ANNUAL REPORT 2021
ORA GOLD LIMITED
CORPORATE DIRECTORY
DIRECTORS
CONTENTS
Rick W Crabb
Non-Executive Chairman
Frank DeMarte
Executive Director
Malcolm R J Randall
Non-Executive Director
Philip G Crabb
Non-Executive Director
Philip F Bruce
Non-Executive Director
SECRETARY
Frank DeMarte
REGISTERED OFFICE AND BUSINESS
ADDRESS
Level 2,
47 Stirling Highway
NEDLANDS WA 6009
Telephone: +618 9389 6927
Facsimile: +618 9389 5593
Email: info@ora.gold
Web: www.ora.gold
Australian Business Number:
74 950 465 654
AUDITOR
Stantons International
Level 2, 1 Walker Avenue
WEST PERTH WA 6005
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 11
172 St Georges Terrace
PERTH WA 6000
Telephone: 1300 850 505 (within Australia)
Telephone: +61 3 9415 4000 (outside Australia)
STOCK EXCHANGE
Australian Securities Exchange Limited
Home Branch Perth
Level 40, Central Park
152-158 St Georges Terrace
PERTH WA 6000
CHAIRMAN’S LETTER
REVIEW OF OPERATIONS
DIRECTORS’ REPORT
CORPORATE GOVERNANCE
REMUNERATION REPORT
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 TO
THE MEMBERS
AUDITOR’S INDEPENDENCE DECLARATION
1
2
29
33
33
43
44
45
46
47
77
78
82
ADDITIONAL ASX INFORMATION
83
ASX ADDITIONAL INFORMATION
The Annual Report covers both Ora Gold Limited as an
individual entity and the Consolidated Entity consisting of
Ora Gold Limited and its controlled entities.
ASX - OAU
ORA GOLD LIMITED
CHAIRMAN’S LETTER
Dear Shareholder
It gives me pleasure to present the 2021 Annual Report for Ora Gold Limited (Company) covering activity from 1 October
2020 to 30 September 2021.
This year again was affected by COVID-19 although the impact in Western Australia for explorers at least, was less
challenging.
Company strategy remains focussed on generating cash flow from existing gold deposits on its Garden Gully Project
on the Abbotts Greenstone Belt, while exploring for large deposits. Gold projects with near-term development potential
are Crown Prince, Lydia, Abbotts, Transylvania and Abernethy.
On 21 October 2019, the Company announced an upgraded total resource of 479,000 tonnes at 3.6 g/t gold for 56,000
ounces of gold at the Crown Prince Gold Project and on 11 December, announced the results of a Scoping Study
indicating a potentially economic open pit and a Production Target of 177,500t at 4.1g/t (97% Indicated Resource gold
content).
The mining lease application for the Crown Prince Gold Project progressed on schedule through the Department of
Mines, Industry Regulation and Safety. Negotiations with the Native Title applicants for the region unfortunately
progressed slowly. The terms of the Native Title and Heritage Agreement were agreed with the Wajarri Yamaji working
group in July 2021, but it was not until their Native Title claim was formally endorsed by the Federal Court on 29 July
2021 and the Wajarri Yamaji Aboriginal Corporation activated, that arrangements for formal execution could be made.
Finally on 12 November 2021 the Corporation executed the Agreement, thus clearing the way for the mining leases for
Crown Prince and Lydia to be granted in the near future.
In May 2021, the Company announced excellent assay results from drilling undertaken on the Lydia Prospect. The gold
intersections demonstrated the high potential of shallow supergene gold mineralization above previously identified
deeper gold mineralisation. In September the Company announced high grade gold intercepts at shallow depths from
drilling undertaken on the Transylvania Prospect.
These results further reinforce that Ora Gold’s Garden Gully Project is a significant gold-bearing province with high-
grade intercepts from surface, lower strip ratios and potentially reduced working capital.
Additional information on the exploration activities carried out on the Company’s various gold projects are provided in
the Review of Operations section of the Annual Report.
I would like to take this opportunity to thank our hard-working management team, Board of Directors and our geological
and administrative staff. Also, thank you to you our loyal Shareholders for your support notwithstanding the frustrations
due to the delay in finalising the native Title and Heritage Agreement.
The 2022 financial period will see further focussed activity by your Company with the principal goals of bringing Crown
Prince into production and continuing exploration at the numerous other Abbotts Greenstone Belt areas.
Rick Crabb
Chairman
1
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Highlights
• Company tenements on the Abbotts Greenstone Belt located north-west of Meekatharra,
Western Australia cover the whole prospective dolerite unit hosting a large gold and base
metal mineralised system with numerous gold and base metal prospects from early stage to
advanced projects
• Company strategy is focussed on generating early cash flow from existing gold deposits on
the Abbotts Greenstone Belt while exploring for large deposits
• Gold projects with near-term development potential are Crown Prince, Lydia, Abbotts,
Transylvania and Abernethy areas
• Potentially economic Crown Prince open pit supported by close-spaced drilling to 100m depth
and completion of scoping study (9 December 2019) with a Production Target of 177,500t at
4.1g/t Au (97% Indicated Resource) based on the following resources:
Indicated Resource
218,000 tonnes at 4.3g/t Au for 30,000 ounces
Inferred Resource
261,000 tonnes at 3.1g/t Au for 26,000 ounces
Total Resource
479,000 tonnes at 3.6g/t Au for 56,000 ounces
• Mining Lease applications for Crown Prince Gold Project (M51/886) and Lydia Gold Project
(M51/889) close to final approvals with the Native Title Agreement signed after year end (15
November 2021)
• Drilling on the Lydia Shear zone has outlined potential high-grade gold zones from surface to
over 270m depth and extended the shallow zone to the north
• Abbotts Gold Project drilling over a 1,500m strike identified new South Abbotts prospect and
has strong gold mineralisation from surface to over 150m depth
• Base metal and gold prospects at Government Well continue to be tested by soil surveys and
drilling
•
Transylvania drilling has extended shallow gold mineralisation
• Abernethy Shear Zone mineralisation is modelled on the Cue/Day Dawn styles with intrusive
related gold potential with drilling to commence
2
ORA GOLD LIMITED
REVIEW OF OPERATIONS
About Ora Gold
Ora Gold Limited (Ora Gold or Company) is an ASX-listed company exploring and conducting pre-production
activities on its wholly-owned Garden Gully Project tenements of 309km2 covering the majority of the
prospective Abbotts Greenstone Belt near Meekatharra, Western Australia (Figure 1). The near-term focus is
low-cost development of shallow gold mineralisation identified on the tenements, while exploring for gold and
base metals deposits.
Figure 1. Ora Gold’s tenements cover the majority of the prospective Abbotts Greenstone Belt
Priority Targets on the Abbotts Greenstone Belt
During the year Ora Gold has extended known mineralisation at Lydia, Abbotts and Transylvania in addition
to pre-development activities on the Crown Prince and Lydia gold projects. Further drilling on these and the
targets shown in Figure 2 is planned for the coming year. The most prospective feature of the Abbotts
Greenstone Belt is the sheared dolerite ridge along the eastern flank of the Abbotts Syncline, which hosts the
bulk of the mineralisation, and the north-east trending Abernethy Shear Zone in the south, which is the conduit
for mineralising fluids along the contact with the granitic basement.
Priority drill targets include:
• Lydia-Crown Prince-Eclipse Lineament (gold)
• Abbotts Lineament (gold and base metals)
• Government Well (base metals and gold)
• Abernethy Shear Zone (gold)
• Transylvania Prospect (gold)
• Young Prospect (gold)
3
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 2. Garden Gully Project showing areas of priority targets
4
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Garden Gully Project, WA (OAU 100%)
The Garden Gully tenements cover the majority of the prospective Abbotts Greenstone Belt (Figure 1) with 2
Mining Leases, 2 Mining Lease applications - Crown Prince and Lydia, 21 Prospecting Licences and 8
Exploration Licences covering about 309 square kilometres.
Holding most of the Abbotts Greenstone Belt, the Company has undertaken regional compilation and
interpretation of all historical data and is pursuing the application of modern exploration techniques across the
entire geological setting. Re-interpretation of the systems and structures controlling the mineralisation on the
greenstone belt has materially enhanced the potential for discovery of significant gold and base metal
deposits.
Widespread historical gold mining and significant, open-ended, JORC 2012 gold resources on the Garden
Gully tenements confirm the likely potential for additional economic deposits in the extensive gold-bearing
systems of the Abbotts Greenstone Belt. Historical underground mining produced approximately 60,000
ounces from these deposits at a grade of 30g/t Au (GSWA Bulletins 96 and 137) and the unmined extensions
are being delineated.
The advanced gold projects of Crown Prince, Lydia and Abbotts, which have early development potential, and
the many partially-drilled gold prospects provide a strong project pipeline outlook for Ora Gold.
As economic gold resources are confirmed and approvals obtained, the intention is to process the ore at an
external plant or to feed a dedicated plant.
In addition to the gold prospectivity of the Abbotts Greenstone Belt, the base metal prospects at Government
Well are interpreted to be of similar age and geological setting as the other significant base metal deposits in
the Yilgarn Craton.
Drilling during the year has enhanced the expectation of increasing mineral resources and demonstrated
extensions to known mineralisation. Further drilling is planned for the coming year to extend and delineate
resources in the prospects listed below and to drill along the high potential Abernethy Shear Zone.
Gold endowment in adjacent greenstone belts is many million ounces and drilling below shallow transported
cover is expected to realise a similar level in the Company’s Abbotts Greenstone Belt tenements.
Total drilling by Ora Gold on its Garden Gully Project during the year was as follows:
Type of Drilling
Holes Metres Drilled
Prospect
Comments/Holes No
Reverse Circulation
Reverse Circulation
Reverse Circulation
Reverse Circulation
Total
44
24
24
12
104
3,190
2,069
1,622
737
7,618
Abbotts
Lydia
Transylvania
Young
OGGRC289-316 and 336-351
OGGRC317-335 and 387-391
OGGRC352-374A
OGGRC375-386
Lydia-Crown Prince-Eclipse Lineament
This north-east trending structural lineament shown in Figure 3 is highly prospective for economic deposits
and has hosted historical gold mines and prospects associated with north striking shear zones in the southern
uplifted block of a late major cross-cutting fault zone.
5
ORA GOLD LIMITED
REVIEW OF OPERATIONS
The Native Title Agreement for the Crown Prince Gold Project Mining Lease application (M51/886) has been
signed after year end (15 November 2021), and while a 75m deep open pit has been studied, the primary
mineralisation of the Crown Prince deposit is only partially drilled and is open below 270m depth.
The deposit may have similar depth potential to Great Fingall of over 1,600m depth.
Figure 3. Lydia-Crown Prince-Eclipse Lineament main gold projects and prospects
The Native Title Agreement for the Crown Prince mining lease application includes the Lydia Gold Project
(M51/889). The Lydia deposit has strong gold mineralisation hosted by south-westerly plunging shoots within
a north-striking main shear zone and structural modelling indicates good continuity of the Lydia Shear Zone
along strike and at depth. Drilling during the year extended shallow mineralisation to the north and infill and
deeper drilling is planned.
The Crown Prince East prospect is to be drilled in the coming year to test extensions of several historic gold
intersections at the contact between shale/mafic schists and deformed ultramafic.
6
ORA GOLD LIMITED
REVIEW OF OPERATIONS
The Eclipse prospect has old workings along a mineralised structure and surfacing for nuggetty gold. Mapping
and soil sampling was completed and drilling is planned to extend historical supergene intersections and to
test a parallel structure to the south-west.
Figure 4. Crown Prince South prospect soil geochemistry, gold intersections and proposed holes.
The Crown Prince South prospect is along strike of the Crown Prince bounding shear zones (Figure 4) with
anomalous gold intersected in earlier Ora Gold drilling.
Crown Prince Gold Project
The Crown Prince is a near-development shallow open pit project located about 22 kilometres north-west of
Meekatharra in Western Australia via the Great Northern Highway and the Mt Clere Road on the Lydia-Crown
Prince-Eclipse Lineament (Figure 5).
Between 1908 and 1915, the Crown Prince deposit was partially mined along two strongly mineralised quartz
veins on four underground levels to a depth of 90m. Production was 29,400 tonnes for 20,178 ounces at a
recovered grade of 21.7g/t Au using gravity and cyanidation processing, and no mining has occurred since.
Ora Gold compiled and validated earlier data on the Crown Prince Gold Project and included deeper drilling
from its 2017/18 programs to prepare the Mineral Resource estimate to a depth of 270m, which was released
on 21 October 2019 as follows:
Indicated Resource
Inferred Resource
Total Resource
218,000 tonnes at 4.3g/t Au for 30,000 ounces
261,000 tonnes at 3.1g/t Au for 26,000 ounces
479,000 tonnes at 3.6g/t Au for 56,000 ounces
Further drilling at an appropriate time will outline the high-grade mineralisation below 270m depth and in the
newly identified parallel zones that remain open along strike and at depth.
The Crown Prince deposit is interpreted to have depth potential and similar mineralisation style to the high
grade Great Fingall/Golden Crown deposits near Cue, Western Australia, which produced over 1.5Moz gold
to a depth of 750m below surface and has been drilled to over 1,600m depth.
7
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 5. Mining Lease applications over Crown Prince (MLA51/886) and Lydia (MLA51/889)
The gold mineralisation is free-milling in association with quartz veining. In fresh rock it occurs with pyrite,
rare arsenopyrite and chalcopyrite at or near the contacts with black shales, quartz porphyry and mafic schists.
The Main Ore Body strikes WNW/SSE and dips to the SSW at 70⁰ and adjacent sub-parallel zones strike and
dip at about similar angles.
The Mining Lease application (M51/886) is progressing to final approval.
A scoping study for a 75m deep open pit over the Crown prince deposit with offsite processing by another
operator has provided a positive forecast financial outcome with physical and economic outcomes (11
December 2019) as follows:
Production Target
Grade
Stripping Ratio (tonnes)
Gold Recovery (processing at an offsite plant)
177,472 tonnes
4.14g/t
10.1
95%
Gold Produced (97% Indicated Resource)
22,444 ounces
Pre-development (including mobilisation)
Operating Cash Cost
All-In-Sustaining-Cost per ounce
Gold Price
Net distributable surplus before tax (+/-30%)
$1.4M
$891/ounce
$1,006/ounce
$2,000/ounce
A$21.1M
8
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Lydia Gold Project
The Lydia Gold Project is approximately 2km southwest of Crown Prince and is an advanced exploration project
with open pit and underground potential. During 2021, two reverse circulation programs totalling 24 RC holes
for 2,069m targeted oxide/supergene and primary mineralisation in the Central Lydia area and shallow strike
extensions in the North Lydia area (Figure 6). The deepest holes of were stopped due to slow penetration
rate and excess water, though strong mineralisation was still evident.
The following significant intersections were returned in the Central area:
➢ 20m at 1.00g/t Au from 43m (OGGRC262)
➢ 8m at 2.26g/t Au from 17m (OGGRC264)
➢ 7m at 116.8g/t Au from 7m, including 1m at 794.2g/t Au from 9m (OGGRC266)
➢ 17m at 1.33g/t Au from 6m, plus 5m at 2.23g/t Au from 74m (primary) (OGGRC271)
➢ 12m at 1.27g/t Au from 85m (primary) (OGGRC273)
➢ 10m at 1.54g/t Au from 32m (OGGRC274)
➢ 13m at 1.15g/t Au from 88m (primary) (OGGRC276)
➢ 13m at 1.49g/t Au from 81m (primary) (OGGRC277)
➢ 14m at 1.05g/t Au from 89m (primary) (OGGRC279)
➢ 6m at 2.94g/t Au from 31m (OGGRC282)
The drilling at North Lydia was a scout program to test for mineralisation along the interpreted northern strike
extension of the main mineralised shear zone. While modest intersections were returned; eg. 6m at 0.83g/t
Au from 32m (OGGRC390) and 10m at 0.5g/t Au from 41m (OGGRC391), these are significant indicators of
mineralisation continuity that require further drilling.
The strongly mineralised Lydia Shear Zone is now partially drilled along about a 300m strike length and to a
depth of 250m. Current interpretation of the mineralisation is of high gold grades at lithological margins with
mineralised fault breccias along the Lydia Shear Zone, a pervasive supergene blanket, persistent high grade
mineralisation in the relict structures within the oxide zone and open primary mineralisation at depth (Figure
7).
The deeper primary mineralisation at Lydia was drilled in a 2017 Ora Gold program, with 14m at 2.20g/t Au
from 216m and 15m at 1.60g/t Au from 243m (TGGRC033) and though these intersections are modest grades,
the depth potential for the Lydia deposit is similar to the Crown Prince and other prospective targets in the
Abbotts greenstone belt.
Drilling to date by Ora Gold has outlined oxide/supergene/primary gold mineralisation in an 80m wide dilation
zone of about 300m strike length and improved the outlook for mine development.
Drilling programs will be designed to infill the existing mineralisation envelope with the aim to establish a
maiden resource, and with historical mining over a strike length of about 500m, there may be extensions or
repetitions found with further drilling.
9
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 6. Significant gold intersections from the 2021 shallow drilling programs along the Lydia Shear Zone showing
supergene and primary mineralisation intersections and new northern extension
10
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 7. Lydia SSW/NNE long section showing drill holes within a 10m slice with significant intersections and the
current interpretation of the mineralisation, structures and lithology.
Abbotts Project (Gold)
The Abbotts Gold Project is located 37km north-north-west of Meekatharra alongside the well-maintained
gravel Mt Clere Road. The historical Abbotts Mining Centre produced 37,055 tonnes at 32g/t Au recovered
grade (GSWA Bull. 96) from a series of mineralised structures over 1,000m strike length and to a depth of
less than 100m (Figure 8).
During the year Ora Gold completed drilling programs for near-surface mineralisation along the Abbotts
Lineament of 44 short reverse circulation holes totalling 3,190m.
Figure 8. Long section interpretation of the Abbotts prospect north-plunging mineralised zone
11
ORA GOLD LIMITED
REVIEW OF OPERATIONS
The drilling programs tested the South-West Abbotts, South Abbotts, South New Murchison King and North
Mt Vranizan prospects (Figure 9) and intersected mineralised cross-structures along the main structural
corridor and a new stockwork mineralisation at North Mt Vranizan.
The following more significant intersections were returned:
South-West Abbotts
➢ 4m at 7.32g/t Au from 42m including 1m at 21.6g/t Au from 42m (OGGRC289)
South Abbotts (see Figures 10, 11 and 12)
➢ 17m at 2.81g/t Au from 18m including 1m at 33.09g/t Au from 19m (OGGRC295)
➢ 10m at 4.9g/t Au from 68m including 2m at 18.2g/t Au from 72m (OGGRC303)
South New Murchison King
➢ 4m at 3.85g/t Au from 41m (OGGRC310)
North Mt Vranizan
➢ 7m at 1.67g/t Au from 48 (OGGRC313)
➢ 8m at 5.42g/t Au from 36m including 3m at 11.52g/t Au from 37m, and
16m at 1.93g/t Au from 46m including 2m at 8.95g/t Au from 48m (OGGRC314)
➢ 3m at 2.83g/t Au from 45m and 5m at 1.97g/t Au from 60m (OGGRC315)
Figure 9. Abbotts Gold Project showing prospects, Ora Gold drill holes and potential pit outlines
12
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 10: South Abbotts showing northerly and north-westerly striking mineralised shear zones with historical and recent
drill hole intersections
South Abbotts is richly-endowed with mineralisation in both the main north-south structures and in the cross-
structures. No previous production is recorded from the South Abbotts area although shallow historical mining
reached 30m depth and the results of prospectors surfacing for nuggets with a bulldozer and metal detector
can be seen on the above aerial photo.
13
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 11: South Abbotts cross section (A-A’) on Eastern Shear Zone showing significant intersections
14
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 12: South Abbotts cross section (B-B) on Western Shear Zone showing significant intersections
15
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Drill hole OGGRC303 was drilled vertically to a depth of 78m and was stopped in mineralisation due to a
strong water flow and subsequent low sample recovery.
Earlier drilling the Eastern Shear Zone below the high grade shallow historical workings has confirmed its
continuity to 150m below surface with the more significant Ora Gold 2020 drill intersections as follows:
➢ 6m at 7.94 g/t Au from 47m in OGGRC173
➢ 4m at 17.82 g/t Au from 0m in OGGRC181
➢ 1m at 6.72 g/t Au from 38m in OGGRC187
➢ 10m at 3.15 g/t Au from 42m in OGGRC188
➢ 1m at 5.72 g/t Au from 10m in OGGRC190
➢ 4m at 6.50 g/t Au from 48m in OGGRC212
➢ 1.7m at 8.04 g/t Au from 125.8m in OGGDD217
The main zone of the Abbotts mineralisation is associated with both the Eastern and Western Shear Zones
and linking structures and it outcrops over a 1,500m strike. This ~80m wide zone is interpreted to plunge
towards the north under cover and drilling is planned to pursue the down-plunge mineralisation to the north
following the earlier deeper drilling and some excellent results below the historical Mt Vranizan mine workings
during the year.
Both infill and deeper drilling are planned at Abbotts to delineate resources in the extensive system for open
pit development and to assess initial underground potential of the interpreted shallow-north-plunging
mineralisation.
Government Well Prospect (Base Metals and Gold)
The Government Well prospects are in the Greensleeves Formation and of similar age and geological setting
as significant base metal deposits in the Yilgarn Craton.
Two strong electromagnetic conductors (CVG and CVI), which are located about 5km north of the Abbotts
Gold Project were drilled by Ora Gold in 2019. These base metal and gold prospects were identified by
MLTEM (Moving Loop Transient Electromagnetic) and are shown on Figure 13. Both conductors are modelled
to be dipping steeply to the west under a magnetic mafic-ultramafic package.
Drilling of the CVI (northern) conductor discovered a new gold zone of 400m strike with drill intersections in
the footwall of the CVI conductor of 15m at 0.51g/t Au from 181m, including 3m at 1.05g/t Au from 185m
(OGGRC253) and 26m at 0.5g/t Au from 34m, including 5m at 1.71g/t Au from 48m (OGGRC258) within the
weathering profile. This discovery is modelled as gold mineralisation associated with strongly deformed wall
rocks of the conductor. Conductors and chargeable geophysical anomalies were previously assessed for base
metal mineralisation only, and while these results are of moderate gold grade, they are excellent indicators of
gold mineralisation requiring further drilling.
The gold mineralisation at the CVI prospect is interpreted to be in a dilational zone between north-east trending
shears, which are sandwiched between a highly magnetic ultramafic unit to the west and an amphibolitic
package to the east. In addition to further drilling on the gold mineralised zone closely associated with the
amphibolitic package, drilling for possible nickel mineralisation will be done on the highly magnetic ultramafic
unit, where anomalous chromium/nickel was found in soil geochemical surveys (Figure 14).
At the CVG (southern) conductor, two zones with highly anomalous gold, zinc, copper and lead values were
intersected in the 2019 program and further drilling is required to follow up.
16
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 13. Government Well modelled EM conductors on total magnetic intensity image and aerial photo
17
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 14. Structural setting of the CVI conductor with drill hole traces on TMI and aerial photo images.
18
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 15. Abernethy Shear Zone showing main prospects and gold intersections
Abernethy Shear Zone
This major structure located on the south extremity of the tenure was a gold target for various explorers since
the 1970s (Figure 15). The geological and structural setting is similar to the Cue and Day Dawn areas, which
host high grade deposits that extend to over 1,000m depth.
Although previous explorers drilled multiple high grade gold intersections along a 7km strike, the lack of
outcrop, large variations in thickness of transported cover and the presence of anomalous arsenic in multiple
(non-mineralised) black shale units, resulted in this earlier drilling being done in the wrong areas.
Evaluation and re-interpretation of all previous data shows that the main gold target along the Abernethy Shear
Zone is the footwall contact of a tonalite intrusive unit with shale or chloritic schist units due to the competency
contrast of these rocks. The hanging wall (north-western) side of the tonalite unit has given the best gold
intersections to date, which are yet to be followed up, however most of these shallow high-grade gold
intersections appear to be of a paleo-channel system sourced from the tonalite contact mineralisation. The
more prospective footwall side of the tonalite remains a largely undrilled target.
Ora Gold will focus on the two tonalite contact zones along the main structure at the Kingswood prospect and
between the Abernethy South and Airstrip prospects where the better gold intercepts occur.
19
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Transylvania Prospect (Gold)
The recently completed reverse circulation drilling program at the Transylvania Prospect, which is located 5km
south of the Crown Prince and Lydia gold deposits demonstrated the high-grade potential of shallow
supergene mineralisation. The historical workings and drilling to date has outlined strong gold mineralisation
over a strike length of at least 180m, which is open in both directions and located above primary gold
mineralisation previously intercepted at depth.
Twenty-four short reverse circulation holes for a total of 1,617m were completed over this prospect (Figures 1
and 2) and most of them have intersected mineralised shear zones.
The results include the following intersections in oxide/supergene mineralisation from below thin transported
cover:
➢ 4m at 4.32 g/t Au from 49m, incl. 1m at 10.14 g/t Au from 49m in OGGRC355
➢ 6m at 5.94 g/t Au from 2m, incl. 3m at 10.37 g/t Au from 2m in OGGRC362
➢ and 3m at 3.67 g/t Au from 68m, incl. 1m at 7.80 g/t Au from 68m
➢ 7m at 3.43 g/t Au from 10m, incl. 5m at 4.17 g/t Au from 11m in OGGRC364
➢ and 4m at 3.74 g/t Au from 25m, incl. 1m at 7.23 g/t Au from 28m
➢ 10m at 3.56 g/t Au from 11m, incl. 3m at 6.90 g/t Au from 13m in OGGRC369
The program was designed to test the central part of the SAM (sub-audio magnetic target - TR01), which was
previously defined over an area of scattered shallow old workings. Three lines of shallow drill holes were in
1989 by Matlock-Kestrel returned several supergene gold intersections. Since 2016 the Company has drilled
several deep reverse circulation holes, which intersected primary mineralisation and alteration consisting of
silica-carbonate-sericite-arsenopyrite within sheared mafic schist below the base of oxidation. Those results
include:
➢ 6m at 2.84g/t Au from 103m including 2m at 6.17g/t Au from 106m (TGGRC022)
➢ 8m at 1.66g/t Au from 69m and 2m at 2.06g/t Au from 82m (TGGRC024)
➢ 7m at 1.65g/t Au from 107m including 2m at 5.1g/t Au from 108m (TGGRC044)
➢ 8m at 3.2g/t Au from 67m including 3m at 8.08g/t Au from 68m (TGGRC123)
The Transylvania results will be followed up with further drilling, which may delineate additional resources for
the Golden Gully Project.
20
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 16. Transylvania Gold Prospect showing Ora Gold significant drill intersections
21
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Young Prospect (Gold)
This prospect is located on the north-eastern flank of the Abbotts Greenstone Belt and at the northern end
closure of the prospective sheared dolerite, where limited exploration and drilling were undertaken by BP
Mining and St Barbara Mines in the past.
Several old gold workings are present within the area and Ora Gold has intersected high-grade gold in shallow
air core drilling to the west of the workings. A SAM survey has delineated multiple targets for further drilling.
During the year, twelve short reverse circulation holes for a total of 737m were completed over the 300 x 300m
Young gold prospect to test both soil anomalies and various sub-audio magnetic (SAM) targets (Figure 17).
Most of the elevated gold intercepts received were from the western part of the prospect where a drill line was
undertaken over the north-west trending SAM targets.
While drilling did not intersect the high grade mineralisation from an Ora Gold previous drill hole of 6m at
10.99g/t Au from 14m (TGGAC181), the next program will be extended south-easterly over that zone.
Note that drilling intersections may not reflect the true width of the mineralisation nor indicate the actual dip
and plunge of the interpreted mineralised shear zone.
Figure 17. Young gold prospect showing the SAM targets and recent and previous gold drill intercepts
22
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Additional Abbotts Greenstone Belt targets
Numerous additional gold and base metal targets are being assessed on the Company’s Abbotts Greenstone
Belt tenements (Figure 18).
The Black Bull prospect is located one kilometre north-west of Young and was explored by BP and St Barbara
Mines for base metals and gold, targeting the ferruginous caps/potential gossans. The limited BP drilling tested
EM anomalies and intersected slightly sulphidic shales/graphitic schists and chloritic schists while SBM
intersected anomalous gold in two holes. A strong conductor was defined by a MLTEM (Moving Loop Transient
Electromagnetic) survey, which indicates a north-westerly strike with a steep south-westerly dip for the
conductor.
The discovery of gold mineralisation in the strongly deformed footwall in drilling the CVI conductor at
Government Well (13 November 2019) indicates that geophysical anomalies (conductive and chargeable)
assessed previously for base metal mineralisation are also prospective for gold mineralisation. Initial
targets based on this new model are being assessed for drilling.
Other prospects for gold deposits include the White Horse-Big Gum Lineament and the Blue Horse area,
which contain numerous old workings for gold. Best gold intersections in the White Horse – Big Gum area
have been obtained from the central part of the inferred structure at Starlight Moon prospect and rock chips
with visible gold up to 245g/t Au have been returned from White Horse area.
The Blue Horse prospect had limited ground XRF surveys and soil sampling carried out during the year. The
gold-hosting structure, which was tested in 1990’s by shallow drilling, contains anomalous arsenic content and
soil anomalism indicates that the shear/fault zone extends southerly for at least 300m, though not yet tested
by drilling.
23
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Figure 18. Targets in Ora Gold tenements over the prospective portion of the Abbotts Greenstone Belt
24
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Red Bore Base Metal Project (M52/597, OAU 15% FCI)
On 30 October 2020, the Company announced that it has entered into a new Joint Venture Agreement (JVA)
with Sandfire Resources Limited (Sandfire), the operator of the Degrussa Operations, in relation to the Red
Bore mining tenement. The Company previously held a 90% interest in the tenement and William Richmond
previously held a 10% interest. Under the JVA, Sandfire acquired a 75% interest in Red Bore (from the
Company’s existing 90% interest), and will be the manager, with the Company retaining a 15% interest, which
is free carried until a decision to mine.
In connection with the JVA, the Company and Sandfire also entered into a Deed of Settlement with Mr
Richmond to the effect that Sandfire will acquire Mr Richmond’s interest in Red Bore. Mr Richmond will retain
a 1.25% net smelter royalty over minerals produced by the Sandfire/Ora joint venture from Red Bore. The
Deed of Settlement resolved Mr Richmond’s claims against the Company and Sandfire, by providing a release
of those claims, and a discontinuance of his proceedings in the Federal Court of Australia. The Deed of
Settlement also terminates all existing agreements between the Company and Mr Richmond.
Upon Sandfire reaching a decision to mine, the Company has a put option to sell its retained 15% interest. If
the Company does not exercise its put option, Sandfire must continue to cover the Company’s share of any
cash calls by way of interest free loans repayable from 75% of the Company’s free cash flow from its share of
any minerals produced from Red Bore.
During the year Sandfire conducted a review of the previous downhole electromagnetic surveys over the Red
Bore tenement and holes RBCD001, TRBC105 and TRBDD016 were re-surveyed with the more powerful
ARMIT DHEM tool (Figure 19).
Figure 19. Red Bore tenement and the DeGrussa mine showing holes selected for DHEM re-survey.
Late-time anomalies consistent with the Red Bore Formation were observed in all three holes, which Newexco
modelled as a thin plate approximating a stratigraphic horizon and no anomalies consistent with discrete
bedrock conductors were identified.
25
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Keller Creek Nickel and Graphite Project (E80/4834, OAU 20% FCI)
Ora Gold holds a 20% free-carried interest in the Keller Creek tenement through to a decision to mine.
Panoramic Resources (PAN), which operates the Savannah Nickel Mine adjacent to the east of the tenement
holds 80% in Keller Creek and manages exploration on the tenement.
A recent PAN presentation (3 August 2021) stated that drilling is planned by PAN in the second half of FY22
of a potential north-western extension of the Savannah North Upper Zone. This zone may extend down-
plunge to the north-west into the Keller Creek tenement based on the strong electromagnetic anomalism in
drill hole SMD167A.
The PAN Annual Report 2020 also reported drilling results of graphite mineralisation on the Keller Creek
tenement and stated that “The grade and flake quality of the Keller Creek graphite appears to be very similar
to Hexagon Resources Limited’s (ASX: HXG) McIntosh Project, located 40km to the SE of Savannah, which
has a reported Mineral Resource (based on a 3% TGC cut-off grade) of 23.8 million tonnes grading 4.5% TGC
contained within four separate deposits. Based on the Company’s initial drill test results and the broad extents
of the graphitic horizons within the Keller Creek tenement demonstrated by previous electromagnetic surveys,
there is a high probability that the Keller Creek project tenement contains large quantities of graphite of a
similar grade and quality to the McIntosh Project.”
PRODUCTION AND DEVELOPMENT
None of Ora Gold’s projects are at a production or development stage and consequently there were no
activities during the quarter relating to production or development.
MINERAL RESOURCES AND ORE RESERVES STATEMENT:
Crown Prince Gold Project
The 2019 Mineral Resource estimate was undertaken by Ora Gold, consultants and Cube Consulting Pty Ltd
of Perth and announced on 21 October 2019, according to the requirements of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 (JORC Code) and the
Australian Securities Exchange Listing Rules (Listing Rules).
CROWN PRINCE GOLD PROJECT 2019 MINERAL RESOURCES ESTIMATE
Indicated Resource
Inferred Resource
Total Resource
Tonnes Grade
g/t Au
Ounces
Au
Tonnes Grade
g/t Au
Ounces
Au
Tonnes Grade
g/t Au
Ounces
Au
218,000
4.3
30,000
261,000
3.1
26,000
479,000
3.6
56,000
Figures are rounded to reflect relative uncertainty of the estimates
26
ORA GOLD LIMITED
REVIEW OF OPERATIONS
Red Bore Base Metal Project
Ora Gold has a 15% free carried interest in the estimated mineral resources at the Red Bore Copper-Gold
Project. Red Bore comprises one granted Mining Licence M52/597 and is a joint venture between Ora Gold
(15%) and Sandfire Resources Limited. The estimated Mineral Resources (100%) in the table below were
reported to the Australian Stock Exchange on 4 May 2012. Since the original Red Bore Mineral Resource
was reported in 2012, there have been no subsequent exploration results that would warrant a recalculation
of the resource.
RED BORE 2012 INDICATED MINERAL RESOURCES ESTIMATE
Material
Tonnes
Bulk
Density
Cu (%)
Tonnes
Cu
Au (g/t)
Au
Ounces
Oxide
20,000
Transitional
12,000
Fresh
16,000
48,000
3.2
3.2
3.1
3.2
2.9
4.2
4.0
3.6
600
480
660
1,740
0.40
0.50
0.40
0.40
270
180
190
650
Figures are rounded to reflect relative uncertainty of the estimates
COMPETENT PERSONS’ STATEMENT
The details contained in this report that pertain to Exploration Results, Mineral Resources or Ore Reserves,
are based upon, and fairly represent, information and supporting documentation compiled by Mr Philip
Mattinson, Mr Costica Vieru, Mr Philip Bruce and Mr Brian Fitzpatrick. Mr Mattinson and Mr Vieru are Members
of the Australian Institute of Geoscientists. Mr Mattinson is a consultant to the Company, Mr Vieru is a full-
time employee of the Company and Mr Bruce is a Fellow of the Australasian Institute of Mining and Metallurgy
and a Director of the Company. Mr Fitzpatrick is a Principal Geologist with Cube Consulting Pty Ltd and a
Member of the Australasian Institute of Mining and Metallurgy, who has undertaken check validation and
geo/statistical assessment of the data, then block modelled and estimated the tonnage and grade of the
mineralisation, which was assessed by Mr Vieru and Mr Bruce for appropriate cutoff grade and to confirm
resource categorisation. The Competent Persons have sufficient experience which is relevant to the style(s)
of mineralisation and type(s) of deposit under consideration and to the activity which they are undertaking to
qualify as Competent Persons as defined in the 2012 edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). All consent to the inclusion in this
report of the matters based upon their input into the information in the form and context in which it appears.
COMPETENT PERSON’S STATEMENT– Red Bore Base Metal Project
The information in this announcement that relates to Red Bore Project Exploration Results is based on
information compiled by Dr Jayson Meyers, who is a Fellow of the Australian Institute of Geoscientists. Dr
Meyers is a consultant to Mr William Richmond. Dr Meyers 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’. Dr Meyers consents to the inclusion in this
announcement of the matters based on his information in the form and context in which it appears.
27
ORA GOLD LIMITED
REVIEW OF OPERATIONS
SUMMARY OF TENEMENTS
Project / Tenement
Interest at
Start of
Year
Interest at
End of Year
Acquired
During the
Year
Disposed
During the
Year
Joint Venture
Partner/Farm-in
Party
E80/4834
20% fci
M52/597
90%
20% fci
15% fci
Western Australia
Keller Creek
Red Bore
Garden Gully Project
Garden Gully
Garden Gully
Garden Gully
E51/1661
E51/1721
E51/1737
Garden Gully Meeka NW
P51/2760
Garden Gully Meeka NW
P51/2761
Garden Gully Meeka NW
P51/2762
Garden Gully Meeka NW
P51/2763
Garden Gully Meeka NW
P51/2764
Garden Gully Meeka NW
P51/2765
Garden Gully South
Garden Gully South
Garden Gully South
Garden Gully South
Garden Gully South
Garden Gully South
Garden Gully North
Garden Gully North
Crown Prince
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
Abbotts
P51/2909
P51/2910
P51/2911
P51/2912
P51/2913
P51/2914
P51/2941
P51/2948
P51/3009
E51/1609
E51/1708
E51/1757
E51/1790
E51/1791
M51/390
M51/567
P51/2958
P51/2959
P51/2960
P51/2961
P51/2962
P51/2963
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Crown Prince
Lydia
MLA51/886
MLA51/889
-
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Panoramic (PAN)
Sandfire (SFR)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
ORA GOLD LIMITED
DIRECTORS’ REPORT
The Directors present their report on the Consolidated Entity (or Group) consisting of Ora Gold Limited and the entities it
controlled at the end of, or during, the year ended 30 September 2021.
INFORMATION ON DIRECTORS
The following persons were Directors of Ora Gold Limited (“Company”) and were in office during the financial year and
until the date of this report unless otherwise stated.
Mr Rick W Crabb
Mr Frank DeMarte
Mr Malcolm R J Randall
Mr Philip G Crabb
Mr Philip F Bruce
Non-Executive Chairman
Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
PRINCIPAL ACTIVITY
The principal activity of the Consolidated Entity during the year was mineral exploration in Australia. Other than the
foregoing, there were no significant changes in those activities during the year.
RESULT OF OPERATIONS
During the year the Consolidated Entity incurred a consolidated operating loss after tax of $2,402,905 (2020 – loss
$2,820,406).
DIVIDENDS
No dividends have been paid during the financial year and no dividend is recommended for the current year.
NATIVE TITLE
Claims of native title over certain of the Consolidated Entity’s tenements have been made, and may in the future be made
under the Commonwealth Native Title Act. In the event that native title is established by an indigenous community over
an area that is subject to the Consolidated Entity’s mining tenements, the nature of the native title may be such that consent
to mining may be required from that community but is withheld.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Consolidated Entity during the financial year not otherwise
dealt with in this report.
SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE
Since the end of the financial year, the Directors are not aware of matter or circumstance not otherwise dealt with in this
report or the Financial Statements, that has significantly or may significantly affect the operations of the Consolidated
Entity, the results of those operations or the state of affairs of the Consolidated Entity in subsequent years, the financial
effects of which have not been provided for in the 30 September 2021 financial statements:
Pro rata Non-Renounceable Rights Issue
On 2 November 2021, the Company announced a non-renounceable pro-rata entitlement offer on the basis of 1 new share
for every 6 existing shares at an issue price of $0.01 per share (Entitlement Offer) held by eligible shareholders to raise
approximately $1.4 million before costs. Following the completion of the Entitlement Offer on 3 December 2021, the
Company issued a total of 140,350,347 new shares at an issue price of $0.01 per share to raise $1.403 million (before
costs).
Native Title & heritage Agreement for Crown Prince & Lydia
On 15 November 2021, the Company announced that the Native Title and Heritage Agreement (“Agreement”) between
the Company’s subsidiary, Zeus Mining Pty Ltd (“Zeus”) the Wajarri Yamaji Aboriginal Corporation (CN7878) (“WYAC”)
and the Ngoonooru Wajarri Land Committee has been executed between the parties.
Issue of Broker Options in relation to the Entitlement Offer.
On 10 December 2021, the Company issued a total of 5,000,000 options exercisable at $0.02 per option expiring on 9
December 2024 to Novus Capital Limited (or its nominees) as part of their sponsoring broker fees.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Details of important developments in the operations of the Consolidated Entity are set out in the review of operations
section of this report. The Consolidated Entity will continue to explore its Australian tenement areas of interest for minerals,
and any significant information or data will be released in the market and to shareholders.
29
ORA GOLD LIMITED
DIRECTORS’ REPORT
ENVIRONMENTAL ISSUES AND REGULATIONS
The Consolidated Entity has interests in mining tenements (including prospecting, exploration and mining leases). The
leases and licence conditions contain environmental obligations. The Consolidated Entity has assessed whether there
are any particular or significant environmental regulations which apply. It has determined that the risk of non-compliance
is low, and has not identified any compliance breaches during the year. The directors are not aware of any environmental
matters which would have a significant adverse effect on the Consolidated Entity.
CORPORATE INFORMATION
Ora Gold Limited
Red Dragon Mines Pty Ltd
Zeus Mining Pty Ltd
Old Find Pty Ltd
INFORMATION ON DIRECTORS
RICK W CRABB
Skills and Experience
Parent entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
Non-Executive Chairman, B. JURIS (Hons), LLB, MBA, FAICD
Mr Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor of Laws
and Master of Business Administration from the University of Western Australia. He
practiced as a solicitor from 1980 to 2004 specialising in mining, corporate and
commercial law. He has advised on all legal aspects including financing, marketing,
government agreements and construction contracts for many resource development
projects in Australia and Africa.
Mr Crabb now focuses on his public company directorships and investments.
Mr Crabb was a Councillor on the Western Australian Division of the Australian
Institute of Company Directors from 2008 to 2017. Mr Crabb was appointed a director
on 20 November 2017 and Chairman on 28 February 2019.
Other current Directorships
Eagle Mountain Mining Limited (since 2017).
Former Directorships in last
three years
Special Responsibilities
Paladin Energy Ltd from 1994 to 2019.
Member of Nomination Committee from November 2017.
Member of Audit Committee from November 2017.
Member of Remuneration Committee from November 2017.
Interest in Shares and Options
at the date of this report
8,847,157 Ordinary shares.
FRANK DEMARTE
Skills and Experience
Other current Directorships
Former Directorships in last
three years
Special Responsibilities
7,000,000 Unquoted options expiring 1 March 2026 exercisable at 3.7 cents
each.
Executive Director, BBus (Acct), FGIA, FCG, FAICD
Mr DeMarte has over 38 years of experience in the mining and exploration industry in
Western Australia. Mr DeMarte has held executive positions with a number of listed
mining and exploration companies and is currently an Executive Director, Company
Secretary and Chief Financial Officer of the Company.
Mr DeMarte is experienced in areas of secretarial practice, management accounting
and corporate and financial management. Mr DeMarte holds a Bachelor of Business
majoring in Accounting and is a Fellow of the Chartered Governance Institute and a
Fellow of the Australian Institute of Company Directors. Mr DeMarte was appointed a
director on 30 April 2001.
None.
Magnetite Mines Limited from 2004 to 2020.
Member of Nomination Committee from December 2004.
Member of Remuneration Committee from April 2013.
Chief Financial Officer and Company Secretary.
30
ORA GOLD LIMITED
DIRECTORS’ REPORT
Interest in Shares and Options
at the date of this report
9,605,367 Ordinary shares.
3,000,000 Unquoted options expiring 23 February 2022 exercisable at 7 cents
each.
10,000,000 Unquoted options expiring 8 April 2025 exercisable at 1.8 cents each.
MALCOLM R J RANDALL
Non-Executive Director, B.Applied Chem, FAICD
Skills and Experience
Mr Randall holds a Bachelor of Applied Chemistry Degree and is a Fellow of the
Australian Institute of Company Directors. He has extensive experience in corporate,
management and marketing in the resource sector, including more than 25 years with
the Rio Tinto group of companies. His experience extends over a broad range of
commodities including iron ore, diamonds, base metals, coal, uranium, and industrial
minerals both in Australia and internationally. Mr Randall was appointed a director on
8 September 2003.
Other current Directorships
Former Directorships in last
three years
Special Responsibilities
Magnetite Mines Limited (since 2006).
Argosy Minerals Limited (since 2017).
Hastings Technology Metals Ltd (since 2019).
Summit Resources Limited from 2007 to 2018.
Spitfire Oil Ltd from 2007 to 2020.
Kalium Lakes Limited (since 2016 to 2020).
Chairman of Audit Committee from April 2013.
Chairman of Nomination Committee from December 2004.
Chairman of Remuneration Committee from April 2013.
Interest in Shares and Options
at the date of this report
5,541,667 Fully paid ordinary shares.
2,000,000 Unquoted options expiring 23 February 2022 exercisable at 7 cents
each.
5,000,000 Unquoted options expiring 1 March 2026 exercisable at 3.7 cents
each.
PHILIP G CRABB
Non-Executive Director, FAusIMM
Skills and Experience
Mr Crabb is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Crabb
has been actively engaged in mineral exploration and mining activities for the past 50
years in both publicly listed and private exploration companies. He has considerable
experience in field activities, having been a drilling contractor, quarry manager and
mining contractor.
Mr Crabb has extensive knowledge of the Australian Mining Industry and has
experience with management of Australian publicly listed companies. Mr Crabb was
re-appointed a director on 7 March 2012.
Other current Directorships
None.
Former Directorships in last
three years
Special Responsibilities
Interest in Shares and Options
at the date of this report
Aldershot Resources Limited from 2010 to 2018.
Member of Nomination Committee from March 2012.
Member of Audit Committee from March 2012.
96,048,796 Fully paid ordinary shares.
3,000,000
Unquoted options expiring 23 February 2022 exercisable at 7 cents
each.
18,750,000
Unquoted options expiring 8 April 2025 exercisable at 1.8 cents each.
31
ORA GOLD LIMITED
DIRECTORS’ REPORT
PHILIP F BRUCE
Non-Executive Director, BE(MINING), MAICD, FAusIMM
Skills and Experience
Mr Bruce holds a Bachelor of Engineering (Mining) (Honours) from the University of
New South Wales. He has a successful track record in the global minerals industry
in exploration, evaluation, development, acquisitions, operations and senior corporate
management. He is a mining engineer with extensive experience in Australia and
overseas and has been instrumental in the growth of small and large resource
companies including Plutonic Resources in its growth from $30 million to over $1
billion market capitalisation.
Mr Bruce is also a Fellow of the Australasian Institute of Mining and Metallurgy and a
member of the Institute of Company Directors. Mr Bruce was appointed a Director on
1 March 2019.
Other current Directorships
Latrobe Magnesium Limited (since 2019)
Former Directorships in last
three years
Bassari Resources Limited from 2013 to 2019.
Special Responsibilities
Member of Nomination Committee from March 2019.
Interest in Shares and Options
at the date of this report
1,635,946 Ordinary shares.
10,000,000
Unquoted options expiring 8 April 2023 exercisable at 1.5 cents each.
COMPANY SECRETARY
FRANK DEMARTE BBus (Acct), FGIA, FCG, FAICD
The Company Secretary is Mr Frank DeMarte. Mr DeMarte has over 38 years of experience in the mining and exploration
industry in Western Australia and has held executive positions with a number of listed mining and exploration companies.
Mr DeMarte is experienced in areas of secretarial practice, management accounting and corporate and financial
management. Mr DeMarte holds a Bachelor of Business majoring in Accounting and is a Fellow of the Chartered
Governance Institute and a Fellow of the Australian Institute of Company Directors. Mr DeMarte was appointed to the
position on 8 September 2003.
SHARES UNDER OPTION
As at the date of this report, there were 70,650,000 unissued ordinary shares of the Company under option as follows:
Date options issued
Expiry date
Exercise price of options
Number of options
24 February 2017
23 February 2022
9 April 2020
15 July 2020
8 April 2025
16 July 2023
19 August 2020
18 August 2023
9 April 2020
8 April 2023
2 March 2021
1 March 2026
10 December 2021
9 December 2024
$0.07
$0.018
$0.025
$0.02
$0.015
$0.037
$0.020
8,000,000
28,750,000
5,000,000
1,900,000
10,000,000
12,000,000
5,000,000
During the financial year:
•
•
•
2,500,000 employee options exercisable at 4 cents each expired on 18 December 2020;
3,000,000 director options exercisable at 8 cents each expired on 26 February 2021; and
1,250,000 director options exercisable at 1.8 cents each expiring 8 April 2025 were exercised in May 2021.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any other
entity.
32
ORA GOLD LIMITED
DIRECTORS’ REPORT
CORPORATE GOVERNANCE STATEMENT
A copy of the Ora Gold Limited 2021 Corporate Governance Statement is available on the Company's website at
http//www.ora.gold/corporate-governance.
REMUNERATION REPORT (AUDITED)
This Remuneration Report details the nature and amount of remuneration for each of the directors and other key
management personnel of the Company.
(a)
Details of Key Management Personnel
The following persons were key management personnel of Ora Gold Limited during the financial year:
Rick W Crabb Non-Executive Chairman
Frank DeMarte Executive Director
Malcolm R J Randall Non-Executive Director
Philip G Crabb Non-Executive Director
Philip F Bruce Non-Executive Director
(b)
Compensation of Key Management Personnel
(i) Compensation Policy
The Company’s remuneration policy for executive directors is designed to promote superior performance and long
term commitment to the Company. Executives receive a base remuneration, which is market related. Overall, the
remuneration policy is subject to the discretion of the Board and can be altered to reflect the competitive market
and business conditions, where it is in the best interest of the Company and the shareholders to do so.
The Board’s reward policy reflects its obligations to align executives’ remuneration with shareholders’ interests and
to retain appropriately qualified executive talent for the benefit of the Group. The main principles of the policy are:
• Reward reflects the competitive market in which the Group operates;
•
Individual reward should be linked to performance criteria; and
• Executives should be rewarded for both financial and non-financial performance.
Directors’ and executives’ remuneration is reviewed by the board of directors, having regard to various goals set.
This remuneration and other terms of employment are commensurate with those offered within the exploration and
mining industry.
Non-executive directors’ remuneration is in the form of directors’ fees and are approved by shareholders as to the
maximum aggregate remuneration. The Board recommends the actual payment to non-executive directors. The
Board’s reward policy for non-executive directors reflects its obligation to align remuneration with shareholders’
interests and to retain appropriately qualified talent for the benefit of the Group.
Remuneration packages are set at levels that are intended to attract and retain directors and executives capable
of managing the Group’s operations.
Remuneration Committee
(A)
The Remuneration Committee is responsible for determining and reviewing compensation arrangements for the
directors and all other key management personnel.
The Remuneration Committee assesses the appropriateness of the nature and amount of compensation of key
management personnel on an annual basis by reference to relevant employment market conditions with the overall
objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive team.
Remuneration Structure
(B)
In accordance with best practice corporate governance, the structure of non-executive director and executive
compensation is separate and distinct.
(C)
Non-Executive Director Compensation
Objective
The Board seeks to set aggregate compensation at a level that provides the Company with the ability to attract and
retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
33
ORA GOLD LIMITED
DIRECTORS’ REPORT
REMUNERATION Report (Audited) (continued)
(b)
Compensation of Key Management Personnel (continued)
Structure
The Constitution and the ASX Listing Rules specify that the aggregate compensation of non-executive directors
shall be determined from time to time by a general meeting. An amount not exceeding the amount determined is
then divided between the directors as agreed.
The amount of aggregate compensation sought to be approved by shareholders and the manner in which it is
apportioned amongst directors is reviewed annually.
The Board considers advice from external consultants as well as the fees paid to non-executive directors of
comparable companies when undertaking the annual review process. Each director receives a fee for being a
director of the Company. An additional fee may also be paid for each Board committee on which a director sits.
The payment of additional fees for serving on a committee recognises the additional time commitments required
by directors who serve on one or more sub committees.
Non-executive directors have long been encouraged by the Board to hold shares in the Company (purchased by
the director on market). It is considered good governance for directors to have a stake in the Company on whose
board they sit. The compensation of non-executive directors for the year ended 30 September 2021 is detailed as
per the disclosures on page 35.
(D)
Executive Compensation
Objective
The entity aims to reward executives with a level and mix of compensation commensurate with their position and
responsibilities within the entity so as to:
•
•
•
•
reward executives for company, business unit and individual performance against targets set by remuneration
committee to appropriate benchmarks;
align the interests of executives with those of shareholders;
link rewards with the strategic goals and performance of the Company; and
ensure total compensation is competitive by market standards.
Structure
In determining the level and make-up of executive remuneration, the remuneration committee will review individual
performance, relevant comparative compensation in the market and internally and, where appropriate, external
advice on policies and practices.
(E)
Fixed Compensation
Objective
Fixed compensation is reviewed annually by the Remuneration Committee. The process consists of a review of
companywide, business unit and individual performance, relevant comparative compensation in the market and
internally and, where appropriate, external advice on policies and practices.
Structure
Executives are given the opportunity to receive their fixed remuneration in a variety of forms including cash and
fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment
chosen will be optimal for the recipient without creating undue cost for the Company.
(F)
Other Compensation
Notwithstanding Guideline 8.2 of the ASX Corporate Governance Council Principles of Good Corporate
Governance and Best Practice Recommendations which provides that non-executive Directors should not receive
Options, the Directors consider that the grant of the options is designed to encourage the Directors to have a
greater involvement in the achievement of the Company’s objectives and to provide an incentive to strive to that
end by participating in the future growth and prosperity of the Company through share ownership.
Under the Company’s current circumstances the granting of options is an incentive to each of the Directors, which
is a cost effective and efficient reward for the Company, as opposed to alternative forms of incentive, such as the
payment of additional cash compensation to the Directors.
During the year the Company’s Remuneration Committee did not seek and consider any advice from independent
remuneration consultants to determine the appropriate Key Management Personnel remuneration.
34
ORA GOLD LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
(b)
Compensation of Key Management Personnel (continued)
Details of the remuneration of each director of Ora Gold Limited and other key management personnel, including their personally related entities are set out below:
Remuneration of key management personnel for the year ended 30 September 2021
Names
Executive Director
Frank DeMarte
Non-Executive
Directors
Rick W Crabb (1)
Malcolm R J Randall (2)
Philip G Crabb
Philip F Bruce
Totals
Salary &
Directors
Fees
Short-Term
Annual
Leave
Movement
Post
Employment
Other
Superannuation
Other
Long Term
Long
Service
Leave
Share Based
Payment
Total
$
Equity
Options
%
Remuneration
Consisting of
Options for the
Year
2021
2020
203,077
200,000
15,302
9,824
7,538
8,809
19,558
19,000
4,187
3,908
-
74,254
249,662
315,795
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
35,539
30,962
35,539
30,962
35,539
29,519
35,539
43,077
345,233
334,520
-
-
-
-
-
-
-
-
15,302
9,824
-
-
-
-
-
-
4,180
18,700
11,718
27,509
3,423
2,941
3,423
2,941
3,423
2,804
3,423
4,092
33,250
31,778
-
-
-
-
-
-
-
-
4,187
3,908
82,733
2,856
59,095
2,040
-
148,508
4,229
58,013
146,057
285,671
121,695
36,759
98,057
35,943
38,962
180,831
47,371
123,882
555,747
693,210
-
24%
68%
8%
60%
6%
-
82%
9%-
47%
26%
41%
(1) and (2) A total of 12,000,000 options were issued to Mr R Crabb (7,000,000 options) and Mr Randall (5,000,000 options) exercisable at 3.7 cents each expiring on 1 March 2026.
35
ORA GOLD LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
(c)
Employment Agreements for Key Management Personnel
Name
F DeMarte (1)
Base salary
Terms of Engagement
Notice Period
$200,000
No fixed term
Twelve months
(1) Base salary of $200,000 effective 1 July 2014, reviewed annually. Payment of a benefit on early termination
by the Company, other than gross misconduct, equal to 12 months base salary including superannuation, subject to the
termination benefit provisions in Pt 2D.2 – Division 2 of the Corporations Act 2001.
(d)
Shareholdings of Key Management Personnel (Consolidated and Parent Entity)
The number of shares held in Ora Gold Limited during the financial year.
30 September 2021
Balance
1 October 2020
Granted as
Remuneration
On Exercise
of Options
Net Change
Other
Balance
30 September 2021
R W Crabb
P G Crabb
F DeMarte
M R J Randall
P F Bruce
Total
5,699,678
80,577,537
8,233,169
4,142,857
1,635,946
100,289,187
-
-
-
-
-
-
-
1,250,000
-
-
-
1,250,000
1,883,599
500,000
-
607,143
-
2,990,742
7,583,277
82,327,537
8,233,169
4,750,000
1,635,946
104,529,929
30 September 2020
Balance
1 October 2019
Granted as
Remuneration
On Exercise
of Options
Net Change
Other
Balance
30 September 2020
R W Crabb
P G Crabb
F DeMarte
M R J Randall
P F Bruce
Total
4,985,392
78,361,395
7,161,740
2,000,000
1,064,517
93,573,044
-
-
-
-
-
-
-
-
-
-
-
-
714,286
2,216,142
1,071,429
2,142,857
571,429
6,716,143
5,699,678
80,577,537
8,233,169
4,142,857
1,635,946
100,289,187
All equity transactions with key management personnel other than those arising from the exercise of remuneration options
have been entered into under terms and conditions no more favourable than those the Company would have adopted if
dealing at arm’s length.
36
ORA GOLD LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
(e) Share Based Compensation Options
During the financial year 12,000,000 options were granted as equity compensation benefits to key management personnel. No options have been granted since the
end of the year to key management personnel. For further details relating to options, refer to note 19.
Compensation Options: Granted and vested during the year ended 30 September 2021.
30 September 2021
Terms and Conditions for each Grant
Key Management
Personnel
R W Crabb
M R J Randall
Total
Number
Vested
Number
Granted
Grant
Date
Fair Value per
option at Grant
Date ($)
(Note 19)
Exercise
Price per option
($) (Note 19)
Expiry
Date
First
Exercise
Date
Last
Exercise
Date
7,000,000
7,000,000
26/02/21
5,000,000
5,000,000
26/02/21
$0.0118
$0.0118
$0.037
$0.037
1/03/26
1/03/26
26/02/21
26/02/21
1/03/26
1/03/26
12,000,000
12,000,000
Compensation Options: Granted and vested during the year ended 30 September 2020.
30 September 2020
Terms and Conditions for each Grant
Key Management
Personnel
Number
Vested
Number
Granted
Grant
Date
Fair Value per
option at Grant
Date ($)
(Note 19)
Exercise
Price per option
($) (Note 19)
Expiry
Date
First
Exercise
Date
Last
Exercise
Date
R W Crabb
F DeMarte
M R J Randall
P F Bruce
P G Crabb
Total
-
-
-
-
-
-
-
-
10,000,000
10,000,000
9/04/20
$0.0074
$0.018
8/04/25
9/04/20
8/04/25
-
-
7,500,000
10,000,000
20,000,000
20,000,000
37,500,000
40,000,000
-
9/04/20
9/04/20
-
$0.0071
$0.0074
-
$0.015
$0.018
-
8/04/23
8/04/25
-
9/04/20
9/04/20
-
8/04/23
8/04/25
37
ORA GOLD LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
(f) Shares Issued on exercise of compensation options
There were 1,250,000 shares issued to key management personnel on exercise of compensation options for the year ended 30 September 2021.
No key management personnel exercised compensation options during the year ended 30 September 2020.
(g) Options granted as part of remuneration
The following table summarises the value of options granted, exercised or lapsed for the year ended 30 September 2021.
30 September 2021
Value of options granted
during the year
% Remuneration Consisting of
Options for the year
F DeMarte
P G Crabb
M R J Randall (1)
R W Crabb (2)
P F Bruce (3)
Total
-
-
59,095
82,733
4,229
146,057
-
-
60%
68%
9%
26%
(1) A total of 7,000,000 options were issued to Mr R Crabb or his nominee exercisable at 3.7 cents each expiring on 1 March 2026.
(2) A total of 5,000,000 options were issued to Mr Randall or his nominee exercisable at 3.7 cents each expiring on 1 March 2026.
(3) $4,229 represents the value expensed in 2021 of 2,500,000 options issued to P F Bruce during the financial year ended 30 September 2020 in accordance with the vesting conditions.
Director options vest on date of issue. For details on the valuation of the options, including models and assumptions used, please refer to Note 19. There were
no alterations to the terms and conditions of options granted as remuneration since their grant date.
The following table summarises the value of options granted, exercised or lapsed for the year ended 30 September 2020
30 September 2020
Value of options granted
during the year
% Remuneration Consisting of
Options for the year
F DeMarte
P G Crabb
M R J Randall (1)
R W Crabb (2)
P F Bruce
Total
74,254
148,508
2,040
2,856
58,013
285,671
24%
82%
6%
8%
47%
41%
38
ORA GOLD LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
(h) Clawback Policy
The Company’s Employee Option Incentive Plan includes provisions that if the Board becomes aware of a material misstatement in the Company’s financial statements or some
other event has occurred which, as a result, means that the vesting conditions in respect of certain vested options were not, or should not have been determined to have been,
satisfied, then the holder will cease to be entitled to those vested options (Affected Options) and the Board may take various actions, including: cancelling the relevant Affected
Options for no consideration; requiring that the holder pay to the Company the after tax value of the Affected Options which have been converted into Shares or adjusting fixed
remuneration, incentives or participation in the option incentive plan of a relevant holder in the current year or any future year to take account of the after tax value of the Affected
Options.
(i) Equity instruments
Analysis of options and rights over equity instruments granted as compensation. Details of vesting profiles of the options granted as remuneration to each key management
personnel of the Group are detailed below:
Number of options
granted
Grant / Issue Date
of options
Exercise Price
of options $
Fair Value of Options
on Grant Date $
Financial year in which
Options Expire
Executive Director
F DeMarte
Non-Executive Directors
R W Crabb
P G Crabb
M R J Randall
P F Bruce
10,000,000
3,000,000
7,000,000
18,750,000
3,000,000
2,000,000
5,000,000
10,000,000
9/04/20
24/02/17
26/02/21
9/04/20
24/02/17
24/02/17
26/02/21
9/04/20
$0.018
$0.07
$0.037
$0.018
$0.07
$0.07
$0.037
$0.015
$0.0074
$0.0246
$0.0118
$0.0074
$0.0246
$0.0246
$0.0118
$0.0071
2025
2022
2026
2025
2022
2022
2026
2023
(j) Loans to key management personnel
There were no loans made to key management personnel during the year ended 30 September 2021.
(k) Other transactions with key management personnel and their related parties
In relation to the secured loan facility between the Company and Ioma Pty Ltd as trustee for the Gemini Trust (Ioma) (an entity associated with director
Mr PG Crabb) for a total of $4,000,000, at 30 September 2021, $3,389,507 has been drawn down by the Company and accrued interest payable totalled $70,388.
39
ORA GOLD LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) (continued)
(l) Option holdings of Key Management Personnel (Consolidated and Parent Entity)
The number of options over ordinary shares held in Ora Gold Limited during the financial year.
30 September 2021
F DeMarte
M R J Randall (1)
P G Crabb
R W Crabb (1)
P F Bruce
Total
Balance at
beginning of
period
1 October 2020
14,500,000
2,750,000
23,750,000
-
10,000,000
51,000,000
Granted as
Remuneration
-
5,000,000
-
7,000,000
-
12,000,000
Options
Exercised
-
-
(1,250,000)
-
-
(1,250,000)
Options
Expired
Net Change
Other
(1,500,000)
(750,000)
(750,000)
-
-
(3,000,000)
-
-
-
-
-
-
Balance at end
of period 30
September 2021
Total
Exercisable
7,000,000
13,000,000 13,000,000
7,000,000
21,750,000 21,750,000
7,000,000
7,000,000
10,000,000
7,500,000
58,750,000 56,250,000
13,000,000
7,000,000
21,750,000
7,000,000
7,500,000
56,250,000
Not
Exercisable
-
-
-
-
2,500,000
2,500,000
Vested at 30 September 2021
(1) A total of 12,000,000 options were issued to Mr R Crabb (7,000,000 options) and Mr Randall (5,000,000 options) exercisable at 3.7 cents each expiring on 1 March 2026.
30 September 2020
F DeMarte
M R J Randall (1)
P G Crabb
R W Crabb (1)
P F Bruce
Total
Balance at
beginning of
period
1 October 2019
4,500,000
2,750,000
3,750,000
-
-
11,000,000
Granted as
Remuneration
10,000,000
-
20,000,000
-
10,000,000
40,000,000
Options
Exercised
-
-
-
-
-
-
Options
Expired
Net Change
Other
-
-
-
-
-
-
-
-
-
-
-
-
Balance at end
of period 30
September 2020
Total
Exercisable
2,750,000
14,500,000 14,500,000
2,750,000
23,750,000 23,750,000
-
-
10,000,000
7,500,000
51,000,000 48,500,000
14,500,000
2,750,000
23,750,000
-
7,500,000
48,500,000
Not
Exercisable
-
-
-
-
2,500,000
2,500,000
Vested at 30 September 2020
(1) During the reporting period, the Board approved the grant of a total of 12,000,000 options to Mr R Crabb (7,000,000 options) and Mr Randall (5,000,000 options) subject to shareholder
approval, however the value of the options are being expensed over the period commencing on the Board approval date in accordance with AASB2.
40
ORA GOLD LIMITED
DIRECTORS’ REPORT
DIRECTORS’ MEETINGS
The following table sets out the number of meetings of directors held during the year and the number of meetings attended
by each director:
Board of Directors’
Meetings
Audit Committee
Meetings
Number
attended
3
3
3
3
3
Number
eligible
to attend
3
3
3
3
3
Number
attended
2
2
-
2
-
Number
eligible
to attend
2
2
2
2
-
Remuneration
Committee
Meetings
Nomination
Committee
Meetings
Number
attended
-
-
-
-
-
Number
eligible
to attend
-
-
-
-
-
Number
attended
-
-
-
-
-
Number
eligible
to attend
-
-
-
-
-
Name
M R J Randall
F DeMarte (1)
P G Crabb
R W Crabb
P F Bruce
(1) F DeMarte, who is the Company Secretary and Chief Financial Officer, attends the Audit Committee meetings by invitation only.
Committee Memberships
As at the date of this report, the Company had an Audit Committee, Remuneration Committee and a Nomination
Committee.
Audit
M R J Randall (C)
P G Crabb
R W Crabb
Remuneration
M J Randall (C)
P G Crabb
R W Crabb
Nomination
M J Randall (C)
F DeMarte
P G Crabb
R W Crabb
P F Bruce
Note:
(C) Designates the Chairman of the Committee.
RESIGNATION, ELECTION AND CONTINUATION IN OFFICE
In accordance with the Constitution of the Company, Rick Crabb and Frank DeMarte being eligible, will offer themselves
for re-election at the Annual General Meeting.
PROCEEDINGS ON BEHALF OF THE COMPANY
On 29 October 2020, the Company and Sandfire entered into a deed of settlement with Mr Richmond (Deed of Settlement).
The Deed of Settlement resolves Mr Richmond’s claims against the Company and Sandfire by providing a release of those
claims, and a discontinuance of his proceedings in the Federal Court of Australia. The Deed of Settlement also terminates
all existing agreements between the Company and Mr Richmond.
INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Company paid premiums to insure the Directors and Officers of the Company against
liabilities for costs and expenses that may be incurred by the Directors in defending civil or criminal proceedings that may
be brought against the Directors and Officers in their capacity as officers of the Company, other than conduct involving a
wilful breach of duty in relation to the Company.
NON-AUDIT SERVICES
An amount of $1,100 was paid or payable to Stantons International for non-audit services provided during the year ended
30 September 2021. The Company’s audit committee has reviewed the auditor’s non-audit services provided and related
fees and has determined that the auditor’s independence is not impaired or conflicted by providing the non assurance
services.
41
ORA GOLD LIMITED
DIRECTORS’ REPORT
AUDITOR INDEPENDENCE
The auditor’s independence declaration for the year ended 30 September 2021 has been received and can be found on
page 81.
Signed in accordance with a resolution of the directors.
FRANK DEMARTE
Executive Director
Perth, Western Australia
Dated in Perth this 17 December 2021
42
ORA GOLD LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2021
REVENUE FROM CONTINUING OPERATIONS
Revenue
Other income
EXPENDITURE
Amortisation and depreciation
Employee benefits expense
Exploration expenditure written off or impaired
Administration expenses
Finance costs
Loss from continuing operations before income tax
expense
Note
Consolidated
2021
$
2020
$
4(a)
4(b)
4(c)
4(d)
4(e)
15
2,001
75,070
77,071
(21,223)
(146,057)
(1,165,182)
(948,948)
(198,566)
4,021
122,255
126,276
(29,579)
(300,965)
(1,337,039)
(1,115,983)
(163,116)
(2,402,905)
(2,820,406)
Income tax (expense)/benefit
5
-
-
Net loss from continuing operations for the year
(2,402,905)
(2,820,406)
Other comprehensive income
Item that will not be reclassified to profit or loss
Item that may be reclassified subsequently to profit or loss
Other comprehensive income for the year, net of tax
Total comprehensive income/(loss) for the year
-
-
-
(2,402,905)
-
-
-
(2,820,406)
Net Loss attributable to members of the parent entity
(2,402,905)
(2,820,406)
Comprehensive income/(loss) attributable to members
of the parent entity
(2,402,905)
(2,820,406)
Loss per share attributable to ordinary equity holders:
Basic loss (cents per share)
Diluted loss (cents per share)
7
7
(0.29)
(0.29)
(0.41)
(0.41)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
43
ORA GOLD LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other financial assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Other receivables
Property, plant and equipment
Exploration expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET (LIABILITIES)
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL (DEFICIENCY)
Note
Consolidated
2021
$
2020
$
6(b)
8
9
8
10
12
13
14
15
14
257,383
7,583
70
265,036
57,183
45,042
-
102,225
367,261
65,867
233,231
299,098
1,735,230
26,167
150
1,761,547
57,183
77,948
-
135,131
1,896,678
72,069
229,984
302,053
3,459,895
8,114
3,468,009
3,767,107
(3,399,846)
2,760,123
-
2,760,123
3,062,176
(1,165,498)
16(a)
16(d)
17
65,114,069
8,707,864
(77,221,779)
(3,399,846)
65,091,569
8,561,807
(74,818,874)
(1,165,498)
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
44
ORA GOLD LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
CONSOLIDATED
Notes
Contributed
Equity
$
Reserves
$
Accumulated
Losses
$
Total
$
Balance at 1 October 2019
62,535,711
8,228,475
(71,998,468)
(1,234,282)
Total comprehensive income for the
year
Profit/(Loss) for the year
Total comprehensive income/(loss)
for the year
Transactions with owners recorded
directly in equity:
Cost of share based payments
Shares issued during the year
Transaction costs
Balance at 30 September 2020
-
-
-
-
(2,820,406)
(2,820,406)
(2,820,406)
(2,820,406)
16(d)
16(b)
16(b)
-
2,726,000
(170,142)
2,555,858
65,091,569
333,332
-
-
333,332
8,561,807
-
-
-
-
(74,818,874)
333,332
2,726,000
(170,142)
2,889,190
(1,165,498)
CONSOLIDATED
Notes
Contributed
Equity
$
Reserves
$
Accumulated
Losses
$
Total
$
Balance at 1 October 2020
65,091,569
8,561,807
(74,818,874)
(1,165,498)
Total comprehensive income for the
year
Profit/(Loss) for the year
Total comprehensive income/(loss)
for the year
Transactions with owners recorded
directly in equity:
Cost of share based payments
Shares issued during the year
Transaction costs
Balance at 30 September 2021
-
-
-
-
(2,402,905)
(2,402,905)
(2,402,905)
(2,402,905)
16(d)
16(b)
16(b)
-
22,500
-
22,500
65,114,069
146,057
-
-
146,057
8,707,864
-
-
-
-
(77,221,779)
146,057
22,500
-
168,557
(3,399,846)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
45
ORA GOLD LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payment to suppliers
Interest received
Other revenue
Interest paid
Net cash (outflow) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for investments
Payments for purchase of plant and equipment
Proceeds from sale of investments
Proceeds from sale of plant and equipment
Redemption of security deposits
Exploration and evaluation expenditure
Note
Consolidated
2021
$
2020
$
6(a)
(913,144)
2,542
74,870
(198,794)
(1,034,526)
-
-
-
200
-
(1,166,021)
(1,124,559)
3,444
105,000
(112,407)
(1,128,522)
(3,600)
-
38,089
-
117,565
(1,484,270)
Net cash (outflow) from investing activities
(1,165,821)
(1,332,216)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issue of shares and options
Proceeds from borrowings
Share issue costs
22,500
700,000
-
2,726,000
1,439,507
(137,775)
Net cash inflow from financing activities
722,500
4,027,732
Net (decrease)/increase in cash and cash equivalents held
Cash and cash equivalents at the beginning of the financial
year
Cash and cash equivalents at the end of the financial year
6(b)
(1,477,847)
1,566,994
1,735,230
257,383
168,236
1,735,230
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
46
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1.
CORPORATE INFORMATION
The consolidated financial statements of Ora Gold Limited (Company) comprise the Company and its
subsidiaries (together referred to as the “Group” or “Consolidated Entity”) for the year ended 30 September 2021
was authorised for issue in accordance with a resolution of the directors on 17 December 2021. Ora Gold Limited
is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the
Australian Securities Exchange Ltd.
Separate financial statements of Ora Gold Limited as an individual entity are no longer presented as the
consequence of a change on the Corporations Act 2001, however required financial information for Ora Gold
Limited as an individual entity is included in note 11.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 and Australian Accounting Standards (including Australian
Accounting Standards and Interpretations).
The financial report has also been prepared on a historical basis and the accruals basis modified where
applicable by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
Going Concern
The accounts have been prepared on the going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and liabilities in the normal course of business.
The Group recorded a loss of $2,402,905 for the year ended 30 September 2021. Total exploration
expenditure recognised in the year is $1,165,182. The Group had cash assets of $257,383 at 30
September 2021. The directors believe the going concern basis of preparation is appropriate.
In relation to the secured loan facility between the Company and Ioma Pty Ltd as trustee for the
Gemini Trust (Ioma) (an entity associated with director Mr PG Crabb) for a total of $4,000,000, at 30
September 2021, $3,389,507 has been drawn down by the Company and accrued interest payable
totalled $70,388. Since the 30 September 2021, the Company has raised $1.403 million (before costs) by
undertaking a pro-rata non-renounceable entitlement offer to eligible shareholders.
The Directors consider these funds, combined with additional funds from any potential future capital raising
to be sufficient for the planned expenditure on the exploration projects for the ensuing 12 months as well
as for corporate and administrative overhead costs.
The Directors also believe that they have the capacity to raise additional capital should that become
necessary. For these reasons, the Directors believe the going concern basis of preparation is appropriate.
(b) Statement of compliance
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet effective have not been adopted by the Group for the annual reporting period ended 30 September
2021 and are outlined below under note 2(e).
The financial report complies with Australian Accounting Standards, which include Australian equivalents
to International Financial Reporting Standards (AIFRS). The Consolidated financial report also complies
with International Financial Reporting Standards (IFRS).
(c) Adoption of New and Revised Accounting Standards
Amendments to Accounting Standards and new Interpretations that are mandatorily effective for
the current year.
47
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(c)
Adoption of New and Revised Accounting Standards (continued)
The Group has considered the implications of new and amended Accounting Standards which have
become applicable for the current financial reporting period.
Initial adoption of AASB 2020-04: COVID-19-Related Rent Concessions
AASB 2020-4: Amendments
to Australian Accounting Standards – COVID-19-Related Rent
Concessions amends AASB 16 by providing a practical expedient that permits lessees to assess whether
rent concessions that occur as a direct consequence of the COVID-19 pandemic and, if certain conditions
are met, account for those rent concessions as if they were not lease modifications.
Initial adoption of AASB 2018-6: Amendments to Australian Accounting Standards – Definition of a
Business
AASB 2018-6 amends and narrows the definition of a business specified in AASB 3: Business
Combinations, simplifying the determination of whether a transaction should be accounted for as a
business combination or an asset acquisition. Entities may also perform a calculation and elect to treat
certain acquisitions as acquisitions of assets.
Initial adoption of AASB 2018-7: Amendments to Australian Accounting Standards – Definition of Material
This amendment principally amends AASB 101 and AASB 108 by refining the definition of material by
improving the wording and aligning the definition across the standards issued by the AASB
Initial adoption of AASB 2019-3: Amendments to Australian Accounting Standards – Interest Rate
Benchmark
This amendment amends specific hedge accounting requirements to provide relief from the potential
effects of the uncertainty caused by interest rate benchmark reform.
Initial adoption of AASB 2019-1: Amendments to Australian Accounting Standards – References to the
Conceptual Framework
This amendment amends Australian Accounting Standards, Interpretations and other pronouncements
to reflect the issuance of Conceptual Framework for Financial Reporting by the AASB.
The standards listed above did not have any impact on the amounts recognised in prior periods and are
not expected to significantly affect the current or future periods.
(d)
Fair value of assets and liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability
in an orderly (ie unforced) transaction between independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information
is used to determine fair value. Adjustments to market values may be made having regard to the
characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded
in an active market are determined using one or more valuation techniques. These valuation techniques
maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (ie the market with the greatest volume and level of activity for the asset or liability) or, in the
absence of such a market, the most advantageous market available to the entity at the end of the reporting
period (ie the market that maximises the receipts from the sale of the asset or minimises the payments
made to transfer the liability, after taking into account transaction costs and transport costs).
48
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d)
Fair value of assets and liabilities (continued)
For non-financial assets, the fair value measurement also takes into account a market participant's ability
to use the asset in its highest and best use or to sell it to another market participant that would use the
asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the
transfer of such financial instruments, by reference to observable market information where such
instruments are held as assets. Where this information is not available, other valuation techniques are
adopted and, where significant, are detailed in the respective note to the financial statements.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or
more valuation techniques to measure the fair value of the asset or liability, The Group selects a valuation
technique that is appropriate in the circumstances and for which sufficient data is available to measure
fair value.
The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset
or liability being measured. The valuation techniques selected by the Group are consistent with one or
more of the following valuation approaches:
• Market approach: valuation techniques that use prices and other relevant information generated
by market transactions for identical or similar assets or liabilities.
•
Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
• Cost approach: valuation techniques that reflect the current replacement cost of an asset at its
current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation
technique, the Group gives priority to those techniques that maximise the use of observable inputs and
minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly
available information on actual transactions) and reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable, whereas inputs for which
market data is not available and therefore are developed using the best information available about such
assumptions are considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an
input that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that
the entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one
or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset
or liability is included in Level 2. If one or more significant inputs are not based on observable market data,
the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
49
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d)
Fair value of assets and liabilities (continued)
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
(i)
(ii)
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level
3) or vice versa; or
if significant inputs that were previously unobservable (Level 3) became observable (Level
2) or vice versa.
(e)
Other Australian Accounting Standards and Interpretations on issue but not yet effective
There are no other standards that are not yet effective and that would be expected to have a material
impact on the entity in the current or future reporting periods and on foreseeable future transactions.
(f)
Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent Ora
Gold Limited and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent 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. A list of the subsidiaries is provided
in Note 22.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of
the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains
or losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies
of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non
controlling interests". The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on
liquidation at either fair value or at the non-controlling interests' proportionate share of the subsidiary's net
assets. Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss
and each component of other comprehensive income. Non-controlling interests are shown separately
within the equity section of the statement of financial position and statement of comprehensive income.
(g)
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimate and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting
period are:
Share based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by an external
valuer using a Black-Scholes option pricing model, using the assumptions detailed in note 19.
Mineral Exploration and Evaluation
Exploration and evaluation expenditure is accumulated in respect of each identifiable area of interest.
These costs may be carried forward in respect of an area that has not at balance date reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active operations in, or relating to, the area of interest are continuing. The ultimate
recoupment of the costs carried forward is dependent upon the successful development and commercial
exploitation, or alternatively, sale of the respective areas of interest.
Impairment of assets
The Group assesses each cash generating unit annually to determine whether any indication of
impairment exists. Where an indicator of impairment exists, a formal estimate of the recoverable amount
is made, which is considered to be the higher of the fair value less costs to sell and value in use.
50
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(g) Significant accounting estimates and assumptions (continued)
Impairment of assets (continued)
These assessments require the use of estimates and assumptions such as long-term commodity prices,
discount rates, future capital requirements, exploration potential and operating performance. Fair value
is determined as the amount that would be obtained from the sale of the asset in an arm's length
transaction between knowledgeable and willing parties. Fair value for mineral assets is generally
determined as the present value of estimated future cash flows arising from the continued use of the
asset, which includes estimates such as the cost of future expansion plans and eventual disposal, using
assumptions that an independent market participant may take into account.
Cash flows are discounted by an appropriate discount rate to determine the net present value.
Management has assessed its cash generating units as being an individual mine site, which is the lowest
level for which cash flows are largely independent of other assets.
(h) Deferred taxation
Judgement is required in determining whether deferred tax assets are recognised on the statement of
financial position. Deferred tax assets, including those arising from un-utilised tax losses, require
management to assess the likelihood that the Group will generate taxable earnings in future periods, in
order to utilise recognised deferred tax assets.
Estimates of future taxable income are based on forecast cash flows from operations and the application
of existing tax laws in each jurisdiction. 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 recorded at the
reporting date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the Group operates could limit the
ability of the Group to obtain tax deductions in future periods.
(i)
Revenue recognition
The Group applies AASB 15 Revenue from Contracts with Customers, however the Group does not have
any revenue from contracts with customers, except during the financial year when the Company received
revenue for the sale of geological data.
(j)
Government Grants
Government Grants are recognised in the statement of profit and loss as other income when the
proceeds are received.
(k) Cash and cash equivalents
Cash and short-term deposits in the Statement of Financial Position comprise cash at bank and in hand
and short-term deposits with an original maturity of three months or less.
For the purposes of the Statement of Cash Flow, cash and cash equivalents consist of cash and cash
equivalents as detailed above, net of outstanding bank overdrafts.
(l)
Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice
amount less an allowance for any uncollectible amounts. Trade receivables are recognised initially at the
amount of consideration that is unconditional unless they contain significant financing components when
they are recognised at fair value. The Group holds the trade receivables with the objective to collect
contractual cashflows and therefore measures them subsequently at amortised cost using the effective
interest method. Details about the Group’s impairment policies and calculations of the loss allowance are
provided in note 2(x).
An allowance for doubtful debts is made when there is objective evidence that the Group will not be able
to collect the debts. Bad debts are written off when identified.
51
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred
income tax liabilities are recognised for all taxable temporary differences except:
•
•
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset
or liability in a transaction that is not a business combination and that, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry-forward of unused tax credits
and unused tax losses can be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit not taxable profit or loss,
or
when the taxable temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
•
(n)
Other taxes
Revenues, expenses and assets are recognised net of amount of GST except:
•
when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the assets or as
part of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of
cash flows arising from investing and financing activities, which is recoverable from, or payable to, the
taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the taxation authority.
(o)
Plant and equipment
Plant and equipment is stated at cost less any accumulated depreciation and any impairment losses.
(i) Depreciation
The depreciable amount of all fixed assets is depreciated on a diminishing value basis over their
useful lives to the Group commencing from the time the asset is held ready for use.
52
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(o)
Plant and equipment (continued)
(i)
Depreciation (continued)
The depreciation rates used for each class of depreciable assets are:
Leasehold improvements – over 5 years or period of lease
Plant and equipment – over 4 to 10 years
Motor vehicles – over 4 years
Office equipment – over 5 to 8 years
(ii)
Impairment
The carrying values of plant and equipment are reviewed for impairment when events or changes
in circumstances indicate the carrying value may not be recoverable. For an asset that does not
generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit to which the asset belongs.
If any such indication exists and where the carrying value exceeds the estimated recoverable amount,
the assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the item value of money and the
risks specific to the asset.
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the item) is included in the income statement in the
period the item is being derecognised.
(p)
Exploration expenditure
Exploration, development and joint venture expenditure carried forward represents an accumulation of
net costs incurred in relation to separate areas of interest for which rights of tenure are current and in
respect of which:
(a) such costs are expected to be recouped through successful development and exploitation of the
area, or alternatively by its sale, or
(b) exploration and/or evaluation activities in the area have not yet reached a stage which permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active and significant operations in, or in relation to the areas are continuing.
Accumulated costs in respect of areas of interest, which are abandoned, are written off in the income
statement in the year in which the area is abandoned.
The net carrying value of each property is reviewed regularly and, to the extent to which this value
exceeds its recoverable amount that excess is fully provided against in the financial year in which
this is determined. For the years ended 30 September 2021 and 2020 the Group chose not to carry
forward the value of exploration expenditure and fully provided for the carrying value of all
exploration properties.
When the technical feasibility and commercial viability of extracting a mineral resource have been
demonstrated then any capitalised exploration and evaluation expenditure is reclassified as
capitalised mine development. Prior to the reclassification, capitalised exploration and evaluation
expenditure is assessed for impairment.
(q)
Trade and other payables
Trade payables and other payables are carried at amortised costs and 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.
53
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligations and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision is presented in the income statement net of any
reimbursement. If the effect of the time value of money is material, 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 borrowing cost.
(s)
Employee leave benefits
(i) Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to
be settled within 12 months of the reporting date are recognised in other payables in respect of
employees’ services up to the reporting date. They are measured at the amounts expected to be
paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised
when the leave is taken and are measured at the rates paid or payable.
Long service leave
(ii)
The liability for long service leave is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date. Consideration is given to expected future wage
and salary levels, experience of the employee departures, and periods of service. Where it is
material expected future payments are discounted using market yields at the reporting date on
national government bonds with terms to maturity and currencies that match, as closely as
possible, the estimated future cash outflows.
(t)
Earnings per share
(i) Basic earnings per share (“EPS”) is calculated by dividing the net profit/loss attributable to
members for the reporting period, after excluding any costs of servicing equity, by the weighted
average number of ordinary shares of the Company, adjusted for any bonus issue.
(ii) Diluted EPS is calculated by dividing the basic EPS, adjusted by the after tax effect of financing
costs associated with dilutive potential ordinary shares and the effect on net revenues and
expenses of conversion to ordinary shares associated with dilutive potential ordinary shares, by
the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted
for any bonus issue.
(u)
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
(v)
Borrowing costs
Borrowing costs are recognised as an expense when incurred. Alternatively, borrowing costs can be
capitalised for qualifying assets.
(w)
Leases
At inception of a contract the Group assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding liability are recognised by the Group where the Group
is a lessee. However, all contracts that are classified as short-term leases (i.e. leases with a remaining
lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense
on a straight-line basis over the term of the lease.
54
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w)
Leases (continued)
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this
rate cannot be readily determined, the Group uses incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows;
-
-
-
-
-
fixed lease payments less any lease incentives;
variable lease payments that depend on index or rate, initially measured using the index or rate at
the commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if the lessee is reasonably certain to exercise the options;
and
payments of penalties for terminating the lease, if the lease term reflects the exercise of options to
terminate the lease.
The right-of-use asses comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset,
whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects
that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful
life of the underlying asset.
The determination of whether an arrangement is or contains a lease is based on the substance of the
arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement conveys a right to use the asset.
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to
ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased
property or, if lower, at the present value of the minimum lease payments.
Lease payments are apportioned between the finance charges and reduction of the lease liability so as
to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are
recognised as an expense in profit or loss.
Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and
the lease term if there is no reasonable certainty that the Group will obtain ownership by the end of the
lease term.
Operating lease payments are recognised as an expense in the income statement on a straight-line
basis over the lease term. Lease incentives are recognised in the income statement as an integral
part of the total lease expense.
(x)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Group
makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of
its fair value less costs to sell and its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or group
of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases
the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the
carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-
generating unit is considered impaired and is written down to its recoverable amount.
55
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(x)
Impairment of assets (continued)
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Impairment losses relating to continuing operations are recognised in those
expense categories consistent with the function of the impaired asset unless the asset is carried at
revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exits, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the
reversal is treated as revaluation increase. After such a reversal the depreciation charge is adjusted in
future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
(y)
Interests in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture
where unanimous decisions about relevant activities are required. Separate joint venture entities providing
joint venturers with an interest to net assets are classified as a "joint venture" and accounted for using the
equity method.
Joint venture operations represent arrangements whereby joint operators maintain direct interests in each
asset and exposure to each liability of the arrangement.
The Group's interests in the assets, liabilities, revenue and expenses of joint operations are included in the
respective line items of the consolidated financial statements.
Gains and losses resulting from sales to a joint operation are recognised to the extent of the other parties'
interests. When the Group makes purchases from a joint operation, it does not recognise its share of the
gains and losses from the joint arrangement until it resells those goods/assets to a third party.
Details of the Group's interests in joint arrangements are provided in Note 23.
(z)
Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transaction costs, except for those carried at ‘fair value through profit or
loss’, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an
active market are used to determine the fair value. In other circumstances, valuation techniques are
adopted. Subsequent measurement of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability
is derecognised when it is extinguished, discharged, cancelled or expired.
Classification and measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured
at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
56
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(z)
Financial Instruments (continued)
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments are classified into the following categories upon initial recognition:
•
•
•
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
•
•
the contractual cash flow characteristics of the financial assets; and
the Group’s business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet with the following conditions
(and are not designated as FVPL);
•
•
they are held within a business model whose objective is to hold the financial assets and
collect its contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash
equivalents, trade and most other receivables fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income
The Group measures debt instruments at fair value through OCI if both of the following conditions
are met:
•
•
the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding; and
the financial asset is held within a business model with the objective of both holding to
collect contractual cash flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and
impairment losses or reversals are recognised in the statement of profit or loss and computed in the
same manner as for financial assets measured at amortised cost. The remaining fair value changes
are recognised in OCI.
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB
132 Financial Instruments: Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial
assets designated upon initial recognition at fair value through profit or loss or financial assets
mandatorily required to be measured at fair value. Financial assets are classified as held for trading
if they are acquired for the purpose of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables or as derivatives designated as hedging instruments in an effective hedge,
as appropriate. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for
transaction costs unless the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except
for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with
gains or losses recognised in profit or loss. All interest-related charges and, if applicable, gains and losses
arising on changes in fair value are recognised in profit or loss.
57
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(z)
Financial Instruments (continued)
Impairment
The Group assesses on a forward-looking basis the expected credit loss associated with its debt instruments
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach
permitted by AASB, which requires expected lifetime losses to be recognised from initial recognition of the
receivables.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the
statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified
terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the
existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or
loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the
asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
•
•
•
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset (ie the Group has no practical ability to make a unilateral
decision to sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's
carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the
cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit
or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through
other comprehensive income, the cumulative gain or loss previously accumulated in the investment
revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.
(aa) Share-based payment transactions
Equity settled transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share-
based payments, whereby employees render services in exchange for shares or rights over shares (equity-
settled transactions). There is currently one plan in place the Employee Share Option, which provides
benefits to all employees, excluding directors.
The cost of these equity-settled transactions with employees is measured by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by an external
valuer using a Black-Scholes option pricing model, further details of which are given in note 19.
58
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(aa) Share-based payment transactions (continued)
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Ora Gold Limited (market conditions) if applicable. The cost
of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the
number of equity instruments that will ultimately vest.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date. The income statement charge or
credit for a period represents the movement in cumulative expense recognised as at the beginning and
end of the period.
Equity settled transactions:
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is granted,
the cancelled and new award are treated as if they were a modification of the original award, as described
in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation
of earnings per share (see note 7).
(ab) Comparatives
Where necessary, comparatives have been reclassified and repositioned for consistency with current year
disclosures.
(ac) Goodwill
Goodwill on acquisition is initially measured at cost being the excess of the cost of the business combination
over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is not amortised. Goodwill is reviewed for impairment, annually or more frequently if events or
changes in circumstances indicated that the carrying value may be impaired.
As at the acquisition date, any goodwill acquired is allocated to each of the cash-generating units expected
to benefit from the combination’s synergies.
Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the
goodwill relates. Where the recoverable amount of the cash-generating unit is less than the carrying
amount, an impairment loss is recognised.
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed
of, the goodwill associated with the operation disposed of is included in the carrying amount of the
operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this
circumstance is measured on the basis of the relative values of the operation disposed of and the portion
of the cash-generating unit retained.
3.
SEGMENT INFORMATION
The Group operates in the mineral exploration industry in Australia. For management purposes, the Group
is organised into one main operating segment which involves the exploration of minerals in Australia. All
of the Group’s activities are interrelated and discrete financial information is reported to the Board (Chief
Operating Decision Maker) as a single segment. Accordingly, all significant operating decisions are based
upon analysis of the Group as one segment. The financial results from this segment are equivalent to the
financial statements of the Group as a whole.
59
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
4.
REVENUE AND EXPENSES
(a)
(b)
Revenue
Interest income from non-related parties
Other Revenue
Government Grants (Cashflow Boosts and Payroll Tax Grant)
Tenement Data Sales
Net gain on disposal of fixed assets (4(f))
Net gain on disposal of investments (4(g))
Total Revenues from continuing operations
(c)
Employee Benefits Expenses
Share based payments expense
The share based payments expense relates to the requirement to
recognise the cost of granting options to Directors and employees
under AIFRS over the option vesting period.
Consolidated
2021
$
2020
$
2,001
4,021
12,500
62,370
200
-
75,070
77,071
105,000
-
-
17,255
122,255
126,276
(146,057)
(300,965)
(d)
(e)
(f)
(g)
Exploration Expenditure Written Off
Exploration expenditure written-off or impaired
(1,165,182)
(1,337,039)
Administration Expenses
Administrative costs
Office and miscellaneous
Professional fees
Regulatory fees
Shareholder and investor relations
Employee expenses
Decrease in market value of investments
Other operating expenses
Net Gain on Disposal of Fixed Assets
Proceeds from disposal of fixed assets
Carrying amounts of fixed assets sold
Net gain on disposal
Net Gain on Disposal of Investments
Proceeds from disposal of investments
Cost of investments sold
Net gain on disposal
(2,296)
(215,305)
(65,433)
(77,220)
(8,758)
(567,298)
(80)
(12,558)
(948,948)
200
-
200
-
-
-
(3,895)
(252,871)
(160,207)
(63,993)
(27,580)
(602,283)
(300)
(4,854)
(1,115,983)
-
-
-
38,089
(20,834)
17,255
60
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Consolidated
2021
$
2020
$
5.
INCOME TAX
(a)
Numerical reconciliation of income tax expense to prima facie tax
payable
Profit/(Loss) from ordinary activities before income tax expense
Prima facie tax benefit on loss from ordinary activities at 26%
(2020 – 30%)
(2,402,905)
(2,820,406)
(624,755)
(846,122)
Tax effect of amounts which are not deductible (taxable) in
calculating taxable income:
Entertainment and other
Fines
Share based payments
Movement in current year temporary differences
Tax effect of current year tax losses & non-recognition of
previously recognised deferred tax assets
Income tax expense/(benefit)
(b)
Unrecognised temporary differences Deferred Tax Assets (26%)
(2020 – 30%)
Prepayments
Capitalised tenement acquisition costs
Investments
Capital raising, formation and legal costs
Provisions for expenses
Carry forward revenue losses
Carry forward capital losses
Deferred Tax Liabilities (26%) (2020 – 30%)
Depreciation
Unearned revenue
Net Deferred Tax Asset (Liability)
371
-
43,817
(580,567)
506
106
90,083
(755,427)
(139,847)
(143,650)
720,414
-
899,077
-
388
77,923
25,982
41,039
86,970
15,400,763
270,206
15,903,271
(11,711)
(9)
(11,720)
15,891,551
484
98,261
29,955
92,186
97,610
17,049,697
311,776
17,679,969
(23,384)
(173)
(23,557)
17,656,412
The potential future tax benefit arising from accumulated tax losses in the Group have not been recognized in 2021 as
an asset because recovery of the tax losses is not probable.
The potential future income tax benefit will be obtainable by the Group only if:
(a)
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit of the
deductions for the loss to be realised;
the Group continues to comply with the conditions for deductibility imposed by income tax law; and
(b)
(c) no changes in income tax legislation adversely affects the Group in realising the benefit of the deduction for the loss.
61
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
6.
CASH FLOW INFORMATION
(a)
Reconciliation of net cash used in by operating activities to operating
profit/(loss) after income tax
Operating profit/(loss) after income tax
(2,402,905)
(2,820,406)
Consolidated
2021
$
2020
$
Non cash flows in operating loss
Exploration costs written-off or provided
Amortisation and depreciation
Share based payments
Net (Increase) / decrease in fair value of investments
(Profit)/Loss on sale of investments
Interest expense (unpaid)
(Profit)/loss on sale of non-current assets
Change in assets and liabilities
(Decrease)/increase in trade creditors and accruals
(Increase)/decrease in receivables
(Decrease)/Increase in provisions
Net cash outflow from operating activities
(b)
Cash and cash equivalents represents:
Cash in bank and on hand
Deposits at call
Non cash flows from investing and financing activities
Shares issued to acquire tenements
Options issued to broker
7.
EARNINGS PER SHARE
(a)
(b)
Basic earnings/(loss) per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
1,165,182
21,223
146,057
80
-
(228)
11,483
1,337,039
29,579
300,965
300
(17,255)
50,709
-
(5,363)
18,584
11,361
(1,034,526)
(72,338)
20,675
42,210
(1,128,522)
257,383
-
257,383
735,127
1,000,103
1,735,230
-
-
(0.29)
(0.29)
-
32,367
(0.41)
(0.41)
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Consolidated
2021
$
2020
$
(c)
Net profit/(loss) attributable to ordinary shareholders
(2,402,905)
(2,820,406)
(d)
Weighted average number of ordinary shares outstanding during the year
used in the calculation:
- basic earnings per share
- diluted earnings per share
8.
TRADE AND OTHER RECEIVABLES (CURRENT)
Other receivables
Accrued income
2021
Number
2020
Number
841,310,975
841,310,975
695,150,428
695,150,428
7,547
36
7,583
25,590
577
26,167
62
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
The were no amounts receivable from directors and director related entities in
2021 and 2020.
8.
TRADE AND OTHER RECEIVABLES (NON CURRENT)
Security deposits/bonds
57,183
57,183
Consolidated
2021
$
2020
$
The Group believes that all outstanding receivables can be recovered
when due and there are no past receivables due as at the balance
sheet date.
9.
OTHER FINANCIAL ASSETS (CURRENT)
Listed shares held for trading at fair value
70
150
At as at the 15 December 2021, the total market value of the quoted investments
based on closing prices at that date was $70.
10. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment, at cost
Less: accumulated depreciation
Less: impairment loss
Motor vehicles, at cost
Less: accumulated depreciation
Less: impairment loss
Office equipment, at cost
Less: accumulated depreciation
Less: impairment loss
Plant and equipment (NT), at cost
Less: accumulated depreciation
Less: impairment loss
Total property, plant and equipment
Reconciliations
Reconciliation of the carrying amounts of each class of property, plant and
equipment at the beginning and end of the current financial year are set out below:
Plant and equipment
Carrying amount at 1 October
Additions
Disposal
Depreciation
Carrying amount at 30 September
181,138
(154,566)
-
26,572
167,720
(164,644)
-
3,076
3,545
(2,607)
-
938
34,560
(20,104)
-
14,456
45,042
40,766
-
(1,836)
(12,358)
26,572
202,321
(161,555)
40,766
178,625
(174,188)
-
4,437
108,448
(91,335)
-
17,113
34,560
(18,928)
-
15,632
77,948
60,338
-
-
(19,572)
40,766
63
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
10.
PROPERTY, PLANT AND EQUIPMENT (continued)
Reconciliations (continued)
Motor vehicles
Carrying amount at 1 October
Disposals
Depreciation
Carrying amount at 30 September
Office equipment
Carrying amount at 1 October
Disposals
Depreciation
Carrying amount at 30 September
Plant and equipment (NT)
Carrying amount at 1 October
Additions
Depreciation
Carrying amount at 30 September
Total carrying amount at 30 September
11.
PARENT ENTITY DISCLOSURES
STATEMENT OF FINANCIAL POSITION
ASSETS
CURRENT ASSETS
NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET (LIABILITIES)
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL (DEFICIENCY)
PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Net profit/ (loss) from continuing operations for the year
Total Comprehensive income/(loss) for the year
Consolidated
2021
$
2020
$
4,437
-
(1,361)
3,076
17,113
(13,568)
(2,607)
938
6,297
-
(1,860)
4,437
23,988
-
(6,875)
17,113
15,632
16,904
(1,176)
14,456
45,042
(1,272)
15,632
77,948
250,532
102,224
352,756
1,696,780
135,131
1,831,911
(284,196)
(3,468,009)
(3,752,205)
(3,399,449)
(286,312)
(2,760,123)
(3,046,435)
(1,214,524)
65,114,069
8,707,864
(77,221,382)
(3,399,449)
65,091,569
8,561,807
(74,867,900)
(1,214,524)
(2,353,482)
(2,353,482)
(2,872,288)
(2,872,288)
64
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
11.
PARENT ENTITY DISCLOSURES (continued)
OTHER FINANCIAL ASSETS (NON-CURRENT)
Investment in Subsidiary
Element 92 Pty Ltd
Provision for write down of investment
Investment in Subsidiary
Red Dragon Mines Pty Ltd
Provision for write down of investment
12.
EXPLORATION EXPENDITURE (NON-CURRENT)
Exploration and evaluation
Consolidated
2021
$
2020
$
-
-
-
3,661,200
(3,661,200)
-
1,380,392
(1,380,392)
-
1,380,392
(1,380,392)
-
Balance at 1 October
Expenditure incurred during the year
Expenditure provided or written off during the year (note 4(d))
Balance at 30 September
-
1,165,182
(1,165,182)
-
-
1,337,039
(1,337,039)
-
For those areas of interest which are still in the exploration phase, the ultimate recoupment of the stated costs is
dependent upon the successful development and commercial exploitation, or alternatively sale of the respective areas
of interest.
Some of the Consolidated entity’s exploration properties are subject to claim(s) under native title. As a result,
exploration properties or areas within the tenements may be subject to exploration and/or mining restrictions.
13.
TRADE AND OTHER PAYABLES (CURRENT)
Trade payables and accruals
65,867
72,069
Trade payables are non-interest bearing and are normally settled on 30-60 day
terms
Consolidated
2021
$
2020
$
14.
PROVISONS
CURRENT
Employee entitlements
Number of employees at year end
NON-CURRENT
Employee entitlements
233,231
229,984
9
8,114
8
-
65
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Consolidated
2021
$
2019
$
15.
BORROWINGS (NON-CURRENT)
Borrowings - secured
3,459,895
2,760,123
In relation to the secured loan facility between the Company and Ioma Pty Ltd as trustee for the Gemini Trust
(an entity associated with director Mr PG Crabb) for a total of $4,000,000, at 30 September 2021, $3,389,507
has been drawn down by the Company and $198,566 in interest was accrued during the year and $198,794 in
interest was paid during the year. The secured loan facility has a Maturity Date of 17 May 2023 and interest
calculated a 7% per annum is to be paid annually.
Balance at beginning of year
Drawdowns during the year
Interest accrued during the year
Repayments or interest paid
Balance at end of year
16.
CONTRIBUTED EQUITY AND RESERVES
Consolidated
2021
$
2020
$
2,760,123
700,000
198,566
(198,794)
3,459,895
1,269,907
1,439,507
163,116
(112,407)
2,760,123
(a) Issued and paid up capital
Ordinary shares
842,095,222
840,845,222
65,114,069
65,091,569
Number of Shares
2021
2020
Consolidated
2021
$
2020
$
(b) Movement in ordinary shares on issue
1/10/19 Opening balance
3/06/20 Placement
17/07/20 Share Purchase Plan
Share issue costs
30/09/20 Balance at 30 September 2020
Number of
Shares
Issue Price
$
Total
$
646,130,906
71,428,571
123,285,745
-
840,845,222
0.014
0.014
62,535,711
1,000,000
1,726,000
(170,142)
65,091,569
18/05/21 Exercise of options
1,250,000
0.018
22,500
30/09/21 Balance at 30 September 2021
842,095,222
65,114,069
66
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
16. CONTRIBUTED EQUITY AND RESERVES (continued)
(c) Movement in options on issue
The following table summarises the movement in options on issue for the year ended 30 September 2021
30 September 2021
Unquoted options exercisable at 8 cents each on or before 26 February 2021
Unquoted options exercisable at 7 cents each on or before 23 February 2022
Unquoted options exercisable at 4 cents each on or before 18 December 2020
Unquoted options exercisable at 1.5 cents each on or before 8 April 2023
Unquoted options exercisable at 1.8 cents each on or before 8 April 2025
Unquoted options exercisable at 2.5 cents each on or before 16 July 2023
Unquoted options exercisable at 2 cents each on or before 18 August 2023
Unquoted options exercisable at 3.7 cents each on or before 1 March 2026
Total
Balance at the
Beginning of the
Year
Issued
During the
Year
Exercised
During the
Year
Expired
During the
Year
Balance at
the End of the
Year
3,000,000
8,000,000
2,500,000
10,000,000
30,000,000
5,000,000
1,900,000
-
60,400,000
-
-
-
12,000,000
12,000,000
-
-
-
-
(1,250,000)
-
-
-
(1,250,000)
(3,000,000)
-
(2,500,000)
-
-
-
-
-
(5,500,000)
-
8,000,000
-
10,000,000
28,750,000
5,000,000
1,900,000
12,000,000
65,650,000
The following table summarises the movement in options on issue for the year ended 30 September 2020
30 September 2020
Unquoted options exercisable at 8 cents each on or before 26 February 2021
Unquoted options exercisable at 6 cents each on or before 14 November 2019
Unquoted options exercisable at 7 cents each on or before 23 February 2022
Unquoted options exercisable at 4 cents each on or before 18 December 2020
Unquoted options exercisable at 1.5 cents each on or before 8 April 2023
Unquoted options exercisable at 1.8 cents each on or before 8 April 2025
Unquoted options exercisable at 2.5 cents each on or before 16 July 2023
Unquoted options exercisable at 2 cents each on or before 18 August 2023
Total
Balance at the
Beginning of the
Year
Issued
During the
Year
Exercised
During the
Year
Expired
During the
Year
Balance at
the End of the
Year
3,000,000
4,350,000
8,000,000
2,500,000
-
-
-
-
17,850,000
-
-
-
-
10,000,000
30,000,000
5,000,000
1,900,000
46,900,000
-
-
-
-
-
-
-
-
-
-
(4,350,000)
-
-
-
-
-
-
(4,350,000)
3,000,000
-
8,000,000
2,500,000
10,000,000
30,000,000
5,000,000
1,900,000
60,400,000
67
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
16. CONTRIBUTED EQUITY AND RESERVES (continued)
(d) Reserves
Share based payments reserve
Balance at beginning of year
Share based payments expense
Options issued to Broker (capital raising costs)
Balance at end of year
Nature and purpose of reserves
Share based payments reserve
The share based payments reserve is used to recognise the fair value of options issued.
Consolidated
2021
$
2020
$
8,561,807
146,056
-
8,707,864
8,228,475
300,965
32,367
8,561,807
Consolidated
2021
$
2020
$
17. ACCUMULATED LOSSES
Balance at the beginning of the year
Net profit/(loss) attributable to members of Ora Gold Limited
Balance at the end of the financial year
(74,818,874)
(2,402,905)
(77,221,779)
(71,998,468)
(2,820,406)
(74,818,874)
18.
COMMITMENTS AND CONTINGENCIES
(i)
Exploration commitments
Within one year
Later than one year but not later than five years
Later than five years
348,131
451,379
138,270
937,780
347,574
537,759
158,124
1,043,457
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform
minimum exploration work to meet the minimum expenditure requirements specified by various State
Governments. These obligations are subject to renegotiation when application for a mining lease is made
and at other times. These obligations are not provided for in the financial report.
If the Group decides to relinquish certain tenements and / or does not meet these obligations, assets recognised
in the Consolidated Statement of Financial Position may require review to determine the appropriateness of the
carrying values. The sole transfer or farm out of exploration rights to third parties will reduce or extinguish these
obligations.
(ii)
Operating lease commitments
Operating lease commitments are as follows:
Office rental
Within one year
Later than one year but not later than five years
Later than five years
-
-
-
-
127,852
-
-
127,852
The Company has a commercial sub-lease on a monthly rolling over basis. At the reporting date, the Company
has not entered into a new sub lease for its corporate office premises.
68
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
18.
COMMITMENTS AND CONTINGENCIES (continued)
(iii)
Bank Guarantees
At 30 September 2021 the Group has outstanding $44,683 (2020: $44,683) as a current guarantee provided by
the bank for corporate office lease.
(iv) Native Title
At the date of this report, there are no claims lodged in relation to tenements held by the Group.
(v)
Richmond Proceeding
On 29 October 2020, the Company and Sandfire entered into a deed of settlement with Mr Richmond (Deed of
Settlement). The Deed of Settlement resolves Mr Richmond’s claims against the Company and Sandfire by
providing a release of those claims, and a discontinuance of his proceedings in the Federal Court of Australia.
The Deed of Settlement also terminates all existing agreements between the Company and Mr Richmond.
(vi) Red Bore Joint Venture Royalty
On 29 October 2020 the Company executed a new Red Bore Joint Venture with Sandfire. Under the Joint Venture
Agreement, Sandfire acquired a 75% interest in Red Bore from the Company’s existing 90% interest, with the
Company retaining a 15% interest. Sandfire is the manager of the new Sandfire/Ora joint venture. The Company’s
retained 15% interest in Red Bore will be free carried until a decision to mine. Mr Richmond will retain a 1.25%
net smelter royalty over minerals produced by the Sandfire/Ora joint venture from Red Bore.
(vii) Crown Prince & Lydia Gold Projects Royalty
On 12 November 2021 the Company executed a Native Title & Heritage Agreement between the Company’s
subsidiary, Zeus Mining Pty Ltd (Zeus) and the Wajarri Yamaji Aboriginal Corporation(WYAC) in relation to two
mining leases for the Crown Prince (m51/886) and the Lydia (M51/889) Gold Projects. The WYAC have been
granted up to 0.75% royalty over minerals produced by Zeus.
19.
SHARE BASED PAYMENTS
(a) Type of share based payment plan
Employee Share Option Plan
Options are granted under the Company Employee Share Option Plan (ESOP) which was approved by the shareholders
on 28 February 2019. The ESOP is available to any person who is a director, or an employee (whether full-time or part-
time) of the Company or of an associated body corporate of the Company (“Eligible Person”). Subject to the Rules set out
in ESOP and the Listing Rules, the Company (acting through the Board) may offer options to any Eligible Person at such
time and on such terms as the Board considers appropriate.
There are no voting or dividend rights attached to the options. There are no voting rights attached to the unissued ordinary
shares. Voting rights will be attached to the unissued ordinary shares when the options have been exercised. The
expense recognised in the income statement in relation to share based payments is disclosed in Note 4.
(b) Summary of options granted
The following table illustrates the number and weighted average prices (WAEP) of and the movements in share options
issued during the year in respect of share based payments.
Outstanding at the beginning of the year
Granted during the year
Lapsed during the year
Exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year
Number
2021
60,400,000
12,000,000
(5,500,000)
(1,250,000)
65,650,000
63,150,000
WAEP
2021
$
Number
2020
WAEP
2020
$
0.03
0.04
17,850,000
46,900,000
(0.06)
(4,350,000)
(0.02)
0.03
0.03
-
60,400,000
57,900,000
0.07
0.02
(0.06)
-
0.03
0.03
69
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
19.
SHARE BASED PAYMENTS (continued)
The outstanding balance as at 30 September 2021 is represented by:
Date options issued
Expiry date
Exercise price of options Number of options
24 February 2017
23 February 2022
9 April 2020
9 April 2020
15 July 2020
8 April 2023
8 April 2025
16 July 2023
19 August 2020
18 August 2023
2 March 2021
1 March 2026
$0.070
$0.015
$0.018
$0.025
$0.020
$0.037
8,000,000
10,000,000
28,750,000
5,000,000
1,900,000
12,000,000
Please refer to Shares Under Option table in the Directors’ Report for movements since year end.
(a) Weighted average remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 30 September 2021
is 2.82 years (2020 – 3.2 years).
(b) Range of exercise price
The range of exercise prices for options outstanding at the end of the year was $0.015 to $0.07 (2020 –
$0.015 to $0.08).
(c) Weighted average fair value
The weighted average fair value of options granted during the year was $0.0118 (2020 - $0.01)
(d) Options pricing model
The fair value of the equity-settled share options granted under the plan is estimated as at the date of grant
using the Black-Scholes Option Pricing Model taking into account the terms and conditions upon which the
options were granted.
The following table lists the inputs to the model used for the year ended 30 September 2021
Number of Options
Option exercise price
Expiry date
Expected life of the option (years)
Vesting period (months)
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Closing share price at grant date
(cents)
Vesting date
12,000,000 (1)
$0.037
1/03/2026
5
Nil
Nil
80%
0.8082
$0.022
26/02/2021
70
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
19.
SHARE BASED PAYMENTS (continued)
The following table lists the inputs to the model used for the year ended 30 September 2020
Number of Options
Option exercise price
Expiry date
Expected life of the option (years)
Vesting period (months)
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Closing share price at grant date
(cents)
Vesting date
10,000,000
$0.015
8/04/2023
3
36
Nil
100%
0.27%
$0.013
Variable based
on market price
30,000,000
$0.018
5,000,000
$0.025
8/04/2025 16/07/2023
3
Nil
Nil
80%
0.29
$0.016
5
Nil
Nil
80%
0.45
$0.013
1,900,000
$0.020
18/08/2023
3
Nil
Nil
80%
0.27
$0.17
12,000,000 (1)
$0.045
19/11/2025
5
Nil
Nil
80%
0.29
$0.024
NA
NA
NA
NA
(1) Pursuant to a board meeting in August 2020 it was resolved to grant a total of 12,000,000 options to Mr R Crabb (7,000,000
options) and M Randall (5,000,000 options) subject to shareholder approval at the forthcoming Annual General Meeting. The
options had not yet been issued at the date of the 2020 report but the value of options has been estimated and is being expensed
over their expected life in accordance with AASB 2. The exact value of the options will be adjusted at the issue date after the
Annual General Meeting held on 26 February 2021.
20.
REMUNERATION OF AUDITORS
The auditor of Ora Gold Limited is Stantons International for:
•
• Other non-audit related services
An audit or review of the financial report of the consolidated entity
21.
RELATED PARTY DISCLOSURES
(a) Directors
Consolidated
2021
$
2020
$
44,572
1,100
45,672
48,727
20,000
68,727
The aggregate compensation paid to directors and other KMP of the Group and recognised as an expense during
the reporting period is set out below:
Short-term employee benefits
Post-employee benefits
Other long-term benefits
Share based payments
Consolidated
2021
$
2020
$
372,253
33,250
4,187
146,057
555,747
371,853
31,778
3,908
285,671
693,210
(b) Loans with key management personnel and their related entities
There were no loans to key management personnel and their related entities during the year and the prior year.
71
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
21.
RELATED PARTY DISCLOSURES (continued)
(c) Loans from key management personnel and their related entities
In relation to the secured loan facility between the Company and Ioma Pty Ltd as trustee for the Gemini Trust
(an entity associated with director Mr PG Crabb) for a total of $4,000,000, at 30 September 2021, $3,389,507
has been drawn down by the Company and accrued interest payable totalled $70,388.
(d) Subsidiaries
The Group consists of the Parent and its wholly owned controlled entities set out in Notes 11 and 22.
Transactions between the Parent and its wholly owned controlled entities during the year ended 30 September
2021 consists of loans advanced by the Parent totalling $1,101,081 (2020: $1,217,631). The loans outstanding
at 30 September 2021 total $11,143,319 (2020: $26,443,775).
The loans provided to the wholly owned subsidiaries are unsecured, interest free and have no fixed term of
repayment. There were no amounts repaid during the year (2020: $118,000).
22.
CONTROLLED ENTITIES
Percentage Interest Held
Name
Country of
Incorporation
2021
%
Element 92 Pty Ltd (1)
Red Dragon Mines Pty Ltd
Zeus Mining Pty Ltd
Old Find Pty Ltd
Australia
Australia
Australia
Australia
-
100
100
100
2020
%
100
100
100
-
Carrying amount of Parent
Entity’s Investment
2020
2021
$
$
-
-
-
-
-
-
-
-
Note 1: On 24 February 2021, the Company deregistered its wholly owned subsidiary, Element 92 Pty Ltd (see note 28).
23.
INTEREST IN JOINT VENTURES
The Company has interests in several joint ventures as follows:
The Consolidated Entity also has a number of other interests in joint ventures to explore for uranium and other
minerals. The Consolidated Entity’s share of expenditure in respect of these exploration and evaluation activities is
either expensed or capitalised depending on the stage of development and no revenue is generated. At 30
September 2021 all capitalised costs were written off.
The Consolidated Entity’s share of capitalised expenditure in respect to these joint venture activities is as follows:
Joint Venture
Principal
Activities
Percentage
Interest
2021
Percentage
Interest
2020
Expenditure
Capitalised
2021
$
Expenditure
Capitalised
2020
$
Breakaway JV
Red Bore JV (1)
Keller Creek JV
Base metals
Base metals
Base metals
20%
15%
20%
20%
90%
20%
-
-
-
-
-
-
Note 1: On 29 October 2020 the Company executed a new Red Bore Joint Venture with Sandfire. Under the Joint Venture
Agreement, Sandfire acquired a 75% interest in Red Bore from the Company’s existing 90% interest for no consideration,
with the Company retaining a 15% interest. Sandfire is the manager of the new Sandfire/Ora joint venture. The Company’s
retained 15% interest in Red Bore will be free carried until a decision to mine.
72
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
24.
FINANCIAL INSTRUMENTS
(a) The Group’s principal financial instruments comprise of cash, short term deposits and other financial assets. The Group has various other financial assets and liabilities
such as trade receivables and trade payables. It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be
undertaken, except for other financial assets which have been sold for working capital purposes. The main risks arising from the Group’s financial instruments are cash
flow interest rate risk, liquidity risk, equity risk and credit risk.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and
expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the Financial Statements.
Consolidated
Floating Interest Rate
2021
$
2020
$
Fixed Interest Rate – less
than 1 year
Fixed Interest Rate – more
than 1 year
2021
$
2020
$
2021
$
2020
$
Non-interest bearing
2021
$
2020
$
Total
2021
$
2020
$
Financial Assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total Financial Assets
257,383
-
-
257,383
1,735,230
-
-
1,735,230
Financial Liabilities
Trade and other payables
Borrowings
Total Financial Liabilities
Net Financial Assets/(Liabilities)
-
-
-
257,383
-
-
-
1,735,230
-
57,183
-
57,183
-
-
-
57,183
-
57,183
-
57,183
-
-
-
57,183
-
-
-
-
-
-
-
-
7,583
70
7,653
-
26,167
150
26,317
257,383
64,766
70
322,219
1,735,230
83,350
150
1,818,730
-
(3,459,895)
(3,459,895)
(3,459,895)
-
(2,760,123)
(2,760,123)
(2,760,123)
(65,867)
-
(65,867)
(58,214)
(72,069)
-
(72,069)
(45,752)
(65,867)
(3,459,895)
(3,525,762)
(3,203,543)
(72,069)
(2,760,123)
(2,832,192)
(1,013,462)
Weighted Average Interest Rate
-
-
-
7%
7%
73
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
24.
FINANCIAL INSTRUMENTS (continued)
Reconciliation of net financial assets/ (liabilities) to net assets
Net Financial Assets/(Liabilities) as above
Property, plant and equipment
Exploration & evaluation expenditure
Provisions
Consolidated
2021
$
2020
$
(3,203,543)
(1,013,462)
45,042
77,948
-
-
(241,345)
(229,984)
Net Assets/(Liabilities) per Consolidated Statement of Financial Position
(3,399,846)
(1,165,498)
The net fair value of all financial assets and liabilities at balance date approximate to their carrying value. The main risk
the Group is exposed is through financial instruments credit risk and market risk consisting of interest rate risk and equity
price risk.
(a)
Interest Rate Risk
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rate for each class of financial assets and
financial liabilities, is disclosed above.
The Group is exposed to movements in market interest rates on short term deposits. The policy is to monitor the interest
rate yield curve out to 120 days to ensure a balance is maintained between the liquidity of cash assets and the interest
rate return.
(b) Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the
Group. The Group has adopted the policy of only dealing with credit worthy counterparties and obtaining sufficient
collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. Risk is
also minimised by investing surplus funds with financial institutions that maintain a high credit rating.
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties
having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of any
provisions for losses, represents the Group’s maximum exposure to credit risk.
The Group believes that all outstanding receivables are recoverable and there are no past due receivables as at balance
date.
(c) Net Fair Value of Financial Assets and Liabilities
The net fair value of the financial assets and financial liabilities approximates their carrying value, except for the fair
value of equity investments traded on organised markets which have been valued by reference to the market prices
prevailing at balance date for those equity investments.
(d) Liquidity Risk
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management is cognisant
of the future demands for liquid finance requirements to finance the Group’s current and future operations.
The Group believes that all outstanding payables can be paid when due and there are no past due payables as at the
balance date.
(e) Commodity Price Risk
At the 30 September 2021, the Group does not have any financial instruments subject to commodity price risk.
74
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
25.
SENSITIVITY ANALYSIS
(a) Fair Value Risk
The Group has exposure to the movement in fair values of its held for trading financial assets. Based on fair
values at 30 September 2021, a 10% change in fair values will have the following impact on loss
before tax and equity before tax.
Loss before tax:
Financial assets at fair value through profit and loss
Equity:
Financial assets at fair value through profit and loss
(b)
Interest Rate Risk
Consolidated
2021
$
2020
$
7
7
15
15
The following table represents a summary of the interest rate sensitivity of the Group’s financial assets and
and liabilities at the balance sheet date on the deficit for the year and equity for a 1% change in interest rates.
It is assumed that the change in interest rates is held constant throughout the reporting period.
Consolidated
30 September 2021
Carrying
Amount $
Interest Rate Risk
-1%
Interest Rate Risk
+ 1%
Net loss
$
Equity
$
Net loss
$
Equity
$
Financial Assets
Cash and cash equivalents
Other receivables - interest bearing
Financial Liabilities
Borrowings (1)
257,383
57,183
(2,574)
(572)
(2,574)
(572)
2,574
572
2,574
572
(3,459,895)
-
-
-
-
Totals
(3,145,329)
(3,146)
(3,146)
3,146
3,146
Consolidated
30 September 2020
Carrying
Amount $
Interest Rate Risk
-1%
Interest Rate Risk
+ 1%
Net loss
$
Equity
$
Net loss
$
Equity
$
Financial Assets
Cash and cash equivalents
Other receivables - interest bearing
Financial Liabilities
Borrowings (1)
1,735,230
57,183
(17,352)
(572)
(17,352)
(572)
17,352
572
17,352
572
(2,760,123)
-
-
-
-
Totals
(967,710)
(17,924)
(17,924)
17,924
17,924
Note 1: None of the Group’s financial liabilities are interest bearing except for the loan facility that accrues
Interest at a fixed rate of 7% per annum (see note 15).
75
ORA GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
26.
EVENTS AFTER THE BALANCE SHEET DATE
Since the end of the financial year, the Directors are not aware of matter or circumstance not otherwise dealt with
in this report or the financial statements, that has significantly or may significantly affect the operations of the
Consolidated Entity, the results of those operations or the state of affairs of the Consolidated Entity in subsequent
years with the exception of the following, the financial effects of which have not been provided for in the 30
September 2021 financial report:
Pro rata Non-Renounceable Rights Issue
On 2 November 2021, the Company announced a non-renounceable pro-rata entitlement offer on the basis of 1
new share for every 6 existing shares at an issue price of $0.01 per share (Entitlement Offer) held by eligible
shareholders to raise approximately $1.4 million before costs. Following the completion of the Entitlement Offer on
3 December 2021, the Company issued a total of 140,350,347 new shares at an issue price of $0.01 per share to
raise $1.403 million (before costs).
Native Title & Heritage Agreement for Crown Prince & Lydia
On 15 November 2021, the Company announced that the Native Title and Heritage Agreement (“Agreement”)
between the Company’s subsidiary, Zeus Mining Pty Ltd (“Zeus”) the Wajarri Yamaji Aboriginal Corporation
(CN7878) (“WYAC”) and the Ngoonooru Wajarri Land Committee has been executed between the parties.
Issue of Broker Options in relation to the Entitlement Offer
On 10 December 2021, the Company issued a total of 5,000,000 options exercisable at $0.02 per option expiring
on 9 December 2024 to Novus Capital Limited (or its nominees) as part of their sponsoring broker fees.
27.
CONTINGENT LIABILITIES
The consolidated entity is not aware of any contingent liabilities which existed as at the end of the financial year or
have arisen as at the date of this report, other than as disclosed in note 18.
Red Bore Royalty
Under the new Red Bore Joint Venture Agreement, Mr Richmond has retained a 1.25% net smelter royalty over
minerals produced by the Sandfire/Ora joint venture from Red Bore.
Crown Prince & Lydia Gold Projects Royalty
On 12 November 2021 the Company executed a Native Title & Heritage Agreement between the Company’s
subsidiary, Zeus Mining Pty Ltd (Zeus) and the Wajarri Yamaji Aboriginal Corporation(WYAC) in relation to two
mining leases for the Crown Prince (m51/886) and the Lydia (M51/889) Gold Projects. The WYAC have been
granted up to 0.75% royalty over minerals produced by Zeus.
28.
DECONSOLIDATION OF ELEMENT 92 PTY LTD
On 24 February 2021, the Company deregistered it wholly owned subsidiary, Element 92 Pty Ltd. There was no
loss or gain on the deconsolidation of the subsidiary.
76
ORA GOLD LIMITED
DIRECTOR’S DECLARATION
In accordance with a resolution of the directors of Ora Gold Limited I state that:
In the opinion of the directors:
(a)
(b)
(c)
the financial statements and notes and the additional disclosures included in the Directors’ report
designated as audited, of the Consolidated Entity are in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Consolidated Entity’s financial position as at 30 September 2021
and of its performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
the financial report also complies with International Financial Reporting Standards as described in note
2(b).
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with section 295A of the Corporations Act 2001 for the financial year ended 30 September 2021.
On behalf of the Board
FRANK DEMARTE
Executive Director
Perth, Western Australia
Dated in Perth this 17 December 2021
77
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ORA GOLD LTD
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Ora Gold Ltd (“the Company”) and its subsidiaries (“the Consolidated
Entity”) which comprises the consolidated statement of financial position as at 30 September 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year ended on that date, notes
comprising a summary of significant accounting policies and other explanatory information and the directors’
declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end
or from time to time during the financial year.
In our opinion, the accompanying financial report of Ora Gold Ltd is in accordance with the Corporations Act
2001, including
(i)
giving a true and fair view of the consolidated entity’s financial position as at 30 September 2021 and
of its performance for the year ended on that date; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Company in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Material Uncertainty Related to Going Concern
We draw attention to note 2 of the financial report, which describes that the financial report has been prepared
on a going concern basis. At 30 September 2021, the consolidated entity had a net asset deficiency of
$3,399,846, cash and cash equivalents of $257,383, and a net working capital deficiency of $34,062. The
consolidated entity had incurred a loss for the year ended 30 September 2021 of $2,402,905 and had net
cash outflows from operating activities of $1,034,526 and net cash outflows from investing activities of
$1,165,821.
The ability of the consolidated entity to continue as a going concern and meet its planned exploration,
administration, and other commitments is dependent upon the future successful raising of necessary funding
through equity or borrowings, successful exploitation of the consolidated entity’s exploration assets, and or
sale of non-core assets. In the event that the Company cannot raise further funding, successfully exploits its
assets and or divest non-core assets, the consolidated entity may not be able to meet its liabilities as they fall
due or realise its assets in the normal course of business.
Our conclusion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key Audit Matters
Share based payments – share options
How the matter was addressed in the audit
Inter alia, our procedures included the following:
As referred to in Note 19 of the financial report, the
Company awarded share-based payments in the
form of share options to its directors during the
year.
i.
Assessed the reasonability of the assumptions
used in the Company’s valuation model being
the share price of the underlying equity, interest
rate, volatility, dividend yield, time to maturity
(expected life) and the grant date;
ii. Assessed the mathematical accuracy of the
calculation through re-performance using the
Black Scholes model; and
iii. Assessed the accuracy of the share-based
payments expense and
the adequacy of
disclosures made by the Company in the
financial report in accordance with AASB 2.
to
These share options are subject
the
measurement and recognition criteria of AASB 2
Shared-based payment (“AASB 2”). There are
various inputs applied to the model used to
calculate
the options and
management’s judgements in determining the
vesting conditions.
fair value of
the
The valuation of share-based payments has been
deemed a key audit matter due to the judgement
involved in determining the fair value of the equity
instruments granted,
the grant date, vesting
conditions and vesting period, in addition to the
value of the share-based payments made for the
year.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Company’s annual report for the year ended 30 September 2021 but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation of the financial report that gives a true
and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for
the direction, supervision and performance of the Company’s audit. We remain solely responsible for our audit
opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 33 to 40 of the directors’ report for the year
ended 30 September 2021.
In our opinion, the Remuneration Report of Ora Gold Ltd for the year ended 30 September 2021 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
17 December 2021
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
17 December 2021
Board of Directors
Ora Gold Ltd
Level 2
47 Stirling Highway
NEDLANDS, WA 6009
Dear Directors
RE:
ORA GOLD LTD
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Ora Gold Limited.
As Audit Director for the audit of the financial statements of Ora Gold Limited for the year ended 30
September 2021, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
ORA GOD LIMITED
ASX ADDITIONAL INFORMATION
The following information dated 15 December 2021 is required by the Listing Rules of the ASX Limited.
1.
DISTRIBUTION AND NUMBER OF HOLDER OF EQUITY SECURITIES
The number of holders, by size of holding, in each class of security are:
Distribution
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Totals
Holding less than a marketable parcel
Number of
Shareholders
Number of
Shares
391
455
324
1,020
790
2,980
1,726
91,576
1,332,253
2,525,711
42,713,629
935,782,400
982,445,569
15,598,136
2.
TWENTY LARGEST SHAREHOLDERS OF QUOTED SECURITIES
Rank Name of Shareholder
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Ragged Range Mining Pty Ltd & Associates
Chin Nominees Pty Ltd & Associates
Mr Siat Yoon Chin
Custodial Services Limited
BNP Paribus Noms Pty Ltd
Mr Punit Arora & Mrs Shweta Arora
Norvest Projects Pty Ltd
Ms Woon Hee Chin
Dingjo Pty Ltd
Doray Minerals Limited
Madisons Pty Ltd
HSBC Custody Nominees (Australia) Limited
Mr Rick Wayne Crabb + Mrs Carol Jean Crabb
Mr Hugh Warden
Mr Paul Charles Keegan
Mr Robert William Waterhouse
Mr Anthony Steele Clay & Mrs Carol Clay
Gamma Investments Pty Ltd
M & K Korkidas Pty Ltd
Emnj Pty Ltd
Total top 20 holders
Total remaining holders
Shares Held
Number
%
96,048,796 9.758
8.04
79,017,530
3.58
35,126,942
2.81
27,646,934
2.04
20,041,268
1.78
17,533,334
1.51
14,833,334
1.49
14,648,597
1.26
12,400,000
1.12
11,000,000
1.07
10,500,000
1.02
9,982,468
0.90
8,847,157
0.83
8,166,667
0.83
8,118,770
0.70
6,895,000
0.63
6,199,252
0.63
6,196,357
0.62
6,107,135
0.59
5,833,334
405,142,875 41.24
557,302,694 58.76
3.
SUBSTANTIAL SHAREHOLDERS
An extract from the Company’s register of substantial shareholders is set out below:
Name of Shareholder
Number of Shares Held
%
Ragged Range Mining Pty Ltd & Associates
Chin Nominees Pty Ltd & Associates
96,048,796
9.758
79,017,530
8.04
4.
VOTING RIGHTS
The Company’s share capital is of one class with the following voting rights:
• Ordinary Shares - On a show of hands every shareholder present in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
83
ORA GOLD LIMITED
ASX ADDITIONAL INFORMATION
5.
STOCK EXCHANGE LISTING
Ora Gold Limited ordinary shares are listed on all member exchanges of the ASX Limited. The home exchange is
in Perth.
6.
RESTRICTED SECURITIES
There are no securities on issue that have been classified by the ASX Limited, Perth as restricted securities.
7.
ON-MARKET BUY-BACK
The Company does not have a current on-market buy-back plan.
84
ABN 74 950 465 654
Level 2. 47 Stirling Highway
Nedlands, Western Australia, 6009
www.oragold.com.au