ABN 69 100 038 266
ORA BANDA MINING LIMITED
AND ITS CONTROLLED ENTITIES
ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
CORPORATE DIRECTORY AND CONTENTS
DIRECTORS
Peter Mansell (Non-executive Chairman)
Peter Nicholson (Managing Director)
David Quinlivan (Non-executive Director)
Keith Jones (Non-executive Director)
Mark Wheatley (Non-executive Director)
COMPANY SECRETARIES
Tony Brazier
Susan Park
REGISTERED & PRINCIPAL OFFICE ADDRESS
Level 1, 2 Kings Park Road
West Perth 6005
Australia
Tel within Australia: 1300 035 592
Tel outside Australia: +61 8 6365 4548
Email: admin@orabandamining.com.au
Website: www.orabandamining.com.au
SHARE REGISTRY
Computershare Investor Services Pty Limited
GPO Box 2975
Melbourne VIC 3001
Telephone: 1300 555 159
AUDITOR
KPMG
235 St Georges Terrace
Perth WA 6000
SECURITIES EXCHANGE LISTING
Listed on the Australian Securities Exchange under the trading code OBM
1
CORPORATE DIRECTORY AND CONTENTS
Chairman’s Letter
Directors’ Report
Annual Mineral Resource & Ore Reserve Statement
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 Consolidated Financial Statements
Directors’ Declaration
Independent Audit Report
ASX Additional Information
Page
3
5
34
37
38
39
40
41
42
72
73
78
2
CHAIRMAN’S LETTER
Dear Shareholder
I am pleased to present Ora Banda Mining Limited’s (“Ora Banda” or “Company”) annual report for the 2021 financial year.
The year has been a momentous one for the Company, with Ora Banda making the sea change from explorer to producer –
and having done so against a backdrop of a global pandemic the likes of which we have never seen before.
The Company’s efforts during the year were focussed on bringing its 100%-owned Davyhurst Gold Project located north-west
of Kalgoorlie in Western Australia back into a state of readiness to begin production.
Amongst other things, this works programme involved the refurbishment of the existing 1.2Mtpa processing plant, the
installation of a new power station and LNG facility, the construction of a new 64-room camp at Riverina, the refurbishment
of the existing 172-room village at Davyhurst, workforce recruitment and the letting of a substantial number of mining
related contracts to get mining activity started.
Ora Banda’s focus and hard work was marked by a historical moment on 7 February 2021, when the Company poured its first
gold bar – an occasion that was well reported by Australian and International news media.
Since that day, the Company has been working to continue commissioning the project and get its Davyhurst processing plant
to its nameplate, steady state output of circa 82,000 ounces per annum.
This ramp up of mining and production has not been without challenges. Production and plant throughput at Davyhurst were
negatively affected during the year by materials handling characteristics of the ore and plant maintenance issues. Ora
Banda itself, like so many other mining companies, was also impacted by the acute shortage of skilled and specialist workers
caused by the COVID-19 pandemic and the “boom time” wages being paid due to the current employment climate.
The embargoes placed by Governments on immigration and inter-state travel have caused significant hardship to the mining
sector in Western Australia. Ora Banda has felt this acutely. The industry in this State is unable to access its required labour
at reasonable cost, or, in many cases, at all. Understandably, labour looks for job security and gravitates away from the less
financially secure junior sector to more secure mature operations. This exacerbates the labour shortage for junior miners
and is unsustainable for this integral sector of the State's economy. We look forward to the State Government addressing
these issues as a matter of urgency.
Although Ora Banda is fortunate compared to most other start-ups in that it is debt free, the Company’s slower than planned
ramp-up to a steady state production has impacted the bottom line - this necessitated a return to capital markets and the
sale of a non-core asset to raise further monies so that we could continue with our growth plans.
During the year Ora Banda was fortunate to recruit accomplished mining professional, Peter Nicholson, to the role of
Managing Director as part of a planned changeover with founding Chief Executive, David Quinlivan. I’m pleased to report that
David agreed to stay on the Board at Ora Banda in a non-executive role and thus we retained his considerable knowledge.
With Peter now on the team, we have enjoyed fresh eyes on the Davyhurst project and further rigour being applied to our
commissioning process work.
One of Ora Banda’s great attractions remains its Tier-1 location and the vast geological potential of its large 1,210 km
tenement package. During the year the Company spent considerable monies on exploration and often with meaningful
success.
The Company’s exploration strategy has been two-fold: firstly, to target near mine ounces to replace those depleted from
mining activity at the Riverina, Golden Eagle and Missouri mines and secondly, to drill greenfield targets at areas which have
been ranked for perspectivity according to historical work done on them.
Near mine exploration drilling at Riverina South continued to define new resources and it is hoped that both the Riverina
South Extension and the British Lion prospects located immediately south of the Riverina open pit mine will be the key to a
larger future gold project at Davyhurst.
Away from the Company’s central mining hub Ora Banda pursued multiple targets among them being the exciting Iguana
prospect where infill and extensional drilling was conducted to upgrade the current mineral resource.
I am convinced that Ora Banda is now well positioned for value recognition.
Ora Banda is now a producer, with a large resource base, at the time of record gold prices, in a world-class jurisdiction, in a
state which, while suffering the labour consequences arising because of COVID-19, has remained relatively untouched by
the disease, at a time when both larger Australian and North American producers are looking for growth opportunities and
of which many are well cashed up.
3
CHAIRMAN’S LETTER
Consequently Ora Banda’s future is bright providing we can keep unlocking the value of the Davyhurst project. The Company’s
immediate challenge is to continue to work hard on improving our mining and production performance and to organically
grow our near-mine opportunities. We confidently believe further market recognition will come as we improve these key
value drivers.
Making the large jump from explorer to producer is not easy. I would therefore like to sincerely thank my fellow directors,
our staff and consultants for all their efforts during the year, and finally, to our shareholders for their continued support.
Peter Mansell
Chairman
4
DIRECTORS’ REPORT
The directors of Ora Banda Mining Limited (“Ora Banda”, “Company” or “OBM”) present their report on the results and state
of affairs of the Group, being the Company and its controlled entities for the financial year ended 30 June 2021.
DIRECTORS
The names and details of the Group’s directors in office during the financial year and until the date of this report are as
follows.
NAMES, QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES OF DIRECTORS & COMPANY SECRETARIES
Director
Qualifications, experience and special responsibilities
Peter Mansell –
Non-executive
Chairman
Appointed 22 June 2018
B.Com, LLB, H. Dip. Tax, FAICD
Mr Mansell has extensive experience in the mining, corporate and energy sectors, both as
an advisor and independent non-executive director of listed and unlisted companies. Mr
Mansell practised law for a number of years as a partner in corporate and resources law
firms in South Africa and Australia.
Other current ASX directorships:
•
•
Energy Resources Australia Limited (appointed 26 October 2015)
DRA Global Limited (appointed 16 September 2019)
Former ASX directorships in the last three years:
• Nil
Peter Nicholson –
Managing Director
Appointed 1 July 2021
B.Eng., GradDipAppFin GAICD, MAusIMM, SF Fin
Mr Nicholson has over 25 years of industry experience in operational and mine
management roles coupled with experience in private equity across companies involved
in international mining and mining services. His experience spans a range of assets and
commodities over 50 countries.
Other current ASX directorships:
• Nil
Former ASX directorships in the last three years:
• Nil
David Quinlivan –
Non-executive
Director
Appointed 2 April 2019
B.App Sci, Min Eng, GradDipFinServ, FAusImm, FFINSA, MMICA
Mr Quinlivan is a mining engineer and principal of Borden Mining Services. He has over 35
years’ experience on projects throughout the world including mining and executive
leadership experience gained through a number of mining development roles.
Mr Quinlivan is a Fellow of the Australian Institute of Mining and Metallurgy, Fellow of the
Financial Services Institute of Australia, Member of the Mining Industry Consultants
Association and Member of the Institute of Arbitrators & Mediators Australia.
Other current ASX directorships:
•
•
Dalaroo Metals Limited (appointed 5 March 2021)
Silver Lake Resources Limited (appointed 25 June 2015)
Former ASX directorships in the last three years:
• Nil
5
DIRECTORS’ REPORT
Keith Jones –
Non-executive
Director
Appointed 2 April 2019
Mr Jones is a chartered accountant with over 40 years’ industry experience. He led the
Western Australian practice of Deloitte for 15 years, the Energy and Resources group, and
was Chairman of Deloitte Australia.
Other Current ASX directorships:
•
Coda Minerals Limited (appointed 26 April 2018)
Former ASX directorships in the last three years:
•
Gindalbie Resources Limited (appointed 27 February 2013 / resigned 23 July 2019)
Mark Wheatley –
Non-executive
Director
Appointed 2 April 2019
B.E (Chem Eng Hons 1), MBA
Mr Wheatley is a chemical engineer with over 30 years in mining and related industries. He
has been involved as a director in both large and small companies and has led a number
of listed company exploration and production turnaround stories.
Other current ASX directorships:
•
•
Prospect Resources Limited (appointed 8 January 2021)
Peninsula Energy Limited (appointed 26 April 2016)
Former ASX directorships in the last three years:
• Nil
Joint Company Secretaries
Tony Brazier –
Appointed 2 April 2019
B.Bus, ACA, AGIA, ACIS
Mr Brazier is a chartered accountant with over 25 years’ experience across a range of
industries. He has extensive experience in project modelling and financing, process
optimisation,
financial reporting and analysis, corporate governance and risk
management.
Susan Park –
Appointed 2 April 2019
B.Com, ACA, F Fin, FGIA, FCIS, GAICD
Ms Park has over 25 years’ experience in the corporate finance industry. She has held senior
management positions at Ernst & Young, PricewaterhouseCoopers, Bankwest and Norvest
Corporate.
Directors’ Interests in the shares, options and performance rights of Ora Banda Mining Limited
Direct and indirect interests of the directors and their related parties in the Company’s shares, options and performance
rights as at 30 September 2021 were:
Director
Peter Mansell
Peter Nicholson
David Quinlivan
Keith Jones
Mark Wheatley
Fully
Paid Shares
Unlisted
Incentive Options
Unlisted Performance
Rights
5,907,407
-
5,801,635
2,591,975
2,168,752
592,592
-
1,728,395
395,061
395,061
-
-
865,660
-
-
Further details of the vesting conditions applicable are disclosed in the remuneration report.
6
DIRECTORS’ REPORT
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were mineral exploration and development at its 100% owned
Davyhurst Gold Project (“DGP”).
During the year, the Company announced it had completed construction and commenced gold production at the DGP.
During the financial year the Group declared commercial production at the DGP. The declaration, which was made on 31
March 2021, followed a commissioning period subsequent to the commencement of gold production in early February 2021.
REVIEW OF OPERATIONS
DGP is located approximately 120 km north-west of Kalgoorlie, within the tier 1 gold mining province of the Eastern
Goldfields in Western Australia. OBM’s tenement package consists of 95 granted tenements covering an area of
approximately 1,210 km2. Refer Figure 2 for a map of project locations.
The Group’s operations over the last 12 months like others in the industry experienced some disruption from COVID-19,
however the Company has mitigated the impacts as far as practicable with minimal impact to operations.
Davyhurst Activities
During the year the Company completed the processing plant refurbishment while maintaining an exploration programme.
Activities included refurbishment of the 1.2Mtpa processing plant; installation of a new power station and liquified natural
gas (“LNG”) facility; construction of a 64-room camp at Riverina; refurbishment of the 172-room Davyhurst village and
upgrade of all the associated facilities to support the mine and commencement of mining and processing operations.
Processing plant refurbishment
GR Engineering Services was awarded an engineering, procurement and construction contract associated with the restart
of the existing Davyhurst gold processing plant. The scope of work included the refurbishment, optimisation and
recommissioning of the existing 1.2 Mtpa Davyhurst gold processing plant, borefields and associated infrastructure. The
remedial works programme was delivered on budget. Figure 1 displays an image of the plant subsequent to commissioning.
Dry commissioning of the plant commenced on schedule in December 2020 and wet commissioning commenced on
schedule in January 2021 with the first parcel of low-grade commissioning ore being fed into the primary crusher on 17
January 2021. On 7 February 2021, the Company completed its first gold pour from the refurbished plant.
Figure 1: Processing plant post commissioning
7
DIRECTORS’ REPORT
Figure 2: Project locations
8
DIRECTORS’ REPORT
Power Station
During the year, installation of the new power station and LNG facility was completed. The total installed capacity is 9.5
megawatts. The new power station was pre-commissioned in December 2020 in preparation for dry commissioning of the
processing plant, followed by the wet commissioning and recommencement of processing operations in January 2021 – see
Figure 3.
Figure 3: New Power Station with LNG facility in background pre-commissioned
Village Infrastructure
The 172-room Davyhurst village was upgraded and became fully operational during the year. Construction of the 64-room
Riverina camp commenced in October 2020 and included completion of all accommodation units; kitchen, wet and dry
messes; gymnasium; first aid room; communications tower; sewage and wastewater treatment system. The camp was
completed and became fully operational receiving its first occupants during February 2021. Refer Figures 4 and 5.
Figure 4: Riverina camp
9
DIRECTORS’ REPORT
Figure 5: Riverina camp – Outdoor dining area
10
DIRECTORS’ REPORT
Mining Operations
Refer table 1 for a summary of mining activities during the year. There was no mining activity in the prior year.
Riverina – Open Pit
Riverina is located approximately 44 km north of the Davyhurst gold processing plant. The mine commenced operations
during the year following clearing and grade control activities. The open pit has advanced strongly through the year.
Golden Eagle – Underground
Dewatering of the Golden Eagle underground mine commenced during the year with the initial dewatering programme being
conducted via a borehole that had intersected the underground mine workings near the bottom of the mine. Power supply
and ventilation were reinstated without issue. Dewatering was completed on 16 January with mining commencing
subsequent to this. Initial production was behind budget but accelerated towards the end of the financial year to
approximate budgeted production at the end of the financial year.
Missouri – Open Pit
The Missouri mine is approximately 37 km south-west of the Davyhurst gold processing plant. During the last quarter of the
year mining operations commenced at Missouri. Site offices and communications were established as well as the
mobilisation of necessary equipment, with these activities completed soon after the year end. The Missouri deposit has
previously been mined, with the pit floor containing historically blasted material.
Units
FY2020
Sep-20
Quarter
Dec-20
Mar-21
Jun-21
FY 2021
Davyhurst Gold Project
Mining
Open Pit
Riverina
Waste mined
Ore mined
Grade
Contained gold
Missouri
Waste mined
Ore mined
Grade
Contained gold
Underground
Golden Eagle
Ore mined
Grade
Contained gold
Davyhurst Total
Ore mined
Grade
Contained gold
bcm
t
g/t
oz
bcm
t
g/t
oz
t
g/t
oz
t
g/t
oz
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Table 1: Summary of mining activities during the year
368,486
93,039
1.34
3,995
-
-
-
-
-
-
-
1,095,832
1,096,114
2,560,432
140,361
316,299
549,699
1.22
5,512
-
-
-
-
1.22
12,408
46,062
6,339
1.28
261
1.24
21,915
46,062
6,339
1.28
261
25,235
72,235
97,470
3.70
3,004
2.43
5,641
2.76
8,645
93,039
1.34
3,995
165,596
394,873
653,508
1.60
8,516
1.44
1.47
18,310
30,821
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
DIRECTORS’ REPORT
Processing Operations
Gold ore is treated at the Davyhurst gold processing plant. A summary of processing plant production is set out below in
Table 2. There were no processing activities in the prior year.
Following the refurbishment and commissioning of the 1.2Mtpa processing facility in early February 2021, ore processing
and production commenced. Processing and plant throughput were negatively affected during the year by material handling
characteristics and maintenance issues. Slurry viscosity of the predominantly oxide feed blend resulted in lower than
forecast leach and adsorption tank slurry densities. This resulted in lower than forecast throughput however as the year
progressed and the percentage of oxide in the feed reduced the viscosity issues receded.
Davyhurst Gold Project
Processing
Units
FY 2020
Quarter
Sep-20
Dec-20
Mar-21
Jun-21
FY 2021
Ore processed
Head grade
Contained gold
Recovery
Gold poured
Gold sold
Bullion on hand
t
g/t
oz
%
oz
oz
oz
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Table 2: Summary of processing plant production
-
-
-
-
-
-
-
128,500
201,817
330,317
1.53
6,319
90.8%
4,370
3,204
1,166
1.81
11,733
87.2%
10,356
10,665
857
1.70
18,052
88.5%
14,726
13,869
857
Exploration
Riverina South
During the year the Company completed the Phase 2 resource definition drilling programme totalling 68 reverse circulation
(RC) drill holes for 7,338 metres and reduced the drill hole spacing down to a maximum 40m x 25m in two discrete areas at
Riverina South (immediately south of the proposed Riverina open pit) and around the old workings associated with the
British Lion prospect – refer Figure 6.
The results from the drilling programme were included in resource estimation work that resulted in the Riverina South
maiden resource estimate of 43,000 Au ounces which was announced on 5 October 2020. The Riverina South Project includes
both the Riverina South Extension and the British Lion prospects and is located immediately to the south of the Company’s
planned Riverina Open Pit which is a key part of the Company’s larger DGP.
The maiden Mineral Resource for the Riverina South Project is 650,000 tonnes @ 2.1g/t for 43,000 ounces and includes both
an open pit component (includes material constrained within A$2,400 optimised pit shells with a grade greater than 0.5 g/t
Au) and an underground component (includes material that is outside the A$2,400 pit shells with a grade greater than 2.0 g/t
Au).
Riverina South Phase 3 resource definition drilling commenced in December. This programme is focussed within the area
of the A$2,400 pit optimisation with the aim to increase the confidence of the resource to indicated and measured categories
and produce an ore reserve in a timely fashion that would utilise the mining fleet currently in operation at the main Riverina
deposit.
This programme is the third phase of drilling that has occurred in rapid succession on the Riverina South deposit, which also
includes the historical British Lion mine. There is approximately 7,400 metres of RC drilling remaining in the Phase 3
programme.
12
DIRECTORS’ REPORT
Iguana
Below are the key results from an infill drilling programme that commenced at Iguana in April 2021. A total of 27 RC holes
were completed for 3,750 metres. The initial Iguana infill drilling programme targeted the immediate resource area that is
approximately 750 metres long (north-south), 300 metres wide (east-west) and has a depth of approximately 120 metres. The
bulk of the drilling was conducted inside the A$2,100 optimised resource constraint shell.
Results returned include:
•
•
•
9.0m @ 7.6 g/t from 181m
4.0m @ 7.9 g/t from 68m
4.0m @ 7.6 g/t from 84m
Regional exploration
During the second half of the year the Company conducted a first pass exploration air-core (AC) drilling programme of priority
grass roots targets dispersed throughout the Company’s tenement package (Figure 7) and received results subsequent to
year end. The regional programme focussed on testing gold targets with no previous drilling or effective exploration. A total
of 16,112 drilling metres were completed to blade refusal, with 6,027 metres currently awaiting assay return. Assays have
been received for drilling at Sunraysia North, Gem Star North, Santalum and Queen of Hearts with results for other target
areas still pending.
Three of the four targets for which results have been returned intersected gold mineralisation which is highly significant for
first pass exploration drilling and of these, Sunraysia North and Santalum prospects gave standout results. The Sunraysia
North drilling was designed to test the southern continuation of the Riverina & British Lion mineralised trend in an area with
no previous drilling. Results are highly promising with significant end of hole mineralisation intersected along the Riverina
trend in three successive drill lines spaced 400m apart.
The Santalum drilling was designed to test an undrilled auger surface geochemical anomaly on the southern end of the
interpreted Round Dam mineralised trend. Significant gold mineralisation was intersected in one hole on the most northern
line with mineralisation open to the north. Further AC and RC drilling is currently being planned to follow up these
encouraging results.
The Company’s mineral resource statement now stands at 23.4Mt @ 2.8g/t for 2,140k ounces of contained gold. Refer to
page 34 for further details.
13
DIRECTORS’ REPORT
Figure 6 - Riverina Area Location Plan
14
DIRECTORS’ REPORT
Figure 7 – Regional location map
15
DIRECTORS’ REPORT
Corporate
Capital Raising
On 3 July 2020 the Company announced it was launching a $55 million equity raising in two components being a two-tranche
institutional placement to raise $40 million and an underwritten 1 for 9 accelerated non-renounceable entitlement offer to
raise approximately $15 million.
The raising was undertaken at an issue price of $0.23 per fully paid ordinary share.
In total $55.09 million was raised before costs with the shares issued in three tranches as follows:
1. 128,832,632 fully paid ordinary shares issued on 15 July 2020;
2. 14,524,973 fully paid ordinary shares issued on 31 July 2020; and
3. 96,143,565 fully paid ordinary shares issued on 15 September 2020.
During the year $1.98 million was raised via the exercise of 7,666,667 unlisted options with an exercise price of $0.2578 per
option.
On 8 June 2021 the Company announced it had completed a $21 million placement (before costs) with shares to be issued at
$0.17 per share.
Financial Review
The Group recorded a net loss of $22.28 million for the year ended 30 June 2021 (30 June 2020: net loss of $6.68 million).
During the year ended 30 June 2021 the Group incurred $33.97 million (30 June 2020: $10.53 million) of mine development
and exploration expenditure; and acquired plant and equipment of $23.14 million (30 June 2020: $1.27 million).
During the year ended 30 June 2021 the Group recorded net cash outflows of $54.56 million in operating and investing
activities, which was funded by existing cash of $10.58 million at 1 July 2020 and cash inflows of $78.07 million from share
issues and the exercise of options. The Group’s closing cash balance at 30 June 2021 was $24.22 million.
Liquidity and Capital Resources
The table below sets out summary information about the Group’s earnings and movements in shareholder wealth for the
five years to 30 June 2021:
Performance Measures
FY 2021
FY 2020
FY 2019
FY 2018
FY 2017
$
$
$
$
$
Net assets/(liabilities)
102,017,000
48,031,000
35,368,000
(35,977,000)
11,115,000
Current assets
46,567,000
12,040,000
14,710,000
3,544,000
8,030,000
Cash
24,220,000
10,577,000
14,142,000
5,000
44,000
Contributed equity
443,696,000
368,194,000
350,519,000
287,168,000
251,282,000
Accumulated losses
344,550,000
322,266,000
(328,181,000)
(336,255,000)
(250,333,000)
Net (loss)/profit before
tax
Share price at start of
year
Share price at end of year
Earnings/(loss) per share
(22,284,000)
(6,675,000)
8,233,000
(86,390,000)
(18,103,000)
0.27
0.15
(2.73)
0.16
0.27
(0.12)
0.11
0.16
0.11
0.37
0.11
(1.69)
0.43
0.37
(0.03)
16
DIRECTORS’ REPORT
Capital Structure
As discussed above:
•
•
•
During the year ended 30 June 2021 the Company issued 240 million ordinary shares through three tranches at a price
of $0.23 per share, raising $55.09 million before capital raising costs;
$1.98 million was raised via the exercise of 7,666,667 unlisted options with an exercise price of $0.2578 per option: and
$21.01 million was raised before costs with shares to be issued at $0.17 per share.
Additionally, 7,735,825 ordinary shares were issued on the exercise of unlisted vested options and performance rights at a
nil exercise price.
A total of 10,636,449 unlisted performance rights were issued during the year ended 30 June 2021, as follows:
•
•
•
•
633,681 performance rights are subject to a vesting condition based on Relative Total Shareholder Return, whereby the
Company’s total shareholder return is measured relative to the returns of a peer group over the performance period 1
July 2019 to 30 June 2022. A total of 50% of the performance rights will vest if the Company’s performance relative to the
peer group is at the 50th percentile, while 100% of the performance rights will vest if the Company’s performance
relative to the peer group is at the 75th percentile. The vesting of the performance rights between the 50th and the 75th
percentile will be 50% to 100% vesting based on a straight-line pro rata basis;
354,874 performance rights are subject to a vesting condition based on Total Shareholder Return (“TSR”), of the Company
over the performance period 1 July 2020 to 30 June 2021. The fair value of the TSR performance rights was estimated as
at the date of grant using a Monte-Carlo simulation model taking into account the terms and conditions upon which the
performance rights were granted;
6,454,032 performance rights are subject to a vesting condition based on Relative Total Shareholder Return, whereby
the Company’s total shareholder return is measured relative to the returns of a peer group over the performance period
1 July 2020 to 30 June 2023. A total of 50% of the performance rights will vest if the Company’s performance relative to
the peer group is at the 50th percentile, while 100% of the performance rights will vest if the Company’s performance
relative to the peer group is at the 75th percentile. The vesting of the performance rights between the 50th and the 75th
percentile will be 50% to 100% vesting based on a straight-line pro rata basis;
3,193,862 performance rights are subject to a vesting condition based on the achievement of the Company’s
performance metrics over the performance period 1 July 2020 to 30 June 2021. The vesting criteria are 50% vesting based
on the Company’s management response criteria, 40% vesting based on the Company’s physical and cost performance
criteria and 10% based on the Company’s relative shareholder return performance criteria.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of Ora Banda during the year.
EVENTS AFTER BALANCE DATE
On 1 July 2021 Peter Nicholson was appointed Managing Director with immediate effect, following the retirement of David
Quinlivan from the position. Mr Quinlivan transitioned to a non-executive role.
On 5 July 2021 the Company announced the results of a share purchase plan with 4,382,393 new ordinary fully paid shares
subsequently issued at an issue price of $0.17 per share raising a total of $745,000 before costs.
On 18 August 2021 the Company issued 588,236 fully paid ordinary shares at an issue price of $0.17 per share to a director,
David Quinlivan, raising $100,000 subsequent to receipt of shareholder approval on 19 July 2021 for his participation in the
capital raising announced on 8 June 2021.
17
DIRECTORS’ REPORT
On 3 September 2021 the Company announced it had signed a term sheet with TNT Mines Limited (ASX:TIN), subsequently
renamed Red Dirt Metals Limited (ASX:RDT), to dispose of the Mount Ida asset for consideration of $11,000,000 before costs.
On 20 September 2021 the Company announced the sale was unconditional with settlement expected to occur in September.
Settlement occurred on 23 September with funds received on the same date.
Apart from the above, no other matters have arisen since the end of the financial year that impact or are likely to impact the
results of the Group in subsequent financial periods.
DIVIDENDS
No dividend has been paid or declared by the Company up to the date of this report.
LIKELY DEVELOPMENTS
There are no likely developments of which the Directors are aware which could be expected to significantly affect the
results of the Group’s operations in subsequent financial years not otherwise disclosed in the Principal Activities; Review
of Operations or the Events After Balance Date sections of the Directors’ Report.
CORPORATE GOVERNANCE
In recognising the need for appropriate standards of corporate behaviour and accountability, the Directors of Ora Banda
have adhered to the principles of good corporate governance. The Company’s corporate governance policies are located
on the Company’s website.
OPTIONS AND PERFORMANCE RIGHTS
Unissued ordinary shares of the Company under option and performance right as at 30 September 2021 are as follows:
Date granted
31 January 2018
31 January 2018
Various1
Various1
11 June 2019
Various2
Various3
Number of unissued ordinary
shares
Exercise price
Expiry date
2,178,331
2,178,331
3,854,862
3,854,862
2,916,667
10,084,518
6,715,586
$3.3328
$2.9578
$3.3328
$2.9578
$1.1203
Nil
Nil
31 January 2023
31 January 2023
2 February 2023
2 February 2023
11 June 2023
Various
Various
1.
2.
3.
Consists of options issued to Hawke’s Point, as participants under the rights issue (including pursuant to underwriting
arrangements). The issue dates of these options were 9 February 2018, 27 February 2018 and 14 March 2018.
Options issued under the Group’s employee share scheme to various key management personnel are subject to the satisfaction of
the vesting conditions outlined in the Remuneration Report.
Performance rights issued under the Group’s employee share scheme to various key management personnel are subject to the
satisfaction of the vesting conditions outlined in the Remuneration Report.
18
The following ordinary shares of the Company were issued during or since the end of the financial year as a result of the
exercise of an option or performance right:
DIRECTORS’ REPORT
Date issued
Number of ordinary shares issued
Amount paid per share
31 July 2020
Various
2 November 2020
30 June 2021
956,669
7,666,667
2,180,058
2,966,667
Nil
$0.2578
Nil
Nil
MEETINGS OF DIRECTORS
The number of meetings of the board of directors held during the year and the number of meetings attended by each director
was as follows:
Board of Directors
Remuneration & Nomination
Committee
Audit & Risk Management
Committee
Eligible to attend
Attended
Eligible to attend
Attended
Eligible to attend
Attended
Peter Mansell
David Quinlivan
Keith Jones
Mark Wheatley
18
18
18
18
18
18
18
18
1
-
1
1
1
-
1
1
3
-
3
3
2
-
3
3
19
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
This remuneration report outlines the remuneration arrangements in place for key management personnel (“KMP”) of the
Group which includes the executive director, non-executive directors and senior executives.
Contents:
1. Basis of preparation
2. Key management personnel
3. Remuneration governance
4. FY21 KMP remuneration
5.
6. KMP holdings
Link between Company performance, shareholder wealth generation and remuneration
1. BASIS OF PREPARATION
This remuneration report has been prepared and audited in accordance with the requirements of the Corporations Act 2001
and applicable accounting standards.
2. KEY MANAGEMENT PERSONNEL
KMP comprise those persons having authority and responsibility for planning, directing and controlling the major activities
of the Group, directly or indirectly, including any director (whether executive or otherwise). Unless otherwise indicated, all
KMP held their position throughout the financial year and up to the date of this report.
The report details the remuneration arrangements for the Group’s KMP including non-executive directors, executive
directors and senior executives:
Name
Position
Term as KMP
Non-executive Directors
Peter Mansell
Keith Jones
Mark Wheatley
Executive Director
David Quinlivan
Senior Executives
Peter Nicholson
Tony Brazier
Andrew Czerw
Brendan Fyfe
Derek Byrne
Non-executive Chairman
Non-executive Director
Non-executive Director
Full year
Full year
Full year
Managing Director
Full year
Chief Executive Officer
Chief Financial Officer & Company
Secretary
General Manager – Resource
Development
General Counsel
Chief Operating Officer
Appointed 2 April 2021
Full year
Full year
Full year
Appointed 1 June 2021
20
DIRECTORS’ REPORT
3. REMUNERATION GOVERNANCE
Board and Remuneration & Nomination Committee responsibility
The Nomination & Remuneration Committee is a subcommittee of the board. It assists the board to ensure that the Company
develops and implements remuneration policies and practices that are appropriate for a company of the nature, size and
standing of OBM.
The Nomination & Remuneration Committee is responsible for making recommendations to the board on:
•
•
•
Remuneration arrangements (including base pay, performance targets, bonuses, equity awards, superannuation,
retirement rights, termination payments) for the executive director and senior executives;
Remuneration of non-executive directors; and
Establishment of employee incentive and equity-based plans and the number and terms of any incentives proposed to
be issued to Executives pursuant to those plans, including any vesting criteria.
Remuneration principles
The Company’s remuneration strategy and structure is reviewed by the board and the Nomination & Remuneration
Committee for business appropriateness and market suitability on an ongoing basis. KMP are remunerated and rewarded
in accordance with the Company’s remuneration policies (outlined in further detail below).
Engagement of remuneration consultants
During the year, the Company did not engage remuneration consultants to provide a “remuneration recommendation” (as
defined in the Corporations Act 2001), however independent advice was received when the current remuneration framework
was established. This advice was in respect of remuneration reporting and general advice in respect of market practice for
long term incentive plans. In addition, the Nomination & Remuneration Committee benchmark KMP remuneration annually
using external independent industry reports and data to ensure that remuneration levels are competitive and meet the
objectives of the Company.
2020 AGM voting outcome and comments
The Company received more than 99% votes in favour of the adoption of its Remuneration Report for the 2020 financial year.
4. FY21 KMP REMUNERATION
In determining KMP remuneration, the board aims to ensure that remuneration practices are:
•
•
•
•
Competitive and reasonable, enabling the Company to attract and retain high calibre talent;
Aligned to the Company’s strategic and business objectives and the creation of shareholder value;
Transparent and easily understood; and
Acceptable to shareholders.
The Company’s approach to remuneration ensures that remuneration is competitive, performance-focussed, clearly links
appropriate reward with desired business performance, and is simple to administer and understand by executives and
shareholders. In line with the remuneration policy, remuneration levels are reviewed annually to ensure alignment to the
market and the Company’s stated objectives.
The Company’s reward structure for executives provides for a combination of fixed and variable pay with the following
components:
•
•
Fixed remuneration in the form of base salary, superannuation and benefits;
Variable remuneration in the form of short-term incentives (“STI”) and long-term incentives (“LTI”).
In accordance with the Company’s objective to ensure that executive remuneration is aligned to Company performance, a
portion of executives’ remuneration is placed “at risk”. The relative proportion of target FY21 total remuneration packages
split between the fixed and variable remuneration is shown below:
21
DIRECTORS’ REPORT
Executive
Managing Director
Senior Executives
Fixed Remuneration
(% of total remuneration)
Target STI
(% of total remuneration)
Target LTI
(% of total remuneration)
40%
40%
20%
20%
40%
40%
a. Fixed remuneration
Fixed remuneration is set at a level that is aligned to market benchmarks and reflective of executives’ skills, experience,
responsibilities and performance.
When positioning base pay, the Company presently aims to position aggregate fixed remuneration at approximately the 50th
percentile of the industry benchmark AON Report (an independent, industry recognised report on the gold and mining
industry). This is to ensure that the Company’s remuneration arrangements remain competitive against peer companies to
assist with the retention and attraction of key talent.
Executive remuneration is benchmarked annually to ASX-listed companies of similar size (by market capitalisation), revenue
base, employee numbers and complexity. Specific reference is also made to peer companies within the mining and
exploration sectors.
b. Short-term incentive (“STI”) arrangements
The purpose of the STI plan is to link the achievement of key Company targets with the remuneration received by those
executives charged with meeting those targets. The STI Plan is structured so that executives have the opportunity to earn a
cash and/or equity bonus if certain key performance indicators (“KPIs”) are achieved. The Company must report a surplus of
net cash flows from operating activities for the applicable performance period for any cash STI to be paid.
Each year the Nomination & Remuneration Committee (“Committee”), in conjunction with the board, set KPI targets for
executives. Ordinarily, the KPIs would include measures relating to the Group and the individual, and include environmental,
health & safety, financial, production, exploration, business development and company performance measures.
The maximum target STI opportunity for executives is as follows:
Executive
Maximum STI Opportunity –
Cash
Maximum STI Opportunity –
Equity
Managing Director
50% of fixed remuneration
75% of fixed remuneration
Senior Executives
50% of fixed remuneration
75% of fixed remuneration
22
DIRECTORS’ REPORT
FY21 Performance against STI measures
A summary of the KPI targets set for FY21 and their respective weightings is as follows:
KPI
Weighting Measure
Management Response Performance
50%
Management’s effectiveness in responding to issues
arising during the 2021 financial year
Corporate, Financial & Operational Goals
40%
Performance against annual corporate and financial goals
Company Performance
10%
TSR performance
In assessing KMP performance against the KPI targets during the year, the Committee considered the following
achievements against objectives set at the start of the year:
•
•
•
•
Achieving OH&S objectives;
Achieving environmental objectives;
Delivery of positive exploration results; and
Company’s total shareholder return (“TSR”) performance.
Based on the above assessment, STI payments for FY21 to executives were as follows:
Executive
Maximum STI
opportunity
% STI
Awarded
STI Awarded
– Cash
STI Awarded
– Rights
Value of Rights
Granted ($)
STIP Rights Class
David Quinlivan
Tony Brazier
Andrew Czerw
Brendan Fyfe
Derek Byrne
100%
100%
100%
100%
100%
34.7%
34.7%
34.7%
34.7%
34.7%
-
-
-
-
-
379,846
110,391
259,310
279,156
239,902
74,969
73,826
79,476
68,300
21,344
FY2021 Incentive
Rights
FY2021 Incentive
Rights
FY2021 Incentive
Rights
FY2021 Incentive
Rights
FY2021 Incentive
Rights
c. Long-term incentive (“LTI”) arrangements
Participation in the LTI plan will take the form of a grant of incentives (being performance rights and/or options) under the
Company’s Long Term Incentive Plan. The grant of incentives, including the terms attaching to the grant, will be determined
annually by the board and shall be consistent with the rules of the long term incentive plan. Typically, the vesting period for
incentives granted under the LTI plan will be three years.
23
DIRECTORS’ REPORT
During the 30 June 2021 financial year, the following were issued to KMP under the Company’s employee option plan:
Option/Performance Right Class
RTSR
RTSR
RTSR
TSR
TSR
Other
Other
Underlying security share price at grant date
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
Number of performance rights issued
Valuation per option
Fair value per option class
LTI Zero-priced
Options
LTI Performance
Rights
LTI Performance
Rights
STI Performance
Rights
STI Performance
Rights
STI Performance
Rights
STI Performance
Rights
$0.295
Nil
$0.295
Nil
$0.300
Nil
$0.295
Nil
$0.300
Nil
$0.295
Nil
$0.300
Nil
02/11/2020
02/11/2020
27/11/2020
02/11/2020
27/11/2020
02/11/2020
27/11/2020
30/06/2022
30/06/2023
30/06/2023
30/06/2021
30/06/2021
30/06/2021
30/06/2021
30/06/2024
30/06/2028
30/06/2028
30/06/2026
30/06/2026
30/06/2026
30/06/2026
0.11%
80%
Nil
633,681
$0.154
$97,587
0.13%
80%
Nil
3,586,589
$0.229
$821,329
0.09%
100%
Nil
1,457,443
$0.2611
$380,538
0.11%
80%
Nil
245,565
$0.192
$47,148
0.03%
100%
Nil
109,308
$0.2062
$22,539
0.11%
80%
Nil
2,210,089
$0.295
0.03%
100%
Nil
983,774
$0.30
$651,976
$295,132
The measure of volatility used in the option pricing model is the annualised standard deviation of the continuously compounded rates of return on the historical TSR of Ora Banda and
each constituent of the peer group for the length of time equal to the measurement period. The recent volatilities of the constituents of the peer group and Ora Banda (using comparable
companies) was calculated over a one, two and three-year period.
24
DIRECTORS’ REPORT
Share-based payments
Of the issued performance rights, 5,677,713 are subject to a vesting condition based on Relative Total Shareholder Return
(“RTSR”), whereby the Company’s total shareholder return is measured relative to the returns of a peer group over the
performance period 1 July 2019 to 30 June 2022 (633,681 performance rights) and 1 July 2020 to 30 June 2023 (5,044,032
performance rights). The fair value of the RTSR performance rights was estimated as at the date of grant using a Monte-Carlo
simulation model taking into account the terms and conditions upon which the performance rights were granted. These
performance rights will vest according to the following schedule:
Company’s Performance Relative to
Peer Group
Percentage of Performance Rights
Eligible to Vest
ASX Comparator Group
Below 50th percentile
-%
50th to 75th percentile
50% to 100% on a straight-line pro rata
Above 75th percentile
100%
BC8; BDC; BGL; DCN; GOR; MML; PNR;
PRU; RMS; RSG; SBM; SLR; TRY; WGX;
WMX
Of the issued performance rights, 354,874 are subject to a vesting condition based on TSR, of the Company over the
performance period 1 July 2020 to 30 June 2021. The fair value of the TSR performance rights was estimated as at the date of
grant using a Monte-Carlo simulation model taking into account the terms and conditions upon which the performance
rights were granted. These performance rights will vest according to the following schedule:
Company’s TSR as at 30 June 2021
Percentage of Performance Rights Eligible to Vest
TSR <0%
0%≤TSR<5%
5%≤TSR<10%
10%≤TSR<15%
15%≤TSR<20%
TSR>20%
-%
10%
25%
50%
75%
100%
The remaining 3,193,862 performance rights are subject to a vesting condition based on the achievement of the Company’s
performance metrics (“Other”) over the performance period 1 July 2020 to 30 June 2021. The fair value of these performance
rights was estimated as at the date of grant using the Black-Scholes option pricing methodology taking into account the
terms and conditions upon which the performance rights were granted. These performance rights will vest according to the
following schedule:
Company’s TSR as at 30 June 2021
Percentage of Performance Rights Eligible to Vest
Ora Banda corporate, financial & operational goals
Ora Banda management response
1,419,494
1,774,368
During the year 218,239 fully paid ordinary shares were issued to Brendan Fyfe (General Counsel) as part of the Company’s
employee incentive scheme. $0.06 million was expensed in relation to these shares.
At the Company’s annual general meeting held on 27 November 2020, shareholders approved the issue of 1,414,192 FY20 STI
fully paid ordinary shares to the Company’s Managing Director, David Quinlivan. This represented 86.1% of the maximum STI
opportunity (equity) component of Mr Quinlivan’s remuneration package. $0.42 million was expensed during the year in
relation to the shares. The shares were issued on 14 December 2020.
25
DIRECTORS’ REPORT
d. Contracts with Key Management Personnel
David Quinlivan – Managing Director
Mr Quinlivan is employed under a Contract for Services with Borden Mining Services Pty Limited which commenced on 1
December 2018. Mr Quinlivan received the following remuneration:
• Monthly retainer fee of $34,675 inclusive of superannuation, together with reasonable out of pocket expenses incurred
on a direct basis;
• Retention bonus of $150,000 subject to continued service as the Managing Director to 30 June 2021;
• Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option
scheme is at the full discretion of the board and may be amended from time to time.
The term of the agreement was initially six months from the commencement date being 1 December 2018. Mr Quinlivan
agreed to an ongoing role as Managing Director to 30 June 2021.
Either party may terminate the contract and term upon the provision of 60 days’ written notice, or such shorter period
remaining on the contract period being not less than 30 days.
Effective from 1 July 2021, Mr Quinlivan’s monthly fee reduced to $10,083.33 as a non-executive director.
Peter Nicholson – Chief Executive Officer
Mr Nicholson is employed under an executive employment agreement which commenced on 2 April 2021. Mr Nicholson
received the following remuneration:
Fixed remuneration of $550,000 per annum inclusive of superannuation;
•
• Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option
scheme is at the full discretion of the board and may be amended from time to time.
The termination provisions of the agreement are:
For no cause or incapacity: twelve months’ notice period (or any greater period required by the Fair Work Act 2009);
•
• Redundancy: redundancy pay in accordance with applicable legislation;
•
Serious misconduct or fraud: no notice period would be provided.
Tony Brazier – Chief Financial Officer & Company Secretary
Mr Brazier is employed under an executive employment agreement which commenced on 7 January 2019. Mr Brazier
received the following remuneration:
Fixed remuneration of $355,875 per annum comprising a base salary of $325,000 and 9.5% superannuation;
•
• Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option
scheme is at the full discretion of the board and may be amended from time to time.
The termination provisions of the agreement are:
For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
•
• Redundancy: 30% of the fixed remuneration (or greater as required by the Fair Work Act 2009);
•
Serious misconduct or fraud: no notice period would be provided.
Effective from 1 July 2021, Mr Brazier’s fixed remuneration was increased to $364,650 per annum comprising a base salary
of $331,500 per annum and 10% superannuation.
26
DIRECTORS’ REPORT
Andrew Czerw – General Manager – Resource Development
Mr Czerw is employed under an employment agreement which commenced on 10 April 2014. Mr Czerw received the following
remuneration:
Fixed remuneration of $383,250 per annum comprising a base salary of $350,000 and 9.5% superannuation;
•
• Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option
scheme is at the full discretion of the board and may be amended from time to time.
The termination provisions of the agreement are:
For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
•
• Redundancy: 30% of the fixed remuneration (or greater as required by the Fair Work Act 2009);
•
Serious misconduct or fraud: no notice period would be provided.
Effective from 1 July 2021, Mr Czerw’s fixed remuneration was increased to $392,000 per annum comprising a base salary of
$357,000 per annum and 10% superannuation.
Brendan Fyfe – General Counsel
Mr Fyfe is employed under an executive employment agreement which commenced on 6 January 2020. Mr Fyfe received the
following remuneration:
Fixed remuneration of $328,500 per annum comprising a base salary of $300,000 and 9.5% superannuation;
•
• Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option
scheme is at the full discretion of the board and may be amended from time to time.
The termination provisions of the agreement are:
For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
•
• Redundancy: 30% of the fixed remuneration (or greater as required by the Fair Work Act 2009);
•
Serious misconduct or fraud: no notice period would be provided.
Effective from 1 July 2021, Mr Fyfe’s fixed remuneration increased to $336,600 per annum comprising a base salary of
$306,000 per annum and 10% superannuation.
Derek Byrne – Chief Operating Officer
Mr Byrne is employed as the Chief Operating Officer under an executive employment agreement which commenced on 1
June 2021. Mr Byrne received the following remuneration:
Fixed remuneration of $383,250 per annum comprising a base salary of $350,000 and 9.5% superannuation;
•
• Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option
scheme is at the full discretion of the board and may be amended from time to time.
The termination provisions of the agreement are:
For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
•
• Redundancy: redundancy pay in accordance with applicable legislation;
•
Serious misconduct or fraud: no notice period would be provided.
Effective from 1 July 2021, Mr Byrne’s fixed remuneration increased to $385,000 per annum comprising a base salary of
$350,000 per annum and 10% superannuation.
27
DIRECTORS’ REPORT
e. Non-executive Directors’ Remuneration
The Company’s policy is to remunerate non-executive directors (“NEDs”) at market rates (for comparable companies) for
their time commitment and responsibilities. To align their interests with those of shareholders, NEDs are encouraged to
hold shares in the Company. The amount of aggregate remuneration sought to be approved by shareholders and the fee
structure is reviewed annually against fees paid to NEDs of comparable companies.
Payments reflect the demands that are made on and the responsibilities of NEDs. NEDs’ fees and payments are reviewed
annually by the board. The Company’s constitution and ASX Listing Rules specify that the NEDs’ remuneration fee pool shall
be determined from time to time at a general meeting of shareholders.
In accordance with current corporate governance practices, the structure for the remuneration of NEDs and senior
executives is separate and distinct. Shareholders approve the maximum aggregate remuneration for NEDs. On 7 June 2019
shareholders approved the current limit of $850,000. The board determines the actual payments to directors. The
remuneration of NEDs (inclusive of all committee fees and exclusive of superannuation) for the year ended 30 June 2021
have been set at $165,000 for the Chair and $110,000 for other NEDs.
28
DIRECTORS’ REPORT
f. Key Management Personnel Remuneration Table
The following table discloses details of the nature and amount of each element of the emoluments of each director of Ora
Banda and each of the senior executives determined a KMP for the years ended 30 June 2021 and 30 June 2020.
Short Term
Post
employ-
ment
Other long
term
Share-
based
Payments
KMP
Year
Salary &
Fees
STI
(Cash)
STI
(Equity)4
Superann-
uation
Leave
Accrued
Rights4
Total
Performance
related Rem-
uneration
$
$
$
$
$
$
$
%
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
Non-executive
Directors
Peter Mansell
Keith Jones
Mark Wheatley
Executive
Director
David Quinlivan3
Senior
Executives
Peter Nicholson1
Tony Brazier
Andrew Czerw
Brendan Fyfe
Derek Byrne2
Total
165,000
121,756
110,000
81,018
110,000
81,018
-
-
-
-
-
-
-
-
-
-
-
-
380,000
150,000
110,391
300,000
-
-
15,675
11,567
10,450
7,697
10,450
7,697
36,100
28,500
-
-
-
-
-
-
-
-
52,868
233,543
173,995
307,318
35,245
155,695
115,997
204,712
35,245
155,695
115,997
204,712
196,993
873,484
377,586
706,086
-
-
146,006
-
5,355
10,046
-
130,605
-
325,000
275,000
350,000
2020
267,500
2021
300,000
2020
135,738
2021
2020
29,167
-
-
-
-
-
-
-
-
-
-
-
-
-
73,826
82,442
79,476
77,945
132,681
125,930
1,779
-
-
34,998
22,002
36,736
21,927
30,894
10,501
2,771
-
8,792
175,909
618,525
15,057
199,734
594,235
14,093
53,881
14,817
12,001
2,805
-
173,707
654,012
188,800
610,053
182,896
661,288
65,506
349,676
4,241
40,763
-
-
2021
1,899,772
150,000
398,153
183,429
50,553
857,104
3,539,011
2020
1,262,030
-
286,317
109,891
80,939
1,237,615
2,976,792
23%
57%
23%
57%
23%
57%
52%
53%
-
-
40%
47%
39%
44%
48%
55%
15%
-
40%
51%
1. Peter Nicholson was appointed Chief Executive Officer on 2 April 2021
2. Derek Byrne was appointed Chief Operating Officer on 1 June 2021
3. The cash STI relates to a retention bonus contingent on Mr Quinlivan being Managing Director to 30 June 2021
4. The fair value of performance rights is calculated at the date of grant using the Black-Scholes and Monte-Carlo simulation option pricing
models and allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion
of the fair value of the performance rights recognised as an expense in each reporting period. Share-based awards are recognised as
an expense straight-line over the expected time to vesting
29
DIRECTORS’ REPORT
5. LINK BETWEEN COMPANY PERFORMANCE, SHAREHOLDER WEALTH GENERATION AND REMUNERATION
The Nomination & Remuneration Committee applies a series of criteria to assess the performance of the Company. Criteria
used in this assessment was execution of development projects and exploration success as well as the following metrics in
respect of the current and previous financial years.
Criteria
Closing cash balances at 30 June ($m)
Closing share price at 30 June ($)
2021
24.22
0.15
2020
10.58
0.27
2019
14.14
0.16
2018
0.01
0.11
2017
0.04
0.37
The Company’s remuneration practices reflect the achievement of certain of the Company and KMP performance objectives.
The Company’s overall objective has been to continue to define resources and reserves, complete the refurbishment of the
processing plant and return the Company back to production.
6. KEY MANAGEMENT PERSONNEL HOLDINGS
Option and Performance Rights holdings of Key Management Personnel
30 June 2021
Balance at
1 July 2020
Granted as
compen-
sation1
Rights/
Options
exercised2
Rights/
Options
forfeited3
Rights/
Options
expired
Balance at
30 June 2021
Vested
during the
year
Vested and
exercisable
at 30 June
2021
Non-executive
Directors
Peter Mansell
Keith Jones
Mark Wheatley
Executive Director
1,185,185
790,123
790,123
-
-
-
(592,593)
(395,062)
(395,062)
-
-
-
David Quinlivan
4,346,790
2,550,525
(395,062)
(823,237)
Senior Executives
Peter Nicholson
-
-
-
-
Tony Brazier
Andrew Czerw
Brendan Fyfe
Derek Byrne4
3,247,384
3,085,974
2,461,481
830,406
1,741,214
(1,129,648)
1,874,431
(1,068,031)
2,244,539
(740,767)
-
-
(486,908)
(524,171)
(450,466)
(140,771)
Total
16,737,466
8,410,709
(4,716,225)
(2,425,553)
-
-
-
-
-
-
-
-
-
-
592,592
395,602
395,602
592,593
395,062
395,062
-
-
-
5,679,016
869,846
869,846
-
3,372,042
3,368,203
3,514,787
689,635
-
870,421
856,934
239,902
74,969
-
259,310
279,156
239,902
74,969
18,006,397
4,294,789
1,723,183
1.
2.
Performance rights granted as compensation represents “RTSR” and “Other” performance rights issued under the terms
outlined above
All options and performance rights were exercised at nil price and each KMP received a quantity of ordinary shares equivalent
to the number of options and performance rights exercised
3. On 30 June 2020, 34.7% of FY21 STIP performance rights vested and the remaining 65.3% FY21 STIP performance rights were
forfeited
4. Derek Byrne was appointed Chief Operating Officer on 1 June 2021
30
DIRECTORS’ REPORT
Value of Options and Performance Rights Exercised and Forfeited
The following table discloses the fair value of options and performance rights when exercised or forfeited, calculated as
the number of options/rights multiplied by the share price on the dates of which those options/rights were exercised or
forfeited:
30 June 2021
Exercised
Value on date of
exercise ($)
Forfeited
Value on date of
forfeiture ($)
Non-Executive
Directors
Peter Mansell
Keith Jones
Mark Wheatley
Executive Director
David Quinlivan
Senior Executives
Peter Nicholson1
Tony Brazier
Andrew Czerw
Brendan Fyfe
Derek Byrne
Total
592,593
395,062
395,062
88,889
59,259
59,259
-
-
-
-
-
-
395,062
59,259
823,237
123,486
-
1,129,648
1,068,031
740,767
-
4,716,225
-
244,635
231,291
218,526
-
961,118
-
486,908
524,171
450,466
140,771
2,425,553
-
73,036
78,626
67,570
21,116
363,834
Ordinary Shareholdings of Key Management Personnel
30 June 2021
Balance at
1 July 2020
Purchases
Other
On the exercise
of
options/rights
Balance at
30 June 2021
Non-executive Directors
Peter Mansell
Keith Jones
Mark Wheatley
Executive Director
David Quinlivan
Senior Executives
Peter Nicholson1
Tony Brazier
Andrew Czerw
Brendan Fyfe
Derek Byrne2
Total
3,814,815
1,818,396
1,437,497
1,323,528
202,046
159.722
-
-
-
592,593
395,062
395,062
5,730,936
2,415,504
1,832,719
1,761,729
1,152,416
1,414,192
395,062
4,723,399
-
671,111
875,556
-
16,297
-
108,696
200,000
-
-
-
-
-
218,240
-
-
1,129,648
1,068,030
740,767
-
-
1,909,455
2,143,586
959,007
16,297
10,395,401
2,986,846
1,632,432
4,716,224
19,730,903
Peter Nicholson was appointed Chief Executive Officer on 2 April 2021
1.
2. Derek Byrne was appointed Chief Operating Officer on 1 June 2021
There were no alterations to the terms and conditions of performance rights granted as remuneration since their grant date.
31
DIRECTORS’ REPORT
Loans to Key Management Personnel
There were no loans to KMP during the financial year (30 June 2020: Nil).
Other transactions with Directors
Other than as described in this Remuneration Report, there were no other transactions between the Group and directors or
their related entities.
End of REMUNERATION REPORT (AUDITED)
ENVIRONMENTAL REGULATIONS
The Group is subject to significant environmental regulation in respect to its mineral exploration activities. These
obligations are regulated under relevant government authorities within Australia. The Group is a party to exploration and
mine development licences. Generally these licences specify the environmental regulations applicable to exploration and
mining operations in the respective jurisdictions. The Group aims to ensure that it complies with the identified regulatory
requirements in each jurisdiction in which it operates.
Compliance with environmental obligations is monitored by the directors. No environmental breaches have been notified
to the Group by any government agency during the year ended 30 June 2021.
WARDENS COURT PROCEEDINGS
The Company (and its wholly owned subsidiaries) is a party to various proceedings in the Wardens Court pursuant to which
third parties are seeking to challenge its title to various mining tenements by way of forfeiture and other proceedings. The
directors are confident that the Company (and its wholly owned subsidiaries) will be successful in defending these
proceedings. There were no proceedings against any subsidiary that could bring into doubt whether the Company controlled
any of its subsidiaries within the Group.
PROCEEDINGS ON BEHALF OF THE COMPANY
Other than as referred to above, no person has applied for leave of court or to bring proceedings on behalf of the Company
or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the
Company, for all or any part of those proceedings.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the Group are important. The directors consider the general standard of independence for
auditors imposed by the Corporations Act 2001 before any engagements are agreed.
No non-audit services were provided by KPMG, the Group’s auditor, during the year (30 June 2020: $Nil). Further details of
remuneration of the auditor are set out at Note 19.
AUDITOR INDEPENDENCE
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is included
immediately following the Directors’ Report and forms part of this Directors’ Report.
32
DIRECTORS’ REPORT
INDEMNIFICATION OF AUDITOR
The Company has not provided any insurance or indemnity to the auditor of the Company.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into indemnity agreements with each of the directors and officers of the Company. Under the
agreements, the Company will indemnify those officers against certain claims or for any expenses or costs which may arise
as a result of work performed in their respective capacities as officers of the Company or any related entities.
The Company has taken out an insurance policy insuring directors and officers of the Company against any liability arising
from a claim brought by a third party against the Company or its directors or officers, and against liabilities for costs and
expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in their capacity as
a director or officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company.
During the year, the Company paid premiums in respect of the above insurance policy. The contract prohibits the disclosure
of the nature of the liabilities and/or the amount of the premium.
ROUNDING OF AMOUNTS
In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the
Directors’ Report and in the financial report have been rounded to the nearest one thousand dollars, or in certain cases, to
the nearest dollar (where indicated).
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
Peter Nicholson
Managing Director
Perth, Western Australia
30 September 2021
33
ANNUAL MINERAL RESOURCE AND ORE RESERVE STATEMENT
In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral Resources and Ore Reserves at least
annually. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year balance date. If
there are any material changes to its Mineral Resources or Ore Reserves over the course of the year, the Company is required
to promptly report these changes.
Mineral Resource at 30 June 2021
PROJECT
GOLDEN EAGLE
LIGHTS OF ISRAEL
MAKAI SHOOT
WAIHI
Underground
Open Pit
TOTAL
Central Davyhurst Subtotal
LADY GLADYS
RIVERINA AREA Underground
Open Pit
TOTAL
Open Pit
BRITISH LION
Underground
TOTAL
Open Pit
FOREHAND
Underground
TOTAL
Open Pit
SILVER TONGUE Underground
TOTAL
SUNRAYSIA
Riverina-Mulline Subtotal
Open Pit
SAND KING
Underground
TOTAL
Open Pit
MISSOURI
Underground
TOTAL
PALMERSTON / CAMPERDOWN
BLACK RABBIT
Siberia Subtotal
CALLION
Underground
Open Pit
TOTAL
Callion Subtotal
FEDERAL FLAG
SALMON GUMS
WALHALLA
WALHALLA NORTH
MT BANJO
MACEDON
Walhalla Subtotal
IGUANA
LIZARD
Lady Ida Subtotal
Cut
Off
2.0
3.0
1.0
0.5
2.0
1.0
0.5
2.0
0.5
2.0
0.5
2.0
0.5
2.0
1.0
0.5
2.0
0.5
2.0
1.0
1.0
0.5
2.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
MEASURED
INDICATED
INFERRED
TOTAL MATERIAL
('000t)
(g/t Au)
('000t)
(g/t Au)
('000t)
(g/t Au)
('000t)
(g/t Au)
('000oz.)
73
-
-
-
-
-
-
-
86
-
86
-
-
-
-
-
-
-
-
-
-
5
-
-
-
-
-
-
-
2.0
-
2.0
-
-
-
-
-
-
-
-
-
-
86
-
2.0
-
-
-
-
-
-
-
-
-
-
-
-
-
32
-
-
-
-
-
32
-
106
106
-
-
-
-
-
-
-
-
-
-
-
-
2
-
-
-
-
-
2.0
-
4
4.0
235
74
1,985
1,948
188
2,136
4,430
1,858
1,829
390
2,219
386
36
422
-
-
-
-
-
-
175
4,674
1,252
438
1,690
1,453
364
1,817
118
-
3,625
241
255
496
496
112
199
448
94
109
-
962
690
75
765
4.1
4.3
2.0
2.4
3.7
2.5
2.4
1.9
1.8
5.2
2.4
1.6
3.2
1.7
-
-
-
-
-
-
2.1
2.0
3.4
3.7
3.5
3.4
3.4
3.4
2.3
-
3.4
3.7
6.0
4.9
4.9
1.8
2.8
1.8
2.4
2.3
-
2.1
2.1
3.7
2.3
97
180
153
131
195
326
756
190
34
618
652
17
3
20
691
153
844
127
77
204
318
2,228
128
698
826
17
258
275
174
434
1,709
28
156
184
184
238
108
216
13
126
186
887
2,032
13
2,045
3.7
4.2
1.7
2.9
4.0
3.5
3.3
2.4
2.6
5.9
5.7
1.6
3.8
2.0
1.5
2.5
1.7
2.3
4.5
3.1
2.0
3.1
3.3
3.8
3.7
3.5
3.4
3.4
2.4
3.5
3.5
1.6
5.5
4.9
4.9
2.5
2.9
1.4
3.0
1.4
1.8
2.0
2.0
2.8
2.0
405
254
2,138
2,079
383
2,462
5,259
2,048
1,949
1,008
2,957
403
39
442
691
153
844
127
77
204
493
6,988
1,380
1,136
2,516
1,470
622
2,092
292
434
5,334
269
411
680
680
382
307
664
107
235
186
1,881
2,722
194
2,916
4.1
4.2
2.0
2.4
3.8
2.6
2.5
1.9
1.9
5.6
3.2
1.6
3.8
1.8
1.5
2.5
1.7
2.3
4.5
3.1
2.0
2.4
3.4
3.7
3.5
3.4
3.4
3.4
2.4
3.5
3.4
3.5
5.8
4.9
4.9
2.3
2.8
1.7
2.5
1.8
1.8
2.1
2.0
3.8
2.1
53
34
137
159
47
206
431
125
117
183
300
21
5
25
33
12
46
9
11
21
32
548
151
136
287
159
68
227
23
49
585
30
77
107
107
28
28
36
9
14
11
125
175
24
199
Davyhurst Total
200
2.9
15,000
BALDOCK
-
-
-
136
2.6
18.6
7,800
0
2.8
0.0
23,100
136
2.7
18.6
2,000
81
34
ANNUAL MINERAL RESOURCE AND ORE RESERVE STATEMENT
METEOR
WHINNEN
Mount Ida Total
-
-
-
-
-
-
-
-
-
-
-
-
143
39
9.3
13.3
143
39
9.3
13.3
43
17
140
18.6
180
10.2
320
13.8
140
Combined Total
200
2.9
15,100
2.7
8,000
3.0
23,400
2.8
2,140
1.
2.
3.
4.
The Missouri, Sand King, Riverina Area, British Lion, Waihi, Callion, Golden Eagle, Forehand and Silver Tongue Mineral Resources have
been updated in accordance with all relevant aspects of the JORC code 2012, and initially released to the market on 15 December 2016
& 26 May 2020 (Missouri), 3 January 2017 & 26 May 2020 (Sand King), 2 December 2019 & 26 May 2020 (Riverina), 4 February 2020 (Waihi),
15 May 2020 & 29 June 2020 (Callion), 8 April 2020 (Golden Eagle) and 9 October 2020 (Riverina South).
All Mineral Resources listed above, with the exception of the Missouri, Sand King, Riverina Area, British Lion, Waihi, Callion, Golden
Eagle, Forehand and Silver Tongue Mineral Resources, were prepared previously and first disclosed under the JORC Code 2004 (refer
Swan Gold Mining Limited Prospectus released to the market on 13 February 2013). These Mineral Resources have not been updated in
accordance with JORC Code 2012 on the basis that the information has not materially changed since it was first reported.
The Riverina Area, British Lion, Waihi, Sand King, Missouri, Callion, Forehand and Silver Tongue Open Pit Mineral Resource Estimates
are reported within a A$2,400/oz pit shell above 0.5g/t. The Riverina Area, British Lion, Waihi, Sand King, Missouri, Callion, Forehand,
Silver Tongue and Golden Eagle Underground Mineral Resource Estimates are reported from material outside a A$2,400 pit shell and
above 2.0 g/t.
Previously, Riverina South included Riverina South and British Lion Resources. Currently Riverina South is included in the Riverina Area
Resources as it is contiguous with Riverina mineralisation. British Lion is now quoted separately.
5. Resources are inclusive of in-situ ore reserves and are exclusive of surface stockpiles.
6.
The values in the above table have been rounded.
Ore Reserve at 30 June 2021
Total Ore Reserves at 30 June 2021 are estimated of 6.2 Mt @ 2.4 g/t Au for 470,000 ounces of contained gold.
PROJECT 1,2,9
Sand King 3,4
Missouri 3,4
Riverina 3,4,5
Golden Eagle 6,7
Waihi 3,4
Callion 3,4
TOTAL
PROVED
PROBABLE
TOTAL MATERIAL
(‘000t)
(g/t Au)
(‘000t)
(g/t Au)
(‘000t)
(g/t Au)
(‘000oz.)
20
340
50
0.9
1.1
3.2
410
1.4
1,200
1,600
1,300
85
1,300
230
5,800
2.7
2.7
1.7
3.6
2.4
2.7
2.4
1,200
1,600
1,700
140
1,300
230
6,200
2.7
2.6
1.6
3.5
2.4
2.7
2.4
110
130
86
15
110
20
470
1.
2.
3.
4.
5.
6.
7.
8.
9.
The table contains rounding adjustments to two significant figures and does not total exactly.
This Ore Reserve was estimated from practical mining envelopes and the application of modifying factors for mining dilution and
ore loss.
For the open pit Ore Reserve dilution skins were applied to the undiluted LUC Mineral Resource estimate at zero grade. The in-pit
global dilution is estimated to be 31% at Sand King, 45% at Missouri, 24% at Riverina, 13% at Waihi and 26% at Callion all of which
were applied at zero grade. The lower dilution at Riverina, Waihi and Callion reflecting the softer lode boundary and allows for
inherent dilution within the lode wireframe. All Inferred Mineral Resources were considered as waste at zero grade.
The Open Pit Ore Reserve was estimated using incremental cut-off grades specific to location and weathering classification. They
range from 0.67 g/t to 0.80 g/t Au and are based on a price of A$2200 per ounce and include ore transport, processing, site
overheads and selling costs and allow for process recovery specific to the location and domain and which range from 85% (Sand
King fresh ore) to 95%.
Approximately 100,000 t at 1.6 g/t at Riverina was downgraded from Proved to Probable due to current uncertainty surrounding
reconciliations experienced during the implementation phase.
The underground Ore Reserve was estimated from practical mining envelopes derived from expanded wireframes to allow for
unplanned dilution. A miscellaneous unplanned dilution factor of 5% at zero grade was also included. The global dilution factor
was estimated to be 52% with zero dilution grade.
The underground Ore Reserve was estimated using stoping cut-off of 2.1 g/t Au which allows for ore drive development, stoping
and downstream costs such as ore haulage, processing, site overheads and selling costs. An incremental cut-off grade of 0.66 g/t
Au was applied to ore drive development and considers downstream costs only. Cut-off grades were derived from a base price of
A$2200 per ounce and allow for process recovery of 92%.
For Golden Eagle, approximately 35,000 t at 3.9 g/t of material was classified as Proved and derived from the Measured portion of
the Mineral Resource. The balance of the Proved material was contained within surface stockpiles.
The Ore Reserve is inclusive of surface stockpiles above the relevant incremental cut-off and total 370,000 t at 1.1 g/t. All surface
stockpiles were classified as Proved.
35
ANNUAL MINERAL RESOURCE AND ORE RESERVE STATEMENT
Governance Arrangements and Internal Controls
Ora Banda Mining has ensured that the Mineral Resources and Ore Reserves quoted are subject to good governance
arrangements and internal controls. The Mineral Resources and Ore Reserves reported have been generated by internal
Company geologists, who are experienced in best practice in modelling and estimation methods. The competent person has
also undertaken reviews of the quality and suitability of the underlying information used to generate the resource
estimation. In addition, Ora Banda Mining’s management carry out regular reviews and audits of internal processes and
external contractors that have been engaged by the Company.
Competent Person Statement
The information in this announcement that relates to exploration results, and the Riverina, Riverina South, British Lion,
Waihi, Golden Eagle, Callion, Sand King and Missouri Mineral Resources is based on information compiled under the
supervision of Mr Ross Whittle-Herbert, an employee of Ora Banda Mining Limited, who is Member of the Australian Institute
of Geoscientists. Mr Whittle-Herbert has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Whittle-
Herbert consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.
Sand King, Missouri, Riverina, Riverina South, British Lion, Waihi, Golden Eagle and Callion Mineral Resources are reported
in accordance with the JORC 2012 code. The Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market announcements dated 15 December 2016 (Missouri) and
3 January 2017 (Sand King), 2 December 2019 (Riverina), 4 February 2020 (Waihi), 8 April 2020 (Golden Eagle), 15 May 2020
(Callion) and restated in market announcement “Davyhurst Gold Project - Ore Reserve Update” dated 26 May 2020.
Mineral Resources other than Sand King, Missouri, Riverina, Riverina South, British Lion, Waihi, Golden Eagle and Callion
were first reported in accordance with the JORC 2004 code in Swan Gold Mining Limited Prospectus released to the market
on 13 February 2013. Mineral Resources other than Sand King, Missouri, Riverina, Riverina South, British Lion, Waihi, Golden
Eagle and Callion have not been updated to comply with JORC Code 2012 on the basis that the information has not materially
changed since it was first reported.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Geoff Davidson, who is
an independent mining engineering consultant, and has sufficient relevant experience to advise Ora Banda Mining Limited
on matters relating to mine design, mine scheduling, mining methodology and mining costs. Mr Davidson is a Fellow
member of the of the Australian Institute of Mining and Metallurgy. Mr Davidson is satisfied that the information provided in
this statement has been determined to a feasibility level of accuracy or better, based on the data provided by Ora Banda
Mining Limited. Mr Davidson consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears.
36
AUDITOR’S INDEPENDENCE DECLARATION
37
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Notes
3
4
5
6(a)
11
6(b)
6(c)
6(c)
7
30 June 2021
$’000
30 June 2020
$’000
25,115
(25,938)
(823)
44
(10,904)
(6,125)
-
(3,942)
(21,750)
88
(622)
(22,284)
-
(22,284)
-
-
-
254
(6,826)
(4,810)
7,311
(2,567)
(6,638)
195
(232)
(6,675)
-
(6,675)
Revenue
Cost of sales
Gross profit
Other income
General and administration expenses
Exploration and evaluation expenses
Impairment (expense)/reversal
Other operating expenses
Operating (loss)/profit
Finance income
Finance expense
(Loss)/profit before income tax expense
Income tax (expense)/benefit
(Loss)/profit for the year
Total comprehensive income for the year
(22,284)
(6,675)
Total comprehensive (loss)/income attributable to:
Equity holders of the Parent
Basic (loss)/earnings per share
Diluted (loss)/earnings per share
(22,284)
(2.73)
(2.73)
27
27
(6,675)
(0.12)
(0.12)
The above statement should be read in conjunction with the accompanying notes.
38
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Notes
30 June 2021
$’000
30 June 2020
$’000
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total current assets
Non-current assets
Receivables and other assets
Exploration, evaluation and development expenditure
Property, plant and equipment
Right-of-use assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non-current liabilities
Trade and other payables
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
8
9
10
9
11
12
13
15
14
16
15
14
16
17
18
24,220
1,396
20,312
639
46,567
3,085
58,538
36,863
27,455
125,941
172,508
21,050
9,178
1,036
31,264
75
18,010
21,142
39,227
70,491
102,017
10,577
1,408
55
1,164
12,040
30
44,841
14,558
381
59,810
71,850
3,880
210
370
4,460
100
182
19,077
19,359
23,819
48,031
443,696
2,871
(344,550)
102,017
368,194
2,103
(322,266)
48,031
The above statement should be read in conjunction with the accompanying notes.
39
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Contributed
equity
Accumulated
losses
Share-
based
payments
reserve
Consolidated
Notes
$’000
$’000
$’000
Fair value of
investments
in listed
equities
reserve
$’000
Total
$’000
At 1 July 2019
350,519
(328,181)
12,279
751
35,368
-
-
(6,675)
(6,675)
-
-
-
-
(6,675)
(6,675)
Loss for the year
Total comprehensive income
Issue of ordinary shares (net of
costs)
Share-based payments
Transfer from fair value reserve
Lapsed share-based payments
Transactions with owners in
capacity of owners
17
28
63,351
-
-
-
63,351
-
-
751
11,839
-
387
-
(11,839)
-
387
At 30 June 2020
368,194
(322,266)
2,103
Loss for the year
Total comprehensive loss
Issue of ordinary shares (net of
costs)
Options/rights exercised
Share-based payments
Transactions with owners in
capacity of owners
-
-
(22,284)
(22,284)
17
17
28
72,161
1,976
1,365
75,502
-
-
-
-
-
-
-
-
768
768
At 30 June 2021
443,696
(344,550)
2,871
The above statement should be read in conjunction with the accompanying notes.
40
-
-
(751)
-
-
-
-
-
-
-
-
-
-
63,351
387
-
-
63,738
48,031
(22,284)
(22,284)
72,161
1,976
2,133
79,270
102,017
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
30 June 2021
30 June 2020
Notes
$’000
$’000
Cash flows from operating activities
Receipts from customers
Other receipts
Payments to suppliers and employees
Interest paid
Net cash flows used in operating activities
26
Cash flows from investing activities
Payments for development expenses
Payments for property, plant and equipment
Payments for other assets
Receipts from pre commercial production sales
Refund of deposits
Proceeds from sale of plant and equipment
Interest received
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from the issue of shares
Payments for costs of raising capital
Proceeds from the exercise of options
Repayment of lease liabilities
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at the beginning of the year
17
17
17
25,115
44
(36,053)
(428)
(11,322)
(24,292)
(23,136)
(4,146)
7,154
1,091
13
82
(43,234)
76,093
(3,932)
1,976
(5,938)
68,199
13,643
10,577
-
205
(10,954)
-
(10,554)
(9,412)
(1,092)
-
-
-
49
195
(10,455)
18,500
(825)
-
(231)
17,444
(3,565)
14
Cash and cash equivalents at the end of the year
8
24,220
10,577
The above statement should be read in conjunction with the accompanying notes.
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
Ora Banda Mining Limited (“the Company”) and its subsidiaries (“the Group”) are a for-profit group of companies incorporated
and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange (“ASX”). The nature of the
operations and principal activities of the Group are described in the Directors’ Report.
The consolidated financial statements were approved by the board of directors on 30 September 2021. The consolidated
financial report is a general purpose financial report which has been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards
Board (“AASB”). The financial report has been prepared on a historical cost basis, except for certain financial assets and
liabilities which are measured on a fair value basis. The consolidated financial report is presented in Australian dollars,
which is the functional and presentation currency of the Company and its subsidiaries.
Compliance with Australian Accounting Standards ensures that the consolidated financial statements and notes comply with
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191
and in accordance with that Instrument, all financial information has been rounded off to the nearest thousand dollars,
unless otherwise stated.
(a)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of controlled companies
(subsidiaries) at year end is disclosed in Note 24.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies.
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements.
(b)
Fair value measurement
A number of the Group’s accounting policies and disclosures require the determination of fair value for both financial and non-
financial assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date in the principal or, in its absence, the most
advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk.
Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When
applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to
that asset or liability.
When measuring the fair value of an asset or liability, the Group uses observable market data as far as possible. Fair values are
categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
•
•
•
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (ie:
as prices) or indirectly (ie: derived from prices);
Level 3: Inputs for the asset or liability that are not based on observable market data.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the
fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that
is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end
of the reporting period during which the change has occurred.
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(c)
New accounting standards and standards not yet effective
The Company has adopted all new standards and pronouncements applicable to the reporting period. Any new, revised or
amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted and are not
expected to have a material impact on the Group.
(d)
Commercial production
Amortisation of capitalised mine development costs begins when pre-determined levels of operating capacity intended by
management have been achieved. The determination of when a mine is in the position for it to be capable of operating in the
manner intended by management (known as “commercial production”) is a matter of significant judgement.
Management considers several factors when determining when a mining operation has achieved the intended levels of
operating capacity, including:
• When the mine is substantially complete and ready for its intended use;
• When the mine has the ability to sustain ongoing production at a steady or increasing level;
• When the mine has reached a level of pre-determined percentage of design capacity;
• When mineral recoveries are at or near intended production levels; and
• When a reasonable period of testing of mining and processing operations have been successfully completed.
Once commercial production is declared, the capitalisation of certain mine development and construction costs ceases.
Subsequent costs are regarded as either forming part of the cost of inventories or are expensed. However, any costs relating to
mining asset additions or improvements, or mineable reserve development, are assessed to determine whether capitalisation
is appropriate.
In March 2021 the board declared commercial production had been achieved as at 31 March 2021.
(e)
Going concern
The consolidated financial report has been prepared on a going concern basis, which presumes the continuity of normal
business activities, the realisation of assets and the settlement of liabilities in the ordinary course of business.
At 30 June 2021 the Company had cash and bullion on hand of $25.94 million and a net working capital surplus of $15.3 million.
It incurred a loss after income tax of $22.28 million for the year ended 30 June 2021. Net cash outflows from operating
activities were $11.32 million and cash outflows from investing activities were $43.23 million, reflecting the commencement
of mining activities and refurbishment of the Davyhurst processing plant and associated infrastructure undertaken during
the year.
During the year the Company raised the following funds:
•
•
$21.01 million in June 2021, through the issue of 123.6 million ordinary shares.
$55.08 million in July and September 2020, through the issue of 239.5 million ordinary shares; and
Further, on 23 September 2021 the Company completed the sale of its Mt Ida gold assets to TNT Mines Limited (ASX:TIN),
subsequently renamed Red Dirt Metals Limited (ASX:RDT), for consideration of $11,000,000 before transaction costs.
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In addition to the industry wide problem of human resourcing, operations were affected by the following:
Power outages;
• Materials handling properties of Riverina oxide ore;
•
•
• Higher levels of maintenance.
Crusher screens in the SKALA double deck unit; and
The directors consider the preparation of the Company’s consolidated financial report on a going concern basis to be
appropriate based on cashflow forecasts. These forecasts rely on the attainment of planned production from open pit and
underground mining operations, together with processing plant activities and costs of production. Critical to the cash flow
forecast is achieving forecast gold production and pricing.
The Company has a reasonable expectation that such production forecasts will be achieved through a combination of
improved ore characteristics and processing plant stability.
The realisation of forecast gold production at anticipated pricing and costs of production, or ability to raise additional
funding, is key to the Company’s ability to continue as a going concern. The directors have a reasonable expectation that
forecast gold production can be achieved or, if required, additional funding can be secured.
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and reported amounts of assets and liabilities, income and expenses.
Judgements and estimates which are material to the financial report are found in the following notes:
• Note 7: Income tax – consideration to recognition of deferred tax assets;
• Note 9: Trade receivables – provision for expected credit losses on trade and other receivables;
• Note 11: Amortisation of development expenditure – estimation of future mineable inventory and future development
expenditure when calculating units of production amortisation;
• Note 11: Reserves and resources – estimating reserves and resources;
• Notes 11 and 12: Property, plant and equipment – consideration of impairment triggers
• Note 16: Provision for rehabilitation – measurement of provision based on key assumptions; and
• Note 28: Share-based payments – estimations involving valuation of performance rights issued to directors and
employees.
44
3. Revenue
Gold sales
Silver sales
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2021
$’000
30 June 2020
$’000
25,087
28
25,115
-
-
-
Gold sales during the year exclude $7.15 million of gold sold prior to commercial production being declared. These sales
were capitalised to mine development expenditure.
No sales were made under hedge arrangements during the financial year and at 30 June 2021 and the Company has no
hedge arrangements for future financial years.
Accounting policies
Gold bullion sales
Under AASB 15 Revenue from Contracts with Customers, revenue is recognised when a customer obtains control of the
goods or services. Determining the timing of the transfer of control requires judgement. With the sale of gold bullion, this
occurs when physical bullion, from a contracted sale, is transferred from the Company’s account into the account of the
buyer.
4. Cost of Sales
Mining and processing costs
Amortisation and depreciation
Employee benefits expense
Royalties
Accounting policies
Mining and processing costs
30 June 2021
$’000
30 June 2020
$’000
16,067
5,965
3,187
719
25,938
-
-
-
-
-
This includes all costs related to mining and milling, net of costs capitalised to mine development and production
stripping. This category also includes movements in the cost of inventory and any net realisable value write downs.
Amortisation
The Group applies the units of production method for amortisation of its production phase assets, which results in an
amortisation charge proportional to the depletion of the anticipated remaining life of mine production. These calculations
require the use of estimates and assumptions in relation to reserves and resources, metallurgy and the complexity of
future capital development requirements. These estimates and assumptions are reviewed annually and changes to these
estimates and assumptions may impact the amortisation charge in the Statement of Profit or Loss and asset carrying
values.
The Group uses ounces mined over estimated remaining reserves as its basis for depletion of production phase assets.
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Depreciation
Depreciation is calculated on either a reducing balance basis or on a straight-line basis over the estimated useful life of
each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term
and their useful life while processing plants are depreciated on the life of the mine basis. Capital works in progress are not
depreciated until it is ready for use. Depreciation methods, useful lives and residual values are reassessed at each
reporting date.
The estimated useful lives for the current and comparative period are as follows:
Buildings
Haul roads
Plant and equipment
Office furniture and equipment
Motor vehicles
Period
3-6 Years
3-6 Years
3- 6 Years
3-6 Years
3-5 Years
5. OTHER INCOME
Profit on sale of property, plant & equipment
Debts recovered
Other income
30 June 2021
$’000
30 June 2020
$’000
13
31
-
44
49
144
61
254
6.
(a) GENERAL AND ADMINISTRATION EXPENSES
30 June 2021
$’000
30 June 2020
$’000
Employee benefits expenses
Share-based payments (Note 28)
Administration and corporate costs
Movements in expected credit loss
Depreciation expense
6.
(b) OTHER OPERATING EXPENSES
Site contractors and consultants
Consumables
Salaries and wages
Depreciation and amortisation
Other operating expenses
3,519
2,133
4,908
-
344
10,904
1,986
1,663
2,852
(125)
450
6,826
30 June 2021
$’000
30 June 2020
$’000
1,370
563
671
816
522
3,942
140
73
1,150
-
1,204
2,567
46
6.
(c) FINANCE INCOME/(EXPENSE)
Interest income
Finance income
Accretion of rehabilitation provision
Interest expense on lease liabilities
Finance expense
Net finance expense
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2021
$’000
30 June 2020
$’000
88
88
(74)
(548)
(622)
(534)
195
195
(211)
(21)
(232)
(37)
Accounting policies
Interest income comprises bank interest on funds invested and is recognised as it accrues, using the effective interest
method. Finance expenses comprise interest expense on borrowings (including leases) and unwinding of the discount on
provisions. All borrowing costs are recognised in the consolidated statement of profit or loss and other comprehensive
income using the effective interest method in the period in which they are incurred except borrowing costs that are directly
attributable to the acquisition, construction and production of a qualifying asset that necessarily takes a substantial period
to get ready for its intended use or sale. In this case, borrowing costs are capitalised as part of the qualifying asset.
7.
INCOME TAX
(a) Components of tax expense:
Current tax benefit
Deferred tax
(b) Deferred income tax related to items recognised directly to
equity
Gain on financial asset at fair value through other comprehensive
income
(c) Prima facie income tax expense
The prima facie tax payable on loss before income tax is
reconciled to the income tax expense as follows:
Prima facie income tax benefit/(expense) on loss before income
tax at 30% (2020: 30%).
Tax effect of:
- Expenses not deductible in determining taxable profit/loss
- Losses and other deferred tax balances not recognised during
the year
Income tax expense/(benefit) attributable to loss
30 June 2021
$’000
30 June 2020
$’000
-
-
-
-
-
-
-
-
(6,685)
(2,003)
643
6,042
-
527
1,476
-
Based on the 30 June 2020 lodged Group income tax return and estimates for 30 June 2021, the Group has an unrecognised
deferred tax asset of $84.26 million on carried forward tax losses of $280.86 million. Losses carried forward of $170.24 million
as at 30 June 2016 are subject to the satisfaction of the same business test or the business continuity test, due to several
continuity of ownership failures during the loss years. Losses incurred post 30 June 2016 are subject to the satisfaction of
the continuity of ownership test.
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting policies
Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in 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 substantively enacted
at balance date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax
is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted at balance date.
Tax losses
Deferred tax assets are recognised for the carry-forward of unused tax losses to the extent that it is probable that taxable
profits will be available in the future against which unused tax losses can be utilised. The deductible carry-forward tax losses
do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because
it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom,
detailed further in significant judgements below.
Tax consolidation
Ora Banda Mining Limited and its wholly owned Australian resident subsidiaries have formed a tax consolidated group with
effect from 1 July 2002. Ora Banda Mining Limited is the head entity of the tax consolidated group.
Tax effect accounting by members of the tax consolidated group
The head entity and the controlled entities in the tax consolidated group continue to account for their own current and
deferred tax amounts. The Group has applied the group allocation approach in determining the appropriate amount of
current taxes and deferred taxes to allocate to members of the tax consolidated group. The current and deferred tax
amounts are measured in a systematic manner that is consistent with the broad principles in AASB 112 Income Taxes.
Significant judgements
Deferred tax assets
Deferred tax assets, including those arising from unutilised tax losses, require the Group to assess the likelihood that it will
generate sufficient taxable earnings in future periods, in order to utilise recognised deferred tax assets. Assumptions about
the generation of future taxable profits depend on management’s estimates of future cash flows. These estimates of future
taxable income are based on forecast cash flows from operations (which are impacted by production and sales volumes,
commodity prices, reserves, operating costs, closure and rehabilitation costs, capital expenditure and other capital
management transactions). To the extent that future cash flows and taxable income differ significantly from estimates, the
ability of the Group to realise the net deferred tax assets could be impacted.
8. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
30 June 2021
$’000
30 June 2020
$’000
24,220
24,220
10,577
10,577
Accounting policies
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less. The Group
ensures that as far as possible it maintains excess cash and cash equivalents in short-term high interest-bearing deposits.
The Group’s exposure to interest rate risk and a sensitivity analysis of financial assets and liabilities are disclosed in Note
23.
48
9. TRADE AND OTHER RECEIVABLES
Current
GST receivables
Other receivables
Less provision for expected credit loss
Non-current
Security deposits
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2021
$’000
30 June 2020
$’000
1,065
2,271
(1,940)
1,396
3,085
239
1,981
(1,976)
1,408
30
The Group’s exposure to credit risk is disclosed in Note 23.
Accounting policies
Trade receivables are recognised initially at the value of the invoice sent to the counterparty and subsequently at the
amounts considered recoverable (amortised cost). Where there is evidence that the receivable is not recoverable, it is
impaired with a corresponding change to the Consolidated Statement of Profit or Loss and Other Comprehensive
Income. GST receivable balances are recorded initially as the consideration to be received from the federal government,
and then subsequently at amortised cost.
Impairment of receivables
Reconciliation of provision for expected credit loss:
Carrying amount at beginning of year
Reversal due to debt recovery
Amounts written off during the year
Carrying amount at the end of year
30 June 2021
$’000
30 June 2020
$’000
1,976
-
(36)
1,940
2,442
(171)
(295)
1,976
Significant judgements
Provision for expected credit losses of trade and other receivables
The provision relates to outstanding amounts for shares issued to previous related parties and advances provided to
previous related parties for the recharges of costs incurred by the Group on behalf of the previous related party arising
from prior periods. These amounts are disclosed as ‘other receivables’. All related party receivables have been fully
provided for based on an expected credit loss rate of 100%. The assessment of expected credit losses is a significant
estimate. The amount of expected credit losses is sensitive to changes in circumstances. The Group’s historical credit
loss experience may also not be representative of customer’s actual default in the future.
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2021
$’000
30 June 2020
$’000
1,360
15,032
2,200
1,720
20,312
44
-
-
11
55
10.
INVENTORIES
CURRENT
Materials and supplies
Ore stocks
Gold in circuit
Bullion on hand
Total inventories
Accounting policies
Inventories
Ore stockpiles, gold in circuit and gold bullion are physically measured or estimated and valued at the lower of cost and
net realisable value. The cost comprises direct materials, labour and transportation expenditure in bringing such
inventories to their existing location and condition, together with an appropriate portion of fixed and variable overhead
expenditure based on weighted average cost incurred during the period in which such inventories were produced.
Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion
and the estimated cost necessary to perform the sale. Inventories of consumable supplies and spare parts that are
expected to be used in production are valued at cost. Obsolete or damaged inventories of such items are valued at net
realisable value.
During the year ore stockpiles were reduced by $3.89 million (2020: $Nil) as a result of a write down to net realisable value.
This write down was recognised as an expense.
As a result at 30 June 2021 ore stockpiles were held at net realisable value with all other inventories at cost.
Bullion on hand
Bullion on hand comprises gold that has been delivered to the Perth Mint prior to year-end but which has not yet been
delivered into a sale contract.
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11. EXPLORATION EVALUATION AND DEVELOPMENT EXPENDITURE
30 June 2021
$’000
30 June 2020
$’000
Exploration and evaluation phase
Cost brought forward
Acquisitions during the year
Transferred to development phase
Balance at 30 June
Development phase
Cost brought forward
Transfer from exploration and evaluation phase
Expenditure during the year
Impairment reversal
Rehabilitation provision adjustment
Revenue capitalised
Transferred to production phase
Balance at 30 June
Production phase
Cost brought forward
Transfer from development phase
Expenditure during the year
Rehabilitation provision adjustment
Amortisation expense
Balance at 30 June
Total
1,972
-
(1,972)
-
42,869
1,972
25,415
-
(257)
(7,161)
(51,517)
11,321
-
51,517
2,429
1,699
(8,428)
47,217
58,538
-
1,972
-
1,972
25,035
-
8,553
7,311
2,222
-
(252)
42,869
-
-
-
-
-
-
44,841
Accounting policies and significant judgements
Exploration and evaluation phase
Expenditure on areas of interest in the exploration and evaluation phase are those expenditures incurred in connection with
the exploration for and evaluation of minerals resources before the technical feasibility and commercial viability of
extracting a mineral resource are demonstrable. Exploration and evaluation phase assets include the costs of acquiring
exploration licenses or exploration rights and the fair value (at acquisition date) of exploration and evaluation assets
acquired. All other expenditure on areas of interest in the exploration and evaluation phase, including all expenditure
incurred prior to securing legal rights to explore an area, is expensed as incurred.
Capitalised exploration and evaluation expenditure is accumulated in respect of each identifiable area of interest. An “area
of interest” is an individual geological area which is considered to constitute a favourable environment for the presence of
a mineral deposit or has been proved to contain such a deposit. These costs are carried forward only if they relate to an area
of interest for which rights of tenure are current and where:
•
•
such costs are expected to be recouped through successful development and exploitation or from sale of the area; and
exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable resources, and active and significant operations
in, or relating to, this area are continuing.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
capitalised costs in relation to the area of interest. If capitalised costs do not meet the criteria noted above, they are written
off in full against the Consolidated Statement of Profit or Loss and Other Comprehensive Income.
During the year, $6.13 million of costs incurred on areas of interest in the exploration and evaluation phase were expensed
to the Consolidated Statement of Profit or Loss and Other Comprehensive Income (2020: $4.81 million) as they did not meet
the recognition criteria noted above.
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Exploration and evaluation assets are transferred to development phase assets once technical feasibility and commercial
viability of an area of interest is demonstrable. At this stage, exploration and evaluation assets are tested for impairment,
and any impairment loss is recognised, prior to being reclassified.
Impairment testing of exploration and evaluation assets
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and
commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:
•
•
•
•
the term of exploration licence in the specific area of interest has expired during the reporting period or will expire in
the near future, and is not expected to be renewed;
substantive expenditure on further exploration and evaluation of mineral resources in the specific area are not
budgeted or planned;
exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially
viable quantities of mineral resource and the decision was made to discontinue such activities in the specific area; or
sufficient data exists to indicate that, although development in the specific area of interest is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be fully recovered from successful development
or by sale.
When a potential impairment is indicated, an assessment is performed for each cash generating unit which is no larger than
the area of interest.
Development phase assets
The Group capitalises expenditure on areas of interest in the development phase only where the following criteria are met:
•
•
•
The Group has right of tenure in the area of interest;
The expenditure is for the purpose of furthering an already proven mineral resource area; and
The expenditure provides future economic benefit by developing the underlying resources to further progress the asset
towards commercial production.
Development phase assets are transferred to mine properties and mining assets when commercial production is achieved
at the area of interest.
Impairment testing of assets in the development or production phase
The carrying amounts of assets in the development or production phase are reviewed at each balance date to determine
whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is
estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value-in-use (“VIU”) and its fair value less
costs of disposal (“FVLCD”). For the purpose of impairment testing, assets that cannot be tested individually are grouped
together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of
the cash inflows of other assets or groups of assets (“cash-generating unit”).
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable
amount. Impairment losses are recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Impairment losses recognised in prior periods are assessed at each balance date for any indications that the loss has
decreased or no longer exists and therefore should be reversed. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had initially been recognised. Impairment reversals are also recognised in the Statement
of Profit or Loss and Other Comprehensive Income. In the prior period $7.31 million in prior impairments was reversed.
Exploration expenditure commitments
Exploration expenditure commitments represent tenement rentals and minimum spend requirements that are required to
be met under the relevant legislation should the Group wish to retain tenure on all its current tenements (refer Note 20).
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Mine properties and mining assets
Mine properties represent the acquisition cost and/or accumulated exploration, evaluation and development expenditure
in respect of areas of interest in which mining has commenced. When commercial production is achieved, capitalised costs
in the development phase are transferred to mine properties, at which time it is amortised on a unit of production basis
based on ounces mined over the total estimated reserves and resources related to this area of interest.
Significant factors considered in determining the technical feasibility and commercial viability of the project are the
completion of a feasibility study, the existence of sufficient resources to proceed with development and approval by the
board of directors to proceed with development of the project.
Underground development expenditure incurred in respect of mine development after the commencement of production is
carried forward as part of mine development only when substantial future economic benefits are expected, otherwise this
expenditure is expensed as incurred.
Deferred stripping costs
Stripping is the process of removing overburden and waste materials from surface mining operations to access the ore.
Stripping costs are capitalised during the development of a mine and are subsequently amortised over the life of mine on a
units of production basis, where the unit of account is ounces of gold mined from reserves. Stripping costs capitalised at
year end are included in the production phase of development expenditure (refer Note 11).
Reserves and resources
Resources are estimates of the amount of gold product that can be economically extracted from the Group’s mine properties.
In order to calculate resources, estimates and assumptions are required about a range of geological, technical and
economic factors, including quantities, grades, production techniques, recovery rates, production costs, future capital
requirements, short and long term commodity prices and exchange rates.
Estimating the quantity and/or grade of resources requires the size, shape and depth of ore bodies to be determined by
analysing geological data. This process may require complex and difficult geological judgments and calculations to interpret
the data.
The Group determines and reports ore resources under the Australian Code of Reporting for Mineral Resource and Ore
Reserves (2004 and 2012), known as the JORC Code. The JORC Code requires the use of reasonable assumptions to calculate
resources. Due to the fact that economic assumptions used to estimate resources change from period to period, and
geological data is generated during the course of operations, estimates of reserves and resources may change from period
to period. Changes in reported resources and reserves may affect the Group’s financial results and financial position in a
number of ways, including:
•
•
•
•
asset carrying values may be impacted due to changes in estimates of future cash flows;
amortisation charged in the Statement of Profit or Loss and Other Comprehensive Income may change where such
charges are calculated using the units of production basis;
decommissioning, site restoration and environmental provisions may change due to changes in estimated resources
after expectations about the timing or costs of these activities change; and
recognition of deferred tax assets, including tax losses.
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. PROPERTY, PLANT AND EQUIPMENT
Motor Vehicles
$’000
Furniture &
Fittings
$’000
Plant &
Equipment
$’000
Balance 1 July 2019
Additions
Transfers
Write-offs
Depreciation expense
Balance 30 June 2020
Balance 1 July 2020
Additions
Transfers
Write-offs
Depreciation expense
Balance 30 June 2021
199
-
-
-
(35)
164
164
478
-
-
(49)
593
707
-
(377)
-
(79)
251
251
295
-
-
(10)
536
12,373
181
629
(15)
(114)
13,054
13,054
62
22,576
-
(772)
34,920
Capital WIP
$’000
-
1,341
(252)
-
-
1,089
1,089
22,301
(22,576)
-
-
814
Total
$’000
13,279
1,270
252
(15)
(451)
14,558
14,558
23,136
-
-
(831)
36,863
Accounting policies
All assets acquired, including property, plant and equipment, are initially recorded at their cost of acquisition being the
fair value of the consideration provided plus incidental costs directly attributable to the acquisition.
Property, plant and equipment assets located on a mine site are carried at cost less accumulated depreciation and any
accumulated impairment losses. All such assets are depreciated over the estimated remaining economic life of the
mine, using a units-of-production basis based on reserves. The cost of certain items of property, plant and equipment
has been determined with reference to its fair value, detailed in significant judgements below.
All other property, plant and equipment assets are carried at cost less accumulated depreciation and impairment losses.
These items are depreciated on a straight-line basis over the assets estimated useful life which is three to six years.
Depreciation commences from the time the asset is held ready for use.
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a
working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on
which they are located.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment. The cost of replacing part of an item of property, plant and
equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied
within the part will flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing of
property, plant and equipment are recognised in profit or loss as incurred.
Impairment testing
Property, plant and equipment is evaluated annually, at 30 June, to determine whether there are any indications of
impairment or any circumstances justifying the reversal of previously recognised impairment losses. Factors such as
changes in assumptions in future commodity prices, exchange rates, production rates and input costs, are monitored to
assess for indications of impairment or reversal of previously recognised impairments. If any such indications of
impairment or impairment reversals exist, a formal estimate of the recoverable amount is performed. In assessing
whether an impairment is required, the carrying value of the asset is compared with its recoverable amount, which is
the higher of FVLCD and VIU.
As at 30 June 2021, it was assessed that there were no indicators of impairment nor indicators of impairment reversal
pertaining to property, plant and equipment.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13. RIGHT-OF-USE ASSETS
Non-current
Cost
Opening balance at 1 July 2020
Disposals
Additions
Closing balance at 30 June 2021
Accumulated depreciation
Opening balance at 1 July 2020
Disposal
Depreciation charge for the year
Closing balance at 30 June 2021
Carrying amount – Opening balance at 1 July 2020
Carrying amount – Closing balance at 30 June 2021
Property, plant
and equipment
$’000
603
(132)
33,304
33,775
222
(132)
6,230
6,320
381
27,455
The Group leases mining; power generation and other equipment for the purposes of production and exploration
activities. These leases run for a period of approximately 1 to 5 years, with an option to renew the lease after that date.
Leases that contain extension options are exercisable by the Group and not the lessor.
14. LEASE LIABILITIES
Analysed as:
Current
Non-current
Maturity analysis
Within one year
Later than one year but not later than five years
Minimum lease payments
Future finance charges
Total lease liabilities
30 June 2021
$’000
30 June 2020
$’000
9,178
18,010
27,188
9,860
18,710
28,570
(1,382)
27,188
210
182
392
226
187
413
(21)
392
Payments made during the year under lease arrangements qualifying under AASB 16 Leases but were variable by nature
and therefore not included in the minimum lease payments used to calculate lease liabilities, totalled $8.65 million
(2020: Nil). These include payments for services, including labour charges, under those contracts that contained
payments for the right of use assets.
Payments made in relation to low value items and leases less than a year not recognised as right of use assets amounted
to $0.36 million (2020: $0.01 million).
The right-of-use assets to which the lease liabilities relate are disclosed in Note 13.
For the year ended 30 June 2021, the Group recognised $33.34 million of additional lease liabilities, $6.31 million of lease
repayments and $0.55 million of interest costs in relation to these leases.
Total depreciation in relation to these leases during the financial year amounted to $6.23 million.
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting policies
The Group leases assets including properties and equipment. As a lessee, the Group previously classified leases as
operating or financial leases based on its assessment of whether the lease transferred substantially all of the risks and
rewards of ownership. Under AASB 16 Leases, the Group recognises right of use assets and lease liabilities for some of
these leases (ie: they are recorded on-the balance sheet). The Group presents lease liabilities separately in the balance
sheet.
In accordance with AASB 16, a contract is, or contains, a lease if the contract conveys a right to control the use of an
identified asset for a period in exchange for consideration.
The Group recognises right-of-use assets at the commencement date of the lease and is initially measured at cost, and
subsequently at cost less any accumulated depreciation and impairment losses and adjusted for any changes to lease
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,
and lease payments made at or before the commencement date.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss
as incurred.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that cannot be readily determined,
the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments
made. The carrying amount of lease liabilities is remeasured if there is a modification to an index or rate, a change in
the residual value guarantee, or changes in the assessment of whether a purchase, extension or termination option will
be exercised.
The lease payments include fixed monthly payments, variable lease payments and amounts expected to be paid under
residual value guarantees less any incentives received. Variable lease payments that do not depend on an index or rate
are recognised as an expense in the period it was incurred. The lease payment also includes the exercise price, or
termination price, of a purchase option in the event the lease is likely to be extended, or terminated, by the Group. The
Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee that includes
renewal options. The assessment of these options will impact the lease term and therefore affects the amount of lease
liabilities and right-of-use assets recognised.
15. TRADE AND OTHER PAYABLES
30 June 2021
$’000
30 June 2020
$’000
Current
Trade payables
Accruals
Other payables
Non-current
Other payables
7,951
11,004
2,095
21,050
75
75
2,482
1,068
330
3,880
100
100
The Group’s exposure to liquidity risk and a sensitivity analysis of financial assets and liabilities are disclosed in Note 23.
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting policies
Trade payables are recognised at the value of the invoice received from a supplier. They represent liabilities for goods
and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group
becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are
unsecured and generally paid between 14-30 days of recognition.
16. PROVISIONS
Current
Provision for annual leave
Provision for long service leave
Non-current
Provision for restoration
Provision for rehabilitation
(a) Provision for rehabilitation
Carrying amount at beginning of year
Re-assessment of provision
Accretion
Carrying amount at the end of year
30 June 2021
$’000
30 June 2020
$’000
945
91
1,036
546
20,596
21,142
19,077
1,445
74
20,596
301
69
370
-
19,077
19,144
16,644
2,222
211
19,077
The Group makes full provision for the future cost of rehabilitating mine sites and related production facilities on a
discounted basis on the development of mines or installation of those facilities.
The rehabilitation provision represents the present value of rehabilitation costs relating to mine sites and
decommissioning of the plant. These provisions have been based on estimates provided by an external consultant. Key
inclusions and pertinent matters underpinning the provision are:
•
•
•
•
•
•
•
•
•
•
Provision covers the four project areas, being Carnegie, Siberia, Mt Ida and Heron;
Project areas (apart from the DGP site) have undergone limited scale exploration activities and have been in care
and maintenance;
Cost estimates for the four project areas, included actual mining contractor and equipment rates and average
industry contracting rates;
Provision incorporates costs for the demolition and cartage of fixed infrastructure to the nearest nominated
waste disposal area;
No allowance has been made for decommissioning of assets not owned by the Group but are located on Group
owned leases;
Rehabilitation costs being incurred over a 4.5 year period;
10% (2020: 10%) contingency has been included in the provision calculation;
Allowance has been made within the contingency, for post-closure maintenance and reworking of environmental
rehabilitation;
Discount rate applied of 0.08%, estimated based on yields of government risk-free bonds; and
Inflation rate of 2.1%, estimated based on Reserve Bank of Australia forecast and rate for inflation.
Assumptions, which are based on the current economic environment, have been made which the Company believes are
a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into
account any material changes to the assumptions. However, actual rehabilitation costs will ultimately depend upon
future market prices for necessary decommissioning works required which will reflect market conditions at the relevant
time.
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting policies
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is
probable that the Group will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at balance date, taking into account the risks and uncertainties surrounding the obligation. If the time
value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase
in the provision resulting from the passage of time is recognised as a finance cost.
Short-term employee benefits
Liabilities for employee benefits for wages, salaries and annual leave represents present obligations resulting from
employees’ services provided to balance date and are calculated at undiscounted amounts based on remuneration wage
and salary rates that the Group expects to pay as at balance date including related on-costs.
Long-term employee benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods plus related on costs. The benefit is discounted to
determine its present value using a discount rate that equals the yield at balance date on Australian high-quality corporate
bonds that have maturity dates approximating the terms of the Group’s obligations.
Rehabilitation costs
Mine rehabilitation costs will be incurred by the Group either while operating, or at the end of the operating life of, the
Group’s facilities and mine properties. The Group assesses its mine rehabilitation provision at each balance date. The Group
recognises a rehabilitation provision where it has a legal and constructive obligation as a result of past events, and it is
probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the
obligation can be made. The nature of these restoration activities includes dismantling and removing structures;
rehabilitating mines and tailings dams; dismantling operating facilities; closing plant and waste sites; and restoring,
reclaiming and revegetating affected areas.
The obligation generally arises when the asset is installed, or the ground/environment is disturbed at the mining
operation’s location. When the liability is initially recognised, the present value of the estimated costs is capitalised by
increasing the carrying amount of the related mining assets to the extent that it was incurred as a result of the
development/construction of the mine.
Additional disturbances that arise due to further development/construction at the mine are recognised as additions or
charges to the corresponding assets and rehabilitation liability when they occur.
Changes in the estimated timing of rehabilitation or changes to the estimated future costs are dealt with prospectively
by recognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it
relates, if the initial estimate was originally recognised as part of an asset measured in accordance with AASB 116
Property Plant and Equipment.
Rehabilitation provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a financing cost. The
estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation,
technology or other circumstances.
Significant judgements
Provision for rehabilitation
Decommissioning and restoration costs are a normal consequence of mining and much of this expenditure is incurred
at the end of a mine’s life. In determining an appropriate level of provision, consideration is given to the expected future
costs to be incurred, the timing of these expected future costs (largely dependent on the life of the mine) and the
estimated future level of inflation. The ultimate cost of decommissioning and restoration is uncertain, and costs can
vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration
techniques or experience at other mine sites. The expected timing of expenditure can also change, currently proposed
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
to be 2027 (2020: 2026), for example in response to changes in reserves or to production rates. Changes to any of the
estimates could result in significant changes to the level of provisioning required, which would in turn impact future
financial results. At 30 June 2021, the provision of $20.60 million (30 June 2020: $19.08 million) represents the Company’s
best estimate of the rehabilitation costs required.
17. SHARE CAPITAL
30 June 2021
30 June 2021
30 June 2020
30 June 2020
Number
$’000
Number
$’000
Issued and paid-up capital
968,763,876
443,696
590,284,962
368,194
(a) Movements in share capital
Balance as at 1 July 2019
Shares issued under placement
Shares issued on exercise of options
Cost of capital raising
Balance as at 30 June 2020
Shares issued under placement1
Shares issued on exercise of options2
Shares issued on vesting of performance rights3
Shares issued in relation to employee and director incentives4
Shares issued under placement5
Shares issued on exercise of director options6
Shares issued on vesting of employee incentive options7
Cost of capital raising
Number
$'000
485,719,962
350,519
100,000,000
4,565,000
-
590,284,962
239,501,170
7,666,667
3,136,727
1,632,431
123,575,252
1,777,778
1,188,889
-
18,500
-
(825)
368,194
55,085
1,976
514
490
21,008
217
145
(3,933)
Balance as at 30 June 2021
968,763,876
443,696
1. On 3 July 2020, the Company announced it was launching a $55 million equity raising (before costs) comprising an institutional
placement of approximately $40 million and a 1 for 9 accelerated non-renounceable entitlement offer to raise approximately
$15 million with all shares to be issued for $0.23.
The institutional placement and associated entitlement offer settled in two tranches with 128,832,632 fully paid ordinary shares
being issued on 15 July 2020 to raise $29.6m followed by 96,143,565 fully paid ordinary shares being issued on 15 September 2020
and raising $22.1 million.
The successful completion of the retail component of the entitlement offer was announced on 29 July 2020 and 14,524,973 fully
paid ordinary shares were issued on 31 July 2020 raising $3.3 million.
2.
3.
4.
7,666,667 fully paid ordinary shares were issued as a result of the exercise of unlisted options at an exercise price of $0.26 per
option.
3,136,725 fully paid ordinary shares were issued as a result of the exercise of unlisted vested performance rights at a nil exercise
price.
1,632,431 fully paid ordinary shares were issued as part of remuneration incentives to an employee and director of the Company.
Refer to Note 28.
5. On 8 June 2021 the Company announced it had completed a $21 million placement (before costs) with shares to be issued at
$0.17 per share.
6.
1,777,778 fully paid ordinary shares were issued as a result of the exercise of unlisted options at a nil exercise price. Refer to
Note 28
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
7.
1,188,889 fully paid ordinary shares were issued as a result of unlisted incentive options issued at a nil exercise price to
employees.
(b)
(c)
(d)
Rights of each type of share
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the
number of shares held. At shareholders meetings each ordinary share gives entitlement to one vote when a poll
is called.
Share options and performance rights
Employee share scheme
The Group continued to offer employee participation in short-term and long-term incentive schemes as part of
the remuneration packages for the employees of the Group. Refer to Note 28 for further information.
Dividends paid or proposed
No dividends were paid or proposed during the current or previous financial year. No dividends have been
proposed subsequent to the end of the current financial year.
Accounting policies
Issued and paid-up capital is recognised at the fair value of the consideration received by the Company. Any transaction
costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds
received.
18. RESERVES
Fair value of investments in listed equities reserve
Share-based payment reserve
(a)
Fair value of investments in listed equities reserve
(i) Nature and purpose of reserve
Notes
(a)
(b)
30 June 2021
$’000
30 June 2020
$’000
-
2,871
2,871
-
2,103
2,103
This reserve is used to record unrealised movements in investments in listed equities at fair value through other
comprehensive income and not distributable.
(ii) Movements in reserve
Balance at beginning of year
Transferred to retained earnings
Balance at end of year
-
-
-
751
(751)
-
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(b)
Share-based payments reserve
(i) Nature and purpose of reserve
The reserve is used to record the fair value of shares, options or performance rights issued to employees and directors
as part of their remuneration. The balance is transferred to share capital when options or performance rights are
exercised and balance is transferred to retained earnings when they expire.
(ii) Movements in reserve
Balance at beginning of year
Share-based payments expense (Note 28)
Options and rights exercised
Expired options transferred to retained earnings
Balance at end of year
19. REMUNERATION OF AUDITOR
Amounts paid or due and payable to:
KPMG
•
Auditing and reviewing the financial reports
Other auditor
•
Auditing and reviewing the financial reports1
30 June 2021
$’000
30 June 2020
$’000
2,103
2,133
(1,365)
-
2,871
12,279
1,663
-
(11,839)
2,103
30 June 2021
30 June 2020
$
$
105,000
105,000
-
-
45,000
45,000
66,443
66,443
1. Consists of amounts invoiced by previous auditor for prior period audit services, received during the 2020 financial year.
20. EXPLORATION EXPENDITURE COMMITMENTS
Exploration expenditure commitments represent tenement rentals and expenditure requirements that may be required
to be met under the relevant legislation should the Group with to retain tenure on all current tenements in which the Group
has an interest.
The terms and conditions under which the Group retains title to its various mining tenements oblige it to meet the
tenement rentals and minimum levels of exploration expenditure as gazetted by the Western Australian government, as
well as local government rates and taxes.
The exploration commitments of the Group not provided for in the consolidated financial statements and payable are as
follows:
Amounts paid or due and payable to:
Within one year
Between two and five years
Greater than five years
30 June 2021
$
1,162
6,192
-
7,354
30 June 2020
$
1,182
5,618
1,736
8,536
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21. SEGMENT INFORMATION
An operating segment is a component of the Group that engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other
components. The Group has one operating segment, gold mining in Western Australia. The Group does not have customers
other than the Perth Mint and its bankers, and all the group assets and liabilities are located within Western Australia.
Group performance is evaluated based on the financial position and operating profit or loss and is measured on a
consistent basis with the information contained in the consolidated financial statements. As such, no additional
information is provided to that already contained in the consolidated financial statements.
Major customer
During the year ended 30 June 2021, $25.11 million in revenue was derived from sales to one customer, being the Perth
Mint. In the prior year, $Nil was derived.
22. RELATED PARTY TRANSACTIONS
(a) Key management personnel compensation
Short-term employee benefits
Post-employment payments
Share-based payments
30 June
2021
$
2,100,325
183,429
1,255,257
3,539,011
30 June
2020
$
1,262,030
190,830
1,523,932
2,976,792
(b) Individual directors and executives’ compensation disclosures
Information regarding individual directors and executive’s compensation and some equity instruments disclosures as
permitted by Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report.
During the year 9,226,449 performance rights were awarded to KMP. See Note 28 and the Remuneration Report for further
details of these related party transactions.
23. FINANCIAL RISK MANAGEMENT
The Group’s principal financial assets comprise trade and other receivables and cash that arises directly from its
operations. The Group’s principal financial liabilities comprise trade payables. The main purpose of these financial
instruments is to manage cash flow and assist the Group in its daily operational requirements.
The Group is exposed to the following financial risks in respect to the financial instruments that it held at the end of the
year:
•
•
•
Interest rate risk;
Liquidity risk; and
Credit risk.
The directors have overall responsibility for identifying and managing operational and financial risks.
Interest rate risk
(a)
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of
changes in market interest rates.
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At balance date, the interest rate profile of the Group’s interest-bearing financial instruments was:
Fixed rate instruments
Lease liabilities
Variable rate instruments
Cash and cash equivalents
30 June 2021
$’000
30 June 2020
$’000
27,188
392
24,220
10,577
An increase/decrease of 1% in the interest rate applicable to the interest-bearing financial instruments at balance date
would result in an increase/decrease in net loss of $242,000 for the year ended 30 June 2021 (2020: an increase/decrease
in net profit of $102,000). This analysis assumes that all other variables remain constant.
Liquidity risk
(b)
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation. The Group manages liquidity risk by maintaining adequate cash reserves from funds
generated from operations and by continuously monitoring forecast and actual cash flows.
Maturity analysis
The tables below represent the undiscounted contractual settlement terms for financial instruments and management’s
expectation for settlement of maturities.
30 June 2021
< 12 months
2-5 years
> 5 years
Trade and other
payables
Lease liabilities
Net maturities
$'000
21,050
9,860
30,910
$'000
75
18,710
18,785
$'000
-
-
-
30 June 2020
< 12 months
2-5 years
> 5 years
Trade and other
payables
Lease liabilities
Net maturities
$'000
3,880
226
4,106
$'000
$'000
100
187
287
-
-
-
Total
contractual
cash flows
$'000
21,125
28,570
49,695
Total
contractual
cash flows
$'000
3,980
413
4,393
Carrying
amount
$'000
21,125
27,188
48,313
Carrying
amount
$'000
3,980
392
4,372
Credit risk
(c)
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade and other
receivables). Exposure to credit risk associated with its financing activities arising from deposits with banks and financial
institutions, foreign exchange transactions and other financial instruments is not considered to be significant.
Trade and other receivables
Customer credit risk is managed subject to the Group’s established policy, procedures and control relating to customer
credit risk management. The Group trades only with recognised creditworthy third parties. The Group’s only customer is
The Perth Mint and at 30 June 2021, the exposure to credit risk associated with this customer and trade receivables is
not significant. The Group has other receivables that have been specifically identified as being of significant risk with
respect to collection and therefore are included, in full, in the expected credit loss.
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
An impairment analysis is performed at each balance date using a provision matrix to measure expected credit losses.
The provision rates are based on days past due for groupings of various customer segments with similar loss pattern.
The calculation reflects the probability weighted outcome, the time value of money and reasonable and supportable
information that is available at balance date about past events, current conditions and forecasts of future economic
conditions.
The maximum exposure to credit risk for trade and other receivables at the balance date is the carrying value of each
class of financial assets disclosed in Note 9. The Group does not hold collateral as security.
Cash and cash equivalents
The Group limits its exposure to credit risk by only investing in liquid securities and only with major Australian financial
institutions.
(d) Fair values versus carrying values
The carrying value of cash and cash equivalents, trade and other receivables and trade and other payables is considered
to be a fair approximation of their fair values.
24. INVESTMENTS IN CONTROLLED ENTITIES
The Company controlled the following subsidiaries:
Name of controlled entities
Monarch Nickel Pty Limited
Monarch Gold Pty Limited
Carnegie Gold Pty Limited
Siberia Mining Corporation Pty Limited
Eastern Goldfields Mining Services Pty Limited
Controlled entities of Siberia Mining Corporation Pty Limited
Mt Ida Gold Operations Pty Limited
Ida Gold Operations Pty Limited
Pilbara Metals Pty Limited
Siberia Gold Operations Pty Limited
Mt Ida Gold Pty Limited
Country of
incorporation
Class
of shares
Equity holding
2021
2020
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
100
80
100
100
100
100
100
100
100
100
100
80
100
100
100
100
100
100
100
100
Holding company
The ultimate holding company of the Group is Ora Banda Mining Limited, which is based in Western Australia and listed
on the Australian Securities Exchange.
Accounting policies
Subsidiaries are entities controlled by the Group. The Group controls an entity when it 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 over
the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date
that control commences until the date that control ceases.
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25. CONTINGENT LIABILITIES
The Company and its wholly owned subsidiaries are parties to various proceedings in the Wardens Court pursuant to
which third parties are seeking to challenge its title to various mining tenements by way of forfeiture and other
proceedings. The Group has legal representation in respect of these plaints. The directors do not believe the plaints have
a reasonable prospect of success and the plaints will be vigorously defended by the Group.
26. CASH FLOW STATEMENT
(a)
Reconciliation of cash and cash equivalents
Cash balances comprise:
Cash and cash equivalents
For the purposes of the cash flow statement, cash and
cash equivalents consist of cash and cash equivalents as
defined above, net of outstanding bank overdrafts.
(b)
Reconciliation of net cash outflows from operating
activities to loss after income tax
(Loss)/profit after income tax
Adjusted for non-cash items:
Depreciation
Amortisation
Impairment (reversal)/expense
Interest expense – capitalised
Accretion of rehabilitation provision
Share-based payments
Profit on sale of property, plant and equipment
Property, plant and equipment write-offs
NRV adjustment
Changes in operating assets and liabilities:
(Increase)/decrease in receivables
(Increase)/decrease in inventories
(increase)/decrease in other assets
Increase/(decrease) in payables and provisions
Net cash outflow from operating activities
30 June 2021
$’000
30 June 2020
$’000
24,220
10,577
(22,284)
(6,675)
830
6,244
-
-
74
2,133
-
-
3,879
12
(20,257)
525
17,522
(11,322)
450
-
(7,311)
21
211
1,663
(49)
15
-
(850)
(55)
-
2,026
(10,554)
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
27. EARNINGS/(LOSS) PER SHARE
(Loss)/profit used in the calculation of basic (loss)/earnings per
share
Weighted average number of ordinary shares on issue used in
the calculation of basic earnings per share
Effect of dilution:
Weighted average number of ordinary shares on issue adjusted
for the effect of dilution
Basic (loss)/earnings per share
Diluted (loss)/earnings per share
30 June 2021
$’000
30 June 2020
$’000
(22,284)
Number
(6,675)
Number
817,426,397
-
560,434,327
-
817,426,397
560,434,327
(2.73)
(2.73)
(0.12)
(0.12)
A total of 36,337,005 options and rights were on issue at 30 June 2021 (30 June 2020: 40,046,782) and have not been
accounted for in the above diluted earnings per share calculations as the Group is in a loss position.
Accounting policies
Basic EPS is calculated as profit attributable to ordinary shareholders of the Company divided by the weighted average
number of ordinary shares.
Diluted EPS is determined by adjusting the profit attributable to ordinary shareholders and the weighted average number
of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, including options and rights granted
to employees.
28. SHARE-BASED PAYMENTS
Equity-settled share-based payments are provided to directors, employees, consultants and other advisors. The issue to
each individual director, employee, consultant or advisor is controlled by the board and ASX Listing Rules. Terms and
conditions of the payments are determined by the board, subject to approval where required.
During the year ended 30 June 2021, a share-based payment expense of $2,133,000 (30 June 2020: $1,663,000) was
recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income and $64,000 (30 June 2020:
$Nil) was recognised as a share-based payment expense that was offset against share capital.
Option movements during the year
2021
Number
2021
WAEP ($)
2020
Number
2020
WAEP ($)
At 1 July
Granted during the year
Exercised/expired during year
Forfeited during the year
At 30 June
40,046,782
10,636,448
(14,346,225)
-
36,337,005
1.12
-
0.14
Nil
1.13
44,433,913
5,581,071
(9,616,253)
(351,949)
40,046,782
1.11
Nil
0.43
Nil
1.12
The weighted-average share price at the date of exercise for options exercised during the year ended 30 June 2021 was
$0.28 (2020: $0.23).
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2021
A total of 10,636,449 unlisted performance rights were issued during the year ended 30 June 2021. Of the issued
performance rights, 7,087,713 are subject to a vesting condition based on RTSR, whereby the Company’s total shareholder
return is measured relative to the returns of a peer group over the performance period 1 July 2020 to 30 June 2022 (633,681
performance rights) and 1 July 2020 to 30 June 2023 (6,454,032 performance rights). The fair value of the RTSR performance
rights was estimated as at the date of grant using a Monte-Carlo simulation model taking into account the terms and
conditions upon which the performance rights were granted. These performance rights will vest according to the following
schedule:
Company’s Performance Relative to
Peer Group
Percentage of Performance rights
Eligible to Vest
ASX Comparator Group
Below 50th percentile
-%
50th to 75th percentile
50% to 100% on a straight-line pro rata
Above 75th percentile
100%
BC8; BDC; BGL; DCN: GOR; MML; PNR;
PRU; RMS; RSG; SBM; SLR; TRY; WGX;
WMX
Of the issued performance rights 354,874 are subject to a vesting condition based on TSR, of the Company over the
performance period 1 July 2020 to 30 June 2021. The fair value of the TSR performance rights was estimated as at the date
of grant using a Monte-Carlo simulation model taking into account the terms and conditions upon which the performance
rights were granted. These performance rights will vest according to the following schedule:
Company’s TSR as at 30 June 2021
Percentage of Performance rights Eligible to Vest
TSR <0%
0%≤TSR<5%
5%≤TSR<10%
10%≤TSR<15%
15%≤TSR<20%
TSR>20%
-%
10%
25%
50%
75%
100%
The remaining 3,193,862 issued performance rights are subject to a vesting condition based on the achievement of the
Company’s performance metrics (“Other”) over the performance period 1 July 2020 to 30 June 2021. The fair value of these
performance rights was estimated as at the date of grant using the Black-Scholes option pricing methodology taking into
account the terms and conditions upon which the performance rights were granted. These performance rights will vest
according to the following schedule:
Option Vesting Conditions
Percentage of Performance rights Eligible to Vest
Ora Banda corporate, financial & operational goals
Ora Banda management response
1,419,494
1,774,368
On 30 June 2021, 35% equivalent to 1,233,183 (2020: 86% equivalent to 1,171,267) of STIP “Other” performance rights vested
and the remaining 65% equivalent to 2,315,554 (2020: 14% equivalent to 189,090) of STIP “Other” performance rights were
forfeited.
67
The terms and conditions upon which the options and performance rights were granted are summarised in the following table:
Option/Performance Right Class
RTSR
RTSR
RTSR
TSR
TSR
Other
Other
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Underlying security share price at grant date
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
LTI Zero-priced
Options
LTI Performance
Rights
LTI Performance
Rights
STI Performance
Rights
STI Performance
Rights
STI Performance
Rights
STI Performance
Rights
$0.295
Nil
$0.295
Nil
$0.300
Nil
$0.295
Nil
$0.300
Nil
$0.295
Nil
$0.300
Nil
02/11/2020
02/11/2020
27/11/2020
02/11/2020
27/11/2020
02/11/2020
27/11/2020
30/06/2022
30/06/2023
30/06/2023
30/06/2021
30/06/2021
30/06/2021
30/06/2021
30/06/2024
30/06/2028
30/06/2028
30/06/2026
30/06/2026
30/06/2026
30/06/2026
Number of performance rights issued
633,681
4,996,589
1,457,443
Valuation per option
Fair value per option class
$0.154
$97,587
$0.229
$1,144,219
$0.2611
$380,538
0.11%
80%
Nil
0.13%
80%
Nil
0.09%
100%
Nil
0.11%
80%
Nil
245,565
$0.192
$47,148
0.03%
100%
Nil
109,308
$0.2062
$22,539
0.11%
80%
Nil
2,210,089
$0.295
0.03%
100%
Nil
983,774
$0.30
$651,976
$295,132
The measure of volatility used in the option pricing model is the annualised standard deviation of the continuously compounded rates of return on the historical TSR of Ora Banda and
each constituent of the peer group for the length of time equal to the measurement period. The recent volatilities of the constituents of the peer group and Ora Banda (using comparable
companies) was calculated over a one, two and three-year period.
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2020
The fair value of options/rights granted during the 2020 year was calculated at the date of grant using the Black-Scholes
and Monte-Carlo simulation option pricing models. The inputs to the valuation models used to determine the fair value at
the grant dates were as follows:
Option Class
Underlying security share price at grant date
Exercise price
Grant date
Vesting date
Expiry date
Risk-free rate
Volatility
Dividend yield
Other
$0.17
Nil
RTSR
$0.17
Nil
RTSR
$0.175
Nil
Other
$0.17
Nil
RTSR
$0.17
Nil
9/10/2019
9/10/2019
15/11/2019
24/01/2020
24/01/2020
30/06/2020
30/06/2022
30/06/2022
30/06/2020
30/06/2022
31/07/2020
30/06/2024
30/06/2024
31/07/2020
30/06/2024
0.62%
80%
Nil
0.60%
80%
Nil
0.75%
80%
Nil
0.75%
80%
Nil
0.75%
80%
Nil
Number of options/rights issued
500,000
500,000
2,000,000
860,357
1,720,714
Valuation per option
Fair value per option class
$0.17
$0.12
$0.128
$0.17
$0.114
$85,000
$60,000
$256,000
$146,261
$196,161
Accounting policies
The grant date fair value of equity-settled share-based payment awards granted to employees is generally recognised as
an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an
expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions
are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the
related service and non-market performance conditions at the vesting date. For share-based payment awards with non-
vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there
is no true-up for differences between expected and actual outcomes.
29. EVENTS AFTER BALANCE DATE
On 1 July 2021 Peter Nicholson was appointed Managing Director with immediate effect on the retirement of David
Quinlivan from the position.
On 5 July 2021 the Company announced the results of its share purchase plan with 4,382,393 new ordinary fully paid shares
subsequently issued at an issue price of $0.17 per share raising a total of $745,00 before costs.
On 18 August 2021 the Company issued 588,236 fully paid ordinary shares at an issue price of $0.17 per share to a director,
David Quinlivan raising $100,000 subsequent to receipt of shareholder approval on 19 July 2021 for his participation in the
capital raising announced on 8 June 2021.
On 3 September 2021 the Company announced it had signed a term sheet with TNT Mines Limited (ASX:TIN), subsequently
renamed Red Dirt Metals Limited (ASX:RDT), to dispose of the Mount Ida asset for consideration of $11,000,000 before costs.
On 20 September 2021 the Company announced the sale was unconditional with settlement expected to occur in
September. Settlement occurred on 23 September with funds received on the same date.
Apart from the above, no other matters have arisen since the end of the financial year that impact or are likely to impact
the results of the Group in subsequent financial periods.
69
30. PARENT ENTITY INFORMATION
(a) Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Contributed equity
Accumulated losses
Reserves
Total equity
(b) Financial performance
(Loss)/profit for the year
Other comprehensive income
Total comprehensive (loss)/profit for the year
(c) Contingent liabilities and commitments
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
30 June 2021
30 June 2020
$’000
$’000
27,167
88,407
115,574
13,557
-
13,557
443,696
(344,550)
2,871
102,017
(18,743)
-
(18,743)
11,527
36,485
48,012
3,367
156
3,523
368,194
(325,808)
2,103
44,489
(9,384)
-
(9,384)
Contingent liabilities and commitments identified are as per those detailed within Notes 20 and 25 of this report.
(d) Deed of cross guarantee
Ora Banda Mining Limited and the following entities are parties to a deed of cross guarantee (which was executed on 26
June 2018 and lodged with the Australian Securities and Investments Commission) under which each Company guarantees
the debts of the others:
•
•
•
•
•
•
•
•
Monarch Nickel Pty Limited;
Carnegie Gold Pty Limited;
Siberia Mining Corporation Pty Limited;
Mt Ida Gold Operations Pty Limited;
Ida Gold Operations Pty Limited;
Pilbara Metals Pty Limited;
Siberia Gold Operations Pty Limited; and
Mt Ida Gold Pty Limited.
By entering into the deed, the wholly owned entities have been relieved from the requirement to prepare financial
statements and a Directors’ Report under Corporations Instrument 2016/785 issued by the Australian Securities and
Investments Commission.
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The above companies represent a “Closed Group” for the purposes of the Corporations Instrument, and as there are no
other parties to the deed of cross guarantee that are controlled by Ora Banda Mining Limited, they also represent the
“Extended Closed Group”. As the Extended Closed Group includes all material subsidiaries of Ora Banda Mining Limited,
there is no difference between the Consolidated Statement of Profit or Loss and Other Comprehensive Income and
Consolidated Statement of Financial Position of the Ora Banda Mining Limited consolidated entity and the Extended Closed
Group.
71
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Ora Banda Mining Limited and its controlled entities:
(a)
(b)
(c)
(d)
the Group’s consolidated financial statements and notes set out on pages 38 to 71 are in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance,
for the financial year ended on that date; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001;
the financial report also complies with International Financial Reporting Standards as set out in Note 1;
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become
due and payable; and
at the date of this declaration, there are reasonable grounds to believe that the Company and the subsidiaries
identified in Note 24, will be able to meet any obligations or liabilities to which they are or may become subject
to by virtue of the Deed of Cross Guarantee between the Company and those subsidiaries.
2.
the directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Managing Director and Chief Financial Officer for the financial year ended 30 June 2021.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Peter Nicholson
Managing Director
Perth, Western Australia
30 September 2021
72
INDEPENDENT AUDITOR’S REPORT
73
INDEPENDENT AUDITOR’S REPORT
74
INDEPENDENT AUDITOR’S REPORT
75
INDEPENDENT AUDITOR’S REPORT
76
INDEPENDENT AUDITOR’S REPORT
77
ASX ADDITIONAL INFORMATION
Tenement No.
Status
Registered Holder
Ownership Location
E16/0344
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0456
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0473
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E16/0474
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E16/0475
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E16/0480
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E16/0482
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0483
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0484
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0486
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E16/0487
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
E24/0203
Granted
ATRIPLEX PTY LIMITED
100/100
Kalgoorlie
E24/0230
Application SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
E29/0640
Granted
MT IDA GOLD PTY LTD
100/100
Menzies
E29/0889
Granted
HERON RESOURCES LIMITED
100/100
Menzies
E29/0895
Granted
MT IDA GOLD PTY LTD
100/100
Menzies
E29/0955
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
E29/0964
Granted
Mt IDA PTY LTD
E30/0333
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
100/100
Menzies
E30/0335
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
E30/0338
Granted
CARNEGIE GOLD PTY LTD
E30/0454
Granted
CARNEGIE GOLD PTY LTD
E30/0468
Granted
CARNEGIE GOLD PTY LTD
E30/0490
Granted
CARNEGIE GOLD PTY LTD
E30/0491
Granted
CARNEGIE GOLD PTY LTD
E30/0504
Application CARNEGIE GOLD PTY LTD
G30/0006
Application CARNEGIE GOLD PTY LTD
G30/0007
Application CARNEGIE GOLD PTY LTD
G30/0008
Granted
CARNEGIE GOLD PTY LTD
G30/0009
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
L15/0224
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L16/0058
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L16/0062
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L16/0072
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
78
ASX ADDITIONAL INFORMATION
Tenement No.
L16/0073
Status
Granted
Registered Holder
CARNEGIE GOLD PTY LTD
Ownership Location
Coolgardie
100/100
L16/0103
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L16/0134
Application SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L16/0137
Application SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L16/0138
Application SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L24/0085
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
L24/0115
Granted
SIBERIA MINING CORPORATION PTY LTD
96/96
Kalgoorlie
L24/0170
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0174
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0188
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
L24/0224
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
L24/0233
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0240
Granted
CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0242
Application CARNEGIE GOLD PTY LTD
100/100
Kalgoorlie
L24/0246
Application SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
L29/0074
Granted
MT IDA GOLD PTY LTD
L30/0035
Granted
CARNEGIE GOLD PTY LTD
L30/0037
Granted
CARNEGIE GOLD PTY LTD
L30/0066
Granted
CARNEGIE GOLD PTY LTD
L30/0069
Granted
CARNEGIE GOLD PTY LTD
L30/0074
Granted
CARNEGIE GOLD PTY LTD
L30/0077
Application CARNEGIE GOLD PTY LTD
L30/0078
Application CARNEGIE GOLD PTY LTD
L30/0079
Application CARNEGIE GOLD PTY LTD
L30/0080
Application CARNEGIE GOLD PTY LTD
L30/0081
Application CARNEGIE GOLD PTY LTD
L30/0082
Application CARNEGIE GOLD PTY LTD
L30/0083
Application CARNEGIE GOLD PTY LTD
L30/0086
Application CARNEGIE GOLD PTY LTD
L30/0088
Application CARNEGIE GOLD PTY LTD
100/100
Menzies
96/96
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
M16/0262
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
M16/0263
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
M16/0264
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Coolgardie
79
ASX ADDITIONAL INFORMATION
Tenement No.
M16/0268
Status
Granted
Registered Holder
CARNEGIE GOLD PTY LTD
Ownership Location
Coolgardie
100/100
M16/0470
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
M24/0039
Granted
CHARLES ROBERT GARDNER
96/96
Kalgoorlie
M24/0115
Granted
SIBERIA MINING CORPORATION PTY LTD
96/96
Kalgoorlie
M24/0159
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0208
Granted
SIBERIA MINING CORPORATION PTY LTD
96/96
Kalgoorlie
M24/0376
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0634
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0660
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0663
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0664
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0665
Granted
HERON RESOURCES LIMITED / IMPRESS ENERGY 90/100 & 10/100 Kalgoorlie
M24/0683-I
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0686
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0757
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0772-I
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0797
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0845
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0846
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0847
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0848
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0915-I
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0916
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
M24/0960
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
M24/0973
Application HERON RESOURCES LIMITED
100/100
Kalgoorlie
M29/0002
Granted
MT IDA GOLD PTY LTD
100/100
Menzies
M29/0165
Granted
MT IDA GOLD PTY LTD & STUART LESLIE HOOPER
95/100 & 5/100 Menzies
M29/0422
Granted
MT IDA GOLD PTY LTD
M30/0102
Granted
CARNEGIE GOLD PTY LTD
M30/0103
Granted
CARNEGIE GOLD PTY LTD
M30/0111
Granted
CARNEGIE GOLD PTY LTD
M30/0123
Granted
CARNEGIE GOLD PTY LTD
M30/0126
Granted
CARNEGIE GOLD PTY LTD
M30/0157
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
100/100
Menzies
96/96
Menzies
80
ASX ADDITIONAL INFORMATION
Tenement No.
M30/0187
Status
Granted
Registered Holder
CARNEGIE GOLD PTY LTD
Ownership Location
Coolgardie
100/100
M30/0253
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
M30/0255
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
M30/0256
Granted
CARNEGIE GOLD PTY LTD
100/100
Menzies
P16/2921
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
P16/2922
Granted
CARNEGIE GOLD PTY LTD
100/100
Coolgardie
P24/4395
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
P24/4396
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
P24/4400
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
P24/4401
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
P24/4402
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
P24/4403
Granted
HERON RESOURCES LIMITED
100/100
Kalgoorlie
P24/4750
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/4751
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/4754
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/5073
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
P24/5074
Granted
SIBERIA MINING CORPORATION PTY LTD
100/100
Kalgoorlie
Tenement Acquisitions & Disposals
Mining tenements disposed:
Mining tenements acquired:
Nil
E30/504 granted on 15 September 2021
81
ASX ADDITIONAL INFORMATION
The following information is provided, in accordance with Listing Rule 4.10:
CORPORATE GOVERNANCE
The Company’s corporate governance plan is available on the Company’s website at www.orabandamining.com.au.
SECURITY HOLDERS
SUBSTANTIAL SHAREHOLDERS
The Company has the following substantial shareholders as at 15 September 2020:
•
•
Hawke’s Point Holdings I Limited
Perennial Value Management Limited
Shares Held
384,930,323
60,790,279
NUMBER OF HOLDERS IN EACH CLASS OF EQUITY SECURITIES AND THE VOTING RIGHTS ATTACHED (AS AT 15 SEPTEMBER 2020)
ORDINARY SHARES
There are 3,081 holders of ordinary shares as at 15 September 2021. Each shareholder is entitled to one vote per share. In
accordance with the Company’s constitution, on a show of hands every member present in person or by proxy or attorney
or duly authorised representative has one vote for every fully paid ordinary share held.
OPTIONS & PERFORMANCE RIGHTS
There are 406 holders of unlisted options and 17 holders of performance rights. There are no voting rights attaching to the
options or performance rights. A total of 26,224,237 options and 7,687,215 performance rights are on issue. If exercised, the
26,224,237 options and 7,687,215 performance rights will convert into 33,911,452 ordinary shares.
The options and performance rights have the following exercise prices and expiry dates:
No. of holders
No. of Options
Exercise Price
60
59
348
347
4
11
12
1
2,178,331
2,178,331
3,854,862
3,854,862
2,916,667
10,751,184
7,687,215
490,000
$2.9578
$3.3328
$2.9578
$3.3328
$1.1203
Nil
Nil
Nil
Expiry Date
31/01/2023
31/01/2023
02/02/2023
02/02/2023
11/06/2023
Various
Various
30/09/2021
82
ASX ADDITIONAL INFORMATION
DISTRIBUTION SCHEDULE OF THE NUMBER OF HOLDERS IN EACH CLASS OF EQUITY SECURITY AS AT
15 SEPTEMBER 2021
ORDINARY SHARES
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
288
578
431
1,329
455
3,081
Units
55,389
1,798,230
3,368,112
51,867,956
916,644,818
973,734,505
UNLISTED OPTIONS EXPIRING 31 JANUARY 2023 AT $2.9578
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
UNLISTED OPTIONS EXPIRING 31 JANUARY 2023 AT $3.3328
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
UNLISTED OPTIONS EXPIRING 2 FEBRUARY 2023 AT $2.9578
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
UNLISTED OPTIONS EXPIRING 2 FEBRUARY 2023 AT $3.3328
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total holders
3
23
13
16
5
60
Total holders
2
23
13
16
5
59
Total holders
286
47
8
5
5
348
Total holders
286
45
9
5
2
Units
2,666
74,996
97,166
466,836
1,536,667
2,178,331
Units
1,666
74,996
98,166
466,836
1,536,667
2,178,331
Units
48,419
112,365
58,269
206,642
3,429,167
3,854,862
Units
48,419
104,040
66,594
206,642
3,429,167
Total
3,854,862
DISTRIBUTION SCHEDULE OF THE NUMBER OF HOLDERS IN EACH CLASS OF EQUITY SECURITY AS AT
15 SEPTEMBER 2021 (Cont)
347
83
% Units
0.01
0.18
0.35
5.33
94.13
100.00
% Units
0.12
3.44
4.46
21.43
70.55
100.00
% Units
0.08
3.44
4.51
21.43
70.54
100.00
% Units
1.26
2.91
1.51
5.36
88.96
100.00
% Units
1.26
2.70
1.73
5.36
88.95
100.00
ASX ADDITIONAL INFORMATION
UNLISTED OPTIONS EXPIRING 11 JUNE 2023 AT $1.1203
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
Units
% Units
-
-
-
-
4
4
-
-
-
-
-
-
-
-
2,916,667
2,916,667
100.00
100.00
UNLISTED INCENTIVE OPTIONS EXPIRING BETWEEN 30 SEPTEMBER 2021 AND 30 JUNE 2024 AT NIL EXERCISE PRICE
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
Units
% Units
-
-
-
-
10
10
-
-
-
-
-
-
-
-
10,751,184
10,751,184
100.00
100.00
UNLISTED PERFORMANCE RIGHTS EXPIRING BETWEEN 30 SEPTEMBER 2021 AND 30 JUNE 2028 AT NIL EXERCISE PRICE
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
Units
% Units
-
-
-
-
12
12
-
-
-
-
7,687,215
7,687,215
-
-
-
-
100.00
100.00
UNLISTED PERFORMANCE OPTIONS EXPIRING ON EVENT RELATED DATES AT NIL EXERCISE PRICE
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
Units
% Units
-
-
-
-
1
1
-
-
-
-
490,000
490,000
-
-
-
-
100.00
100.00
MARKETABLE PARCEL
On 15 September 2021 there were 778 shareholders with less than a marketable parcel (being 4,348 shares), based on the
closing price of $0.115 per share.
84
TWENTY LARGEST HOLDERS OF EACH CLASS OF QUOTED SECURITY
The names of the 20 largest holders of each class of quoted security, the number of equity securities each holds and the
percentage of issued capital each holds (as at 15 September 2021) are set out below:
ASX ADDITIONAL INFORMATION
Rank Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
NATIONAL NOMINEES LIMITED
NPS MINING ALLIANCE PTY LIMITED
MR HENDRICUS INDRISIE
CS THIRD NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-
WYLLIE GROUP
BNP PARIBAS NOMINEES PTY LTD
RALMANA PTY LIMITED
INVESTMET LIMITED (IN LIQUIDATION)
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
MANFAM PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
MR ANDREW STEPHEN WILLIAM BROWN + MR IAIN RAYMOND BROWN
WHITEHALL NOMINEES PTY LIMITED
LASTING LEGACY PTY LIMITED
VINGO HOLDINGS LIMITED
HARVEY SPRINGS ESTATE PTY LIMITED
TOP TWENTY SHAREHOLDERS
TOTAL REMAINING SHAREHOLDERS
TOTAL SHAREHOLDERS
Units %of Units
395,952,859
40.66
80,396,960
52,502,446
40,619,516
31,085,556
23,481,362
18,790,788
18,298,006
15,805,116
14,555,270
9,044,586
8,016,667
7,957,662
5,907,407
5,686,754
5,081,739
4,500,000
4,000,000
3,431,355
3,307,447
8.26
5.39
4.17
3.19
2.41
1.93
1.88
1.62
1.49
0.93
0.82
0.82
0.61
0.58
0.52
0.46
0.41
0.35
0.34
748,421,496
225,313,009
76.86
23.14
973,734,505
100.00
85