Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
ABN 74 072 692 365
Annual Report - 30 June 2020
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Contents
30 June 2020
Corporate directory
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Peak Minerals Limited
Shareholder information
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1
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Corporate directory
30 June 2020
Directors
Ernest Thomas Eadie (Non-Executive Chairman)
David Leavy (Managing Director)
Robert Boston (Non-Executive Director)
Company secretary
Melanie Leydin
Registered office
Principal place of business
Share register
Auditor
Level 4, 96-100 Albert Road
South Melbourne VIC 3205
Level 4, 96-100 Albert Road
South Melbourne VIC 3205
Boardroom Limited
Level 12, 225 George Street
Sydney NSW 2000
Moyes Yong + Co
Suite 1301
Level 13, 115 Pitt Street
Sydney NSW 2000
Stock exchange listing
Peak Minerals Limited shares are listed on the Australian Securities Exchange (ASX
code: PUA)
Website
www.peakminerals.com.au/
2
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Peak Minerals Limited (referred to hereafter as the 'Company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 30 June 2020.
Directors
The following persons were directors of Peak Minerals Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Ernest Thomas Eadie - Non-Executive Chairman
David Leavy - Finance Director, appointed Managing Director on 24 December 2019
Robert Boston - Non-Executive Director
Martin McFarlane - Managing Director (resigned 24 December 2019)
Principal activities
During the financial year the principal continuing activities of the consolidated entity consisted of:
●
Marketing and seeking to close the transaction with Polar Sapphire. This process was terminated on the 30th of
September with the expiry of the acquisition agreement;
Review of the company’s strategic direction and subsequent focus on gold and base metal projects, including updating
analysis of the company's existing gold projects.
●
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
Overview
The transaction to acquire Polar Sapphire expired on 30th September 2019. While the board has a favourable view for the
outlook of the HPA market the decision to place the Yendon HPA project on hold and focus on the company’s Hill End gold
project and commenced a search for additional acquisitions.
The Yendon HPA project was kept on hold during the Polar acquisition process. Following the end of this process it was
decided that the best way to generate returns for shareholders was to focus on gold and base metal projects. The strategy
has 2 focuses:
●
Hill End Gold Project – the initial focus was to update the JORC Resource to the current 2012 guidelines based on the
current data. This was completed in May 2020 and has provided the Company with the basis upon which it can decide
on the most appropriate activities to maximise the value of the project for shareholders;
We will continue to review investment opportunities in gold and base metal projects that have the potential to be value
accretive.
●
The Yendon HPA project will be kept in good standing to provide optionality to the lithium battery market that is expected to
see extraordinary growth driven by the electric vehicle market.
Corporate
On 30 September 2019 the acquisition agreement with Polar Sapphire expired, requiring the Company to review its strategic
alternatives. The board took into account the outlook for many of the commodity markets and the key drivers behind each of
them. The global geopolitical uncertainties and investor demand made gold an obvious choice. The outlook for commodities
used in the electric vehicle revolution also have very favourable outlooks and so copper and nickel projects are of interest.
The sale process for the Hill End gold project was also terminated to allow a full review of the data to take place and its value
to be maximised.
3
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
On 24 December 2019, Pure Alumina’s Managing Director, Martin McFarlane, stepped down from his role with the company.
Mr McFarlane’s guidance of the company over the previous 2 years delivered a very successful PFS on the Yendon HPA
(High Purity Alumina) project and an opportunity to acquire a unique and significantly less capital intensive technology for
the production of HPA. While the PFS for Yendon was successful both technically and financially, the capital cost of
construction, commissioning and working capital for the HPA facility was a significant hurdle to its development, and, as
noted elsewhere in this report, this project has been placed on hold for the time being. The company would like to
acknowledge the significant contribution made by Mr McFarlane over his tenure.
Hill End and Hargraves Gold Project - overview
The Hill End and Hargraves gold projects have long history of mining and exploration. Hill End has been an active mining
centre since the 1850’s, when the first alluvial gold was found. Since then there has been numerous phases of mining.
A full review of the history, geology and potential was undertaken to identify the key controls on mineralisation to enable an
efficient and effective exploration strategy. The extensive history of gold mining in the area has provided a significant amount
of data and information to assist in identify opportunities.
The first stage of the review was the updating of the Hargraves resource. While the update resulted in fewer ounces, it also
provided a much higher level of confidence in the continuity of the deposit. It has also highlighted several areas for further
exploration that will potentially increase the size and/or confidence level in the resource.
Hargraves Project
The Hargraves project was the subject of several development studies by the Company over several years. These studies
were based on 2004 JORC compliant resource. In order to undertake further work on the project, the first step was to update
the existing Resource to JORC 2012 using the existing information.
4
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
The key outcomes of the 2020 Hargraves Mineral Resource estimate were:
●
●
●
●
The defined Mineral Resources represent a decrease in average grade, reported tonnes and contained metal relative
to the previously announced 2013 Mineral Resource estimate. This decrease is primarily attributable to the treatment
and sensitivity of the previous model to extreme grade samples.
Extreme grade samples have the potential to dramatically alter the modelled grade distribution and different approaches
have resulted in a lack of consistency between Mineral Resource estimates. The latest estimate better addresses the
impact of high-grade samples on the block grade distribution with grade thresholding.
SRK’s modelling demonstrated geostatistical predictability of Hargraves mineralisation up to 30g/t Au, while
acknowledging that high-grade mineralisation beyond this point has limited spatial continuity. The use of geostatistically-
derived parameters and ordinary kriging has resulted in a modelled grade distribution that closely honours the drill data.
Well-structured variograms were produced from untransformed assays. This calls into question the assertions that the
mineralisation is extremely 'high nugget'. In SRK’s experience, 'high nugget’ gold deposits such as Ballarat and Bendigo
often show no variogram structure whatsoever, even after unfolding or Gaussian transformation.
5
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Hill End Project
The Reward deposit at Hill End was the subject of a trial mining program from 2008-10, providing a lot of information on the
geology of the deposit. It is a quartz hosted orebody that has had 2 significant geological events impact gold mineralisation:
1. Folding of the volcano-sedimentary package and formation of the bedding parallel veins along the thrusts.
2. The second deformation event led to the tightening of the folds and formation of steeply dipping reverse faults which
were the fluid conduits for high grade gold. These faults form an en-echelon array.
Following a structural review of the geology with the benefit of the trial mining, the geological model was revised to take into
account the impact of the 2 major events. The key finding were that mineralisation is likely to be focused on:
1. The dilational zones at the tops of the fault strands, in which vein arrays and breccias formed with the second
mineralising event
2. Late fractures near the intersection of reverse faults with the laminated veins
This new understanding has provided a clear direction on an exploration plan for the project. In a quartz hosted, nuggety
orebody, the structural controls are fundamental in being able to develop a predictive geological model to guide the
exploration and drilling programs.
6
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Hill End and Hargraves Gold Project - planned activities
The planned activities over the short and medium term are:
Over the next 3 months, the Company will conduct the following activities in preparation for drilling:
●
●
●
A structural geology study to formalise the findings of the review process;
A review of the underground workings to ensure safety and accessibility for exploration and drilling;
Planning and approval process for drilling at both Reward and Hargraves.
Over the next 12-18 months, the aim is to undertake:
●
Drilling and exploration work to extend the mineralisation at both Hargraves and Hill End, which if successful will result
in upgraded resources;
Subject to the outcomes of the exploration program, commence studies on the best development pathway for Hargraves
and Hill End.
●
The Company is continuing to assess potential acquisitions to add value for shareholders. The focus is on gold, copper and
nickel exploration projects in Australia.
Resource Statement
*
Hargraves: 0.8 g/t reporting cut-off. ASX announcement 29 May 2020: https://www.asx.com.au/asxpdf/20200529/pdf/44j6vrzbnmmsm3.pdf
**
***
Red Hill: 0.5 g/t per block, ordinary kriging grade interpolation, classified Mineral Resources limited to 160mRL below surface. ASX announcement
30 Nov 2015: https://www.asx.com.au/asxpdf/20151130/pdf/433f59prb9x8km.pdf
Cut-off grades Hawkins Hill\Reward: 0.5 g/t and inverse distance squared grade interpolation. ASX announcement 13 Oct 2010:
https://www.asx.com.au/asxpdf/20101013/pdf/31t2q5df28qlgb.pdf . This information was prepared and first disclosed under the JORC Code 2004.
It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last
reported.
7
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Pursuant to ASX Listing Rule 5.23.2, Peak Minerals Limited confirms that it is not aware of any new information or data that
materially affects the information included in the relevant market announcements referred to in the Resource Tables above
and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters
underpinning the estimates in those market announcements continue to apply and have not materially changed.
High Purity Alumina Project
Figure 1: HPA Project location near Ballarat, Victoria
The Yendon HPA project has been placed on hold for the foreseeable future. While the project is technically and financially
very sound, there is currently no clear path to fund the capital cost. During the half year ended 31 December 2019, the
consolidated entity decided to surrender EL6447 (Pittong tenement) to reduce the project's holding costs. All of the remaining
resource for the Yendon HPA Project is located on EL5457, EL5461 and EL6428, so the project is not impacted by this
reduction on tenement holding.
A retention licence for the Resource area marked “RL6734” in Figure 1, above, was granted subsequent to 30 June 2020.
Financial performance
The loss for the consolidated entity after providing for income tax for the half year ended 30 June 2020 was $2,904,273 (30
June 2019: $6,426,182).
A significant amount of this loss was attributable to a loss of $1,402,398 (30 June 2020: $Nil) recognised in relation to the
consolidated entity's decision to surrender its kaolin tenement at Pittong, Victoria.
A significant amount of the loss for the comparative period ended 30 June 2019 was attributable to an impairment loss of
$4,279,171 recognised in relation to the consolidated entity's gold assets. That impairment was made following an
assessment at the time by the Board of the gold assets' fair value.
Other expenses for the current period were approximately $390,000, compared to $772,000 for the corresponding period.
The decrease in these expenses reflects lower holding and maintenance costs relating to the gold tenement
assets. Administration costs for the current period were approximately $1,319,000, compared to $1,573,000 for the
corresponding period. The decrease in these expenses mainly reflects share based payments expensed during the
comparative period,
8
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Financial position
The net assets of the consolidated entity reduced by $2,636,827 to $7,170,482 at 30 June 2020 (30 June 2019: $9,807,309)
primarily as a consequence of the loss after income tax for the period, which is also reflected in the reduction of its cash
balance.
Non-current assets related to the consolidated entity's gold projects with a value of $5,606,750 were re-classified from current
assets to non-current assets following the Company's decision to discontinue the proposed sale of those assets. Non-current
liabilities of $286,029 associated with those assets were similarly re-classified from current liabilities to non-current liabilities.
The reduction in the balance of the consolidated entity's High Purity Alumina project of approximately $1.4 million in the year
ended 30 June 2020 was due to the consolidated entity's decision to surrender its kaolin tenement at Pittong, Victoria.
The working capital position of the consolidated entity as at 30 June 2020 resulted in an excess of current assets over current
liabilities of $236,520, compared to $1,408,407 at 30 June 2019 (excluding the value of held for sale gold assets and
associated liabilities, which were re-classified from current to non-current following the Company's decision to discontinue
the proposed sale of those assets), with the reduction being due mainly to the reduction of the cash balance referred to
above.
Significant changes in the state of affairs
On 30 September 2019 the Company announced that the agreement to acquire Canadian private company Polar Sapphire
Limited (Polar Sapphire) would expire on that date, which terminated the proposed Polar Sapphire acquisition, and that the
Company would review its direction, including the future of the Hill End / Hargraves gold assets and the Yendon high purity
alumina project.
On 4 October 2019 the Company announced that it had terminated the sale process for its Hill End-Hargraves gold assets
and that it would review whether there was greater value for shareholders by retaining the gold project rather than divesting
it, given that, since the sale process commenced, the Australian-dollar gold price had increased by more than 30 per cent.
On 29 October 2019 the Company announced that it had completed a review of the strategic direction of the Company, with
the following outcomes:
●
●
in light of higher gold prices, the Company would refocus on gold projects, including: generating a gold resource
estimate at Hargraves, using predominantly existing information, that complied with current JORC reporting
requirements; contemplate updating historic economic studies for Hargraves; review the exploration potential for
Hargraves and Hill End; assess other gold assets; and
place the development of the Yendon high purity alumina project on hold until market conditions improved, or consider
alternative options for the future of the Yendon assets.
On 24 December 2019, the Company's Managing Director, Martin McFarlane, resigned. Executive Director Mr David Leavy
has been appointed as interim Managing Director.
On 29 May 2020, the Company issued 33,264,123 fully paid ordinary shares as first tranche of a share placement announced
on the same day. The shares were issued at an issue price of $0.009 per share.
On 29 May 2020, the Company also announced a rights issue and the second tranche of the share placement. The rights
issue and second tranche of the share placement were completed after 30 June 2020.
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
On 7 July 2020, the Company issued 97,855,414 fully paid ordinary shares at $0.009 per share in relation to the non-
renounceable rights issue (Entitlement Offer) announced on 29 May 2020.
Also on 7 July 2020, the Company issued 48,927,637 listed options in relation to the Entitlement Offer. The options are
exercisable at $0.025 and expire on 30 December 2022.
9
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
On 10 July 2020, the Company issued 55,159,554 fully paid ordinary shares at $0.009 per share in relation to the shortfall
shares under the Entitlement Offer.
Furthermore on 10 July 2020, the Company issued 27,579,777 listed options in relation to the shortfall shares under the
Entitlement Offer. The options are exercisable at $0.025 and expire on 30 December 2022.
On 3 August 2020, the Company issued 195 fully paid ordinary shares at $0.025 per share, on exercise of 195 listed options.
On 4 August 2020, the Company:
●
●
●
●
●
Issued 14,322,361 fully paid ordinary shares at $0.00001 per share, as consideration for services rendered by the Joint
Lead Managers and Underwriter to the Entitlement Offer;
Issued 16,632,061 listed options in relation to the tranche 1 shares issued from the placement announced on 29 May
2020 (Placement). The options are exercisable at $0.025 and expire on 30 December 2022;
Issued 40,000,000 fully paid ordinary shares in relation to tranche 2 of the Placement. The shares were issued at an
issue price of $0.009 per share;
Issued 20,000,000 listed options in relation to the tranche 2 shares issued from the Placement. The options are
exercisable at $0.025 and expire on 30 December 2022; and
Issued 50,000,000 listed options as consideration for services rendered by the Joint Lead Managers and Underwriter
to the Entitlement Offer. The options are exercisable at $0.025 and expire on 30 December 2022.
On 6 August 2020, the Company announced that it had changed its name from Pure Alumina Limited to Peak Minerals
Limited following approval by shareholders.
On 17 August 2020, the Company issued 20,000,000 unlisted options to directors as an incentive as approved by
shareholders on 31 July 2020. The options are exercisable at $0.0331 and expire on 30 December 2022.
On 17 August 2020, the Company issued 1,000,000 unlisted options to a contractor in recognition of services provided. The
options are exercisable at $0.0465 and expire on 30 December 2022.
On 1 September 2020, the Company issued 1,350 fully paid ordinary shares at $0.025 per share, on exercise of 1,350
PUAOD listed options.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact,
positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by
the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel
restrictions and any economic stimulus that may be provided.
No other matter or circumstance has arisen since 30 June 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.
Likely developments and expected results of operations
Information about likely developments is set out above in the "Review of Operations" section of this report.
10
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Environmental regulation
The Group’s New South Wales mineral tenements are issued by the Department of Primary Industry - Minerals (DPI) and
the Group operates under environmental licences and conditions issued by the DPI and the Environmental Protection
Authority. The conditions of these tenements and licences require the preparation of environmental reports, monitoring and
ongoing rehabilitation for exploration and mining activities. The Group has statutory obligations to protect the environment in
which it is exploring and operating.
Before commencing ground intrusive work or work involving the removal or damage of native vegetation within an Exploration
Licence in Victoria, each licence is subject to a rehabilitation bond to the satisfaction of the Minister. The licensee must also
notify the Earth Resources Regulation (ERR) Regional Manager and the Crown land Manager, if Crown land is involved, of
the nature of the proposed works, and obtain approvals for the proposed works to commence. All reasonable care must be
taken to avoid, minimize and/or offset the removal and disturbance of native vegetation and faunal habitats. Special
conditions, assessments and exclusions may also apply to Box-Ironbark regions to identify areas or sites to be avoided.
While environmental reports are not generally required where only low impact exploration activities are being undertaken (as
within the Victorian Exploration Licences) the licensee must operate under the Code of Practice For Mineral Exploration
(Mineral Resources (Sustainable Development) Act 1990) and be aware of, and manage, multiple potential issues that
may arise.
During the reporting period the Group met its obligations pursuant to environmental legislation. Directors are not aware of
any regulations or requirements that were not being complied with.
Information on directors
Name:
Title:
Experience and expertise:
Ernest Thomas Eadie
Non-Executive Chairman
Non-Executive Chairman appointed 3 July 2018. Geologist and mining executive with
over 20 years’ experience in the resources industry with many significant mineral
discoveries to his name. Former Executive Chairman of Copper Strike, founding
Chairman of Syrah Resources and previously Executive General Manager –
Exploration and Technology at Pasminco. Past board member of the Australasian
Institute of Mining and Metallurgy and the Australian Mineral Industry Research
Association.
Strandline Resources Limited (ASX: STA), Alderan Resources Limited (ASX: AL8)
Other current directorships:
Former directorships (last 3 years): New Century Resources Limited (resigned March 2019)
Interests in shares:
Interests in options:
10,689,017 fully paid ordinary shares
847,900 listed options
4,000,000 unlisted options
Name:
Title:
Qualifications:
Experience and expertise:
Martin McFarlane
Managing Director (resigned 24 December 2019)
B.Eng., B.Bus
Mr McFarlane has more than 25 years resources experience with major resource
companies including Minerals and Metals Group, OZ Minerals Limited, Zinifex Limited,
Pasminco Limited and Conzinc Rio Tinto of Australia including successfully holding
senior roles for the past 13 years either as CEO / President of the company or being
responsible for major business units reporting directly to the CEO.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
1,683,526 fully paid ordinary shares (as at date of resignation)
None
11
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Name:
Title:
Qualifications:
Experience and expertise:
David Leavy
Finance Director, appointed Managing Director on 24 December 2019
B.Ec., M. App. Fin
Mr Leavy has over 25 years of experience in the banking and mining industries covering
a wide range of commodities. He has significant experience in debt and equity
markets, physical and derivative commodity markets, specifically in gold, bauxite, iron
ore, base metals, oil and LNG. Recent roles have included CFO of several mining
companies undergoing project development, requiring implementation of appropriate
business processes, government negotiations, team establishment, logistics etc. in
Australia, Ghana, Guinea and Sierra Leone. Prior to this Mr Leavy held a number of
roles at Westpac through financial markets (FX and commodity derivatives), project
finance, relationship management, credit analysis and capital solutions. A significant
focus for these roles was on the Mining and Oil & Gas sectors.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
2,877,641 fully paid ordinary shares
539,557 listed options
8,000,000 unlisted options
Name:
Title:
Qualifications:
Experience and expertise:
Robert Boston
Non-Executive Director
B.Comm, B.LLB, Grad Dip App.Fin, Dip Man
Mr Boston has more than 15 years experience in the mining industry. An experienced
resources executive, having held positions in legal, business development, strategy,
marketing and commercial roles with in BHP Billiton Limited, Rio Tinto Limited and
Poseidon Nickel Limited and continues to advise a number of junior resources
companies. Mr Boston has multi commodity expertise in exploration, early stage
resource development, M&A, joint ventures and marketing. Prior to this Mr Boston
worked for national law firms Freehills and Mallesons Stephen Jaques in their
Corporate, Projects and Finance areas and is admitted to the Supreme Court of
Western Australia and High Court of Australia.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
1,333,641 fully paid ordinary shares
250,057 listed options
8,000,000 unlisted options
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Ms Melanie Leydin, BBus (Acc. Corp Law) CA FGIA
Melanie Leydin holds a Bachelor of Business majoring in Accounting and Corporate Law. She is a member of the Institute
of Chartered Accountants, Fellow of the Governance Institute of Australia and is a Registered Company Auditor. She
graduated from Swinburne University in 1997, became a Chartered Accountant in 1999 and since February 2000 has been
the principal of Leydin Freyer. The practice provides outsourced company secretarial and accounting services to public and
private companies across a host of industries including but not limited to the Resources, technology, bioscience,
biotechnology and health sectors.
Melanie has over 25 years’ experience in the accounting profession and over 15 years as a Company Secretary. She has
extensive experience in relation to public company responsibilities, including ASX and ASIC compliance, control and
implementation of corporate governance, statutory financial reporting, reorganisation of Companies and shareholder
relations.
12
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2020, and
the number of meetings attended by each director were:
Ernest Thomas Eadie
Martin McFarlane
David Leavy
Robert Boston
Full Board
Attended
Held
17
11
17
17
17
11
17
17
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 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
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high quality personnel.
The Board has structured an executive remuneration framework that is market competitive and complementary to the reward
strategy of the consolidated entity.
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
13
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
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. 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 maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by
shareholders at the Annual General Meeting (currently $250,000). Fees for non-executive directors are not linked to the
performance of the Group.
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
Board based on individual and business unit performance, the overall performance of the consolidated entity and comparable
market remunerations.
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.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product
management.
The long-term incentives ('LTI') include long service leave and share-based payments. Shares are awarded to executives
over a period of three years based on long-term incentive measures. These include increase in shareholders value relative
to the entire market and the increase compared to the consolidated entity's direct competitors.
Consolidated entity performance and link to remuneration
Remuneration is not directly linked to the performance of the consolidated entity.
Voting and comments made at the Company's 29 November 2019 Annual General Meeting ('AGM')
At the 29 November 2019 AGM, 77.46% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2019. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
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.
14
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
The key management personnel of the consolidated entity consisted of the following directors of Peak Minerals Limited:
●
●
●
●
Ernest Thomas Eadie
Martin McFarlane (resigned 24 December 2019)
David Leavy
Robert Boston
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
30 June 2020
$
$
$
$
Cash salary
and fees payment monetary annuation
Termination
Super-
Non-
Long
service
leave
$
Equity-
settled
$
Total
$
Non-Executive Directors:
Ernest Thomas Eadie
Robert Boston
Executive Directors:
Martin McFarlane
David Leavy
30 June 2019
Non-Executive Directors:
Ernest Thomas Eadie
Robert Boston
Graham Charles Reveleigh
Executive Directors:
Martin McFarlane
David Leavy
60,000
40,000
-
-
121,227
204,000
425,227
212,978
-
212,978
-
-
-
-
-
5,700
3,800
-
-
10,501
19,572
39,573
-
2,545
2,545
-
-
-
-
-
65,700
43,800
344,706
226,117
680,323
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
60,000
40,000
13,333
252,000
204,000
569,333
-
-
-
-
-
-
-
-
-
-
-
-
5,700
3,800
1,267
-
-
-
-
24,000
24,000
65,700
67,800
38,600
25,018
19,380
55,165
4,589
3,715
8,304
60,000
60,000
168,000
341,607
287,095
800,802
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Ernest Thomas Eadie
Robert Boston
Graham Charles Reveleigh
Executive Directors:
Martin McFarlane
David Leavy
Fixed remuneration
At risk - STI
30 June 2020 30 June 2019 30 June 2020 30 June 2019 30 June 2020 30 June 2019
At risk - LTI
-
-
-
-
-
-
35%
62%
18%
21%
-
-
-
-
-
-
-
-
-
-
100%
100%
-
100%
100%
100%
65%
38%
82%
79%
15
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
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:
Term of agreement:
Details:
David Leavy
Finance Director (appointed Managing Director on 24 December 2019)
1 January 2018
No fixed term
Mr Leavy's base salary is $204,000. Contributions to a complying superannuation fund
will be made at the prevailing Superannuation Guarantee levy rate (currently 9.5%) up
to the quarterly maximum salary cap.
The following termination provisions apply:
- the Company or Mr Leavy may terminate the agreement by giving three months'
written notice;
- if the Company terminates the agreement without notice for any reason other than
serious misconduct a severance payment of 9 months current base salary will be
payable;
- in the case of redundancy the National Employment Standards will apply.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2020.
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 30 June 2020.
Additional disclosures relating to key management personnel
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:
Disposals/
other*
Balance at
the end of
the year
-
-
-
-
-
(1,683,526)
-
-
-
-
1,798,526
8,993,217
833,526
(1,683,526) 11,625,269
Balance at Received
as part of
the start of
the year
remuneration Additions
Ordinary shares
Martin McFarlane
David Leavy
Ernest Thomas Eadie
Robert Boston
1,683,526
1,798,526
8,993,217
833,526
13,308,795
-
-
-
-
-
*
Mr McFarlane resigned on 24 December 2019.
16
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
Option holding
The number of options over ordinary 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:
Options over ordinary shares
Ernest Thomas Eadie
Balance at
the start of
the year
Granted
200,000
200,000
Exercised
-
-
-
-
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
200,000
200,000
Other transactions with key management personnel and their related parties
Refer to note 26 for details of other transactions with key management personnel and their related parties.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Peak Minerals Limited under option at the date of this report are as follows:
Grant date
7 July 2020
10 July 2020
4 August 2020
17 August 2020
18 August 2020
Expiry date
30 December 2022
30 December 2022
30 December 2022
30 December 2022
30 December 2022
Exercise
price
Number
under option
$0.025
$0.025
$0.025
$0.033
$0.046
48,927,637
27,579,777
86,632,061
20,000,000
1,000,000
184,139,475
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of Peak Minerals Limited were issued during the year ended 30 June 2020 and up to the date
of this report on the exercise of options granted:
Date options granted
7 July 2020
Exercise
price
Number of
shares issued
$0.025
1,545
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.
17
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' report
30 June 2020
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
There were no non-audit services provided during the financial year by the auditor.
Officers of the Company who are former partners of Moyes Yong & Co
There are no officers of the Company who are former partners of Moyes Yong & Co.
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
Moyes Yong & Co continues in office in accordance with section 327 of the Corporations Act 2001.
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
___________________________
Tom Eadie
Chairman
18 September 2020
18
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Other revenue
Interest revenue
Other expenses
Impairment of assets
Loss on surrender of tenement
Administration
Finance costs
Loss before income tax expense
Income tax expense
Consolidated
Note 30 June 2020 30 June 2019
$
$
5
6
10
14
201,843
5,879
187,746
10,044
(389,549)
-
(1,402,398)
(1,318,631)
(1,417)
(772,211)
(4,279,171)
-
(1,572,590)
-
(2,904,273)
(6,426,182)
7
-
-
Loss after income tax expense for the year attributable to the owners of Peak
Minerals Limited
(2,904,273)
(6,426,182)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive income for the year attributable to the owners of Peak
Minerals Limited
Basic earnings per share
Diluted earnings per share
(2,904,273)
(6,426,182)
Dollars
Dollars
34
34
(1.29)
(1.29)
(3.85)
(3.85)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
20
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Statement of financial position
As at 30 June 2020
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Non-current assets classified as held for sale
Total current assets
Non-current assets
Other financial assets
Property, 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
Liabilities directly associated with assets classified as held for sale
Total current liabilities
Non-current liabilities
Lease liabilities
Employee benefits
Other provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note 30 June 2020 30 June 2019
$
$
8
9
10
11
12
13
14
15
16
17
18
19
20
21
484,659
49,724
534,383
-
534,383
1,359,551
313,548
1,673,099
5,606,750
7,279,849
636,750
145,892
102,132
6,437,123
7,321,897
30,000
815
-
3,055,670
3,086,485
7,856,280 10,366,334
238,887
28,227
30,749
297,863
-
297,863
74,294
6,261
307,380
387,935
221,028
-
43,664
264,692
286,029
550,721
-
8,304
-
8,304
685,798
559,025
7,170,482
9,807,309
22
84,940,191 84,672,745
200,848
(75,066,284)
200,848
(77,970,557)
7,170,482
9,807,309
The above statement of financial position should be read in conjunction with the accompanying notes
21
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Statement of changes in equity
For the year ended 30 June 2020
Consolidated
Balance at 1 July 2018
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:
Options issued during the year
Shares issued during the year
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
81,578,502
85,348
(68,640,102) 13,023,748
-
-
-
-
-
-
(6,426,182)
-
(6,426,182)
-
(6,426,182)
(6,426,182)
-
3,094,243
115,500
-
-
-
115,500
3,094,243
Balance at 30 June 2019
84,672,745
200,848
(75,066,284)
9,807,309
Consolidated
Balance at 1 July 2019
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
84,672,745
200,848
(75,066,284)
9,807,309
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:
Shares issued during the year
267,446
-
-
-
-
(2,904,273)
-
(2,904,273)
-
(2,904,273)
(2,904,273)
-
267,446
Balance at 30 June 2020
84,940,191
200,848
(77,970,557)
7,170,482
The above statement of changes in equity should be read in conjunction with the accompanying notes
22
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Statement of cash flows
For the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Other revenue
Interest and other finance costs paid
R&D tax incentive
Consolidated
Note 30 June 2020 30 June 2019
$
$
(1,650,826)
5,879
40,535
(1,417)
234,229
(2,156,247)
10,044
8,195
-
488,159
Net cash used in operating activities
33
(1,371,600)
(1,649,849)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Proceeds from disposal of property
12
14
-
(32,209)
290,000
(978)
(206,285)
-
Net cash from/(used in) investing activities
257,791
(207,263)
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Repayment of lease liabilities
Net cash from financing activities
22
299,377
(31,931)
(28,529)
1,753,178
(141,437)
-
238,917
1,611,741
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
(874,892)
1,359,551
(245,371)
1,604,922
Cash and cash equivalents at the end of the financial year
8
484,659
1,359,551
The above statement of cash flows should be read in conjunction with the accompanying notes
23
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 1. General information
The financial statements cover Peak Minerals Limited as a consolidated entity consisting of Peak Minerals Limited and the
entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is
Peak Minerals Limited's functional and presentation currency.
Peak Minerals Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 4, 96 - 100 Albert Road
South Melbourne, VIC, 3205
AUSTRALIA
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 30 September 2020. 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
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the consolidated entity.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees
eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the
operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the
statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments
are separately disclosed in financing activities.
●
●
●
●
●
right of use assets of $38,557 were recognised upon adoption;
lease liabilities of $38,557 were recognised upon adoption;
there was no amendment to opening accumulated losses upon adoption;
during the year ended 30 June 2020, lease payments of $29,946 were allocated to lease liability payments ($28,529)
and interest expense ($1,417);
during the year ended 30 June 2020, right of use assets depreciation of $28,917 was recognised.
24
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Operating lease commitments as at 1 July 2019 (AASB 117)
Operating lease commitments discount based on the weighted average incremental borrowing rate of 5.5%
(AASB 16)
Lease liabilities - current (AASB 16)
Lease liabilities - non-current (AASB 16)
Impact on opening accumulated losses as at 1 July 2019
Consolidated
31 June 2020
40,089
(1,532)
38,557
(28,529)
(10,028)
(38,557)
-
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.
Going concern
The financial report has been prepared on the going concern basis, which contemplates continuity of normal business
activities and realisation of assets and liabilities in the ordinary course of business. The going concern of the consolidated
entity is dependent upon it maintaining sufficient funds for its operations and commitments.
The cash balance as at 30 June 2020 was $484,659 (30 June 2019: $1,359,551).
The consolidated entity made a loss after tax of $2,904,273 during the year ended 30 June 2020 (30 June 2019: loss of
$6,426,182) and the net cash used in operating activities was $1,371,600 (30 June 2019: $1,649,849 net outflow).
25
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Notwithstanding these results, the directors believe that the company will be able to continue as a going concern and as a
result the financial statements have been prepared on a going concern basis. The accounts have been prepared on the
assumption that the company is a going concern for the following reasons:
●
During July – August 2020 the Company completed a capital raising, with cash proceeds of approximately $1.7 million,
which is expected to be sufficient to fund the consolidated entity’s activities for at least 12 months from the date of these
financial statements;
the ability of the consolidated entity to scale back parts of its operations and reduce costs if required;
the Board is of the opinion that the consolidated entity has, or shall have access to, sufficient funds to meet the planned
corporate activities and working capital requirements; and
as the Company is an ASX-listed entity, the consolidated entity has the ability to raise additional funds if required.
●
●
●
In the event that the Group is unable to achieve the actions noted above, the Group may not be able to continue as a going
concern, it may be required to realise its assets at amounts different to those currently recognised, settle liabilities other than
in the ordinary course of business and make provisions for other costs which may arise as a result of cessation or curtailment
of normal business operations.
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, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
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 Peak Minerals Limited
('Company' or 'parent entity') as at 30 June 2020 and the results of all subsidiaries for the year then ended. Peak Minerals
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
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.
26
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
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.
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity:
identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price
which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to
the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to
be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject
to the constraining principle are recognised as a refund liability.
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.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
●
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
27
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
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.
Investments and other financial assets
Financial assets at amortised cost
A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business
model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial
asset represent contractual cash flows that are solely payments of principal and interest.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST 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 GST receivable or payable. The net amount of GST
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 GST 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 GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020. The consolidated
entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the
consolidated entity, are set out below.
28
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and early
adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new guidance
on measurement that affects several Accounting Standards. Where the consolidated entity has relied on the existing
framework in determining its accounting policies for transactions, events or conditions that are not otherwise dealt with under
the Australian Accounting Standards, the consolidated entity may need to review such policies under the revised framework.
At this time, the application of the Conceptual Framework is not expected to have a material impact on the consolidated
entity's financial statements.
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.
Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to
impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Calculations
used to assess recoverable amounts incorporate a number of key estimates.
It is reasonably possible that the underlying metal price assumption may change which may then impact the estimated life
of mine determinant and may then require a material adjustment to the carrying value of mining plant and equipment, mining
infrastructure and mining development assets. Furthermore, the expected future cash flows used to determine the value-in-
use of these assets are inherently uncertain and could materially change over time. They are significantly affected by a
number of factors including reserves and production estimates, together with economic factors such as metal spot prices,
discount rates, estimates of costs to produce reserves and future capital expenditure.
Estimates of reserve quantities
The estimated quantities of proved and probable reserves reported by the Group are integral to the calculation of amortisation
expenses and to assessments of possible impairment of assets. Estimated reserve quantities are based on interpretations
of geological and geophysical models and assessments of the technical feasibility and commercial viability of producing the
reserves. These assessments require assumptions to be made regarding future development and production costs. The
estimates of reserves may change from period to period as the economic assumptions used to estimate the reserves can
change from period to period, and as additional geological data is generated during the course of the operations.
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.
29
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 3. Critical accounting judgements, estimates and assumptions (continued)
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 products and services
offered, customers, 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.
Note 4. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into one operating segment, being mineral exploration and evaluation operations. This
operating segment is based on 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 the allocation of resources.
The CODM reviews expenditure reports on exploration projects. The accounting policies adopted for internal reporting to the
CODM are consistent with those adopted in the financial statements.
The information is reported to the CODM on a monthly basis.
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Note 5. Other revenue
Research and development tax incentive
Profit on sales of assets
Government assistance – Covid-19 related
Other
Other revenue
Note 6. Other expenses
Depreciation
Hill End site expenses
HPA project expenses
30
Consolidated
30 June 2020 30 June 2019
$
$
164,243
-
37,065
535
176,241
3,310
-
8,195
201,843
187,746
Consolidated
30 June 2020 30 June 2019
$
$
62,212
311,394
15,943
41,877
317,883
412,451
389,549
772,211
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 7. 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 27.5%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Entertainment expenses
Share-based payments
R&D tax incentive received
Non-taxable Government grants received
Non-deductible loss on disposal of assets
Deduction for equity raising costs recorded in equity
Current year tax losses not recognised
Current year temporary differences not recognised
Income tax expense
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5%
Consolidated
30 June 2020 30 June 2019
$
$
(2,904,273)
(6,426,182)
(798,675)
(1,767,200)
-
-
(45,167)
(10,193)
4,509
(38,410)
273
54,450
(48,466)
-
-
(38,921)
(887,936)
499,023
388,913
(1,799,864)
639,694
1,160,170
-
-
Consolidated
30 June 2020 30 June 2019
$
$
65,676,855 64,590,161
18,061,135 17,762,294
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses
can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Non deductible amounts as temporary differences
Capital raising costs
Accelerated deductions for book compared to tax
Total deferred tax assets not recognised
Consolidated
30 June 2020 30 June 2019
$
$
123,436
106,259
1,858,081
104,217
119,868
1,686,513
2,087,776
1,910,598
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in
the statement of financial position as the recovery of this benefit is uncertain.
31
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 8. Current assets - cash and cash equivalents
Cash at bank
Consolidated
30 June 2020 30 June 2019
$
$
484,659
1,359,551
Accounting policy for cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents included cash on hand and at call deposits with
banks or financial institutions, investments in money market instruments maturing within less than two months and net of
bank overdrafts.
Note 9. Current assets - trade and other receivables
Other receivables
Prepayments
Consolidated
30 June 2020 30 June 2019
$
$
31,015
18,709
313,548
-
49,724
313,548
Prior year other receivables included $290,000 owing in relation to proceeds from the sale of a property during May 2019.
This amount was fully received in July 2019.
Accounting policy for trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Impairment
Allowances for impairment are recognised using an 'expected credit loss' ('ECL') model. Impairment is measured using a 12-
month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which
case the lifetime ECL method is adopted.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written
off by reducing the carrying amount directly.
Note 10. Current assets - non-current assets classified as held for sale
Exploration property - gold assets
Performance guarantee bonds
Exploration property - plant & equipment
Exploration property - real property
32
Consolidated
30 June 2020 30 June 2019
$
$
-
-
-
-
4,821,628
606,750
63,764
114,608
-
5,606,750
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 10. Current assets - non-current assets classified as held for sale (continued)
During the year ended 30 June 2019 the Company undertook a formal sale process for the Company's gold tenements at
Hill End, New South Wales and Hargraves, New South Wales ("gold assets"). The formal sale process remained in progress
at 30 June 2019 and the gold assets were at that time classified as current assets.
During the year ended 30 June 2019 the Company reviewed the carrying value of the gold assets and reassessed their fair
value less costs to sell as $5,000,000. Accordingly, an impairment loss of $4,279,171 was recognised in relation to those
assets during the year ended 30 June 2019.
During the year ended 30 June 2020 the Company terminated the sale process for the gold assets as part of a strategic
corporate review. As a result these assets were re-classified as non-current assets at 30 June 2020.
Non-current assets or disposal groups classified as held for sale
Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying
amount and fair value less costs of disposal. For non-current assets or assets of disposal groups to be classified as held for
sale, they must be available for immediate sale in their present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the non-current assets and assets of disposal
groups to fair value less costs of disposal. A gain is recognised for any subsequent increases in fair value less costs of
disposal of a non-current assets and assets of disposal groups, but not in excess of any cumulative impairment loss
previously recognised.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses
attributable to the liabilities of assets held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of disposal groups classified as held for sale are presented
separately on the face of the statement of financial position, in current assets. The liabilities of disposal groups classified as
held for sale are presented separately on the face of the statement of financial position, in current liabilities.
Note 11. Non-current assets - other financial assets
Performance guarantee bonds (HPA assets)
Performance guarantee bonds (gold assets)
Consolidated
30 June 2020 30 June 2019
$
$
30,000
606,750
30,000
-
636,750
30,000
During the year ended 30 June 2019 the Company was undertaking a formal sale process for the Company's gold tenements
at Hill End, New South Wales and Hargraves, New South Wales ("gold assets"). The formal sale process remained in
progress at 30 June 2019 and the gold assets were at that time classified as current assets.
During the year ended 30 June 2020 the Company terminated the sale process for the gold assets as part of a strategic
corporate review. As a result, property, plant and equipment previously included in gold assets have been re-classified during
this period, and remain classified as non-current other financial assets at 30 June 2020.
33
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 12. Non-current assets - property, plant and equipment
Real Property - at cost
Less: Reallocation to available-for-sale assets
Plant and equipment - at cost
Less: Accumulated depreciation
Less: Reallocation to available-for-sale assets
Motor vehicles - at cost
Less: Accumulated depreciation
Less: Reallocation to available-for-sale assets
Consolidated
30 June 2020 30 June 2019
$
$
114,608
-
114,608
114,608
(114,608)
-
2,129,352
(2,098,885)
-
30,467
2,129,352
(2,065,590)
(62,947)
815
46,783
(45,966)
-
817
46,783
(45,966)
(817)
-
145,892
815
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 July 2018
Additions
Disposals
Transfers in/(out)
Depreciation expense
Balance at 30 June 2019
Transfers in/(out)
Depreciation expense
Balance at 30 June 2020
Real Property
$
Plant &
equipment
$
Motor
vehicles
$
388,798
-
(274,190)
(114,608)
-
-
114,608
-
99,229
978
-
(62,947)
(36,445)
815
62,947
(33,295)
6,250
-
-
(817)
(5,433)
-
817
-
Total
$
494,277
978
(274,190)
(178,372)
(41,878)
815
178,372
(33,295)
114,608
30,467
817
145,892
During the year ended 30 June 2019 the Company was undertaking a formal sale process for the Company's gold tenements
at Hill End, New South Wales and Hargraves, New South Wales ("gold assets"). The formal sale process remained in
progress at 30 June 2019 and the gold assets were at that time classified as current assets.
During the year ended 30 June 2020 the Company terminated the sale process for the gold assets as part of a strategic
corporate review. As a result, property, plant and equipment previously included in gold assets have been re-classified during
this period, and remain classified as non-current property, plant and equipment assets at 30 June 2020.
Accounting policy for property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such cost
includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred. Similarly,
when each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a
replacement only if it is eligible for capitalisation.
34
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 12. Non-current assets - property, plant and equipment (continued)
Plant and equipment
Office furniture and equipment
Motor vehicles
4 - 5 years
3 - 4 years
3 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date with the recoverable amount
being estimated when events or changes in circumstances indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash flows, recoverable amount is determined for the cash-
generating unit to which the asset belongs, unless the asset's value in use can be estimated to be close to its fair value.
An impairment exists when the carrying amount of an asset or cash-generating units exceeds its estimated recoverable
amount. The asset or cash- generating unit is then written down to its recoverable amount. For plant and equipment,
impairment losses are recognised in the income statement.
Note 13. Non-current assets - right-of-use assets
Land and buildings - right-of-use
Less: Accumulated depreciation
Consolidated
30 June 2020 30 June 2019
$
$
131,049
(28,917)
102,132
-
-
-
Additions to the right-of-use assets during the year were $131,049.
The consolidated entity leases land and buildings for its office and depot facilities under an agreement approximately 3 years.
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 July 2018
Balance at 30 June 2019
Additions
Depreciation expense
Balance at 30 June 2020
35
Land and
buildings
$
-
-
131,049
(28,917)
102,132
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 13. Non-current assets - right-of-use assets (continued)
Accounting policy for 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.
Note 14. Non-current assets - exploration and evaluation
Exploration and evaluation - Gold assets - at cost
Less: Impairment
Less: Reallocation to available-for-sale assets
Exploration and evaluation - Yendon Alumina project - at cost
Consolidated
30 June 2020 30 June 2019
$
$
39,920,143 39,920,143
(35,098,515)
(4,821,628)
-
(35,098,515)
-
4,821,628
1,615,495
3,055,670
6,437,123
3,055,670
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 July 2018
Additions
R&D tax incentive offset
Balance at 30 June 2019
Additions
Re-classified from held-for-sale assets
Write off tenement costs on surrender of tenement
R&D tax incentive offset
High Purity
Alumina
project
$
Gold
tenements
$
Total
$
3,161,303
206,285
(311,918)
3,055,670
32,209
-
(1,402,398)
(69,986)
-
-
-
3,161,303
206,285
(311,918)
-
-
4,821,628
-
-
3,055,670
32,209
4,821,628
(1,402,398)
(69,986)
Balance at 30 June 2020
1,615,495
4,821,628
6,437,123
During the year ended 30 June 2019 the Company was undertaking a formal sale process for the Company's gold tenements
at Hill End, New South Wales and Hargraves, New South Wales ("gold assets"). The formal sale process remained in
progress at 30 June 2019 and the gold assets were at that time classified as current assets.
During the year ended 30 June 2020 the Company terminated the sale process for the gold assets as part of a strategic
corporate review. As a result these assets were re-classified as non-current assets at 30 June 2020.
36
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 14. Non-current assets - exploration and evaluation (continued)
During the year ended 30 June 2020 the consolidated entity made the decision to surrender its tenement at Pittong, Victoria,
which formed part of the High Purity Alumina project. Accordingly, the costs attributable to that tenement have been written
off and a loss of $1,402,398 (30 June 2019: $Nil) has been recognised in relation to the surrender of the tenement.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs
are only carried forward to the extent that they are expected to be recouped through the successful development of an area
or where activities in the area have not yet reached a stage, which permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profits in the year which the decision to
abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs
in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from where exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structure, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have
been determined using estimates of future costs, current legal requirements and technology and discounted by the Group’s
cost of capital to the present value.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration,
there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.
Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of
abandoning the site.
Exploration and evaluation assets are tested for impairment each year. When the facts and circumstances suggest that the
carrying amount exceeds the recoverable amount, the carrying amount is written down to its likely recoverable amount.
The recoverability of the carrying amount is dependent on successful development and commercialisation or alternatively
sale of the respective areas of interest.
Note 15. Current liabilities - trade and other payables
Trade payables
Other payables
Consolidated
30 June 2020 30 June 2019
$
$
225,165
13,722
221,028
-
238,887
221,028
Refer to note 23 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.
37
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 16. Current liabilities - lease liabilities
Lease liability
Refer to note 23 for further information on financial instruments.
Note 17. Current liabilities - employee benefits
Annual leave
Accounting policy for employee benefits
Consolidated
30 June 2020 30 June 2019
$
$
28,227
-
Consolidated
30 June 2020 30 June 2019
$
$
30,749
43,664
Short-term employee benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to balance
date. Employee benefits that are expected to be settled within 12 months have been measured at the amounts expected to
be paid when the liability is settled, plus related on-costs.
Employee benefits payable later than 12 months have been measured at the present value of the estimated future cash
outflows to be made for those benefits.
Note 18. Current liabilities - liabilities directly associated with assets classified as held for sale
Provision for site rehabilitation
Consolidated
30 June 2020 30 June 2019
$
$
-
286,029
Refer to note 10 for accounting policy on liabilities directly associated with assets classified as held for sale.
During the year ended 30 June 2019 the Company was undertaking a formal sale process for the Company's gold tenements
at Hill End, New South Wales and Hargraves, New South Wales ("gold assets"). The formal sale process remained in
progress at 30 June 2019 and the gold assets were at that time classified as current assets. Accordingly, the Provision for
site rehabilitation relating to the gold assets was classified as a current liability at that time.
During the year ended 30 June 2020 the Company terminated the sale process for the gold assets as part of a strategic
corporate review. As a result, those assets were re-classified as non-current assets at 30 June 2020 and, accordingly, the
Provision for site rehabilitation relating to the gold assets has been re-classified as a non-current liability at 30 June 2020.
Note 19. Non-current liabilities - lease liabilities
Lease liability
Consolidated
30 June 2020 30 June 2019
$
$
74,294
-
38
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 19. Non-current liabilities - lease liabilities (continued)
Refer to note 23 for further information on financial instruments.
Accounting policy for 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.
Note 20. Non-current liabilities - employee benefits
Long service leave
Consolidated
30 June 2020 30 June 2019
$
$
6,261
8,304
Accounting policy for other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Note 21. Non-current liabilities - other provisions
Provision for site rehabilitation
Consolidated
30 June 2020 30 June 2019
$
$
307,380
-
During the year ended 30 June 2019 the Company was undertaking a formal sale process for the Company's gold tenements
at Hill End, New South Wales and Hargraves, New South Wales ("gold assets"). The formal sale process remained in
progress at 30 June 2019 and the gold assets were at that time classified as current assets. Accordingly, the Provision for
site rehabilitation relating to the gold assets was classified as a current liability at that time.
During the year ended 30 June 2020 the Company terminated the sale process for the gold assets as part of a strategic
corporate review. As a result, those assets were re-classified as non-current assets at 30 June 2020 and, accordingly, the
Provision for site rehabilitation relating to the gold assets has been re-classified as a non-current liability at 30 June 2020.
39
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 22. Equity - issued capital
Consolidated
30 June 2020 30 June 2019 30 June 2020 30 June 2019
Shares
Shares
$
$
Ordinary shares - fully paid
255,024,947 221,760,824 84,940,191 84,672,745
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
Shares issue to HPA vendor
Share issue to directors and consultants
Shares issue to HPA vendors
Share purchase plan
Top up placement
Cost of share issues
Balance
Shares issue through placement
Cost of share issues
1 July 2018
23 October 2018
23 October 2018
13 November 2018
30 May 2019
12 June 2019
30 June 2019
29 May 2020
147,790,933
6,000,000
3,300,000
14,000,000
38,913,244
11,756,647
-
221,760,824
33,264,123
-
81,578,502
420,000
198,000
980,000
1,346,398
406,780
(256,935)
$0.070
$0.060
$0.070
$0.034
$0.034
$0.000
84,672,745
299,377
(31,931)
$0.009
$0.000
Balance
30 June 2020
255,024,947
84,940,191
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.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the financial
year.
The capital risk management policy remains unchanged from the 2019 Annual Report.
40
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 22. Equity - issued capital (continued)
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 23. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. 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 derivative financial instruments such as forward foreign exchange
contracts to hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading or other
speculative instruments. 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 interest rate, foreign exchange and other price risks,
ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.
Risk management is carried out by senior finance executives ('finance') under policies approved 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. Finance identifies, evaluates and hedges financial risks within the consolidated entity's
operating units. Finance reports to the Board on a monthly basis.
The consolidated entity's financial instruments as at year end are as follows:
Financial assets
Cash at bank
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Lease liabilities
Total financial liabilities
Market risk
Consolidated
30 June 2020 30 June 2019
$
$
484,659
49,724
534,383
1,359,551
313,548
1,673,099
238,887
102,521
341,408
221,028
-
221,028
The consolidated entity is not exposed to any significant market risk.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity does not hold any collateral.
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.
41
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 23. Financial instruments (continued)
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 - 30 June 2020
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing - fixed rate
Lease liability
Total non-derivatives
Consolidated - 30 June 2019
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
225,165
13,722
-
-
-
-
5.50%
31,443
270,330
33,015
33,015
46,408
46,408
-
-
-
-
225,165
13,722
110,866
349,753
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
153,023
68,005
221,028
-
-
-
-
-
-
-
-
-
153,023
68,005
221,028
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.
Note 24. Fair value measurement
Accounting policy for fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the principal
market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and
best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
42
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 25. Key management personnel disclosures
Directors
The following persons were directors of Peak Minerals Limited during the financial year:
Ernest Thomas Eadie
Martin McFarlane (resigned 24 December 2019)
David Leavy
Robert Boston
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
Long-term benefits
Share-based payments
Note 26. Remuneration of auditors
Consolidated
30 June 2020 30 June 2019
$
$
638,205
39,573
2,545
-
569,333
55,165
8,304
168,000
680,323
800,802
During the financial year the following fees were paid or payable for services provided by Moyes Yong & Co, the auditor of
the Company:
Audit services - Moyes Yong & Co
Audit or review of the financial statements
Note 27. Contingent liabilities
Hargraves Tenement
Consolidated
30 June 2020 30 June 2019
$
$
34,000
32,000
During the 2007-08 year the Company acquired an interest in the Hargraves tenement. The acquisition cost included
$300,000 plus the issue of 2,000,000 ordinary fully paid shares and 2,000,000 listed options which expired on 12 September
2008. These amounts were recorded during the year ending 30 June 2008. The Company will issue the vendors an additional
2,000,000 ordinary shares in the event that the Company estimates 70,000 ozs of recoverable gold in Mineral Reserves on
the tenements and a further 2,000,000 ordinary shares in the event that 70,000 ozs are produced from the tenement.
43
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 27. Contingent liabilities (continued)
First Tiffany
On 1 April 2014 the Company announced that it had received a summons filed by Tiffany in the Supreme Court of New South
Wales claiming an order that the Company pay Tiffany 15% of the value of minerals extracted by HEG from certain mining
tenements encompassed by a portion of EL 5868 in the Hill End locality of New South Wales (plus interest and costs).
The Company applied successfully to the court for Tiffany to provide security of costs. Tiffany failed to provide security and
the Company successfully applied to the court to have the claim dismissed. The Company was awarded costs and Tiffany
is barred from commencing fresh proceedings until it has paid the Company's costs as ordered. Costs are yet to be
determined.
HPA Project
Under the terms of the Asset Sale Agreement in relation to the acquisition of the HPA project including the Victorian
tenements and all of the ordinary shares in Pure Alumina Pty Ltd, there are several future contingent payments.
On completion of a Feasibility Study the Company is required to pay a success fee of $1.5 million settled by the issue of
shares. If the Feasibility Study is not completed within 2 years of the completion date of the acquisition (i.e. 28 August 2019)
the Company is required to pay the vendors $8,333 per month until the earlier of the completion of the Feasibility Study or
30 June 2022. The amount of the success fee arising in the period up to and including 30 June 2020 has been recognised
as an expense in the consolidated statement of profit and loss for the year ended 30 June 2020.
On completion of a legally binding offtake agreement over all of the product from the project for a period of at least 1.5 times
the project payback period, the Company is required to pay a success fee of $0.5 million settled by the issue of shares.
Note 28. Commitments
Lease commitments - operating
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
Lease commitments
Committed at the reporting date and recognised as liabilities, payable:
Within one year
One to five years
Total commitment
Less: Future finance charges
Net commitment recognised as liabilities
Consolidated
30 June 2020 30 June 2019
$
$
-
-
-
29,946
10,143
40,089
31,443
79,423
110,866
(8,345)
102,521
-
-
-
-
-
Commitments relating to tenements
As a condition of its tenements the Group has minimum expenditure commitments. These minimum commitments totalled
$368,500 as at 30 June 2020 (30 June 2019: $584,250). This balance fluctuates based on the expiration and renewal of
tenements.
44
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 29. Related party transactions
Parent entity
Peak Minerals Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 31.
Key management personnel
Disclosures relating to key management personnel are set out in note 25 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
30 June 2020 30 June 2019
$
$
Payment/provision of the following payments was made for rental of office space and
provision of professional services with related entities of the following directors:
Graham Charles Reveleigh
-
18,700
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
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.
Note 30. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Parent
30 June 2020 30 June 2019
$
$
(1,431,474)
(6,004,838)
(1,431,474)
(6,004,838)
45
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 30. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Options reserve
Accumulated losses
Total equity
Parent
30 June 2020 30 June 2019
$
$
3,724,088 10,417,888
9,980,492 10,998,705
894,214
1,128,029
1,282,149
1,136,333
84,940,191 84,672,745
200,848
(75,011,221)
200,848
(76,442,696)
8,698,343
9,862,372
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2020 (30 June 2019: nil).
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2020 (30 June 2019: nil).
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2020 (30 June 2019: nil).
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except
for the following:
●
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
Note 31. 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
Yendon HPA Pty Ltd
HEGL Investments Pty Ltd
Note 32. Events after the reporting period
Principal place of business /
Country of incorporation
Australia
Australia
Ownership interest
30 June 2020 30 June 2019
%
%
100.00%
100.00%
100.00%
100.00%
On 7 July 2020, the Company issued 97,855,414 fully paid ordinary shares at $0.009 per share in relation to the non-
renounceable rights issue (Entitlement Offer) announced on 29 May 2020.
46
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 32. Events after the reporting period (continued)
Also on 7 July 2020, the Company issued 48,927,637 listed options in relation to the Entitlement Offer. The options are
exercisable at $0.025 and expire on 30 December 2022.
On 10 July 2020, the Company issued 55,159,554 fully paid ordinary shares at $0.009 per share in relation to the shortfall
shares under the Entitlement Offer.
Furthermore on 10 July 2020, the Company issued 27,579,777 listed options in relation to the shortfall shares under the
Entitlement Offer. The options are exercisable at $0.025 and expire on 30 December 2022.
On 3 August 2020, the Company issued 195 fully paid ordinary shares at $0.025 per share, on exercise of 195 listed options.
On 4 August 2020, the Company:
●
●
●
●
●
Issued 14,322,361 fully paid ordinary shares at $0.00001 per share, as consideration for services rendered by the Joint
Lead Managers and Underwriter to the Entitlement Offer;
Issued 16,632,061 listed options in relation to the tranche 1 shares issued from the placement announced on 29 May
2020 (Placement). The options are exercisable at $0.025 and expire on 30 December 2022;
Issued 40,000,000 fully paid ordinary shares in relation to tranche 2 of the Placement. The shares were issued at an
issue price of $0.009 per share;
Issued 20,000,000 listed options in relation to the tranche 2 shares issued from the Placement. The options are
exercisable at $0.025 and expire on 30 December 2022; and
Issued 50,000,000 listed options as consideration for services rendered by the Joint Lead Managers and Underwriter
to the Entitlement Offer. The options are exercisable at $0.025 and expire on 30 December 2022.
On 6 August 2020, the Company announced that it had changed its name from Pure Alumina Limited to Peak Minerals
Limited following approval by shareholders.
On 17 August 2020, the Company issued 20,000,000 unlisted options to directors as an incentive as approved by
shareholders on 31 July 2020. The options are exercisable at $0.0331 and expire on 30 December 2022.
On 17 August 2020, the Company issued 1,000,000 unlisted options to a contractor in recognition of services provided. The
options are exercisable at $0.0465 and expire on 30 December 2022.
On 1 September 2020, the Company issued 1,350 fully paid ordinary shares at $0.025 per share, on exercise of 1,350
PUAOD listed options.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact,
positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by
the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel
restrictions and any economic stimulus that may be provided.
No other matter or circumstance has arisen since 30 June 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.
47
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 33. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Consolidated
30 June 2020 30 June 2019
$
$
(2,904,273)
(6,426,182)
Adjustments for:
Depreciation and amortisation
Impairment of non-current assets
Share-based payments
R&D tax incentive receipt capitalised on balance sheet but treated as operating cash inflow
Gain on sale of fixed assets
Loss on relinquishment of tenement
62,212
-
-
69,986
-
1,402,398
41,877
4,178,373
198,000
311,918
(3,310)
-
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in prepayments
Increase/(decrease) in trade and other payables
Increase in employee benefits
Increase in other provisions
Net cash used in operating activities
Note 34. Earnings per share
(7,468)
(18,709)
17,863
-
6,391
18,220
1,982
(92,938)
31,891
90,320
(1,371,600)
(1,649,849)
Consolidated
30 June 2020 30 June 2019
$
$
Loss after income tax attributable to the owners of Peak Minerals Limited
(2,904,273)
(6,426,182)
Weighted average number of ordinary shares used in calculating basic earnings per share
224,677,131 166,829,098
Weighted average number of ordinary shares used in calculating diluted earnings per share 224,677,131 166,829,098
Number
Number
Basic earnings per share
Diluted earnings per share
Accounting policy for earnings per share
Dollars
Dollars
(1.29)
(1.29)
(3.85)
(3.85)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Peak Minerals 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.
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.
48
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 35. Share-based payments
Shares issued to employees and third parties in return for services
The Company may, from time to time, issue shares to employee and third parties as consideration for goods and/or services
provided to the consolidated entity by those parties. All such transactions are settled in equity and vest immediately, unless
otherwise stated.
During the current year, there were no shares issued as consideration for goods and/or services provided to the consolidated
entity.
Shares issued to directors as remuneration
Shares issued to consultants as remuneration
Consolidated
30 June 2020 30 June 2019
$
$
-
-
-
168,000
30,000
198,000
During the prior financial year, the Company completed a Share Purchase Plan in connection with which the joint underwriters
were paid a management fee, which included granting them 10,000,000 quoted options (PUAOC).
Set out below are summaries of options on issue at the end of the financial year under the plan:
30 June 2020
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
12/06/2019
30/07/2020
$0.075 10,000,000
10,000,000
-
-
30 June 2019
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
12/06/2019
30/07/2020
$0.075
- 10,000,000
- 10,000,000
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees.
-
-
-
-
- 10,000,000
- 10,000,000
Expired/
forfeited/
other
Balance at
the end of
the year
- 10,000,000
- 10,000,000
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of
any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
49
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Notes to the financial statements
30 June 2020
Note 35. Share-based payments (continued)
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
50
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Directors' declaration
30 June 2020
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 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
30 June 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
___________________________
Tom Eadie
Chairman
18 September 2020
51
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Shareholder information
30 June 2020
The shareholder information set out below was applicable as at 11 September 2020.
Corporate governance statement
Refer to the Company's Corporate Governance statement at: https://www.peakminerals.com.au/view/about/corporate-
governance
Current on-market buy-back
There is no current on-market buy-back.
Distribution of equity securities
Analysis of number of equity security holders by size of holding:
Percentage
of total
unlisted
options held
by holders in
this range
%
Number of
holders of
unlisted
options
No.
Number of
holders of
listed
options
No.
Percentage
of total listed
options held
by holders in
this range
%
Number of
holders of
ordinary
shares
No.
Percentage
of ordinary
shares held
by holders in
this range
%
-
-
-
-
4
648
-
-
-
-
100
100
169
123
59
167
130
648
-
-
-
4
96
158
127
75
786
546
-
-
-
8
92
100
1,692
100
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
404
56
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Shareholder information
30 June 2020
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
issued
Number held
KITARA INVESTMENTS PTY LTD
KINGSLANE PTY LTD (CRANSTON SUPERANNUATION A/C)
DC & PC HOLDINGS PTY LTD (DC & PC NEESHAM SUPER A/C)
SUNSET CAPITAL MANAGEMENT PTY LTD (SUNSET SUPERFUND A/C)
THEA MANAGEMENT PTY LTD (THEA FAMILY A/C)
MOUBRAY PTY LTD (ROBERT HALLAS SF A/C)
CELTIC CAPITAL PTY LTD (THE CELTIC CAPITAL A/C)
MR MARK JOHN BAHEN & MRS MARGARET PATRICIA BAHEN (MJ BAHEN SUPER
FUND A/C)
SISU INTERNATIONAL PTY LTD
KENDALI PTY LTD
MR LUKASZ PALA
BLU BONE PTY LTD (THE SHARE TRADING A/C)
ANGKOR IMPERIAL RESOURCES PTY LTD (TURKISH BREAD S/F A/C)
EXPONENT CAPITAL PTY LTD
MONEX BOOM SECURITIES (HK) LTD (CLIENTS ACCOUNT)
B DAVID NOMINEES PTY LTD (NEVER SATISFIED S/F A/C)
SUPER MSJ PTY LTD (MSJ SUPER FUND A/C)
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
MR ALEXANDER NAUM & MRS ALBINA ABAYEVA (COCO INVESTMENTS A/C)
KONKERA PTY LTD (KONKERA FAMILY A/C)
38,960,001
20,000,001
16,473,442
12,000,000
10,000,000
8,008,000
7,000,000
6,666,667
6,379,251
5,536,667
5,260,894
4,958,120
4,729,993
4,430,000
4,299,242
4,160,000
3,500,000
3,366,523
3,333,333
3,040,000
8.43
4.33
3.56
2.60
2.16
1.73
1.51
1.44
1.38
1.20
1.14
1.07
1.02
0.96
0.93
0.90
0.76
0.73
0.72
0.66
172,102,134
37.23
57
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Shareholder information
30 June 2020
KITARA INVESTMENTS PTY LTD (KUMOVA #1 FAMILY A/C)
DC & PC HOLDINGS PTY LTD (DC & PC NEESHAM SUPER A/C)
KINGSLANE PTY LTD (CRANSTON SUPERANNUATION A/C)
ALITIME NOMINEES PTY LTD (HONEYHAM FAMILY A/C)
ANGKOR IMPERIAL RESOURCES PTY LTD (TURKISH BREAD S/F A/C)
MS CHUNYAN NIU
SUNSET CAPITAL MANAGEMENT PTY LTD (SUNSET SUPERFUND A/C)
CELTIC CAPITAL PTY LTD (THE CELTIC CAPITAL A/C)
BLU BONE PTY LTD (THE SHARE TRADING A/C)
MR MARK JOHN BAHEN & MRS MARGARET PATRICIA BAHEN (MJ BAHEN SUPER
FUND A/C)
KENDALI PTY LTD
MR LUKASZ PALA
RICHSHAM NOMINEES PTY LTD
FREYABEAR FHMN PTY LTD
HONEYBEE ANHM PTY LTD
HUNTERLAND HJDN PTY LTD
QUATTRO STAGIONE PTY LTD
MR LAURIE TRETTEL (L TRETTEL FAMILY A/C)
MOUBRAY PTY LTD (ROBERT HALLAS SF A/C)
MR PAVLE TOMASEVIC
Unquoted equity securities
Options over
ordinary
shares -
exercise
price 2.5
cents;
expiring 30
December
2022
Options over
ordinary
shares -
exercise
price 2.5
cents;
expiring 30
December
2022
% of quoted
options
issued
Number held
21,230,001
16,232,061
10,000,001
9,000,000
8,364,996
5,999,356
5,610,000
3,840,000
3,333,334
3,333,334
3,333,334
3,080,067
3,000,000
2,975,000
2,975,000
2,975,000
2,975,000
1,850,000
1,501,500
1,500,000
13.01
9.95
6.13
5.52
5.13
3.68
3.44
2.35
2.04
2.04
2.04
1.89
1.84
1.82
1.82
1.82
1.82
1.13
0.92
0.92
113,107,984
69.31
Number
on issue
Number
of holders
Options over ordinary shares issued - exercise price $0.0331, expiring 30 December 2022
Options over ordinary shares issued - exercise price $0.0645, expiring 30 December 2022
20,000,000
1,000,000
3
1
Substantial holders
Substantial holders in the Company, as disclosed in substantial holding notices given to the Company, are set out below:
Tolga Kumova and associated entities
58
Ordinary shares
% of total
shares
issued
Number held
45,339,252
9.81
Peak Minerals Limited
(Formerly known as Pure Alumina Limited)
Shareholder information
30 June 2020
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
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.
Other issued securities of the Company do not carry voting rights.
Tenements
Description
Hill End
Hill End
Hill End
Hill End
Hill End
Hill End
Hill End
Hill End
Hill End
Hill End
Hill End
Hill End
Hargraves
Chambers Creek
Yendon
Yendon
Yendon
Yendon
Tenement number
Exploration Licence No 5868 (1992)
Gold Lease No 5846 (1906)
Mining Lease No 1116 (1973)
Mining Lease No 1541 (1992)
Mining Lease No 315 (1973)
Mining Lease No 316 (1973)
Mining Lease No 317 (1973)
Mining Lease No 49 (1973)
Mining Lease No 50 (1973)
Mining Lease No 913 (1973)
Mining Lease No 914 (1973)
Mining Lease No 915 (1973)
Exploration Licence No 6996 (1992)
Exploration Licence No 8289 (1992)
Exploration Licence No 5457
Exploration Licence No 5461
Exploration Licence No 6428
Retention Licence No RL6734
Interest
owned %
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
59