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PGM Annual Report for the year ended 30 June 2020
CONTENTS
Chairman’s Letter to Shareholders
Review of Operations
Challa Project
Munni Munni Project
Platina Scandium Project
Skaergaard Project
Blue Moon Project
Annual Mineral Resources and Ore Reserves Statement
Tenement Interests
Directors’ Report
Auditor’s Independence Declaration
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
Declaration by Directors
Independent Audit Report to the members of
Platina Resources Limited
Shareholder Information
Corporate Governance Statement
3
4
5
6
7
9
10
12
15
16
CORPORATE INFORMATION
Directors and Company Secretary
Auditors
Brian Moller (Non-executive Chairman)
Corey Nolan (Managing Director)
Christopher Hartley (Non-executive Director)
John Anderson (Non-executive Director)
Paul Jurman (Company Secretary)
Head Office and Registered Office
c/- Corporate Consultants Pty Ltd
Level 2, Suite 9,
389 Oxford Street
Mount Hawthorn, WA, 6016
Phone: +61 8 9380 6789
Email: admin@platinaresources.com.au
www.platinaresources.com.au
Solicitors
HopgoodGanim Lawyers
Level 8, Waterfront Place
1 Eagle Street
Brisbane QLD 4000
Bentleys
Level 9, 123 Albert Street
Brisbane QLD 4000
Share Registry
Link Market Services
Level 12 QV1 Building
250 St Georges Terrace
Perth WA 6000
Phone: 1300 554 474
Stock Exchange Listing
Australian Securities Exchange
ASX Code: PGM
Australian Business Number
25 119 007 939
Country of Incorporation
Australia
PGM Annual Report for the year ended 30 June 2020
2
Platina Resources Limited is a global mineral resources
exploration and development company listed on the
Australian Securities Exchange listed (ASX:PGM). The
company controls a portfolio of precious, speciality and
base metal projects at various stages of development.
Shareholder value is created by advancing these projects
through exploration, feasibility, permitting and towards
development and realising value through either sale, joint
venture or development.
Our Strategy
Platina’s strategy is to
create a carefully chosen
portfolio of projects at
various development stages,
thereby balancing the risk –
based on the following
investment criteria:
•
•
•
Prospective commodities – strong demand and price
outlooks and the ability to secure long-term supply
contracts to underwrite project financing
Potential to generate high returns – seeking high rate of
return and bottom cost quartile projects not reliant on
commodity price performance
Stable investment jurisdictions – pro-mining and
politically stable
The company utilises its in-house expertise and experience to
identify, acquire, explore, and develop mineral project
opportunities.
Value is added through exploration activities including
sampling, mapping, geophysics, drilling, evaluation studies and
permitting.
As our projects advance along the value curve, they are
monetised according to Platina’s technical and financial
capability, and either sold, developed or joint ventured. This
enables projects to achieve optimal scale, minimises Platina
capital outlay and accelerate returns to investors.
PGM Annual Report for the year ended 30 June 2020
3
CHAIRMAN’S LETTER
TO SHAREHOLDERS
Our other Australian assets still remain a priority. Recent drill
results at Munni Munni in Western Australia, where we control
a 30% interest, have confirmed the potential of the project to
host one of Australia’s largest undeveloped palladium deposits
with credits of platinum, gold and rhodium. The palladium and
rhodium prices have climbed to record highs this year so, like
gold, they are good metals to be in right now.
At our scandium project in New South Wales, we’re testing
new extraction technologies to improve the overall economics
which will support the company’s campaign to secure
production offtake agreements and enable project financing.
Platina’s decision to revise its strategy to focus more locally
coincides with the current sale of our Skaergaard Project in
Greenland to Canada’s Eastern Zinc Corporation, now called
Major Precious Metals Corp (MPMC), in a transaction worth
approximately AUD $14.6 million in shares (55 million shares
based on MPMC’s share price of CAD 0.25 per share on the
29 September 2020) and cash (CAD 0.5 million). This
transaction was nearing completion at the time of writing this
letter.
At our Blue Moon Project in the United States, a pandemic
hotspot, Platina suspended field activities and is in discussions
with its joint venture partner about how to realise value from
the project.
This year has presented many challenges but I’m excited by
the opportunities ahead, particularly as we seek to expand our
Australian gold footprint amid robust gold prices. On behalf of
the Board, I thank you for your continued support and look
forward to delivering on your investment in Platina.
Yours faithfully
Brian Moller
Chairman
Dear shareholders
On behalf of the Board of Directors of Platina, I take pleasure
in presenting the Annual Report for 2020.
This year has been marked by unprecedented market
turbulence due to the coronavirus pandemic. As a company
with a worldwide portfolio of early stage metal projects, Platina
redirected its focus away from overseas territories to Australia
as international travel and lockdown restrictions escalated.
Record gold prices this year brought the metal into stronger
consideration. Our revised strategy to build a gold portfolio in
proven Australian provinces was quickly transformed into
action in early June when we entered into a conditional
agreement to acquire a 100% interest in the Challa Gold
Project located in-between the prolific Mt Magnet and
Sandstone gold districts in Western Australia. With the Challa
tenements now granted, we’re looking forward to starting a
low-cost RAB drilling program at site to identify primary
targets. We’re confident we can add a lot of value quickly with
a relatively small investment.
PGM Annual Report for the year ended 30 June 2020
4
REVIEW OF OPERATIONS
In the past year Platina has been actively
advancing its portfolio of projects along the
value curve and pursuing selected
monetisation options to create shareholder
value.
A Skaergaard internal scoping study completed in December
2019 defined a clearer pathway forward for the project,
demonstrating the need for a partner that can bring financial
and technical expertise to what has the potential to be a very
large scale, high capital, development project in a remote
location without infrastructure. In June 2020, Platina signed a
conditional sale agreement for the project with Canada’s Major
Precious Metals (CSE:SIZE), formerly Eastern Zinc Corporation.
The economic environment for securing scandium offtake
agreements and joint venture partners for the Platina Scandium
Project remain very challenging. Platina is tackling this challenge
by alignment with global trading firm, Traxys Europe SA and
testing alternative process development opportunities.
No exploration work was completed at the Munni Munni Project
during the period although a small drilling program completed in
August 2020 highlighted the potential of the project to be one
of the few palladium, platinum, gold and rhodium deposits in
Australia.
The Platina board made a strategic decision in early 2019 to
acquire a new project and completed the Blue Moon zinc-
copper-gold acquisition in August 2019. The objective of the
acquisition was to optimise the risk-reward balance of the
company’s asset portfolio by diversifying the commodity mix
away from speciality metals and into a manageable scale
project for a company of Platina’s size. The company’s existing
project pipeline has matured and an earlier stage asset, like the
Blue Moon Project, can be progressed along the resources
value curve through drilling and feasibility studies will generate
more news flow and potential valuation upside.
However, in response to the global coronavirus epidemic in
early 2020, Platina redirected its focus away from overseas
territories to Australia as international travel and lockdown
restrictions escalated.
Record gold, palladium and rhodium prices in 2020 shifted the
company’s attention to Western Australia where the geology is
highly prospective for identifying world class projects in this
commodity suite.
1
2
3
4
5
Challa Project
Munni Munni Project
Platina Scandium Project
Blue Moon Project
Skaergaard Project
5
4
2
1
3
PGM Annual Report for the year ended 30 June 2020
5
CHALLA PROJECT
Target: Gold, Western Australia
Ownership: Platina 100%
Tenements: EL58/552 and EL58/553
In June 2020, Platina announced it entered into a conditional
agreement to acquire a 100% interest in the Challa Gold Project
located in-between the prolific Mt Magnet and Sandstone gold
districts in Western Australia, 500km north-east of Perth.
The project includes two high quality exploration licences
(granted in July 2020) covering 293km2. The Sandstone
Province has produced over 1.3 million ounces (Moz) of gold
from numerous underground and open pit mining operations,
while Mt Magnet produced over 6Moz since discovery in 1891.
Nearby, the Youanmi Gold Mine produced 670,000oz of gold
throughout its life and is currently the focus of new resource
drilling targeting high-grade gold zones.
The Challa Gold Project will provide Platina with an exposure to
a world-class gold province at a very low entry cost. The Yilgarn
Craton of Western Australia has been a prodigious gold
producing province since the 19th century and home to many
successful mining operations.
The project lies within an area defined by more than 50 gold
occurrences, on a previously unrecognised gold trend -
Paynesville Gold Trend, which intersects and interacts with the
Challa Shear - a classic Yilgarn Craton structural setting for plus
million-ounce gold deposits. The tenements have not been the
subject of any recent or modern exploration activities.
Historical reconnaissance exploration at the northern end of the
project area identified outcropping quartz veins that assayed
5.1 and 6.8 g/t gold from the rare basement geology exposed
at surface. This vein trends to the north-west and disappears
under thin transported cover.
Subsequent to the end of the period, the Challa Gold Project
tenements were granted and transferred to Platina. Platina
plans to commence field activities which includes a low-cost
Rotary Air Blast (RAB) drilling program to test primary targets.
PGM Annual Report for the year ended 30 June 2020
6
MUNNI MUNNI PROJECT
Target: Palladium, platinum, gold & rhodium, Western Australia
Ownership: Platina 30%, Artemis Resources (ASX:ARV) 70%
Tenements: M47/123-126 and E47/3322
Platina controls a 30% interest in Munni Munni while partner
Artemis Resources (Artemis, ASX:ARV) has the remaining 70%
interest and is project operator. The project comprises four
mining licences and an exploration licence, covering a 64km2
tenement area. Munni Munni has been the subject of a number
of historical drilling programs, scoping studies, metallurgical
testing programs and resource estimates. Further work is
required to bring the historical resource up to JORC 2012
standard.
Subsequent to the end of the period, an exploration and drilling
program at the Munni Munni Project near Karratha in Western
Australia confirmed the project as one of Australia’s largest
undeveloped palladium deposits and endowments of platinum,
gold and rhodium.
The exploration program included drilling 12 reverse circulation
holes (1,928m) and the production of high-resolution photos of
the site for future exploration planning purposes. Drilling
targeted the entire upper portion of the mineralisation, to a
maximum depth of 200 metres and highlights, included1 :
• 6.5m @ 1.68g/t 2PGE + 0.14g/t Au, (1.13g/t Pd, 0.55g/t
Pt) from 41m, 18MMAD001;
• 4m @ 2.44g/t 2PGE + 0.27g/t Au, (1.48g/t Pd, 0.96g/t
Pt) from 34.5m, 18MMAD003;
• 5m @ 2.35g/t 2PGE + 0.17g/t Au, (1.49g/t Pd 0.86g/t
Pt) from 34.5m, 18MMAD005;
• 5m @ 1.36g/t 2PGE + 0.09 g/t Au, (0.96g/t Pd 0.44g/t
Pt) from 28m, 18MMAD006;
• 5m @ 1.42g/t 2PGE + 0.11 g/t Au, (0.94g/t Pd, 0.48 g/t
Pt) from 65.5m, 18MMAD007;
• 6m @ 1.65g/t 2PGE + 0.17g/t Au, (0.97g/t Pd, 0.68g/t
Pt) from 82m, 18MMAC008;
• 5m @ 1.68g/t 2PGE + 0.14g/t Au, (1.08g/t Pd 0.6g/t Pt)
from 19m, 20MMRC005;
• 5m @ 1.19g/t 2PGE + 0.16g/t Au, (0.74g/t Pd 0.45g/t
Pt) from 70m, 20MMRC006;
1 More details can be found in the Artemis ASX release dated 18 June 2020,
“Drilling underway at Munni Munni PGE Project and transaction update”.
• 7m @ 1.43g/t 2PGE + 0.11g/t Au, (0.91g/t Pd, 0.52g/t
Pt) from 122m, 20MMRC007;
• 6m @ 1.17g/t 2PGE + 0.13 g/t Au, (0.76 g/t Pd, 0.41 g/t
Pt) from 144m, 20MMRC011; and
• 4m @ 1.07g/t 2PGE + 0.04 g/t Au, (0.7 g/t Pd, 0.37g/t
Pt) from 194m, 20MMRC012 to end of hole.
The results come at a time when palladium price recently
climbed to a record high of $US2,875 per ounce in February
and is currently trading above US$2,200/oz.
Given the significant increase in the price of palladium, gold and
rhodium during 2020, this has enhanced the number of
options available to create value from the project. The drilling
program is another step that works towards understanding the
exploration potential of the property and working towards
completing a JORC 2012 compliant resource.
Platina and Artemis are currently working towards the
completion of Joint Venture documentation. On 28 April 2020,
Artemis issued an ASX release announcing it had agreed to sell
51% of its 70% interest in the Munni Munni project to AIM
listed, Empire Metals PLC and its partner Almeera Ventures Ltd,
subject to a number of conditions including all necessary third-
party consents.
As a result of the sale process, Platina advised that it had
commenced proceedings in the Supreme Court of Western
Australia against Artemis and its subsidiary Munni Munni Pty
Ltd. (Munni Munni). Platina is a party with both Artemis and
Munni Munni to a Heads of Agreement entered into on 4
August 2015, as varied from time to time in relation to the
project.
Platina considers that each of Artemis and Munni Munni has
breached the Heads of Agreement by reason of Artemis
entering into contractual arrangements with Empire Metals and
Almeera Ventures, and is seeking various relief, including an
order that it is entitled to exercise its right to buy back Artemis’
and Munni Munni’s respective interests in the project.
PGM Annual Report for the year ended 30 June 2020
7
PLATINA SCANDIUM
PROJECT
Target: Scandium, New South Wales
Ownership: Platina 100%
Tenements: EL7644
The Platina Scandium Project (PSP) is located in central New
South Wales, 350km west of Sydney. The PSP is one of the
world’s highest-grade scandium deposits and has potential to
be Australia’s first scandium producer with platinum, cobalt
and nickel credits.
A Definitive Feasibility Study (DFS), completed in late 2018,
demonstrated the technical and economic viability of
constructing the project. The positive DFS demonstrated the
opportunity to create substantial long-term sustainable
shareholder value at a manageable capital cost (see Table 1
overleaf). The next step to unlocking value in the project is to
secure an offtake agreement to facilitate project financing and
finalise the required permits to begin construction.
Platina’s prime objective is to secure production offtake
agreements, which will enable project financing options to be
pursued for construction funding. The company is actively
working on a scandium off-take marketing program, which is
targeting potential customers in the USA, Europe, Asia and
Australia.
While the solid oxide fuel cell industry has been the dominant
consumer of scandium in recent years, the metal’s greatest
PGM Annual Report for the year ended 30 June 2020
8
Stage 1 Annual Production
Stage 2 Annual Production (from Year 5)
Life-of-mine for financial model
Net Present Value (8%), real, after-tax
Internal Rate of Return, post-tax
Payback Period (undiscounted)
Stage 1 Capital Expenditure
Stage 2 Capital Expenditure
Total Life-of-Project Capital Expenditure*
Life-of-Mine Average Cash Operating Costs#
Life-of-Mine Scandium Oxide Price
USD to AUD Exchange Rate
Table 1: Definitive Feasibility Study metrics
$US166 million
$US48.1 million
$US11.1 million
$US104.1 million
525/kg
1,550/kg
20 tonnes
40 tonnes
30 years
AUD$234 million
29%
5.3 years
AUD$67.8 million
AUD$15.6 million
AUD$146.5 million
739/kg
2,183/kg
0.71
*Includes sustaining capital costs. # Mining, processing, general and administration costs. Excludes royalties
value is as an aluminium alloy targeting aerospace, marine,
military and automobile industries. Scandium can produce
stronger, more heat tolerant, weldable aluminium products
which are being increasingly incorporated into transportation
applications for electric vehicles and lowering fuel efficiency
requirements. However, the market for aluminium-scandium
alloys remains very small and undeveloped.
We believe the key to the development of the scandium
market is the establishment of a western world supply source
and lower prices for scandium oxide and alloys that can
compete with other aluminium alloys in the market. Our belief
is that the PSP has the potential to produce the world’s lowest
cost scandium oxide and create competitively priced supply.
However, the ongoing challenge remains the small size of the
market relative to the scale of operation required for the
proposed PSP High-Pressure-Acid leach process.
We are tackling the market entry challenge through a number
of new initiates, including the following:
• working with Traxys Europe S.A to assess scandium
product and market development, and potential funding for
the PSP. Recent meetings have defined a number of target
opportunities and these are being pursued;
• assessing the potential for smaller scale development
options like VAT leaching;
•
testing the potential to produce other products from the
project. A planned test work program for high-purity
alumina production is being considered; and
• assessing the potential for blending high grade
nickel/cobalt ores with high-grade scandium ores to
diversify the potential income streams from the project.
Further updates will be provided in due course.
PGM Annual Report for the year ended 30 June 2020
9
SKAERGAARD PROJECT
Target: Gold & palladium, Greenland
Ownership: Platina 100%
Tenements: EL2007/01, EL2012/25
The Skaergaard Project, located on the east coast of Greenland,
hosts one of the world’s largest undeveloped gold and
palladium resources and has an Indicated and Inferred Mineral
Resource estimate reported in accordance with the JORC Code
(2012).
In June 2020, Platina signed a conditional sale agreement for
the project with Canada’s Major Precious Metals (CSE:SIZE),
formerly Eastern Zinc Corporation. On closing of the transaction,
Platina will receive CAD 0.5 million cash and 55 million Major
shares, which based on the last traded price at CAD 0.25c per
share represents CAD 13.75 million in value for Platina
shareholders if successfully completed.
Platina will become a major shareholder in Major and have a
right to a board seat. Major will become a palladium focused
exploration and development company following completion of
the transaction and look to expand its portfolio of palladium
assets.
Major completed a CAD 2 million capital raising in May 2020
and has a potential significant pool of capital available if its in-
the-money share warrants were exercised at current market
prices. Major has the cash resources and an exploration and
geological team based in the northern hemisphere that will be
dedicated to developing Skaergaard.
The transaction is progressing towards completion with all but
one of the conditions precedent satisfied.
The final condition precedent is the approval of the transaction
by the Canadian Securities Exchange which involves the
completion of a NI43-101 property report and shareholder
approval. The property report was subject to an independent
consultant site visit which has now been completed. Major
intends securing shareholder approval through a written
consent process with the major shareholders of the company.
Completion of the transaction will allow Platina shareholders to
share in Skaergaard’s prospective value increase while
providing Platina with an injection of new funds to pursue other
opportunities. As announced on 5 May 2020, the Greenland
Mines Department recently renewed Skaergaard’s exploration
licence for a further three-year period (until December 2022)
and waived all the 2020 tenement expenditure obligations.
PGM Annual Report for the year ended 30 June 2020
10
BLUE MOON PROJECT
Target: Zinc, copper, gold, California, United States of America
Ownership: Platina earning 70%
In August 2019, Platina entered into a joint venture agreement
to earn up to a 70% interest in and become operator of the
Blue Moon Zinc-Copper-Gold Project in the United States. In
addition, Platina acquired a 5% equity interest in the project
owner, TSX-V listed, Blue Moon Zinc Corporation (BMZ), by
subscribing to shares for CAD300,000.
The volcanogenic massive sulphide deposit has an existing
Canadian NI43-101 mineral resource which is open at depth
and along strike and has favourable metallurgy. The project
provides significant exploration upside but with the benefits of
an existing Mineral Resource based on more than 40,000m of
drilling that was never developed due to low commodity prices
at the time.
In December 2019, Platina completed its stage 1 drilling
program at the project comprising 1,132m in two holes,
BMZ79 and BMZ80.
Diamond drill hole BMZ79 intersected the highest zinc interval
at the project to date, 1.71m at 51.9% zinc, 1.49% copper,
0.05% lead, 0.85 g/t gold and 31.9 g/t silver from 414.65m
as well as the following intervals:
• 3.05m at 49.60 % zinc, 1.39% copper, 0.91 g/t gold and
30 g/t silver from 414.65m.
A second zone of zinc mineralisation in the same hole from
450m, included:
• 10.96m at 3.11% zinc, 0.47 % copper and 0.27% lead
from 450.37m, including:
• 2.08m at 4.22% zinc from 457.16m.
Diamond drill hole BMZ80 intersected the three following
significant intervals:
• 19.58m at 8.41% zinc, 0.49% copper, 1.22 g/t gold and
82.75 g/t silver from 398.44m, including:
o 1.26m at 4.57 % zinc, 0.37% copper, 6.71 g/t gold
and 513 g/t silver from 398.44m
o 2.16m at 16.49 % zinc, 0.89% copper, 0.7 g/t gold
and 35 g/t silver from 405.55m.
o 3.17m at 11.47 % zinc, 0.70% copper, 2.29 g/t gold
and 79 g/t silver from 411.99 m.
• 7.47m at 25.55% zinc, 0.87% copper, 0.68 g/t gold and
17 g/t silver from 412.81m, including:
• 6.15m at 3.60% zinc, 0.19% copper, 1.97 g/t gold and
78.6 g/t silver from 424.54m, including:
PGM Annual Report for the year ended 30 June 2020
11
o 0.88m at 1.63% zinc, 0.1% copper, 9.81 g/t gold and
References to previous ASX Releases
312 g/t silver from 424.54m
o 1.07m at 7.91% zinc, 0.37% copper, 2.44 g/t gold and
139 g/t silver from 425.42m
A third zone of zinc, lead, gold and silver mineralisation in the
same hole from 450m, included:
The information in this report that relates to Exploration
Results were last reported by the company in compliance with
the 2012 Edition of the JORC Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves in
market releases dated as follows:
• Platina acquires gold project in prolific gold province, 11th
• 3.53m at 4.27% zinc, 0.37 % copper, 2.4% lead, 3.76 g/t
June 2020
gold and 126 g/t silver from 448.9m, including:
o 0.85m at 7.75% zinc, 0.66 % copper, 4.25 % lead,
14.55 g/t gold and 325 g/t silver from 448.9m.
The results provide greater confidence that the deposit not only
contains a significant zinc resource but with intervals containing
up to 14.55 g/t of gold and 513g/t of silver, the results indicate
stronger potential for the production of precious metal by-
products.
Due to the coronavirus pandemic, Platina suspended field
activities and is in discussions with its joint venture partner
about how to realise value from the project.
• Drilling completed at Munni Munni Project, 3 August 2020
• Platina expanding presence in WA Goldfields, 23 July 2020
• Transformational Transaction – Joint Venture on a high-
grade Zinc-Copper-Gold project, 29 August 2019
• Drilling Intersects Significant Zinc Mineralisation, 24
January 2020
The company confirms that it is not aware of any new
information or data that materially affects the information
included in the market announcements referred above and
further confirms that all material assumptions underpinning the
exploration results contained in those market releases continue
to apply and have not materially changed.
Drilling at Blue Moon Project in December 2019
PGM Annual Report for the year ended 30 June 2020
12
ANNUAL MINERAL RESOURCES
AND ORE RESERVES STATEMENT
Platina reviews and reports its Ore Reserve and Mineral Resources at least annually. The date of reporting is 30 June each year, to
coincide with the Company’s end of financial year balance date. If there are any material changes to the Ore Reserves and Mineral
Resource estimates for our projects over the course of the year, we are required to report these changes.
Platina Scandium Project (PSP), New South Wales
There has been no change in the PSP Mineral Resource estimate since last year’s Annual Mineral Resources and Ore Reserves
Statement.
PSP JORC (2012) Mineral Resource Estimate
Mineral Resources – at a 300ppm scandium cut-off
Classification
Tonnage
(Dry Mt)
Scandium
ppm
Platinum
(g/t)
Measured
Indicated
Inferred
TOTAL
7.8
12.5
15.3
35.6
435
410
380
405
0.42
0.26
0.22
0.28
Mineral Resources – at a 600ppm scandium cut-off
Classification
Tonnage
(Dry Mt)
Scandium
ppm
Platinum
(g/t)
Measured
Indicated
Inferred
TOTAL
0.74
0.75
0.26
1.76
685
670
645
675
0.39
0.32
0.22
0.34
Mineral Resources – at a 0.08% cobalt cut-off
Nickel
(%)
0.13
0.11
0.08
0.10
Nickel
(%)
0.17
0.14
0.10
0.15
Cobalt
%
Scandia
(tonnes)*
Platinum
koz
Nickel
(tonnes)
Cobalt
(tonnes)
0.07
0.06
0.05
5,200
7,800
8,900
105
106
106
9,900
13,400
12,400
5,400
8,100
7,000
0.06
22,000
317
35,700
20,500
Cobalt
%
Scandia
(tonnes)*
Platinum
koz
Nickel
(tonnes)
Cobalt
(tonnes)
0.16
0.11
0.07
800
800
300
9
8
2
1,300
1,100
300
1,200
800
200
0.12
1,800
19
2,600
2,200
Classification
Tonnage
(Dry Mt)
Scandium
ppm
Platinum
(g/t)
Nickel
(%)
Cobalt
%
Scandia
(tonnes)*
Platinum
koz
Nickel
(tonnes)
Cobalt
(tonnes)
Measured
Indicated
Inferred
4.0
6.2
6.7
TOTAL
16.9
380
350
245
315
0.49
0.26
0.21
0.29
0.29
0.20
0.21
0.22
0.14
0.12
0.11
2,340
3,340
2,520
63
51
45
11,610
12,380
13,910
5,690
7,440
7,270
0.12
8,210
160
37,900
20,410
*Scandium is typically sold as Scandia or Scandium Oxide (Sc2O3) product and is calculated from scandium metal content and
a 1.53 factor to convert to the oxide form
PGM Annual Report for the year ended 30 June 2020
13
There has been no change in the PSP Ore Reserve estimate since last year’s Annual Statement.
PSP JORC (2012) Ore Reserve Estimate
Ore Reserves – at a 450ppm scandium cut-off
Classification
Proven
Probable
Tonnage
(Dry Kt)
Scandium
ppm
3,054
972
575
550
570
Nickel
(%)
0.13
0.08
0.12
Cobalt
%
Scandia
(tonnes)*
Cobalt
(tonnes)
Nickel
(tonnes)
0.10
0.07
0.09
2,696
2,945
4,054
816
654
767
3,512
3,599
4,821
TOTAL
4,027
The information in this Director’s Report that relates to the PSP Mineral Resources and Ore Reserves were last reported by the
Company in compliance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves in market releases dated as follows:
•
•
•
Platina Scandium Project - Positive Definitive Feasibility Study, 13 December 2018;
Platina Scandium Project Ore Reserve, 13 December 2018
Owendale Measured, Indicated and Inferred Mineral Resource – 16 August 2018
The Company confirms that it is not aware of any new information or data that materially affects the information included in the
market announcements referred above and further confirms that all material assumptions underpinning the production targets and
all material assumptions and technical parameters underpinning the Ore Reserve and Mineral Resource statements contained in
those market releases continue to apply and have not materially changed.
Skaergaard Project, Greenland
There has been no change in the Skaergaard Mineral Resource estimate since last year’s Annual Statement. On 29 November 2019,
a Scoping Study was completed demonstrating the technical and financial merit of the project (see ASX release, Scoping Study
Defines Development Pathway, 27 November 2019).
Skaergaard JORC (2012) Mineral Resources
Mineral Resources – at a 1g/t AuEq cut-off for Combined Reefs H0 + H3 + H5
Classification
Indicated
Inferred
Tonnes
(kt)
5,080
197,140
TOTAL
202,220
Gold
(g/t)
1.25
0.87
0.88
Palladium
(g/t)
Platinum
(g/t)
0.88
1.35
1.33
0.06
0.11
0.11
AuEq
(g/t)
1.66
1.51
1.52
Gold
(Mozs)
Palladium
(Moz)
Platinum
(Moz)
0.20
5.49
5.69
0.14
8.53
8.67
0.01
0.68
0.69
PGM Annual Report for the year ended 30 June 2020
14
Notes:
Competent Person Statement
• Mineral Resources – at a 1 g/t AuEq cut-off for Combined
Reefs H0 + H3 + H5
• The contained Au represents estimated contained metal in
the ground and is not adjusted for metallurgical recovery
• AuEq = Au + Pt + (Pdx0.4); where the gold price is
US$1,400/oz and the platinum price is US$1,400/oz and
the palladium price is US$560/oz. The metal equivalent
calculation assumes 100% metallurgical recovery
• Minimum thickness = 1m; parts below 1m thickness have
been diluted to 1m. 10% reduction globally applied, to
reflect dyke intersections
• Resource split is approximately 44%:26%:30% between
reefs H0:H3:H5
The information in this Director’s Report that relates to the
Skaergaard Mineral Resources was last reported by the
Company in compliance with the 2012 Edition of the JORC
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves in a market release dated as
follows:
• Skaergaard Indicated and Inferred Mineral Resource – 23
July 2013
The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the market announcements referred above and
further confirms that all material assumptions underpinning the
production targets and all material assumptions and technical
parameters underpinning the Ore Reserve and Mineral Resource
statements contained in those market releases continue to
apply and have not materially changed.
The information in this Annual Mineral Resources and Ore
Reserves Statement is based on, and fairly represents
information and supporting documentation prepared by Mr John
Horton, Principal Geologist, who is a Fellow and Chartered
Professional of the Australasian Institute of Mining and
Metallurgy and a full time employee of ResEval Pty Ltd. Mr.
Horton 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”. Mr. Horton has approved the Statement as a whole
and consents to its inclusion in the Annual Report in the form
and context in which it appears.
Mineral Resource and Ore Reserve Governance Arrangements
The Company ensures that all Mineral Resource or Ore Reserve
estimates are subject to appropriate levels of governance and
controls.
Exploration results are collected and managed by qualified
geologists. All data collection activities are conducted to industry
standards based on a framework of quality assurance and
quality control protocols covering all aspects of sample
collection, topographical and geophysical surveys, drilling,
sample preparation, physical and chemical analysis, and data
and sample management.
The Mineral Resource and Ore Reserve Estimates are prepared
by qualified Independent Competent Persons. If there is a
material change in the estimate of a Mineral Resource or Ore
Reserve, the estimate and supporting documentation in question
is reviewed by a suitable qualified independent Competent
Person.
The Company reports its Mineral Resources and Ore Reserves
estimates on an annual basis in accordance with the 2012
JORC Code.
PGM Annual Report for the year ended 30 June 2020
15
TENEMENT INTERESTS
Platina Resource Limited held the following interests in tenements as at 24 September 2020:
Tenement
Area
Munni Munni
Mining Lease (M) 47/123
Munni Munni
M47/124
Munni Munni
M47/125
M47/126
Munni Munni
Exploration Application (E) 47/3322 Munni Munni
Exploration Licence (EL) 7644
EL8672
EL2007/01
EL2012/25
EL58/552 and EL58/553
E 09/2423
American Eagle
Blue Bell & Bonanza
Red Cloud 1
Red Cloud 2
Red Cloud 3
Red Cloud 4
Red Cloud 5
Red Cloud 6
Red Cloud 7
Red Cloud 8
James Gann Jr. trust of 1991
James Gann Jr. trust of 1991
Owendale
Condobolin
Skaergaard
Qialivarteerpik
Challa
Mt Narryer South
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Central California
Location
WA, Australia
WA, Australia
WA, Australia
WA, Australia
WA, Australia
NSW, Australia
NSW, Australia
Greenland
Greenland
WA, Australia
WA, Australia
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
Owner
ship
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
PGM
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
BMZ
% Ownership
30%
30%
30%
30%
30%
100%
100%
100%
100%
100%
100%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
Earning up to 70%
On 29 August 2019, the Company entered into a joint venture agreement to earn up to a 70% interest in and become operator of
the Blue Moon Zinc Project (Project) in the United States. Platina will acquire up to a 70% interest in the Project by spending
CAD3.25 million over 18 months to earn 50% and CAD3.75 million over another 18 months to earn an additional 20%. The
Company can withdraw at anytime without incurring any cost.
The Company is not party to any other farm-in or farm-out agreements.
PGM Annual Report for the year ended 30 June 2020
16
DIRECTORS’ REPORT
Your Directors present their report together with the financial
report for Platina Resources Limited (“the Company”) and its
controlled entities (“the Group” or “the consolidated entity”)
for the year ended 30 June 2020 and the auditor’s report
thereon.
DIRECTORS
The following persons were Directors of Platina Resources
Limited during the financial year and up the date of this report,
unless otherwise stated:
Brian Moller
Non-Executive Chairman
LL.B (Hons)
Mr Moller was appointed as a Non-Executive Director on 30
January 2007 and appointed Non-Executive Chairman on 1
January 2017.
Mr Moller is a partner with HopgoodGanim Lawyers and
practices almost exclusively in the corporate area with an
emphasis on capital raising, mergers and acquisitions and
corporate restructuring. Mr Moller acts for many publicly listed
resource and industrial companies in Australia, and regularly
advises boards of directors on corporate governance and
related issues.
During the past three years, Mr Moller has also served as a
director of the following ASX listed companies:
• DGR Global Ltd (since 2 October 2002)
Corey Nolan
Managing Director
B.Com, MMEE, GAICD
Mr Nolan is an accomplished public company director whose
30-year career in the resources industry started on the ground
in operations before spanning a broad range of corporate roles
from equities analyst and corporate finance director to a
number of senior executive and board positions.
As Managing Director of ASX listed Platina Resources Limited
since August 2018, he has been instrumental in restructuring
the company’s project portfolio, which has included the
acquisition, funding, exploration and development of new
assets.
Prior to Platina, Mr Nolan was Chief Executive Officer at
Sayona Mining Limited where he led the acquisition and
development of the Authier Lithium Project in Canada and
chartered a substantial growth in the company’s market
capitalisation.
Mr Nolan is a Non-Executive Director of ASX-listed Elementos
Limited, a company he incorporated and floated on the ASX in
2009 which is now developing one of the world's highest-
grade tin projects in Spain.
Mr Nolan’s qualifications include a Bachelor of Commerce,
Masters Degree in Mineral and Energy Economics and
graduate diploma from the Australian Institute of Company
Directors.
• Aus Tin Mining Limited (since 1 December 2006) -
Chairman
During the past three years, Mr Nolan has also served as a
director of the following ASX listed companies:
• Dark Horse Resources Limited (since 22 January 2003)
• Leyshon Resources Limited (since 2 October 2009)
• Tempest Minerals Limited (formerly Lithium Consolidated
• Elementos Limited (since 24 July 2009)
Limited) (since 13 October 2016) - Chairman
Mr Moller is also a director of LSE and TSX listed SolGold plc.
PGM Annual Report for the year ended 30 June 2020
17
Christopher Hartley
Non-Executive Director
BSc; PhD; MIMMM; CEng; GAICD
Paul Jurman
Company Secretary – appointed 1 June 2016
B.Com, CPA
Dr Hartley was appointed as a Non-Executive Director on 1
January 2017.
Dr Hartley has 40 years’ experience in the mining industry in a
variety of roles relating to management and development of
mining and metallurgical operations. Most recently he spent
five years with Bloom Energy in the role of Technical Director
Strategic Materials, leading a team that established secure and
efficient supplies of scandium oxide for their manufacturing
operations in the USA. Prior to that he held roles with BHP
Billiton and its predecessor Billiton, as well as working as an
independent consultant. He has been based in the
Netherlands, the UK, India and the USA and worked on
projects in many more countries.
Dr Hartley holds no other (ASX listed) directorships.
John Anderson
Non-Executive Director
LL.B, B.Ec, GDCL, GAICD
Mr Anderson was appointed as a Non-Executive Director on 9
April 2018.
Mr Anderson has had more than 20 years’ experience in the
gas industry with 12 of those in senior executive roles at
Santos Limited (Santos). He was also a director of Darwin
LNG for more than 8 years.
At Santos, Mr Anderson was responsible for leading strategic
projects, business development, mergers and acquisitions,
commercial and marketing and trading. Mr Anderson also had
roles leading two of Santos' business units, in Western
Australia and the Northern Territory and in Asia Pacific in which
he was accountable for all activities from exploration through
to development, operations and sales.
Mr Anderson is an experienced executive in the Australian and
Asian energy markets with direct international experience in
the Asian region having led businesses operating in the region
for a number of years including Santos’ significant investments
in Vietnam, Bangladesh, Malaysia, PNG and Indonesia. He has
extensive experience in Asia Pacific in LNG projects and the
commercialisation of domestic gas and increasingly the
interplay between both gas to LNG and gas to domestic
energy needs.
Mr Anderson holds no other (ASX listed) directorships.
Mr Jurman is a Certified Practising Accountant with over 15
years’ experience and has been involved with a diverse range
of Australian public listed companies in company secretarial
and financial roles. He is also company secretary of ASX listed
Carnavale Resources Limited and Tempest Minerals Limited
(formerly Lithium Consolidated Limited).
During the past three years, Mr Jurman did not hold any other
(ASX listed) directorships.
DIRECTORS’ MEETINGS
The number of meetings of Directors (including meetings of
committees of directors) held during the year and the number
of meetings attended by each Director was as follows:
Directors
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
Board
No. of meetings
held while in
office
Meetings
attended
4
4
4
4
4
4
4
4
At present, the Company does not have any formally
constituted committees of the Board. The Directors consider
that the Group is not of a size nor are its affairs of such
complexity as to justify the formation of special committees.
DIRECTORS’ INTERESTS IN SECURITIES
As at the date of this report, the interests of the Directors in
the shares, options and performance rights of Platina
Resources Limited are shown in the table overleaf:
PGM Annual Report for the year ended 30 June 2020
18
Directors
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
Ordinary shares
-
400,000
-
104,340
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year
were acquiring, exploring and developing mineral interests,
prospective for precious metals and other mineral deposits.
OPERATING RESULTS
The net loss of the Group for the year, after provision for
income tax, amounted to $2,222,886 (2019: $2,604,623).
DIVIDENDS PAID OR RECOMMENDED
There were no dividends paid or recommended during the
financial year.
REVIEW OF OPERATIONS
Information on the operations of the Group during the financial
year and up to the date of this report is set out separately in the
Annual Report under Review of Operations.
REVIEW OF OPERATIONS / OPERATING AND FINANCIAL
REVIEW
The Group is primarily engaged in mineral exploration in
Australia, Greenland and the USA. A review of the Group’s
operations, including information on exploration activity and
results thereof, financial position, strategies and projects of the
Group during the year ended 30 June 2020 is provided in this
Financial Report and, in particular, in the "Review of Operations"
section immediately preceding this Directors’ Report. The
Group’s financial position, financial performance and use of
funds information for the financial year is provided in the
financial statements that follow this Directors’ Report.
The Coronavirus (COVID-19) pandemic has to date not had a
significant direct financial impact on the Group. Staff have
been able to work from home and have remained in good
health. Whilst field exploration programs at the Blue Moon
project in the USA are currently suspended, the Group has
sought to restructure the terms of the August 2019 JV
agreement and this remains ongoing. The Group has
refocussed its activities on Western Australian gold projects as
a result of the Challa acquisition and the application for an
exploration licence (E 09/2423) at Mt Narryer South in July
2020. The Company is on track to complete the majority of
its planned exploration program during the current field
season. The majority of the planned program for the 2020/21
financial year is focussed on the WA projects. The Company
will engage with WA based consultants for planned exploration
programs, including for drilling services. Completion of the
program is subject to there being no internal travel restrictions
or health concerns associated with travel in Western Australia,
and contractors delivering agreed services.
As an exploration entity, the Group has no operating revenue
or earnings and consequently the Group’s performance cannot
be gauged by reference to those measures. Instead, the
Directors’ consider the Group’s performance based on the
success of exploration activity, acquisition of additional
prospective mineral interests and, in general, the value added
to the Group’s mineral portfolio during the course of the
financial year.
Whilst performance can be gauged by reference to market
capitalisation, that measure is also subject to numerous
external factors. These external factors can be specific to the
Group, generic to the mining industry and generic to the stock
market as a whole and the Board and management would
only be able to control a small number of these factors.
The Group’s business strategy for the financial year ahead
and, in the foreseeable future, is to continue exploration
activity on the Group’s existing mineral projects, identify and
assess new mineral project opportunities and review
development strategies where individual projects have reached
a stage that allows for such an assessment. Due to the
inherent risky nature of the Group’s activities, the Directors are
unable to comment on the likely results or success of these
strategies.
PGM Annual Report for the year ended 30 June 2020
19
The Group’s activities are also subject to numerous risks,
mostly outside the Board’s and management’s control. These
risks can be specific to the Group, generic to the mining
industry and generic to the stock market as a whole. The key
risks, expressed in summary form, affecting the Group and its
future performance include but are not limited to:
• geological and technical risk posed to exploration and
commercial exploitation success;
• security of tenure including licence renewal, inability to
obtain regulatory or landowner consents or approvals and
native title issues;
• change in commodity prices and market conditions;
• environmental and occupational health and safety risks;
• government policy changes;
•
retention of key staff; and
• capital requirement and lack of future funding.
This is not an exhaustive list of risks faced by the Group or an
investment in it. There are other risks generic to the stock
market and the world economy as a whole and other risks
generic to the mining industry, all of which can impact on the
Group.
Treasury policy
The consolidated entity does not have a formally established
treasury function. The Board is responsible for managing the
consolidated entity’s finance facilities. The Group does not
currently undertake hedging of any kind and is minimally
exposed to currency risks.
Liquidity and funding
The consolidated entity has sufficient funds to finance its
operations and exploration activities, and to allow the
consolidated entity to take advantage of favourable business
opportunities, not specifically budgeted for, or to fund
unforeseen expenditure.
The Coronavirus (COVID-19) pandemic has to date not had a
significant direct financial impact on the consolidated entity.
Staff have been able to work from home and have remained in
good health. Whilst field exploration programs have been
rescheduled as a result of certain travel restrictions, the
Company is on track to complete the majority of its planned
exploration program during the current field season. The
majority of the planned program for the 2020 calendar year is
focussed on projects located in Queensland. Two of the
Company’s senior exploration geologists are based in
Queensland, and the Company has secured the services of
various Queensland based contractors, including for drilling
services. Completion of the program is subject to there being
no internal travel restrictions or health concerns associated
with travel in Queensland, and contractors delivering agreed
services.
REVIEW OF FINANCIAL CONDITION
Capital structure
As at 30 June 2019 the Company had 264,126,235 ordinary
shares, 2,000,000 performance rights and 11,000,000
options on issue.
During the year ended 30 June 2020, the following shares
were issued:
•
•
•
In October 2019, the Company completed an underwritten
Shareholder Share Purchase Plan (SPP) and issued
59,523,731 ordinary shares at $0.021 per share raising
$1.25 million before costs;
In October 2019, 2,626,050 ordinary shares were issued
to a consultant for services provided; and
In June 2020, 45,050,477 ordinary shares were issued at
$0.021 per share raising $946,060 to sophisticated,
professional and other exempt investors, comprising
existing and new shareholders.
During the year ended 30 June 2020 no performance rights or
options were issued and 11,000,000 options expired.
As at 30 June 2020 the Company had 371,326,493 ordinary
shares and 2,000,000 performance rights on issue.
As at the date of this report, there are no performance rights
on issue. In August 2020, 400,000 performance rights
vested as the performance conditions were satisfied and were
exercised into 400,000 shares by Mr Nolan and the remaining
1,600,000 performance rights granted to Mr Nolan lapsed.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the
Group in the financial year except as disclosed in this financial
report.
PGM Annual Report for the year ended 30 June 2020
20
AFTER BALANCE DATE EVENTS
No matter or circumstance has arisen since the end of the
financial year, to the date of this report, that has significantly
affected, or may significantly affect, the operations of the
Group, the results of those operations, or the state of affairs of
the Group in future financial years other than the matters
referred to below.
• On 20 July 2020, the Company announced it commenced
proceedings in the Supreme Court of Western Australia
against Artemis Resources Ltd (Artemis) and its subsidiary
Munni Munni Pty Ltd. (Munni Munni). Platina considers
that each of Artemis and Munni Munni has breached the
Heads of Agreement, entered into on 4 August 2015, by
reason of Artemis entering into contractual arrangements
with the UK, AIM listed company Empire Metals Limited
and Almeera Ventures Limited, and is seeking various relief,
including an order that it is entitled to exercise its right to
buy back Artemis’ and Munni Munni’s respective interests
in the Munni Munni project.
• On 10 August 2020, the Company completed a non-
brokered private placement of 22.36 million ordinary fully
paid shares to raise $894,400 (before costs) at $0.04
per share. In addition, 22.36 million options with a strike
price of 10 cents with a 3 year term will be granted to the
Placement participants subject to shareholder approval at
the next shareholders meeting, scheduled to occur in
October 2020.
• On 13 August 2020, the Company completed the
acquisition of a 100% interest in the Challa Gold Project
and issued 10,000,000 ordinary fully paid shares and paid
$20,000.
• On 20 August 2020, the Company confirmed that
400,000 Performance Rights out of a total of 2,000,000
Performance Rights that were issued to Managing Director,
Mr Nolan in August 2018, vested as the performance
conditions were satisfied which has resulted in the issue of
400,000 ordinary fully paid shares. The balance of the
Performance Rights lapsed as the performance conditions
were not satisfied.
LIKELY DEVELOPMENTS, EXPECTED RESULTS,
PROSPECTS AND BUSINESS STRATEGIES
Likely developments in the operations of the Group and the
expected results of those operations in subsequent financial
years have been discussed where appropriate in the Annual
Report under Review of Operations.
There are no further developments of which the Directors are
aware which could be expected to affect the results of the
Group’s operations in subsequent financial years. The
Directors are unable to comment on the likely results from the
Company’s planned exploration and pre-development activities
due to the speculative nature of such activities.
Business Results
The prospects of the Group in progressing their exploration
projects in Australia, USA and Greenland may be affected by a
number of factors. These factors are similar to most
exploration companies moving through exploration phase and
attempting to get projects into development. Some of these
factors include:
• Exploration - the results of the exploration activities may be
such that the estimated resources are insufficient to justify
the financial viability of the projects. Platina Resources
undertakes extensive exploration and product quality
testing prior to establishing JORC compliant resource
estimates and to (ultimately) support mining feasibility
studies. The Group engages external experts to assist with
the evaluation of exploration results and relies on third
party competent persons to prepare JORC resource
statements. Economic feasibility modelling of projects will
be conducted in conjunction with third party experts and
the results of which will usually be subject to independent
third-party peer review.
• Regulatory and Sovereign - the Group operates in Australia,
USA and Greenland and deals with local regulatory
authorities in relation to the exploration of its properties.
The Group may not achieve the required local regulatory
approvals to continue exploration or properly assess
development prospects. The Group takes appropriate legal
and technical advice to ensure it manages its compliance
obligations appropriately.
• Social Licence to Operate – the ability of the Group to
secure and undertake exploration and development
activities within prospective areas is also reliant upon
satisfactory resolution of native title and (potentially)
overlapping tenure. To address this risk, the Group
develops strong, long term effective relationships with
landholders with a focus on developing mutually acceptable
access arrangements. The Group takes appropriate legal
and technical advice to ensure it manages its compliance
obligations appropriately. Mining tenements that the Group
currently holds, or has applied for, are subject to Native
Title claims. The Group has a policy that is respectful of
the Native Title rights and is continuing to negotiate with
relevant indigenous bodies.
PGM Annual Report for the year ended 30 June 2020
21
• Environmental - All phases of mining and exploration present
environmental risks and hazards. Platina’s operations in
Australia, USA and Greenland are subject to environmental
regulation pursuant to a variety of state and municipal laws
and regulations. Environmental legislation provides for,
among other things, restrictions and prohibitions on spills,
releases or emissions of various substances produced in
association with mining operations. Compliance with such
legislation can require significant expenditures and a breach
may result in the imposition of fines and penalties, some of
which may be material. Environmental legislation is evolving
in a manner expected to result in stricter standards and
enforcement, larger fines and liability and potentially
increased capital expenditures and operating costs.
Environmental assessments of proposed projects carry a
heightened degree of responsibility for companies and
directors, officers and employees. The Group assesses each
of its projects very carefully with respect to potential
environmental
in conjunction with specific
environmental regulations applicable to each project, prior
to commencing field exploration. Periodic reviews are
undertaken once field exploration commences.
issues,
• Safety - Safety is of critical importance in the planning,
organisation and execution of Platina Resources exploration
activities. Platina Resources is committed to providing and
maintaining a working environment in which its employees
are not exposed to hazards that will jeopardise an
employee’s health, safety or the health and safety of others
associated with our business. Platina Resources recognise
that safety is both an individual and shared responsibility of
all employees, contractors and other persons involved with
the operation of the organisation. The Group has a
comprehensive Safety and Health Management system,
which is designed to minimise the risk of an uncontrolled
safety and health event and to continuously improving safety
culture within the organisation.
• Funding - the Group will require additional funding to
continue exploration and potentially move from the
exploration phase to the development phases of its projects.
There is no certainty that the Group will have access to
available financial resources sufficient to fund its exploration,
feasibility or development costs at those times. The Group
has no material financial commitments.
• Market - there are numerous factors involved with
exploration and early stage development of its projects,
including variance in commodity price and labour costs,
which can result in projects being uneconomical.
ENVIRONMENTAL REGULATIONS
The Group’s operations are subject to significant
environmental regulation under the laws of Australia, USA and
Greenland. The Group has a policy of complying with its
environmental obligations and at the date of this report, is not
aware of any breach of such regulations.
REMUNERATION REPORT (AUDITED)
This report outlays the remuneration arrangements in place for
the Key Management Personnel (as defined under section
300A of the Corporations Act 2001) of Platina Resources
Limited. The information provided in this remuneration report
has been audited as required by section 308(3C) of the
Corporations Act 2001.
The following were key management personnel of the
consolidated entity at any time during the year and unless
otherwise indicated were key management personnel for the
year:
Details of Key Management Personnel
(i) Directors
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
Non-Executive Chairman
Managing Director
appointed 1 August 2018
Non-Executive Director –
appointed 1 January 2017
Non-Executive Director –
appointed 9 April 2018
There have been no changes of Key Management Personnel
after the reporting date and up to the date the financial report
was authorised for issue.
Remuneration philosophy
The Board reviews the remuneration packages applicable to
the executive Directors and non-executive Directors on an
annual basis. The broad remuneration policy is to ensure the
remuneration package properly reflects the person’s duties
and responsibilities and level of performance and that
remuneration is competitive in attracting, retaining and
motivating people of the highest quality. Independent advice
on the appropriateness of remuneration packages is obtained,
where necessary, although no such independent advice was
sought during the financial year.
PGM Annual Report for the year ended 30 June 2020
22
Remuneration is not linked to past company performance but
rather towards generating future shareholder wealth through
share price performance. As a minerals explorer, the Company
does not generate operating revenues or earnings and
company performance, at this stage, can only be judged by
exploration success and ultimately shareholder value. Market
capitalisation is one measure of shareholder value but this is
subject to many external factors over which the Company has
no control. Consequently linking remuneration to past
performance is difficult to implement and not in the best
interests of the Company. Presently, total fixed remuneration
for senior executives is determined by reference to market
conditions and incentives for out-performance are provided by
way of options or performance rights over unissued shares.
The Directors believe that this best aligns the interests of the
shareholders with those of the senior executives.
All remuneration paid to key management personnel is valued
at cost to the Group and charged to the profit and loss
account as an expense or capitalised as part of exploration
expenditure as appropriate. Shares given to directors and
executives are valued as 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. There are no schemes for
retirement benefits other than statutory superannuation for
executive directors.
Voting and comments made at the Company’s 2019 Annual
General Meeting (AGM): – At the 2019 AGM, less than 21%
of the votes received (excluding abstentions) did not support
the adoption of the remuneration report for the year ended 30
June 2019. The Company did not receive any specific
feedback at the AGM regarding its remuneration practices.
Remuneration committee
Given the size and scale of the Company’s operations, the full
Board has undertaken the roles previously undertaken by the
Remuneration Committee. The Board is considered to have
sufficient legal, corporate, commercial and industry experience
in the context of the Company’s affairs to properly assess the
remuneration issues required by the Group.
The Board assesses the appropriateness of the nature and
amount of remuneration of Directors and senior managers on
a periodical basis by reference to relevant employment market
conditions with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high quality board
and management team.
Remuneration structure
In accordance with best practice corporate governance, the
structure of non-executive Directors and executive Director
remuneration is separate and distinct.
Non-executive Directors remuneration
Objective
The Board seeks to set aggregate remuneration at a level
which provides the Company with the ability to attract and
retain directors of the highest calibre, whilst incurring a cost
which is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the
aggregate remuneration of non-executive Directors shall be
determined from time to time by a general meeting. An
amount not exceeding the amount determined is then divided
between the directors as agreed. The present limit of
approved aggregate remuneration is $250,000 per year.
The Board reviews the remuneration packages applicable to
the non-executive Directors on an annual basis. The Board
considers fees paid to non-executive directors of comparable
companies when undertaking the annual review process.
The appointment conditions of the non-executive Chairman
and the non-executive Directors are formalised in service
agreements. Under the Constitution of the Group, these
appointments, if not terminated sooner, end on the date of
retirement by rotation. The Constitution requires one third of
Directors retire each year at a general meeting of
shareholders. If re-elected at future general meetings of
shareholders, the appointments continue for further terms.
It has been agreed that the Non-Executive directors shall each
receive a fee of $50,000 plus statutory superannuation per
annum effective from their appointment date. Mr Moller, as
Chairman, is entitled to a fee of $57,800 per annum. Non-
executive directors and the Chairman agreed to a voluntary
reduction of board fees by 70% and 50%, respectively,
effective for the June 2020 quarter. Non-executive Directors
may also be remunerated for additional specialised services
performed at the request of the Board. During January 2018
to March 2019, Dr Hartley acted as an interim executive
director. The Company agreed that Dr Hartley’s remuneration
was $1,100 per day (or pro-rata thereof), for 12 days per
calendar month during that period.
PGM Annual Report for the year ended 30 June 2020
23
The remuneration of the non-executive Directors for the year
ending 30 June 2020 and 30 June 2019 is detailed in Table 1
of this report.
Managing Directors remuneration
Objective
The Company aims to reward the Managing Director with a
level of remuneration commensurate with his position and
responsibilities within the Company and so as to:
• align the interests of the Managing Director with those of
•
shareholders;
link reward with the strategic goals and performance of the
Company; and
• ensure total remuneration is competitive by market
standards.
Structure
to 50% of the annual remuneration (excluding the statutory
superannuation) upon the achievement of certain performance
criteria. The duties are those as are customarily expected of a
Managing Director and from time to time delegated by the
Board.
Executive Director remuneration for the year ending 30 June
2020 and 30 June 2019 is detailed in Table 1 of this report.
Variable remuneration – Long Term Incentive (‘LTI’)
Objective
The objective of the LTI plan is to reward executives and
senior managers in a manner that aligns this element of
remuneration with the creation of shareholder wealth.
As such LTI grants are only made to executives who are able
to influence the generation of shareholder wealth and thus
have a direct impact on the Group’s performance.
Remuneration consists of the following key elements:
Structure
• Fixed remuneration
• Variable remuneration
Fixed remuneration
The level of fixed remuneration is set so as to provide a base
level of remuneration that is both appropriate to the position
and is competitive in the market.
Fixed remuneration is reviewed annually by the Board and the
process consists of a review of companywide, business unit
and individual performance, relevant comparative remuneration
in the market and internal and, where appropriate, external
advice on policies and practice.
Mr Corey Nolan entered into an executive services agreement
with the Company on 14 May 2018, effective from 1 August
2018 to act as Managing Director and Chief Executive Officer
of the Company. Mr Nolan is paid an annual salary of
$323,000, including statutory superannuation. In April 2020,
in response to the COVID-19 pandemic, Mr Nolan’s annual
base salary was reduced by 25% to $240,000 per annum
including superannuation. Moreover, his salary was reduced to
an annualised level of $120,000 including superannuation for
April and May 2020 to conserve the Company’s cash position.
As part of the new contract, the termination period for both
Platina and Mr Nolan has been reduced from six months to
two months. Mr Nolan can also receive an annual bonus of up
LTI grants to Key Management Personnel are delivered in the
form of options and performance rights. The issue of options
/ performance rights as part of the remuneration packages of
executive and non-executive directors is an established
practice of junior public listed companies and, in the case of
the Company, has the benefit of conserving cash whilst
properly rewarding each of the directors.
Performance Rights Plan (PRP)
Shareholders approved the Company’s PRP at the Annual
General Meeting held on 28 November 2018. The PRP is
designed to provide a framework for competitive and
appropriate remuneration so as to retain and motivate skilled
and qualified personnel whose personal rewards are aligned
with the achievement of the Company’s growth and strategic
objectives.
Employee Option Incentive Plan (EOIP)
Shareholders last approved the Platina Resources Limited
EOIP at the General Meeting on 28 April 2017. The EOIP is
designed to provide incentives, assist in the recruitment,
reward and retention of employees or key consultants.
Participation in the plan is at the Board’s discretion and no
individual has a contractual right to participate in the plan or
receive any guaranteed benefit.
PGM Annual Report for the year ended 30 June 2020
24
Table 1: Remuneration details
The following table details, in respect to the financial years ended 30 June 2020 and 2019, the components of remuneration for each
key management person of the Group.
Short term employee
benefit
Post-
employment
benefits
Termination
benefits
Equity
% of
Remuner-
ation as
Share-
based
payment
Superannuati
on/
retirement
benefits
Other
Share-
based
payment
Total
Key Management Personnel
Directors
Brian Moller (Non-Executive Chairman)
2020 (ii)
2019 (ii)
Corey Nolan (Managing Director & CEO –
appointed 1 August 2018)
2020 (iii)
2019 (iii)
Christopher Hartley (Non-Executive Director
to 5 January 2018, interim Executive Director
from 5 January 2018 to 31 March 2019)
2020 (ii)
2019 (i) (iii)
John Anderson (Non-Executive Director –
appointed 9 April 2018)
2020
2019 (iii)
Paul Jurman (Non-Executive Director –
appointed 5 January 2018 – resigned 16
August 2018)
2020 (iv)
2019 (iv)
Total, all specified Directors
2020
2019
Salary &
Fees
Other
$
$
50,575
57,800
254,249
277,263
40,925
-
-
-
-
-
50,000
70,400
40,925
50,000
-
6,474
386,674
-
-
-
-
-
$
-
-
18,001
18,820
3,888
4,750
3,888
4,750
-
615
25,777
441,537
70,400
28,935
$
$
$
%
-
-
-
-
-
-
-
-
-
-
-
-
8,531
59,106
16,924
74,724
14.4
22.7
(2,502)
269,748
-
163,737
459,820
35.6
8,531
53,344
16,924
142,074
16.0
11.9
-
44,813
-
47,800
102,550
46.6
4,265
4,265
100.0
8,462
15,551
54.4
18,825
431,276
253,847
794,719
PGM Annual Report for the year ended 30 June 2020
25
(i) During the year ended 30 June 2019, Dr Hartley acted as an interim executive director and the Company agreed that Dr
Hartley’s remuneration was $1,100 per day (or pro-rata thereof), for 12 days per calendar month.
(ii)
In May 2017, following shareholder approval, Mr Moller and Dr Hartley were each granted 2 million unlisted options
exercisable at $0.20 expiring on 31 December 2019 whose combined value has been estimated at $90,600 over the vesting
period and the charge to the profit and loss account for the reporting period is $17,063 (2019 - $33,848). The options
expired unexercised on 31 December 2019.
(iii) In August 2018, following shareholder approval, Mr Nolan was granted 4 million unlisted options exercisable at $0.20
expiring on 31 December 2019 and Mr Anderson was granted 2 million unlisted options exercisable at $0.20 expiring on 31
December 2019 whose combined value was $143,400 and this amount was charged to the profit and loss account for the
prior reporting period. The options expired unexercised on 31 December 2019. Mr Nolan was also granted 2 million
Performance Rights, free of any consideration, convertible into fully paid Shares on the basis of one Performance Right
converts to one Share subject to meeting agreed KPI’s over a 2-year period which expired on 20 August 2020. The value
was initially estimated at $180,000 over the vesting period and the charge to the profit and loss account in the prior year was
$68,137. As a result of changes in estimates concerning the number of Performance Rights likely to vest, the estimate of the
expense expected over the vesting period was revised downwards, resulting in a reversal of $2,502 in the financial year ended
30 June 2020.
(iv) In May 2017, following shareholder approval, Mr Jurman was granted 1 million unlisted options exercisable at $0.20 expiring
on 31 December 2019 whose value was estimated at $22,650 over the vesting period and the charge to the profit and loss
account for the reporting period is $4,265 (2019 - $8,462). The options expired unexercised on 31 December 2019.
Shareholdings of Key Management Personnel
The numbers of shares in the Company held during the financial period by Directors and other Key Management Personnel,
including shares held by entities they control, are set out below:
Balance
1 July 2019
Granted as
compensation
Performance Rights
Converted
Net Change Other
Balance
30 June 2020
Directors
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
Paul Jurman
-
-
-
104,340
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
104,340
-
104,340
Total
104,340
* Net Change Other refers to shares purchased during the financial year ended 30 June 2020.
PGM Annual Report for the year ended 30 June 2020
26
Option holdings of Key Management Personnel
The numbers of options in the Company held during the financial period by Directors and other Key Management Personnel, including
options held by entities they control, are set out below:
Balance
1 July 2019
Options Granted as
compensation
Options Exercised /
Expired*
Net Change Other
Balance
30 June 2020
-
-
-
-
-
(2,000,000)
(4,000,000)
(2,000,000)
(2,000,000)
(10,000,000)
-
-
-
-
-
-
-
-
-
-
Directors
Brian Moller
Corey Nolan
Christopher Hartley
John Anderson
2,000,000
4,000,000
2,000,000
2,000,000
Total
10,000,000
* 10,000,000 options expired unexercised.
Performance Rights of Key Management Personnel
The numbers of options in the Company held during the financial period by Directors and other Key Management Personnel, including
options held by entities they control, are set out below:
Directors
Brian Moller
Corey Nolan (i)
2,000,000
Christopher Hartley
John Anderson
Paul Jurman
-
-
-
Total
2,000,000
Balance
1 July 2019
Options Granted as
compensation
Options Exercised /
Expired
Net Change Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance
30 June 2020
-
2,000,000
-
-
-
2,000,000
(i) During the previous financial year, the Company granted 2 million performance rights for nil consideration over unissued ordinary
shares in the Company to Mr Nolan as part of his remuneration and details are noted below:
Performance Rights
Number
granted
Grant date
Fair value per
right at grant
date
$
Exercise price
per right
$
Number vested
at year end
Maximum total
value of grant
yet to vest
$
Corey Nolan
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
800,000
20/08/2018
200,000
20/08/2018
200,000
20/08/2018
200,000
20/08/2018
200,000
20/08/2018
400,000
20/08/2018
$0.09
$0.09
$0.09
$0.09
$0.09
$0.09
-
-
-
-
-
-
-
-
-
-
-
-
4,629
1,397
3,711
1,157
1,158
2,315
PGM Annual Report for the year ended 30 June 2020
27
• Tranche 1 - 800,000 Performance Rights in total vest upon
satisfaction of a number of key performance indicators
relating to the Platina Scandium Project. The Test Date for
these 800,000 Performance Rights is 20 August 2020.
The Performance Rights remain unvested at balance date.
• Tranche 2 - 200,000 Performance Rights vest and convert
into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.25 for a consecutive
period of at least 30 trading days commencing on 1 January
2019. The Performance Rights remain unvested at balance
date.
• Tranche 3 - 200,000 Performance Rights vest and convert
into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.50 for a consecutive
period of at least 30 trading days commencing on 1 January
2020. The Performance Rights remain unvested at balance
date.
• Tranche 4 - 200,000 Performance Rights vest and convert
into ordinary shares in the event that the Company acquires
new projects into the portfolio. The Test Date for these
200,000 Performance Rights is 20 August 2020. The
Performance Rights remain unvested at balance date.
• Tranche 5 - 200,000 Performance Rights vest and convert
into ordinary shares in the event that the Company unlocks
value for the Skaergaard Project in Greenland. The Test
Date for these 200,000 Performance Rights is 20 August
2020. The Performance Rights remain unvested at balance
date.
Loans to key management personnel and their related
parties
There were no loans outstanding at the reporting date to key
management personnel and their related parties.
Other Transactions with Key Management Personnel
There have been no other transactions with key management
personnel during the year ended 30 June 2020.
End of Remuneration Report
INDEMNIFICATION AND INSURANCE OF DIRECTORS,
OFFICERS AND AUDITOR
Each of the Directors of Platina Resources Limited has entered
into a Deed with Platina Resources Limited under the terms of
which the Company has provided certain contractual rights of
access to its books and records to those Directors.
Platina Resources Limited has insured all of the Directors and
officers of Platina Resources Limited. The contract of insurance
prohibits the disclosure of the nature of the liabilities covered
and amount of the premium paid. The Corporations Act does
not require disclosure of the information in these circumstances.
PROCEEDINGS ON BEHALF OF THE CONSOLIDATED
ENTITY
• Tranche 6 - 400,000 Performance Rights vest and convert
into ordinary shares in the event that there is a change of
control transaction which results in a value of not less than
$150 million. The Test Date for these 400,000
Performance Rights is 20 August 2020. The Performance
Rights remain unvested at balance date.
Except in relation to the matter referred to in the Review of
Operations above concerning the Munni Munni Project, no
person has applied for leave of Court to bring proceedings on
behalf of the Group or intervene in any proceedings to which
the Group is a party for the purpose of taking responsibility on
behalf of the Group for all or any part of those proceedings.
Moreover, the Group was not a party to any such proceedings
during the year.
PGM Annual Report for the year ended 30 June 2020
28
NON-AUDIT SERVICES
There have been no non-audit services provided by the
Company’s auditor during the year (2019: Nil).
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended
30 June 2020 has been received and can be found on the
following page.
governance. Platina Resources Limited’s Corporate Governance
Statement can be found following the Shareholder Information
section in this report.
This report is signed in accordance with a resolution of the
directors.
CORPORATE GOVERNANCE
Corey Nolan
Managing Director
In recognising the need for the highest standards of corporate
behaviour and accountability, the directors of Platina Resources
Limited support and have adhered to the principles of corporate
Brisbane
Date: 29 September 2020
29| PGM Annual Report for the year ended 30 June 2020
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2020 there have been:
i.
no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
Bentleys Brisbane Partnership
Chartered Accountants
Stewart Douglas
Partner
Brisbane
29 September 2020
PGM Annual Report for the year ended 30 June 2020
30
CONSOLIDATED FINANCIAL
STATEMENTS
Consolidated Statement of Comprehensive Income
for the Year Ended 30 June 2020
Note
30 June 2020
30 June 2019
Revenue and other income
Administration expenses
Depreciation and amortisation expense
Employee benefits expense
Exploration costs expensed
Marketing expenses
Occupancy expenses
Professional services
Share based payments reversed / (expensed)
Net fair value gain / (loss) on fair value of equity investments
Operating Loss
Loss before income tax
Income tax benefit/(expense)
Net profit/(loss) for the year
Other comprehensive income net of tax
Total comprehensive loss of year
Earnings per share
Basic/diluted loss per share (cents per share)
The accompanying notes form part of these financial statements.
2
3
3
4
7
$
$
Restated
54,726
40,387
(349,013)
(5,230)
(249,335)
(378,759)
(5,794)
(405,251)
(1,211,280)
(2,256,197)
(162,956)
(1,994)
(210,436)
(73,973)
(200,893)
(2,410,384)
(2,410,384)
187,498
(170,231)
(11,421)
(272,462)
(253,847)
-
(3,713,575)
(3,713,575)
1,108,952
(2,222,886)
(2,604,623)
-
-
(2,222,886)
(2,604,623)
Cents
(0.72)
Cents
(0.99)
PGM Annual Report for the year ended 30 June 2020
31
Consolidated Statement of Financial Position
as at 30 June 2020
Note
30 June 2020
30 June 2019
30 June 2018$
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Financial assets at FVTPL
Other non-current assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Total Current Liabilities
8
9
12
10
11
12
13
$
1,117,565
11,001
29,552
1,158,118
13,770
130,544
41,609
185,923
$
Restated
1,298,952
10,142
13,117
1,322,211
19,000
-
41,337
60,337
Restated
4,170,012
199,683
15,833
4,385,528
12,934
-
23,293
36,227
1,344,041
1,382,548
4,421,755
286,689
286,689
215,436
215,436
903,867
903,867
903,867
TOTAL LIABILITIES
286,689
215,436
NET ASSETS
Equity
Issued capital
Share-issue costs
Share-based payments reserve
Accumulated losses
14
15
1,057,352
1,167,112
3,517,888
52,827,671
(3,064,820)
49,762,851
571,285
50,576,464
(2,907,913)
47,668,551
552,459
50,576,464
(2,907,913)
47,668,551
298,612
(49,276,784)
(47,053,898)
(44,449,275)
TOTAL EQUITY
1,057,352
1,167,112
3,517,888
The accompanying notes form part of these financial statements.
PGM Annual Report for the year ended 30 June 2020
32
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2020
Balance at 1 July 2018
Consolidated balance previously reported at
30 June 2018
Adjustments to balances for change in
accounting policy
Share Capital
Ordinary
Share-based
Payments Reserve
Accumulated
Losses
$
$
$
Total
$
47,668,551
298,612
(18,785,593)
29,181,570
-
-
(25,663,682)
(25,663,682)
Restated Balance at 1 July 2018
47,668,551
298,612
(44,449,275)
3,517,888
Performance rights and options expensed
Sub total
Total Comprehensive loss
Balance at 30 June 2019
Issue of shares
Share issue costs
Performance rights and options expensed /
issued
Sub total
Total Comprehensive loss
Balance at 30 June 2020
-
47,668,551
253,847
552,459
-
253,847
(44,449,275)
3,771,735
-
-
(2,604,623)
(2,604,623)
47,668,551
552,459
(47,053,898)
1,167,112
2,251,207
(156,907)
-
-
-
18,826
-
-
-
2,251,207
(156,907)
18,826
49,762,851
571,285
(47,053,898)
3,280,238
-
-
(2,222,886)
(2,222,886)
49,762,851
571,285
(49,276,784)
1,057,352
The accompanying notes form part of these financial statements
PGM Annual Report for the year ended 30 June 2020
33
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2020
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Other receipts
Note
2020
$
2019
$
(1,085,887)
(1,521,820)
5,673
234,973
Net cash provided by (used in) operating activities
17
(845,241)
Cash Flows from Investing Activities
Payments for purchase of investments
Payments for property, plant and equipment
Cash held as credit card deposit
Exploration and evaluation expenditure
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Proceeds from issue of shares
Share Issue Costs
Net cash provided by (used in) financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at beginning of year
Effects of exchange rate fluctuations on the balances of cash held in foreign
currencies
(334,821)
-
-
(1,044,141)
(1,378,962)
2,196,060
(151,242)
2,044,818
(179,385)
1,298,952
(2,002)
34,495
1,108,952
(378,373)
-
(11,860)
(20,000)
(2,460,827)
(2,492,687)
-
-
-
(2,871,060)
4,170,012
-
Cash and cash equivalents at end of financial year
8
1,117,565
1,298,952
The accompanying notes form part of these financial statements.
PGM Annual Report for the year ended 30 June 2020
34
NOTES TO THE FINANCIAL
STATEMENTS
for the Year Ended 30 June 2020
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The principal accounting policies adopted in the preparation of
these consolidated financial statements are set out below.
These policies have been consistently applied to all the periods
presented, unless otherwise stated. The financial statements are
for the Consolidated Entity (or “Group”) consisting of Platina
Resources Limited (“Company”) and the entities it controlled
from time to time throughout the year. For the purpose of
preparing the consolidated financial statements, the Company is
a for-profit entity.
a. Basis of preparation
The financial report is a general purpose financial report that
has been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the
Australian Accounting Standards Board, the Corporations Act
2001 and other requirements of the law and Australian
equivalents to International Financial Reporting Standards
(AIFRS). The financial report has been prepared on a
historical cost basis, except where otherwise stated.
The financial report is presented in Australian dollars.
The Company is a listed public company, incorporated and
domiciled in Australia that has operated during the year in
Australia, United States of America and Greenland. The
Group’s principal activities are evaluation and exploration of
mineral interests, prospective for precious metals and other
mineral deposits.
b. Change in Accounting Policy – Exploration & evaluation
expenditure
The Group previously recognised costs of acquiring mineral
exploration interests as an asset with subsequent
exploration and evaluation costs capitalised as incurred. The
Group is changing this policy to fully expense mineral
exploration expenditure, not including acquisition costs. The
directors believe this change would result in financial
information that is more relevant to the needs of users, and
more reliable in that:
•
the financial statements would more faithfully represent
the financial position and financial performance of the
Group;
•
•
the financial statements would more accurately reflect
the economic substance of transactions and other
events; and
the financial statements would be more prudent and less
subject to bias.
Acquisition costs of mining tenements are accumulated in
respect of each identifiable area of interest. These costs are
only carried forward to the extent that the Group’s rights of
tenure to that area of interest are current and that the costs are
expected to be recouped through the successful development
of the area or where activities in the area have not yet reached
a stage that permits reasonable assessment of the existence of
economically recoverable reserves. Costs in relation to an
abandoned area are written off in full against profit or loss in
the year in which the decision to abandon the area is made.
Each area of interest is also reviewed annually and acquisition
costs written off to the extent that they will not be recoverable
in the future.
Comparatives have been restated to both reflect this change in
accounting policy and to reclassify the appropriate balances as
they were classified in the 30 June 2019 report, in accordance
with AASB 108.
Restated
30 June
2019
$
Change
$
Previously
reported 30
June 2019
$
Condensed Consolidated Statement of Comprehensive Income
Exploration
Expenditure expensed
Operating Loss
Income tax (expense)
/ benefit
Basic (Loss) per
Share
(2,256,197)
(2,143,987)
(112,210)
(3,713,575)
(2,143,987)
(1,569,588)
1,108,952
(102,176)
1,211,128
(0.0099)
(0.0085)
(0.0014)
Restated
30 June
2019
$
Change
$
Previously
reported 30
June 2019
$
Condensed Consolidated Statement of Financial Position
Exploration and
Evaluation
Expenditure
Deferred Tax
Liabilities
Accumulated Losses
-
(29,537,519)
29,537,519
-
1,627,674
(1,627,674)
(47,053,898)
(27,909,845)
(19,144,053)
PGM Annual Report for the year ended 30 June 2020
35
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
Restated
30 June 2018
$
Change
$
Previously
reported 30
June 2018
$
Condensed Consolidated Statement of Financial Position
Exploration and
Evaluation
Expenditure
Deferred Tax
Liabilities
Accumulated
Losses
-
-
(27,393,532)
27,393,532
1,729,850
(1,729,850)
(44,449,275)
(25,663, 682)
(18,785,593)
c. Statement of compliance with IFRS
The financial report was authorised for issue on the date the
director’s report was signed. It complies with Australian
Accounting Standards, which include Australian equivalents
to International Financial Reporting Standards (AIFRS).
Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto,
complies with International Financial Reporting Standards
(IFRS).
d. Going Concern
The financial report for the year ended 30 June 2020 is
prepared on a going concern basis, which contemplates the
continuity of normal business activity and the commercial
realisation of the Group’s assets and the settlement of
liabilities in the normal course of business.
The Group has incurred a loss for the year after tax of
$2,222,886 (2019: $2,604,623) and experienced net
operating and investing cash outflows of $2,224,203
(2019: $2,871,060). As at 30 June 2020, the Group has
net current assets of $861,429.
On 10 August 2020, the Company completed a non-
brokered private placement of 22.36 million ordinary fully
paid shares to raise $894,400 (before costs) at $0.04 per
share. In June 2020, the Company announced the sale of
the Skaergaard Project in Greenland to Canada’s Major
Precious Metals Corp (MPMC), in a transaction worth
approximately AUD $14.6 million comprised of shares (55
million shares based on MPMC’s share price of CAD 0.25
per share) and cash (CAD 0.5 million). This transaction is
subject to completion. If successful, this will further boost
the cash reserves of the Group.
Notwithstanding the above, as the Skaergaard sale is yet to
complete, the Directors consider that additional funding will be
required to enable the Group to continue as a going concern for
a period of at least twelve months from the date of signing this
financial report.
Such additional funding is potentially available from a number of
sources including further capital raisings, sale of projects and
managing cash flow in line with available funds. The Group’s
operations require the raising of capital on an on-going basis to
fund its planned exploration program and to commercialize its
projects.
However, due to the existence of the above financial conditions,
there exists a material uncertainty that may cast significant
doubt about the Group’s ability to continue as a going concern
and therefore the Group may be unable to realise its assets and
discharge its liabilities in the normal course of business.
The Directors believe the Group will obtain sufficient funding
from one or more of the funding opportunities detailed above to
enable it to continue as a going concern and therefore that it is
appropriate to prepare the financial statements on a going
concern basis.
e. Basis of Consolidation
Controlled Entities
The financial results of controlled entities are included in the
consolidated financial statements from the date control
commences until the date control ceases.
The acquisition of subsidiaries is accounted for using the
purchase method of accounting. The purchase method of
accounting involves allocating the cost of the business
combination to the fair value of the assets acquired and the
liabilities and contingent liabilities assumed at date of
acquisition.
Details of controlled entities at balance date are included in
Note 21.
f. New standards and interpretations not yet adopted
A number of new standards and interpretations are effective for
annual reporting periods beginning after 1 July 2020 and earlier
application is permitted, however the Company has not early
adopted the new or amended standards in preparing these
financial statements. The new standards relate to very specific
circumstances that are not applicable to the Company.
PGM Annual Report for the year ended 30 June 2020
36
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
g. Income Tax
The income tax expense (benefit) for the year comprises
current income tax expense (income) and deferred tax
expense (income).
Current income tax expense charged to the profit or loss is
the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially
enacted, as at the end of the reporting period. Current tax
liabilities (assets) are therefore measured at the amounts
expected to be paid to (recovered from) the relevant
taxation authority.
Deferred income tax expense reflects movements in
deferred tax asset and deferred tax liability balances during
the year as well as unused tax losses.
Current and deferred income tax expense (income) is
charged or credited directly to equity instead of the profit or
loss when the tax relates to items that are credited or
charged directly to equity.
Deferred tax assets and liabilities are ascertained based on
temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the
financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions
are available. No deferred income tax will be recognised
from the initial recognition of an asset or liability, excluding a
business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax
rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates
enacted or substantially, enacted at the end of the reporting
period. Their measurement also reflects the manner in
which management expects to recover or settle the carrying
amount of the related asset or liability.
Deferred tax assets relating to temporary differences and
unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against
which the benefits of the deferred tax asset can be utilised.
Current tax assets and liabilities are offset where a legally
enforceable right to set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the
respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of
set-off exists, the deferred tax assets and liabilities relate to
income taxes levied where it is intended that net settlement
or simultaneous realisation and settlement of the respective
asset and liability will occur in future periods in which
significant amounts of deferred tax assets or liabilities are
expected to be recovered or settled.
h. Property, Plant and Equipment
Each class of property, plant and equipment is carried at
cost less, where applicable, any accumulated depreciation
and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed
annually by directors to ensure it is not in excess of the
recoverable amount from these assets. The expected net
cash flows have been discounted to their present values in
determining recoverable amounts.
All repairs and maintenance are charged to the statement of
comprehensive income during the financial period in which
they are incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on
a straight-line basis over their useful lives to the Group
commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable
assets are:
Class of Fixed Asset
Depreciation Rate
Plant and equipment
7.5% -40%
Gains and losses on disposals are determined by comparing
proceeds with the carrying amount. These gains and losses
are included in the statement of comprehensive income.
i.
Leases
The Group has applied AASB 16 using the modified
retrospective approach and therefore the comparative
information has not been restated and continues to be
reported under AASB 117.
PGM Annual Report for the year ended 30 June 2020
37
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
i. Leases (continued)
Policy applicable from 1 July 2019: At inception of a
contract, the Group assesses whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the
use of an identified asset, the Group uses the definition of a
lease in AASB 16. Since the date of inception of the new
standard, the Group has not entered into any contracts that
contain a lease. As a result, no detailed accounting policy for
leases is disclosed in this report. In the event a contract is
entered into that contains a lease, the Group will develop a
policy based on the requirements of AASB 16.
j. Financial Instruments
Recognition
Financial instruments are initially measured at fair value on
trade date, which includes transaction costs, when the
related contractual rights or obligations exist. Subsequent to
initial recognition these instruments are measured as set out
overleaf.
Financial assets at amortised cost
These financial assets consist of trade and other receivables,
which are measured at cost less any accumulated
impairment losses. There is a significant concentration of
credit risk with the Australia Taxation Office, however
management considers credit risk of this entity to be
extremely low.
Individually significant receivables are considered for
impairment when they are past due or when other objective
evidence is received that a specific counterparty will default.
Receivables that are not considered to be individually
impaired are reviewed for impairment in groups, which are
determined by reference to the industry and region of a
counterparty and other shared credit risk characteristics. The
impairment loss estimate is then based on recent historical
counterparty default rates for each identified group.
Financial Assets at fair value through profit or loss
Financial assets are valued at ‘fair value through profit or
loss’ when they are either held for trading for the purpose
of short term profit taking, derivatives not held for hedging
purposes, or when they are designated as such to avoid an
accounting mismatch or to enable performance evaluation
where a group of financial assets is managed by key
management personnel on a fair value basis in accordance
with a documented risk management or investment
strategy. Such assets are subsequently measured at fair
value with changes in carrying value being included in profit
or loss.
Financial liabilities
Non-derivative financial liabilities are recognised at
amortised cost, comprising original debt less principal
payments and amortisation.
Fair Value
Fair value is determined based on current bid prices for all
quoted investments.
Impairment
At each reporting date, the Group assesses whether there
is objective evidence that a financial instrument has been
impaired.
k. Impairment of Assets
At each reporting date, the Group reviews the carrying
values of its tangible and intangible assets to determine
whether there is any indication that those assets have
been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair
value less costs to sell and value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying
value over its recoverable amount is expensed to profit and
loss.
Where it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which
the asset belongs.
PGM Annual Report for the year ended 30 June 2020
38
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
p. Goods and Services Tax (GST)
l. Employee Benefits
Short-term employee benefits, including wages and
payments made to defined contribution superannuation
funds, are recognised when incurred. Provision is made for
the Group’s liability for employee benefits arising from
services rendered by employees to balance date. Employee
benefits that are expected to be settled within one year have
been measured at the amounts expected to be paid when
the liability is settled. Other non-current employment benefit
obligations are discounted using market yields on corporate
bonds.
m. Equity settled compensation
The Group operates share-based compensation plans for
employees. The element over the exercise price of the
employee services rendered in exchange for the grant of
shares and options is recognised as an expense in the
statement of comprehensive income. The total amount to be
expensed over the vesting period is determined by reference
to the fair value of the options granted.
n. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits
held at call with banks, other short-term highly liquid
investments with original maturities of twelve months or
less, and bank overdrafts. Where applicable, bank overdrafts
are shown within short-term borrowings in current liabilities
on the statement of financial position.
o. Revenue and Other income
Interest revenues are recognised on a proportional basis
taking into account the interest rates applicable to the
financial assets.
All revenue is stated net of the amount of goods and
services tax (GST).
Other income is recognised when the Group obtains a
contractual right to obtain the income.
Revenues, expenses and assets are recognised net of the
amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Tax Office. In these
circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense.
Receivables and payables in the statement of financial
position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on
a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating
cash flows.
q. Provisions
Provisions are recognised when the Group has a legal or
constructive obligation, as a result of past events, for which
it is probable that an outflow of economic benefit will result
and that outflow can be reliably measured.
No provision has yet been recognised for mine restoration
and rehabilitation costs because the definition above has
not yet been satisfied in relation to any of the areas of
interest operated by the Group.
r. Trade and Other Payables
Trade and other payables represent the liability outstanding
at the end of the reporting period for goods and services
received by the Group during the reporting period which
remains unpaid. The balance is recognised as a current
liability with the amount being normally within 30 days of
reconciliation of the liability.
s. Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments
incorporated into the financial statements based on
historical knowledge and best available current information.
Estimates assume a reasonable expectation of future events
and are based on current trends and economic data,
obtained both externally and within the Group.
PGM Annual Report for the year ended 30 June 2020
39
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
s. Critical Accounting Estimates and Judgments
(Continued)
Key Judgements - Share Based Payments
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 of options
with non-market conditions is determined by an internal
valuation using a Black-Scholes option pricing model taking
into account the terms and conditions upon which the
instruments were granted. The fair value of performance
rights with market conditions is determined by using a
Black-Scholes option pricing model or Barrier model
simulation taking into account the terms and conditions
upon which the instruments were granted.
t. Foreign Currency Transactions and Balances
translated at the year-end exchange rate. Non-monetary
items measured at historical cost continue to be carried at
the exchange rate at the date of the transaction. Non-
monetary items measured at fair value are reported at the
exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary
items are recognised in profit or loss, except where deferred
in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-
monetary items are recognised directly in other
comprehensive income to the extent that the underlying gain
or loss is recognised in other comprehensive income;
otherwise the exchange difference is recognised in profit or
loss.
Foreign exchange differences relating to qualifying assets are
capitalised. Costs incurred in mining exploration are
considered to be part of qualifying assets and can be
capitalised.
Functional and presentation currency
u. Government Grants
The functional currency of each of the Group’s entities is
measured using the currency of the primary economic
environment in which that entity operates. The consolidated
financial statements are presented in Australian dollars,
which is the parent entity’s functional currency.
Transactions and balances
Foreign currency transactions are translated into functional
currency using the exchange rates prevailing at the date of
the transaction. Foreign currency monetary items are
To the extent that contributions or rebates are received from
taxation authorities, they are recognised in profit and loss as
an Income Tax Benefit.
v. Comparative Information
Where necessary, comparative financial information may be
adjusted to improve comparability, or as required by the
adoption of new or revised accounting standards.
PGM Annual Report for the year ended 30 June 2020
40
NOTE 2 REVENUE
Interest revenue – Banks
Other income1
1. During the period, Platina received $42,745 from the ATO in the form of a tax-free cash flow boost.
NOTE 3 LOSS FOR THE YEAR
Loss for the year is derived after charging the following significant expenses:
Depreciation of property, plant and equipment
Share-based payments expensed
NOTE 4 INCOME TAX EXPENSE
(a) The components of tax expense comprise:
Current tax
Deferred tax
Income tax expense/(benefit) reported in statement of comprehensive income
(b) The prima facie income tax on the loss is reconciled to the income tax
expense/(benefit) as follows:
Prima facie tax benefit on loss from ordinary activities before income tax 27.5% (2019:
27.5%)
Add tax effect of:
-
-
-
non-allowable items
share options / performance rights expensed during period
reversal of net fair value loss of equity investment
Less tax effect of
Benefit if tax losses and temporary differences not brought to accounts
R&D tax offset (benefit)
Income tax attributable to the Group
(c)Unrecognised deferred tax balances
2020
$
4,282
50,444
54,726
2020
$
(5,230)
(73,973)
2019
$
33,093
7,294
40,387
2019
$
33,093
(5,794)
(253,847)
2020
$
2019
$
(187,498)
(1,108,952)
-
-
(187,498)
(1,108,952)
(662,856)
(1,021,233)
96
47,843
55,246
2,341
69,808
-
(559,671)
(949,084)
559,671
(187,498)
(187,498)
949,084
(1,108,952)
(1,108,952)
Net unrecognised deferred tax balances for tax losses and temporary differences
8,824,430
9,371,588
PGM Annual Report for the year ended 30 June 2020
41
NOTE 5 KEY MANAGEMENT PERSONNEL
(a) Names and positions held by Group key management personnel in office at any time during the financial year are:
Director
Position
Brian Moller
Non-Executive Chairman
Corey Nolan
Managing Director
Christopher Hartley Non-Executive Director
John Anderson
Non-Executive Director
The key management personnel compensation included in “Employee benefits expense” and “Exploration Expenditure” is as follows:
Short-term employee benefits
Post-employment benefits
Termination benefits
Share-based payments
2020
$
386,674
25,777
-
18,825
431,276
2019
$
511,937
28,935
-
253,847
794,719
Individual Directors and executives compensation disclosures
Information regarding individual Directors and executives compensation and some equity instruments disclosures as permitted by
Schedule 5B to the Corporations Regulations 2001 is provided in the Remuneration Report section of the Directors’ Report. Apart
from the details disclosed in this note, no Director has entered into a material contract with the Company or the Group since the end
of the previous financial year and there were no material contracts involving Directors’ interests existing at year-end.
Loans to key management personnel and their related parties
There were no loans outstanding at the reporting date to key management personnel and their related parties.
Other Transactions with Key Management Personnel
There have been no other transactions with key management personnel during the year ended 30 June 2020.
NOTE 6 AUDITOR’S RENUMERATION
2020
$
Renumeration of the auditor of the Group for
- auditing or reviewing the financial reports
43,250
- non-audit services
-
43,250
2019
$
40,000
-
40,000
PGM Annual Report for the year ended 30 June 2020
42
NOTE 7 LOSS PER SHARE
Basic/diluted loss per share (cents per share)
Reconciliation of earnings to profit or loss:
Loss for the period
Earnings used to calculate basic EPS
Earnings used in the calculation of dilutive EPS
2020
$
(0.72)
(2,222,886)
(2,222,886)
(2,222,886)
2020
Number
Weighted average number of ordinary shares on issue in calculating basic EPS
310,614,416
Weighted average number of options outstanding
Weighted average number of ordinary shares outstanding during the period
used in calculating dilutive EPS
-
310,614,416
2019
$
(0.99)
(2,604,623)
(2,604,623)
(2,604,623)
2019
Number
264,126,235
11,000,000
264,126,235
Anti-dilutive options on issue not used in dilutive EPS calculation
-
11,000,000
NOTE 8 CASH AND CASH EQUIVALENTS
Cash at bank – deposit account
Cash at bank and in hand
Cash and cash equivalents
2020
$
-
1,117,565
1,117,565
2019
$
750,000
548,952
1,298,952
The average interest rate on the deposit accounts was nil at 30 June 2020 (2019 = 0.85%)
The average effective interest rate on short-term bank deposits was 1.67% (2019 = 2.40%). These deposits have an average maturity of 6
months.
The cash and cash equivalents balance above reconciles to the statement of cash flows.
NOTE 9 TRADE AND OTHER RECEIVABLES
CURRENT
GST receivable
Interest receivable
Total Receivables
2020
Number
10,600
401
11,001
2019
Number
8,077
2,065
10,142
PGM Annual Report for the year ended 30 June 2020
43
NOTE 10 PROPERTY, PLANT AND EQUIPMENT
PLANT AND EQUIPMENT
Plant and equipment:
At cost
Accumulated depreciation
Total Plant and Equipment
(a) Movements in Carrying Amounts
2020
$
791,590
(777,820)
13,770
2019
$
791,590
(772,590)
19,000
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the
current financial year:
Balance at 1 July 2018
Additions
Depreciation expense
Balance at 30 June 2019
Depreciation expense
Balance at 30 June 2020
NOTE 11 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Financial assets at fair value through profit or loss
Listed equity securities – Investment in Blue Moon Zinc Corp.
(i) Classification of financial assets at fair value through profit or loss
Plant and Equipment
$
12,934
11,860
(5,794)
19,000
(5,230)
13,770
2019
$
-
-
2020
$
-
130,544
The Group classifies its equity based financial assets at fair value through profit or loss upon adoption of AASB 9. They are
presented as current assets if they are expected to be sold within 12 months after the end of the reporting period; otherwise
they are presented as non-current assets. Changes in the fair value of financial assets are recognised in the statement of profit
or loss as applicable.
(ii) Amounts recognised in profit or loss
Changes in the fair values of financial assets at fair value have been recorded through profit or loss, representing a net loss of
$200,893 for the period.
PGM Annual Report for the year ended 30 June 2020
44
NOTE 11 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Continued)
(iii) Fair value measurement of financial instruments
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three (3)
levels of a fair value hierarchy. The three (3) levels are defined based on the observability of significant inputs to the
measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly
Level 3: unobservable inputs for the asset or liability
The following table shows the levels within the hierarchy of financial assets and liabilities measured at fair value on a recurring basis:
June 2020
Listed equity securities
Fair value at 30 June 2020
Level 1
$
130,544
130,544
Level 2
Level 3
$
-
-
$
-
-
NOTE 12 OTHER CURRENT AND NON-CURRENT ASSETS
CURRENT
Prepayments
NON CURRENT
Security and credit card deposits and Rental Bond
NOTE 13 TRADE, OTHER PAYABLES AND PROVISIONS
CURRENT
Trade payables
Sundry payables and accrued expenses
Employee benefits
2020
$
29,552
29,552
41,609
41,609
2020
$
80,110
184,512
22,067
286,689
Total
$
130,544
130,544
2019
$
13,117
13,117
41,337
41,337
2019
$
120,535
79,181
15,720
215,436
PGM Annual Report for the year ended 30 June 2020
45
NOTE 14 ISSUED CAPITAL
Fully paid ordinary shares 371,326,493 (2019: 264,126,235)
Share issue costs
(a) Ordinary Shares
Movements in Ordinary Shares
Balance at 1 July 2019
- In October 2019, shares were issued pursuant to an underwritten Share
Purchase Plan
- In October 2019, shares were issued to a consultant for services provided.
- In June 2020, shares were issued pursuant to a private placement
Less: Share issue costs
Balance at 30 June 2020
2020
$
52,827,671
(3,064,820)
49,762,851
Number of Shares
264,126,235
59,523,731
2,626,050
45,050,477
-
371,326,493
2019
$
50,576,464
(2,907,913)
47,668,551
$
47,668,551
1,250,000
55,147
946,060
(156,907)
49,762,851
Ordinary shares participate in dividends and the proceeds on the winding up of the Group in proportion to the number of shares
held. At Shareholders meetings, on a show of hands, every member present in person or by proxy, or attorney or representative
has one vote and upon a Poll every member present in person, or by proxy, attorney or representative shall in respect of each fully
paid share held, have one vote for the share, but in respect of partly paid shares, shall have such number of votes being equivalent
to the proportion which the amount paid (not credited) is of the total amounts paid and payable in respect of those shares
(excluding amounts credited).
(b) Quoted Options
There were no quoted options during the year ended 30 June 2020.
(c) Unlisted Options
For information relating to the Group’s employee option plan, including details of options issued, exercised and lapsed during the
financial period and the options outstanding at period-end refer to Note 18 Share-based Payments.
For information relating to share options issued to key management personnel during the financial period, refer to Note 18 Share-
based Payments.
2020 - Options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise
Period
Exercise
Price
Note
Opening
Balance
1 July 2019
Options
Issued
2019/20
Options
Exercised/
Expired
2019/20
Number Number
Number
Closing
Balance
30 June
2020
Number
Vested /
Exercisable
30 June
2020
Number
Options expiring 31 December 2019
(i)
$0.20
11,000,000
Weighted average exercise price ($)
11,000,000
0.20
-
-
-
(11,000,000)
(11,000,000)
0.20
-
-
-
-
-
-
(i) 11 million options expired unexercised on 31 December 2019.
PGM Annual Report for the year ended 30 June 2020
46
NOTE 14 ISSUED CAPITAL (Continued)
2019 - Options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise
Period
Exercise
Price
Note
Opening
Balance
1 July 2018
Options
Issued
2018/19
Options
Exercised/
Cancelled
2018/19
Number
Number
Number
Closing
Balance
30 June
2019
Number
Vested /
Exercisable
30 June
2019
Number
Options expiring 31 December 2019
Options expiring 28 April 2019
(i)
(ii)
$0.20
5,000,000
6,000,000
-
11,000,000
6,000,000
$0.20
6,000,000
-
(6,000,000)
-
-
Weighted average exercise price ($)
0.20
0.20
0.20
0.20
0.20
11,000,000
6,000,000
(6,000,000) 11,000,000
6,000,000
(i) 6 million options were issued to directors, Corey Nolan and John Anderson as part of their remuneration package.
(ii) 6 million options expired unexercised on 28 April 2019.
The weighted average contractual life of the unlisted options is nil (2019: 6 months).
None of the options had any voting rights, any entitlement to dividends or any entitlement to the proceeds of liquidation in the
event of a winding up.
(d) Performance Rights
2020 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Grant date
Expiry Date
Note
Opening
Balance
1 July 2019
Rights
Issued
2019/20
Exercised/
Cancelled
2019/20
Number
Number
Number
Closing
Balance
30 June
2020
Number
Vested /
Exercisable
30 June 2020
Number
20 August 2018
20 August 2020
(i)
2,000,000
2,000,000
-
-
-
-
2,000,000
2,000,000
-
-
(i) On 20 August 2018, 2 million performance rights were granted to Corey Nolan and vest subject to meeting specific
performance conditions as follows.
Tranche 1 - 800,000 Performance Rights in total vest upon satisfaction of a number of key performance indicators relating
to the Platina Scandium Project. The Test Date for these 800,000 Performance Rights is 20 August 2020. The
Performance Rights remain unvested at balance date.
Tranche 2 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.25 for a consecutive period of at least 30 trading days commencing on 1 January
2019. The Performance Rights remain unvested at balance date.
Tranche 3 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company’s Shares
trade at a daily VWAP of at least $0.50 for a consecutive period of at least 30 trading days commencing on 1 January
2020. The Performance Rights remain unvested at balance date.
Tranche 4 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company acquires
new projects into the portfolio. The Test Date for these 200,000 Performance Rights is 20 August 2020. The
Performance Rights remain unvested at balance date.
PGM Annual Report for the year ended 30 June 2020
47
NOTE 14 ISSUED CAPITAL (Continued)
Tranche 5 - 200,000 Performance Rights vest and convert into ordinary shares in the event that the Company unlocks
value for the Skaergaard Project in Greenland. The Test Date for these 200,000 Performance Rights is 20 August 2020.
The Performance Rights remain unvested at balance date.
Tranche 6 - 400,000 Performance Rights vest and convert into ordinary shares in the event that there is a change of
control transaction which results in a value of not less than $150 million. The Test Date for these 400,000 Performance
Rights is 20 August 2020. The Performance Rights remain unvested at balance date.
2019 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Grant date
Expiry Date
Note
20 August 2018
20 August 2020
(i)
Opening
Balance
1 July 2018
Rights
Issued
2018/19
Exercised/
Cancelled
2018/19
Number
Number
Number
Closing
Balance
30 June
2019
Number
Vested /
Exercisable
30 June 2019
Number
-
-
2,000,000
2,000,000
-
-
2,000,000
2,000,000
-
-
(e) Capital Management
Management controls the capital of the Group in order to maintain a good debt to equity ratio, provide the shareholders with
adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
There are no externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels, distributions to
shareholders and share issues.
There have been no changes in the strategy by management to control the capital of the Group since the prior year. This strategy
is to ensure that the Group has no debts.
PGM Annual Report for the year ended 30 June 2020
48
NOTE 15 SHARE BASED PAYMENTS RESERVE
Share-based payments reserve
Share-based Payments Reserve
2020
$
571,285
571,285
2019
$
552,459
552,459
The share-based payments reserve records items recognised as expenses on valuation of share options and performance rights.
Movement during the year
Opening balance
-
Performance rights and options to directors and key management personnel
Closing balance
NOTE 16 COMMITMENTS
(a) Tenement Commitments
2020
$
552,459
18,826
571,285
2019
$
298,612
253,847
552,459
The Group has certain obligations to expend minimum amounts on exploration in tenement areas. These obligations may be varied
from time to time and are expected to be fulfilled in the normal course of operations of the Group.
Tenement
Munni Munni
Greenland
Less than 12 months
Between 12 months
and 5 years
Greater than 5 years
$
132,040
18,338
$
660,199
3,504,996
$
396,120
-
To keep tenements in good standing, work programs should meet certain minimum expenditure requirements. The Group has the
option to negotiate new terms or relinquish the tenements and also to meet expenditure requirements by joint venture or farm-in
arrangements.
For the financial year ending June 2020 the Group may seek to renegotiate tenement arrangements or apply for exemptions
against expenditure in relation to those tenements which did not have sufficient expenditure recorded against them in the prior 12
months of their term. In the event that renegotiation does not occur or exemption for these tenements is not granted, the
tenements may not be renewed.
On 1 June 2020, the Group entered into a conditional agreement with Major Precious Metals Corp (formerly Eastern Zinc
Corporation) for the sale of its Greenland assets. The transaction is subject to final confirmatory due diligence and regulatory
approvals in Australia and Greenland. The Greenland Mines Department recently renewed Skaergaard’s exploration licence for a
further three-year period (December 2022) and waived all the 2020 tenement expenditure obligations. The commitments noted
above for Greenland will be extinguished if settlement of the agreement with Major Precious Metals Corp occurs.
PGM Annual Report for the year ended 30 June 2020
49
NOTE 16 COMMITMENTS (Continued)
(b) Other Commitments
i)
In August 2019, the Group announced a farm-in and joint venture deal with TSX-V listed Blue Moon Zinc Corp (“BMZ”)
and its wholly owned subsidiary Keystones Mines, Inc, on its Mariposa County , Blue Moon project in California, USA
(Refer ASX announcement dated 29 August 2019).
Platina can acquire up to a 70% interest in the Blue Moon Project by spending initially CAD3.25 million over 18 months to
earn 50% and a further CAD3.75 million over another 18 months to earn an additional 20%. Platina will be operator of
the Joint Venture. Platina has spent CAD 674,858 up to 30 June 2020 and is required to spend a further CAD
2,575,142 by April 2021 to earn an initial 50% interest.
ii) On 1 June 2020, the Company entered into an agreement with Major Precious Metals Corp (formerly Eastern Zinc
Corporation) for the sale of its Skaergaard project in Greenland (Major transaction). As part of this transaction, the
Company has agreed to issue 15,560,000 Shares (Argonaut Shares) as compensation for services provided by Argonaut
Limited ACN 109 326 418 (Argonaut) in connection with the transaction.
The Company will enter a voluntary restriction deed in respect of 50% of the Argonaut Shares for those Shares to be
subject to escrow for a period of 6 months, should settlement of the Major transaction occur.
NOTE 17 CASH FLOW INFORMATION
(a) Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in loss
Depreciation
Exploration and evaluation expenditure written off
Share based payments expensed
Net fair value gain / (loss) on fair value of equity investments designated at FVTPL
Foreign exchange loss
Changes in assets and liabilities
(Increase)/decrease in prepayments
(Increase)/decrease in other current assets
(Increase)/decrease in financial assets
Increase/(decrease) in trade payables and accruals
Increase/(decrease) in provisions
Cash flow from operations
b) Non-Cash Financing and Investing Activities
There were no non-cash financing activities during the year.
2020
$
2019
$
(2,222,886)
(2,604,623)
5,230
1,211,280
73,973
200,893
5,387
104,051
(1,130)
-
(228,386)
6,347
(845,241)
5,794
2,256,197
253,847
-
-
2,716
191,497
-
(387,311)
(96,490)
(378,373)
PGM Annual Report for the year ended 30 June 2020
50
NOTE 18 SHARE BASED PAYMENTS
Performance Rights Plan (PRP)
Shareholders approved the Company’s PRP at the Annual General Meeting held on 28 November 2018. The PRP is designed to
provide a framework for competitive and appropriate remuneration so as to retain and motivate skilled and qualified personnel
whose personal rewards are aligned with the achievement of the Company’s growth and strategic objectives.
During the financial year, the Company did not grant any performance rights over unissued ordinary shares in the Company (2019:
2,000,000 to Mr Nolan). Refer to Note 14(d) for additional information.
Employee Option Incentive Plan (“EOIP”)
Shareholders last approved the Platina Resources Limited EOIP at the General Meeting on 28 April 2017. The EOIP allows
Directors from time to time to invite eligible employees to participate in the Plan and offer options to those eligible persons. The
Plan is designed to provide incentives, assist in the recruitment, reward, retention of employees and provide opportunities for
employees (both present and future) to participate directly in the equity of the Company. The contractual life of each option granted
is three years or as otherwise determined by the Directors. There are no cash settlement alternatives. No options were issued
under the EOIP in 2020 (2019: nil).
Non - Plan based payments
The Company also makes share based payments to consultants and / or service providers from time to time, not under any specific
plan. Specific shareholder approval was obtained for any share based payments to directors and officers of the parent entity.
6 million options were issued to directors and officers during the year ended 30 June 2019. Refer to Note 14(c) for additional
information.
The following share-based payment arrangements existed at 30 June 2020:
a. Unlisted Options
30 June 2020
30 June 2019
Number of Options
Weighted Average
Exercise Price ($)
Number of Options
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
11,000,000
-
0.20
0.20
11,000,000
6,000,000
(11,000,000)
(0.20)
(6,000,000)
Granted (i) (ii)
Expired
Outstanding at end of the year
Exercisable at end of the year
-
-
-
-
11,000,000
6,000,000
Expenses arising from share-based payment transactions - Unlisted Options
Share based payments, are as follows (with additional information provided in Note 14 and 15 above):
0.20
0.20
(0.20)
0.20
0.20
Options to directors and company secretary (i) (ii)
11,000,000
21,329
11,000,000
185,710
Total
11,000,000
21,329
11,000,000
185,710
2020
Number
2020
$
2019
Number
2019
$
PGM Annual Report for the year ended 30 June 2020
51
NOTE 18 SHARE BASED PAYMENTS (Continued)
(i)
(ii)
In May 2017, following shareholder approval, the directors and company secretary were issued 7 million unlisted options
exercisable at $0.20 expiring on 31 December 2019 whose value was estimated at $249,150 over the vesting period and
the charge to the profit and loss account for the reporting period is $21,329 (2019 - $42,310).
In August 2018, following shareholder approval, Mr Nolan was issued 4 million unlisted options and Mr Anderson was issued
2 million unlisted options, exercisable at $0.20 expiring on 31 December 2019 whose combined value was $143,400 and
this amount was charged to the profit and loss account for the reporting period.
The following table lists the inputs to the model used for the financial period ended 30 June 2020 and 30 June 2019.
(a) Grant date
(b) Exercise price
(c) Expiry date
(d) Share price at grant date
(e) Expected price volatility of the Company’s shares
(f) Risk-free interest rate
(g) Discount for market vesting condition
20 August 2018
$0.20
31 December 2019
$0.09
100%
2.04%
Nil
2 May 2017
$0.20
31 December 2019
$0.11
90%
2.08%
50%
During the year ended 30 June 2020, no options were exercised.
b. Performance Rights
30 June 2020
30 June 2019
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Number of
Performance Rights
Weighted Average
Exercise Price ($)
Outstanding at beginning of the year
2,000,000
Granted
Exercised / Expired
Cancelled / Lapsed
-
-
-
Outstanding at end of the year
2,000,000
Exercisable at end of the year
-
-
-
-
-
-
-
-
2,000,000
-
-
2,000,000
-
-
-
-
-
-
-
The following share-based payment arrangements were in place during the current and prior periods:
2020
Number of
Performance Rights
Grant date
Expiry date
at grant date
Vesting date
Fair value
$
Performance Rights issued to C
Nolan
2,000,000 20-Aug-18
20-Aug-20
180,000
20-Aug-20
No performance rights were exercised during the current and prior periods.
PGM Annual Report for the year ended 30 June 2020
52
NOTE 19 OPERATING SEGMENTS
The Group operates predominately in mineral exploration with a focus on platinum group metals, zinc and gold and base metals.
Segment Information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors
(chief operating decision makers) in assessing performance and determining the allocation of resources.
The Group is managed primarily on the basis of geographical locations as these locations have notably different risk profiles and
performance assessment criteria. Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar
economic characteristics and are similar with respect to any external regulatory requirements.
Basis of accounting for purposes of reporting by operating segments:
(a) Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision maker with respect to operating
segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial
statements of the Group.
(b) Segment assets
Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic value from
that asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.
(c) Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the
segment. Segment liabilities include trade and other payables.
(d) Unallocated items
The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered
part of the core operations of any segment:
• Derivatives
•
Impairment of assets and other non-recurring items of revenue or expense
• Deferred tax assets and liabilities
• Current tax liabilities
• Other financial liabilities
•
Intangible assets
• Discontinuing operations
• Depreciation
• Corporate charges
PGM Annual Report for the year ended 30 June 2020
53
NOTE 19 OPERATING SEGMENTS (Continued)
i. Segment Performance
Greenland
Australia
USA
All Other
Segments
30 June 2020
REVENUE
Interest revenue
Other revenue
Total segment revenue
$
-
-
-
$
4,282
50,444
54,726
-
-
-
Reconciliation of segment revenue to Group revenue
Total Group revenue
Reconciliation of segment result of Group net loss
after tax
Segment net loss before tax
(123,718)
(202,332)
(935,046)
Income tax benefit
-
187,498
-
$
-
-
-
-
-
Total
$
4,282
50,444
54,726
54,726
(1,261,096)
187,498
Amounts not included in segment result but reviewed
by Board
- Corporate charges
- Depreciation and amortisation
Net Loss after tax from
continuing operations
(1,198,784)
(1,198,784)
(5,230)
(5,230)
(2,222,886)
PGM Annual Report for the year ended 30 June 2020
54
NOTE 19 OPERATING SEGMENTS (Continued)
Greenland
Australia
All Other
Segments
30 June 2019
REVENUE
Interest revenue
Other revenue
Total segment revenue
$
-
-
-
$
33,093
7,294
40,387
Reconciliation of segment revenue to Group revenue
Total Group revenue
Reconciliation of segment result of Group net loss after tax
Segment net loss before tax
(173,498)
(2,092,404)
Income tax benefit
1,108,952
Amounts not included in segment result but reviewed by Board
- Corporate charges
- Depreciation and amortisation
Net Loss after tax from continuing operations
ii. Segment Assets
$
-
-
-
-
-
(1,482,266)
(5,794)
Total
$
33,093
7,294
40,387
40,387
(2,265,902)
1,108,952
(1,482,266)
(5,794)
(2,604,623)
30 June 2020
Reconciliation of segment assets to Group assets
Segment Assets
Unallocated Assets
- Corporate
Total Group Assets
Greenland
Australia
All Other
Segments
$
-
$
10,000
$
-
Total
$
10,000
1,334,041
1,344,041
PGM Annual Report for the year ended 30 June 2020
55
NOTE 19 OPERATING SEGMENTS (Continued)
30 June 2019
Reconciliation of segment assets to Group assets
Segment Assets
Unallocated Assets
- Corporate
Total Group Assets
iii. Segment Liabilities
30 June 2020
Reconciliation of segment liabilities to Group
liabilities
Total Group Liabilities
Greenland
Australia
All Other
Segments
$
-
$
-
$
-
Total
$
-
1,382,548
1,382,548
Greenland
Australia
$
$
All Other
Segments
$
Total
$
-
286,689
-
286,689
30 June 2019
Reconciliation of segment liabilities to Group
liabilities
Total Group Liabilities
Greenland
Australia
$
$
3,976
211,460
All Other
Segments
$
-
286,689
Total
$
215,436
215,436
PGM Annual Report for the year ended 30 June 2020
56
NOTE 20 FINANCIAL RISK MANAGEMENT
Financial Risk Management Policies
The Group’s financial instruments consist mainly of deposits with banks, short term investments, accounts receivable and accounts
payable.
The main risks and related risk management policies arising from the Group’s financial instruments are summarised below.
Credit Risk
The maximum exposure to credit risk at balance date to recognised financial assets, net of any provisions for doubtful debts, is
disclosed in the statement of financial position and notes to and forming part of the financial report.
Interest Rate Risk
The Group’s exposure to interest rate risk is the risk that an increase or decrease in market interest rates will result in increased or
reduced revenue from interest receipts. The Group’s exposure to interest rate risk is minimal.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows. The Group’s operations require the raising of capital on an
on-going basis to fund its planned exploration program and to commercialise its tenement assets. The Group’s past success in
the raising of capital will ensure it can continue as a going concern and proceed with planned exploration expenditure.
Net Fair Values
The net fair values of financial assets and financial liabilities approximate their carrying value. No financial assets and financial
liabilities are readily traded on organised markets in standardised form, except for the financial assets at fair value through profit or
loss, as disclosed in Note 11. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are
disclosed in the statement of financial position and in the notes to and forming part of the financial report.
The Group’s exposure to interest rate risk and effective average interest rate for classes of financial assets and financial liabilities is
set out below.
PGM Annual Report for the year ended 30 June 2020
57
NOTE 20 FINANCIAL RISK MANAGEMENT (Continued)
Weighted
Average
Effective
Interest Rate
Floating
Interest Rate
Less than 1
year
Fixed Interest
Rate Maturing
Non-Interest
Bearing
Total
2020
Financial Assets
Cash and cash equivalent assets
0.02%
224,826
-
892,739
1,117,565
Security deposits and deposits at financial
institutions
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
2019
Financial Assets
1.55%
-
-
-
31,609
10,000
-
11,001
41,609
11,001
224,826
31,609
913,740
1,170,175
-
-
-
-
286,689
286,689
286,689
286,689
Cash and cash equivalent assets
0.85%
1,191,412
-
107,540
1,298,952
Security deposits and deposits at financial
institutions
Other financial assets
Total Financial Assets
Financial Liabilities
Other financial liabilities
Total Financial Liabilities
Foreign exchange risk
2.40%
-
-
-
31,337
10,000
-
10,142
41,337
10,142
1,191,412
31,337
127,682
1,350,431
-
-
-
-
215,436
215,436
215,436
215,436
Exposure to foreign exchange risk may result in fair value or future cash flows of a financial instrument fluctuating due to
movement in foreign exchange rates of currencies in which the Group makes purchases or holds financial instruments which are
other than the AUD functional currency.
Other than the investment held in Blue Moon Zinc Corp, the foreign currency to the Group is considered immaterial.
PGM Annual Report for the year ended 30 June 2020
58
NOTE 21 PLATINA RESOURCES LIMITED PARENT INFORMATION
a. Platina Resources Limited
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Share issue costs
Share-based payments reserve
Accumulated Losses
TOTAL EQUITY
FINANCIAL PERFORMANCE
Loss for the period
2020
$
2019
$
1,113,186
230,855
1,344,041
286,689
286,689
1,057,352
52,827,671
(3,064,820)
49,762,851
571,285
(49,276,784)
1,057,352
1,220,920
159,452
1,380,372
213,260
213,260
1,167,112
50,576,464
(2,907,913)
47,668,551
552,459
(47,053,898)
1,167,112
(2,222,886)
(358,460)
Contingent liabilities of the parent entity
The parent entity’s contingent liabilities are noted in Note 22.
For details on commitments, see Note 16.
Commitments for the acquisition of property, plant and equipment by the parent entity
The parent entity has not made any commitments for the acquisition of property, plant and equipment.
PGM Annual Report for the year ended 30 June 2020
59
NOTE 21 PLATINA RESOURCES LIMITED PARENT INFORMATION (Continued)
b. Interest in Subsidiaries
Company Name
Parent Entity
Country of
Incorporation
Percentage Owned (%)*
2020
2019
Platina Resources Limited
Australia
Subsidiaries
Platina (South America) Pty Ltd
Australia
Red Heart Mines Pty Ltd
Platina Scandium Pty Ltd
Skaergaard Holdings Pty Ltd1
Australia
Australia
Australia
Platina Greenland A/S
Greenland
100
100
100
100
100
100
100
100
100
100
* Percentage of voting power is in proportion to ownership
1. Skaergaard Holdings Pty Ltd is the parent entity of Platina Greenland A/S with a 100% interest.
None of the subsidiaries have traded during the year and do not have any assets and liabilities apart from Platina Greenland A/s
which has cash on hand of $44,932.
c. Amounts Outstanding from Related Parties
There are no amounts outstanding from related parties.
NOTE 22 CONTINGENT LIABILITIES
There are no known contingent liabilities as at 30 June 2020.
NOTE 23 RELATED PARTY TRANSACTIONS
There have been no other transactions with key management personnel during the year ended 30 June 2020.
Key Management Personnel
Disclosures relating to Key Management Personnel are set out in Note 5.
For full details refer to the Remuneration Report included in the Director’s Report.
PGM Annual Report for the year ended 30 June 2020
60
NOTE 24 SUBSEQUENT EVENTS
No matter or circumstance has arisen since the end of the financial year, to the date of this report, that has significantly affected, or
may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future
financial years other than the matters referred to below.
• On 20 July 2020, the Company announced it commenced proceedings in the Supreme Court of Western Australia against
Artemis Resources Ltd (Artemis) and its subsidiary Munni Munni Pty Ltd. (Munni Munni). Platina considers that each of Artemis
and Munni Munni has breached the Heads of Agreement, entered into on 4 August 2015, by reason of Artemis entering into
contractual arrangements with the UK, AIM listed company Empire Metals Limited and Almeera Ventures Limited, and is seeking
various relief, including an order that it is entitled to exercise its right to buy back Artemis’ and Munni Munni’s respective interests
in the Munni Munni project.
• On 10 August 2020, the Company completed a non-brokered private placement of 22.36 million ordinary fully paid shares to
raise $894,400 (before costs) at $0.04 per share. In addition, 22.36 million options with a strike price of 10 cents with a 3-
year term will be granted to the Placement participants subject to shareholder approval at the next shareholders meeting,
scheduled to occur in October 2020.
• On 13 August 2020, the Company completed the acquisition of a 100% interest in the Challa Gold Project and issued
10,000,000 ordinary fully paid shares and paid $20,000.
• On 20 August 2020, the Company confirmed that 400,000 Performance Rights out of a total of 2,000,000 Performance Rights
that were issued to Managing Director, Mr Nolan in August 2018, vested as the performance conditions were satisfied which has
resulted in the issue of 400,000 ordinary fully paid shares. The balance of the Performance Rights lapsed as the performance
conditions were not satisfied.
The financial report was authorised for issue on the date the director’s report was signed. The Board has the power to amend and
re-issue the financial report.
PGM Annual Report for the year ended 30 June 2020
61
DECLARATION BY
DIRECTORS
In the opinion of the Directors of Platina Resources Limited
(the ‘Company’):
a. the accompanying financial statements and notes are in
accordance with the Corporations Act 2001 including:
This declaration has been made after receiving the declarations
required to be made to the Directors in accordance with
Section 295A of the Corporations Act 2001 for the financial
year ended 30 June 2020.
i. giving a true and fair view of the Consolidated Entity’s
financial position as at 30 June 2020 and of its
performance for the year then ended; and
ii. complying with Australian Accounting Standards, the
Corporations Regulations 2001, professional reporting
requirements and other mandatory requirements;
b. there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due
and payable; and
c. the financial statements and notes thereto are in
accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
This declaration is signed in accordance with a resolution of the
Board of Directors.
Corey Nolan
Managing Director
Brisbane
Date: 29 September 2020
62| PGM Annual Report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Opinion
We have audited the financial report of Platina Resources Limited (“the Company”, and its controlled entities
(the “Group”), which comprises the consolidated statement of financial position as at 30 June 2020 and the
consolidated statement of comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, notes comprising a summary of significant
accounting policies and other explanatory information, and the director’s declaration.
In our opinion, the consolidated financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Australian Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, has been provided to the
directors of the Company on the same date as this report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1(d) in the financial report, which indicates that the Company incurred a net loss of
$2,222,886 during the year ended 30 June 2020 (2019: $2,604,623) and experienced net operating and
investing cash outflows of $2,224,203 (2019: $2,871,060). As stated in Note 1(d), the events or conditions,
along with other matters as set forth in Note 1(d), indicate that a material uncertainty exists that may cast
significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect
of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
63| PGM Annual Report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Key Audit Matters (Cont’d)
Key Audit Matter
How our audit addressed the key audit matter
Exploration and Evaluation Expenditure -
$1,211,280
Our procedures included, amongst others:
• We assessed the appropriateness of the related
disclosures in the financial statements.
• We tested the expenditure for the year by
evaluating a sample of recorded expenditure for
consistency to underlying records.
As disclosed in Note 1 b the Group changed its
accounting policy to fully expense mineral
exploration expenditure. In accordance with AASB
108 Accounting Policies, Changes in Accounting
Estimates and Errors, comparatives have been
restated to reflect this change and reclassify the
appropriate balances in the 30 June 2019 financial
statements.
For the period ended 30 June 2020, exploration
costs expensed totaled $1,211,280.
Exploration and Evaluation Expenditure is
considered to be a key audit matter due to:
•
•
The change in accounting policy during the
period
The significance of the expense to the
Consolidated Entity’s consolidated statement of
profit or loss and other comprehensive income,
as it is the largest expense.
Information Other than the Financial Report and Auditor's Report Thereon
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 June 2020, but does not include the financial report
and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
64| PGM Annual Report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this financial
report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
65| PGM Annual Report for the year ended 30 June 2020
INDEPENDENT AUDITOR’S REPORT
TO THE DIRECTORS OF PLATINA RESOURCES LIMITED
Auditor’s Responsibilities for the Audit of the Financial Report (Cont’d)
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Platina Resources Limited, for the year ended 30 June 2020,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Group are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Bentleys Brisbane Partnership
Chartered Accountants
Stewart Douglas
Partner
Brisbane
29 September 2020
PGM Annual Report for the year ended 30 June 2020
66
SHAREHOLDER
INFORMATION
Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is as follows. The
information is current as at 24 September 2020.
(a) Distribution of equity securities
The number of holders, by size of holding, in each class of security are:
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Ordinary Shares
No. Holders
No. Shares
106
174
228
917
456
19,901
551,581
1,921,485
38,165,279
363,428,247
Total
1,881
404,086,493
The number of shareholders holding less than a marketable parcel was 402 and they hold a total of 1,439,078 shares.
PGM Annual Report for the year ended 30 June 2020
67
Twenty largest holders
The names of the twenty largest holders, in each class of quoted security are:
i. Ordinary shares:
#
Registered Name
1
2
3
4
5
6
7
8
9
CAIRNGLEN INVESTMENTS PTY LTD*
J P MORGAN NOMINEES AUSTRALIA LIMITED
PALISADES GOLDCORP LTD
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SINO PORTFOLIO INTERNATIONAL LIMITED
YANDAL INVESTMENTS PTY LTD
MR MICHAEL WONG
OPEKA DALE PTY LTD
10
MR GEOFFREY JAMES HARRIS
11
CITICORP NOMINEES PTY LIMITED
12
NOVASC PTY LTD
13
CORPORATE & RESOURCE CONSULTANTS PTY LTD
14
GPI MANAGEMENT SERVICES PTY LTD
15
BOND STREET CUSTODIANS LIMITED
16
MRS LILIANA TEOFILOVA
17
JETT CAPITAL ADVISORS LLC
18
JORLYN INVESTMENTS PTY LTD
19
MR MANUEL ARTHUR SAMIOS
20
MR IANAKI SEMERDZIEV
Top 20
Total
* Merged holding
Number of
shares
52,642,317
44,364,769
14,955,767
11,638,002
10,134,464
7,900,000
7,000,000
5,133,991
4,800,000
4,761,905
4,748,234
4,308,712
3,972,000
3,400,000
3,211,385
2,657,571
2,626,050
2,500,000
2,300,000
2,015,098
% of total shares
13.03%
10.98%
3.70%
2.88%
2.51%
1.96%
1.73%
1.27%
1.19%
1.18%
1.18%
1.07%
0.98%
0.84%
0.79%
0.66%
0.65%
0.62%
0.57%
0.50%
195,070,265
404,086,493
48.29%
100.00%
PGM Annual Report for the year ended 30 June 2020
68
Substantial Shareholders
(b) Voting rights
Substantial shareholders as shown in substantial shareholder
notices received by Platina Resources Limited are:
All ordinary shares carry one vote per share without restriction.
Name of Shareholder:
Cairnglen Investments Pty Ltd
Ordinary Shares:
52,642,317
Options and performance rights do not carry voting rights.
(c) Restricted securities
The Group currently has no restricted securities on issue.
Electrum
Global
associated entities)
Holdings
(and
20,797,199
(d) On-market buy back
There is not a current on-market buy-back in place.
PGM Annual Report for the year ended 30 June 2020
69
CORPORATE
GOVERNANCE STATEMENT
The board of directors of Platina Resources Limited is
responsible for the corporate governance of the Group. The
Board guides and monitors the business and affairs of Platina
Resources Limited on behalf of the shareholders by whom they
are elected and to whom they are accountable. The Group’s
governance approach aims to achieve exploration, development
and financial success while meeting stakeholders’ expectations
of sound corporate governance practices by proactively
determining and adopting the most appropriate corporate
governance arrangements.
ASX Listing Rule 4.10.3 requires listed companies to disclose
the extent to which they have complied with the ASX Best
Practice Recommendations of the ASX Corporate Governance
Council in the reporting period. A description of the Company’s
main corporate governance practices is set out below. The
Corporate Governance Statement is current as at 30 June
2020 and has been approved by the Board of Directors. All
these practices, unless otherwise stated, were in place for the
entire year. They comply with the ASX Corporate Governance
Principles and Recommendations (3rd edition), however, a
number of those principles and recommendations are directed
towards listed companies considerably larger than Platina
Resources Limited, whose circumstances and requirements
accordingly differ markedly from the Company's. For example,
the nature of the Company's operations and the size of its staff
mean that a number of the Board committees and other
governance structures recommended by the CGC are not only
unnecessary in Platina’s case, but the effort and expense
required to establish and maintain them would, in the directors'
view, be an unjustified diversion of shareholders' funds.
As the Group's activities develop in size, nature and scope, the
size of the Board and the implementation of additional
corporate governance structures will be given further
consideration.
The Company’s website at www.platinaresources.com.au
contains a corporate governance section that includes copies of
the Company’s corporate governance policies.
Roles and Responsibilities of the Board and Management
ASX CGC Principle 1
Lay solid foundations for management and oversight.
Role of the Board
The Board of Directors is pivotal in the relationship between
shareholders and management and the role and responsibilities
of the Board underpin corporate governance.
The Board is committed to administering the policies and
procedures with openness and integrity, pursuing the true spirit
of corporate governance commensurate with the Group’s needs.
Generally, the powers and obligations of the Board are governed
by the Corporations Act and the general law.
Without limiting those matters, the Board expressly considers
itself responsible for the following:
•
•
•
•
•
•
•
•
•
Ensuring compliance with the Corporations Act, ASX Listing
Rules (where appropriate) and all relevant laws;
Oversight of the Group including its framework of control
and accountability systems to enable risk to be assessed
and managed;
Appointing and removing the chief executive officer;
Ratifying the appointment and, where appropriate, removal
of senior executives including the chief financial officer and
the Group secretary;
Input into and final approval of management’s development
of corporate strategy and performance objectives;
Monitoring
implementation of strategy;
senior
executive’s
performance
and
Ensuring appropriate resources are available to senior
executives;
Approving and monitoring the progress of major capital
expenditure, capital management and acquisitions and
divestitures;
Approving and overseeing Committees where appropriate
to assist in the Board’s function and powers.
PGM Annual Report for the year ended 30 June 2020
70
The Functions, Powers and Responsibilities of the Board are
set out in the Company’s Corporate Governance Charter which
is available from the corporate governance section of the
Group’s website.
The board meets on a regular basis to review the performance
of the Company against its goals both financial and non-
financial. In normal circumstances, prior to the scheduled board
meetings, each board member is provided with a formal board
package containing appropriate management and financial
reports.
Appropriate background checks are conducted on proposed
new directors and material information about a director being
re-elected is provided to security holders.
Due to the size of the Board and the nature of its business, it
has not been deemed necessary to institute a formal
documented performance review program of individuals. The
Chairman conducted an informal review during the financial
year whereby the performance of the Board as a whole and the
individual contributions of each director were discussed. The
Board considers that at this stage of the Company’s
development an informal process is appropriate.
Board Composition
ASX CGC Principle 2
Structure of the Board to add value
Nomination Committee
Written agreements are entered in to with directors and senior
management clearly setting out their roles and responsibilities.
Recommendation 2.1 requires the Board to establish a
nomination committee.
The company secretary works directly with the chair and the
managing director on the functioning of all board and
committee procedures.
Diversity
The Group is committed to workplace diversity and ensuring a
diverse mix of skills amongst its directors, officers and
employees.
Recommendation 1.5 requires that listed entities should
establish a policy concerning diversity. Whilst the Group does
not currently have a Diversity policy due to its size and nature
of its operations, it strives to attract the best person for the
position regardless of gender, age, ethnicity or cultural
background.
As at 30 June 2020, the proportion of women in the whole
organisation is as follows:
Board Members
Officers
Other
Performance Evaluation
Male
100%
100%
100%
Female
0%
0%
0%
The Board (in carrying out the functions of the Remuneration
and Nomination Committees) considers remuneration and
nomination issues annually and otherwise as required in
conjunction with the regular meetings of the Board.
Although the Board has adopted a Nominations Committee
Charter, the Board has not formally established a Nominations
Committee as the Directors consider that the Company is
currently not of a size nor are its affairs of such complexity as
to justify the formation of this Committee. The Board as a
whole is able to address these issues and is guided by the
Nominations Committee Charter. The Company will review this
position annually and determine whether a Nominations
Committee needs to be established.
The Nomination Committee Charter is set out in the Company’s
Corporate Governance Charter which is available from the
corporate governance section of the Group’s website.
The Company is developing an appropriate board skills matrix.
The skills, experience and expertise relevant to the position of
each director who is in office at the date of the Annual Report
is detailed in the director’s report.
Corporate Governance Council Recommendation 2.4 requires a
majority of the Board to be independent Directors. The
Corporate Governance Council defines independence as being
free from any interest, position, association or relationship that
might influence, or reasonably be perceived to influence, in a
material capacity to bring independent judgement to bear on
issues before the board and to act in the best interests of the
entity and its security holders generally.
In the context of Director independence, “materiality” is
considered from both the Group and the individual Director
perspective. The determination of materiality requires
consideration of both quantitative and qualitative elements. An
item is presumed to be material (unless there is qualitative
PGM Annual Report for the year ended 30 June 2020
71
evidence to the contrary) if it is equal to or greater than 10% of
the appropriate base amount.
Limited due to their considerable industry and corporate
experience.
Qualitative factors considered included whether a relationship is
strategically important, the competitive landscape, the nature of
the relationship and the contractual or other arrangements
governing it and other factors which point to the actual ability of
the Director in question to shape the direction of the Group.
In accordance with the Council’s definition of independence
above and the materiality thresholds set, the Directors listed
below are not considered to be independent and therefore the
Group does not currently comply with Recommendation 2.4:
Name
Position
Corey Nolan
Managing
Director
Brian Moller
Non-Executive
Director
Reason for non-
compliance
Mr Nolan was employed
by the Group in an
executive capacity from
his appointment date of
1 August 2018.
Mr Moller is a principal
of a material
professional advisor to
the Group.
The Group’s Non-Executive Directors, John Anderson and Chris
Hartley are considered independent.
Platina Resources Limited considers industry experience and
specific expertise, as well as general corporate experience, to be
important attributes of its Board members. The Directors noted
above have been appointed to the Board of Platina Resources
The term in office held by each Director in office at the date of
this report is as follows:
Name
Brian Moller
Corey Nolan
Term in Office
14 years 7 months
2 years 2 months
Christopher Hartley
3 years 9 months
John Anderson
2 years 5 months
Directors have the right to seek independent professional advice
in the furtherance of their duties as directors at the Group’s
expense. Written approval must be obtained from the chair prior
to incurring any expense on behalf of the Group. Informal
induction is provided to any new directors.
Act Ethically and Responsibly
ASX CGC Principle 3
Code of Conduct
The Directors are subject to certain stringent legal requirements
regulating the conduct both in terms of their internal conduct as
directors and in their external dealings with third parties both on
their own and on behalf of the Group.
To assist directors in discharging their duty to the Group and in
compliance with relevant laws to which they are subject, the
Group has adopted a Corporate Ethics Policy and Corporate
Code of Conduct within its Corporate Governance Charter.
The Corporate Ethics Policy sets out rules binding Directors in
respect of:
• a Director’s legal duties as an officer of the Company;
• a Director’s obligations to make disclosures to the ASX and
the market generally; and
• dealings by Directors in shares in the Company.
The Corporate Ethics Policy, as set out in the Company’s
Corporate Governance Charter is available from the corporate
governance section of the Group’s website.
PGM Annual Report for the year ended 30 June 2020
72
Safeguard Integrity in Corporate Reporting
ASX CGC Principle 4
Audit Committee
The Group ensures that its external auditors are present at the
AGM to answer any questions with regard to the efficacy of the
financial statement audit and the associated independent audit
report.
The Company does not have an audit committee. The Board
considers that the Company is not currently of a size, nor are its
affairs of such complexity, to justify the formation of separate or
special committees at this time. The Board as a whole is able to
address the governance aspects of the full scope of the
Company’s activities and to ensure that it adheres to
appropriate ethical standards. In particular, the full Board
considers those matters that would usually be the responsibility
of an audit committee. The Board considers that no efficiencies
or other benefits would be gained by establishing a separate
audit committee.
External Auditors
The Company requires external auditors to demonstrate quality
and independence. The performance of the external auditor is
reviewed and applications for tender of external audit services
are requested as deemed appropriate, taking into consideration
assessment of performance, existing value and tender costs. It
is Bentley’s policy to rotate audit engagement partners on listed
companies at least every 5 years.
Certification of financial reports
The Managing Director has made the following certifications to
the Board:
• That the Group’s financial reports are complete and present
a true and fair view, in all material respects, of the financial
position and performance of the Group and are in
accordance with relevant accounting standards;
• The integrity of the reports is founded on a sound system of
financial risk management and internal compliance and
control.
The Company Secretary has made the following certifications to
the Board:
• That the Group’s financial reports are complete and present
a true and fair view, in all material respects, of the financial
position and performance of the Group and are in
accordance with relevant accounting standards;
• The integrity of the reports is founded on sound system of
financial risk management and internal compliance and
control.
Continuance Disclosure
ASX CGC Principle 5
Make timely and balanced disclosure
The Group duly complies with ASX and ASIC requirements for
the timely and accurate reporting of the Group’s financial
activities, thus ensuring that the Group has disclosed all
information that has a material impact on shareholders. This
includes the Annual Financial Report, Interim Financial Report,
quarterly cash flows, new and relinquished tenements and
changes in directors and shareholder interests and other events
that are identified to be material. All ASX announcements are
available on the Group’s website.
The Company Secretary is responsible for communication with
the ASX, including responsibility for ensuring compliance with
the continuous disclosure requirements of the ASX Listing
Rules and oversight of information distributed to the ASX.
Respect the Rights of Security Holders
ASX CGC Principle 6
The Board of directors undertakes to ensure that shareholders
are informed of all major developments affecting the Group.
Information is communicated to shareholders through the
annual report, interim financial report, announcements made to
the ASX, notices of Annual General and General Meetings, the
AGM and General Meetings.
The Board encourages full participation of shareholders at
Annual and General Meetings to ensure a high level of
accountability and identification with the Group’s direction,
strategy and goals. In particular, shareholders are responsible
for voting on the re-election of directors.
The Group also offers shareholders the option to receive ASX
announcements and other notices from the Company
electronically.
PGM Annual Report for the year ended 30 June 2020
73
Risk Management
ASX CGC Principle 7
Recognise and manage risk
Although the Board has adopted an Audit and Risk Committee
Charter, the Board has not formally established an Audit and
Risk Committee as the Directors consider that the Company is
currently not of a size nor are its affairs of such complexity as to
justify the formation of this Committee.
The Board is considered to have sufficient technical, legal and
industry experience in the context of the Company’s affairs to
properly assess the risks facing the Group. The Company
believes that given the size and nature of its operations, non-
compliance by the Company with Recommendation 7.1 will not
be detrimental to the Company. The Company will review this
position annually and determine whether an Audit and Risk
Committee needs to be established.
The Company has developed a basic framework for risk
management and internal compliance and control systems
which cover organisational, financial and operational aspects of
the Company’s affairs.
Recommendation 7.2 requires that the Board review the
Company’s risk management framework and disclose whether
such a review has taken place. Business risks are considered
regularly by the Board and management at management and
Board meetings. A formal report to the Board as to the
effectiveness of the management of the Company’s material
business risks has not been formally undertaken.
The Audit and Risk Management Committee Charter is set out in
the Company’s Corporate Governance Charter which is available
from the corporate governance section of the Group’s website.
The Company does not have a separate internal audit function.
The board considers that the Company is not currently of the
size or complexity to justify a separate internal audit function,
and that appropriate internal financial controls are in place. Such
controls are monitored by senior financial management and the
Audit and Risk Committee.
The Director’s Report sets out some of the key risks relevant to
the Company and its operations. Although not specifically
defined as such, the risks include economic, environmental and
social sustainability risks. As noted above, the Company
regularly reviews risks facing the Company and adopts
appropriate mitigation strategies where possible.
Remuneration
ASX CGC Principle 8
Remunerate fairly and responsibly
Remuneration Committee
The Board previously had established a Remuneration
Committee that operated under a charter approved by the
Board. The Board decided that given the size and scale of
operations, the full Board would undertake the roles previously
undertaken by the Remuneration Committee.
The Board is considered to have sufficient legal, corporate,
commercial and industry experience in the context of the
Company’s affairs to properly assess the remuneration issues
required by the Group. The Company believes that given the
size and nature of its operations, non-compliance by the
Company with Recommendation 8.1 will not be detrimental to
the Company.
It is the Company’s objective to provide maximum stakeholder
benefit from the retention of a high quality Board and Executive
team by remunerating directors and key executives fairly and
appropriately with reference to relevant employment market
conditions. To assist in achieving this objective, the Board links
the nature and amount of executive director’s and officer’s
remuneration to the Group’s financial and operations
performance. The expected outcomes of the remuneration
structure are:
•
retention and motivation of key Executives
• attraction of quality management to the Group
• performance incentives which allow executives,
management and staff to share the rewards of the success
of Platina Resources Limited.
For details on the amount of remuneration and all monetary
and non-monetary components for Key Management Personnel
during the period, please refer to the Remuneration Report
within the Directors’ Report. In relation to the payment of
bonuses, options and other incentive payments, discretion is
exercised by the Board, having regard to the overall
performance of Platina Resources Limited and the performance
of the individual during the period.
There is no scheme to provide retirement benefits to directors
other than statutory superannuation.
The Remuneration Committee Charter is set out in the
Company’s Corporate Governance Charter which is available
from the corporate governance section of the Group’s website.
PGM Annual Report for the year ended 30 June 2020
74
Remuneration Policy
The Group’s remuneration policy is also further detailed in the
Remuneration Report in the Directors Report.
Non-Executive Director Remuneration
Non-executive directors are remunerated at market rates for
time, commitment and responsibilities. Non-executive directors
are remunerated by fees as determined by the Board with the
aggregate directors’ fee pool limit of $250,000, as listed on 29
May 2006. The maximum aggregate amount of fees that can
be paid to non-executive directors is subject to approval by
shareholders at the Annual General Meeting. Independent
consultancy sources provide advice, as required; ensuring
remuneration is in accordance with market practice. Fees for
non-executive Directors are not linked to the performance of the
Group. However, to align Directors’ interests with shareholders
interests, the Directors are encouraged to hold shares in the
Company and are, subject to approval by shareholders,
periodically offered options and/or performance rights.
The Company has adopted a Trading Policy that includes a
prohibition on hedging, aimed at ensuring participants do not
enter into arrangements which would have the effect of limiting
their exposure to risk relating to an element of their
remuneration.
Other Information
Further information relating to the Group’s corporate
governance practices and policies has been made publicly
available on the Group’s web site.
PGM Annual Report for the year ended 30 June 2020
75