20
21
ANNUAL
REPORT
Page 2 | Peak Resources Ltd FY21 Annual Report
CONTENTS
MESSAGE FROM CHAIR AND MANAGING DIRECTOR
REVIEW OF OPERATIONS
SUSTAINABILITY
ANNUAL FINANCIAL REPORT 30 JUNE 2021
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
ASX ADDITIONAL INFORMATION
TENEMENT SCHEDULE AND RESERVES AND RESOURCES
06
10
18
25
25
47
54
55
56
57
58
94
95
98
CORPORATE DIRECTORY
102
01 OVERVIEW
FY2021 HIGHLIGHTS
01
03
05
Ngualla Rare Earth Project is one of
the world’s largest, highest-grade
undeveloped NdPr Oxide deposits
Tanzanian Cabinet approval of a
Special Mining Licence application for
the Ngualla Rare Earth Project
02
04
Fully integrated ‘Ore-to-NdPr Oxide’
strategy to become a leading and low cost
independent rare earths producer
Exercise of option over a 250-year lease
over a UK rare earths refinery site
BFS Update underway, building on
the 2017 BFS and extensive pilot plant
testwork
06
NdPr Oxide prices increased approximately
124% between June 2020 to September 2021,
with increased demand led by the rapidly
escalating global decarbonisation thematic
07
Rising recognition around the
importance of enhancing diversity
of NdPr Oxide supply and supporting
production outside of China
08
New Board, management and technical
team appointments to drive projects to
development
Page 4 | Peak Resources Ltd FY21 Annual Report
ABOUT PEAK RESOURCES
Peak Resources controls the Ngualla Rare Earth
Project in Tanzania, which is one of the largest,
highest grade Neodymium and Praseodymium
(“NdPr”) rare earth deposits in the world. It is
located approximately 147km from the city of
Mbeya in southern Tanzania and on the edge
of the East African Rift Valley. Ngualla contains
Ore Reserves (18.5Mt grading at 4.80% Rare Earth
Oxide (“REO”) for 887kt REO) and Mineral Resources
(214.4Mt grading 2.15% REO for 4.61Mt REO). There
is also significant exploration potential existing within
the remaining Ngualla lease in relation to not only
rare earths, but also barite, niobium, fluorspar and
phosphate.
The Ngualla Project entails the construction of a mine,
mill, concentrator, community projects and associated
infrastructure. Construction of the project is expected
to cost approximately US$200 million and create
around 600 direct jobs during construction and around
220 direct jobs during operations.
As part of Peak’s integrated strategy, the project will
produce a rare earth concentrate grading 45% REO,
which will be shipped to its planned rare earth refinery
in the Tees Valley, United Kingdom, which will produce
Neodymium-Praseodymium Oxide (“NdPr Oxide”) and
other separated rare earth products. The Tees Valley
is an established industrial and chemical processing
zone, benefits from “plug and play” infrastructure
and utilities, and is favourably located with respect to
key European and Asian end markets (Figure 1). The
Teesside Refinery is expected to cost approximately
US$165 million.
Significant milestones were achieved at both Ngualla
and the Tees Valley during 2021 which support the
future development of the integrated project.
NdPr Oxide is a critical component of high-strength
permanent magnets, which are used in the production
of electric vehicles and wind turbines. The demand
outlook for NdPr Oxide is strong and closely aligned
to global trends around decarbonisation, the
electrification of transport and renewable energy
generation. China currently produces around 90%
of the world’s NdPr Oxide, and Peak’s Ngualla-
Teesside Project will position the Company as one of
a small number of suppliers of NdPr Oxide and other
separated rare earth products outside of China.
Rare Earth Refinery,
United Kingdom
Ngualla
Rare Earth
Deposit,
Tanzania
Headquarters,
Australia
02 MESSAGE FROM CHAIR AND MANAGING DIRECTOR
The capacity to decarbonise our economy
is reliant upon raw materials such as
rare earths to produce electric vehicles
and wind turbines that will support lower
carbon emissions.
Tony Pearson - Non-Executive Chair
Page 6 | Peak Resources Ltd FY21 Annual Report
MESSAGE FROM CHAIR
AND MANAGING DIRECTOR
TONY PEARSON
Non-Executive Chair
BARDIN DAVIS
Managing Director
Dear Peak Shareholders,
Decarbonisation of our planet is one of the key
took some critical steps forward in fulfilling this
strategy.
structural forces which will drive the global
The Tanzanian Cabinet approval of a Special Mining
economy over the coming decades. To achieve
Licence (SML) application for the Ngualla Project
decarbonisation targets under the Paris Agreement,
in July 2021 marks the key regulatory milestone
governments and businesses across the world
required to advance the project. The approval
will need to change the way energy is produced
followed an extensive due diligence process with
and transport is powered. These changes are
the Government of Tanzania and we thank Her
happening and will gather further momentum in
Excellency Samia Suluhu Hassan, the President of
future years.
The capacity to decarbonise our economy is
reliant upon raw materials such as rare earths to
produce electric vehicles and wind turbines that will
support lower carbon emissions. The high-strength
permanent magnets used in these technologies
require Neodymium and Praseodymium (NdPr)
Oxide and other rare earths with demand growth
forecast to grow at a compound rate of close to
10% over the decade from 2020.
Peak Resources is positioned to become one of the
few fully integrated suppliers of NdPr Oxide outside
of China via the development of its integrated
Ngualla Rare Earth Project in Tanzania (Ngualla
Project) and its Teesside Refinery in the United
Kingdom. The Ngualla Project contains one of the
world’s largest and highest grade undeveloped
NdPr Oxide deposits. Our Teesside Refinery project
benefits from a strategic location and will support
our objective of being a fully integrated and low-
cost independent producer. During the period we
Tanzania; Cabinet members; Honourable Minister
for Minerals; Honourable Deputy Minister for
Minerals; Permanent Secretary for Minerals; the
Chairman and members of the Mining Commission;
Honourable MP for Songwe Province; Regional
Commissioner for the Songwe Region; District
Commissioners of the Songwe District; and all
other officials involved in assisting Peak to reach
this transformational milestone.
In May 2021 we exercised a £1.9 million option to
enter into a 250-year lease over a 19 hectare site in
the Tees Valley near Middlesbrough in the UK. We
plan to build our Teeside Refinery on this site, which
will receive high-grade rare earth concentrate from
our planned Ngualla Project. The Teesside Refinery
will produce NdPr Oxide and other separated rare
earth products that are critical for electric vehicles
and renewable energy technologies. The Tees
Valley is an established industrial and chemical
processing zone, benefits from “plug and play”
infrastructure and utilities and is favourably located
02 MESSAGE FROM CHAIR AND MANAGING DIRECTOR
with respect to key European and Asian markets.
and thorium. This supports a low-cost structure
The construction of the Teesside Refinery is
and superior environmental outcomes compared
intended to occur in parallel with the development
to many competing development projects. The BFS
of Ngualla.
The integrated Ngualla – Teesside project is one
of the most advanced in the rare earth sector with
Update is expected to be completed in early 2022
and be followed by Front End Engineering Design
activities.
a Bankable Feasibility Study (BFS) completed in
2017. The BFS confirms an attractive development
During the period a number of changes were made
to the Company’s Board and senior management
asset with a strong operating margin, long mine
team to support the next phase of the Company’s
life and highly attractive economics. Following the
growth. In October 2020 Tony Pearson was
receipt of the SML for the Ngualla Project a BFS
appointed Non-Executive Chair and Bardin Davis
Update was initiated to ensure estimates reflect
was appointed a Non-Executive Director before
current market conditions and to pursue a number
commencing as Managing Director in December
of project enhancement opportunities. Given the
2020.
original BFS was supported by extensive pilot
plant testing there are not expected to be material
changes to the processing route. The high-grade
bastnaesite-hosted orebody at Ngualla has very
low levels of acid consuming elements, uranium
Previous CEO Rocky Smith departed the Company
in September 2020. Former Chairman Peter Meurer
and Non-Executive Directors Jonathan Murray and
Rob Sennitt stepped down from the Board during
Page 8 | Peak Resources Ltd FY21 Annual Report
Tanzania Cabinet approval of the SML
application for Ngualla further enhances
its position as one of the most advanced
rare earth development projects with a
JORC Compliant Ore Reserve, completed
BFS, fully piloted process and key
approvals in place.
Bardin Davis, Managing Director
the year and we express our gratitude for their
in a strong financial position to drive greater
service.
The Board was strengthened with the addition of
Non-Executive Directors Giselle Collins, Rebecca
shareholder returns as we continue to de-risk and
advance our integrated Ngualla- Teesside project
towards development.
Morgan and The Hon. Abdullah Mwinyi during
Peak is extremely well positioned to become a fully
the year. The Board now has a strong balance of
integrated NdPr Oxide producer to support global
skillsets and professional experience relevant to
decarbonisation efforts and deliver substantial
our strategy and we would like to thank our fellow
benefits to Tanzania and the Ngualla community.
Directors for their guidance and counsel since they
On behalf of the Board and Management team,
have joined the Board.
Post the end of the period, our management team
was bolstered with the appointment of a number
of senior technical and commercial executives to
support the BFS Update and future development of
the project. We warmly welcome everyone to the
Peak team.
Our shareholders continued to support the
Company with a $4.35 million capital raising
completed during the period and a transformational
$31.68 million placement and Share Purchase Plan
that was completed after the period. These raisings
have enabled the Company to repay and terminate
a royalty facility and have left the business
we look forward to keeping you appraised of our
progress as we enter a very exciting period for the
Company.
Yours sincerely,
Tony Pearson
Chair
Bardin Davis
Managing Director
03
REVIEW OF
OPERATIONS
Page 10 | Peak Resources Ltd FY21 Annual Report
REVIEW OF
OPERATIONS
Tanzanian Cabinet approves Special
Mining Licence application
On 22 July 2021, the Company announced that
it had received approval from the Cabinet of the
Government of the United Republic of Tanzania
(Tanzania) for the Special Mining Licence (SML)
application by PR NG Minerals Ltd (PR NG), a wholly
owned Tanzanian incorporated subsidiary of Peak,
for the Ngualla Rare Earth Project.
entailing a capital investment of at least US$100
million and will provide the exclusive right to
conduct mining operations for specified minerals
over the 18.14km2 Ngualla Project site.
The SML approval process requires in-depth
technical due diligence to be undertaken by
the Tanzanian Ministry of Minerals Technical
Committee, approval by Cabinet and formal
execution of the grant by the Minister for Minerals.
Granting of the SML is the milestone regulatory
authorisation required to develop the Ngualla
Project under the Mining Act of the United Republic
of Tanzania. It is the form of mining licence granted
in Tanzania for large-scale mining operations
Peak Resources
Limited (AU)
100%
100%
Peak African
Minerals Limited
(MA)
Peak Technology
Metals Limited
(UK)
100%
100%
PR NG Minerals
Limited (TZ)
Ngualla Group UK
Ltd (UK)
Government of
Tanzania
84%
16%
Ngwalla Mining
Limited (TZ)
100%
100%
Other
Prospecting
Licences
Ngualla SML
Subject to the formal grant of the SML by the
Minister of Minerals, PR NG has provided a
commitment to the Government to work jointly to
establish a Tanzanian registered company (Newco),
to which PR NG will transfer the SML. Newco is to
be owned 84% by Peak (via a wholly owned entity)
and 16% by the Tanzanian Government. As required
under Tanzanian law, the Government’s ownership
is to be in the form of non-dilutable free carried
interest shares in the capital of Newco (Figure 1).
100%
Teesside Rare
Earth Elements Ltd
(UK)
100%
Teesside
Refinery
Figure 1: Proposed corporate structure of the Peak’s assets and Tanzanian
Government’s ownership in the Ngualla project
03 REVIEW OF OPERATIONS
The next steps in the regulatory process include
Peak intends to construct its Teesside Refinery on
finalising a Shareholders’ Agreement and constitution
the site to produce NdPr Oxide and other separated
relating to Newco and negotiating an Economic
rare earth products from concentrate supplied
Framework Agreement (EFA) with the Tanzanian
by the Company’s Ngualla Project in Tanzania. In
Government. The EFA is expected to set out the fiscal
addition to NdPr oxide, the Company intends to
framework for the project and provide economic,
produce lanthanum carbonate, cerium carbonate
regulatory and legal benefits. It will be negotiated with
and a SEG and mixed heavy rare earth carbonate.
the Tanzanian Government in the coming months.
Peak’s other Prospecting Licences over the Mikuwo
and Mlingi tenements will continue to be owned 100%
by PR NG.
Lease option on refinery site exercised
On 28 May 2021, the Company exercised its
option to enter into a 250-year lease over its
19-hectare Teesside Refinery site near the town
of Middlesbrough in the Tees Valley, United
Kingdom after an extensive evaluation and
The site is located within the Wilton International
Site (Wilton) and 3km from the Teesport deep-water
port. Wilton is a large-scale industrial park that
has existing access to reliable competitively priced
power, utilities and services. The Teesport deep-
water port is the third largest UK port by volume,
has existing capacity to receive rare earth mineral
concentrate and reagents, and is close to several
facilities that can manage waste residue from the
refining process.
consultation period. Peak paid an upfront amount
of approximately £1.9 million to exercise the option,
with annual rent structured as a nominal peppercorn
The site is also located within the Teesside
designated Freeport area. Following recent
announcements by the UK Government, freeport
payment.
Figure 2: Teesside Rare Earths Separation Facility
Page 12 | Peak Resources Ltd FY21 Annual Report
areas are expected to benefit from lower tariffs and
On 21 October 2020, Peak announced the
customs charges, simplified customs procedures,
appointments of Tony Pearson as Chair of
and tax breaks to encourage investment and
the Board of Directors and Mr Bardin Davis as
government support to promote regeneration and
Managing Director. Mr Davis was appointed as a
innovation.
Non-Executive Director with immediate effect and
commenced his executive duties on 9 December
Board and Management changes
2020.
In September 2020, the Board considered that
while the Company was awaiting approval of
the SML it was an appropriate time to place an
Mr Pearson has been a Non-Executive Director of
Peak since August 2018. Mr Pearson is currently
Chair of ASX-listed Cellnet, a Trustee of the Royal
increased focus on expenditure management and
Botanic Gardens & Domain Trust and a Non-
cash conservation, which resulted in a reduction in
Executive Director of ASX-listed Xanadu Mines as
headcount.
Subsequently, Mr Peter Meurer resigned from his
role as Non-Executive Chairman while Mr Robert
Sennitt and Mr Jonathan Murray also resigned
from their positions as Non-Executive Directors.
In addition, during the period the CEO, Mr Rocky
Smith and CFO, Mr Graeme Scott ceased their
employment with the Company.
The Company thanks Mr Meurer, Mr Sennitt, Mr
Murray and Mr Scott for their significant efforts to
the business during their tenure.
well as both Communicare and the Foundation and
Friends of the Botanic Gardens.
Mr Davis has over 20 years of investment banking
and corporate experience in the mining and energy
sectors across the Asia Pacific Region. He was
formerly the CFO of UPC/AC Renewables Australia
and previously held senior investment banking
roles in Hong Kong and Sydney. Previous roles
include the Head of the Resources & Energy Group
– Asia Pacific, Deputy Head of Corporates – Asia
Pacific and Head of Advisory – Australia for HSBC
and Head of Metals & Mining Asia for Macquarie
03 REVIEW OF OPERATIONS
Capital. Mr Davis has significant emerging markets
sectors of the resource industry, including rare
experience and has worked on a broad range
earth market research, project due diligence,
of international advisory, capital markets and
independent reporting and mineral asset valuation.
financing transactions.
Other board and officer appointments made during
the year:
• On 9 November 2020, the Hon. Abdullah Mwinyi
was appointed as a Non-Executive Firector;
Commissioning of Bankable
Feasibility Study update
On 25 August 2021, the Company announced that
it commissioned Amec Foster Wheeler Australia
Pty Ltd (part of the Wood Group plc) to lead an
• On 16 December 2021, Mr Phil Rundell was
updated Bankable Feasibility Study (BFS Update)
appointed as Company Secretary and CFO; and
on the Ngualla Rare Earth Project and the Teesside
• On 9 March 2021 Ms Giselle Collins and Ms
Rebecca Morgan were appointed as Non-
Executive Directors.
The Hon. Mr Mwinyi is a member of the Tanzanian
Parliament, having entered Parliament in 2007,
at the same time becoming a Member of the East
African Legislative Assembly where he was Chair of
the Legal, Privileges and Rules Committee and the
Regional Affairs and Conflict Resolution Committee
and served for a decade. He is also Chair of Swala
Oil and Gas (Tanzania) plc. The Hon. Mr Mwinyi is
a lawyer by profession and, in 2007, established
Asyla Attorneys, where he specialises in corporate,
commercial, labour and employment law.
Refinery.
Peak completed its original Bankable Feasibility
Study (BFS) in April 2017 in partnership with Amec
Foster Wheeler . The BFS was backed by extensive
pilot plant test work, detailed engineering design
and cost studies and JORC 2012 Compliant Ore
Reserves and Mineral Resources estimates. It
covered a mine and multi-stage processing plant
on-site at Ngualla and a rare earths refinery in the
Tees Valley.
Since the BFS, Peak has identified opportunities to
further enhance its projects including the:
• Adoption of a lower cost flotation collector
which would also provide potential for
Ms Collins is an experienced company director
increased throughput or reduce flotation circuit
and brings a wealth of audit, risk, governance and
capital requirements; and
compliance experience to Peak. She is currently
Chair of Larrakia Darwin Hotel, a Non-Executive
Director of ASX listed Hotel Property Investments
and Cooper Energy, a Non-Executive Director of
Generation Life and a Trustee of the Royal Botanic
Gardens & Domain Trust.
Ms Morgan is a geologist and mining engineer
with 19 years of international resources industry
experience working with major mining houses,
consulting groups, and junior explorers globally,
including Africa. She has experience across all
• Potential to develop a more direct and lower
cost access road to the Ngualla Project site,
following changes to regional provincial
boundaries in the Ngualla Project being located
in Songwe District, which could reduce the
length of the access road significantly from
~84km to ~48km.
Further, NdPr Oxide prices have strongly
appreciated since the BFS as well as the Ngualla
1The Bankable Feasibility Study is reported in the Company’s ASX announcements dated 12 April 2017, 28 August 2017 and 12 October 2017.
The technical information and Competent Persons Statements for the Ore Reserves and Mineral Resources are reported in the Company’s
ASX announcements 22 February 2016, 2 March 2017 and 12 April 2017.
Page 14 | Peak Resources Ltd FY21 Annual Report
Rare Earth Project Update that was released to the
The key focus areas for the BFS Update include:
market in October 2017 and was predicated on
long-term NdPr Oxide prices of US$77.50/kg.
A comparison of spot prices to the BFS assumed
price of US$77.50/kg is set out in Figure 3.
•
Early delivery of the Southern Access Road
rehabilitation works;
• Updated transport logistics study;
•
Flotation process optimisation including test
A projected range of NdPr Oxide prices is set out
work and analysis;
in Figure 4 and captures three pricing scenarios
released by Adamas Intelligence in May 2021.
Under each of the three scenarios the NdPr Oxide
• Mine plan update;
•
Tailings storage facility evaluation;
price is projected to be more than US$100/kg by
• Renewable energy studies;
2030.
NdPr Oxide and other rare earth price assumptions
will be revisited as part of the BFS Update.
Given the comprehensive pilot plant test work and
detailed engineering undertaken as part of the BFS,
no material changes are expected to the existing
BFS flow sheets.
• Project execution strategy development;
•
Early works and project execution planning;
• Operating and capital expenditure estimate
updates to reflect current market pricing; and
• Updated pricing assumptions for NdPr Oxide
and other separated rare earth products.
The completion of the BFS Update is expected to
be a major milestone in progressing the Ngualla-
Teesside Project towards a final investment
decision and will support ongoing project and
export financing initiatives.
BFS $77.50
$40.78
BFS Published
$95
$85
$75
$65
$55
$45
$35
Jan 2017 Jul 2017 Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021 Jul 2021
Figure 3: Historical NdPr Oxide Prices
Source: Asian Metal
Figure 4: Projected NdPr Oxide Price Range
Source: Adamsintel
03 REVIEW OF OPERATIONS
Technical and commercial
executive appointments
To support the BFS Update and to advance the
Ngualla-Teesside Project towards development
Initial capital raising
In October 2020, the Company completed a
placement of 109,375,000 fully paid ordinary shares
in the Company at an issue price of A$0.032 per
and construction, a number of new technical and
share to sophisticated, professional and other
commercial appointments were made in September
exempt investors pursuant to section 708 of the
2021.
Corporations Act 2001 (Cth) to raise A$3.5 million
before costs.
The appointments include Head of Development &
Operations, Head of Technical Services, Consulting
In addition to the placement, and to ensure wider
Metallurgist and General Manager, Corporate
shareholder participation by the Company’s existing
Development & Finance. The new members of the
loyal shareholders, the Company made an offer to
team are highly experienced with a complementary
all eligible shareholders to participate in a Share
skill set and a combined track record in developing
Purchase Plan (SPP) and raised A$0.85 million. The
and optimising African and international mining,
Shares offered under the SPP were priced at the
refining and rare earth projects. The Company
is also finalising the appointment of its Head of
same $0.032 per share price as the placement. The
SPP closed on 17 November 2020 with 26,562,493
Marketing who is expected to commence in October
fully paid ordinary shares in the Company issued to
2021.
existing shareholders.
Page 16 | Peak Resources Ltd FY21 Annual Report
Subsequent capital raising
On 6 August 2021 the Company announced
the commencement of a two-tranche equity
placement to sophisticated, professional and other
The Company also announced a Shareholder
Placement Plan (“SPP”) of up to A$4.0 million,
subject to shareholder approval at the General
Meeting called for 28 September 2021.
exempt investors pursuant to section 708 of the
Both the Tranche Two Placement and the SPP were
Corporations Act 2001. The Placement, totalling
approved by shareholders at a General Meeting on
A$30.0 million at a price of A$0.09 per share,
28 September 2021. The final amount raised under
comprised of:
the SPP was approximatelty $1.675 million (before
•
Tranche One: a A$20.4 million raising and the
costs).
issuance of 226.8 million shares completed
The net proceeds of the capital raisings will be used
on 13 August 2021, utilising Peak’s capacity
by Peak to progress the development of the Ngualla
to issue up to 15% new capital without
Project and the Teesside Refinery (including
shareholder approval per Listing Rule 7.1; and
offtake and financing arrangements), to expand the
•
Tranche Two: an additional A$9.6 million
raising and the issuance of a further 106.4
million shares, subject to shareholder approval
at the General Meeting called for 28 September
2021.
Company’s technical and marketing team, and fund
the repayment of the ANRF Royalty Facility.
ANRF royalty facility payment
On 6 August 2021, the Company announced that it
had entered into a Royalty Repayment and Release
Agreement (Royalty Agreement) with respect to
the repayment of a 2.0% life of mine gross revenue
royalty financing facility made available by ANRF
Royalty Company Limited (ANRF), a company
associated with Peak substantial shareholder
Appian Pinnacle Holdco Limited. Under the Royalty
Agreement, Peak has required to pay ANRF US$10.0
million, which comprises the repayment of principal
of US$5.2 million and an accrued interest payment
of US$4.8 million. The Royalty Agreement was
approved by shareholders at a meeting held on 28
September 2021 and completed on 6 October 2021.
04
SUSTAINABILITY
Page 18 | Peak Resources Ltd FY21 Annual Report
SUSTAINABILITY
Overview
We offer a true transparent and fully traceable
supply chain solution to the burgeoning low carbon
It is important to Peak Resources as an organisation
technology space.
that we show integrity and commitment in all that
we do – whether it be in our dealings with partners,
customers, shareholders and employees, in striving
towards a cleaner and more sustainable environment,
or helping to build a better future in the communities
in which we operate.
Peak is developing its Ngualla Project and Teeside
Refinery to enable it to become a long-term,
environmentally and socially sustainable supplier
of choice to the global rare earth market. Peak’s
objective is to provide end users the opportunity
to source ethical, environmentally friendly and
sustainable compliant mined, refined and processed
Rare Earth products.
The Company’s own ethics and standards in this
regard, together with those of its key investor
partners, match the needs of modern global industry
to have a responsible source of materials throughout
their product supply chains. The Company aims
to make a green and sustainable approach to
production a fundamental part of its business
strategy and a point of differentiation for its products
compared with some other sources of rare earths.
The Company maintains highest standards of
environmental, health, safety and social behaviour
and aims to ensure that the development of
its Ngualla and Teeside projects benefits all
stakeholders including the local communities.
Our values
To provide an integrated, ethically sustainable, superior quality product solution to global high technology rare
earth consumers.
Our mission
1
3
5
To become the customer’s number one
To become a leading and highly profitable
rare earth supplier of choice by supplying
valuable and reliable solutions
To achieve operational and financial
excellence that delivers best in class,
2
4
rare earth supplier outside of China
To become a sustainable organisation
operating according to the highest
superior shareholder value whilst embracing
standards of social responsibility health
and respecting environmental requirements
and safety, for the communities in which
to provide a true sustainable green solution
we operate, for our employees and their
to the global Rare Earth industry
families
To become a safe and desirable working
To act with integrity and honesty in dealing
place where we nurture personal
development and create a working
environment of empowerment and
diversity
6
both inside and outside the company
04 SUSTAINABILITY
Page 20 | Peak Resources Ltd FY21 Annual Report
Safety performance
The Company has an exemplary safety record with
no Lost Time Injuries (LTIs) recorded over the past
three years and a consistent focus in the promotion
of a communicative safety culture.
Community support initiatives
An integral part of the Company’s mission is
ensuring our business has a positive impact on
our stakeholders, in particular, our employees,
their families and the communities in which it
operates. Supporting the communities in which
Peak operates through a variety of funding
initiatives is an example of how the Company can
have a positive impact. Projects based on the
needs of the village are identified by the Ngualla
Village Council and are communicated to Peak for
further development and to ensure alignment with
the broader programs of the district Government.
Programs that have been undertaken to date
include:
• A school development program comprising the
construction and refurbishment of classrooms
and accommodation at a number of schools,
and the donation of furniture, textbooks and
school stationery to these schools
• Donation and sponsorship of sports equipment
and community sports tournaments
• Repairs to a maternity ward and donation of a
maternity bed, new mattresses, bed sheets and
blankets at Ngwala Village Medical Dispensary
• Provision of emergency medical transport
• Maintenance of roads and water supply
• Donations and assistance for official visits
including delegate transport
As a means of further supporting local
communities, the Company ensures, where
possible, that locally sourced materials are used
for community development projects, with local
tradespeople, labourers and businesses utilised for
goods and services.
04 SUSTAINABILITY
Decarbonised future powered
by Permanent Magnets
outside of China – this is the significant market
opportunity Peak has been readying for.
A global decarbonisation thematic is driving strong
demand for rare earth products, in particular
high-strength permanent magnet materials such
as NdPr Oxide. These market conditions have
been exacerbated by tightening supply-side
dynamics including bottlenecked supply chains
and geopolitical complexities stemming from an
over-reliance on China, which currently supplies
~90% of the NdPr Oxide market. These market
dynamics, including an emerging structural upward
shift on the demand side, have led governments
and businesses globally to seek security of supply
Peak’s product suite, which is predominantly
focussed on NdPr Oxide, stands to benefit from
rapidly increasing demand for high-strength
permanent magnets, with forecast growth of 9.7%
(CAGR) between 2020-2030. Amongst the highest
areas of demand growth is the burgeoning Electric
Vehicle (EV) and direct drive wind turbine markets.
This growth is expected to continue as the uptake
of EVs unfolds as internal combustion engines are
phased out around the globe and with projections
of a further acceleration in offshore wind power
generation.
Page 22 | Peak Resources Ltd FY21 Annual Report
Figure 5: NdPr Oxide market balance
Source: Adamas Intelligence
Figure 6: Permanent magnet consumption
Source: Adamas Intelligence
ANNUAL
FINANCIAL
REPORT
30 June 2021
Page 24 | Peak Resources Ltd FY21 Annual Report
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
DIRECTORS’ REPORT
The directors of Peak Resources Limited (“Company”) (ACN: 112 546 700) submit herewith the financial
statements of the Company for the financial year ended 30 June 2021. In order to comply with the provisions
of the Corporations Act 2001, the directors report as follows:
DIRECTORS
The names of directors who held office during or since the end of the year and until the date of this report are
as below. Directors were in office for this entire period unless otherwise stated.
Tony Pearson
Aug 2018)
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
Jonathan Murray
Peter Meurer
Robert Sennitt
Non-Executive Chair (appointed Chair 21 October 2020, Non-Exec Director from 21
Managing Director (MD) (appointed Non-Exec Director 21 Oct 2020, MD 9 Dec 2020)
Non-Executive Director (appointed 15 November 2020)
Non-Executive Director (appointed 9 March 2021)
Non-Executive Director (appointed 9 March 2021)
Non-Executive Director (resigned 8 March 2021)
Non-Executive Chair (resigned 16 September 2020)
Non-Executive Director (resigned 11 September 2020)
INFORMATION ON DIRECTORS
Tony Pearson– Non-Executive Chair (Appointed 21 October 2020), Interim Non-
Executive Chair (Appointed 16 September 2020), Non-Executive Director (Appointed
21 August 2018)
B.Comm, AICD
Tony is an experienced international natural resources executive and company
director. He is currently the Chairman of ASX listed Cellnet, a Trustee of the Royal
Botanical Gardens & Domain Trust and a Non-Executive Director of Communicare
Inc. He was formerly a Commissioner at the Independent Planning Commission, and
previously a group executive at TSX/HKEx listed SouthGobi Resources, based in
Hong Kong, where he was responsible for the company’s corporate and strategic initiatives. Tony also has over
15 years’ commercial and investment banking experience, covering the Asia Pacific natural resources industry,
most recently as a Managing Director at HSBC.
Tony is a member of the Audit & Risk Committee and Nomination & Remuneration Committee.
Tony serves as a non-executive director of the following other listed companies and held no other public
company directorships in the past three years:
• Cellnet Group Ltd – from 5 October 2018
• Xanadu Mines Limited - from 3 May 2021
Bardin Davis – Managing Director (Appointed 9 December 2020), Non-Executive
Director (Appointed 21 October 2020)
GAICD, MAppFin, GradDipAcc, BAg Econ (1st Class Hons)
Bardin has over 20 years of investment banking and corporate experience in the
mining and energy sectors. Previous roles include the Chief Financial Officer of
UPC\AC Renewables, the Head of the Resources & Energy Group – Asia Pacific,
Deputy Head of Corporates – Asia Pacific and Head of Advisory – Australia for HSBC
and Head of Metals & Mining Asia for Macquarie Capital. He has significant emerging
markets experience and has worked on a broad range of international advisory, capital markets and financing
transactions. Bardin held no listed public company directorships in the past three years.
25
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
The Hon. Abdullah Mwinyi – Non-Executive Director (Appointed 15 November 2020)
LLB, LLM (Cardiff University)
Abdullah is a member of the Tanzanian Parliament, having entered Parliament in
2007. He has also held roles as a Member of the East African Legislative Assembly
(2007 – 2017), where he was Chair of the Legal, Privileges and Rules Committee and
the Regional Affairs and Conflict Resolution Committee, and Chair of Swala Oil and
Gas (Tanzania) plc. Abdullah is a lawyer by profession, having been awarded a LLB
and LLM from the University of Cardiff, and, in 2007, established Asyla Attorneys, where he specialises in
corporate, commercial, labour and employment law.
Abdullah has held no ASX listed public company directorships in the past three years.
Giselle Collins - Non-executive Director (Appointed 9 March 2021)
BA Econ, Chartered Accountant (CAANZ), GAICD
Giselle brings a wealth of audit, risk, governance, and compliance experience to
Peak. Giselle is currently Chair of Larrakia Darwin Hotel, a non-executive director of
ASX listed Hotel Property Investments, a non-executive of Generation Life and a
Trustee of the Royal Botanic Gardens & Domain Trust.
Giselle was previously Chairman of Aon Superannuation as Trustee for Aon Master
Trust (now SmartMonday), Chairman of the Travelodge Hotel Group and Chairman of The Heart Research
Institute. Giselle has served as a non executive director on a diverse range of other boards including Big4
Holiday Parks, Minjerribah Camping and the Royal Australian Institute of Architects.
Giselle has been appointed Chair of the Company’s Audit & Risk Committee and is a member of the Nomination
& Remuneration Committee.
Giselle is a non-executive director of ASX listed Cooper Energy Limited, appointed 19 August 2021, and ASX
listed Hotel Property Investments, appointed 19 April 2017.
Rebecca Morgan - Non-executive Director (Appointed 9 March 2021)
BSc(Hons)
Engineering)
(Applied Geology), GradDip(Mine Engineering), MScEng
(Mine
Rebecca has a Bachelor of Science (Hons) Applied Geology; Post Graduate Diploma
(Mine Engineering, and a Master of Engineering Science (Majoring in Mineral
Economics and Mine Optimisation) from Curtin University. Rebecca is also a Member
of the Australian Institute of Geoscientists and the Australian Institute of Mining and
Metallurgy.
Rebecca has been appointed Chair of the Company’s Remuneration and Nomination Committee.
Rebecca is a non-executive director of ASX listed Salt Lake Potash Limited, appointed 22 June 2021. She was
a director of Vulcan Energy Resources Limited (formerly Koppar Resources Limited) from 5 February 2018 to
4 September 2019.
Mr Peter Meurer– Non-Executive Chairman (Appointed 23 April 2018, Resigned 16 September 2020)
MBA from RMIT
Peter has had a distinguished career of over 40 years in the Corporate Finance sector and was most recently
Non-Executive Chairman of Nomura Australia. He first joined Nomura Australia in 2009 and prior to this held
the roles of Vice Chairman for Citigroup and Merrill Lynch. Peter has a strong strategic focus and has forged
trusted advisor relationships through the many market related transactions in which he has been involved
covering all aspect of corporate finance including equity raisings, debt financing, corporate advisory and M&A.
26
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Peter was not a director of any other listed companies and held no public company directorships in the past
three years.
Mr Jonathan Murray – Non-Executive Director (Appointed 22 February 2011, Chairman from 1 April 2015 to
30 November 2015 and 31 December 2017 until 22 April 2018, Resigned 8 March 2021)
Bachelor Laws and Commerce
Jonathan is a partner at independent corporate law firm Steinepreis Paganin, based in Perth, Western Australia.
He specialises in equity capital raisings, all forms of acquisitions and divestments, governance and corporate
compliance.
Mr Murray graduated from Murdoch University in 1996 with a Bachelor of Laws and Commerce (majoring in
Accounting). He is also a member of FINSIA (formerly the Securities Institute of Australia). In his time as a
director of the Group, Jonathan served as a director of the following other listed companies and held no other
public company directorships in the past three years:
• Hannans Limited Ltd – from 22 January 2010
• Vietnam Industrial Investments Limited - from 19 January 2016
Mr Robert Sennitt – Non-Executive Director (Appointed 15 January 2020, Resigned 11 September 2020)
BEc (Sydney Uni) and Member of the Institute of Chartered Accountants
Robert is a Senior Advisor to Appian in Australia. He has been involved in the resources sector in Australia for
over thirty years, initially as an investment banker where he held senior positions with J.P. Morgan, Macquarie
Bank and RBC Capital Markets and more recently as Managing Director and CEO of Mineral Deposits Limited
(MDL), before its takeover in July 2018. At MDL, Robert was appointed to the Executive Committee that had
responsibility for the management of the TiZir Mineral Sands Joint Venture, comprising the Grande Cote mining
operation in Senegal and the TTI smelting operation in Norway.
Robert was not a director of any other listed companies and ceased to be a director of listed company, MDL
in August 2018.
COMPANY SECRETARY
Phil Rundell - Company Secretary (Appointed 16 December 2020)
CA
Phil was a former Partner at Coopers & Lybrand (now PricewatehouseCoopers) and
a Director at Ferrier Hodgson. He is now a sole practitioner Chartered Accountant
and has specialised in providing company secretarial, compliance, accounting and
reconstruction services for the last 10 years.
Graeme Scott – Company Secretary (Appointed 3 November 2014, Ceased Employment 16 December 2020)
FCCA
Graeme is a fellow of the Association of Chartered Certified Accountants (UK) with more than 20 years’
experience in professional and corporate roles in both Australia and the UK. He has spent the last 15 years
working in the resources sector in CFO and Company Secretarial roles for both ASX and TSX listed companies.
PRINCIPAL ACTIVITIES
During the year, the principal activities of the Company consisted of:
(a) Mineral processing technological evaluations;
(b) Mining and associated infrastructure, feasibility evaluations; and
(c) Progressing approvals for the Ngualla Project and Teesside Refinery
OPERATING RESULTS
The loss of the Group after providing for income tax amounted to $4,770,848 (2020: profit $7,652,714).
The basic and diluted loss per share for the Group for the year was 0.31 cents (2020: profit 0.65 cents).
27
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
FINANCIAL POSITION
The net assets of the Group have decreased from $55,868,357 at 30 June 2020 to $55,294,679 at 30 June
2021.
The Group’s working capital, being current assets less current liabilities, was $2,892,383 at 30 June 2021 (2020:
$2,037,355).
The Company had $2.68 million cash at bank at the end of the reporting period, and with $20.4 million received
(pre transaction costs) post period end for the first tranche of a $30 million capital raising (refer to subsequent
event note 27), it is well funded going into the 2021/2022 financial year to fund the Ngualla Project, and its
corporate and administration requirements.
DIVIDENDS PAID OR RECOMMENDED
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way
of a dividend to the date of this report.
Review of Operations
The Company continues to progress the pre-development activities of its world-class strategic assets; the
Ngualla Rare Earth Project (“Ngualla Project”) in Tanzania and the Teesside Rare Earth Refinery and Separation
Facility (“Teesside Refinery”) in the United Kingdom. It aims to become an integrated long-term, low-cost
supplier of Neodymium and Praseodymium (NdPr) Oxide to the expanding high-tech permanent magnet market.
UK:
Teesside Refinery
Location of Peak’s world-class strategic assets
Tanzania:
Ngualla Project
The key events with respect to the Company’s operations over the last twelve months and to the date of this
Directors’ Report are as follows:
Implementation of a board and management restructure;
•
• Completion of an A$4.35 million capital raising;
• Exercise of an option to enter a 250-year lease over the Teesside Refinery site;
• Strong engagement with the Government of the United Republic of Tanzania (“Tanzanian Government”)
resulting in securing the approval of the Special Mining Licence (SML) application by the Cabinet of the
Tanzanian Government in July 2021;
• Proceeding with a two tranche A$30.0 million Placement and A$4.0 million Share Purchase Plan, which
was initiated August 2021;
• Appointing senior technical and commercial executives and consultants; and
•
Increasingly attractive sector fundamentals and rising NdPr Oxide prices.
28
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Board and management restructure
Departures and resignations
During the year Mr Peter Meurer resigned from his role as Non-Executive Chairman of Peak while Mr Rob Sennitt
and Mr Jonathan Murray resigned from their positions as non-executive directors to the Company. In addition,
during the period the CEO, Mr Rocky Smith and CFO, Mr Graeme Scott ceased their employment with the
Company.
Confirmation as Non-Executive Chair – Tony Pearson
Tony Pearson was appointed as Non-Executive Chair of the Company on 21 October 2020. Tony has been an
independent Non-executive Director of Peak since August 2018 and was appointed acting Chair on 11
September 2020. Tony has been appointed a member of the Company’s Audit & Risk and Remuneration and
Nomination Committees.
Appointment of Managing Director – Bardin Davis
Bardin Davis was appointed a non-executive director of the Company on 21 October 2020 and subsequently
commenced duties as Managing Director and Chief Executive Officer of the Company on 9 December 2020.
Appointment of Company Secretary and Chief Financial Officer – Phil Rundell
Phil Rundell was appointed Company Secretary and Chief Financial Officer to the Company on 16 December
2020.
Appointment of The Hon. Abdullah Mwinyi as a non-executive director
The Hon. Abdullah Mwinyi joined the board of Peak as non-executive director on 15 November 2020.
Appointment of Giselle Collins as a non-executive director*
Giselle Collins was appointed to the board of Peak as non-executive director on 9 March 2021. Giselle was
subsequently appointed to the role of Chair of the Company’s Audit & Risk Committee and is a member of the
Company’s Remuneration and Nomination Committee.
Appointment of Rebecca Morgan as a non-executive director*
Rebecca Morgan was appointed to the board of Peak as a non-executive director on 9 March 2021. Rebecca
was subsequently appointed as Chair of the Remuneration and Nomination Committee and is a member of the
Company’s Audit & Risk Committee.
*Ms Collins and Ms Morgan, having been appointed by other Directors on 9 March 2021, will retire in accordance
with the Constitution and Listing Rule 14.4 and being eligible, seek election from Shareholders at the Annual
General Meeting to be held later in 2021.
Other personnel changes
During the year the Company engaged an international recruitment firm to commence searches for key executive
roles. Following the year end the Company was pleased to announce the appointments of Head of Development
& Operations, Head of Technical Services, Consulting Metallurgist and General Manager, Corporate
Development & Finance. The Company is also in the final stages of negotiation with its preferred Head of
Marketing and Sales and hopes to make an announcement in October.
$4.35 million capital raising completed
A$3.5 million Placement
In October 2020, the Company completed a placement of 109,375,000 fully paid ordinary shares in the Company
at an issue price of A$0.032 per Share to sophisticated, professional and other exempt investors pursuant to
section 708 of the Corporations Act 2001 (Cth) to raise A$3.5 million before costs.
Share Purchase Plan Offer for $0.85 million
In addition to the placement, and to ensure wider shareholder participation by the Company’s existing loyal
shareholders, the Company made an offer to all eligible shareholders to participate in a Share Purchase Plan
29
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
(SPP) to raise up to A$0.85 million. The Shares offered under the SPP were priced at the same $0.032 per
Share price as the placement. The SPP closed on 17 November 2020 with 26,562,493 fully paid ordinary shares
in the Company issued to existing shareholders.
Exercise of Teesside option
On 28 May 2021 Peak exercised its option to enter a 250-year lease over its 19-hectare Teesside Refinery site
in the Tees Valley, United Kingdom. Peak paid an upfront amount of approximately £1.9 million to exercise the
option, with annual rent structured as a nominal peppercorn payment.
Peak intends to construct its Teesside Refinery on the site; producing Neodymium Praseodymium (“NdPr”) Oxide
and other separated products from rare earth concentrate supplied by the Company’s Ngualla Project in
Tanzania. The site is close to the deepwater Teesport and benefits from access to existing and competitive
infrastructure and utilities. It is also located within the Teesside designated Freeport area. Following recent
announcements by the UK Government, freeport areas are expected to benefit from lower tariffs and customs
charges, simplified customs procedures, and tax breaks to encourage investment and government support to
promote regeneration and innovation.
Ngualla Special Mining Licence Application
The Company continued its strong engagement with the Tanzanian Government during the year regarding its
Ngualla Project Special Mining Licence (“SML”) application.
Events Subsequent to Reporting Date
There were several key milestones related to the advancement of the Ngualla project that occurred subsequent
to the period end.
Approval of SML application
On 22 July 2021, the Company announced that the Cabinet of Ministers of the Tanzanian Government had
approved its SML application; the final major regulatory approval required for the Ngualla Project to proceed.
The SML provides the Company with the exclusive right to conduct mining operations at Ngualla, with the licence
area covering approximately 18.14km2. Peak will now work with the Tanzanian Government to finalise an
Economic Framework Agreement, Shareholder’s Agreement and other related documentation required as part
of a formal grant of the SML by the Minister of Minerals.
A$30.0 million Placement and A$4.0 million Share Purchase Plan
On 6 August 2021 the Company announced commencement of a two-tranche equity placement to sophisticated,
professional and other exempt investors pursuant to section 708 of the Corporations Act 2001. The Placement,
totalling A$30.0 million at a price of A$0.09 per share, comprises of:
- Tranche One - comprising of an A$20.4 million raising and the issuance of 226.8 million shares
completed on 13 August 2021, utilising Peak’s capacity to issue up to 15% new capital without
shareholder approval per Listing Rule 7.1; and
- Tranche Two - comprising of an additional A$9.6 million raising and the issuance of a further 106.4
million shares, subject to shareholder approval at the General Meeting called for 28 September 2021.
- Peak also announced a Shareholder Placement Plan (“SPP”) of up to A$4.0 million, which is subject to
shareholder approval at the General Meeting called for 28 September 2021.
The net proceeds of the Placement and SPP will be used by Peak to progress the development of the Ngualla
Project and the Teesside Refinery (including offtake and financing arrangements), expanding the Company’s
technical and marketing team, and the repayment of the ANRF Royalty Facility.
Repayment of the ANRF Royalty Facility
Contemporaneous to the placement and SPP announced on 6 August 2021, Peak also announced that it had
entered into a Royalty Repayment and Release Agreement (“Royalty Agreement) with respect to the repayment
of a 2.0% life of mine gross revenue royalty financing facility made available by ANRF Royalty Company Limited
(“ANRF”), a company associated with Peak substantial shareholder Appian Pinnacle Holdco Limited.
Under the Royalty Agreement, Peak will make a payment to ANRF of US$10.0 million, which comprises the
repayment of principal of US$5.2 million and an accrued interest payment of US$4.8 million. The Royalty
Agreement is subject to shareholder approval at the General Meeting called for 28 September 2021 pursuant to
ASX listing Rule 10.1
30
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than detailed below, in Note 27 of the financial statements (subsequent events) and in the Review of
Operations above, there were no significant changes in the state of affairs of the Company during the financial
year:
A total of 59,418,747 listed and un-listed options were exercised during the year with various exercise prices
and expiry dates raising $3.24 million. A further 15,017,000 vested performance rights were exercised for $nil
consideration.
During the year 4,829,240 shares were issued in lieu of cash consideration for wages and fees with a value of
$202,629. A further 8,250,000 shares were issued raising $435,000 under settlement deeds entered with ex-
employees.
MEETINGS OF DIRECTORS
The number of meetings attended by each Director of the Company during the financial year was:
Board Meetings
Number held
and entitled to
attend
23
13
8
6
6
7
17
3
Number
attended
22
13
5
6
6
7
16
3
Tony Pearson
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
Peter Meurer
Jonathan Murray
Robert Sennitt
An Audit and Risk Committee was formed during the year consisting of three non-executive directors. The
number of meetings attended by each member of the Committee during the financial year was:
Number
attended
Audit & Risk Committee Meetings
Number held
and entitled to
attend
1
1
1
1
1
1
Giselle Collins
Rebecca Morgan
Tony Pearson
EQUITY HOLDINGS OF DIRECTORS
As at the date of this report, the Directors’ interest in the Company were:
Performance Rights
3,250,000
16,250,000
1,000,000
-
-
Details of issues made to directors during the period are provided in the Remuneration Report.
Equity options
8,000,000
-
-
-
-
Equity shares
4,706,647
9,055,907
-
-
-
Tony Pearson
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
FUTURE DEVELOPMENTS
Likely future developments in the operations of the Group are referred to elsewhere in the Annual Report. Other
than as referred to in this report, further information as to likely developments in the operations of the Group
and expected results of those operations would, in the opinion of the Directors, be speculative.
31
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
ENVIRONMENTAL ISSUES
The Company is aware of its environmental obligations with regards to its exploration activities and the Teesside
refinery site and ensures that it complies with all regulations when carrying out any exploration work. The
directors of the Company are not aware of any breach of environmental regulations for the year under review.
The Directors have considered the National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which
introduced a single national reporting framework for the reporting and dissemination of information about the
greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations which
exceed specified thresholds. At the current stage of development, the Directors have determined that the NGER
Act has no effect on the Company for the current or subsequent financial year. The Directors will reassess this
position as and when the need arises.
REMUNERATION REPORT (AUDITED)
The remuneration report outlines the director and executive remuneration arrangements for the Group in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Remuneration Policy
The remuneration policy of the Company has been designed to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component which is assessed on an
annual basis in line with market rates and offering specific long-term incentives based on key performance
areas affecting the Company’s financial results.
The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain
the best directors and executives to manage the Company.
The Board’s policy for determining the nature and amount of remuneration for Board members and senior
executives of the Company is as follows:
A Remuneration and Nomination Committee was formed post year end to review the remuneration policy
that sets the terms and conditions for the executive directors and other senior executives. All executives
receive a base salary (which is based on factors such as length of service, expertise and experience) and
superannuation is paid for Australian resident employees and directors. The Company reviews executive
packages annually by reference to the Company’s performance, executive performance and comparable
information from industry sectors and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses, performance rights and
options. The policy is to attract the highest calibre of executives and reward them for performance that results
in long-term growth in shareholder wealth. Executives and employees are also entitled to participate in the
employee share and option arrangements.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for
time, commitment and responsibilities. The Board determines payments to the non-executive directors and
reviews their remuneration annually, based on market practice, duties and accountability. Independent
external advice is sought when required to align directors’ interests with shareholder interests, the directors
are encouraged to hold shares in the Company and subject to shareholders approval are able to participate
in the employee option and performance rights plans. Non-executive directors are provided superannuation
benefits in accordance with Australian statutory requirements, where the Non-Executive Director is a non-
Australian resident the superannuation benefit is provided as an additional fee.
All remuneration paid to directors and executives is valued at the cost to the Company and expensed. Shares
given to directors and executives are valued at the difference between the market price of those shares and
the amount paid by the director or executive. Options and performance rights are valued using the Black-
Scholes methodology. Details of options and performance rights provided to directors are detailed in the
Remuneration Report.
Non-executive director remuneration
The total remuneration of non-executive directors has been set at a maximum of $300,000 (that excludes
share-based payments) as approved by shareholders at the 26 November 2015 annual general meeting.
32
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Performance based remuneration
The Company continues to review and consider the inclusion of performance based remuneration component
built into director and executive remuneration packages.
The Company received approval from shareholders for adoption of an Incentive Employee Option Plan
(EOP), Incentive Performance Rights Plan (PRP), and Director Fee Plan at the Annual General Meeting on
23 December 2020.
The objectives of the EOP and PRP are to attract, motivate and retain key employees and the Company
considers that the adoption of the Plans and the future issue of securities under the Plans will provide selected
employees with the opportunity to participate in the future growth of the Company.
The objective of the Director Fee Plan is to permit the issue of Shares in lieu of Director salaries and fees
which would otherwise be payable in cash, consistent with the Company’s restructure remuneration model
adopted in October 2020.
Following shareholder approval at the Annual General Meeting held on 21 December 2020, the company
issued the following incentive performance rights expiring 5 February 2025 with an exercise price of $nil to
directors with the vesting milestones set out below.
Class
Bardin Davis Tony Pearson
Jonathan
Murray
Abdullah
Mwinyi
Class A.1 Performance Rights
Class A.2 Performance Rights
Class B Performance Rights
Class C.1 Performance Rights
Class C.2 Performance Rights
Class D Performance Rights
Class E.1 Performance Rights
Class E.2 Performance Rights
Class F Performance Rights
Class G Performance Rights
1,875,000
1,875,000
3,750,000
1,875,000
1,875,000
3,750,000
1,875,000
1,875,000
3,125,000
3,125,000
375,000
375,000
750,000
375,000
375,000
750,000
375,000
375,000
625,000
625,000
75,000
75,000
150,000
75,000
75,000
150,000
75,000
75,000
125,000
125,000
75,000
75,000
150,000
75,000
75,000
150,000
75,000
75,000
125,000
125,000
Total
25,000,000
5,000,000
1,000,000
1,000,000
The Performance Rights shall have the following vesting criteria (each, a Milestone) attached to them:
(i)
Class A Performance Rights: Class A Performance Rights shall vest:
(A)
(B)
Class A.1 Performance Rights: on the Company announcing grant of the Special Mining
Licence (SML) by the Tanzanian Government for the Ngualla Rare Earth Project (Project);
and
Class A.2 Performance Rights: on the Company announcing the execution of a binding
framework agreement with respect to the Project.
(ii)
Class B Performance Rights: Class B Performance Rights shall vest on the Company announcing
a Teesside solution being one or more of the following:
(A)
(B)
(C)
the Company entering into an agreement to purchase the land at Teesside currently the
subject of option;
the Company entering into an agreement for a site swap of the current Teesside location
on terms which include (without limitation) recovery of sunk costs and full permitting of the
new site; or
the Company entering an agreement securing an alternate site (to Teesside) for the
establishment of a rare earth processing hub.
(iii)
Class C Performance Rights: Class C Performance Rights shall vest:
(A)
(B)
Class C.1 Performance Rights: on the Company announcing the commencement of
FEED activities by the Company in relation to a rare earths processing hub; and
Class C.2 Performance Rights: on the Company announcing that it has commenced
construction of a rare earth processing hub.
33
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
(iv)
Class D Performance Rights: Class D Performance Rights shall vest on the Company announcing
that it has executed a binding agreement with:
(A)
(B)
a strategic partner for the development of the Project; or
with an external party for the financing of the development of the Project.
(v)
Class E Performance Rights: Class E Performance Rights shall vest on the Company’s Share
price achieving a volume average weighted price (VWAP) of:
(A)
(B)
Class E.1 Performance Rights: greater than 10 cents over 20 consecutive trading days;
and
Class E.2 Performance Rights: greater than 15 cents over 20 consecutive trading days.
(vi)
Class F Performance Rights: Class F Performance Rights shall vest on the later to occur of:
(A)
(B)
any of one or more of the Milestones set out in paragraphs (a)(i)(A) or (B), (a)(ii), (a)(iii)(A)
or (B) or (a)(iv) being satisfied; and
the Company’s Share price achieving a VWAP of greater than 10 cents over 20
consecutive trading days; and
(vii)
Class G Performance Rights: Class G Performance Rights shall vest on the later to occur of:
(A)
(B)
any of one or more of the Milestones set out in paragraphs (a)(i)(A) or (B), (a)(ii), (a)(iii)(A)
or (B) or (a)(iv) being satisfied; and
the Company’s Share price achieving a VWAP of greater than 15 cents over 20
consecutive trading days.
The Board considers that the achievement of these milestones will deliver increased shareholder wealth.
During the year class B, E1 and F milestones were met resulting in the vesting of 10,925,000 performance
rights, with 350,000 remaining unexercised at the end of the year.
During the 2019 financial year the Board approved a Long Term Incentive Scheme (LTIS) and Short Term
Incentive Scheme (STIS) with issues made under the EOP and PRP respectively. On 8 September 2020,
4,600,000 STIS performance rights with a expiry date for 8 September 2021 and an exercise price of $nil
and 7,600,000 LTIS performance rights with a expiry date for 8 September 2024 and an exercise price of $nil
were issued to executives.
The STIS Performance Rights vest on achievement of the following performance criteria;
Class A.1 17% by number on the receipt by the Company of the Special Mining Licence (SML) from the
Tanzanian Government for the Ngualla Rare Earth Project (Project).
Class A.2 17% by number on the presentation of a framework agreement received from the Tanzanian
Government with respect to the Project that, in the opinion of the Board provides sufficient certainty on the
legislative and fiscal terms apply to the Company’s operations that allows the Company to engage with
external parties in relation to the potential financing of the Project.
Class B 33% by number on completion of an equity capital raising of a minimum amount of AUD$1.5 million
for the Company on or before 31 December 2020.
Class C 33% by number on a Teesside solution being one or more of the following:
(A) the Company entering into an agreement to purchase the land at Teesside currently the subject of
option; (B) the Company entering into an agreement for a site swap of the current Teesside location on
terms which include (without limitation) recovery of sunk costs and full permitting of the new site; or (C) the
Company entering an agreement securing an alternate site (to Teesside) for the establishment of a rare
earth processing hub.
The vesting criteria must have been met by 8 September 2021. There were no vested and unvested STIS
performance rights issued to executives on issue at 30 June 2021.
1,518,000 STIS performance rights issued to executives vested and were exercised during the year.
34
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
The LTIS Performance Rights vest on achievement of the following performance criteria:
Class D.1 12.5% by number on the receipt by the Company of the Special Mining Licence (SML) from the
Tanzanian Government for the Ngualla Rare Earth Project (Project)
Class D.2 12.5% by number on the execution of a binding framework agreement between the Tanzanian
Government and PRNG Minerals Ltd (the Tanzanian operating subsidiary of the Company) with respect to
the Project.
Class E 25% by number on the commencement of FEED activities by the Company.
Class F 25% by number on the Company agreeing terms with an external party for the financing of a rare
earth processing hub at Teesside in the United Kingdom or entering alternative arrangements for the creation
of a rare earth processing hub in a different geographic location.
Class G 25% by number on the Company signing of a binding agreement with a strategic partner for the
Further Development of the Project.
The vesting criteria must be met by 8 September 2024 otherwise the Performance Rights will lapse. There
were no vested and unvested LTIS performance rights issued to executives on issue at 30 June 2021.
No LTIS performance rights vested during the year.
Subsequent to cessation of service to the Company the following unlisted options and performance rights
issued to former directors and executives lapsed or were cancelled:
Lapsed:
• 8,000,000 unlisted options with an exercise price of $0.10
• 20,000,000 unlisted options with an exercise price of $0.15
• 11,607,000 performance rights with an exercise price of $nil
Cancelled:
• 7,500,000 unlisted options with an exercise price of $0.065
• 2,250,000 unlisted options with an exercise price of $0.035
• 25,975,000 unlisted options with an exercise price of $0.030
Company performance, shareholder returns and director’s and executive’s remuneration
Summary of group's performance and movements in Peak Resources Limited's share price over the last five
years:
Total income ($)
Net profit/(loss) before tax ($)
Net profit/(loss) after tax ($)
2021
111,008
(4,770,848)
(4,770,848)
2020
12,374,452
7,652,714#
7,652,714#
2019
98,795
(4,596,053)
(4,596,053)
2018
618,718
(4,903,224)
(4,903,224)
2017
1,861,274
(4,886,187)
(4,886,187)
Closing share price at end of year
(cents)
Basic profit/(loss) per share (cents)
Dividends per share (cents)
$0.10
(0.31)
-
$0.021
$0.048
$0.036
$0.067
0.65
-
(0.58)
-
(0.82)
-
(1.04)
-
# Includes gain on remeasurement of financial liabilities of $1.7million (note 19) and gain on derecognition of associate
$10.4million (note 4).
The remuneration policy has been tailored to increase goal congruence between shareholders and directors
and executives. Currently, this is facilitated through a policy to issue options and in some instances
performance rights to the majority of directors and executives to encourage the alignment of personal and
shareholder interests. The Company believes the policy will be effective in increasing shareholder wealth.
Details of directors and executives interests in shares and options at year end are detailed below.
Details of KMP remuneration
The relevant Key Management Personnel (KMP) of the group for the 2021 financial year were:
• Tony Pearson – Chair (appointed Chair 21 October 2020, Non-Exec Director from 21 Aug 2018)
• Bardin Davis - Managing Director (MD) (appointed Non-Exec Director 21 Oct 2020, MD from 9 Dec
2020)
• Abdullah Mwinyi - Non-Executive Director (appointed 15 November 2020)
35
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
• Giselle Collins - Non-Executive Director (appointed 9 March 2021)
• Rebecca Morgan - Non-Executive Director (appointed 9 March 2021)
• Peter Meurer – Non-Executive Chair (Resigned 16 September 2020)
•
Jonathan Murray – Non-Executive Director (Resigned 8 March 2021)
• Robert Sennitt – Non-Executive Director (Resigned 11 September 2020)
• Philip Rundell - Chief Financial Officer & Company Secretary (Appointed 16 December 2020)
• Rocky Smith – Chief Executive Officer (Ceased employment 8 December 2020)
• Michael Prassas – General Manager Sales & Marketing (Ceased employment 15 July 2020)
• Graeme Scott– Chief Financial Officer & Company Secretary (Ceased employment 18 December 2020)
• Lucas Stanfield – General Manager of Development (Ceased employment 15 January 2020)
Total KMP remuneration for the year was:
Salary and fees
Non-monetary benefits
Superannuation
Share based payments
Termination Payments
Total
2021
$
1,078,312
18,240
80,163
787,526
191,661
2020
$
1,304,150
88,048
69,825
305,485
-
2,155,902
1,767,508
36
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Remuneration of individual KMP’s were:
30-Jun-21
Directors
Tony Pearson1
Bardin Davis2
Abdullah Mwinyi3
Giselle Collins4
Rebecca Morgan5
Peter Meurer6
Jonathan Murray 7
Robert Sennitt8
Executives
Philip Rundell9
Rocky Smith10
Michael Prassas11
Graeme Scott12
Lucas Stanfield13
Short term benefits
Salary &
f
*
$
Non-
t
$
Post-
employment
Superannuatio
*
$
Share based payments
Performance
^ Ri ht
$
Options^
$
Termination
Payments
Total
Proportion related to:
$
T t l
$
Equity#
%
Performance
#
%
133,476
204,232
35,284
15,457
15,457
10,556
42,345
3,332
460,139
-
-
-
-
-
-
-
-
-
19,759
19,380
-
1,468
1,468
-
-
-
42,075
137,785
688,923
27,557
-
-
-
4,500
-
858,765
28,332
-
-
-
-
(110,220)
(45,517)
-
(127,405)
-
-
-
-
-
-
-
-
-
319,352
912,535
62,841
16,925
16,925
(99,664)
1,328
3,332
1,233,574
9%
0%
0%
0%
0%
0%
0%
0%
2%
43%
75%
44%
0%
0%
0%
11%
0%
62%
62,317
162,121
61,180
153,144
179,411
618,173
1,078,312
-
6,500
11,740
-
-
18,240
18,240
-
-
12,865
14,143
11,080
38,088
80,163
-
-
-
28,083
28,083
56,166
914,931
-
-
-
-
-
-
(127,405)
-
-
163,462
28,199
-
191,661
191,661
62,317
168,621
249,247
223,569
218,574
922,328
2,155,902
0%
14%
13%
15%
14%
0%
1%
0%
0%
0%
0%
0%
6%
40%
Total
* The Company’s executive team agreed to a 50% deferral in their contracted cash remuneration and the Company’s Directors agreed to defer a 100% of their Directors’ fees for
four months for the period 1 April 2020 to 31 July 2020. As at 30 June 2020 the gross deferred amounts owing to Directors and Executives reported in trade and other payables
totalled $190,323. The deferred executive remuneration and Directors fees was settled in equity based on $0.0342 Per Ordinary Fully Paid Share calculated based on the 5 day
VWAP up to and including 6 August 2020 for a total value of consideration $128,662, this amount is net of PAYG withholding tax obligations due on the deferred amounts. The
gross deferred amounts are excluded from the salary and fees for 2021 as they have been accrued and reported in 2020.
^Includes the write back of the share-based payments previously recognised for options and performance rights that lapsed during the current period.
#The % excludes the value of the options which were written back during the year
1 Mr Pearson received $54,666 for additional executive services the net amount after PAYG withholding tax obligations was settled in shares and is included in salary and fees.
From 1 November to 30 June 2021 two thirds of Mr Pearson’s Chair fees were agreed to be settled in shares totalling $51,383 and are included in salary and fees. Mr Pearson
was back paid $8,082 in statutory superannuation entitlements for previous periods where the Company had not met this obligation.
2 Mr Davis was appointed in the role of non-executive director on 21 October 2020 before transitioning to the Managing Director position on 9 December 2020. Mr Davis’ non-
executive director fees totalled $6,720 the net amount after PAYG withholding tax obligations was settled in shares. Mr Davis ESA stipulated that $75,000 per year of his total
Managing Director fees were to be paid in shares, during the year Mr Davis earnt $42,030 as part of his equity component of his salary the net amount after PAYG withholding
tax obligations was settled in shares. The share settled fees are included in salary and fees for the period.
3 Mr Mwinyi was appointed to the role of non-executive director on 15 November 2020
4 Ms Collins was appointed to the role of non-executive director on 9 March 2021
5 Ms Morgan was appointed to the role of non-executive director on 9 March 2021
6 Mr Meurer ceased employment with the company on 16 September 2020. On cessation of employment Mr Meurer’s unvested performance-based options lapsed and the
expensed share-based payments recognised under AASB 2 of $110,220 for those options reversed.
7 Mr Murray ceased employment with the company on 8 March 2021. Mr Murray received $12,773 in fees for additional executive services, payment of which was settled in
37
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
shares. The share settled fees are included in Salary and fees for the period. On cessation of employment Mr Murry’s unvested performance-based options lapsed and the
expensed share-based payments recognised under AASB 2 of $45,517 for those options reversed.
8 Mr Sennitt ceased employment with the company on 11 September 2020.
9 Mr Rundell was appointed to the role of CFO and Company Secretary on 16 December 2020.
10 Mr Smith ceased employment with the company on 8 December 2020.
11 Mr Prassas ceased employment with the company on 15 July 2020, in accordance with the terms of his ESA, Mr Prassas received a termination payment of $125,000 for 6
months’ notice paid in lieu plus other statutory redundancy entitlements. The unused annual leave paid out on termination totalled $50,764 and is included in his salary and fees.
12 Mr Scott ceased employment with the company on 18 December 2020, in accordance with the terms of his ESA, Mr Scott received a termination payment of $28,199 for his
notice paid in lieu plus other statutory redundancy entitlements. The unused annual leave paid out on termination totalled $32,318 and is included in his salary and fees.
13 Mr Stanfield ceased employment with the company on 15 December 2020.
Remuneration of individual KMP’s were:
Short term benefits
Salary &
f
*
$
Non-
t
$
Post-
employment
Superannuatio
*
$
Share based payments
Performance
Ri ht
$
Options
$
Termination
Payments
$
50,000
40,000
18,415
40,000
31,644
180,059
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
54,367
22,452
-
57,164
(23,065)
110,918
-
-
-
-
-
-
Total
Proportion related to:
T t l
$
104,367
62,452
18,415
97,164
8,579
290,977
Equity#
%
Performance
#
%
52%
36%
0%
59%
0%
38%
0%
0%
0%
0%
0%
0%
389,091
250,000
250,000
235,000
1,124,091
1,304,150
49,297
38,751
-
-
88,048
88,048
-
23,750
23,750
22,325
69,825
69,825
(3,914)
(2,516)
(2,516)
(2,237)
(11,183)
(11,183)
70,178
46,254
46,254
43,064
205,750
316,668
-
-
-
-
-
-
504,652
356,239
317,488
298,152
1,476,531
1,767,508
14%
13%
15%
14%
14%
18%
0%
0%
0%
0%
0%
0%
Total
# The % excludes the value of the options which were written back during the year.
* The Company’s executive team agreed to a 50% deferral in their contracted cash remuneration and the Company’s Directors agreed to defer a 100% of their Directors’ fees
for four months for the period 1 April 2020 to 31 July 2020. As at 30 June 2020 the gross deferred amounts owing to Directors and Executives reported in trade and other
payables and reported in the table above totalled $190,323. The deferred executive remuneration and Directors fees was settled in equity based on $0.0342 Per Ordinary Fully
Paid Share calculated based on the 5 day VWAP up to and including 6 August 2020 for a total value of consideration $128,662, this amount is net of PAYG withholding tax
obligations due on the deferred amounts.
1 Mr Jetter ceased service with the company on 15 January 2020.
2 Mr Sennitt was appointed 15 January 2020.
3 Mr Smith has a salary of $377,775 and also received an insurance allowance of $11,316 under his employment contract.
30-Jun-20
Directors
Peter Meurer
Jonathan Murray
Robert Sennitt2
Tony Pearson
John Jetter1
Executives
Rocky Smith3
Michael Prassas
Graeme Scott
Lucas Stanfield
38
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Options and performance rights granted / vested / lapsed during the year ended 30 June 2021
Movements in options during the year:
30-Jun-21
Date of issue
Number of
options
issued
Fair value per
Option*
Total value of
issue $
Vesting Date# Exercise Price Expiry Date
Number
vested during
the year
Directors
Tony Pearson
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
Peter Meurer
Jonathan Murray
Executives
Rocky Smith
Michael Prassas
Graeme Scott
Lucas Stanfield
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
--
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$0.10
$0.15
$0.10
$0.15
$0.065
$0.035
$0.030
$0.065
$0.030
$0.065
$0.035
$0.030
$0.065
$0.030
-
-
-
-
-
-
21-Jun-22
21-Jun-23
21-Jun-22
21-Jun-23
16-Jan-21
17-Jan-22
5-Mar-23
16-Jan-21
5-Mar-23
16-Jan-21
17-Jan-22
5-Mar-23
16-Jan-21
5-Mar-23
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
* Options are valued using the Black-Scholes option pricing model on date of grant.
# Unvested Options vest on achievement of length of service criteria.
Number
lapsed/
cancelled
during the
-
-
-
-
-
(5,000,000)
(15,000,000)
(3,000,000)
(5,000,000)
(28,000,000)
(3,000,000)
(1,500,000)
(11,000,000)
(1,500,000)
(4,350,000)
(1,500,000)
(750,000)
(7,250,000)
(1,500,000)
(3,375,000)
(35,725,000)
(63,725,000)
39
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Movements in performance rights during the year:
30-Jun-21
Date of issue
Number of
performance
rights issued
Fair value per
performance
right*
Total value of
issue $
Vesting Date# Exercise Price Expiry Date
Directors
Tony Pearson
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
Peter Meurer
Jonathan Murray
Robert Sennitt
Executives
Philip Rundell
Rocky Smith
Michael Prassas
Graeme Scott
Lucas Stanfield
5-Feb-21
5-Feb-21
5-Feb-21
-
-
-
5-Feb-21
-
-
5,000,000
25,000,000
1,000,000
-
-
-
1,000,000
-
32,000,000
-
-
-
8-Sep-20
8-Sep-20
8-Sep-20
8-Sep-20
-
-
-
-
-
2,300,000
3,800,000
2,300,000
3,800,000
12,200,000
44,200,000
$0.06
$0.06
$0.06
-
-
-
$0.06
-
-
-
-
$0.037
$0.037
$0.037
$0.037
300,000
1,500,000
60,000
-
-
-
60,000
-
1,920,000
-
-
-
85,100
140,600
85,100
140,600
451,400
2,371,400
28-May-21
28-May-21
28-May-21
-
-
-
5-Mar-21
-
-
-
-
17-Nov-20
-
17-Nov-20
-
$nil
$nil
$nil
-
-
-
$nil
-
-
-
$nil
$nil
$nil
$nil
5-Feb-25
5-Feb-25
5-Feb-25
-
-
-
5-Feb-25
-
-
-
8-Sep-21
8-Sep-24
8-Sep-21
8-Sep-24
Number
vested during
the year
Number
lapsed/
cancelled
during the
1,750,000
8,750,000
350,000
-
-
-
75,000
-
10,925,000
(925,000)
(925,000)
-
-
-
759,000
-
759,000
-
1,518,000
12,443,000
(1,541,000)
(3,800,000)
(1,541,000)
(3,800,000)
(10,682,000)
(11,607,000)
Total
* Performance Rights are valued using the Black-Scholes option pricing model on date of grant.
# The unvested Performance Rights to vest on achievement of performance criteria, as determined by the Company’s Board, by 5 February 2025 or the Performance Rights will
lapse. For vesting of performance rights with the same expiry date occurring on multiple dates during the period the most recent date is reported in the table.
Options and performance rights granted / vested / lapsed during the year ended 30 June 2020
Movements in options during the year:
30-Jun-20
Date of issue
Directors
Peter Meurer
Jonathan Murray
John Jetter1
Tony Pearson
-
-
-
11-Nov-19
11-Nov-19
11-Nov-19
Number of
options
issued
-
-
-
2,000,000
3,000,000
5,000,000
Fair value per
Option*
Total value of
issue $
Vesting Date# Exercise Price Expiry Date
Number
vested during
the year
Number
lapsed/
cancelled
during the
-
-
-
$0.0144
$0.0111
$0.0112
-
-
-
28,754
33,399
56,205
-
-
-
11-Nov-19
21-Jun-22
21-Jun-23
-
-
-
$0.0500
$0.1000
$0.1500
-
-
-
21-Jun-21
21-Jun-22
21-Jun-23
-
-
-
2,000,000
-
-
-
-
-
-
-
-
40
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
-
-
10,000,000
-
-
-
-
-
10,000,000
-
118,358
-
-
-
-
-
118,358
5-Mar-20
5-Mar-20
5-Mar-20
5-Mar-20
$0.030
$0.030
$0.030
$0.030
5-Mar-23
5-Mar-23
5-Mar-23
5-Mar-23
Total
* Options are valued using the Black-Scholes option pricing model on date of grant.
# Unvested Options vest on achievement of length of service criteria.
1Mr Jetter resigned 15 January 2020.
2Mr Sennitt was appointed 15 January 2020.
No performance rights were granted during the year.
Movements in performance rights during the year:
30-Jun-20
Date of issue
Number of
performance
rights issued
Fair value per
performance
right*
Total value of
issue $
Vesting Date# Exercise Price Expiry Date
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5-Mar-20
5-Mar-20
5-Mar-20
5-Mar-20
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5-Mar-21
5-Mar-21
5-Mar-21
5-Mar-21
Robert Sennitt2
Executives
Rocky Smith
Michael Prassas
Graeme Scott
Lucas Stanfield
Directors
Peter Meurer
Darren Townsend
Jonathan Murray
John Jetter
Tony Pearson
Executives
Rocky Smith
Michael Prassas
Graeme Scott
Lucas Stanfield
-
-
-
-
-
-
-
-
-
-
-
-
Total
* Performance Rights are valued using the Black-Scholes option pricing model on date of grant.
# The unvested Performance Rights to vest on achievement of performance criteria, as determined by the Company’s Board, by 5 March 2020 or the Performance Rights will
lapse.
-
2,000,000
11,000,000
7,250,000
7,250,000
6,750,000
32,250,000
34,250,000
-
-
-
-
-
-
-
-
Number
vested during
the year
Number
lapsed/
cancelled
during the
-
-
-
-
-
-
-
-
-
-
-
-
700,000
450,000
450,000
400,000
2,000,000
2,000,000
(2,800,000)
(1,800,000)
(1,800,000)
(1,600,000)
(8,000,000)
(8,000,000)
41
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Shareholdings of KMP’s
30-Jun-21
Opening Balance
Granted as
Remuneration
Exercise of
Options/PRs
Other Movements Closing Balance
Directors
Tony Pearson
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
Peter Meurer*
Jonathan Murray*
Robert Sennit*
Executives
Philip Rundell
Rocky Smith*
Michael Prassas*
Graeme Scott*
Lucas Stanfield*
-
-
-
-
-
1,250,000
2,638,753
-
3,888,753
883,056
204,260
-
-
-
487,365
615,399
389,822
2,579,902
3,750,000
8,750,000
-
-
-
-
2,075,000
-
14,575,000
-
-
-
-
-
(1,737,365)
(5,329,152)
(389,822)
(7,456,339)
-
1,249,989
5,083,334
325,000
-
6,658,323
10,547,076
-
984,934
-
651,808
612,686
2,249,428
4,829,330
-
700,000
450,000
1,209,000
1,159,000
3,518,000
18,093,000
-
(2,934,923)
(5,533,334)
(2,185,808)
(1,771,686)
(12,425,751)
(19,882,090)
Total
* Ceased to be KMP’s during the period and their holdings are not reported at period end.
4,633,056
8,954,260
-
-
-
-
-
-
13,587,316
-
-
-
-
-
-
13,587,316
42
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Option Holdings of KMP’s including performance rights
30-Jun-21
Opening Balance
Granted as
Remuneration
Exercise of
Options & PRs
Expired/ Lapsed Other Movements Closing Balance Vested at 30 June
Directors
Tony Pearson
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
Peter Meurer*
Jonathan Murray*
Robert Sennitt*
Executives
Philip Rundell
Rocky Smith*
Michael Prassas*
Graeme Scott*
Lucas Stanfield*
10,000,000
-
-
-
-
30,000,000
10,000,000
-
50,000,000
5,000,000
25,000,000
1,000,000
-
-
-
1,000,000
-
32,000,000
(3,750,000)
(8,750,000)
-
-
-
-
(2,075,000)
-
(14,575,000)
-
16,200,000
10,616,667
9,950,000
9,400,000
46,166,667
96,166,667
-
-
-
6,100,000
6,100,000
12,200,000
44,200,000
- .
(700,000)
(450,000)
(1,209,000)
(1,159,000)
(3,518,000)
(18,093,000)
Total
* Ceased to be KMP’s during the period and their holdings are not reported at period end.
-
-
-
-
-
(20,000,000)
(8,925,000)
-
(28,925,000)
-
(15,500,000)
-
(5,341,000)
(5,341,000)
(26,182,000)
(55,107,000)
-
-
-
-
-
(10,000,000)
-
-
(10,000,000)
-
-
(10,166,667)
(9,500,000)
(9,000,000)
(28,666,667)
(38,666,667)
11,250,000
16,250,000
1,000,000
-
-
-
-
-
28,500,000
-
-
-
-
-
-
28,500,000
-
-
350,000
-
-
-
-
-
350,000
-
-
-
-
-
-
350,000
43
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Performance income as a proportion of total income
No bonuses have been paid to executives during the year.
Service agreements:
The key terms of the service agreements with the KMP’s are:
Tony Pearson (Appointed acting Chair 16 September 2020 and confirmed as Chair 21 October 2020)
Chair Fees are currently set at $95,000 plus superannuation entitlements per annum effective 21 October 2020
($50,000 per annum previously).
Under Tony’s voluntary letter of agreement with the Company, two thirds of his annual directors’ fees were settled in
shares quarterly to 30 June 2021, with the issue price based on the 20 day VWAP of the Company’s share price to
the end of the respective quarter.
Peter Meurer – Non-Executive Chairman (Appointed 23 April 2018, Resigned 16 September 2020)
Under Peter’s agreement annual directors’ fees of $50,000 effective 23 April 2018 were payable.
Non-Executive Directors - Jonathan Murray (Resigned 8 March 2021) / Tony Pearson (Appointed acting Chair
21 October 2020) / Robert Sennitt (Appointed 15 January 2020, Resigned 11 September 2020) / Bardin Davis
(Appointed 21 October 2020, transitioned to MD 9 December 2020)/ Abdullah Mwinyi (Appointed 15 November
2020)/ Giselle Collins (Appointed 9 March 2021)/ Rebecca Morgan (Appointed 9 March 2021)
Non-Executive Directors are appointed by letter agreement with no fixed term ceasing on resignation or removal as
a director in accordance with the Corporations Act 2001. Fees are currently set at $50,000 plus superannuation
entitlements per annum effective 18 September 2020 ($40,000 per annum previously), non-resident directors are
entitled to receive the superannuation component as fees.
Under Jonathan Murray’s voluntary letter of agreement with the Company, two thirds of his annual directors’ fees are
to be settled in shares quarterly, with the issue price based on the 20day VWAP of the Company’s share price to the
end of the respective quarter.
Bardin Davis – Managing Director - (Appointed MD 9 December 2020)
Bardin is employed under an Executive Service Agreement (ESA). The agreement provides for an annual salary of
$350,000 plus statutory superannuation capped at the concessional contribution threshold. Under the terms of the
ESA, $75,000 of the annual salary after deducting PAYG withholding tax obligations, was settled in shares quarterly
to 30 June 2021, with the issue price based on the 20 day VWAP of the Company’s share price to the end of the
respective quarter. Bardin has been issued 25,000,000 performance rights under the ESA. Bardin is entitled to leave
in accordance with the relevant legislation. The engagement had no fixed term but is subject to a six-month notice
period from either party.
Philip Rundell – CFO & Company Secretary (Appointed 16 December 2020)
Philip is employed under a consulting agreement with the Company. The agreement allows for an hourly charge rate
of $200 per hour to a maximum of $1,500 per day. The engagement has no fixed term and is subject to a 15 day
notice period from either party.
Rocky Smith – Chief Executive Officer - (Transitioned from COO to CEO 21 September 2017, ceased
employment 8 December 2020)
Rocky was employed under an Executive Service Agreement (ESA). The agreement provided for an annual salary
of $377,775 inclusive of superannuation, plus private health and life cover insurance, annual airfares, expenses,
discretionary performance bonuses and options. The Executive was entitled to leave in accordance with the relevant
legislation. The engagement had no fixed term but was subject to a six-month notice period from either party. Mr
Smith ceased employment with the Company on 11 September 2020.
Michael Prassas – Executive General Manager Sales, Marketing and Business Development (appointed 18
February 2016, ceased employment 15 July 2020)
Michael was employed under an ESA. The agreement provided for an annual salary of $250,000, plus
superannuation, plus private health, annual airfares, expenses, discretionary performance bonuses and options. The
Executive was entitled to leave in accordance with the relevant legislation. Michael’s engagement had no fixed term
but is subject to a six month notice period from either party. Mr Prassas ceased employment with the Company on
15 July 2020.
44
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Lucas Stanfield – Development Manager (appointed executive 2 October 2017, resigned 15 December 2020)
Lucas was employed under an ESA. The agreement provided for an annual salary of $265,000 effective 1 September
2020, plus superannuation, expenses, discretionary performance bonuses and eligibility for options. The Executive
was entitled to leave in accordance with the relevant legislation. Lucas’s engagement had no fixed term but was
subject to a three month notice period from either party except six months’ notice following a change of control
termination. Mr Stanfield resigned on 15 December 2020.
Graeme Scott – CFO & Company Secretary (appointed 3 November 2014, ceased employment 18 December
2020)
Graeme was employed under an ESA. The agreement provided for an annual salary of $265,000 effective 1
September 2020, plus superannuation, expenses, discretionary performance bonuses and eligibility for options. The
Executive was entitled to leave in accordance with the relevant legislation. Graeme’s engagement had no fixed term
but was subject to a three month notice period from either party except six months’ notice following a change of
control termination. Mr Scott ceased employment with the Company on 18 December 2020.
Related party transactions
During the year, Steinepreis Paganin Lawyers and Consultants, a legal practice associated with Mr Jonathan Murray
received $89,677 (2020: $139,723) as fees for the provision of legal advice. The balance outstanding at 30 June
2021 and included in trade creditors is $1,183 (30 June 2020: $7,428).
These costs have not been included in directors remuneration as these fees were not paid to the individual director
in relation to the management of the affairs of the Company. All transactions were entered into on normal commercial
terms.
(End of Remuneration Report)
OPTIONS AND PERFORMANCE RIGHTS
At the date of this report Listed options on issue are:
CODE
PEKOD
Expiry Date
14 April 2022
Exercise Price
Number under option
$0.03
81,541,253
Unissued ordinary shares of the Company under option to directors, employees and contractors are:
Expiry Date
Exercise Price
$0.10
$0.15
$0.035
$0.03
* Vesting subject to length of service and milestone criteria.
21 June 2022
21 June 2023
17 January 2022
5 March 2023
Number under option
3,000,000*
5,000,000*
2,375,000
9,790,000
There are no unissued ordinary shares of the Company under option to service providers.
During the year a total of 59,418,747 listed and unlisted options were exercised at various exercise prices. A
total of 75,169,419 unlisted options with exercises prices ranging from $0.03 to $0.15 lapsed, were cancelled,
or expired unexercised. No options were issued.
Details of options movements during the year are detailed in the Remuneration Report and note 22 to this
report.
At the date of this report Performance Rights on issue to directors and employees are:
Expiry Date
Exercise Price
5 February 2025
$Nil
Number of Performance
Rights
20,632,000
During the year 47,000,000 performance rights were issued to directors and employees of the Company. A
total of 15,017,000 vested performance rights were exercised for nil consideration and a total of 12,545,000
performance rights lapsed, were cancelled, or expired.
45
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Option or rights holders do not have any right, by virtue of the option or right to participate in any share issue
of the Company or any related body corporate.
INDEMNIFYING OFFICERS OR AUDITOR
During the financial year, the company paid a premium in respect of a contract insuring the directors and
officers of the Company and related body corporates against a liability incurred as a director, secretary or
executive officer 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.
The Company has not otherwise, during or since the end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnify an officer or auditor of the Company or of any related body corporate
against a liability incurred as an officer or auditor.
To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of
the terms of its audit engagement agreement against claims by third parties arising from the audit (for an
unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial
year.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied to the court under legislation such as section 237 of the Corporations Act of Australia
for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the
company is a party, for the purpose of taking responsibility on behalf of the company for all or part of those
proceedings. No proceedings have been brought or intervened in on behalf of the consolidated entity with leave
of the court under such legislation.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2021 has been received and can be
found immediately following this Directors’ report.
No amounts have been paid or payable to the auditor for non-audit services, payments to the auditors are set
out in Note 5 to the Financial Statements.
The Board of Directors is satisfied that the provision of non-audit services performed during the year by the
Company’s auditors is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The directors are satisfied that the services did not compromise the external auditor’s
independence for the following reason:
•
•
All non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
The nature of the services provided does not compromise the general principles relating to auditors
independence as set out in the APES 110 (Code of Ethics for Professional Accountants).
The Directors’ report is signed in accordance with a resolution of Directors made pursuant to s.298(2) of the
Corporations Act 2001.
On behalf of the Directors,
Tony Pearson
Non-executive Chair
Sydney, 15 September 2021
46
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
AUDITOR’S INDEPENDENCE DECLARATION
47
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT
48
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
49
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
50
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
51
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
52
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
INDEPENDENT AUDITOR’S REPORT (CONTINUED)
53
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 30 June 2021
Interest income
R&D rebate
Other income
Gain on re-measurement of financial liabilities
Gain on derecognition of associate
Total income
Employee benefits expenses
Share based payments expenses
Depreciation expenses
Borrowing costs
Administrative and other costs
Technical feasibility costs
Accretion of interest on royalty liability
Share of loss of associate
Fair value adjustments to other assets measured at fair
value through profit or loss
Profit/ (Loss) before income tax
Income tax expense
Profit/ (Loss) after income tax
Other comprehensive income/(loss), net of tax
Items that could be transferred to profit or loss in future:
Recycled to the profit or loss on derecognition of associate
Exchange differences on translation of foreign operations
Group’s share of associate’s other comprehensive
income
Note
5
5
5
19
4
12, 13
19
3
8
2021
$
2020
$
9,246
46,137
55,625
37,034
110,037
62,500
-
-
1,735,665
10,429,216
111,008
12,374,452
(725,552)
(856,325)
(23,049)
-
(705,365)
(819,645)
(16,899)
(297,520)
(1,397,265)
(1,510,336)
(1,555,761)
(948,436)
(323,904)
-
-
-
(353,988)
(69,549)
(4,770,848)
7,652,714
-
-
(4,770,848)
7,652,714
-
(3,764,892)
(4,483,550)
40,792
-
503,253
Total comprehensive income/(loss) for the year
(9,254,398)
4,431,867
Profit/(loss) per share (in cents)
Basic and Diluted profit/(loss) per share
6
(0.31)
0.65
The statement should be read in conjunction with the accompanying notes
54
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
Note
2021
$
2020
$
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Prepayments
Total current assets
Non-current assets
Property plant and equipment
Right-of-use asset
Exploration and evaluation costs
Investments
Other assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Royalty liability
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
9
10
11
12
13
14
15
16
17
18
19
21
20
2,680,367
2,546,021
732,455
-
84,740
31,962
30,000
84,466
3,497,562
2,692,449
24,819
3,583,243
41,789
-
54,472,897
59,419,382
8,000
-
8,000
219,284
58,088,959
59,688,455
61,586,521
62,380,904
576,746
28,433
605,179
412,178
242,936
655,114
5,686,663
5,686,663
5,857,433
5,857,433
6,291,842
6,512,547
55,294,679
55,868,357
107,717,730
(11,027)
99,893,335
3,616,198
(52,412,024)
(47,641,176)
55,294,679
55,868,357
The statement should be read in conjunction with the accompanying note
55
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2021
Note
2021
$
2020
$
9
3
4
OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Government rebates received
Borrowing costs paid
Cash used in operating activities
INVESTING ACTIVITIES
Acquisition of property, plant and equipment
Proceeds from sale of non-current assets
Payment for Teesside Lease purchase option
Contributions to associates
Cash acquired on acquisition of PAM
Cash generated from (used in) investing
activities
FINANCING ACTIVITIES
Proceeds from issue of equity shares
Costs of issuing equity shares
Proceeds from redemption of bank guarantee
Payment for principal portion of lease liabilities
Repayment of borrowings
Proceeds from borrowings
Repayment to associate and other parties
(4,583,832)
(3,129,879)
13,574
101,762
-
36,210
172,537
(67,463)
(4,468,496)
(2,988,595)
(245)
531
-
-
-
(11,685)
-
(92,030)
(667,861)
41,897
286
(729,679)
8,227,067
(402,673)
30,000
(3,220,347)
-
-
-
6,295,535
(230,767)
-
-
(1,914,947)
48,246
(28,065)
Cash generated from financing activities
4,634,047
4,170,002
Net increase in cash and cash equivalents
Balance at the beginning of the year
Effect of foreign currency translation
Balance at the end of the year
9
165,837
2,546,021
(31,491)
2,680,367
451,728
2,147,324
(53,031)
2,546,021
The statement should be read in conjunction with the accompanying notes
56
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2021
Contributed
Equity
$
77,223,630
-
-
Share
based
payment
reserve
$
2,968,113
-
-
Foreign
currency
translation
reserve
$
3,049,287
-
(3,724,100)
-
-
503,253
-
22,900,472
-
(230,767)
99,893,335
-
-
-
8,227,067
-
(402,672)
-
-
819,645
-
3,787,758
-
-
(3,220,847)
-
-
-
(171,560)
-
(4,483,550)
-
-
856,325
-
(4,483,550)
-
-
-
Accumulated
losses
$
(55,293,890)
7,652,714
-
-
7,652,714
-
-
-
(47,641,176)
(4,770,848)
-
(4,770,848)
-
-
-
At 30 June 2019
Profit for the year
Other comprehensive loss
Group’s share of associate’s other
comprehensive income
Total
income/(loss) for the year
Equity issued
Equity based payments
Transaction costs
comprehensive
At 30 June 2020
Loss for the year
Other comprehensive loss
Total
income/(loss) for the year
Equity issued
Equity based payments
Transaction costs
comprehensive
At 30 June 2021
107,717,730
4,644,083
(4,655,110)
(52,412,024)
The statement should be read in conjunction with the accompanying notes
Total equity
$
27,947,140
7,652,714
(3,724,100)
503,253
4,431,867
22,900,472
819,645
(230,767)
55,868,357
(4,770,848)
(4,483,550)
(9,254,398)
8,227,067
856,325
(402,672)
55,294,679
57
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
NOTES TO FINANCIAL STATEMENTS
1. CORPORATE INFORMATION
The financial report of Peak Resources Limited for the year ended 30 June 2021 was authorised for issue in
accordance with a resolution of the directors on 15 September 2021.
Peak Resources Limited is a for profit company limited by shares incorporated in Australia whose shares are
publicly traded on the Australian Securities Exchange (ASX). The address of its registered office and principal
place of business is disclosed in the corporate directory in the Annual Report.
The principal activity of the Group during the year was exploration and evaluation of mineral licences.
2. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of Preparation
The consolidated financial statements have been prepared on the basis of historical cost. All amounts are
presented in Australian Dollars unless otherwise noted.
Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with the
Corporations Act 2001, Australian Accounting Standards and Interpretations, and complies with other
requirements of the law.
Compliance with Australian Accounting Standards ensures that the financial statements and notes of the
Group comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board (IFRS).
Going concern
The Group incurred a loss after tax of $4,770,848 (2020: profit of $7,652,714) and had operating cash outflows
of $4,468,496 for the year ended 30 June 2021 (2020: $2,988,595).
In order to fund the Ngualla Project and Teesside Refinery as well as the Group’s corporate and administration
requirements, the Group’s cashflow forecasts through to 31 December 2022 indicate they will be required to
obtain additional funding during this period.
As disclosed in Note 27 of the financial report, the Group successfully raised $20.4 million on 13 August 2021
under Tranche One of a proposed two-tranche equity placement. The receipt of further funds under Tranche
Two of the equity placement totalling $9.6 million, is subject to shareholder approval at the General Meeting
called for 28 September 2021.
The Company is also undertaking a Share Placement Plan (“SPP”) to raise up to $4 million. The SPP is also
subject to shareholder approval and the final amount raised subject to eligible participant take-up.
The net proceeds of the two-tranche placement and SPP will be used by Peak to progress the development
of the Ngualla Project and the Teesside Refinery (including offtake and financing arrangements), expand the
Company’s technical and marketing team and repay the ANRF Royalty Facility and interest (“ANRF royalty”).
The US$10 million payment to settle the ANRF royalty comprises the repayment of principal of US$5.2 million
and an accrued interest payment of US$4.8 million (see Note 27). The agreement to repay the ANRF royalty
is subject to shareholder approval at the General Meeting called for 28 September 2021.
In the directors’ opinion, there are reasonable grounds to believe that the Group has the ability to successfully
raise adequate equity funding as required, as demonstrated by the successful equity raisings in the current
year (see Note 21) and the Tranche One raising completed subsequent to year end. Accordingly, the Directors
consider there is a reasonable basis to conclude that the Tranche Two equity raising will be successfully
completed at the General Meeting called for 28 September 2021.
However, in the event that the Tranche Two equity raising is not successfully completed, and additional funding
is not forthcoming, the Group would need to revise its current plans with respect to the development of the
Ngualla Project and Teesside Refinery to ensure that it has sufficient cash on hand to continue its operations.
As a result of the need to raise additional equity to continue with the planned development of the Ngualla
Project and the Teesside Refinery, if the Tranche Two funds are not forthcoming, there is a material uncertainty
58
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
whether the Group will be able to progress with its current development initiatives and continue as a going
concern and therefore in this circumstance whether it will realise its assets and discharge its liabilities in the
normal course of business and at the amounts stated in the consolidated financial statements. No adjustments
have been made relating to the recoverability and classification of recorded asset amounts and classification
of liabilities that might be necessary should the Group not continue as a going concern.
b) Impact of new standards applied for the first time
The accounting policies adopted in the preparation of the consolidated financial statements for the year are
consistent with those followed in the preparation of the Company’s annual financial report for the year ended
30 June 2020, except for the adoption of new and amended accounting standards and interpretations effective
as of 1 July 2020. The adoption of these new and amended accounting standards and interpretations did not
have a material impact on the consolidated entity and no restatement of comparative financial information to
reflect the adoption of these new standards and interpretations was required.
The Company has not early adopted any other accounting standard, interpretation or amendment that has
been issued but is not yet effective.
Amendments to AASB 3: Definition of a Business
The amendment to AASB 3 Business Combinations clarifies that to be considered a business, an integrated
set of activities and assets must include, at a minimum, an input and a substantive process that, together,
significantly contribute to the ability to create output. Furthermore, it clarifies that a business can exist without
including all of the inputs and processes needed to create outputs. These amendments had no impact on the
consolidated financial statements of the Group.
Amendments to AASB 7, AASB 9 and AASB 139 Interest Rate Benchmark Reform
The amendments to AASB 9 and AASB 139 Financial Instruments: Recognition and Measurement provide a
number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark
reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amount
of benchmark-based cash flows of the hedged item or the hedging instrument. These amendments have no
impact on the consolidated financial statements of the Group as it does not have any interest rate hedge
relationships.
Amendments to AASB 101 and AAB 108 Definition of Material
The amendments provide a new definition of material that states, “information is material if omitting, misstating
or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose
financial statements make on the basis of those financial statements, which provide financial information about
a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of
information, either individually or in combination with other information, in the context of the financial
statements. A misstatement of information is material if it could reasonably be expected to influence decisions
made by the primary users. These amendments had no impact on the consolidated financial statements of,
nor is there expected to be any future impact to the Group.
Conceptual Framework for Financial Reporting issued on 29 March 2018
The Conceptual Framework is not a standard, and none of the concepts contained therein override the
concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in
developing standards, to help preparers develop consistent accounting policies where there is no applicable
standard in place and to assist all parties to understand and interpret the standards. This will affect those
entities which developed their accounting policies based on the Conceptual Framework. The revised
Conceptual Framework includes some new concepts, updated definitions and recognition criteria for assets
and liabilities and clarifies some important concepts. These amendments had no impact on the consolidated
financial statements of the Group.
Amendments to AASB 16 Covid-19 Related Rent Concessions
The amendments provide relief to lessees from applying AASB 16 guidance on lease modification accounting
for rent concessions arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a
lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease
modification. A lessee that makes this election accounts for any change in lease payments resulting from the
Covid-19 related rent concession the same way it would account for the change under AASB 16, if the change
were not a lease modification. This amendment had no impact on the consolidated financial statements of the
Group.
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Standards issued but not yet effective
Significant Australian Accounting Standards and Interpretations that are issued, but are not yet effective, up
to the date of issuance of the Group’s financial statements is not expected to be material. The Group intends
to adopt these new standards and interpretations, if applicable, when they become effective.
Amendments to AASB 101: Classification of Liabilities as Current or Non-current
The amendments clarify:
- What is meant by a right to defer settlement
-
-
-
That a right to defer must exist at the end of the reporting period
That classification is unaffected by the likelihood that an entity will exercise its deferral right
That only if an embedded derivative in a convertible liability is itself an equity instrument would the
terms
of a liability not impact its classification
-
The Group is currently assessing the impact the amendments will have on current practice.
Reference to the Conceptual Framework – Amendments to AASB 3
The amendments are intended to replace a reference to the Framework for the Preparation and Presentation
of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting
issued in March 2018 without significantly changing its requirements. The Board also added an exception to
the recognition principle of AASB 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities
and contingent liabilities that would be within the scope of AASB 137 or Australian IFRIC 21 Levies, if incurred
separately. At the same time, the Board decided to clarify existing guidance in AASB 3 for contingent assets
that would not be affected by replacing the reference to the Framework for the Preparation and Presentation
of Financial Statements. The amendments are effective for annual reporting periods beginning on or after 1
January 2022 and apply prospectively.
Property, Plant and Equipment: Proceeds before Intended Use – Amendments to AASB 116
In May 2020, the IASB issued Property, Plant and Equipment — Proceeds before Intended Use, which
prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling
items produced while bringing that asset to the location and condition necessary for it to be capable of
operating in the manner intended by management. Instead, an entity recognises the proceeds from selling
such items, and the costs of producing those items, in profit or loss. The amendment is effective for annual
reporting periods beginning on or after 1 January 2022 and must be applied retrospectively to items of property,
plant and equipment made available for use on or after the beginning of the earliest period presented when
the entity first applies the amendment. The amendments are not expected to have an impact on the Group.
Onerous Contracts – Costs of Fulfilling a Contract – Amendments to AASB 137
In May 2020, the IASB issued amendments to AASB 137 to specify which costs an entity needs to include
when assessing whether a contract is onerous or loss-making. The amendments apply a “directly related cost
approach”. The costs that relate directly to a contract to provide goods or services include both incremental
costs and an allocation of costs directly related to contract activities. General and administrative costs do not
relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under
the contract. The amendments are effective for annual reporting periods beginning on or after 1 January 2022.
The Group will apply these amendments to contracts for which it has not yet fulfilled all its obligations at the
beginning of
the annual reporting period in which it first applies the amendments.
AASB 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities
As part of its 2018-2020 annual improvements to AASB standards process the IASB issued amendment to
AASB 9. The amendment clarifies the fees that an entity includes when assessing whether the terms of a new
or modified financial liability are substantially different from the terms of the original financial liability. These
fees include only those paid or received between the borrower and the lender, including fees paid or received
by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities
that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first
applies the amendment. The amendment is effective for annual reporting periods beginning on or after 1
January 2022 with earlier adoption permitted. The Group will apply the amendments to financial liabilities that
are modified or exchanged on or after the beginning of the annual reporting period in which the Group first
applies the amendment. The amendments are not expected to have an impact on the Group.
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PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
c) Basis of consolidation
The consolidated financial statements of Peak Resources Limited comprise the financial statements of the
Company and its subsidiaries as at 30 June 2021. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:
- Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee)
- Exposure, or rights, to variable returns from its involvement with the investee, and
-
The ability to use its power over the investee to affect its returns
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all
relevant facts and circumstances in assessing whether it has power over an investee, including:
The contractual arrangement with the other vote holders of the investee
-
- Rights arising from other contractual arrangements
-
The Group’s voting rights and potential voting rights
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the
Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets,
liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the
statement of comprehensive income from the date the Group gains control until the date the Group ceases to
control the subsidiary.
All inter-company balances and transactions between entities in the Group, including any unrealised profits or
losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with those policies applied by the parent entity. All controlled entities have a
June financial year-end.
If the Group loses control over a subsidiary, it derecognises the related assets, liabilities, non-controlling
interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any
investment retained is recognised at fair value. Where controlled entities have entered or left the economic
entity during the year, their operating results have been included/excluded from the date control was obtained
or until the date control ceased through an equity transaction.
d) Investment in associates
An associate is an entity over which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control or joint control
over those policies. The Group’s investments in its associates are accounted for using the equity method.
Under the equity method, the investment in an associate is initially measured at cost. The carrying amount
of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate since
the entity became an associate.
The statement of comprehensive income reflects the Group’s share of the results of operations of the
associate. Any change in other comprehensive income (OCI) of those investees is presented as part of the
Group’s OCI. In addition when there has been a change recognised directly in the equity of an associate, the
Group recognises its share of any changes, when applicable, in the statement of changes in equity.
Unrealised gains or losses resulting from transactions between the Group and associate are eliminated to
the extent of the interest in the associate.
The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the statement of
comprehensive income outside operating profit and represents profit or loss after tax and non-controlling
interests in the subsidiaries of the associate. The financial statements of the associate are prepared for the
same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies
in line with those of the Group.
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After application of the equity method, the Group determines whether it is necessary to recognise an
impairment loss on its investment in its associate. At each reporting date, the Group determines whether
there is objective evidence that the investment in the associate is impaired. If there is such evidence, the
Group calculates the amount of impairment as the difference between the recoverable amount of the
associate and its carrying value, and then recognises the loss as ‘Share of profit of an associate’ in the
statement of profit or loss.
Upon loss of significant influence over the associate in a situation which is not an asset acquisition, the Group
measures and recognises any retained investment at its fair value. Any difference between the carrying amount
of the associate upon loss of significant influence and the fair value of the retained investment and proceeds
from disposal is recognized in profit and loss. In the case of an asset acquisition (which is not a business
combination) where the Group loses significant influence but gains control of an investment, the Group takes
any difference between the total historical cost of acquisition of the investment and the carrying value of the
associate upon loss of significant influence to the profit and loss.
e) Foreign Currency Translation
The financial statements have been presented in Australian Dollars, which is the Group’s presentation
currency.
Foreign currency transactions
In preparing the financial statements of each individual group entity, transactions in foreign currencies are
initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. The
Company’s functional currency is Australian dollars. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting date, and gain or loss in exchange
rate movements are recognised in profit or loss.
Translation of foreign operations
As at the reporting date the assets and liabilities of foreign operations are translated from their functional
currency at the rate of exchange ruling at the reporting date and the statement of comprehensive income,
statement cash flows and statement of changes in equity are translated at the weighted average exchange
rates for the year. The exchange differences arising on translation are recognised in other comprehensive
income and accumulated balances are carried forward as a separate component of equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain or
loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition
of gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain
or loss is recognised in other comprehensive income or profit or loss are also recognised in other
comprehensive income or profit or loss, respectively).
On disposal of a foreign operation, the deferred cumulative amount recognised in equity relating to that
particular foreign operation is recognised in the profit or loss.
f) Other income
Interest
Interest income is recognised as the interest accrues on the financial asset carried at amortised cost.
R&D rebate grant
The Group is treating its receipt of the R&D rebate as a government grant.
Government grants are recognised as income when there is reasonable assurance that the grant will be
received and all conditions will be complied with. When the grant relates to an expense item, it is recognised
as income over the period necessary to match the grant on a systematic basis to the costs that it is intended
to compensate. When the grant relates to an asset, it is deducted from the asset to which it relates, the net
value of which is amortised over its expected useful life.
g) Employee benefits
Employee benefits such as salary and wages are measured at the rate at which the entity expects to settle the
liability; and recognised during the period over which the employee services are being rendered.
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PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Provision is made for the Company’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee
benefits payable later than one year have been measured at the present value of the estimated future cash
outflows to be made for those benefits.
Superannuation entitlements
Contributions are made by the company to employee superannuation funds and are charged as expenses
when incurred.
h) Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-
use assets representing the right to use the underlying assets.
i) Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or
before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a
straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:
-
Lease 26 years
The right-of-use assets are also subject to impairment. The carrying values of right-of-use assets are reviewed
for impairment at each reporting date, with recoverable amount being estimated when events or changes in
circumstances indicate that the carrying value may be impaired. Impairment losses, if any, are recognised in
the profit or loss.
ii) Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments
of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they
are incurred to produce inventories) in the period in which the event or condition that triggers the payment
occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset.
iii) Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of its office space. This
has been recognised as an expense in Administrative and other costs in the consolidated statement of
comprehensive income.
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i) Income tax
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of
assets and liabilities and their carrying amounts for the financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
- Where the deferred income tax liability arises from the initial recognition of an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
In respect of taxable temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, when the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
-
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses
can be utilised except:
- Where the deferred income tax asset relating to the deductible temporary differences arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
In respect of deductible temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable
that the temporary differences will reverse in the foreseeable future and taxable profit will be available
against which the temporary differences can be utilised.
-
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the profit or
loss.
j) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST/VAT except:
When the GST/VAT incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST/VAT is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and Receivables and payables, which are stated with the amount of GST/VAT
included.
The net amount of GST/VAT recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
The GST/VAT component of cash flows arising from investing and financing activities, which is recoverable
from, or payable to, the taxation authority, is classified as part of operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST/VAT recoverable from, or payable
to, the taxation authority.
k) Earnings per share
i) Basic earnings per share
Basic earnings per share (“EPS”) is determined by dividing the group operating result after income tax
attributable to members by weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the year.
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ii) Diluted earnings per share
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent (after
adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares
outstanding during the year plus the weighted average number of ordinary shares that would be issued on
conversion of all the dilutive potential ordinary shares into ordinary shares.
l) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (OCI) and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them. With the exception of trade receivables
that do not contain a significant financing component or for which the Group has applied the practical
expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant
financing component or for which the Group has applied the practical expedient are measured at the
transaction price determined under AASB 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs
to
give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
-
-
-
-
Financial assets at amortised cost (debt instruments)
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt
instruments)
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments)
Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both
of the following conditions are met:
-
-
The financial asset is held within a business model with the objective to hold financial assets in order
to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and
are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised,
modified or impaired. The Group’s financial assets at amortised cost includes trade receivables.
Financial assets designated at fair value through OCI (equity instruments)
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PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial
Instruments:
Presentation and are not held for trading. The classification is determined on an instrument-by-instrument
basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as
other
income in the statement of profit or loss when the right of payment has been established, except when the
Group
benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains
are
recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment
assessment. The Group elected to classify irrevocably its non-listed equity investments under this category.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives,
are also classified as held for trading unless they are designated as effective hedging instruments. Financial
assets with cash flows that are not solely payments of principal and interest are classified and measured at
fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt
instruments to be classified at amortised cost or at fair value through OCI, as described above, debt
instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates,
or significantly reduces, an accounting mismatch. Financial assets at fair value through profit or loss are carried
in the statement of financial position at fair value with net changes in fair value recognised in the statement of
profit or loss.
This category includes derivative instruments and listed equity investments which the Group had not
irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are also
recognised as other income in the statement of profit or loss when the right of payment has been established.
A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the
host and accounted for as a separate derivative if: the economic characteristics and risks are not closely
related to the host; a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded
derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment
only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that
would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss
category.
A derivative embedded within a hybrid contract containing a financial asset host is not accounted for
separately. The financial asset host together with the embedded derivative is required to be classified in its
entirety as a financial asset at fair value through profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
-
-
The rights to receive cash flows from the asset have expired; or
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the
asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-
through
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it
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PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing
involvement. In that case, the Group also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Group could
be required to repay.
Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair
value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from the
sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase
in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that
are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been
a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge,
as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other
payables and loans and borrowings.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below
Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings
are
subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or
loss
when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit
or loss.
This category generally applies to the royalty liability.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the
derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit or loss.
The financial instruments of the Group are (i) cash and cash equivalents, including other financial assets; (ii)
trade and other receivables; (iii) investments, (iv) trade and other payables and v) royalty liability.
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m) Cash and Cash Equivalents
Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and
short term deposits with an original maturity of three months or less.
For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
n) Trade and Other Receivables
Trade receivables, which generally have 30-90 day terms, are recognised initially at fair value and
subsequently at amortised cost, less provisions for expected credit losses. For trade receivables, the Group
applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk,
but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has
established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic environment.
o) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.
Plant and equipment is depreciated on the straight line basis over their expected useful lives to their estimated
residual value
The useful life of the assets have been set at the following levels to determine the depreciation rates:
Plant and equipment: 2 to 5 years
Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value
may be impaired. Impairment losses, if any, are recognised in the profit or loss.
Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in profit or loss in the year the asset is derecognised.
p) Exploration and evaluation costs
Exploration and evaluation expenditure in relation to each separate area of interest is recognised as an
exploration and evaluation asset in the year in which it is incurred where the following conditions are satisfied:
The rights to tenure of the area of interest are current; and at least one of the following conditions is also met:
-
-
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not at the reporting date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest are
continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling and associated activities and an allocation of depreciation and amortisation of
assets used in exploration and evaluation activities. General and administrative costs are only included in the
measurement of exploration and evaluation costs where they are related directly to operational activities in a
particular area of interest.
68
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any).
The recoverable amount of exploration and evaluation assets is the higher of fair value less costs of disposal
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.
An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. Any
impairment losses are recognised in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset
in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
production assets.
q) Trade and Other Payables
Trade payables and other payables are initially recognised at fair value, then carried at amortised cost. They
represent liabilities for goods and services provided to the Group prior to the end of the financial year that are
unpaid and arising when the Group becomes obliged to make future payments in respect of the purchase of
these goods and services.
r) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance
cost.
s) Share-based payment transactions
Equity settled transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share-
based payments, whereby employees render services in exchange for shares or rights over shares (equity-
settled transactions).
The current plans in place to provide these benefits are the Incentive Employee Option Plan (EOP), Incentive
Performance Rights Plan (PRP), and Director Fee Plan, which provides benefits to directors, senior executives
and other eligible participants as determined by the Board.
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes
option pricing model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Peak Resources Limited (market conditions) if applicable.
69
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects:
-
-
the extent to which the vesting period has expired and
the Group’s best estimate of the number of equity instruments that will ultimately vest. No adjustment
is made for the likelihood of market performance conditions being met as the effect of these conditions
is included in the determination of fair value at grant date. The profit or loss charge or credit for a
period represents the movement in cumulative expense recognised as at the beginning and end of
that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified. In addition, an expense is recognised for any modification that increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at
the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled
and new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of
earnings per share.
t) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of
funds.
u) Critical accounting judgements and estimates
In the application of Australian Accounting Standards, management is required to make judgments about
applying accounting policies and estimates and assumptions about carrying values of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be reasonable under the circumstance, the
results of which form the basis of making the judgments. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.
70
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Impairment of exploration and evaluation costs
The future recoverability of exploration and evaluation costs are dependent on a number of factors, including
the level of proved, probable and inferred mineral resources, future technological changes which could impact
the cost of mining, future legal changes (including changes to environment restoration obligations) and
changes to commodity prices.
To the extent that exploration and evaluation costs is determined not to be recoverable in the future, this
impairment will reduce profits and net assets in the period in which this determination is made.
Share based payment transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using the most appropriate
valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires
determination of the most appropriate inputs to the valuation model including the expected life of the share
option, volatility and dividend yield and making assumptions about them.
Accounting for contingent consideration in asset acquisition
In accounting for the cash component of contingent consideration payable in an asset acquisition, including
future royalties, the Group considers AASB 137 “Provisions, Contingent Liabilities and Contingent Assets” to
be the applicable accounting standard. Accordingly, no obligation for the cash component of contingent
consideration payable based on the future performance of the asset and actions of the Group is recognised at
the date of purchase of the related asset.
Measurement of royalty liability
The Group is required to estimate the amount and timing of anticipated repayment dates for the royalty liability
disclosed in note 18. Any changes in either the estimated timing or amount of repayments will impact the
measurement of this liability through the profit and loss and these changes could be significant.
3. INVESTMENTS IN ASSOCIATES
Prior to acquisition of the remaining interest in Peak African Minerals (PAM) on 12 November 2019 (see Note
4), the investment in PAM was accounted for using the equity method in the consolidated financial statements.
For the year ended 30 June 2020, the Group recognised a share of loss in the associate amounting to
$353,988.
71
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
4. ASSET ACQUISITION
On 4 November 2019 Peak’s shareholders approved the acquisition of the remaining 25% interest in PAM. All
conditions of the acquisition were satisfied and completion occurred on 12 November 2019. A total of
386,161,369 new fully paid ordinary shares were issued at an issue price at the completion date of $0.043 to
Appian Pinnacle Holdco Limited (Appian) and International Finance Corporation (IFC), after reduction for their
outstanding contributions for the PAM group costs to completion. The cost of this acquisition consideration
was $16,604,938.
The total cost of acquisition has been determined using the accumulated cost approach with the difference
between this cost and the carrying value of Peak’s equity accounted investment of its interest in associate on
derecognition taken through the profit and loss as part of the gain on acquisition and reconsolidation of
associate of $10,429,216.
The Group’s acquisition of PAM was accounted for as an asset acquisition rather than a business combination
in the consolidated financial statements. The following table illustrates the apportionment of the acquisition
cost to the assets and liabilities of PAM Group at their relative fair values at the acquisition date.
Fair value of consideration transferred
Amount settled for the purchase of the 25% interest in PAM
Previous costs of acquisition
Total cost of PAM acquisition
Assignment of carrying amounts in PAM on acquisition at their
relative fair values:
Cash and cash equivalents
Trade and other receivables
Prepayments
Exploration and evaluation expenditure
Property, plant and equipment
Trade and other payables
Royalty liability
Total cost of PAM acquisition
12 November 2019
$
16,604,938
35,182,644
51,787,582
41,897
811
78,160
59,173,422
40,807
(29,165)
(7,518,350)
51,787,582
Tenure over Ngualla Project
The Ngualla Project tenure is held over three licence areas held by PRNG.
The area containing the Mineral Resource is subject to a Special Mining Licence (SML) application. The
Prospecting Licence (PL) which PRNG held over this area, at the time of lodgement of the SML application,
expired in September 2017. The Tanzanian Mining Act provides that the PL will remain valid until grant or
refusal to grant an application for a licence is made. In July 2021, the Cabinet of Ministers of the Government
of the United Republic of Tanzania has approved the SML application. The Group is committed to working with
the Tanzanian Government to finalise an Economic Framework Agreement, Shareholders’ Agreement and
other related documentation required as part of a formal grant of the SML by the Minister of Minerals.
The other two licence areas are also held by PRNG under granted PLs.
72
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
5. INCOME AND EXPENDITURE ITEMS
Included in profit/(loss) for the year are:
Interest income
Australian R&D rebate
Other income
Total other income
Fees to Ernst & Young (Australia):
Fees for auditing the statutory financial report of the parent covering
the group and auditing the statutory financial reports of any controlled
entities
Total fees to Ernst & Young (Australia) (A)
Fees to other overseas member firms of Ernst & Young
(Australia)
Fees for auditing the financial report of any controlled entities
Total fees to overseas member firms of Ernst & Young (Australia)
(B)
Total auditor’s remuneration (A)+(B)
2021
$
2020
$
9,246
46,137
37,034
110,037
55,625
62,500
111,008
209,571
Auditors’ remuneration
75,560
79,971
75,560
79,971
29,119
29,119
30,229
30,229
104,679
110,200
6. PROFIT/(LOSS) PER SHARE
The following reflects the income and share data used in the total operations basic and dilutive earnings per
share computations:
Basic and Diluted profit/ (loss) per share based on reported
losses after
the Statement of
Comprehensive Income
tax as set out
in
Weighted average number of ordinary shares used in
calculating
basic profit/(loss) per share
Weighted average number of ordinary shares used in
calculating
diluted profit/(loss) per share
Anti-dilutive options over ordinary shares and performance
rights excluded from the weighted average number of shares
2021
Cents
(0.31)
2020
Cents
0.65
2021
Nos.
1,526,071,733
2020
Nos.
1,174,788,181
1,526,071,733
1,175,432,990
98,206,253
204,794,419
73
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
7. OPERATING SEGMENTS
Information reported to the chief operating decision makers for the purposes of resource allocation and
assessment of segment performance focuses on the exploration activities of the Group. The chief operating
decision makers include the board of directors. The Group’s reportable segments under AASB 8 are as follows:
• Exploration & Development (E&D) – Group’s exploration and development activities for the Ngualla project
in Tanzania; and
• Unallocated - to manage the corporate affairs of the group.
The segments have applied the same accounting policies as applied to the Group and disclosed in the notes
1 and 2 to these financial statements.
Interest income
Other income
Re-measurement gain on
royalty liability
Gain on derecognition of
associate
Total income
Depreciation and
amortisation
Share based payment
expenses
Borrowing costs
Share of loss of associate
30 June 2021
30 June 2020
E&D
Unallocated
Total
E&D
Unallocated
Total
$
$
$
$
$
$
-
-
-
-
-
9,246
9,246
101,762
101,762
-
-
-
-
111,008
111,008
-
-
-
-
-
37,034
37,034
172,537
172,537
1,735,665
1,735,665
10,429,216
10,429,216
12,374,452
12,374,452
(16,607)
(6,442)
(23,049)
(11,196)
(5,703)
(16,899)
-
-
-
(856,325)
(856,325)
-
-
-
-
-
(353,988)
-
-
(819,645)
(819,645)
(297,520)
(297,520)
-
-
(353,988)
(948,436)
Technical feasibility costs
(1,555,761)
(1,555,761)
(948,436)
Other expenses
Income Tax
-
-
(2,446,721)
(2,446,721)
-
-
-
-
(2,285,249)
(2,285,249)
-
-
Segment results
(1,572,368)
(3,198,480)
(4,770,848)
(1,313,620)
8,966,335
7,652,716
Segment assets
58,076,050
3,510,471
61,586,521
59,448,993
2,931,911
62,380,904
Segment liabilities
(5,686,663)
(605,179)
(6,291,842)
(5,857,433)
(655,114)
(6,512,547)
Additions to non-current
assets during the year:
Plant and equipment
Right-of-use assets
Investment in associate
-
3,583,243
-
3,583,243
245
-
-
245
245
3,583,243
-
3,583,488
-
-
667,861
667,861
11,686
-
-
11,686
11,686
-
667,861
679,547
74
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
8. INCOME TAX
a.
The components of tax expense comprise:
Current tax
Deferred tax
Income tax expense reported in statement of comprehensive income
b.
The prima facie tax expense/(benefit) on profit/(loss) from ordinary
activities before income tax is reconciled to the income tax as
follows:
CONSOLIDATED CONSOLIDATED
2021
$
2020
$
-
-
-
-
-
-
Profit/(Loss) before income tax
(4,770,848)
7,652,714
Prima facie tax expense/(benefit) on profit/(loss) from ordinary activities
before income tax at 30.0% (2020:30%)
(1,431,254)
2,295,814
Add tax effect of:
- Revenue losses not recognised
- Other non-allowable items
- Other deferred tax balances not recognised
Less tax effect of:
- Gain on derecognition of associate
- Gain on re-measurement of financial liabilities
- Other deferred tax balances not recognised
- Non-assessable items
Income tax expense reported in statement of comprehensive income
c.
Deferred tax recognised at 30.0% (2020:30%) (Note 1):
Deferred tax liabilities:
Accrued interest
Other
Deferred tax assets:
Carry forward revenue losses
Net deferred tax
d.
Unrecognised deferred tax assets at 30.0% (2020:30%) (Note 1):
Carry forward revenue losses
Carry forward capital losses
Unrealised FX
Capital raising costs
Provisions and accruals
Other
617,258
1,320,223
-
699,892
686,311
61,301
506,227
3,743,318
-
-
3,128,765
520,700
136,169
370,058
-
-
-
-
-
-
93,853
-
(1,299)
3,649)
4,948
-
8,037,807
7,452,367
295,504
265,945
86,725
979,943
9,350
295,504
487,097
93,369
859,008
-
9,675,274
9,187,345
75
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
The tax benefits of the above deferred tax assets will only be obtained if:
(a) the company derives future assessable income of a nature and of an amount sufficient to enable the benefits
to be utilised;
(b) the company continues to comply with the conditions for deductibility imposed by law; and
(c) no changes in income tax legislation adversely affect the company in utilising the benefits.
Note 1 - the corporate tax rate for eligible companies will reduce from 30% to 25% by 30 June 2022 providing
certain turnover thresholds and other criteria are met. Deferred tax assets and liabilities are required to be
measured at the tax rate that is expected to apply in the future income year when the asset is realised or the
liability is settled. The Directors have determined that the deferred tax balances be measured at the tax rates
stated.
Note 2 - Tax Consolidation
For the purpose of income taxation, the Company and its 100% Australian controlled entities have formed a
tax consolidated group effective from 1 July 2012.
9. CASH AND CASH EQUIVALENTS
Reconciliation of cash and cash equivalent
For the purpose of the Cash Flow Statement, cash and cash
equivalents comprise the following:
Cash at bank and in hand
Short term deposits
Reconciliation of operating profit/(loss) to operating cash flows
Profit/(Loss) for the year
Adjustments for non-cash items:
Gain on derecognition of associate
Gain on re-measurement of financial liabilities
Accretion of interest on royalty liability
Fair value adjustments
Share of loss of associate
Share based payments expenses
Depreciation expenses
Foreign exchange gain/loss
Other non-cash items
Movement in working capital items:
Increase in trade and other receivables
(Increase)/Decrease in prepayments
Increase in trade and other payables
Increase/(Decrease) in provisions
2021
$
2020
$
2,680,367
546,021
-
2,000,000
2,680,367
2,546,021
(4,770,848)
7,652,714
-
-
(10,429,216)
(1,735,665)
323,904
-
-
856,325
23,049
(6,089)
-
69,549
353,988
819,645
16,899
43,948
543
(174,131)
(845,171)
(25,551)
(274)
164,568
(214,503)
624
372,333
46,268
(4,468,496)
(2,988,595)
76
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
10. TRADE AND OTHER RECEIVABLES
Current
GST/VAT receivable
Other receivable
Ageing of receivables
Recoverable within 3 months
Receivables are non-interest bearing and unsecured.
11. OTHER FINANCIAL ASSETS
Bank Term Deposit
2021
$
2020
$
730,375
2,080
732,455
732,455
732,455
21,671
10,291
31,962
31,962
31,962
2021
$
2020
$
-
-
30,000
30,000
On termination of the office lease in December 2020, the bank guarantee secured against a deposit of $30,000
was released, and the deposit was returned to the Company (2020: deposit $30,000).
12. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment
At cost
Accumulated depreciation
Movement in net carrying amount
Balance at the beginning of the year
Additions on acquisition of PAM
Net Additions / (Disposals)
Depreciation for the year
Balance at the end of the year
2021
$
2020
$
213,309
309,768
(188,490)
(267,979)
24,819
41,789
41,789
-
(828)
6,196
40,807
11,685
(16,142)
(16,899)
24,819
41,789
77
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
13. LEASES
RIGHT OF USE ASSETS
Movement in net carrying amount:
Balance at beginning of year
Additions
Depreciation for the year
Balance at 30 June
LEASE LIABILITIES
Movement in net carrying amount:
Balance at beginning of year
Additions
Repayments
Balance at 30 June
2021
$
2020
$
-
3,590,150
(6,907)
3,583,243
2021
$
2020
$
-
3,220,392
(3,220,392)
-
-
-
-
-
-
-
-
-
During the year, the Group executed an option for a 250-year lease on a 19-hectare parcel of land in Teesside
for an upfront payment of £1,858,712 (net of VAT receivable) and with an annual peppercorn lease payment
of £0.01 per annum. The historical option payment costs were deducted from the final settlement amount.
The Group also has certain contracts which contain a lease with terms of 12 months or less and contracts
which contain a lease of low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’
recognition exemptions for these. Leases that are short-term and low value amounted to $35,434 for the year
ended
30 June 2021 (2020: $56,769).
14. EXPLORATION AND EVALUATION EXPENDITURE
Movement in net carrying amount:
Balance at beginning of year
Additions on acquisition of PAM
Foreign exchange movements
Balance at 30 June
Capitalised areas of interest
Ngualla Rare Earth Project, Tanzania
15. INVESTMENTS
Investment in listed shares – at fair value through profit or loss (Level 1)
2021
$
2020
$
59,419,382
-
-
59,173,422
(4,946,485)
245,960
54,472,897
59,419,382
54,472,897
59,419,382
54,472,897
59,419,382
2021
$
8,000
8,000
2020
$
8,000
8,000
78
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
16. OTHER ASSESTS
Teesside option payment
2021
$
-
-
2020
$
219,284
219,284
During the period, the Group executed an option for a 250-year lease on a 19 hectare parcel of land in Teesside
for a rare earth refinery and separation plant. The historical option payment costs were deducted from the final
settlement amount, which has been accounted for as a right-of-use asset under Note 13 of the consolidated
financial statements.
17. TRADE AND OTHER PAYABLES
Current
Trade and other payables
Ageing of payables
Payable within 3 months
Beyond 12 months
2021
$
2020
$
576,746
412,178
576,476
-
576,476
412,178
-
412,178
Payables are non-interest bearing, unsecured and are generally payable in 30-120 days.
18. PROVISIONS
Employee benefits - leave entitlements
19. ROYALTY LIABILITY
Non-current:
ANRF Royalty Liability
2021
$
2020
$
28,433
242,936
2021
$
2020
$
5,686,663
5,857,433
5,686,663
5,857,433
Advance for future royalty – In July 2015 ANRF Royalty Company Limited (ANRF) and International Finance
Corporation (IFC) advanced US$5,191,191 for a 2% Gross Sales Royalty from the Ngualla Rare Earth's
project. Forms of security customary for an agreement of this type have been agreed and have been or are
registered including asset level security given by PR NG Minerals Limited. The 2% Gross Sales Royalty is a
life-of-mine/ life-of-refinery Royalty that will continue to be payable on revenues generated from the operation
after the Royalty Advance of US$5,191,191 has been repaid. As the Group has yet to be granted the Special
Mining Licence for the Ngualla project or made a Final Investment Decision, at this point in time, the recognition
of a liability for its contingent consideration is not considered probable and hence no additional liability has
been brought to account.
On 6 August 2021, the Group announced that it had entered into a Royalty Repayment and Release
Agreement with respect to the ANRF Royalty Liability, details of which are set out in Note 27.
79
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Movement in net carrying amount of ANRF Royalty Liability:
Balance at beginning of year
Additions on acquisition of PAM
Gain on re-measurement
Accretion of interest
Foreign exchange movements
Balance at 30 June
20. RESERVES
2021
$
2020
$
5,857,433
-
-
-
7,518,350
(1,735,665)
323,904
-
(494,674)
74,748
5,686,663
5,857,433
At 30 June 2019
Share based payment made in 2020
Group’s share of associates FCTR
Recycled to the profit or loss on derecognition
of associate
Exchange difference on translation of foreign
operations
At 30 June 2020
Share based payment made in 2021
Exchange difference on translation of foreign
operations
At 30 June 2021
Share based
payment
reserve
$
2,968,113
819,645
-
-
-
Foreign
currency
translation
reserve
$
3,049,287
-
503,253
Total
$
6,017,400
819,645
503,253
(3,764,892)
(3,764,892)
40,792
40,792
3,787,758
(171,560)
3,616,198
856,325
-
856,325
-
(4,483,550)
(4,483,550)
4,644,083
(4,655,110)
(11,027)
Share based payment reserve – the reserve is used to recognise the value of equity benefits provided to
employees and directors as part of their remuneration, and other parties as part of their compensation for
supply of goods and services.
Foreign currency translation reserve – the reserve is used to recognise exchange differences arising from
translation of foreign operations to the Australian dollar.
21. CONTRIBUTED EQUITY
Balance at 30 June 2019
Placement @4c per share
PAM Rollup consideration
Placement @ 1.5c per share
Equity issue costs
Balance at 30 June 2020
8-Aug-19
12-Nov-19
14-Apr-20
Nos.
799,255,869
119,888,380
386,161,369
100,000,000
-
1,405,305,618
$
77,223,630
4,795,534
16,604,938
1,500,000
(230,767)
99,893,335
Issue of shares for nil consideration on exercise
of vested Performance Rights
Shares issued in settlement of deferred
directors fees and deferred executive
remuneration @ $0.0342
Placement @3.2c per share
SPP @3.2c per share
3-Jul-20
2,000,000
-
7-Aug-20
3,762,020
128,661
28-Oct-20
17-Nov-20
109,375,000
26,562,493
3,500,000
850,000
80
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Issue of shares for nil consideration on
exercise of vested Performance Rights
Shares issued in settlement of director fees at
$0.063078 per Share
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on settlement deed
Issue of shares on exercise of unlisted options
Issue of shares on settlement deed
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on settlement deed
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares for nil consideration on
exercise of vested performance rights
Issue of shares on exercise of unlisted options
Issue of shares for nil consideration on
exercise of vested performance rights
Shares issued in settlement of director fees at
$0.0954 per share
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares on exercise of unlisted options
Issue of shares for nil consideration on
exercise of vested performance rights
Issue of shares on exercise of unlisted options
Equity issue costs
Balance at 30 June 2021
Nos.
$
24-Nov-20
2,442,000
23-Dec-20
861,469
25-Jan-21
25-Jan-21
29-Jan-21
29-Jan-21
1-Feb-21
2-Feb-21
2-Feb-21
2-Feb-21
4-Feb-21
11-Feb-21
15-Feb-21
15-Feb-21
19-Feb-21
750,000
14,000,000
3,019,230
400,000
4,500,000
4,000,000
4,000,000
800,000
800,000
2,000,000
730,770
1,125,000
3,375,000
5-Mar-21
1,750,000
8-Mar-21
75,000
-
54,340
48,750
700,000
196,250
20,000
191,250
240,000
240,000
40,000
40,000
100,000
47,500
39,375
101,250
52,500
-
11-Mar-21
3,000,000
180,000
1-Apr-21
2,250,000
1-Apr-21
205,751
6-May-21
7-May-21
11,166,295
2,171,596
10-May-21
662,109
25-May-21
208,747
4-Jun-21
4,500,000
10-Jun-21
4,500,000
21-Jun-21
8,250,000
25-Jun-21
210,000
-
19,628
669,978
130,296
39,727
6,262
292,500
292,500
-
6,300
1,628,758,098
(402,672)
107,717,730
Ordinary shares have the right to receive dividends as declared, and in the event of winding up the Company,
to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts
paid upon on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a
meeting of the Company.
Options over ordinary shares
At the end of the reporting period, there were 127,644,253 options (including performance rights) over
unissued shares as follows:
Options over Ordinary Shares
Balance at 30 June 2020
Expired/ Lapsed/ Cancelled:
Date of expiry/
exercise or
issue
Nos
Status
Exercise
Price
Expiry Date
242,794,419
81
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Options over Ordinary Shares
Expired unexercised – PEKAI
Vested Options
Cancelled – PEKAI Unlisted
options vesting subject to
various performance milestones
Cancelled – PEKAI Options
vesting subject to various
performance milestones
Lapse of Unlisted PEKAI
Options
Lapse of Unlisted PEKAI
Options
Lapse of Unlisted PEKAI
Options
Expired unexercised - Unlisted
PEKAI Options
PEKAK Performance Rights
lapsed on cessation of
employment
PEKAK Performance Rights
lapsed on cessation of
employment
Expired unexercised - Unlisted
options
Cancelled on settlement deed -
Unlisted options
Cancelled on settlement deed -
Unlisted options
Cancelled on settlement deed -
Unlisted options
Cancelled – PEKAI Options
vesting subject to various
performance milestones
Cancelled – PEKAI Options
vesting subject to various
performance milestones
Performance Rights lapsed on
cessation of employment
Issued:
Performance Rights as a Short
Term Incentive employees. The
Performance Rights will vest on
achievement of performance
milestones set by the Board
Performance Rights as a Long
Term Incentive to employees.
The Performance Rights will
vest on achievement of
performance milestones set by
the Board.
Performance Rights issued
under the Company’s Incentive
Performance Rights Plan and
with the approval of the
Company’s shareholders given
at the Annual General Meeting
held on 21 December 2020.
Exercised:
Vested Performance Rights
Date of expiry/
exercise or
issue
Nos
Status
Exercise
Price
Expiry Date
24-Nov-20
(5,994,419)
$0.06
11-Nov-20
24-Nov-20
(5,000,000)
$0.10
21-Jun-22
24-Nov-20
(15,000,000)
$0.15
21-Jun-23
18-Dec-20
(3,000,000)
$0.065
16-Jan-21
18-Dec-20
(1,500,000)
$0.035
17-Jan-22
18-Dec-20
(11,000,000)
$0.03
5-Mar-23
25-Jan-21
(2,250,000)
$0.065
16-Jan-21
25-Jan-21
(4,020,000)
25-Jan-21
(7,600,000)
-
-
8-Sep-21
8-Sep-24
29-Jan-21
(5,750,000)
$0.065
16-Jan-21
29-Jan-21
(9,675,000)
$0.03
5-Mar-23
01-Feb-21
(750,000)
$0.035
17-Jan-22
01-Feb-21
(7,250,000)
$0.03
5-Mar-23
09-Mar-21
(3,000,000)
$0.10
21-Jun-22
09-Mar-21
(5,000,000)
$0.15
21-Jun-23
09-Mar-21
(925,000)
(87,714,419)
08-Sep-20
7,400,000
Vested &
Unvested
-
-
5-Feb-25
8-Sep-21
08-Sep-20
7,600,000 Unvested
-
8-Sep-24
05-Feb-21
32,000,000 Unvested
-
5-Feb-25
47,000,000
03-Jul-20
(2,000,000)
-
5-Mar-21
82
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Options over Ordinary Shares
Date of expiry/
exercise or
issue
Nos
Status
Exercise
Price
Expiry Date
Vested PEKAK STI
Performance Rights
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Listed PEKOD Options
Vested PEKAK Performance
Rights
Unlisted PEKAI Options
Vested PEKAK Performance
Rights
Unlisted PEKAI Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Listed PEKOD Options
Unlisted PEKAI Options
Unlisted PEKAI Options
Vested Performance Rights
Unlisted PEKAI Options
Balance at 30 June 2021
24-Nov-20
(2,442,000)
-
8-Sep-21
25-Jan-21
25-Jan-21
29-Jan-21
02-Feb-21
02-Feb-21
02-Feb-21
04-Feb-21
11-Feb-21
15-Feb-21
19-Feb-21
05-Mar-21
08-Mar-21
(750,000)
(14,000,000)
(400,000)
(4,000,000)
(4,000,000)
(800,000)
(800,000)
(2,000,000)
(1,125,000)
(3,375,000)
(1,750,000)
(75,000)
$0.065
$0.05
$0.05
$0.06
$0.06
$0.05
$0.05
$0.05
$0.035
$0.03
$0.03
-
16-Jan-21
21-Jun-21
21-Jun-21
27-Feb-21
11-May-21
21-Jun-21
21-Jun-21
21-Jun-21
17-Jan-22
5-Mar-23
14-Apr-21
5-Feb-25
11-Mar-21
(3,000,000)
$0.06
11-May-21
01-Apr-21
(2,250,000)
06-May-21
07-May-21
10-May-21
25-May-21
04-Jun-21
10-Jun-21
21-Jun-21
25-Jun-21
(11,166,295)
(2,171,596)
(662,109)
(208,747)
(4,500,000)
(4,500,000)
(8,250,000)
(210,000)
(74,435,747)
127,644,253
-
$0.06
$0.06
$0.06
$0.03
$0.065
$0.065
-
$0.03
5-Feb-25
11-May-21
11-May-21
11-May-21
14-Apr-21
14-Jun-21
14-Jun-21
5-Feb-25
5-Mar-23
Vested &
unvested
$0.00 -
$0.15
08/09/2021 -
05/02/2025
During the year 47,000,000 performance rights were issued to employees under the Performance Rights
Plan’s approved at the Annual General Meeting held on 29 November 2017 and 21 December 2020. No
options were issued under the EOP. During the year a total of 75,169,419 options and 12,545,000
performance rights expired, lapsed or were cancelled.
Capital Management Policy
The Group’s policy is to effectively manage its capital structure so that it would continue to operate as a going
concern. The Group manages its contributed equity and reserves as part of its capital. The Group is not subject
to any externally imposed capital requirements.
As is similar with many other exploration companies, the operational requirements of the Group are funded
through equity and debt raised in various tranches. The overall capital management policy of the Group
remains unchanged and is consistent with prior years.
83
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
22. SHARE BASED PAYMENTS
Employee share option plan
The Group has an Incentive Employee Option Plan (EOP) for the granting of options to eligible participants
which was approved by Shareholders at a General Meeting of the Company on 21 December 2020. During
the financial year ended 30 June 2021, no options were issued under the EOP to executives and employees.
Options granted during and as at the year ended 30
June 2021:
Outstanding at 1 July 2020
Granted / Vested during the year:
Exercised during the year
Expired/ Lapsed/ Cancelled during the year
Outstanding at 30 June 2021
Exercisable at 30 June 2021
^WA (weighted average)
Options granted during and as at the year ended 30
June 2020:
Outstanding at 1 July 2019
Granted / Vested during the year:
12-Nov-2019 issue of $0.05 vested Unlisted options
expiring 21-Jun-2021
12-Nov-2019 issue of $0.10 unvested Unlisted options
expiring 21-Jun-20221
12-Nov-2019 issue of $0.15 unvested Unlisted options
expiring 21-Jun-20232
11-Nov-2019 Issue of $0.06 vested Unlisted Options
expiring 11-May-2021
18-Dec-2019 Issue of $0.06 vested Unlisted Options
expiring 11-May-2021
11-Nov-2019 Issue of $0.06 vested Unlisted Options
expiring 11-Nov-2020
14-Apr-2020 Issue of $0.03 vested PEKOD Listed
Options expiring 14-Apr-2022
Exercised during the year
Expired during the year
Outstanding at 30 June 2020
Exercisable at 30 June 2020
^WA (weighted average)
Number
WA
Exercise
Price^
Fair
value per
option
190,794,419
-
57,460,000)
(75,169,419)
58,165,000
50,165,000
$0.0659
-
-
-
$0.0441
$0.0302
-
Number
WA
Exercise
Price^
Fair
value per
option
123,800,000
$0.0701
2,000,000
$0.05
$0.0144
3,000,000
$0.10
$0.0111
5,000,000
$0.15
$0.0112
14,000,000
$0.06
$0.0115
7,000,000
$0.06
$0.0083
5,994,419
$0.06
$0.0083
38,000,000
$0.03
$0.0049
-
(8,000,000)
190,794,419
154,794,419
-
-
$0.0659
$0.0436
1 The Unlisted Options exercisable at $0.10, expiring 21 June 2022 issued to Directors, vesting subject to
continuous service and the Company either (a) entering into an agreement with a strategic partner for the
development of its Ngualla Project; or (b) attracting $20 million worth of funding for FEED (Front End
Engineering and Design) for the development of the Ngualla Project.
84
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
2 The Unlisted Options exercisable at $0.15, expiring 21 June 2023 issued to Directors, vesting subject to
continuous service and the Company settling a funding package for the development and construction of the
Ngualla Project.
The volume weighted exercise price of options issued during the year was $nil (2020: $0.052).
The weighted average remaining contractual life for share options outstanding at 30 June 2021 was 1.04 years
(2020: 1.78 years).
The weighted average fair value of options issued during the year was $nil per option (2020: $0.0076).
Performance Rights Plan
The Group has an Incentive Performance Rights Plan (PRP) for the granting of performance rights to eligible
participants which was last approved by Shareholders at a General Meeting of the Company on 21 December
2020.
47,000,000 performance rights were issued during the year ended 30 June 2021 (2020: Nil).
Performance rights granted during and as at
the year ended 30 June 2021:
Number
Exercise Price
Outstanding at 1 July 2020
2,000,000
Granted during the year:
Performance Rights as a Short-Term Incentive
employees. The Performance Rights will vest on
achievement of performance milestones set by
the Board
Performance Rights as a Long-Term Incentive to
employees. The Performance Rights will vest on
achievement of performance milestones set by
the Board
Performance Rights issued under the Company’s
Incentive Performance Rights Plan and with the
approval of the Company’s shareholders given at
the Annual General Meeting held on 21 December
2020
Expired/ Lapsed during the year
Exercised during the year
Outstanding at 30 June 2021
Exercisable at 30 June 2021
WA (weighted average)
Performance rights granted during and as at
the year ended 30 June 2020:
7,400,000
7,600,000
32,000,000
(12,545,000)
(15,017,000)
21,438,000
-
-
-
-
-
-
-
-
Fair value per
performance
right
$0.024
0.037
0.037
0.06
Outstanding at 1 July 2019
Expired during the year
Outstanding at 30 June 2020
Exercisable at 30 June 2020
WA (weighted average)
Fair value per
performance
right
$0.024
Number
Exercise Price
10,000,000
(8,000,000)
2,000,000
2,000,000
-
-
$0.00
$0.00
*Vest subject to achievement of performance criteria as determined by the Company’s Board.
The volume weighted exercise price of rights issued during the year was $0.00 (2020: $0.00)
85
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
The weighted average remaining contractual life for rights outstanding at 30 June 2021 was 3.81 years (2020:
0.68 years)
The weighted average fair value of rights issued during the year was $0.059 per right (2020: $nil)
The options and performance rights have been valued using the Black-Scholes option pricing model
with the following inputs:
$0.037
0.75%
0%
77%
$0.037
Options and performance rights granted during the year ended 30 June 2021:
8-Sep-2020 – unvested STI
Performance Rights to vest on
achievement of performance
criteria by 8 Sep 2021 or the
Performance Rights will lapse
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per performance right
8-Sep-2020 – unvested LTI
Performance Rights to vest on
achievement of performance
criteria by 8 Sep 2024 or the
Performance Rights will lapse
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per performance right
5-Feb-2021
unvested
–
Performance Rights to vest on
achievement of performance
criteria by 5 Feb 2025 or the
Performance Rights will lapse
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per performance right
$0.037
0.75%
0%
77%
$0.037
$0.06
0.75%
0%
77%
$0.06
(WA weighted average)
Options and performance rights granted during year ended 30 June 2020:
12-Nov-2019
issue of $0.05
vested Unlisted options expiring
21-Jun-2021
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per Option
12-Nov-2019
Unlisted
unvested
expiring 21-Jun-2022
WA Share price on date of grant
WA Risk-free interest rate
issue of $0.10
options
$0.043
0.75%
0%
77%
$0.0144
$0.043
0.75%
86
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
issue of $0.15
options
Dividend yield
Expected volatility
Fair value per Option
12-Nov-2019
Unlisted
unvested
expiring 21-Jun-2023
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per Option
Issue of $0.06
11-Nov-2019
vested Unlisted Options expiring
11-May-2021
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per Option
Issue of $0.06
18-Dec-2019
vested Unlisted Options expiring
11-May-2021
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per Option
11-Nov-2019
Issue of $0.06
vested Unlisted Options expiring
11-Nov-2020
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per Option
14-Apr-2020
Issue of $0.03
vested PEKOD Listed Options
expiring 14-Apr-2022
WA Share price on date of grant
WA Risk-free interest rate
Dividend yield
Expected volatility
Fair value per Option
(WA weighted average)
0%
77%
$0.0111
$0.043
0.75%
0%
77%
$0.0112
$0.043
0.75%
0%
77%
$0.0115
$0.038
0.75%
0%
77%
$0.0083
$0.043
0.75%
0%
77%
$0.0085
$0.018
0.25%
0%
77%
$0.0049
The expected volatility reflects the assumption that historical volatility over a period similar to the life of the
options is indicative of future trends, which may not necessarily be the case.
The value of options and performance rights granted are expensed over the vesting period. Included in share
based payments expense of $856,325 (2020: $819,645) is $Nil (2020: $Nil) relating to the shares issued during
year,
the
-$127,405* (2020: $830,828*) related to options granted during the year and prior year, and $983,730* (2020:
-$11,183*) relating to performance rights granted in the prior year.
* Includes write back of non-market based Options and Performance Rights expired unvested during the year.
87
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
23. CONTINGENCIES AND COMMITMENTS
Lease commitments
The Group is committed to an office lease for its Tanzanian office with the lease commitments until 28 February
2024.
Up to 1 year
1 to 5 Years
2021
$
2020
$
12,425
20,708
33,133
17,505
-
17,505
The Group also has certain contracts which contain a lease with terms of 12 months or less and contracts
which contain a lease of low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’
recognition exemptions for these. Leases that are short-term and low value amounted to $35,434 for the year
ended 30 June 2021 (2020: $56,769).
Capital Commitments
At 30 June 2021, the Group has no capital commitments. (2020: Nil).
Contingencies
At 30 June 2021, the Group had no contingencies (2020: Nil).
24. KEY MANAGEMENT PERSONNEL DISCLOSURE
Salary and fees – short term benefits
Non-monetary benefits
Superannuation
Share based payments^
Termination Payments
2021
$
2020
$
1,078,312
1,304,150
18,240
80,163
787,526
191,661
88,048
69,825
305,485
-
2,155,902
1,767,508
^Includes the write back of the share-based payments previously recognised for options and performance rights that lapsed
during the period.
Loans to KMP’s
No loans were made to KMP’s during the financial year (2020: Nil)
Other transaction and balances with KMP’s
During the year Steinepreis Paganin Lawyers and Consultants, a legal practice associated with Mr Jonathan
Murray received $89,677 (2020: $139,723) as fees for the provision of legal advice. Balance outstanding at 30
June 2021 and included in trade creditors amounted to $1,183 (30 June 2020: $7,428).
These costs have not been included in directors’ remuneration as these fees were not paid to individual
directors in relation to the management of the affairs of the Company. All transactions were entered into on
normal commercial terms.
88
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
25. GROUP STRUCTURE
Parent and subsidiaries
The parent and the ultimate parent entity of the Group is Peak Resources Limited, a company listed on the
Australian Securities Exchange.
The components of the Group are:
Parent
Peak Resources Limited
Controlled entities
PRL Pty Ltd
Peak Hill Gold Mines Pty Ltd
Redpalm Pty Ltd
Pan African Exploration Limited
Peak Resources (Tanzania) Limited
Peak African Minerals Limited
PR Ng Minerals Limited (Indirectly)
Incorporation
Ownership interest
2020
2021
Australia
100%
100%
Australia
Australia
Australia
Australia
Tanzania
Mauritius
Tanzania
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
-
Peak Technology Metals Limited
United Kingdom
Teesside Rare Earth Elements Limited (indirectly)
United Kingdom
Ngualla Group UK Limited (indirectly)
United Kingdom
26. FINANCIAL INSTRUMENTS
The financial instruments of the Group are (i) cash and cash equivalents, including other financial assets; (ii)
trade and other receivables; (iii) investments, (iv) trade and other payables, v) royalty liability.
The Group’s principal financial instruments are cash and short term deposits. The main purpose of these
financial instruments is to finance the Group’s operations. It is, and has been throughout the period under
review, the Group’s policy that no trading in financial instruments shall be undertaken.
The financial instruments expose the group to certain risks. The nature and extent of such risks, and the
management's risk management strategy are noted below.
Fair value of financial instruments
Cash and cash equivalents
Trade and other receivables
Other financial assets
Investments
Trade and other payables
Royalty liability
2021
$
2020
$
2,680,367
2,546,021
732,455
-
8,000
31,962
30,000
8,000
(576,746)
(412,178)
(5,686,663)
(5,857,433)
The carrying amount of financial instruments closely approximate their fair value on account of the short
maturity cycle except for royalty liability.
The carrying amount of royalty liability approximates its fair values as it is subject to market rates (Level 2).
89
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Credit Risk
The Group's credit risks arise from potential default of trade and other receivables, cash and cash equivalents
and other financial assets. The maximum credit exposure is limited to the carrying amount of trade and other
receivables of $732,455 (2020: $31,962) at 30 June 2021.
As at 30 June 2021, the receivable balances consist primarily of GST credits. Management does not consider
the GST receivable to be at risk of default as these are receivable from the Government agencies.
Credit risk from balances with banks and financial instruments is mitigated by holding balances with banks
with a high credit rating. The maximum exposure for cash and cash equivalents is shown below.
There were no significant concentrations of credit risks.
Liquidity risk
The Group's liquidity risks arise from potential inability of the Group to meet its financial obligations as and
when they fall due, generally due to shortage of cleared funds. The Group is exposed to liquidity risk on account
of trade and other payables. The Group manages its liquidity risk through continuously monitoring the cleared
funds position; and by utilising short term cash budgets.
The contractual maturity analysis of the Group's financial instruments are noted below:
2021
2020
Up to 3
months
$
> 3
months
$
Total
$
Up to 3
months
$
> 3
months
$
Total
$
Financial
liabilities
Trade and other
payables
Royalty liability
Total financial
liabilities
Financial assets
Cash and cash
equivalents
Other financial
assets
Investments
Trade and other
receivables
Total financial
assets
(576,746)
-
(576,746)
(412,178)
-
(412,178)
-
(5,686,663)
(5,686,663)
-
(5,857,433)
(5,857,433)
(576,746)
(5,686,663)
(6,263,409)
(412,178)
(5,857,433)
(6,269,611)
2,680,367
-
-
-
-
2,680,367
2,546,021
-
2,546,021
-
8,000
8,000
-
-
30,000
30,000
8,000
8,000
732,455
-
732,455
31,962
-
31,962
3,412,822
8,000
3,420,822
2,577,983
38,000
2,615,983
Interest rate risk
Interest rate risk is the risk that fair values and cash flows of the Group’s financial instruments will be affected
by changes in the market interest rates.
The Group’s cash and cash equivalents are impacted by interest rate risks. Trade and other receivables and
payables have short maturities and are non-interest bearing. Management believes that the risk of interest
rate movement would not have a material impact of the Group’s operations.
Management does not closely monitor the interest rates offered on cash and cash equivalents as the Group’s
primary objective is exploration of resources rather than earning interest income. The cash balances are
invested at the prevailing short term market interest rates with credit worthy financial institutions.
The sensitivity of the interest bearing financial instruments to a 1% change in market interest rate are noted
below:
90
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Cash and cash equivalents
Impact on profit and equity: +1% movement
Impact on profit and equity: -1% movement
2021
$
2020
$
2,680,367
26,804
(26,804)
2,546,021
25,460
(25,460)
Foreign currency risk
The Group’s exposure to foreign currency price risk is limited to the USD denominated loans and royalty liability
balances. At 30 June 2021 the Group had an outstanding balance of USD $5,191,191 (2020: USD
$5,191,191). The Group will transfer cash and cash equivalents into foreign currency to meet short term
expenditure obligations.
The Group’s expenditure obligations in Tanzania are primarily in US dollars as a result the Group is exposed
to fluctuations in the US dollar to Australian currency. These exposures are not subject to a hedging
programme. The Board and management from time to time having regard to likely forward commitments review
this policy.
The following table demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with
all other variables held constant. The impact on the Group’s profit before tax and equity is due to changes in
the fair value of the USD denominated loan balances.
USD$ denominated Royalty liability balances in AU$
Impact on profit and equity: +5% movement in USD exchange rate
Impact on profit and equity: -5% movement in USD exchange rate
2021
$
5,686,663
284,333
(284,333)
2020
$
5,857,433
292,872
(292,872)
Commodity price risk
The Group’s exposure to commodity price risk is minimal at this stage of the operation.
Changes in liabilities arising from financing activities during the year ended 30 June 2021:
1-Jul-20
Cash flows
$
$
2021
Foreign
exchange
movement
$
Other
Movement
30-Jun-21
$
$
5,857,433
-
(494,674)
323,904
5,686,663
-
(3,220,392)
-
3,220,392
-
5,857,433
(3,220,392)
(494,674)
3,544,296
5,686,663
Financial liabilities
Royalty liability
Lease liabilities
Total liabilities from
financing activities
Changes in liabilities arising from financing activities during the year ended 30 June 2020:
1-Jul-19
Cash flows
$
$
2020
Foreign
exchange
movement
$
Other
Movement
30-Jun-20
$
$
6,865,884
-
6,865,884
-
-
-
-
(6,865,884)
-
74,748
5,782,685
5,857,433
74,748
(1,083,199)
5,857,433
Financial liabilities
Current and Non-current
interest bearing loans and
borrowings
Royalty Liability
Total liabilities from
financing activities
91
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
27. SUBSEQUENT EVENTS
On 22 July 2021, the Cabinet of Ministers of the Government of Tanzania announced that it had approved
Peak’s SML application, the final major regulatory approval required for the Ngualla project. The SML provides
the Company with the exclusive right to conduct mining operations at Ngualla, with the licence covering an
area of approximately 18.14km2. Peak will now work with the government to finalise an Economic Framework
Agreement, Shareholder’s Agreement and other related documentation required as part of a formal grant of
the SML by the Minister of Minerals.
Following firm commitments from investors, on 6 August 2021 the Company announced commencement of a
two-tranche equity placement to sophisticated, professional and other exempt investors pursuant to section
708 of the Corporations Act 2001. The Placement, totalling A$30.0 million at a price of A$0.09 per share,
consists of:
- Tranche One placement comprising of 226.8 million shares (A$20.4 million) issued on 13 August 2021
which utilised Peak’s capacity to issue up to 15% new capital without shareholder approval per Listing
Rule 7.1; and
- Tranche Two placement comprising of a further 106.4 million shares (A$9.6 million), subject to
shareholder approval at the General Meeting called for 28 September 2021.
- Additionally, as a way for existing shareholders to increase their investment in the Company at the
same price as the placement, Peak also announced a SPP of up to A$4.0 million subject to
shareholder approval at the General Meeting called for 28 September 2021.
The net proceeds of the Placement and SPP will be used by Peak to progress the development of the Ngualla
Project and the Teesside Refinery (including offtake and financing arrangements), expanding the Company’s
technical and marketing team, and the repayment of the ANRF Royalty Facility.
Contemporaneous to the placement and SPP announced on 6 August 2021, Peak also announced that it had
entered into a Royalty Repayment and Release Agreement (“Royalty Agreement) with respect to the
repayment of a 2.0% life of mine gross revenue royalty financing facility made available by ANRF Royalty
Company Limited (“ANRF”), a company associated with Peak substantial shareholder Appian Pinnacle Holdco
Limited.
Under the Royalty Agreement, Peak will make a payment to ANRF of US$10.0 million (gross of withholding
tax), which comprises the repayment of principal of US$5.2 million and an accrued interest payment of US$4.8
million. The Royalty Agreement is subject to shareholder approval at the General Meeting called for 28
September 2021 pursuant to ASX listing Rule 10.1.
Other than the matters referred to above there were no other events that have a material impact on the financial
statements or operations of the Group and Company.
92
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
28. PARENT ENTITY DISCLOSURE
The following details information related to the parent entity, Peak Resources Limited, at 30 June 2021. The
information presented here has been prepared using consistent accounting policies as presented in Note 2.
Financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Share based payment reserve
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
2021
$
2020
$
3,347,560
46,208,048
2,551,299
40,997,981
49,555,608
43,549,280
420,005
7,834,740
8,254,745
573,547
7,580,226
8,153,773
41,300,863
35,395,507
108,033,483
100,209,089
4,707,567
3,851,242
(71,440,187)
(68,664,824)
41,300,863
35,395,507
(2,775,363)
(3,606,640)
-
-
(2,775,363)
(3,606,640)
Peak Resources Limited had no commitments to purchase property, plant and equipment or contingent
liabilities at 30 June 2021 (2020: None).
93
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Peak Resources Limited, I state that:
In the opinion of the Directors:
(a)
(b)
(c)
Subject to the matters set out in Note 2(a) to the Financial Statements 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 attached financial statements are in compliance with International Financial Reporting Standards,
as stated in note 2 to the financial statements;
the attached financial statements and notes thereto for the financial year ended 30 June 2021 are in
accordance with the Corporations Act 2001, including compliance with accounting standards and
giving a true and fair view of the financial position as at 30 June 2021 and performance of the Group
for the year ended on that date;
(d)
The Directors have been given the declarations required by section 295A of the Corporations Act
2001
Signed in accordance with a resolution of the Directors made pursuant to s295(5) of the Corporations Act
2001.
On behalf of the Directors
Tony Pearson
Non-Executive Chair
Sydney, 15 September 2021
94
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
ASX ADDITIONAL INFORMATION
Quoted security distribution
The distribution of members and their holdings of quoted equity securities in the company as at 8 October
2021 were as follows:
Number Held as at 4 October 2021
Class of Equity Securities
PEK Fully Paid Ordinary Shares
1-1,000
1,001 - 5,000
5,001 – 10,000
10,001 - 100,000
100,001 and over
Total
174
353
518
2,140
1,382
4,567
There were 633 holders with less than a marketable parcel of fully paid shares.
Number Held as at 8 October 2021
Class of Equity Securities
PEKOD $0.03 Options (Expire 14 April 2022)
1-1,000
1,001 - 5,000
5,001 – 10,000
10,001 - 100,000
100,001 and over
Total
Substantial Security holders
-
2
2
7
68
79
The substantial shareholder listed in the Company’s register as at 8 October 2021 was:
Holder
Appian Pinnacle Holdco Limited
Number of shares
435,878,376
Percentage of issued capital
21.93%
Unquoted Securities
Class of Equity Security
$0.035 options expiring 17 January 2022
Unvested $0.10 options expiring 21 June 2022
Unvested $0.15 options expiring 21 June 2023
Unvested Performance Rights expiring 5 February 2025 20,500,000
$0.03 options expiring 5 March 2023
8,490,000
Number
2,000,000
3,000,000
5,000,000
Number of Security Holders
6
1
1
3
6
Names of persons holding greater than 20% of a class of unquoted securities not issued under an
employee incentive scheme:
Class of Equity Security
Unvested $0.10 options expiring 21 June 2022
Number
Holder
3,000,000
Ciao! Punto Pty Limited ATF
Ciao! Punto Family Trust
Ciao! Punto Pty Limited ATF
Ciao! Punto Family Trust
Unvested $0.15 options expiring 21 June 2023
5,000,000
Voting Rights
Ordinary Shares
In accordance with the Company's Constitution, on a show of hands every member present in person or by
proxy or attorney or duly authorised representative has one vote. On a poll every member present in person
or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary share held.
Restricted Securities
As at 30 June 2021, there were no restricted securities.
95
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Twenty largest security holders
The names of the twenty largest holdings of quoted equity securities as at 8 October 2021 are as follows:
PEK Fully Paid Ordinary Shares
Name
APPIAN PINNACLE HOLDCO LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
CS THIRD NOMINEES PTY LIMITED
CITICORP NOMINEES PTY LIMITED
SPARTA AG
SAIL AHEAD PTY LTD
NATIONAL NOMINEES LIMITED
BUSHELL NOMINEES PTY LTD
ACN 161 604 315 PTY LTD
ONE MANAGED INVESTMENT FUNDS LIMITED
SAMBOLD PTY LTD
ASHABIA PTY LTD
CRX SECURITIES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
PINNACLE SUPERANNUATION PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
MEURER INVESTMENTS PTY LTD
TOTAL TOP 20
TOTAL ON ISSUE
PEKOD Options
Name
NINETY THREE PTY LTD
ACN 161 604 315 PTY LTD
924 PTY LTD
SHAW AND PARTNERS LIMITED
SAIL AHEAD PTY LTD
JBBM PTY LTD
MRS DANIELLA WEBER
CASTLELYONS PTY LTD
BOSTON FIRST CAPITAL PTY LTD
PINNACLE SUPERANNUATION PTY LIMITED
MR DAVID JAMES STEWART
MR RICHARD SMITH
ASHABIA PTY LTD
MISS JACLYN MARIE LEMKE
KRUGER PARK PTY LTD
MR ALISTAIR JAMES MCKENZIE
SEVENSPEED PTY LTD
DUNN & HORNE PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
FIVE T CAPITAL PTY LTD
BONOMINI ENTERPRISES PTY LTD
EASTERN UNION INVESTMENTS PTY LTD
MR MICHAEL DIMITRIOS PRASSAS
WISEVEST PTY LTD
ACN 161 604 315 PTY LTD
Number Held
% Held
435,878,376
62,968,462
49,378,619
41,159,651
31,250,000
27,699,375
27,407,811
27,060,419
24,000,000
22,600,868
20,000,000
20,000,000
16,333,335
16,325,000
15,650,000
15,437,500
15,146,469
14,000,000
13,212,090
13,067,930
13,000,000
921,575,905
1,987,867,461
Number
Held
13,000,000
13,000,000
5,200,000
5,000,000
4,000,000
3,133,333
3,000,000
2,500,000
2,037,090
2,000,000
1,872,877
1,666,667
1,500,000
1,500,000
1,166,667
1,166,000
1,000,000
1,000,000
1,000,000
750,000
750,000
720,000
666,667
666,666
530,000
21.93
3.17
2.48
2.07
1.57
1.39
1.38
1.36
1.21
1.14
1.01
1.01
0.82
0.82
0.79
0.78
0.76
0.70
0.66
0.66
0.65
46.36
100.00
% Held
15.94
15.94
6.38
6.13
4.91
3.84
3.68
3.07
2.50
2.45
2.30
2.04
1.84
1.84
1.43
1.43
1.23
1.23
1.23
0.92
0.92
0.88
0.82
0.82
0.65
96
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
TOTAL TOP 20
TOTAL PEKOD ON ISSUE
68,825,967
81,541,253
84.41
100.00
Note: Information in the above schedule is based on data recorded in the Company’s Share Register on the
date noted. A listed holder may hold shareholdings or hold an associated shareholding in addition to those
listed above. The data provided is solely attributable to a HIN or SRN particular to that holding and as such
may not necessarily represent the total of all holdings of the shareholder noted or their associates.
Corporate Governance Statement
The Company has adopted the recommendations of the ASX Corporate Governance Council’s Principles and
Recommendations (Third Edition) in regard to the Corporate Governance Disclosures and provides disclosure of
the
at:
http://www.peakresources.com.au/corporate-governance/
Governance
Company’s
Company’s
Statement
Corporate
website
the
on
97
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
TENEMENT SCHEDULE AND RESERVES AND RESOURCES
Project
Tenement
%
Status
Arrangement/Comment
Tanzanian
Projects
Mikuwo
PL 9157/2013
100
Granted
Mlingi
Ngualla
PL
10897/2016
100
Granted
SML
00601/2017
100
Approved Application;
Formal Grant Pending
Held by 100% Tanzanian
subsidiary company PR NG
Minerals Ltd
Held by 100% Tanzanian
subsidiary company PR NG
Minerals Ltd
Held by 100% Tanzanian
subsidiary company PR NG
Minerals Ltd
ORE RESERVES AND MINERAL RESOURCES
CORPORATE GOVERNANCE AND INTERNAL CONTROLS
Peak ensures that the Ore Reserve and Mineral Resources estimates are subject to appropriate governance
and internal controls which are reviewed periodically in line with the expansion and development of the
Company. The annual review date is 30 June.
The Mineral Resource estimate and Ore Reserve were derived by independent consulting organisations whose
staff are highly competent and professional. Competent Persons named by the company are Members or
Fellows of the Australian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists and
qualify as Competent Persons as defined in the JORC Code. The Mineral Resource consultant carried out
rigorous reviews of the quality of the database and geological models prior to estimation. Internal technical
reviews are carried out systematically by both of the independent consulting organisations.
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcements and that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to apply and have not materially
changed. The Company confirms that the form and context in which the Competent Person's findings are
presented have not been materially modified from the original market announcements.
THERE HAS BEEN NO CHANGE TO ORE RESERVES AND MINERAL RESOURCES WITH PREVIOUS
YEAR
As announced on the 25 August 2021, a Bankable Feasibility Study Update has been commissioned by Peak
for the Ngualla Rare Earth Project and the Teesside Refinery Project. At this time, it is not known whether the
Bankable Feasibility Study Update will result in any update to the Ore Reserve or Mineral Resources.
Ore Reserve estimates
The Ore Reserve estimate was completed by Orelogy Consulting Pty Ltd and released to the ASX on 12 April
2017 titled "Ngualla Rare Earth Project - Updated Ore Reserve". The release includes a detailed summary of
the supporting project assumptions and data.
98
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Table 1: Classification of Ore Reserve estimates for the Weathered Bastnaesite Zone at Ngualla.
JORC Category
Proved
Probable
Total
ORE RESERVE AS AT 30 JUNE 2021
Ore Tonnes
(millions)
17.0
1.5
18.5
REO %
Contained REO Tonnes
4.78
5.10
4.80
813,000
74,000
887,000
See Table 2 for the breakdown of individual REO’s. Reported according to the JORC 2012 Code and Guidelines.
Table 2: Relative components of individual rare earth oxides (including yttrium) as a percentage of total REO for the Ngualla
Project Ore Reserve estimate (refer to Table 1)
RARE EARTH OXIDES
Lanthanum
Cerium
REO GRADE (%)
% OF TOTAL REO
Proved
Probable
All
Proved
Probable
All
1.318
1.418
1.326
27.59
27.80
27.61
2.305
2.456
2.317
48.25
48.15
48.24
Praseodymium
0.228
0.243
0.229
4.77
4.77
4.77
Neodymium
Samarium
Europium
Gadolinium
Terbium
Dysprosium
Holmium
Erbium
Thulium
Ytterbium
Lutetium
Yttrium
0.788
0.838
0.792
16.49
16.43
16.49
0.077
0.082
0.077
1.61
1.61
1.61
0.014
0.015
0.014
0.30
0.28
0.30
0.029
0.031
0.030
0.62
0.60
0.62
0.002
0.002
0.002
0.05
0.05
0.05
0.004
0.004
0.004
0.07
0.07
0.07
0.000
0.000
0.000
0.01
0.01
0.01
0.001
0.002
0.002
0.03
0.03
0.03
0.000
0.000
0.000
0.00
0.00
0.00
0.001
0.001
0.001
0.000
0.000
0.000
0.01
0.00
0.01
0.01
0.00
0.00
0.010
0.010
0.010
0.20
0.19
0.20
Total REO
4.78
5.10
4.80
100.00
100.00
100.00
Values may not balance due to rounding to 0.01%
Ore Reserves
The information in the announcement that relates to Ore Reserve estimates and estimated mine operating costs
is based on information compiled by Mr Ryan Locke, a Competent Person who is a Member of the Australasian
Institute of Mining and Metallurgy. Mr Locke is a Principal Planner and is employed by Orelogy Pty Ltd, an
independent consultant to Peak Resources. Mr Locke has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. Ryan Locke consents to the inclusion in the report of the maters based
on his information in the form and context in which it appears.
99
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Mineral Resource estimates
The information in this statement that relates to the Mineral Resource estimates is based on work conducted by
Rod Brown of SRK Consulting (Australasia) Pty Ltd, and the work conducted by Peak Resources, which SRK
has reviewed. Rod Brown takes responsibility for the Mineral Resource estimate. Rod Brown is a Member of The
Australian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as Competent
Person in terms of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code, 2012 edition).Rod Brown consents to the inclusion of such information in this report in
the form and context in which it appears.
Mineral Resource estimates
The Mineral Resource as at 30 June 2020 is detailed in the ASX announcement titled ‘Mineral Resource
estimate re-stated to include barite’ of 2 March 2017. The estimates were reported according to the JORC
2012 Code and Guidelines and were completed by Rod Brown of SRK Consulting (Australasia) Pty Ltd.
Table 3: Classification of All Mineral Resources for the Ngualla Rare Earth Project at a 1.0% REO cut-off grade.
Lower Cut-
off Grade
JORC Category
Ngualla All
Mineral
Resources
1.0% REO
Measured
Indicated
Inferred
Total
MINERAL RESOURCE AS AT 30 JUNE 2021
Ore Tonnes
(millions)
86.1
112.6
15.7
214.4
REO %
2.61
1.81
2.15
2.15
Contained
REO Tonnes
2,250,000
2,040,000
340,000
4,620,000
BaSO4
%
20.2
13.8
17.6
16.6
* REO (%) includes all the lanthanide elements plus yttrium oxide. See Tables 5 for breakdown of individual REO’s. Figures above may not
sum due to rounding. The number of significant figures does not impy an added level of precision.
The Weathered Bastnaesite Zone Mineral Resource estimate summarised below is a subset and contained
within the All Mineral Resources reported in Table 3 above and is detailed in the same ASX announcements
as stated above.
Table 4: Classification of Mineral Resources for the Weathered Bastnaesite Zone mineralisation at a 1.0% and 3.0% REO
cut-off grades.
Lower Cut-off
Grade
JORC Category
Ore Tonnes
(millions)
REO %
Contained
REO Tonnes
BaSO4
%
MINERAL RESOURCE AS AT 30 JUNE 2021
Ngualla
Weathered
Bastnaesite
Zone
1.0% REO
3.0% REO
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
18.9
1.9
0.5
21.3
17.9
1.7
0.4
19.9
4.75
4.85
4.43
4.75
4.88
5.14
4.84
4.90
900,000
90,000
20,000
1,010,000
870,000
90,000
20,000
980,000
37.8
38.3
31.5
37.7
38.6
39.3
35.4
38.6
* REO (%) includes all the lanthanide elements plus yttrium oxide. See Table 5 for breakdown of individual REO’s. The Weathered
Bastnaesite Zone Mineral Resource is contained within an is a subset of the Total All Ngualla Project Mineral Resource at a 1% REO
cut-off grade in Table 3 above. Figures above may not sum due to rounding. The number of significant figures does not impy an added
level of precision.
100
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
Table 5: Relative components of individual rare earth element oxides (including yttrium) as a percentage of total REO for 2018 Total Ngualla
+1% REO, Weathered Bastnaesite Zone +1% REO and Weathered Bastnaesite Zone +3% REO and Mineral Resources summarised in
Tables 3 and 4.
NGUALLA 2020
TOTAL MINERAL
RESOURCE
NGUALLA 2020
WEATHERED
BASTNAESITE ZONE
RESOURCE
NGUALLA 2020
WEATHERED
BASTNAESITE ZONE
RESOURCE
1% REO
1% REO
3% REO
REO grade
(%)
% of total
REO
REO grade
(%)
% of total REO
REO grade
(%)
% of total
REO
0.587
27.25
1.310
1.039
48.23
2.293
27.58
48.27
0.104
0.348
0.036
0.007
0.016
0.001
0.003
0.000
0.001
0.000
0.001
0.000
0.010
2.15
4.81
16.2
1.66
0.34
0.75
0.07
0.16
0.02
0.06
0.00
0.04
0.00
0.47
100
0.227
0.784
0.076
0.014
0.029
0.002
0.004
0.000
0.002
0.000
0.001
0.000
0.010
4.75
4.77
16.5
1.60
0.29
0.61
0.05
0.07
0.01
0.03
0.00
0.01
0.00
0.20
100
1.353
2.364
0.234
0.806
0.078
0.014
0.030
0.002
0.004
0.000
0.002
0.000
0.001
0.000
0.010
4.90
27.63
48.27
4.77
16.5
1.60
0.29
0.61
0.05
0.08
0.01
0.03
0.00
0.01
0.00
0.20
100
OXIDE
Lanthanum
Cerium
La2O3
CeO2
Praseodymium
Pr6O11
Neodymium
Nd2O3
Samarium
Europium
Sm2O3
Eu2O3
Gadolinium
Gd2O3
Terbium
Tb4O7
Dysprosium
Dy2O3
Holmium
Erbium
Thulium
Ytterbium
Lutetium
Yttrium
Total
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
* Figures may not sum due to rounding.
101
PEAK RESOURCES LIMITED – ANNUAL FINANCIAL REPORT
CORPORATE DIRECTORY
PEAK RESOURCES LIMITED
ABN:72 112 546 700
DIRECTORS
Tony Pearson
Bardin Davis
Abdullah Mwinyi
Giselle Collins
Rebecca Morgan
Non-Executive Chair
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
COMPANY SECRETARY
Philip Rundell
REGISTERED OFFICE
Mezzanine Floor
190 St Georges Terrace
Perth WA 6000
SOLICITORS
Corrs Chambers Westgarth (Australia)
Level 6
Brookfield Place Tower 2
123 St Georges Terrace
Perth WA 6000
Clyde & Co/Ako Law (Tanzania)
11th Floor, Jubilee Towers
Ohio Street, Dar es Salaam
White & Case
Level 32
525 Collins Street
Melbourne VIC 3000
AUDITORS
Ernst and Young
11 Mounts Bay Road
Perth WA 6000
SHARE REGISTRY
Link Market Services Limited
Level 12,
680 George Street
Sydney NSW 2000
CONTACT DETAILS
Website: www.peakresources.com.au
Email: info@peakresources.com.au
Telephone:
Facsimile:
(08) 9200 5360
(08) 9226 3831
STOCK EXCHANGE LISTING
Australian Securities Exchange Limited
Home Exchange: Perth, Western Australia
Code: PEK
102