 June 2020.
DIRECTORS
The names of Directors who held office during or since the end of the year:
Warren Hallam
Adam Schofield
Stephen Brockhurst
Non-Executive Chairman
Executive Director
Non-Executive Director
COMPANY SECRETARY
Stephen Brockhurst
Company Secretary
PRINCIPAL ACTIVITIES
The principal activities of the Consolidated Entity during the year were the exploration and
development of natural resources. There have been no other significant changes in the activities
of the Consolidated Entity during the year other than matters noted in this report.
REVIEW OF RESULTS
The loss after tax for the year ended 30 June 2020 was $723,634 (2019: $1,079,273).
DIVIDENDS
No dividends were paid or declared during the year ended 30 June 2020 (2019: nil).
CORPORATE
Funding
On 14 February 2020 the Company issued 7,228,916 shares at $0.0415 each raising $300,000 plus
3,614,458 unquoted free attaching options exercisable at $0.08 each, expiring 14 February 2022
as part of a placement.
On 9 June 2020 the Company announced a renounceable entitlements issue for the offer of one
new share (at a price of $0.038 each) for every one existing share held on 12 June 2020, with one
attaching quoted option, exercisable at $0.08 and expiring 24 months from issue, for every two
new shares subscribed. On 3 July 2020 the Company announced that the offer had closed, raising
$2,007,226. On 7 July 2020 the Company announced that 52,821,762 shares along with
26,410,881 free attaching options exercisable at $0.08 expiring 7 July 2022 had been issued.
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DIRECTORS’ REPORT continued
On 7 July 2020 the Company announced that a placement had been undertaken raising $348,027
from the issue of 9,158,618 shares along with 4,579,275 free attaching options exercisable at
$0.08 expiring 7 July 2022.
COVID-19 Impacts
While the impact of COVID-19 on the Company's operations was initially severe, the easing of
intrastate restrictions has minimised its impact. The Company continues to follow all State
Government directives in respect to COVID-19 and the Company’s operations.
OPERATIONS
Figure 1 – Project Locations
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DIRECTORS’ REPORT continued
Project Activity:
Nelson Resources has completed the following work at each of its projects during the year:
Woodline Project (Grindall-Redmill-Harvey & Socrates)
The Woodline Project lies 140km South East of Kalgoorlie and is halfway between the Trans
Australia Rail line and the Eyre Highway. The Woodline Project is made up of the Grindall, Redmill,
Harvey & Socrates Projects which make up 828km² of premium Tenure (Figure 2)
During the year, the Company completed its planned reconsolidation of the Woodline Project and
finalised an 18-month review of the large Woodline data set it acquired. This has generated an
exploration model for the Woodline Project that will guide its future exploration programs.
The Woodline project has a significant number of distinct exploration opportunities and these are
shown below with the planned work programs:
Cundeelee Fault (Tropicana Scale Potential)
The Woodline Project has 45km of the Cundeelee fault within its tenure.
This fault is the boundary between the Albany Fraser Oregon and the Yilgarn Craton. There is an
already identified >20km gold geochemical and bedrock anomaly which is interpreted to be in the
hanging wall of the Northern Foreland of the Albany Fraser Oregon which is the same structural
setting as the Tropicana Gold Mine.
There is limited RC drilling in this anomaly and the Company intends to conduct approximately
3,000 meters of RC drilling within the anomaly during the remainder of 2020. This drilling is to
follow up on significant gold intercepts obtained from Sipa/Newmont drilling at Grindall and
Redmill and is intended to demonstrate the presence of a larger gold system and the potential for
a large Tropicana scale discovery.
Prior to commencing this drilling, the Company will conduct the following geophysics at both
Grindall and Redmill to help guide drilling by improving the structural understanding of the
localised geology:
•
•
•
4 km² Photogrammetry Surveys for Centimetre level accurate DEM data;
4 km² Ultra High-Resolution Ground Magnetic Surveys for structural data;
4 km² Passive Seismic Surveys for cover mapping and structural data.
This will be followed up with approximately 3,000 meters of RC drilling at Grindall and Redmill to
follow up on existing targets and those identified by the geophysics.
Additional to the above, the Company will conduct the below geophysics over the >20 km long
gold geochemical and bedrock anomaly to generate targets for future drilling:
•
•
•
120 km² Photogrammetry Surveys for Centimetre level accurate DEM data;
120 km² High-resolution UAV Aero Magnetic Surveys for structural data;
120 km² UGV Passive Seismic Surveys for cover mapping and structural data.
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DIRECTORS’ REPORT continued
The Company anticipates it will identify the structural controls for the gold system it is targeting
with the above programs.
Claypan Fault (Socrates)
The Socrates project (12km²) is the Company’s original Woodline project and has had
approximately 8400 meters of RC drilling done.
The bulk of this drilling is on a mineralised zone that currently extends for approximately 450m
and is open on strike and down dip.
The best gold intercepts currently are:
1m @ 142 g/t Au
192m @ 0.5 g/t Au
8m @ 3.53 g/t Au
25m @ 2.06 g/t Au
The Company plans to conduct a geophysics program as shown below.
•
•
144 km² Photogrammetry Surveys for Centimetre level accurate DEM data;
144 km² High-resolution UAV Aero Magnetic Surveys for structural data.
This will better map three parallel potentially gold bearing structures that have been identified by
low resolution magnetics and show gold anomalism at surface.
This will be followed up with approximately 1500 meters of RC drilling and 1500m of Aircore
drilling to follow up on targets identified by the geophysics and to show extension of the existing
strike. The Company believes it will be in a position to declare a resource at Socrates in 2021.
Keith-Kilkenny Fault (Norseman - Wiluna Greenstone Belt)
There is approximately 30km of unexplored Greenstones within the Woodline tenure that has had
little to no exploration done.
The Company plans to conduct a geophysics program as shown below.
•
•
180 km² Photogrammetry Surveys for Centimetre level accurate DEM data;
180 km² High-resolution UAV Aero Magnetic Surveys for structural data.
Subject to the results of the geophysics the Company may drill approximately 3000m of Aircore
to follow up on any targets that look promising for both Gold and Base Metals.
The above exploration programs may vary as the results of the geophysics programs are reviewed.
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DIRECTORS’ REPORT continued
Figure 2. 20km Gold Geochemical Anomaly with Woodline tenure shown (Granted & Pending)
Tempest Project
The Tempest project is located 250km ESE of Kalgoorlie and 90km NE from Nova-Bollinger Mine.
It has an area of 105 km² and borders the IGO / Rumble Thunderstorm JV project (Figure 3). Recent
drilling at the Thunderstorm JV includes an exceptional intercept of 25m @2.42g/t Au at the
Themis Prospect and 4m @ 3.8g/t Au at the Pion Prospect (ASX Announcement Rumble Resources
1st July 2019).
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DIRECTORS’ REPORT continued
The project is located in the Fraser Complex of the Proterozoic Albany-Fraser Orogen and is east
of the Archean Yilgarn Craton. Tertiary fluvio-marine sediments associated with the Eucla Basin
cover much of the region. The Proterozoic geology is characterized by granulite facies, felsic to
mafic gneisses and felsic and mafic schists and intruded granites.
The Tempest project has the potential to host both gold and base metal resources and historical
exploration is both limited and early stage.
Historical work done is unrelated to the anticipated extension of the paleochannel identified at
the neighbouring Thunderstorm project.
Within the remainder of 2020, the Company intends to conduct the following Geophysics
programs:
•
•
•
24 km² Photogrammetry Surveys for Centimetre level accurate DEM data;
24 km² Ultra High-Resolution Ground Magnetic Surveys for structural data;
24 km² Passive Seismic Surveys for cover mapping and structural data.
This work is intended to map the extent of the paleochannel and define RC drill targets for 2021.
Additionally, the Company may look to fly an EM survey to potentially identify and base metal
conductors as IGO is currently conducting a large Moving Loop EM program at the Thunderstorm
project adjacent to the Tempest project.
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DIRECTORS’ REPORT continued
Figure 3. Tenement E28/2805 in relation to Rumble’s Thunderstorm JV with IGO
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DIRECTORS’ REPORT continued
Yarri Project
The Yarri Project lies 160km North East of Kalgoorlie on Edjudina Station and is 30km North of
Saracens Carosue Dam Mine and 7.5km East of the Porphyry Mine. Nelson’s Yarri project consists
of three prospects to the North and East of the historic Yarri State Battery site. The Company’s
main focus is on the Wallaby line of workings immediately to the East of Yarri, where recent
drilling by the Company has returned a number of high grade encouraging drill intersections.
The Wallaby lodes were mined from 1902 to 1914 and from 1934 to 1940 producing 22,000
ounces of gold. The maximum depth of the old workings was to a shallow 35 metres (100 feet)
below surface.
The Great Banjo lodes were mined between 1903 and 1905 producing 84.2 ounces of gold from
129 tonnes of ore at an average grade of 20.3g/t.
The Gibberts lodes were also mined between 1903 and 1905 and produced 37.5 ounces from 64.5
tonnes at an average grade of 18.1g/t. No production is documented since this time.
In the region, the Porphyry Mine is located approximately 7.5 kilometres to the West in similar
host rocks. It has amassed a resource of approximately 880,000 ounces of gold (production plus
defined resource estimates obtained from available literature).
In May the Company signed a 3-month option agreement with Haddison Limited for the potential
sale of the Yarri Project. Haddison has withdrawn from the option agreement and the Company
is seeking other sales and development opportunities.
Fortnum Project
The Fortnum project tenement number E52/3695 totals 21km². The Project is located within the
Peak Hill Mineral Field, 140km north-west of Meekatharra and approximately 14km southwest of
the Fortnum Mining center, in the locality of Billara Bore. The geology of the tenure consists of a
fault bounded package of schists derived from the Narracoota and Labouchere Formation
constrained by the Despair Granite to the east and Yarlarweelor Gneiss complex to the West.
Thin surficial cover extends over the area, with strong insitu regolith development in the eastern
parts of the schist, adjacent to the Despair Granite.
There are four gold mineralisation prospects on the tenure. Billara A, Billara North and Billara
South are associated with quartz veining in highly sheared mafic schist adjacent to the contact
with the Despair Granite. Billara D is associated with quartz veins in a NNE-trending, biotiterich
schist, the Despair Granite, analogous to the Wilthorpe gold mine, 9km to the south. The Company
is in discussions regarding a potential Joint Venture on the Fortnum Project.
Happy Jack
The Company has a retained 1% NSR on any future gold production on this tenement.
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DIRECTORS’ REPORT continued
The Company confirms that it is not aware of any new information or data that materially affects
the exploration results included in this report.
Climate Risk
The Company acknowledges that climate change issues could constitute a risk to its operations
but has assessed the risks to be Low. The largest concern for the Company is water management
during its exploration activities. Most of the Company’s operations occur in areas with scarce
access to water and the Company believes that climate change could exacerbate this issue as
weather patterns potentially become less predictable. The Company’s approach is to be flexible
and adaptive in its response to manage this potential issue.
Key potential vulnerabilities
Extreme weather events (floods, cyclonic activity, storm activity and bushfires) which
could impede exploration ability; affect occupational health and safety; impact supply
chains; damage infrastructure; and increase of unplanned water discharge.
Sea level rise might impact on the longer-term access to and viability of infrastructure.
water discharge
Legislation uncertainty or compliance changes due to climate-related impacts.
DIRECTORS’ QUALIFICATIONS AND EXPERIENCE
The Directors’ qualifications and experience are set out below
Current Directors
Director
Warren Hallam
Qualifications
Position
Appointment Date
Resignation Date
Length of Service
Biography
Current ASX Listed
Directorships
Former ASX Listed
Directorships
Details
MSc (Min. Econ), BAppSci (Metallurgy), GradDip (Fin)
Independent Non-Executive Chairman
1 February 2019
N/A
1 year 5 months
Mr Hallam is a Metallurgist and a Mineral Economist and holds a
Graduate Diploma in Finance. Mr Hallam has considerable
technical, managerial and financial experience across a broad range
of commodities being predominantly copper, nickel, tin, gold and
iron ore.
Essential Minerals Limited
Westgold Resources Limited
Metals X Limited
Capricorn Metals Limited
Millennium Minerals Limited
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DIRECTORS’ REPORT continued
Adam Schofield
Qualifications
Position
Appointment Date
Resignation Date
Length of Service
Biography
Current ASX Listed
Directorships
Former ASX Listed
Directorships
Stephen Brockhurst
Qualifications
Position
Appointment Date
Resignation Date
Length of Service
Biography
Current ASX Listed
Directorships
Former ASX Listed
Directorships
COMPANY SECRETARY
Dip (MechEng)
Executive Director
7 July 2016
N/A
3 years, 11 months
Mr Schofield is an Executive Director with over 21 years’ experience
in the resources sector in Africa and Australia. He is a Mechanical
Engineer with significant experience in conducting feasibility studies
and taking projects from feasibility stage into operations. Mr
Schofield has an extensive experience in gold, mineral sands, iron
ore and copper.
N/A
N/A
BCom
Independent Non-Executive Director
1 February 2019
N/A
1 year 5 months
Mr Brockhurst has over 19 years’ experience in the finance and
corporate advisory industry and has been responsible for the due
diligence process and preparation of prospectuses on a number of
initial public offers. His experience includes corporate and capital
structuring, corporate advisory and company secretarial services,
capital raising, ASX and ASIC compliance requirements. Mr
Brockhurst has served on the board and acted as Company
Secretary for numerous ASX listed companies. He is currently
Company Secretary of Jacka Resources Limited, Galena Mining
Limited and Kingfisher Mining Limited.
Estrella Resources Limited
Kingwest Resources Limited
Roto-Gro International Limited
Company Secretary
Stephen Brockhurst
Position
Appointment Date
Resignation Date
Details
Company Secretary
22 June 2017
N/A
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DIRECTORS’ REPORT continued
MEETINGS OF DIRECTORS
The number of meetings held during the year and the number of meetings attended by each
Director was as follows:
Number of Meetings Held
Number of Meetings Attended:
Warren Hallam
Adam Schofield
Stephen Brockhurst
Board Audit & Risk
Management
Committee
2
6
Nomination &
Remuneration
Committee
2
6
6
6
2
2
2
2
2
2
The Consolidated Entity does not have an Audit, Remuneration or Nomination Committee with
the full Board carrying out the functions that would otherwise be dealt with by such Committees.
All Directors were eligible to attend all Board Meetings held when they were in office.
SHARE OPTIONS
As at the date of this report, there were 7,614,458 unquoted options of varying exercise prices
and expiry dates and 30,990,156 quoted options exercisable at $0.08 expiring 7 July 2022 over
ordinary shares on issue that have been issued.
SHARES ISSUED AS A RESULT OF THE EXERCISE OF OPTIONS
No shares as a result of the exercise of the options were issued as at the date of this report.
DIRECTORS’ INTERESTS AND BENEFITS
The movement during the reporting period in the number of fully paid ordinary shares of the
Company held directly, indirectly or beneficially, by each Director or key management personnel,
including their personally-related entities is as follows:
Director
No. Shares
Held at 30
June 2019
On-
Market
Purchases
Exercise
of
Options
Other
Changes
No. Shares
Held at 30
June 2020
No. Shares
Held at Date
of this Report
-
-
Warren Hallam
Directly
Indirectly
Adam Schofield
Directly
Indirectly
Stephen Brockhurst
Directly
Indirectly
Total
75,000
-
-
-
75,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,315,788
75,000
-
-
-
75,000
1,465,789
175,000
-
1,315,789
4,272,366
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DIRECTORS’ REPORT continued
The movement during the reporting period in the number of options over ordinary shares of the
Company held directly, indirectly or beneficially, by each Director or key management personnel,
including their personally-related entities is as follows:
Director
No. Options
Held at 30
June 2019
Grant of
Options
Exercise
of
Options
Other
Changes
No.
Options
Held at 30
June 2020
No. Options
Held at Date
of this
Report
-
-
Warren Hallam
Directly
Indirectly
Adam Schofield
Directly
Indirectly
Stephen Brockhurst
Directly
Indirectly
Total
2,537,500
-
-
-
2,537,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
657,894
(37,500)1
-
2,500,000
-
3,195,395
87,500
-
-
(37,500)
-
-
2,500,000
-
657,895
4,598,684
The movement during the reporting period in the number of performance rights of the Company
held directly, indirectly or beneficially, by each Director or key management personnel, including
their personally-related entities is as follows:
Director
No.
Performance
Rights Held
at 30 June
2019
Issue of
Performance
Rights
Conversino
of
Performance
Rights
Other
Changes
No.
Performance
Rights Held
at 30 June
2020
No.
Performance
Rights Held
at Date of
this Report
-
-
Warren Hallam
Directly
Indirectly
Adam Schofield
Directly
Indirectly
Stephen Brockhurst
Directly
Indirectly
Total
1,500,000
-
-
-
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
-
1,500,000
-
-
-
1,500,000
-
-
1,500,000
1 Expired 30 September 2019.
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DIRECTORS’ REPORT continued
REMUNERATION REPORT
Introduction
The Directors present the Remuneration Report for the Consolidated Entity for the year ended 30
June 2020. This Remuneration Report forms part of the Directors’ Report in accordance with the
requirements of the Corporations Act 2001 and its regulations. For the purposes of this report,
Key Management Personnel (“KMP”) of the Consolidated Entity are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of
the Company and the Consolidated Entity, directly or indirectly, including any director (whether
executive or otherwise) of the Parent Entity.
Remuneration Policy
The Company Constitution provides that the remuneration of non-executive Directors will be not
more than the aggregate fixed sum determined by a general meeting. The aggregate
remuneration for non-executive Directors has been set at an amount not to exceed $250,000 per
annum. The remuneration of executive Directors will be fixed by the Directors and may be paid
by way of fixed salary or consultancy fee.
Remuneration Report Approval at FY2020 AGM
The remuneration report for the period ended 30 June 2020 will be put to shareholders for
approval at the Company’s AGM which will be held during September 2020.
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DIRECTORS’ REPORT continued
Details of Remuneration
Details of the remuneration of the Directors, other key management personnel of the
Consolidated Entity and specified executives of the Consolidated Entity for the years ended 30
June 2020 and 30 June 2019 respectively are set out on the following tables:
Fixed
STI
LTI
Total
Proportion of
Remuneration
Salary
fees
and
leave
$
Other
Fees
$
Term-
ination
Payment
$
Super-
annuation
$
Incentive
Payments
$
FV
Securities
$
Fixed
%
STI
%
$
LTI
%
Non-
Executive
Directors
Warren
Hallam2
Peter Cook3
Stephen
Brockhurst4
Brett Clark6
Total Non-
Executive
Directors
Executive
Directors
Adam
Schofield
Total
Executive
Directors
Year
2020
2019
2020
2019
2020
2019
2020
2019
2020
72,000
30,000
-
42,000
52,560
21,9005
-
28,000
124,560
2019
121,900
2020
2019
2020
164,250
143,7177
164,250
2019
143,717
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,840
2,850
-
3,990
-
-
-
2,660
6,840
9,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
78,840
32,850
-
45,990
52,560
21,900
-
30,660
131,400
100%
100%
-
100%
100%
100%
-
100%
100%
131,400
100%
-
223,583
-
164,250
367,300
164,250
100%
39%
100%
223,583
367,300
39%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
61%
-
61%
2 Appointed 1 February 2019.
3 Resigned 1 February 2019.
4 Appointed 1 February 2019.
5 The contract was previously incorrectly classified as an employee agreements and has now been correctly classified
as a contractor arrangement.
6 Resigned 1 February 2019.
7 The contract was previously incorrectly classified as an employee agreements and has now been correctly classified
as a contractor arrangement.
Nelson Resources Limited and Controlled Entities
17
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DIRECTORS’ REPORT continued
Consultancy Agreements
Adam Schofield is engaged as an executive director pursuant to a consultancy agreement with the
Company. The consultancy agreement commenced on 1 April 2017 and will continue until it is
terminated in accordance with its terms. For his role as an executive director, the Company will
pay Adam Schofield a fee of $164,250 per annum (revised, effective 1 April 2019). In his role as
executive director, Adam Schofield will, among other things:
act with professional skill with a view to promoting, advancing and improving the business
of the Company;
implement strategic and tactical plans of the Company;
review and initiate continuous improvement in support and administrative functions;
use best endeavours to achieve the corporate objectives of the Company;
formulate strategies to promote and improve the financial performance of the Company;
and
advise the Board in relation to all relevant issues affecting the Company and its
performance.
Either party may terminate the agreement without cause by providing the other party with no
less than 3 months’ written notice. The Company may terminate the agreement by summary
notice to Adam Schofield with cause in circumstances considered standard for agreements of this
nature in Australia. The agreement is otherwise on terms and conditions considered standard for
agreements of this nature in Australia. The terms of the agreement were further modified
effective 1 July 2020, increasing the remuneration to $208,050 per annum.
Stephen Brockhurst is engaged as a non-executive director pursuant to a consultancy agreement
with the Company. The consultancy agreement commenced on 1 February 2019 and will continue
until it is terminated in accordance with its terms. For his role as a non-executive director, the
Company will pay Stephen Brockhurst a fee of $52,560 per annum.
Share Based Compensation
There was no share based compensation during the year.
No ordinary shares in the Company were provided as a result of an exercise of remuneration
options to Directors and other key management personnel of the Consolidated Entity in this or
the previous reporting period.
Related Party Transactions
Effective 1 March 2019 the Company entered into a sub-lease agreement with Kingfisher Mining
Limited (a company of which both Warren Hallam and Adam Schofield are directors) for the
occupancy of its premises. The agreement was terminated effective 1 April 2019.
End of Audited Remuneration Report.
Nelson Resources Limited and Controlled Entities
18
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DIRECTORS’ REPORT continued
ENVIRONMENTAL REGULATION
The Company is subject to significant environmental and monitoring requirements in respect of
its natural resources exploration activities. The Directors are not aware of any significant breaches
of these requirements during the year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
There are no likely development of which the Directors are aware of which could be expected to
significantly affect the results of the Company’s operations in subsequent financial periods not
otherwise disclosed in the ‘Principal activities’ and ‘Review of operations’ or the ‘Significant
events after the balance sheet date’ sections of the Directors’ report.
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company has agreed to indemnify all of the Directors of the Company for any liabilities to
another person (other than the Company or related body corporate) that may arise from their
position as Directors of the Company and its controlled entities, except where the liability arises
out of conduct involving a lack of good faith.
During the financial year the Company paid a premium in respect of a contract insuring the
Directors and officers of the Company and its controlled entities against any liability incurred in
the course of their duties 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.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to
bring proceedings on behalf of the Company, or to intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or
part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the
Court under section 237 of the Corporations Act 2001.
CORPORATE GOVERNANCE
The Board intends to set measurable objectives for achieving diversity, specifically including
gender diversity and will review and report on the effectiveness and relevance of these
measurable objectives. However, due to the current size of the Board and management, these
measurable objectives have not yet been set.
NON AUDIT SERVICES
Criterion Audit Pty Ltd was appointed as the Company’s auditor on 24 October 2016 and has not
provided any non-audit services to the Company since its appointment.
Nelson Resources Limited and Controlled Entities
19
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DIRECTORS’ REPORT continued
EVENTS SUBSEQUENT TO REPORTING DATE
There are no matters or circumstances have arisen since the end of the year which will
significantly affect, or may significantly affect, the state of affairs or operations of the reporting
entity in future financial periods other than the following:
On 7 July 2020 the Company announced that 52,821,762 shares along with 26,410,881
free attaching options exercisable at $0.08 expiring 7 July 2022 had been issued.
On 7 July 2020 the Company announced that a placement had been undertaken raising
$348,027 from the issue of 9,158,618 shares along with 4,579,275 free attaching options
exercisable at $0.08 expiring 7 July 2022.
On 7 July 2020 the Company paid a bonus of $50,000 to Adam Schofield as detailed in the
9 June 2020 renounceable entitlements issue prospectus.
On 12 August 2020 the Company announced that Haddison had withdrawn from the Yarri
project option agreement.
AUDITOR’S DECLARATION OF INDEPENDENCE
The auditor’s independence declaration for the year ended 30 June 2020 has been received and
is included within the financial statements.
This report is made in accordance with a resolution of Directors, pursuant to section 306(3) of the
Corporation Act 2001. Signed in accordance on behalf of the Directors.
____________________
Adam Schofield
Executive Director
12 August 2020
Nelson Resources Limited and Controlled Entities
20
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Criterion Audit Pty Ltd
ABN 85 165 181 822
PO Box 2138 SUBIACO WA 6904
Suite 1 GF, 437 Roberts Road
SUBIACO WA 6008
Phone: 6380 2555 Fax: 9381 1122
To The Board of Directors
Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
As lead audit director for the audit of the financial statements of Nelson Resources Limited and its controlled entities for
the year ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• any applicable code of professional conduct in relation to the audit.
Yours faithfully
ELIZABETH LOUWRENS CA
Director
CRITERION AUDIT PTY LTD
DATED at PERTH this 12th day of August 2020
Liability limited by a scheme approved under Professional Standards Legislation
For personal use only
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Revenue
Administration and other expenses
Accounting and audit fees
Consultancy fees
Depreciation: plant and equipment
Depreciation: right of use assets
Directors’ fees
Finance costs: lease liability
Finance costs: other
Reversal of (impairment) of receivables
Impairment of exploration expenditure
Legal fees
Marketing expenses
Occupancy expenses
Share based payments: options - Director
Share based payments: options - Employee
Share based payments: performance rights -
Director
Travel and accommodation expenses
Write-off of tenement expenses
Loss before tax
Income tax benefit/(expense)
Note
3
9
10
13
11
16
16
16
4
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
25,855
40,121
(177,350)
(125,637)
2,991
(86,042)
(47,560)
(175,650)
(1,435)
(2,025)
56,490
(26,371)
(19,102)
(36,000)
(34,111)
-
-
-
(28,700)
(48,987)
(723,634)
-
(277,055)
(125,179)
(23,025)
(64,788)
-
(170,118)
-
(1,405)
-
(12,256)
(12,872)
(37,309)
(30,652)
(159,833)
(95,900)
(63,750)
(19,053)
(26,199)
(1,079,273)
-
Net loss for the year from operations
(723,634)
(1,079,273)
Other comprehensive income
-
-
Total comprehensive loss for the year
(723,634)
(1,079,273)
Basic and diluted loss per share (cents)
5
(1.50)c
(2.37)c
The accompanying notes form part of these financial statements.
Nelson Resources Limited and Controlled Entities
22
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepaid expenses
Total Current Assets
Non-Current Assets
Plant and equipment
Right of use asset
Exploration and evaluation assets
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Liability for application money
Lease liability
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total Equity
Note
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
7
8
9
10
11
12
8
13
14
70,585
2,026,991
21,243
666,222
108,463
30,375
2,118,819
805,060
217,867
15,853
3,662,667
260,260
-
3,330,881
3,896,387
3,591,141
6,015,206
4,396,201
214,579
2,008,227
11,687
4,410
118,257
-
-
20,687
2,238,903
138,944
2,238,903
138,944
3,776,303
4,257,257
15
16
36,655,595
319,483
(33,198,775)
36,163,913
568,483
(32,475,141)
3,776,303
4,257,257
The accompanying notes form part of these financial statements.
Nelson Resources Limited and Controlled Entities
23
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Consolidated Entity
Balance at 1 July 2019
Securities issued during the
year
Equity issue expenses
Reversal of expired options
Loss for the year
Other comprehensive income
Total comprehensive loss for
the year
Contributed
Equity
$
Reserves
$
Accumulated
Losses
$
Total
$
36,163,913
568,483
(32,475,141)
4,257,257
300,000
(57,318)
249,000
-
-
-
-
(249,000)
-
-
-
-
-
(723,634)
-
300,000
(57,318)
-
(723,634)
-
-
-
(723,634)
(723,634)
Balance at 30 June 2020
36,655,595
319,483
(33,198,775)
3,776,303
Consolidated Entity
Balance at 1 July 2018
Equity issue expenses
Share based payments
Cancellation of performance
rights
Loss for the year
Other comprehensive income
Total comprehensive loss for
the year
Contributed
Equity
$
36,172,915
(9,002)
-
-
-
-
-
Reserves
$
249,000
-
357,733
(38,250)
-
-
Accumulated
Losses
$
Total
$
(31,395,866)
-
-
5,026,049
(9,002)
357,733
-
(1,079,273)
-
(38,250)
(1,079,273)
-
-
(1,079,273)
(1,079,273)
Balance at 30 June 2019
36,163,913
568,483
(32,475,141)
4,257,257
The accompanying notes form part of these financial statements.
Nelson Resources Limited and Controlled Entities
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flows from operating activities
Payments to suppliers and employees
Payment for exploration and evaluation assets
Interest paid
Interest received
Note
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
(438,487)
(395,038)
(2,025)
6,290
(793,088)
(1,906,137)
(209)
41,971
Net cash (used in) operating activities
7
(829,260)
(2,657,463)
Cash flows from investing activities
Proceeds from disposal of tenements
Payment for plant and equipment
Proceeds from insurance payout
4,545
(49,483)
14,258
1,000
(316,603)
-
Net cash (used in) investing activities
(30,680)
(315,603)
Cash flows from financing activities
Proceeds from equity issues
Payment for costs of equity issues
300,000
(35,697)
-
(9,002)
Net cash from / (used in) financing activities
264,303
(9,002)
Net increase / (decrease) in cash held
(595,637)
(2,982,068)
Cash and cash equivalents at beginning of the
year
666,222
3,648,290
Cash and cash equivalents at year end
7
70,585
666,222
The accompanying notes form part of these financial statements.
Nelson Resources Limited and Controlled Entities
25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
1.
Corporate information
This annual report covers Nelson Resources Limited (the “Consolidated Entity”), a company
incorporated in Australia for the year ended 30 June 2020. The presentation currency of the
Consolidated Entity is Australian Dollars (“$”). A description of the Consolidated Entity’s
operations is included in the review and results of operations in the Directors’ Report. The
Directors’ Report is not part of the financial statements. The Consolidated Entity is a for-profit
entity and limited by shares incorporated in Australia whose shares are traded under the ASX code
“NES”. The financial statements were authorised for issue on 12 August 2020 by the Directors of
the Consolidated Entity. The Directors have the power to amend and reissue the financial
statements. The principal accounting policies adopted in the preparation of the financial
statements are set out below.
2.
Accounting policies
The principal accounting policies adopted in the preparation of these financial statements are set
out below. These policies have been consistently applied to all the periods presented, unless
otherwise stated.
a. Basis of preparation
This general purpose financial report has been prepared in accordance with Australian Accounting
Standards, including Australian Accounting Interpretations, other authoritative pronouncements
of the Australian Accounting Standards Board and the Corporations Act 2001. Nelson Resources
Limited is a for-profit entity for the purpose of preparing the financial statements. The financial
statements are presented in Australian dollars and have been prepared under the historical cost
convention.
b. Going concern
The annual financial report has been prepared on the going concern basis, which contemplates
continuity of normal business activities and the realisation of assets and settlement of liabilities
in the ordinary course of business. The Consolidated Entity incurred a loss from ordinary activities
of $723,634 for the year ended 30 June 2020 (2019: loss $1,079,273) and net cash outflows from
operating activities of $829,260 (2019: $2,657,463). The net working deficit position of the
Consolidated Entity at 30 June 2020 was $120,084 (2019: $666,116 net working capital). The
Consolidated Entity has exploration commitments due within the next 12 months. Subsequent to
year end, the Company completed a renounceable entitlements issue and placement which raised
a total of $2,355,254. The Directors have prepared a cash flow forecast, which indicates that the
Consolidated Entity will have sufficient cash flows to meet all commitments and working capital
requirements for the 12 month period from the date of signing this financial report. Based on the
cash flow forecasts and other factors referred to above, the Directors are satisfied that the going
concern basis of preparation is appropriate. Should the Consolidated Entity be unable to continue
as a going concern it may be required to realise its assets and extinguish its liabilities other than
in the normal course of business and at amounts different to those stated in the financial
statements.
Nelson Resources Limited and Controlled Entities
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NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
2.
Accounting policies (continued)
The financial statements do not include any adjustments relating to the recoverability and
classification of asset carrying amounts or to the amount and classification of liabilities that might
result should the Consolidated Entity be unable to continue as a going concern and meet its debts
as and when they fall due.
c. Principles of consolidation
The financial statements incorporate the assets and liabilities of all subsidiaries of Nelson
Resources Limited and the results of all subsidiaries for the year then ended. Subsidiaries are all
entities (including structured entities) over which the Company has control. The Company
controls an entity when the Company is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct
the activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the Company. They are de-consolidated from the date that control ceases. The
acquisition method of accounting is used to account for business combinations by the Company.
The financial statements of the subsidiaries are prepared for the same reporting period as the
parent entity, using consistent accounting policies. In preparing the consolidated financial
statements, all intercompany transactions, balances and unrealised gains on transactions
between companies are eliminated. Unrealised losses are also eliminated unless the transaction
provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the policies adopted by the
Company. Non-controlling interests in the results and equity of subsidiaries are shown separately
in the statement of profit or loss, statement of financial position and statement of changes in
equity respectively.
The Company treats transactions with non-controlling interests that do not result in a loss of
control as transactions with equity owners of the Company. A change in ownership interest results
in an adjustment between the carrying amounts of the controlling and non-controlling interests
to reflect their relative interests in the subsidiary. Any difference between the amount of the
adjustment to non-controlling interests and any consideration paid or received is recognised
within equity attributable to owners of Nelson Resources Limited. When the Company ceases to
have control, joint control or significant influence, any retained interest in the entity is remeasured
to its fair value with the change in carrying amount recognised in the profit or loss. The fair value
is the initial carrying amount for the purposes of subsequent accounting for the retained interest
as an associate, joint controlled entity or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the
Company had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to the profit or loss.
Nelson Resources Limited and Controlled Entities
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NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
2.
Accounting policies (continued)
d. Comparatives
When required by Australian Accounting Standards, comparative figures have been adjusted to
conform to changes in presentation for the current year.
e. Finance costs
Finance costs comprise interest expense on borrowings. Borrowing costs directly attributable to
the acquisition, construction or production of a qualifying asset are capitalised as part of the cost
of that asset. All other borrowing costs are recognised in the profit or loss using the effective
interest rate.
f. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the
Consolidated Entity and that are believed to be reasonable under the circumstances. The key
estimates and judgements that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below.
Exploration and evaluation expenditure
Determining the recoverability of exploration and evaluation expenditure capitalised, in
accordance with the Company’s accounting policy where a potential impairment is indicated,
requires estimates and assumptions as to whether successful development and commercial
exploitation, or alternatively sale, of the respective areas of interest will be achieved. This
assessment requires estimates and assumptions about the resources, the timing of expected cash
flows and future capital requirements. If, after having capitalised the expenditure under
accounting policy, a judgement is made that recovery of expenditure is unlikely, an impairment
loss is recognised in the profit or loss. Costs of site restoration are provided over the life of the
facility from when exploration commences and are included in the costs of that stage. Site
restoration costs include the dismantling and removal of mining plant, equipment and building
structure, waste removal, and rehabilitation of the site in accordance with clauses of the mining
permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology and discounted by a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the restoration works. Any
changes in the estimates for the costs are accounted for on a prospective basis. In determining
the costs of site restoration, there is uncertainty regarding the nature and extent of the
restoration due to community expectations and future legislation. Accordingly, the costs have
been determined on the basis that the restoration will be completed within one year of
abandoning the site.
Nelson Resources Limited and Controlled Entities
28
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NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
2.
Accounting policies (continued)
Recoverability of deferred tax assets
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset
is realised or liability is settled. Deferred tax is credited in the income statement except where it
relates to items that may be credited directly to equity, in which case the deferred tax is adjusted
directly against equity. Deferred income tax assets are recognised to the extent that it is probable
that future tax profits will be available against which deductible temporary differences can be
utilised. The amount of benefits brought to account or which may be realised in the future is
based on the assumption that no adverse change will occur in income taxation legislation and the
anticipation that the economic entity will derive sufficient future assessable income to enable the
benefit to be realised and comply with the conditions of deductibility imposed by the law.
Leases – incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental
borrowing rate is estimated to discount future lease payments to measure the present value of
the lease liability at the lease commencement date. Such a rate is based on what the Consolidated
Entity estimates it would have to pay a third party to borrow the funds necessary to obtain an
asset of a similar value to the right-of-use asset, with similar terms, security and economic
environment.
h. New or amended Accounting Standards and Interpretations adopted
The Consolidated Entity has adopted all of the new or amended Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory
for the current reporting period. Any new or amended Accounting Standards or Interpretations
that are not yet mandatory have not been early adopted. The following Accounting Standard and
Interpretation is most relevant to the Consolidated Entity:
AASB 16 Leases
The Consolidated Entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117
'Leases' and for lessees eliminates the classifications of operating leases and finance leases.
Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding
lease liabilities are recognised in the statement of financial position. Straight-line operating lease
expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance
costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16
will be higher when compared to lease expenses under AASB 117. However, EBITDA (Earnings
Before Interest, Tax, Depreciation and Amortisation) results improve as the operating expense is
now replaced by interest expense and depreciation in profit or loss.
Impact of adoption
AASB 16 was adopted using the modified retrospective approach and as such the comparatives
have not been restated.
Nelson Resources Limited and Controlled Entities
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NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
3.
Revenue
ATO cashflow boost
Disposal of tenements
Interest revenue
Other revenue
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
10,000
4,545
4,310
7,000
25,855
-
4,608
34,931
582
40,121
Accounting policy
Interest revenue is recognised as interest accrues using the effective interest method. This is a
method of calculating the amortised cost of a financial asset and allocating the interest income
over the relevant period using the effective interest rate, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to the net carrying
amount of the financial asset. Other revenue is recognised when it is received or when the right
to receive payment is established.
4.
Income tax
Income tax benefit
Current income tax
Reconciliation of income tax benefit to prima facie tax
Loss before income tax benefit
Tax at the Australian tax rate of 30% (2019: 27.5%)
Movements in timing differences not recognised
Non-deductible expenses
Current year losses for which no deferred tax asset was
recognised
Income tax expense
Deferred tax balances not recognised
Tax losses
Exploration
Business related costs
Other
-
-
(723,634)
(217,090)
(235,458)
69,012
(1,079,273)
(296,800)
(702,019)
101,812
383,536
897,007
-
-
2,321,517
(536,784)
83,677
981
1,901,689
(326,148)
127,407
2,461
1,869,391
1,705,409
Nelson Resources Limited and Controlled Entities
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NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
4.
Income tax (continued)
Tax losses
The tax benefit at 30% of estimated unused tax losses is currently under review and it has not
been recognised as a deferred tax asset. The benefit of deferred tax assets will only be brought
to account if future assessable income is derived of a nature and of an amount sufficient to enable
the benefit to be realised and the conditions for deductibility imposed by the relevant tax
legislation continue to be complied with and no changes in tax legislation adversely affect the
Company in realising the benefit.
Accounting policy
Income tax
Income tax comprises current and deferred tax. Income tax is recognised in the profit or loss
except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity. Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantially enacted at the reporting date, and any adjustment to tax
payable in respect of previous years. Deferred tax is provided using the balance sheet method on
temporary differences arising between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the reporting date. Deferred tax assets are
recognised for all deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the
carrying amount and tax bases of investments in foreign operations where the company is able to
control the timing of the reversal of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset
when there is a legally enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to offset and intends either to settle on
a net basis, or to realise the asset and settle the liability simultaneously. The carrying amount of
deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised. Unrecognised deferred tax assets are reassessed at the
end of each reporting period and are recognised to the extent that it has become probable that
future taxable profit will be available to allow the deferred tax asset to be recovered. The amount
of deferred tax provided is based on the expected manner of realisation or settlement of the
carrying amount of assets and liabilities, using tax rates (and tax laws) enacted or substantively
enacted by the end of the reporting period. Deferred tax relating to items recognised in other
comprehensive income or equity is recognised in other comprehensive income or equity and not
in the profit or loss.
Nelson Resources Limited and Controlled Entities
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NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
4.
Income tax (continued)
GST
Revenues, expenses and assets are recognised net of the amount of GST, except where the
amount of GST incurred is not recoverable from the Australian Taxation Office ("ATO").
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The
net amount of GST recoverable from, or payable to, the ATO is included with other receivables or
payables in the statement of financial position. Cash flows are presented on a gross basis. The
GST components of cash flows arising from investing or financing activities which are recoverable
from, or payable to, the ATO are presented as operating cash flows included in receipts from
customers or payments to suppliers. Commitments and contingencies are disclosed net of
amount of GST recoverable from, or payable to, the ATO.
5.
Earnings per share
Loss used for basic and diluted loss per share are loss after tax of $723,634 (2019: loss after tax
of $1,079,273). The weighted average number of ordinary shares used as the denominator in
calculating basic and diluted earnings per share is 48,318,503 ordinary shares (2019: 45,592,846
ordinary shares). There were no potential ordinary shares that are considered dilutive in the
current reporting year.
Accounting policy
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders
of the Company, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the period, adjusted for bonus
elements in ordinary shares issued during the period. Diluted earnings per share adjusts the
figures used in the determination of basic earnings per share to take into account the after
income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of additional ordinary shares that would have been
outstanding assuming the conversion of all dilutive potential ordinary shares.
6.
Segment reporting
Operating segment are determined based on the reports reviewed by the Board of Directors,
which are used to make strategic decisions. The Company does not have any operating
segments with discrete financial information. All of the Company’s assets and liabilities are
located within Australia. The Company does not have any customers at this stage. Internal
management reports for the Board of Directors’ review are consistent with the information
provided in the statement of profit or loss and other comprehensive income, statement of
financial position and statement of cash flows. As a result, no reconciliation is required because
the information as presented is what is used by the Board to make strategic decisions.
Nelson Resources Limited and Controlled Entities
32
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
7.
Cash and cash equivalents
Cash in hand and at bank
Reconciliation of loss for the year to net cash flows from
operating activities
Loss for the year
Adjustments for:
Depreciation
Impairment of exploration and evaluation expenditure
Fixed assets write-off
Share based payments
Change in operating assets and liabilities:
(Increase)/decrease in receivables
(Increase)/decrease in prepaid expenses
(Increase)/decrease in exploration and evaluation
expenditure
Increase/(decrease) in trade payables and accruals
Increase/(decrease) in provisions
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
70,585
70,585
666,222
666,222
(723,634)
(1,079,273)
133,602
26,371
-
-
88,699
9,132
64,788
-
5,016
319,483
(90,395)
(11,612)
(358,158)
11,005
(16,277)
(1,866,944)
13,660
(12,186)
Net cash used in operating activities
(829,260)
(2,657,463)
Accounting policy
Cash and cash equivalents include cash at bank and on hand and term deposits held at call with
financial institutions with original maturities of three months or less but exclude any restricted
cash. Restricted cash is not available for use by the Company and therefore is not considered
highly liquid.
Nelson Resources Limited and Controlled Entities
33
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
8.
Trade and other receivables
Accrued interest revenue
GST receivable
Mongolian projects receivable8
Impairment of Mongolian projects receivable8
Other receivables9
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
42
13,678
555,304
(555,304)
2,013,271
2,022
81,911
611,794
(611,794)
24,530
2,026,991
108,463
The ageing of the receivables and allowance for expected credit losses provided for above are as
follows:
Not overdue
0-3 months overdue
3-6 months overdue
>6 months overdue
Expected
Credit Loss
Rate
%
0%
0%
0%
100%
Carrying
Amount
$
2,026,991
-
-
555,304
2,582,295
Allowance
for Expected
Credit Losses
$
-
-
-
(555,304)
(555,304)
Accounting policy
Trade receivables are initially recognised at fair value and subsequently measured at amortised
cost using the effective interest method, less any allowance for expected credit losses. Trade
receivables are generally due for settlement within 30 days. The Consolidated Entity has applied
the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based
on days overdue. Other receivables are recognised at amortised cost, less any allowance for
expected credit losses. The allowance for expected credit losses assessment requires a degree of
estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days
overdue, and makes assumptions to allocate an overall expected credit loss rate for each group.
These assumptions include recent sales experience and historical collection rates.
8 On 9 June 2017, the Company entered into an agreement with an independent third party buyer to sell its interest in
assets and projects in Mongolia for a cash consideration of USD500,000. During the year the Company received an
initial sum of USD40,000 or equivalent of AUD56,490 as a good faith payment, for the sale. The Directors are of the
view that the full amount of the receivable is likely to be not recoverable and, therefore, a full provision for impairment
has been made. Ownership of the shares has already been transferred.
9 During the year ended 30 June 2020, $2,008,227 related to entitlements offer funds received but securities not yet
issued and allotted.
Nelson Resources Limited and Controlled Entities
34
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
9.
Plant and equipment
2020
Written down value at
beginning of year
Additions
Depreciation
Written down value at
end of year
2019
Written down value at
beginning of year
Additions
Depreciation
Write-offs
Written down value at
end of year
Computer
Equipment
$
Office
Equipment
$
Motor
Vehicles
$
Exploration
Equipment
$
Total
$
16,556
-
(5,708)
11,179
5,337
(3,862)
110,700
-
(25,187)
121,825
38,312
(51,285)
260,260
43,649
(86,042)
10,848
12,654
85,513
108,852
217,867
Computer
Equipment
$
Office
Equipment
$
Motor
Vehicles
$
Exploration
Equipment
$
Total
$
4,950
16,263
(4,657)
-
-
13,157
(1,978)
-
1,114
129,877
(20,291)
-
6,321
158,382
(37,862)
(5,016)
12,385
317,679
(64,788)
(5,016)
16,556
11,179
110,700
121,825
260,260
Accounting policy
Plant and equipment is stated at historical cost less accumulated depreciation and any
accumulated impairment in value. The residual values, useful lives and depreciation methods are
reviewed, and adjusted if appropriate, at each reporting date. An item of property, plant and
equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are
taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is
transferred directly to retained profits. Depreciation is calculated on a diminishing value basis
over the estimated useful life of the asset as follows:
Computer equipment – 2.5 years Office equipment – 2.5 years
Motor vehicles – 4 years Exploration equipment – 2.5 years
Nelson Resources Limited and Controlled Entities
35
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
10.
Right of use assets
Balance at beginning of year (restated – AASB 16
recognition)10
Adjustment for change in variables
Depreciation
Balance at end of year
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
88,845
(25,432)
(47,560)
15,853
-
-
-
-
Accounting policy
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 payments 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. Where the Consolidated Entity expects to obtain ownership of the
leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-
of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
11.
Exploration and evaluation assets
Balance at beginning of year
Exploration and evaluation expenditure incurred during
the year
Impairment
3,330,881
1,463,937
358,157
(26,371)
1,879,200
(12,256)
Balance at end of year
3,662,667
3,330,881
10 The lease agreement commenced on 1 November 2018 for a term of 2 years and an option to extend for 6 months.
The discount rate (incremental borrowing rate) applied is 3.53%.
Nelson Resources Limited and Controlled Entities
36
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
11.
Exploration and evaluation assets (continued)
Accounting policy
Exploration and evaluation expenditure 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)
(ii) at least one of the following conditions is also met:
the rights to tenure of the area of interest are current; and
the exploration and evaluation expenditure are expected to be recouped through
successful development and exploration of the area of interest, or alternatively, by its
sale; or
exploration and evaluation activities in the area of interest have not, at the reporting
date, reached a stage which permits a reasonable assessment of the existence or
otherwise of economically recoverable reserves, and active 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 measurement of exploration and
evaluation costs where they are related directly to operational activities in a particular area of
interest. Indirect costs that are included in the cost of an exploration and evaluation asset include,
among other things, charges for depreciation of equipment used in exploration and evaluation
activities. If an area of interest is abandoned or is considered to be of no further commercial
interest, the accumulated exploration costs relating to the area are written off against income in
the year of abandonment. 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 a decision has been made to proceed with development in respect of a particular area of
interest, the relevant exploration and evaluation asset is tested for impairment and the balance
is then reclassified to development.
12.
Trade and other payables
Accrued expenses
Trade creditors
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
62,900
151,679
14,525
103,732
214,579
118,257
Nelson Resources Limited and Controlled Entities
37
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
12.
Trade and other payables (continued)
Accounting policy
These amounts represent liabilities for goods and services provided to the Company prior to the
end of the reporting period that are unpaid. They are unsecured and are usually paid within 30
days of recognition. Trade and other payables are presented as current liabilities unless payment
is not due within 12 months from the reporting date. They are recognised initially at their fair
value and subsequently measured at amortised cost using the effective interest method.
13.
Lease liability (current)
Balance at beginning of year (restated – AASB 16
recognition)
Adjustment for change in variables
Repayments
Balance at end of year
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
88,845
(26,345)
(50,831)
11,687
-
-
-
-
Accounting policy
A lease liability is recognised at the commencement date of a lease. The lease liability is initially
recognised at the present value of the lease payments to be made over the term of the lease,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the consolidated entity's incremental borrowing rate, which has been set at 3.53%.
There is an option to extend the lease. Lease payments comprise of fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when
the exercise of the option is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that do not depend on an index or a rate are expensed in
the period in which they are incurred. Lease liabilities are measured at amortised cost using the
effective interest method. The carrying amounts are remeasured if there is a change in the
following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease
liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit
or loss if the carrying amount of the right-of-use asset is fully written down.
14.
Provisions
Annual leave provision
4,410
4,410
20,687
20,687
Nelson Resources Limited and Controlled Entities
38
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
14.
Provisions (continued)
Accounting policy
Provision is made for the Consolidated Entity's liability for employee benefits arising from services
rendered by employees to the end of the reporting period. Employee benefits that are expected
to be wholly settled within one year have been measured at the amounts expected to be paid
when the liability is settled. Employee benefits expected to be settled more than one year after
the end of the reporting period have been measured at the present value of the estimated future
cash outflows to be made for those benefits.
Consolidated Entity
30 June 2020
No.
$
Consolidated Entity
30 June 2019
No.
$
15.
Contributed equity
Balance at beginning of year
Share issue: 14 February 2020
Share issue costs
Reversal of expired options
45,592,846 36,163,913
300,000
7,228,916
(57,318)
-
249,000
-
45,592,846
-
-
-
36,172,915
-
(9,002)
-
Balance at end of year
52,821,762 36,655,595
45,592,846
36,163,913
Listed options
Balance at beginning of year
Options expired
Balance at end of year
Consolidated
Entity
30 June 2020
No.
Consolidated
Entity
30 June 2019
No.
12,500,000
(12,500,000)
12,500,000
-
-
12,500,000
Nelson Resources Limited and Controlled Entities
39
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
15.
Contributed equity (continued)
Unlisted options
Balance at beginning of year
Options granted11
Options granted (free attaching)12
Options expired13
Consolidated
Entity
30 June 2020
No.
Consolidated
Entity
30 June 2019
No.
7,000,000
-
3,614,458
(3,000,000)
3,000,000
4,000,000
-
-
Balance at end of year
7,614,458
7,000,000
Performance rights
Balance at beginning of year
Performance rights issued14
Performance rights cancelled15
1,500,000
-
-
-
2,400,000
(900,000)
Balance at end of year
1,500,000
1,500,000
Capital management
The Company’s objectives when managing capital are to safeguard its ability to continue as a
going concern, so that it may continue to provide returns for shareholders and benefits for other
stakeholders. Due to the nature of the Company’s activities, being mineral exploration, it does
not have ready access to credit facilities and therefore is not subject to any externally imposed
capital requirements, with the primary source of Company funding being equity raisings.
Accordingly, the objective of the Company’s capital risk management is to balance the current
working capital position against the requirements to meet exploration programmes and
corporate overheads. This is achieved by maintaining appropriate liquidity to meet anticipated
operating requirements, with a view to initiating appropriate capital raisings as required.
11 On 12 December 2018 the Company granted 4,000,000 unlisted options exercisable at $0.20 each, expiring 20
November 2021 to a Director and an employee under the Amended Employee performance Rights and Options Plan.
The fair value of $0.064 was calculated using the share price at grant date of $0.15, a risk free interest rate of 1.95%
and a volatility of 76%.
12 On 14 February 2020 3,614,458 unlisted options exercisable at $0.08 each, expriring 14 February 2022 were granted
as free attaching to the placement as described above.
13 Expired 30 September 2019.
14 On 12 December 2018 the Company granted 2,400,000 unlisted performance rights, expiring 20 November 2021 to
a Director and an employee under the Amended Employee performance Rights and Options Plan. Refer to the Notice
of Annual General Meeting, dated and released on the ASX platform on 26 October 2018 for the terms and conditions
of the performance rights. Refer to sub Note 40 for further details.
15 On 2 May 2019 900,000 of the unlisted performance rights expiring 20 November 2021 were cancelled due to the
employee leaving the Company.
Nelson Resources Limited and Controlled Entities
40
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
15.
Contributed equity (continued)
Accounting policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
16.
Reserves
Options reserve
Balance at beginning of year
Grant of options16
Reversal of expired options
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
504,733
-
(249,000)
249,000
255,733
-
Balance at end of year
255,733
504,733
Share based payments reserve
Balance at beginning of year
Share based payments17
Cancellation of performance rights18
Balance at end of year
63,750
-
-
63,750
-
102,000
(38,250)
63,750
Total reserves
319,483
568,483
16 On 12 December 2018 the Company granted 4,000,000 unlisted options exercisable at $0.20 each, expiring 20
November 2021 to a Director and an employee under the Amended Employee performance Rights and Options Plan.
The fair value of $0.064 was calculated using the share price at grant date of $0.15, a risk free interest rate of 1.95%
and a volatility of 76%.
17 On 12 December 2018 the Company granted 2,400,000 unlisted performance rights, expiring 20 November 2021 to
a Director and an employee under the Amended Employee performance Rights and Options Plan. The value of the
performance rights was calculated by using the share price at issue date of $0.15 and given a probability of the
milestone being achieved. The performance condition for Tranche 1 is that the performance rights will vest upon the
Company achieving a market capitalisation of A$10 million provided that if this is achieved within 6 months of the
Performance Rights being granted then they will not vest until 6 months from the time the Performance Rights were
granted. The performance condition for Tranche 2 is that the performance rights will vest upon the Company achieving
a market capitalisation of A$20 million provided that if this is achieved within 6 months of the Performance Rights being
granted then they will not vest until 6 months from the time the Performance Rights were granted. The performance
condition for Tranche 3 is that the performance rights will vest upon the Company’s discovery of a 100,000oz JORC
resource, provided that if this is achieved within 6 months of the Performance Rights being granted then they will not
vest until 6 months from the time the Performance Rights were granted.
18 On 2 May 2019 900,000 of the unlisted performance rights expiring 20 November 2021 were cancelled due to the
employee leaving the Company.
Nelson Resources Limited and Controlled Entities
41
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
16.
Reserves
Accounting policy
The Company 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 the Black-Scholes model taking into account the terms and conditions
upon which the instruments were granted.
17.
Financial instruments
Financial risk management objectives, policies and processes
The Company has exposure to the following risks from their use of financial instruments:
credit risk,
liquidity risk, and
market risk (including gold price risk, interest rate and currency risk).
This note presents information about the Company’ exposure to each of the above risks, their
objectives, policies and processes for measuring and managing risk. The Board has overall
responsibility for the establishment and oversight of the risk management framework. The
Board reviews and agrees policies for managing each of these risks and they are summarised
below. The Company’s principal financial instruments comprise cash. The main purpose of the
financial instruments is to earn the maximum amount of interest at a low risk to the Company.
The Company also has other financial instruments such as receivables and payables which arise
directly from its operations. For the year under review, it has been the Company’s policy not to
trade in financial instruments.
Financial instruments
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Liability for application money
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
70,585
2,026,991
666,222
108,463
2,097,576
774,685
214,579
2,008,227
118,257
-
2,222,806
118,257
Nelson Resources Limited and Controlled Entities
42
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
17.
Financial instruments (continued)
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting
in financial loss to the Company. The Company has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of
mitigating the risk of financial loss from defaults. The Company only transacts with entities that
are rated the equivalent of investment grade and above. The Company’s exposure and the credit
ratings of its counterparties are continuously monitored. Credit exposure is controlled by
counterparty limits that are reviewed and approved by the Board annually. The Company does
not have any significant credit risk exposure to the National Australia Bank. The credit risk on liquid
funds is reduced because the counterparty is a bank with high credit rating assigned by
international credit rating agencies.
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 Company’s
short, medium and long-term funding and liquidity management requirements. The Company
manages liquidity risk by maintaining adequate reserves and banking facilities and by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets
and liabilities. The Company did not have any undrawn facilities at its disposal as at reporting
date. The table below analyses the Company’s financial liabilities into relevant maturity groupings
based on their contractual maturities. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances as the
impact of discounting is not significant.
Contractual maturities of financial liabilities
Details
<1 Year
1-2 Years
2-5 Years
$
$
$
30 June 2020
Trade and other
payables
Accrued expenses
Liability for application
money
Total
30 June 2019
Trade and other
payables
Accrued expenses
Total
151,679
62,900
2,008,227
2,222,806
103,732
14,525
118,257
-
-
-
-
-
-
-
-
-
-
-
-
-
-
>5
Years
Total
$
Carrying
Amount
$
$
-
-
151,679
62,900
151,679
62,900
- 2,008,227 2,008,227
- 2,222,806 2,222,806
-
-
-
103,732
14,525
118,257
103,732
14,525
118,257
Nelson Resources Limited and Controlled Entities
43
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
17.
Financial instruments (continued)
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates
and equity prices will affect the Company’s income or the value of its holdings of financial
instruments. The Company does not have short or long-term debt and therefore the risk is
minimal. The Company limits its exposure to credit risk by only investing in liquid securities and
only with counterparties that have acceptable credit ratings.
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate due to changes in market interest rates. Current financial assets and financial liabilities
are generally not exposed to interest rate risk because of their short-term nature. The Company’s
cash and cash equivalents at 30 June 2020 are fixed interest rate financial instruments. Therefore,
they are not subject to interest rate risk.
Fair value measurements
The fair values of cash, receivables, trade and other payables approximate their carrying amounts
as a result of their short maturity. When an asset or liability, financial or non-financial, is measured
at fair value for recognition or disclosure purposes, the fair value is based on the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date; and assumes that the transaction will take place either: in
the principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming they act in their economic best interests. For non-financial assets, the
fair value measurement is based on its highest and best use. Valuation techniques that are
appropriate in the circumstances and for which sufficient data are available to measure fair value,
are used, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value
hierarchy that reflects the significance of the inputs used in making the measurements.
Classifications are reviewed at each reporting date and transfers between levels are determined
based on a reassessment of the lowest level of input that is significant to the fair value
measurement. For recurring and non-recurring fair value measurements, external valuers may be
used when internal expertise is either not available or when the valuation is deemed to be
significant. External valuers are selected based on market knowledge and reputation. Where
there is a significant change in fair value of an asset or liability from one period to another, an
analysis is undertaken, which includes a verification of the major inputs applied in the latest
valuation and a comparison, where applicable, with external sources of data.
Nelson Resources Limited and Controlled Entities
44
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
17.
Financial instruments (continued)
Accounting policy
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are
included as part of the initial measurement, except for financial assets at fair value through profit
or loss. Such assets are subsequently measured at either amortised cost or fair value depending
on their classification. Classification is determined based on both the business model within which
such assets are held and the contractual cash flow characteristics of the financial asset unless, an
accounting mismatch is being avoided. Financial assets are derecognised when the rights to
receive cash flows have expired or have been transferred and the Consolidated Entity has
transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive
income are classified as financial assets at fair value through profit or loss. Typically, such financial
assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the
short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon
initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments
which the Consolidated Entity intends to hold for the foreseeable future and has irrevocably
elected to classify them as such upon initial recognition.
Impairment of financial assets
The Consolidated Entity recognises a loss allowance for expected credit losses on financial assets
which are either measured at amortised cost or fair value through other comprehensive income.
The measurement of the loss allowance depends upon the Consolidated Entity's assessment at the
end of each reporting period as to whether the financial instrument's credit risk has increased
significantly since initial recognition, based on reasonable and supportable information that is
available, without undue cost or effort to obtain. Where there has not been a significant increase
in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is
estimated. This represents a portion of the asset's lifetime expected credit losses that is
attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly,
the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected
credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective
interest rate. For financial assets measured at fair value through other comprehensive income,
the loss allowance is recognised within other comprehensive income. In all other cases, the loss
allowance is recognised in profit or loss.
Nelson Resources Limited and Controlled Entities
45
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
18.
Commitments and contingencies
The Company had no capital expenditure contracted at the reporting date (2019: nil). There is a
lease agreement, falling under the capital commitments at 30 June 2020. The Company has certain
statutory requirements to undertake a minimum level of exploration activity in order to maintain
rights of tenure to its various exploration tenements. These requirements may vary from time to
time, subject to approval of the relevant government departments and are expected to be fulfilled
in the normal course of operations of the Company to avoid forfeiture of any tenement. The
Company has a 100% share of tenements rental and expenditure commitments. These exploration
commitments are not provided for in the financial statements and are payable:
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
382,681
1,701,355
-
122,362
260,454
-
2,084,036
382,816
Not longer than 1 year
More than 1 year but not longer than 5 years
More than 5 years
a. Contingent assets
There are no contingent assets as at 30 June 2020.
b. Contingent liabilities
There were no contingent liabilities at 30 June 2020 other than a bank guarantee for the office
rent of $20,315 and the payment of a $50,000 bonus to Adam Schofield which was contingent
upon the successful completion of the renounceable entitlements issue. The Directors are not
aware of any significant breaches of environmental legislation and requirements during the year.
As announced on 9 June 2020, the Company has also, subject to shareholder approval, agreed to
issue the underwriter, Mahe Capital Pty Ltd or its nominee, one $0.08 option (expiring 24 months
from date of issue) for every $1 raised under the entitlements issue, closing on 1 July 2020, or in
the event approval is not obtained, a cash amount equal to the value of the options.
19.
Auditor’s remuneration
Criterion Audit Pty Ltd: Audit and review of financial
reports
Total auditor’s remuneration
23,000
23,000
21,000
21,000
Nelson Resources Limited and Controlled Entities
46
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
Consolidated
Entity
30 June 2020
$
Consolidated
Entity
30 June 2019
$
20.
Key management personnel compensation
Salary, fees and leave
Superannuation
Fair value of Share Options
288,810
6,840
-
265,617
9,500
223,583
Total key management personnel compensation
295,650
498,700
Effective 1 March 2019 the Company entered into a sub-lease agreement with Kingfisher Mining
Limited (a company of which both Warren Hallam and Adam Schofield are directors) for the
occupancy of its premises. The transaction was on an arm’s length term, initially expiring 31
October 2020. The agreement was terminated with an effective date of 1 April 2019.
Directors’ interests and benefits
Director
No. Shares
Held at 30
June 2019
On-
Market
Purchases
Exercise
of
Options
Other
Changes
No. Shares
Held at 30
June 2020
No. Shares
Held at Date
of this Report
-
-
Warren Hallam
Directly
Indirectly
Adam Schofield
Directly
Indirectly
Stephen Brockhurst
Directly
Indirectly
Total
75,000
-
-
-
75,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,315,788
75,000
-
-
-
75,000
1,465,789
175,000
-
1,315,789
4,272,366
Nelson Resources Limited and Controlled Entities
47
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
20.
Key management personnel compensation (continued)
Director
No. Options
Held at 30
June 2019
Grant of
Options
Exercise
of
Options
Other
Changes
No.
Options
Held at 30
June 2020
No. Options
Held at Date
of this
Report
-
-
Warren Hallam
Directly
Indirectly
Adam Schofield
Directly
Indirectly
Stephen Brockhurst
Directly
Indirectly
Total
2,537,500
-
-
-
2,537,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
657,894
(37,500)19
-
2,500,000
-
3,195,395
87,500
-
-
(37,500)
-
-
2,500,000
-
657,895
4,598,684
Director
No.
Performance
Rights Held
at 30 June
2019
Issue of
Performance
Rights
Conversino
of
Performance
Rights
Other
Changes
No.
Performance
Rights Held
at 30 June
2020
No.
Performance
Rights Held
at Date of
this Report
-
-
Warren Hallam
Directly
Indirectly
Adam Schofield
Directly
Indirectly
Stephen Brockhurst
Directly
Indirectly
Total
1,500,000
-
-
-
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
-
1,500,000
-
-
-
1,500,000
-
-
1,500,000
21.
Interests in controlled entities
Company Name
79 Exploration Pty Ltd
Nelson Exploration Services Pty Ltd
Place of
Incorporation
Australia
Australia
30 June 2020
% Ownership
100%
100%
30 June 2019
% Ownership
100%
100%
19 Expired 30 September 2019.
Nelson Resources Limited and Controlled Entities
48
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
22.
Interests in controlled entities (continued)
Nelson Resources Limited is the ultimate parent entity of the Company. The parent entity’s
financial performance and financial position are as follows:
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepaid expenses
Total Current Assets
Non-Current Assets
Plant and equipment
Right of use assets
Investments
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Liability for application money
Lease liability
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total Equity
Company
30 June 2020
$
Company
30 June 2019
$
65,476
2,025,547
19,631
639,889
49,996
28,488
2,110,654
718,373
16,581
15,853
1,100,001
19,997
-
1,100,001
1,132,435
1,119,998
3,249,447
1,838,371
203,003
2,008,227
11,687
4,410
92,756
-
-
20,687
2,227,327
113,443
2,227,327
113,443
1,022,120
1,724,928
36,655,595
319,483
(35,952,958)
36,163,913
568,483
(35,007,468)
1,022,120
1,724,928
Nelson Resources Limited and Controlled Entities
49
For personal use only
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2020
22.
Events after the end of the reporting year
There are no matters or circumstances have arisen since the end of the year which will significantly
affect, or may significantly affect, the state of affairs or operations of the reporting entity in future
financial periods other than the following:
On 7 July 2020 the Company announced that 52,821,762 shares along with 26,410,881
free attaching options exercisable at $0.08 expiring 7 July 2022 had been issued.
On 7 July 2020 the Company announced that a placement had been undertaken raising
$348,027 from the issue of 9,158,618 shares along with 4,579,275 free attaching options
exercisable at $0.08 expiring 7 July 2022.
On 7 July 2020 the Company paid a bonus of $50,000 to Adam Schofield as detailed in the
9 June 2020 renounceable entitlements issue prospectus.
On 12 August 2020 the Company announced that Haddison had withdrawn from the Yarri
project option agreement.
Nelson Resources Limited and Controlled Entities
50
For personal use only
DIRECTORS’ DECLARATION
The Directors of the Consolidated Entity declare that:
The financial statements and notes are in accordance with the Corporations Act 2001 and:
a.
b.
comply with Australian Accounting Standards; and
give a true and fair view of the Consolidated Entity’s financial position as at 30 June 2020
and of the performance for the year ended 30 June 2020.
In the Directors’ opinion there are reasonable grounds to believe that the Consolidated Entity will
be able to pay its debts as and when they become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act
2001.
This declaration is signed in accordance with a resolution of the Directors made pursuant to
section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
____________________
Adam Schofield
Executive Director
12 August 2020
Nelson Resources Limited and Controlled Entities
51
For personal use only
Criterion Audit Pty Ltd
ABN 85 165 181 822
PO Box 2138 SUBIACO WA 6904
Suite 1 GF, 437 Roberts Road
SUBIACO WA 6008
Phone: 6380 2555 Fax: 9381 1122
Independent Auditor’s Report
To the Members of Nelson Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the accompanying financial report of Nelson Resources Limited (“the Company”) and Controlled
Entities (“the Consolidated Entity”) , which comprises the consolidated statement of financial position as at 30 June 2020,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, notes to the financial statements, including
a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying consolidated financial report of the Consolidated Entity is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2020 and of its
performance for the year ended on that date; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001
and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that
the independence declaration required by the Corporations Act 2001, which has been given to the directors of the
Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Liability limited by a scheme approved under Professional Standards Legislation
For personal use only
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report of the current period. These matters were addressed in the context of our audit of the financial report as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit
matter
Exploration and Evaluation Expenditure – $3,662,667
Our procedures included, amongst others:
(Refer to Note 11)
• Assessing management’s determination of its areas
Exploration and evaluation is a key audit matter due to:
of interest for consistency with the definition in AASB
•
The significance of the balance to the Consolidated
6. This involved analysing the tenements in which
Entity’s consolidated financial position.
the Consolidated Entity holds an interest and the
•
The
level of
judgement required
in evaluating
exploration
programmes
planned
for
those
management’s application of the requirements of
tenements.
AASB 6 Exploration for and Evaluation of Mineral
•
For each area of
interest, we assessed
the
Resources. AASB 6
is an
industry specific
Consolidated Entity’s
rights
to
tenure
by
accounting standard requiring the application of
corroborating
to
government
registries
and
significant
judgements, estimates and
industry
evaluating agreements in place with other parties as
knowledge. This includes specific requirements for
applicable;
expenditure to be capitalised as an asset and
• We tested the additions to capitalised expenditure for
subsequent requirements which must be complied
the year by evaluating a sample of recorded
with for capitalised expenditure to continue to be
expenditure for consistency to underlying records,
carried as an asset.
the capitalisation requirements of the Consolidated
•
The assessment of impairment of exploration and
Entity’s accounting policy and the requirements of
evaluation expenditure being inherently difficult.
AASB 6;
• We considered the activities in each area of interest
to date and assessed the planned future activities for
each area of interest by evaluating budgets for each
area of interest.
• We assessed each area of interest for one or more
of the following circumstances that may indicate
impairment of the capitalised expenditure:
•
the licenses for the right to explore expiring in
the near future or are not expected to be
renewed;
• substantive expenditure for further exploration in
the specific area is neither budgeted or planned
• decision or intent by the Consolidated Entity to
discontinue activities in the specific area of
interest due to lack of commercially viable
quantities of resources; and
• data indicating that, although a development in
the specific area is likely to proceed, the carrying
amount of the exploration asset is unlikely to be
For personal use only
recovered in full from successful development or
sale.
• We assessed the appropriateness of the
related disclosures in note 10 to the
financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included in the
Company’s annual report for the year ended 30 June 2020, but does not include the financial report and our auditor’s
report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the
directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is
free from material misstatement, whether due to fraud or error. In Note 2, the directors also state in accordance with
Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report complies with
International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to obtain
reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
For personal use only
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Consolidated Entity’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Consolidated Entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for the
direction, supervision and performance of the Consolidated Entity’s audit. We remain solely responsible for our
audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in the
audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
For personal use only
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of the Company, for the year ended 30 June 2020, complies with section 300A
of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration report in
accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration
report, based on our audit conducted in accordance with Australian Auditing Standards.
CRITERION AUDIT PTY LTD
ELIZABETH LOUWRENS CA
Director
DATED at PERTH this 12th day of August 2020
For personal use only
ADDITIONAL INFORMATION FOR PUBLIC LISTED COMPANIES
As at 4 August 2020
Issued Securities
Fully paid ordinary shares
$0.20 unlisted options expiring 20-Nov-21
$0.08 unlisted options expiring 14-Feb-22
$0.08 listed options expiring 07-Jul-22
Unlisted performance rights expiring 20-Nov-21
Total
Distribution of Listed Ordinary Fully Paid Shares
Listed
on ASX
114,802,142
Unlisted
Total
- 4,000,000
- 3,614,458
- 114,802,142
4,000,000
3,614,458
- 30,990,156
1,500,000
- 1,500,000
145,792,298 9,114,458 154,906,756
30,990,156
Spread of Holdings
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
Total
Number of
Holders
29
49
191
468
181
918
Number of Units
3,383
191,472
1,657,784
18,142,061
94,807,442
114,802,142
% of Total Issued
Capital
-%
0.17%
1.44%
15.80%
82.59%
100.00%
Top 20 Listed Ordinary Fully Paid Shareholders
Rank Shareholder
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
HSBC CUSTODY NOMINEES (AUSTRALIA)
LIMITED
CROESUS MINING PTY LTD
CAIRNGLEN INVESTMENTS PTY LTD
MR GAVIN JEREMY DUNHILL
AJAVA HOLDINGS PTY LTD
MR ROBERT ANDREW JEWSON
CROESUS MINING PTY LTD
SABA NOMINEES PTY LTD
MR JONATHAN IAN LANGTON & MRS KERRY
ANNE LANGTON
ROCK THE POLO PTY LTD
CAMPBELL KITCHENER HUME & ASSOCIATES
PTY LTD
Shares Held
% Issued
Capital
5,297,222
4.61%
4,374,635
3,266,668
3,150,000
3,000,000
2,550,000
2,074,635
1,901,649
3.81%
2.85%
2.74%
2.61%
2.22%
1.81%
1.66%
1,701,019
1.48%
1,658,684
1.44%
1,620,000
1.41%
Nelson Resources Limited and Controlled Entities
57
For personal use only
ADDITIONAL INFORMATION FOR PUBLIC LISTED COMPANIES (continued)
12.
13.
14.
15.
16.
R J & A INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA)
LIMITED
KYRIACO BARBER PTY LTD
MR CHRISTOPHER ADAM SIDDONS
SCHOFIELD
BURLFALLS PTY LTD
17. MR RICHARD FARLEIGH
18.
ARGONAUT SECURITIES (NOMINEES) PTY
LTD
19. METALS X LIMITED
ALTOR CAPITAL MANAGEMENT PTY LTD
20.
Total
1,500,000
1.31%
1,382,334
1,333,658
1.20%
1.16%
1,315,789
1.15%
1,301,204
1,250,000
1,147,799
1,113,541
1.13%
1.09%
1.00%
0.97%
1,052,630
41,991,467
0.92%
36.58%
The number of shareholdings held in less than marketable parcels is 130.
The Company has the following substantial shareholders listed in its register as at 4 August
2020:
Rank Shareholder
CROESUS MINING PTY LTD , CROESUS MINING PTY
LTD ,
MANSMAR INVESTMENTS PTY LTD & MARK
DAVID STEINEPREIS
HSBC CUSTODY NOMINEES (AUSTRALIA)
LIMITED
1.
2.
Shares Held
% Issued
Capital
6,749,270
5.88%
6,679,556
5.82%
Ordinary Shares Voting Rights - Subject to any rights or restrictions for the time being attached
to any class or classes of Shares, at general meetings of Shareholders or classes of Shareholders:
each Shareholder entitled to vote may vote in person or by proxy, attorney or
representative;
on a show of hands, every person present who is a Shareholder or a proxy, attorney or
representative of a Shareholder has one vote; and
on a poll, every person present who is a Shareholder or a proxy, attorney or
representative of a Shareholder shall, in respect of each fully paid Share held by him, or
in respect of which he is appointed a proxy, attorney or representative, have one vote
for the Share, but in respect of partly paid Shares shall have such number of votes as
bears the same proportion to the total of such Shares registered in the Shareholder’s
name as the amount paid (not credited) bears to the total amounts paid and payable
(excluding amounts credited).
Nelson Resources Limited and Controlled Entities
58
For personal use only
ADDITIONAL INFORMATION FOR PUBLIC LISTED COMPANIES (continued)
Distribution of Listed Options
Spread of Holdings
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
Total
Number of Holders Number of Units
1,010
2
174,065
48
45
347,332
4,963,526
125
25,504,223
73
30,990,156
293
% of Total Options
-%
0.56%
1.12%
16.02%
82.30%
100.00%
Top 20 Listed Option Holders
Rank Optionholder
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CROESUS MINING PTY LTD
APAM HOLDINGS PTY LTD
CAIRNGLEN INVESTMENTS PTY LTD
MR JONATHAN IAN LANGTON & MRS KERRY
ANNE LANGTON
CAMPBELL KITCHENER HUME & ASSOCIATES PTY
LTD
AJAVA HOLDINGS PTY LTD
KYRIACO BARBER PTY LTD
MR CHRISTOPHER ADAM SIDDONS SCHOFIELD
ROCK THE POLO PTY LTD
CROESUS MINING PTY LTD
MR GAVIN JEREMY DUNHILL
MR DAVID FAGAN
MR BRENT EARDLEY WHEELER
SANDWICH HOLDINGS PTY LTD
JAMES TRACK INVESTMENTS PTY LTD
MR CAMERON STEWART COX
RUMLER SUPERANNUATION MANAGEMENT PTY
LTD
JETOSEA PTY LTD
ANNA CARINA PTY LTD
MR MICHAEL SOUCIK & MRS HEATHER SOUCIK
MRS HEATHER SOUCIK
MR ARIEL EDWARD KING
MR MARK RONALD WILKINSON
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
11.
12.
13.
14.
15.
15.
15.
15.
16.
17.
18.
19.
20.
Total
Options Held
1,260,000
% of Total
Options
4.07%
1,037,317
1,000,000
966,667
825,509
810,000
750,000
666,829
657,895
576,842
575,000
575,000
542,000
541,023
525,000
500,000
500,000
500,000
500,000
487,840
443,145
434,210
430,000
428,640
15,532,917
3.35%
3.23%
3.12%
2.66%
2.61%
2.42%
2.15%
2.12%
1.86%
1.86%
1.86%
1.75%
1.75%
1.69%
1.61%
1.61%
1.61%
1.61%
1.57%
1.43%
1.40%
1.39%
1.38%
50.12%
The Company has no restricted securities on issue as at the date of this report.
Nelson Resources Limited and Controlled Entities
59
For personal use only
ADDITIONAL INFORMATION FOR PUBLIC LISTED COMPANIES (continued)
Schedule of Exploration Tenements
Project
Socrates
Socrates South
Grindall
Grindall North
Grindall South
Redmill
Yarri
Yarri
Yarri
Bullen West
Harvey
Harvey South
Tempest
Tenement
E28/2633
E28/2873
E28/2679
E28/2768
E28/2769
E28/2874
P31/2085
P31/2086
P31/2087
E52/3695
E28/2923
E63/1971
E28/2805
Interest Held
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Nelson Resources Limited and Controlled Entities
60
For personal use only