2020AnnualReportFor personal use only Creating a low cost
Southeast Asian focused
Specialty Metals group,
Responsibly
THAILAND
Bangkok
Ranong
Reung Kiet
Lithium Project
(100%)
Phuket
Bang Now
Lithium Project
(100%)
Khao Soon
Tungsten Project
(100%)
MALAYSIA
The South East Asian Tin - Tungsten Belt comprises several types of granite provinces (Source: after Cobbing et al. (1986) and Gardiner et al. (2014)
2 Pan Asia Metals Limited // 2020 Annual Report
For personal use only Contents
Executive Chaiman’s Report 4 | Operational Review 7 | Corporate Social Responsibility 13 | Board of Directors 15
| Tenement Schedule 19 | Financial Report 20 | Shareholder Information 59 | Corporate Directory 61
This report has been authorised for release by the Board of Directors
Forward Looking Statements
This report prepared by Pan Asia Metals Limited (or “Pan Asia: or “PAM” or “the Company”) include forward looking statements. Often, but not always, forward looking statements can gen-
erally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include,
without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production out-
puts. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements
to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to changes in commodity prices, foreign exchange fluctuations and
general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary
licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future
operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are
based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s
business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the
Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s
control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the
reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only
at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any
obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
Competent Persons Statement
The information in this Annual Report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hobby, who
is a Member of the Australasian Institute of Mining and Metallurgy. Mr Hobby is an employee, Director and Shareholder of Pan Asia Metals Limited. Mr Hobby has sufficient experience that is
relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hobby consents to the inclusion in the report of the matters based on his information in the
form and context in which it appears.
Khao Soon Tungsten Project JORC Exploration Target
Pan Asia Metals Limited has generated a drill supported Exploration Target of 15-29 million tonnes grading 0.2-0.4% WO3 as defined under JORC Code (2012). The Exploration Target com-
prises 4-8 million tonnes grading 0.2-0.4% WO3 at the Than Pho West prospect, 1-2 million tonnes grading 0.2-0.4% WO3 at the Than Pho Ridge prospect, 6-12 million tonnes grading 0.1-0.3%
WO3 at the Target 2 prospect, and 4-7 million tonnes grading 0.2-0.4% WO3 at the Rabbit prospect. Readers are advised that the potential quantity and grade is conceptual in nature, that
there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource. Readers are advised to
refer to the following ASX releases for details on the Exploration Target:
08/10/2020 Technical Reports for PAM Projects
30/10/2020 Khao Soon Tungsten Project - Drilling Update
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assump-
tions and technical parameters continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented
have not been materially modified from the original market announcements.
Pan Asia Metals Limited // 2020 Annual Report 3
For personal use only Executive Chairman’s
Report
Dedicated people creating a low cost Southeast Asian focused Specialty Metals
Group, Responsibly
On behalf of the Board of Directors of Pan Asia Metals Limited, I am proud to present you with the
Company’s 2020 Annual Report.
When Pan Asia was formed in 2017 the then Directors
wanted to bring together the assets and initiatives
that they had been working on since 2013 and with
further exploration de-risk them in preparation for a
listing. This plan was completed successfully with the
Company’s listing on the Australian Stock Exchange in
October 2020. With Pan Asia’s listing the Company is
well positioned to move into its next phase of growth,
which is the generation of JORC Resources at its key
projects and the initiation of feasibility studies.
Pan Asia is a Southeast Asian focused minerals ex-
ploration and development company with tungsten
and lithium projects located in southern Thailand.
The Company is specifically focused on Southeast
Asia for both geological and economic reasons. The
Company’s projects are located in the Southeast Asian
Tin - Tungsten Belt, which extends from Myanmar in
the north through Thailand and Peninsular Malaysia to
the Tin Islands in the South. This belt appeals due to
the occurrence of a suite of specialty metals associat-
ed with granite related tin, tungsten, lithium, tantalum,
niobium, rubidium, cesium, rare earths and other rare
metals. This contains some of the largest historical
tin producing districts in the world, specifically in
Southern Thailand and much of Peninsula Malaysia,
and has experienced very limited modern exploration.
Operating in Southeast Asia, especially in Thailand
and Malaysia, gives the Company access to modern
industrial economies with globally competitive cost
environments. We are also located in close proximi-
ty to larger markets in Asia, the fastest growing and
most populous region on earth. Our strategy is simple,
we seek to secure exploration and development as-
sets which have the potential to be positioned in the
lowest or leading third of the cost curve and which
position the Company for downstream value adding
opportunities. Cost curve positioning is paramount in
our decision-making, as assets positioned further up
the cost curve are generally more difficult to finance
and develop as they struggle to provide a satisfactory
return in investment. Regardless of the size or grade of
an asset, if finance cannot be secured then the asset is
worth relatively little.
The opportunity to move downstream is also very
important. In general, value adding mine output will
offer the Company better and more consistent profit
margins and a larger footprint of customers, and expo-
sure to new opportunities. Although it is unusual for
an exploration company to be considering downstream
initiatives, and to some this may sound ‘optimistic’,
the fact is that for many specialty metals, including
tungsten and lithium, value adding can be more eas-
ily incorporated into a feasibility study if the geology,
geography and cost environment is right.
We have a preference for Southeast Asia because it
is a low cost operating environment, and hence there
is greater potential to move down-stream and value
add in certain circumstances. Value adding mine
output is out of reach for most explorers and develop-
ers due to the mineral, and or the geography, and or
the cost environment, i.e. if the target mineral is a bulk
commodity (e.g. coal or iron ore) or a base metal (e.g.
copper, zinc or lead) then economies of scale and cap-
ital requirements are generally barriers to entry to all
but the largest mining companies. Furthermore, if the
project is remote then the availability and cost of pro-
cess inputs and availability of infrastructure generally
increase barriers to entry, and if the project is situated
in a high cost environment then capital and operat-
ing costs can also be a barrier to entry. This is where
Pan Asia has an advantage over many of its peers, the
Company’s tungsten and lithium projects are situated
such that balance sheet requirements are expected to
be much less demanding as its projects are located in
close proximity to the advanced industrial centres in
Thailand and Malaysia. These countries offer compet-
itively priced process inputs as well as being low-cost
operating environments – something which applies to
4 Pan Asia Metals Limited // 2020 Annual Report
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Pan Asia Metals Limited // 2020 Annual Report 5
Economic Complexity Index (2018 Ranking)Japan: No. 01Taiwan: No. 03Germany: No. 04Singapore: No. 06Malaysia: No. 25Thailand: No. 28China: No. 29Australia: No. 72Chile: No. 75Thailand 4.0 andS-Curve Targets AerospaceAlternative Energy Next-gen Automotive Automation& Robotics Bioeconomy Bio-plasticsDefense Digital Economy& Software Food Machinery Medical Hubs Printing Smart ElectronicTextilesThai ElectricVehicle PolicyFocus on EVs and LIBs Prod.Up to 10 Year Tax ExemptionsImport Tarif ExemptionsManufacturing UnderwayThai Auto Industry(No. 1 in SE Asia)18 Auto Assemblers9 Motorbike Assemblers710 Tier 1 Auto Parts Cos1,700 Tier 2 & 3 SuppliersNo. 1 Auto Manufacturer in SE AsiaNo.2 1-Ton Pickup Manufacturer Globally No.4 Auto Manufacturer in AsiaNo.6 Commercial Vehicle Manufacturer Globally Largest Auto Export Market: AustraliaKhao Soon Tungsten Project (100%)Reung Kiet Lithium Project (100%) Bang Now Lithium Project (100%)THAILANDGDP Rank: 191ECI Rank: 281BangkokPhuketKuala LumpurSingaporeRanongMALAYSIAGDP Rank: 25ECI Rank: 261. The Observatory of Economic Complexity: https://oec.world/en/rankings/eci/hs6/hs92; 2. Other data: Thailand Board of Investment: https://www.boi.go.th/en/index/Pan Asia’s projects sit between two Complex Industrial EconomiesFor personal use only Southeast Asia in general and is why processors and
manufacturers of all types choose to locate there.
SE Asian based downstream processing operations.
Complementing Pan Asia’s project suite is the
Company’s target generation program. Our aim is to
build a pipeline of target assets in battery and critical
metals, and rare earths, (specialty metals) which fit
our criteria. This program has been running for several
years and Pan Asia has a pipeline of target areas and
target assets in SE Asia which are at various stages of
consideration.
At Pan Asia our strategy is simple, we aim to secure
assets which have the potential to place future oper-
ations at the bottom of the cost curve and which offer
the option to extend down-stream and value add. If
we achieve this then our operating margins will natu-
rally be higher, allowing the Company to prosper in all
price environments. The Company has built a strong
reputation is Southeast Asia and as a result Pan Asia’s
Shareholders and Stakeholders will benefit as the cur-
rent assets are developed and new assets are secured.
Yours sincerely
Paul Lock
Executive Chairman
Managing Director
Pan Asia has a 100% interest in four projects, con-
sisting of two tungsten project areas and two lithium
project areas. Three of these four projects fit Pan Asia’s
strategy of downstream value-adding development op-
portunities located in low cost environments proximal
to end market users.
Pan Asia’s Khao Soon Tungsten Project (Khao Soon,
Thailand, 100%) is a significant historical producer.
Modern exploration has discovered, potentially world
class, district scale tungsten mineralisation across nu-
merous prospects. Pan Asia started its second drilling
campaign at Khao Soon just before listing and both
drilling programs have intersected robust widths and
tungsten trioxide (WO3) grades associated with strong
surface anomalies, from which Exploration Targets
have been estimated. Additional drilling has been un-
dertaken to support Mineral Resource estimation
Pan Asia’s Reung Kiet Lithium Project (Reung Kiet,
Thailand, 100%) is situated in a region of previous
large-scale tin mining. Lithium mineralization occurs
in association with some of these mined areas. Pan
Asia’s exploration discovered lepidolite and musco-
vite (lithium-rich micas) occurring in pegmatites over
a combined strike length of 2.5km. Rock-chip and
trench sampling have generally defined consistent high
grades across good widths and initial diamond drilling
has also resulted in some encouraging intersections.
The Company started its second drilling campaign in
mid January 2021, targeting the previously un-drilled
Bang I Tum prospect. Initial metallurgical test work
conducted in early 2020 provided some very positive
results.
The Company also holds the Bang Now Lithium
Project (Bang Now, Thailand, 100%) and the Minter
Tungsten Project (Minter, Australia, 100%). Bang
Now is also in a historical mining area where lepido-
lite-rich pegmatites were mined for tin. Exploration of
this project area is at an early stage with work to date
having defined potential for a lithium rich pegmatite
dyke swarm around 2km long and 400m wide, with
individual dykes up to 2m wide. Minter is located in the
Lachlan Fold Belt in central NSW, Australia. Past ex-
plorers have defined broad areas of elevated tungsten
in soil sampling and mostly shallow follow-up drilling.
More recent diamond drilling and mapping would indi-
cate that all drilling has not been appropriately oriented
to adequately test the mineralisation. Pan Asia plans to
conduct appropriately directed drilling. Whilst Minter
does not directly fit Pan Asia’s strategy we see it as a
potential source of tungsten concentrate to feed future
6 Pan Asia Metals Limited // 2020 Annual Report
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Operational
Review
Pan Asia is focused on building a pipeline of battery and critical metals assets which
are situated at or near the bottom of their peer group cost curves
Pan Asia has been drilling since it listed in October, 2020, the Company’s aim is to produce inaugural
JORC Mineral Resources at its key projects and progress to feasibility studies
Pan Asia’s activities during 2020 can be broken into
two segments, pre Pan Asia’s listing on the ASX and
post listing. During the prelisting period of January
through to October 8, 2020, the Company’s focus
was primarily on the IPO process, although field work
including a geophysics program took pace early in the
year. During the Post IPO period the Company focused
on drilling at the Khao Soon Tungsten Project.
COVID-19
During the entire period the COVID-19 crisis has
impacted all businesses globally, including Pan Asia.
Thailand incorporated monitoring measures such as
thermal imaging cameras at its international airports
very early in January 2020 and went into lock down
for several months from late March. In December
there was a fresh COVID-19 outbreak, which rolled
through into January 2021. Throughout the year the
Thai authorities managed to keep COVID-19 numbers
very low and except for the period March through June
the Company has not experienced any disruptions to
its field activities. Thailand has maintained one of the
best COVID-19 performance track records during this
global crisis and Pan Asia has been able to maintain
a full field presence since listing. As the Company
has in country administration and field teams, it has
been able to maintain normal operations and also
has received approval for several exploration licenses
during the period, despite the crisis. Although senior
management in Australia was subject to travel restric-
tions these restrictions have had little impact on the
Company’s day to day operations, particularly so with
the increasing use of Zoom and similar video confer-
encing tools as a result of the crisis.
Licencing
During the period Pan Asia’s Bang Now Lithium Project
(BNLP) Exploration Prospecting Licenses (EPL) AEPL
1/2561 and AEPL 2/2561 were granted. These are two
year licences which enable the Company to assess
the prospectivity of a license area without committing
to the application process for a Special Prospecting
Licences (SPL), which have terms of 5 years. The EPL
licence permits the Company to carry out all explo-
ration activities including drilling and bulk sampling
and if the licence area is assessed as prospective and
meets the Company’s internal hurdles on a number of
factors including potential position on the cost curve,
then the Company will apply for an SPL. During
the period, the Company was also granted Special
Prospecting Licences TSPL1/2563 and TSPL 2/2562
covering the Khao Soon Tungsten Project. Both li-
cences were effectively re-applications and their grant
was subject to the Department of Primary Industry and
Mines’ (DPIM) satisfaction that the Company had met
its commitments on the former licences, which expired
in late 2019.
Initial Public Offering
The Company lodged its Prospectus with the
Australian Securities and Investment Commission
(ASIC) and the Australian Securities Exchange (ASX)
on the 8th and 9th of July 2020 respectively. Lodgment
was delayed by about 3 months due to COVID-19. The
Company’s shares commenced trading on the ASX on
the 8th of October. The Company raised A$4.29 million
before costs via the issuance of 21,430,000 ordinary
shares at A$0.20 each. Funds are primarily being
directed to drilling activities at the Khao Soon Tungsten
Project and the Reung Kiet Lithium Project with the
aim of generating inaugural JORC Mineral Resources
and progressing to feasibility studies.
Khao Soon Tungsten Project
The Khao Soon Tungsten Project (KSTP) was a sig-
nificant historical tungsten producer and modern
exploration has discovered potentially world class,
district scale tungsten mineralisation across numerous
prospects. Reconnaissance diamond drilling by Pan
Asia has intersected robust widths and WO3 grades
associated with strong surface anomalies, from which
an Exploration Target of 15-29Mt at 0.2-0.4% WO3 has
Pan Asia Metals Limited // 2020 Annual Report 7
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For personal use only been estimated.
Pan Asia began the 2020 exploration program at KSTP
with a reconnaissance Induced Polarization Program
at several KSTP prospects in February. The program
was conducted by Austhai Geophysical Consultants
(Thailand) Co Ltd (Austhai), consisting of a series of
2D inline dipole – dipole array induced polarization
and resistivity surveys, as well as core sample testing.
This followed on from a survey conducted in 2018 with
similar objectives. A total of six lines were acquired
with three lines at Rabbit prospect and one line each
at the Than Pho West, Target 2 and Last Hill prospects.
Most lines were about 1km long with an effective depth
penetration of the IP readings of about 250m below
surface.
Post listing Pan Asia commenced drilling at the Target
2 Prospect (T2) within the KSTP on October 4th, four
days prior to Pan Asia’s listing on the ASX. Target 2 is
defined by a large high tenor, tungsten in soil anomaly
about 450m long and 150m wide. Shallow drilling by
previous explorers intersected tungsten mineralised
laterite on the western side of the soil anomaly. The
drilling program at Target 2 had three main objectives:
a. Test an Induced Polarisation anomaly; b. Test the
WO3 in soil anomaly; and c. Evaluate the Exploration
Target defined at Target 2. A total of nine holes have
been drilled for an aggregate of 773.3m. Drilling results
have confirmed robust near surface WO3 grades exist
beneath much of the tungsten in soil anomaly which
are generally in-line with the grades stated for the
Exploration Target. Results for holes drilled to test a
deep Induced Polarisation and holes drilled to test lat-
erite hosted WO3 mineralisation west of the soil anom-
aly, have tended to downgrade these targets, although
further drilling is required due to the wide spaced
nature of previous and current drillholes at these
targets. Additional drilling is planned at Target 2 and
will test the soil anomaly along strike to the northeast
and southwest where it remains open. Further holes
are also planned to test the mineralised zone down
dip. The estimation of a Mineral Resource is contingent
upon the results of future drilling.
At conclusion of the preliminary T2 drilling program
discussed above Pan Asia shifted its drilling rig to the
Than Pho West Prospect (TPW) in mid November.
TPW is defined by a large plus 1km long WO3 soil
anomaly. Pan Asia previously completed seven dia-
mond holes at TPW and defined near surface tungsten
mineralisation up to 50m true width. Drilling at TPW
was designed as infill and extensional drilling to previ-
ous programs upon which the Exploration Target esti-
mate at TPW is based. A successful outcome will allow
Pan Asia to estimate an inaugural Mineral Resource.
As at the 31st of December a total of eight PQ diam-
eter priority 1 drillholes had been drilled for 698.2m
and subsequent to the year end this phase of the TPW
program was completed with 2 additional PQ drillholes
for a program total of 828.2m in 10 holes. The program
was a success with wide mineralised zones and ro-
bust WO3 grades achieved. Several sections that were
drilled delineated thick zones of mineralisation with the
thickest zone being 63 metres. Drill intersections often
produced grades greater than 0.5% WO3 with the best
intersection to date being 7.5m at 1.22% WO3.
See ASX:Pan Asia 24-02-2021 ‘Strong Results from
Khao Soon Tungsten Project’ ; 15-01-2021 ‘Khao Soon
Tungsten Project Drilling Update’; 23-12-2020 ‘Khao
Soon Tungsten Project Drilling Update’; 30-11-2020
‘Khao Soon Tungsten Project Drilling Update’; 08-10-
2020 ‘Pan Asia Projects – Technical Reports’.
Reung Kiet Lithium Project
The Reung Kiet Lithium Project (RKLP) is another of
Pan Asia’s key projects. RKLP is a hard rock proj-
ect with demonstrated potential for lithium hosted in
lepidolite rich pegmatites chiefly composed of quartz,
albite, lepidolite / muscovite with minor cassiterite and
tantalite as well as other accessory minerals including
some rare earths. The advantage of lepidolite is that
lithium can be extracted without the need for energy
intensive roasting, and lepidolite has a suite of poten-
tial by-products which are recoverable at the concen-
trator and latter processing stages of the flow sheet.
Peer feasibility work has demonstrated lepidolite has
the potential to be one of the highest purity sources
of battery grade lithium carbonate and lithium hydrox-
ide, that lepidolite is one of the lowest cost sources of
lithium hydroxide on an All In Sustaining Costs basis,
and that lepidolite has one of the lowest capex require-
ments on a per tonne LCE basis after by-products.
During the year Pan Asia initiated a metallurgical test-
work program to test a bulk composite sample derived
from a trenching program undertaken by Pan Asia at
the southern end of the Reung Kiet Prospect in 2019.
The main aim of the testwork was to produce a lepi-
dolite concentrate with acceptable grade and recov-
ery characteristics. The rock being tested represents
weathered lepidolite rich pegmatite. A single 25kg
composite sample was prepared from 104 individual
samples. The calculated average grade of the sample is
1.35% Li2O and it would likely represent initial mill feed
early in the mine life. The program was also successful
in characterising potentially valuable by-products that
would otherwise report to tailings. These by-products
include: i. kaolin clay, which could potentially be sold
as raw product and/or be used as feed to produce HPA
(high purity aluminium); and ii. quartz, which in its
Pan Asia Metals Limited // 2020 Annual Report 9
For personal use only
crudest form can be marketed as refined sand - which
happens to be in short supply in Asia. If successful the
possible extraction of these by-products would result
in a much reduced tailings waste stream, the best out-
come would be near zero tailings. Additional test-work
is planned to investigate the incorporation of by-prod-
uct recovery in the processing flow-sheet. Pan Asia’s
Consulting Metallurgical Engineer, Mr Rolly Nice of RW
Nice & Assoc Pty Ltd., who has substantial experience
consulting on metallurgical matters for a wide range
of metals, including lithium (lepidolite) and tungsten
(wolframite), coordinated the test work. The program
was a success with the metallurgical test-work on the
weathered pegmatite indicating 93.6% Li recovery to
a rougher concentrate grading 2.76% Li2O. Whilst the
cleaner concentrate test-work is yet to be completed,
we believe a lepidolite concentrate grading approxi-
mately 3.5-4.0% Li2O with overall Li recovery around
85% is potentially achievable. However, the cleaner
concentrate and further optimisation test-work will
determine the ultimate grade/recovery characteristics
of the lepidolite concentrate. The lepidolite concentrate
will also contain appreciable levels of rubidium, caesi-
um, potassium, aluminium and silicon - all by-products
which are potentially recoverable during the process-
ing of lepidolite to extract lithium.
During the period Pan Asia was invited by the
Chief Executive Officer of the Phang Nga Provincial
Administrative Organisation (PAO), a Phang Nga
Provincial Government coordinating body, to present
Pan Asia and RKLP. Attending the meeting was the
Head and representatives of Phang Nga Provincial
Industry and representatives of the Phang Nga
Provincial Public Works and Town Planning Office. The
purpose of the meeting was to assist the Phang Nga
Provincial Government and their considerations for
the potential establishment of mining and industrial
development areas. The Head of Phang Nga Provincial
Industry has also been appointed by the Phang Nga
Governor as Chairman of the Phang Nga New Town
Planning Committee. During the meeting the Chairman
of this Committee conveyed the Committee’s support
for the RKLP and the PAO’s aim is to ensure that the
requirements of the RKLP are incorporated into the
Phang Nga New Town Planning Committee’s zoning
plans to ensure that the project can progress should
exploration and feasibility results prove positive.
No further field work or drilling was conducted during
the period.
See ASX:Pan Asia 01-02-2021 ‘Reung Kiet Lithium
Project - Drilling Update’; 21-10-2020 ‘Reung Kiet
Lithium Project Update’; 08-10-2020 ‘Pan Asia Projects
– Technical Reports’.
Bang Now Lithium Project
The Bang Now Lithium Project (BNLP) is located
about 480km WSW of Bangkok and about 60km from
Ranong City in the western part of Chumpon Province.
Much of the prospect area has been mined for tin
using alluvial and soft rock mining methods, mining
ended in the 1980’s.
The BNLP EPLs were granted in early 2020.
Subsequent reconnaissance exploration work, by Pan
Asia has identified a zone of lepidolite rich pegmatite
dykes – this zone is interpreted to be part of a pegma-
tite dyke swarm possibly up to 400m wide and over
2km long. From seven samples, laboratory analyses
returned Li2O grades ranging from 0.50 to 3.38%, with
an average of 1.92%, and handheld X-Ray Fluorescence
(hhXRF) analysis of the pulp rejects returned average
grades of 700ppm Sn, 158ppm Ta2O5, and 0.68% Rb.
Laboratory analysis of a further 13/16 samples returned
an averaged 1.58% Li2O using a cut-off grade of 0.5%
Li2O, resulting in an average grade of 20/24 samples of
1.75% Li2O using a cut-off grade of 0.5% Li2O.
No further field work or drilling was conducted during
the period.
See ASX:Pan Asia 08-10-2020 ‘Pan Asia Projects –
Technical Reports’.
Minter Tungsten Project
The Minter Project is located within the central portion
of the Lachlan Orogen (the “Lachlan Fold Belt”), which
includes the broadly-defined “Wagga Tin Belt”, which
extends about 700kms from north-eastern Victoria in a
belt 100-150km wide and continues into central NSW.
The Wagga Tin Belt hosts numerous granites of par-
ticular composition that give rise to tin, tin-tungsten,
tungsten and gold mineralisation hosted within the
granite intrusions and/or adjacent metasediments, and
commonly in quartz veins. The Minter project sits mid-
way between the productive Gibsonvale and Tallebung
tin-tungsten fields and 110 kilometres north-northwest
of the substantial Ardlethan tin field
Exploration by previous explorers at Minter has defined
a belt of prospective tungsten mineralisation hosted
in quartz veins occurring within metasediments near
a granite contact. At the Doyenwae prospect there
has been approximately ~3,600m of drilling in 59
holes yielding numerous low to moderate grade WO3
intersections over a relatively large area. Much of this
drilling was shallow aircore drilling to about 20-25m
vertically below surface along with 17 RC holes and
one diamond core hole.
10 Pan Asia Metals Limited // 2020 Annual Report
For personal use only Pan Asia Metals Limited // 2020 Annual Report 11
For personal use only In late November Pan Asia received permission from
the NSW Government to conduct a six (6) hole, 1000-
1200m reverse circulation (RC) drilling program at the
Doyenwae prospect. The aim of the program is to test
potential for near-surface tungsten mineralisation that
may be amenable to open pit mining. Pan Asia’s as-
piration is to produce tungsten concentrate from the
project as potential feed into South East Asian down-
stream processing initiatives.
The planned drilling program was postponed pend-
ing ratification of a land transfer relevant to the Land
Access and Compensation Agreement. As a result no
field work or drilling was conducted during the period.
See ASX:Pan Asia 02-12-2020 ‘Minter Tungsten Project
- Drilling Program Approved’; 08-10-2020 ‘Pan Asia
Projects – Technical Reports’.
Project Generation
During the period the Company conducted due dili-
gence on several projects in Asia and Australia. As at
writing the Company had not committed to any proj-
ects and or was waiting on confirmation from relevant
authorities that project areas of interest were available
for licence applications.
The Company aims to identify and add battery and
critical metal projects to its portfolio which meet cer-
tain criteria, particularly the potential to be placed at or
near the bottom of the cost curve and preferably with
the potential for down stream value adding.
12 Pan Asia Metals Limited // 2020 Annual Report
For personal use only Corporate Social
Responsibility
Pan Asia wants its people to be proud of where they work and the communities in which
Pan Asia works to welcome them
Pan Asia focuses on developing very strong connections with the communities in which it works,
working closely with community leaders to deliver community focused programs in education, health
and sport
Although Pan Asia is a young ASX listed company it
has been operating in SE Asia since October 2017 and
its founding directors, Paul Lock, David Hobby, David
Docherty, and Thanasak Chanyapoon, and its key staff
members in Thailand, have been involved in explora-
tion in SE Asia for many years.
We are of the view that regardless of your geography
it is essential that you have a relationship with your
community as it is at their invitation that you are work-
ing there. It is particularly important that this is under-
stood by companies operating in foreign jurisdictions,
regardless of geography.
Pan Asia’s community engagement programs have
three key focus areas:
Education
Through “The Village Scientist”, an educational focused
program, Pan Asia aims to help schools with essen-
tials so that education can be delivered. Pan Asia has
helped with the installation of air conditioning, the
purchase of basic school equipment such as desks and
chairs, and other teaching related tools and equipment.
Pan Asia would like to see The Village Scientist grow
into an education focused not for profit which works
with a broad base of companies to help schools deliver
positive educational outcomes to their students.
Health
Pan Asia regularly contributes to regional and local
medical facilities and hospitals. Contributions are
normally in the form of medical equipment and basic
repairs and maintenance. During the COVID-19 pan-
demic Pan Asia delivered food packs and personal
protective equipment to local community organisations
who then distributed these items to those in need.
Most recently Pan Asia helped with food aid to flood
effected areas near the KSTP in southern Thailand
following a large monsoonal rain event.
Sport
Pan Asia regularly sponsors community sports teams,
providing sports equipment and clothing.
Although Pan Asia is a small company with limited
resources its community engagement programs are
an important aspect of Pan Asia’s relationship building
activities in and around the communities in which it is
involved.
Pan Asia Metals Limited // 2020 Annual Report 13
Delivering new chairs to the Ban Klong Chai Tai Child Develop-ment Center under the Village Scientist programPan Asia’s Sucharoen Boonyalongkorn delivering two water tanks which are to be used for community waterFor personal use only For personal use only Board of
Directors
Paul Lock
Executive Chairman
Managing Director
David Hobby
Technical Director
Chief Geologist
David Docherty
Non-Executive
Director
Thanasak Chanyapoon
Non-Executive
Director
Ian B Mitchell
Non-Executive
Director
Roger Jackson
Non-Executive
Director
Paul Lock
Executive Chairman and Managing Director
AAusIMM, Master of Political Economy, University of Sydney; Master of International Studies, University of
Sydney; Master of Commercial Law, Macquarie University; Master of Business Administration, Macquarie
Graduate School of Management; and Bachelor of Business, Marcus Oldham College
Paul has been involved in minerals exploration in South East Asia since 2012, with his work in this region
forming the foundations of what is now Pan Asia Metals.
Before Pan Asia Metals Paul was a corporate adviser at Everspring Partners, a boutique Sydney based
advisory firm that he founded. Before this Paul worked in corporate advisory and leveraged finance roles at
Commonwealth Bank of Australia. Paul initially focused on corporate and single asset project finance in the
resource sector before moving into leveraged finance for private equity initiatives and then into a corporate
advisory role where he was sector agnostic and focused on generating corporate transactions.
Pan Asia Metals Limited // 2020 Annual Report 15
For personal use only Prior to banking Paul worked for Rothschild & Co in Australia where he was a derivatives trader and a high
yield bond investor focusing on a variety of asset classes, generally distressed or complex assets. Paul also had
some involvement in structuring derivatives solutions for resource companies in conjunction with Rothschild’s
corporate advisory team. Prior to Rothschild Paul worked for Japanese trading conglomerate Marubeni
Corporation in the soft commodity trading division.
Other current directorships: None
Former directorships (last 3 years): None
Interest in shares: 42,099,750 fully paid ordinary shares
Interests in options: None
David Hobby
Technical Director and Chief Geologist
MAusIMM, Competent Person under the JORC Code, Bachelor of Applied Science (Geology) from Uinversity of
Canberra
David is an Economic geologist and has been involved in the minerals industry for over 30 years. Since
graduating from the University of Canberra in 1989 David has worked in a variety of geological terrains in
Australia, Asia, South America, USA and Africa, and has experience in all facets of the minerals project cycle
with a focus on exploration and evaluation.
David has held senior geological management and consulting positions with listed and private companies and
progressed several projects through to feasibility and pre-production, including the Adelong Gold Project,
Broula King Gold Project, Webb’s Silver Project and the Woodlawn Zn-Cu project.
David has been focused on SE Asia since 2013. His geological qualifications and experience are complimented
with skills in project management, environmental management, Occupational Health and Safety, contractor,
government and stakeholder management.
Other current directorships: None
Former directorships (last 3 years): None
Interest in shares: 4,677,750 fully paid ordinary shares
Interests in options: None
David Docherty
Non-Executive Director
David has gained a lifetime of experience in the resource sector commencing with stockbroking in London
before commencing a valuable career experience as an analyst with Investment Bank, Slater Walker London
in 1965. David moved to Sydney in 1968 with Slater Walker to develop resource investment strategy, organising
finance to enable Poseidon to drill its ‘famous’ Mt Windarra nickel discovery in 1969, as well as financing many
other resource assets of that time. The same year David organised the ASX float of Slater Walker sponsored
Mining Finance Corporation, becoming its Managing Director. In later times, David successfully guided
Sedimentary Holdings as CEO to joint ownership and open-pit development of the old Cracow Gold Mine (Qld)
in 1984-87.
David became an equity partner in the Thai resource sector in 1987 when the Government deregulated gold
exploration and mining. Thereafter, he jointly financed the formation of a team of young, keen local geologists
who were responsible for the discovery of what is now the Chatree Gold Mine, a prospect which ultimately
developed into the core gold asset of Kingsgate Consolidated and which, at its peak, was capitalised at more
than $1 billion.
In 2002 David was a foundation director and is CEO of Thai Goldfields NL, an unlisted public company which
holds Thai applications (and re-applications) over gold resources defined by previous JV partners Oxiana and
Tigers Realm Minerals and exploration tenements previously investigated by Newmont, Ivanhoe, Phelps Dodge.
16 Pan Asia Metals Limited // 2020 Annual Report
For personal use only Other current directorships: Thai Goldfields NL, Sydney Equities Pty Ltd
Former directorships (last 3 years): None
Interest in shares: 21,329,091 fully paid ordinary shares
Interests in options: None
Thanasak Chanyapoon
Non-Executive Director
Master degree in law (LL.M.), Certificate of American and International Law, Bachelor degree in law (LL.B.
(Hons))
Thanasak is a Partner at The Capital Law Office, a leading Bangkok based legal practice. Thanasak’s area of
expertise is tax law, advising national and international financial institutions, equity funds and corporations for
more than 25 years. Prior to joining The Capital Law Office, he has worked with Baker & McKenzie, Bangkok,
and Linklaters, Bangkok. He was also the co-founder of LawAlliance Limited specializing in Thailand tax laws
including double tax treaties made with Thailand. Since 2008 to date, Thanasak is a special lecturer in various
tax law subjects at Law Faculty, Chulalongkorn University, and in Faculty of Business Administration, Kasetsart
University.
Other current directorships: Cal-Comp Electronics (Thailand) PCL
Former directorships (last 3 years): None
Interest in shares: 3,070,965 fully paid ordinary shares
Interests in options: None
Ian B Mitchell
Non-Executive Director
BA, Dip Law
Ian is a practicing solicitor of over 44 years’ standing. Ian has been a director of over 13 ASX listed companies
since 1987 and also as a company secretary of many more ASX listed and non-listed public companies.
Ian has over 30 years’ experience as a director and company secretary of listed and nonlisted mining,
exploration and industrial companies. Ian’s legal expertise is in commercial law, contract law and ASIC and ASX
compliance.
Other current directorships: Ark Mines Limited
Former directorships (last 3 years): None
Interest in shares: None
Interests in options: None
Roger Jackson
Non-Executive Director
FAusIMM, Competent Person under the JORC Code; Bachelor of Science, major in Geology and Geophysics;
Diploma in Financial Management; Diploma in Education. Member of the Australian Institute of Company
Directors; Fellow of the Geological Society of London; Member of the Australian Institute of Geoscientists.
Roger has been actively involved in the Mining industry for 25 years as a Mine Operator, in Mine Services and in
Mineral Exploration. He has been a founding director of a number of private and public mining and mine service
companies. He is currently a Director of NQ Minerals PLC.
Roger has maintained a Geological and Mining Consulting business for the past 10 years whilst holding several
executive roles. He has strong knowledge of Gold exploration and Mining. He also has a sound knowledge of
base metal mining and exploration. He has developed several mining and ore processing operations in Australia
and abroad and has significant experience in marketing gold and base metal concentrate across the globe.
Pan Asia Metals Limited // 2020 Annual Report 17
For personal use only Other current directorships: QX Resources Ltd, Ark Mines Limited
Former directorships (last 3 years): None
Interest in shares: None
Interests in options: None
Company Secretaries
Wayne John Kernaghan - B.Bus, ACA, FAICD, FCIS
Mr Kernaghan is a qualified chartered accountant who spent 5 years with Price Waterhouse. On leaving Price
Waterhouse he has spent over thirty years as Finance Director and Company Secretary within the mining
industry for ASX and UK listed companies, unlisted public companies and as an Investment Manager in
Australia and the United Kingdom. He is also a Fellow of the Australian Institute of Company Directors and a
Chartered Secretary.
Fiza Alwi
Fiza Alwi is a Director of ZICO Corporate in Singapore. She acts as Secretary to a diversified range of local and
foreign listed and non-listed companies. In her role as Company Secretary, Fiza helps the Company on matters
related to corporate transactions and also advises and provides guidance on procedures and practices, code of
corporate governance, compliance and regulatory requirements. Fiza holds a Bachelor of Law (Hons) degree
and is also a fellow of the Chartered Secretaries Institute of Singapore and a Practising Chartered Secretary..
18 Pan Asia Metals Limited // 2020 Annual Report
For personal use only Tenement /
Application
Holder /
Applicant
% Held
Grant Date
Term
(Years)
Area
(Km2)
Country
Reung Kiet Lithium Project
JSPL 1/2562
JSPL 2/2562
JSPL 3/2562
SIM
SIM
SIM
Khao Soon Tungsten Project
TSPL 1/2563
TSPL 2/2563
TSPL 1/2549
TMV
TMV
TMV
Bang Now Lithium Project
AEPL 1/2561
AEPL 2/2561
PAM3
PAM3
Minter Tungsten Project
100
100
100
100
100
100
100
100
15-Feb-2019
15-Feb-2019
15-Feb-2019
14-May-2020
20-Aug-2020
5
5
5
5
5
Application
na
14-Feb-2020
14-Feb-2020
2
2
4
12.3
12.7
11.9
7.1
15.9
11.0
3.5
1.5
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
145
Australia
EL 8811
PAMA
100
14-Dec-2018
SIM: Siam Industrial Metal Co. Ltd.; PAM3: Pan Asia 3 Metals (Thailand) Co. Ltd.; TMV: Thai Mineral Ventures Co. Ltd.; PAMA: Pan Asia Metals (Aus) Pty. Ltd. SIM, PAM3, TMV and PAMA are
all subsidiaries of the Company or a subsidiary of one of the Company’s100% held subsidiaries.
Tenement Schedule Bang Now Lithium Project (100%)Khao Soon Tungsten Project (100%) Reung Kiet Lithium Project (100%) Minter Tungsten Project (100%)For personal use only Financial
Report
The directors present their report, together with the financial statements, on the
consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Pan
Asia Metals Limited (referred to hereafter as the 'Company' or 'parent entity') and the
entities it controlled at the end of, or during, the year ended 31 December 2020.
Directors
The following persons were directors of Pan Asia Metals Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Mr Paul Lock
Mr David Hobby
Mr David Docherty
Mr Thanasak Chanyapoon
Mr Ian B Mitchell (Appointed to Non-Executive Director role on 1 October 2020)
Mr Roger Jackson (Appointed to Non-Executive Director role on 1 October 2020)
Principal activities
Pan Asia Metals Limited (Pan Asia) is a Singapore registered company with a principal focus on the identification and
development of specialty metals assets situated in low cost environments which are proximal to advanced industrial centres,
and which present the opportunity to move beyond the mine gate and value add. The Company’s principal geography is SE
Asia. The Company also considers other opportunities which offer strong potential to benefit Company's shareholders
without placing a material burden on management and cash resources.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to US$786,461 (31 December 2019:
US$620,676).
The net assets of the Company increased by US$2,056,344 to US$8,610,308 as at 31 December 2020 (31 December 2019:
US$6,553,964).
Working capital, being current assets less current liabilities, increased by US$1,437,949 to surplus of US$2,058,870 (31
December 2019: positive US$620,921). The Company had negative cash flows from operating activities for the year of
US$353,025 (31 December 2019: US$590,949 negative cash flow). The total cash and cash equivalents at the end of the
financial year amounted to US$2,417,703 (31 December 2019: US$562,436).
Significant changes in the state of affairs
On 1 January 2020 the Company's subsidiary Pan Asia Metals (Thailand) Co. Limited changed office address to Level 23, 52
Thaniya Plaza, Zone B, Silom Road, Suriyawong, Bangrak, Bangkok, 10500.
On 23 January 2020, full ownership of Mandalay Mining and Metals Pte Ltd was transferred from a director of the Company,
Paul Lock, to Pan Asia Metals for $1, free and clear of all liabilities. The Company acquired assets of cash at bank of $626
and plant and equipment of $3,801. The Company is protected from any liabilities remaining on the balance sheet as at the
transfer date. This acquisition did not have a material impact on the consolidated entity.
20 Pan Asia Metals Limited // Annual ReportFor personal use only
On 7 February 2020 the Company engaged Advanced Share Registry of 110 Stirling Hwy, Nedlands, Western Australia, as
the Company's provider of share registry services in preparation for the Initial Public Offering ("IPO") on the ASX.
On 14 February 2020 the Company was awarded its exploration license for the Bang Now Lithium Project.
On 14 February 2020 the Company was awarded exploration licence numbers AEPL 1/2561 and AEPL 2/2561 at its Bang
Now Lithium Project.
On 15 February 2020 the Company changed its Singapore based Company Secretary to ZICO Corporate Services in
preparation for IPO.
On 15 February 2020 the Company changed its registered office address to Level 3, 8 Robinson Road, ASO Building,
Singapore, 048544. This is the Company's Registered Office in Singapore.
On 20 February 2020 Ian Mitchell was appointed Company Secretary to advise the Company on its reporting requirements
for ASIC and ASX in preparation for IPO.
On 14 May 2020 the Company was awarded exploration licence number TSPL 1/2563 at its Khao Soon Tungsten Project.
On 9 July 2020, the Company lodged PAM's Prospectus with the ASX. Offers for the IPO was closed on 31 August 2020.
On 20 July 2020, with shareholders approval the Company issued 26,766,874 shares to investors at various prices.
On 22 July 2020, the Company launched its Initial Public Offering to raise equity capital and list on the Australian Securities
Exchange (ASX).
On 20 August 2020 the Company was awarded exploration licence number TSPL 2/2563 at its Khao Soon Tungsten Project.
On 28 August 2020 the Company successfully completed its Initial Public Offering, raising A$4.29m.
On 1 October 2020, the Company appointed Mr Ian B Mitchell and Mr Roger Jackson as Non-Executive Directors.
On 4 October 2020 the Company started diamond drilling at its Khao Soon Tungsten Project.
On 7 October 2020, the Company was admitted to the Official List of ASX with a total of $4.29m raised by the issue of
21,430,000 shares at an issue price of A$0.20 per share.
On 8 October 2020, the Company’s shares were quoted on the ASX.
On 2 December 2020, the NSW Government approved a 6 hole drilling program at the Minter Tungsten Project.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
Subsequent to year end, on 15 January 2021 the Company mobilised its drilling rig to the Reung Kiet Lithium Project and on
17 January 2021 the Company collared its first hold at the Bang I Tum prospect at the Reung Kiet Lithium Project.
No other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly
affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in
future financial years.
Pan Asia Metals Limited // Annual Report 21For personal use only
Likely developments and expected results of operations
The Company’s objective is to advance its key projects to a JORC Resource and begin feasibility studies during the following
period. The Company also considers opportunities from time to time to expand its portfolio of projects in line with its
strategy. These are likely developments in the operations of the consolidated entity, as discussed in the review of operations.
Environmental regulation
Except for environmental regulations related to the consolidated entity’s exploration licences the consolidated entity is not
subject to any significant environmental regulation under the laws of the jurisdictions I which it operates.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 31 December 2020,
and the number of meetings attended by each director were:
Mr Paul Lock
Mr David Hobby
Mr David Docherty
Mr Thanasak Chanyapoon
Mr Ian B Mitchell
Mr Roger Jackson
Full Board
Attended
Held
14
13
14
13
6
6
14
14
14
14
6
6
Held: represents the number of meetings held during the time the director held office.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic
objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for the
delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for
good reward governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
22 Pan Asia Metals Limited // Annual ReportFor personal use only
The performance of the consolidated entity depends upon the quality of its Directors and executives. The objective of the
consolidated entity's executive reward framework is to ensure reward for performance is competitive and appropriate for the
results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of
value for shareholders, and it is considered to conform to the market best practice for the delivery of reward.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●
having economic profit as a core component of plan design
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
attracting and retaining high calibre executives
●
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board. From time to time, the Board receives advice from independent
remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market.
There was no remuneration consultants used in the year. The chairman's fees are determined independently to the fees of
other non-executive directors based on comparative roles in the external market. The chairman is not present at any
discussions relating to the determination of his own remuneration. Non-executive directors do not receive share options or
other incentives.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination was per s22.5 of the Prospectus, where the shareholders approved a maximum
annual aggregate remuneration of US$140,000 (AUD$200,000).
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Nomination and Remuneration Committee based on individual and business unit performance, the overall performance of
the consolidated entity and comparable market remunerations.
Pan Asia Metals Limited // Annual Report 23For personal use only
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
Incentives are payable to Executives based upon the attainment of agreed corporate and individual milestones and are
reviewed and approved by the Board of Directors. In 2020 no cash incentives were paid.
The long-term incentives ('LTI') include long service leave.
Consolidated entity performance and link to remuneration
At present the Remuneration Committee is considering executive remuneration, STIs and LTIs.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Pan Asia Metals Limited:
●
●
●
●
●
●
Mr Paul Lock, Managing Director
Mr David Hobby, Technical Director
Mr David Docherty, Non-Executive Director
Mr Thanasak Chanyapoon, Non-Executive Director
Mr Ian B Mitchell, Non-Executive Director
Mr Roger Jackson, Non-Executive Director
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
US$
Cash
bonus
US$
Non-
Super-
monetary annuation
US$
US$
Long
service
leave
US$
Equity-
settled
US$
Total
US$
-
-
36,327
3,750
137,618
137,618
315,313
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,074
13,074
26,148
-
-
-
-
-
-
-
30,000
30,000
3,750
3,750
30,000
30,000
40,077
7,500
-
-
67,500
150,692
150,692
408,961
2020
Non-Executive Directors:
Mr David Docherty*
Mr Thanasak Chanyapoon*
Mr Ian B Mitchell**
Mr Roger Jackson**
Executive Directors:
Mr Paul Lock***
Mr David Hobby***
24 Pan Asia Metals Limited // Annual ReportFor personal use only
*
**
$14,959 of this amount owed to Mr Docherty and Mr Chanyapoon was settled by issue of shares on 20 July 2020 and
$15,041 remains outstanding and will be settled in shares as at 31 December 2020.
Both cash and equity payments for the period from October to December 2020 for Mr Mitchell and Mr Jackson
remaining outstanding as at 31 December 2020. Mr. Mitchell's salary and fee for the year included $32,577 (exclusive of
GST) that was paid to Ian. B Mitchell and Associates, a firm related to Mr Mitchell, for the legal services in relation to
the company's IPO and listing process.
*** The Company paid USD$83,259 to Mr Lock and Mr Hobby's fees for a portion of the noted above in FY20. The
remaining Director’s fee is accrued as at 31 December 2020.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Mr David Docherty
Mr Thanasak Chanyapoon
Mr Ian B Mitchell
Mr Roger Jackson
Executive Directors:
Mr Paul Lock
Mr David Hobby
Fixed
remuneration
2020
At risk - STI
2020
At risk - LTI
2020
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
There is no comparative remuneration report since this is the first year reporting as a listed company.
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Details:
Mr Paul Lock
Managing Director
1 January 2020
The term of the agreement is for five (5) years from the date of appointment, thereafter
the agreement is reviewed annually. The agreement may be extended for a further 2
years if agreed in writing. The initial salary is A$200,000 per year plus an equivalent to
the Australian superannuation contribution of 9.5% or as may be increased from time
to time. The employee is entitled to all statutory entitlements and four (4) weeks
annual leave per year. Termination requires six (6) months notice unless otherwise
agreed, upon termination the Company shall pay twelve (12) months salary and the
employee is subject to a 12 month restriction period during which the employee shall
not compete with the Company. Executive Director's are entitled to appropriate
Director’s and Officer’s insurance to indemnify the Director in respect of actions taken
as a Director within the scope of his authority and power.
Pan Asia Metals Limited // Annual Report 25For personal use only
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Details:
Mr David Hobby
Technical Director
1 January 2020
The term of the agreement is for five (5) years from the date of appointment, thereafter
the agreement is reviewed annually. The agreement may be extended for a further 2
years if agreed in writing. The initial salary is A$200,000 per year plus an equivalent to
the Australian superannuation contribution of 9.5% or as may be increased from time
to time. The employee is entitled to all statutory entitlements and four (4) weeks
annual leave per year. Termination requires six (6) months notice unless otherwise
agreed, upon termination the Company shall pay twelve (12) months salary and the
employee is subject to a 12 month restriction period during which the employee shall
not compete with the Company. Executive Director's are entitled to appropriate
Director’s and Officer’s insurance to indemnify the Director in respect of actions taken
as a Director within the scope of his authority and power.
Mr David Docherty
Non-Executive Director
1 January 2020
The term of the agreement is for three (3) years from the date of appointment subject
to confirmation by election as a Non-Executive Director (Director) of the Company at
the next Annual General Meeting. The agreement may be extended for a further term
by mutual agreement. A Director's fee of US$30,000 per year is payable and the
Director may elect to receive part or all of this fee in PAM shares. Directors are entitled
to receive US$500 per day for up to 5 days per month should the Company require the
Director to perform services in excess of the usual and normal duties of a Board
Member. Director's are entitled to appropriate Director’s and Officer’s insurance upon
their appointment to indemnify them in respect of actions taken as a Director within
the scope of his authority and power.
Mr Thanasak Chanyapoon
Non-Executive Director
1 January 2020
The term of the agreement is for three (3) years from the date of appointment subject
to confirmation by election as a Non-Executive Director (Director) of the Company at
the next Annual General Meeting. The agreement may be extended for a further term
by mutual agreement. A Director's fee of US$30,000 per year is payable and the
Director may elect to receive part or all of this fee in PAM shares. Directors are entitled
to receive US$500 per day for up to 5 days per month should the Company require the
Director to perform services in excess of the usual and normal duties of a Board
Member. Director's are entitled to appropriate Director’s and Officer’s insurance upon
their appointment to indemnify them in respect of actions taken as a Director within
the scope of his authority and power.
26 Pan Asia Metals Limited // Annual ReportFor personal use only
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Details:
Mr Ian B Mitchell
Non-Executive Director
1 October 2020
The term of the agreement is for three (3) years from the date of appointment subject
to confirmation by election as a Non-Executive Director (Director) of the Company at
the next Annual General Meeting. The agreement may be extended for a further term
by mutual agreement. A Director's fee of US$30,000 per year is payable and the
Director may elect to receive part or all of this fee in PAM shares. Directors are entitled
to receive US$500 per day for up to 5 days per month should the Company require the
Director to perform services in excess of the usual and normal duties of a Board
Member. Director's are entitled to appropriate Director’s and Officer’s insurance upon
their appointment to indemnify them in respect of actions taken as a Director within
the scope of his authority and power.
Mr Roger Jackson
Non-Executive Director
1 October 2020
The term of the agreement is for three (3) years from the date of appointment subject
to confirmation by election as a Non-Executive Director (Director) of the Company at
the next Annual General Meeting. The agreement may be extended for a further term
by mutual agreement. A Director's fee of US$30,000 per year is payable and the
Director may elect to receive part or all of this fee in PAM shares. Directors are entitled
to receive US$500 per day for up to 5 days per month should the Company require the
Director to perform services in excess of the usual and normal duties of a Board
Member. Director's are entitled to appropriate Director’s and Officer’s insurance upon
their appointment to indemnify them in respect of actions taken as a Director within
the scope of his authority and power.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
Details of shares issued to directors and other key management personnel as part of compensation during the year ended
31 December 2020 are set out below:
Name
Date
Shares
Issue price
US$
Mr David Docherty
Mr Thanasak Chanyapoon
20 July 2020
20 July 2020
182,426
182,426
US$0.082
US$0.082
14,959
14,959
The shares were issued in settlement of director fees incurred in the period.
Options
There were no options over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 31 December 2020.
Pan Asia Metals Limited // Annual Report 27For personal use only
Additional information
The earnings of the consolidated entity for the three years to 31 December 2020 are summarised below:
Other income
Loss before income tax
Loss after income tax
2020
US$
2019
US$
2018
US$
269
(786,461)
(786,461)
160
(620,676)
(620,676)
32
(574,662)
(574,662)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at the start of financial year (US$)
Share price at the end of financial year (US$)
Basic earnings per share (dollars per share)
Additional disclosures relating to key management personnel
2020
-
0.13
(0.01)
Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Received
as part of
the start of
the year
remuneration Additions*
Disposals/
other
Balance at
the end of
the year
Ordinary shares
Mr Paul Lock
Mr David Hobby
Mr David Docherty**
Mr Thanasak Chanyapoon
Mr Ian B Mitchell
Mr Roger Jackson
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42,099,750
4,677,750
21,329,091
3,070,965
-
-
71,177,556
-
-
-
-
-
-
-
42,099,750
4,677,750
21,329,091
3,070,965
-
-
71,177,556
*Balance held upon listing on the ASX on 7 October 2020.
**By virtue of Section 7 of the Singapore Companies Act, Chapter 50, Mr. David Michael Docherty is deemed to have an
interest in the Company.
This concludes the remuneration report, which has been audited.
Shares under option
There were no unissued ordinary shares of Pan Asia Metals Limited under option outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of Pan Asia Metals Limited issued on the exercise of options during the year ended 31
December 2020 and up to the date of this report.
28 Pan Asia Metals Limited // Annual ReportFor personal use only
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility
on behalf of the company for all or part of those proceedings.
Non-audit services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the consolidated entity are important.
Details of the amount paid or payable to the auditor (William Buck) for audit and non-audit services provided during the year
are set out in note 13.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors. imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 13 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-
making capacity for the company, acting as advocate for the company or jointly sharing economic risks and rewards.
Officers of the company who are former partners of William Buck
There are no officers of the company who are former partners of William Buck.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
William Buck continues in office in accordance with section 327 of the Corporations Act 2001.
Pan Asia Metals Limited // Annual Report 29For personal use only
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Paul David Lock
Director
26 March 2021
30 Pan Asia Metals Limited // Annual ReportFor personal use only 20 Pan Asia Metals Limited // 2020 Annual Report
Pan Asia Metals Limited // Annual Report 31For personal use only Statement of profit or loss and other comprehensive income
For the year ended 31 December 2020
Other income
Expenses
Employment expenses
Depreciation expense
IPO related expenses
Corporate and administration expenses
Unrealised FX gains/losses
Loss before income tax expense
Consolidated
Note
2020
US$
2019
US$
269
160
(453,275)
(29,544)
(21,392)
(464,197)
181,678
(112,070)
(1,198)
-
(507,568)
-
(786,461)
(620,676)
Income tax expense
5
-
-
Loss after income tax expense for the year attributable to the owners of Pan Asia
Metals Limited
(786,461)
(620,676)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year attributable to the owners of Pan Asia
Metals Limited
Basic earnings per share
Diluted earnings per share
24,434
46,761
24,434
46,761
(762,027)
(573,915)
Cents
Cents
21
21
(0.83)
(0.83)
(0.87)
(0.87)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
32 Pan Asia Metals Limited // Annual ReportFor personal use only
Statement of financial position
As at 31 December 2020
(Consolidated)
Assets
Current assets
Cash and cash equivalents
Other receivables
Related party loans
Prepayments
Total current assets
Non-current assets
Plant and equipment
Right-of-use assets
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Employee benefits
Accrued expenses
Total current liabilities
Non-current liabilities
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2020
US$
2019
US$
6
7
8
2,417,703
81,974
-
7,442
2,507,119
562,436
92,251
82,908
1,437
739,032
70,133
54,904
6,470,044
6,595,081
3,598
-
5,929,445
5,933,043
9,102,200
6,672,075
129,180
27,639
61,684
244,201
462,704
29,188
29,188
63,338
-
54,773
-
118,111
-
-
491,892
118,111
8,610,308
6,553,964
9
10
7,412,600
3,303,231
(2,105,523)
4,589,214
3,283,812
(1,319,062)
8,610,308
6,553,964
The above statement of financial position should be read in conjunction with the accompanying notes
Pan Asia Metals Limited // Annual Report 33For personal use only
Statement of financial position
As at 31 December 2020
(Company)
Assets
Current assets
Cash and cash equivalents
Inter-company receivables
Prepayments
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation
Investment in subsidiaries
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Accrued expenses
Total current liabilities
Non-current liabilities
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Company
Note
2020
US$
2019
US$
2,305,793
1,835,072
2,408
4,143,273
448,483
1,129,665
-
1,578,148
4,829
85,995
5,717,183
5,808,007
-
-
5,717,430
5,717,430
9,951,280
7,295,578
13,171
271,400
284,571
-
-
11,745
-
11,745
-
-
284,571
11,745
9,666,709
7,283,833
9
10
7,412,600
3,331,620
(1,077,511)
4,589,214
3,336,635
(642,016)
9,666,709
7,283,833
The above statement of financial position should be read in conjunction with the accompanying notes
34 Pan Asia Metals Limited // Annual ReportFor personal use only Statement of changes in equity
For the year ended 31 December 2020
Consolidated
Issued
capital
US$
Capital
reserve
US$
Foreign
currency
translation
reserve
US$
Warrants
reserve
US$
Accumulated
losses
US$
Total equity
US$
Balance at 1 January 2019
1,334,395
5,338,620
(99,584)
5,015
(698,386)
5,880,060
Loss after income tax expense for
the year
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Cash received in advance for
shares not yet issued (note 9)
Exercise of deferred consideration
shares
-
-
-
1,244,819
-
-
-
-
2,010,000
(2,007,000)
-
46,761
46,761
-
-
-
-
-
-
-
(620,676)
(620,676)
-
46,761
(620,676)
(573,915)
-
-
1,244,819
3,000
Balance at 31 December 2019
4,589,214
3,331,620
(52,823)
5,015
(1,319,062)
6,553,964
Consolidated
Issued
capital
US$
Capital
reserve
US$
Foreign
currency
translation
reserve
US$
Warrants
reserve
US$
Accumulated
losses
US$
Total equity
US$
Balance at 1 January 2020
4,589,214
3,331,620
(52,823)
5,015
(1,319,062)
6,553,964
Loss after income tax expense for
the year
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs (note 9)
-
-
-
2,823,386
-
-
-
-
-
24,434
24,434
-
-
-
(786,461)
(786,461)
-
24,434
(786,461)
(762,027)
-
(5,015)
-
2,818,371
Balance at 31 December 2020
7,412,600
3,331,620
(28,389)
-
(2,105,523)
8,610,308
The above statement of changes in equity should be read in conjunction with the accompanying notes
Pan Asia Metals Limited // Annual Report 35For personal use only
Statement of changes in equity
For the year ended 31 December 2020
Company
Issued
capital
US$
Capital
reserve
US$
Warrants
reserve
US$
Accumulated
losses
US$
Total equity
US$
Balance at 1 January 2019
1,334,395
5,338,620
5,015
(333,109)
6,344,921
Loss after income tax expense for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income for the year
Transactions with owners in their capacity as
owners:
Cash received in advance for shares not yet
issued (note 9)
Exercise of deferred consideration shares
-
-
-
-
-
-
1,244,819
2,010,000
-
(2,007,000)
-
-
-
-
-
(308,907)
(308,907)
-
-
(308,907)
(308,907)
-
-
1,244,819
3,000
Balance at 31 December 2019
4,589,214
3,331,620
5,015
(642,016)
7,283,833
Company
Issued
capital
US$
Capital
reserve
US$
Warrants
reserve
US$
Accumulated
losses
US$
Total equity
US$
Balance at 1 January 2020
4,589,214
3,331,620
5,015
(642,016)
7,283,833
Loss after income tax expense for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income for the year
-
-
-
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction
costs (note 9)
2,823,386
-
-
-
-
-
-
-
(435,495)
-
(435,495)
-
(435,495)
(435,495)
(5,015)
-
2,818,371
Balance at 31 December 2020
7,412,600
3,331,620
-
(1,077,511)
9,666,709
The above statement of changes in equity should be read in conjunction with the accompanying notes
36 Pan Asia Metals Limited // Annual ReportFor personal use only
Statement of cash flows
For the year ended 31 December 2020
Cash flows from operating activities
Payments to suppliers (inclusive of GST)
Interest received
Consolidated
Note
2020
US$
2019
US$
(353,294)
269
(590,949)
-
Net cash used in operating activities
20
(353,025)
(590,949)
Cash flows from investing activities
Payments for plant and equipment
Payments for exploration and evaluation
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds received in advance for issue of shares
(Payments to) / proceeds from related parties
Repayment of lease liabilities
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
7
9
(69,002)
(540,772)
-
(305,738)
(609,774)
(305,738)
2,907,463
-
-
(27,778)
3,000
1,244,819
14,736
-
2,879,685
1,262,555
1,916,886
562,436
(61,619)
365,868
196,568
-
Cash and cash equivalents at the end of the financial year
6
2,417,703
562,436
The above statement of cash flows should be read in conjunction with the accompanying notes
Pan Asia Metals Limited // Annual Report 37For personal use only
Notes to the Financial Statements
Note 1. General information
The financial statements cover Pan Asia Metals Limited as a consolidated entity consisting of Pan Asia Metals Limited ("the
Company") and the entities it controlled at the end of, or during, the year ("the consolidated entity"). The financial statements
are presented in United States dollars, which is Pan Asia Metals Limited's functional and presentation currency. The
financial statements have been prepared for the year ended 31 December 2020.
Pan Asia Metals Ltd is a company limited by shares, incorporated and domiciled in Singapore. Its registered office and
principal place of business are:
Registered office
Principal place of business
Level 3, 8 Robinson Road,
ASO Building
Singapore
048544
Level 23, 52 Thaniya Plaza, Zone B
Silom Road Suriyawong, Bangkok
Thailand
10500
The financial statements were authorised for issue, in accordance with a resolution of directors, on 10 March 2021. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
International Financial Reporting Standards Board ('IASB') that are mandatory for the current reporting period. The adoption
of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or
position of the consolidated entity.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, and in
accordance with the provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting
Standards International (“SFRS(I)”) as appropriate for for-profit oriented entities.
Historical cost convention
The financial statements have been prepared under the historical cost.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 3.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Pan Asia Metals Limited
('company' or 'parent entity') as at 31 December 2020 and the results of all subsidiaries for the year then ended. Pan Asia
Metals Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
38 Pan Asia Metals Limited // Annual ReportFor personal use only Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control
ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity
attributable to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Foreign currency translation
The financial statements are presented in United States dollars, which is Pan Asia Metals Limited's functional and
presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into United States dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into United States dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into United States dollars using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange
differences are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to
the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Pan Asia Metals Limited // Annual Report 39For personal use only
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Trade and other receivables
Trade and other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at
the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on
an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use
asset is fully written down.
40 Pan Asia Metals Limited // Annual ReportFor personal use only Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
period in which they are incurred.
Employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
Value added tax ('VAT') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated VAT, unless the VAT incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of VAT receivable or payable. The net amount of VAT
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The VAT components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of VAT recoverable from, or payable to, the tax authority.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the consolidated entity based on known information. This consideration extends to the nature of the exploration and
expenditure expected to be incurred, supply chain, staffing and geographic regions in which the consolidated entity
operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon
the financial statements or any significant uncertainties with respect to events or conditions which may impact the
consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
pandemic.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Pan Asia Metals Limited // Annual Report 41For personal use only
Deferred consideration
The deferred consideration liability is the difference between the total purchase consideration, usually on an acquisition of a
business combination, and the amounts paid or settled up to the reporting date, discounted to net present value. The
consolidated entity applies provisional accounting for any business combination. Any reassessment of the liability during the
earlier of the finalisation of the provisional accounting or 12 months from acquisition-date is adjusted for retrospectively as
part of the provisional accounting rules in accordance with AASB 3 'Business Combinations'. Thereafter, at each reporting
date, the deferred consideration liability is reassessed against revised estimates and any increase or decrease in the net
present value of the liability will result in a corresponding gain or loss to profit or loss. The increase in the liability resulting
from the passage of time is recognised as a finance cost.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
Note 4. Segment disclosures
The consolidated entity does not have any reportable operating segments as it solely operates in one segment, being the
exploration of resources within the South East Asian region. The internal reports that are reviewed and used by the Board of
Directors (who are identified as the Chief Operating Decision Makers ('CODM') in assessing performance and in
determining allocation of resources are prepared on the consolidated entity as a whole.
Note 5. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 17% (2019:17%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Depreciation of plant and equipment
Share-based payments
Current year tax losses not recognised
Income tax expense
Consolidated
2020
US$
2019
US$
(786,461)
(620,676)
(133,698)
(105,515)
8,863
8,975
-
-
(115,860)
115,860
(105,515)
105,515
-
-
42 Pan Asia Metals Limited // Annual ReportFor personal use only Note 6. Current assets - cash and cash equivalents
Cash at bank
Consolidated
2020
US$
2019
US$
2,417,703
562,436
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Note 7. Non-current assets - exploration and evaluation
Exploration and evaluation at cost
Consolidated
2020
US$
2019
US$
6,470,044
5,929,445
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below
Consolidated
Balance at 1 January 2019
Expenditure during the year
Exchange differences
Balance at 31 December 2019
Expenditure during the year
Exchange differences
Balance at 31 December 2020
US$
5,558,326
305,738
65,381
5,929,445
513,547
27,052
6,470,044
The expenditure during the period was predominantly in respect of costs incurred on the Khao Soon Tungsten Project and
Reung Kiet Lithium Project.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is
carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered
through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are
continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or
otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure
incurred thereon is written off in the year in which the decision is made.
Pan Asia Metals Limited // Annual Report 43For personal use only
Note 8. Current liabilities - Trade and other payables
Trade payables
Other payables
Consolidated
2020
US$
2019
US$
11,819
117,361
-
63,338
129,180
63,338
Refer to note 12 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Note 9. Equity - issued capital
Consolidated
2020
Shares
2019
Shares
2020
US$
2019
US$
Ordinary shares - fully paid
126,010,288
77,813,414
7,412,600
4,589,214
Movements in ordinary share capital
Details
Date
Shares
Issue price
US$
Balance
Monies received in advance for shares awaiting to be
issued
Issue of shares to investors
Issue of IPO
Cost of capital raising
31 December 2019 (1)
1 January 2020 to 20
July 2020 (2)
20 July 2020 (3)
7 October 2020
77,813,414
-
26,766,874
21,430,000
-
US$0.000
US$0.000
US$0.140
US$0.000
Balance
31 December 2020
126,010,288
4,589,214
142,560
-
3,055,805
(374,979)
7,412,600
(1) The opening balance as at 31 December 2019 of $4,589,214 includes $1,244,819 which require formal approval at EGM
before shares can be approved for issuance by directors and recorded with Advanced Share Registry upon PAM's Initial
Public Offering (IPO).
(2) Upon investment subscription monies being received by the Company, the Company issued the subscriber with a
Holding Statement recognising that the subscriber had subscribed for a certain number of shares in the Company and the
price at which those shares were subscribed. While the Company was unlisted it was required to submit new subscriptions
to an EGM for formal shareholder approval before these shares can be issued. This approval was received at AGM/EGM on
20 July 2020. As the Company's listing is imminent the new shares was recorded with Advanced Share Registry as part of
the IPO preparations and the updated total share capital of the Company subscribed on IPO was recorded on Singapore
Accounting and Corporate Regulatory Authority (ACRA) on IPO date. As part of the Company's preparation for IPO it was
convened a simultaneous AGM and EGM, the AGM approved the Company's accounts for the 31 December 2019 financial
year, as well as previous financial years; and the EGM formally approved any outstanding shares. During this EGM the
Company put forward several other items as required to prepare the Company for its IPO. The approved shares were
recorded with Advanced Share Registry in preparation for the IPO.
44 Pan Asia Metals Limited // Annual ReportFor personal use only (3) On 20 July 2020, 26,136,874 shares which were required formal approval at EGM before they recorded with ACRA were
issued to investors.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the
company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not
actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in
order to maximise synergies.
Accounting policy for issued capital
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.
Note 10. Equity - reserves
Foreign currency reserve
Capital reserve
Warrants reserve
Consolidated
2020
US$
2019
US$
(28,389)
3,331,620
-
(52,823)
3,331,620
5,015
3,303,231
3,283,812
Pan Asia Metals Limited // Annual Report 45For personal use only Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to United States dollars.
Capital reserve
This reserve relates to the difference between the issued share price of US$0.067 per share and the exercise price of
US$0.0001 per share for the 50,000,000 ordinary shares amounting to US$3,331,620 for the tranche 1 and 2 to be issued in
connection to the transfer of 100% equity interest in Pan Asia M Metals (Thailand) Co, Ltd and its subsidiaries to the
Company, which occurred in the FY18 financial year.
A summary of the performance hurdles in respect of the consideration shares issued is shown below
Tranche
Conditions precedent and
status
Number
US$
US$
%
US$
Number of
shares
Exercise price
per share
Amount
payable upon
exercise
Probability of
achievement
Fair value
Tranche 1
Tranche 2
Upon the definition of a
mineral resource containing
aggregate 20,000t W03
(tungsten trioxide)
Status - not complete
Upon the definition of a
mineral resource containing in
aggregate 50,000t Li2O
(lithium oxide)
Status - not complete
25,000,000
0.0001
3,000
83%
1,665,810
25,000,000
0.0001
3,000
83%
1,665,810
50,000,000
0.0001
6,000
3,331,620
Warrants reserve
During the previous financial year the Company issued 59,701 share warrants at US$0.084 per share amounting to US$5,015
in consideration of services rendered. The share warrants are convertible into ordinary shares within three years from the
date of issue. The exercise price of the warrants shall be bench-marked against the relevant equity capital raising for which
the service fee is due and fixed as 125% of the price of a share in that equity capital raising. On 11 May 2020, the share
warrants were cancelled and 29,581 shares were issued for the original serviced rendered.
Note 11. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
46 Pan Asia Metals Limited // Annual ReportFor personal use only Note 12. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks. The consolidated entity's overall risk management
program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the consolidated entity. The consolidated entity uses different methods to measure different types of risk to
which it is exposed. These methods include sensitivity analysis in the case of foreign exchange risks.
Risk management is carried out by the Board of Directors ('the Board'). These policies include identification and analysis of
the risk exposure of the consolidated entity and appropriate procedures, controls and risk limits.
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
The consolidated entity has exposure to fluctuations between the US dollar and the Thai Baht.
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
Consolidated
Thai Bhat
Australian dollars
Assets
Liabilities
2020
US$
2019
US$
2020
US$
2019
US$
177,927
2,264,412
688,842
418,812
52,152
70,027
323,198
53,598
2,442,339
1,107,654
122,179
376,796
The consolidated entity has exposure to fluctuations between the US dollar, the Thai Baht and Australian dollars. If the US$
weakened /strengthened against the Thai Baht by 5% it would increase / decrease the net asset position of the
consolidated entity by approximately $7,000/$6,000 respectively (31 December 2019: $19,000/$17,000 respectively). If the
US$ weakened /strengthened against the Australian dollar by 5% it would increase / decrease the net asset position of the
consolidated entity by approximately $115000/$104,000 respectively (31 December 2019: $23,000/$20,000 respectively).
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity is not exposed to any significant interest rate risk.
Credit risk
The consolidated entity is not exposed to any significant credit risk.
Pan Asia Metals Limited // Annual Report 47For personal use only Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as
remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of
financial position.
Consolidated - 2020
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing - variable
Lease liability
Total non-derivatives
Consolidated - 2019
Non-derivatives
Non-interest bearing
Other payables
Total non-derivatives
1 year or less
US$
Between 1
and 2 years
US$
Between 2
and 5 years Over 5 years
US$
US$
Remaining
contractual
maturities
US$
11,819
361,562
-
-
27,639
401,020
29,188
29,188
-
-
-
-
-
-
-
-
11,819
361,562
56,827
430,208
1 year or less
US$
Between 1
and 2 years
US$
Between 2
and 5 years Over 5 years
US$
US$
Remaining
contractual
maturities
US$
63,338
63,338
-
-
-
-
-
-
63,338
63,338
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
48 Pan Asia Metals Limited // Annual ReportFor personal use only
Note 13. Auditors remuneration
Amounts paid to the auditor of the consolidated entity
Fee for the audit and review of the financial report
Other assurance services- Investigating accountants report.
Total audit fees
Note 14. Key management personnel disclosures
Directors
The following persons were directors of Pan Asia Metals Limited during the financial year:
Mr Paul Lock
Mr David Hobby
Mr David Docherty
Mr Thanasak Chanyapoon
Mr Ian B Mitchell
Mr Roger Jackson
Consolidated
2020
US$
2019
US$
18,340
8,000
9,000
1,000
26,340
10,000
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated
entity is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
2020
US$
2019
US$
315,313
26,148
67,500
248,414
11,457
-
408,961
259,871
Refer to note 17, which discloses other transactions with related parties.
Note 15. Contingent assets and liabilities
As at 31 December 2020 the consolidated entity did not have any contingent assets or liabilities (December 2019: NIL)
Note 16. Commitments
There are no commitments as at reporting date. (December 2019: NIL)
Pan Asia Metals Limited // Annual Report 49For personal use only
Note 17. Related party transactions
Parent entity
Pan Asia Metals Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 18.
Key management personnel
Disclosures relating to key management personnel are set out in note 14 and the remuneration report included in the
directors' report.
During the year, Mr. Mitchell was paid $32,577 (exclusive of GST) was paid to Ian. B Mitchell and Associates, a firm related to
Mr Mitchell, for the legal services in relation to the company's IPO and listing process.
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Current receivables:
Amount due from Director (P Lock)
Amount due from Director (D Hobby)
Consolidated
2020
US$
2019
US$
-
-
41,775
41,775
The receivable from the Directors were settlement against the Directors fee payable to them for the year.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
50 Pan Asia Metals Limited // Annual ReportFor personal use only Note 18. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 2:
Name
Principal place of business /
Country of incorporation
Pan Asia Metals (Thailand) Co. Ltd
Pan Asia Metals Pty Ltd
Pan Asia 1 Metals (Thailand) Co. Ltd*
Pan Asia 2 Metals (Thailand) Co. Ltd*
Pan Asia 3 Metals (Thailand) Co, Ltd*
Pan Asia 4 Metals (Thailand) Co. Ltd*
Siam Industrial Metal Company Limited*
Thai Mineral Ventures Company Limited*
Pan Asia Metals (Malaysia) Sdn Bhd
First Light Mandalay Mining & Metals Co. Ltd***
Mandalay Mining & Metals Pte Ltd**
Thailand
Australia
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
Malaysia
Myanmar
Singapore
*The entities are controlled by Pan Asia Metals (Thailand) Co. Ltd
Ownership interest
2019
2020
%
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
-
-
**On 23 January 2020, full ownership of these entities was transferred from a Director of the Company, Paul Lock, to the
Company. This acquisition did not have a material impact on the consolidated entity.
***This entity is controlled by Mandalay Mining & Metals Pte. Ltd
Note 19. Events after the reporting period
Subsequent to year end, on 15 January 2021 the Company mobilised its drilling rig to the Reung Kiet Lithium Project and on
17 January 2021 the Company collared its first hold at the Bang I Tum prospect at the Reung Kiet Lithium Project.
No other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly
affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in
future financial years.
Pan Asia Metals Limited // Annual Report 51For personal use only
Note 20. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(786,461)
(620,676)
Consolidated
2020
US$
2019
US$
Adjustments for:
Foreign exchange differences
Depreciation
Finance cost
Change in operating assets and liabilities:
Increase in prepayments
(Increase) / decrease in other receivables
(Decrease) / increase in other payables
Increase in employee benefits
(397)
29,544
157
(6,005)
93,185
310,041
6,911
5,510
3,103
-
(270)
24,461
(13,706)
10,629
Net cash used in operating activities
(353,025)
(590,949)
Note 21. Earnings per share
Consolidated
2020
US$
2019
US$
Loss after income tax attributable to the owners of Pan Asia Metals Limited
(786,461)
(620,676)
Weighted average number of ordinary shares used in calculating basic earnings per share
94,830,722
71,682,418
Weighted average number of ordinary shares used in calculating diluted earnings per share
94,830,722
71,682,418
Number
Number
Basic earnings per share
Diluted earnings per share
Accounting policy for earnings per share
Cents
Cents
(0.83)
(0.83)
(0.87)
(0.87)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Pan Asia Metals Limited, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
52 Pan Asia Metals Limited // Annual ReportFor personal use only Diluted earnings per share
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.
Note 22. Share-based payments
Share-based payments*
Consolidated
2020
US$
2019
US$
29,920
-
*These related to share issued to directors for settlement of director fees for period from January to June 2020.
Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
Pan Asia Metals Limited // Annual Report 53For personal use only Directors’ declaration
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001, the Singapore Companies Act, Chapter 50 (the Act), the Singapore Financial Reporting
Standards International (“SFRS(I)”), and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
31 December 2020 and of its performance for the financial year ended on that date; 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 directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Paul David Lock
Director
26 March 2021
54 Pan Asia Metals Limited // Annual ReportFor personal use only Pan Asia Metals Limited // 2020 Annual Report 21
Pan Asia Metals Limited // Annual Report 55For personal use only 22 Pan Asia Metals Limited // 2020 Annual Report
56 Pan Asia Metals Limited // Annual ReportFor personal use only Pan Asia Metals Limited // 2020 Annual Report 23
Pan Asia Metals Limited // Annual Report 57For personal use only 24 Pan Asia Metals Limited // 2020 Annual Report
58 Pan Asia Metals Limited // Annual ReportFor personal use only Shareholder
Information
The shareholder information set out below was applicable as at 23 March, 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
Ordinary shares
% of total
Number
of holders
shares
issued
3
76
133
295
94
-
0.21
0.96
9.25
89.58
601
100.00
39
0.08
Pan Asia Metals Limited // Annual Report 59For personal use only
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
MR PAUL DAVID LOCK
THAI GOLDFIELDS NL
METAL TIGER PLC
HOLICARL PTY LTD
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