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2023 ReportPGM Annual Report for the year ended 30 June 2021 CONTENTS Chairman’s Letter to Shareholders Review of Operations Xanadu Project Challa Project Mt Narryer Project Munni Munni Project Platina Scandium Project Skaergaard Project Blue Moon Project References to Previous ASX Releases Annual Mineral Resources and Ore Reserves Statement 3 4 5 8 9 10 11 13 14 15 16 Tenement Interests Directors’ Report Auditor’s Independence Declaration Consolidated Financial Statements Notes to the Consolidated Financial Statements for the year ended 30 June 2021 Declaration by Directors Independent Audit Report to the members of Platina Resources Limited Shareholder Information 1 18 19 30 31 35 61 62 67 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 2021 2 Platina Resources Limited is a mineral resources exploration and development company listed on the Australian Securities Exchange (ASX:PGM). The company controls a portfolio of precious, speciality and base metal projects and investments at various stages of development. Shareholder value is created by advancing these projects through exploration, feasibility, and permitting, and monetising through either sale, joint venture or development. PGM Annual Report for the year ended 30 June 2021 3 CHAIRMAN’S LETTER TO SHAREHOLDERS In between times we put in an application for a gold exploration licence at Mt Narryer in Western Australia. Like Challa, it’s located in the Yilgarn Craton which has been a prodigious gold producing province. By the end of 2020, the company had also taken a major stake in Nelson Resources (ASX:NES), a Western Australian gold explorer whose flagship Woodline Project is also located in the Yilgarn Craton. Our shift into a more material gold portfolio was met favourably by the market with our cash position strengthened by two share placements. In November 2020, Platina sold its Skaergaard Project in Greenland to Canadian-listed Major Precious Metals Corp (CSE:SIZE) for A$0.52 million in cash and 55 million Major shares which peaked at C$0.74c per share in April 2021. These shares may be sold over time to fund our activities. A month later we withdrew from our joint venture with Canadian listed Blue Moon Zinc Corporation (TSXV:MOON) following the prolonged suspension of field activities due to COVID-19. At our scandium project in New South Wales, we continue to explore new technologies and initiatives to improve the overall economics which will support the company’s campaign to secure production offtake agreements and enable project financing. Platina’s Australian assets together with our exploration investment portfolio offers shareholders exposure to a broad range of metals across a number of jurisdictions at different lifecycle stages. There’s a strong pipeline of news flow ahead and we look forward to this financial year with a robust balance sheet. 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 A year ago, the coronavirous pandemic started turning the world upside down making it challenging for most resources companies but particularly for a global player like Platina with two major projects abroad. As international travel and lockdown restrictions escalated, the company didn’t curse the dark, it lit a candle and redirected its focus away from overseas territories to Australia. Our home country has been a prolific and proven producer of gold and it’s a good commodity to be in when financial markets are troubled. For these reasons, we spent this financial year building an Australian gold portfolio. We had an early win in June 2020 when we acquired a 100% interest in the Challa Gold Project between the prolific Mt Magnet and Sandstone gold districts in Western Australia. We were boots on the ground by November collecting rock chips and soil samples with a view to be drilling the project by the end of calendar 2021. In April, Platina expanded its gold presence in the West after acquiring the Xanadu Gold project located in the Ashbuton Province in close proximity to the multi-million ounce Mt Olympus gold deposit. In August 2021, the company announced the start of a geophysical Induced Polarisation survey at Xanadu that will cover a 7km target zone in the north-west of the tenement. Drilling is targeted by calendar year end. PGM Annual Report for the year ended 30 June 2021 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. In response to the global coronavirus epidemic in early 2020, Platina redirected its project development focus away from overseas territories to Australia as international travel and lockdown restrictions escalated. Throughout the year, Platina continued to implement its newly developed strategy to focus on precious metal exploration in Western Australia. The new strategy reflects: • The high geological prospectivity of Western Australia, especially the Yilgarn Province which is host to a large number of world class deposits • Access to world class infrastructure throughout Western Australia including roads, rail, ports, water and power. In addition, the state has a large pool of highly skilled workers and technical professionals • A robust tenure system and streamlined process for projects and approvals and permitting • The strong price performance of gold, palladium, platinum and rhodium in recent years Furthermore, Platina believes significant value can be generated through discovery and progressing projects along the exploration value curve towards drilling and then feasibility assessment. Throughout the year, new gold project acquisitions were completed at Challa and Mt Narryer in the Yilgarn Craton, and Xanadu in the Ashburton Basin. The primary focus of our exploration activities is to advance projects towards drilling as quickly as possible. In June 2020, Platina signed a conditional sale agreement for the project with Canada’s Major Precious Metals (CSE:SIZE). The transaction was completed in December 2020 resulting in Platina receiving $C0.5 million cash and 55 million Major shares. In January 2021, Platina sold six million Major shares and received cash of $A2.75 million. The economic environment for securing offtake agreements and joint venture partners for the Platina Scandium Project remains challenging. Platina has tackled this challenge by completing an in-depth scandium market assessment to identify suitable target industries and markets where scandium’s potential can be realised. Following the finalisation of a legal dispute with our joint venture partner at Munni Munni, progress is being made towards identyfing the optimal path forward for the project to realise value for our shareholders. This was further supported by encouraging drilling results for a short program in June 2021, which highlighted the potential of the project to be one of the few palladium, platinum, gold and rhodium deposits in Australia. Figure 1 Platina’s gold exploration tenements in Western Australia PGM Annual Report for the year ended 30 June 2021 5 XANADU GOLD PROJECT Target: Gold, Western Australia Ownership: Platina 100% Tenements: E 52/3692, P 52/1592. P 52/1593. P 52/1594, P 52/1595, P 52/1596, P 52/1597, P 52/1598, E 52/3711, E 52/3758, E 52/3763, E 52/3764 During the period, Platina expanded its gold presence in Western Australia by acquiring the Xanadu Gold Project, located in the Ashburton Basin in close proximity to the multi-million ounce Mt Olympus gold deposit explored by ASX-listed Kalamazoo Resources Limited (ASX: KZR) (www.kzr.com.au). Xanadu is located within a large alteration system hosted within sediments and carbonates prospective for intrusion related gold mineralisation such as the Telfer Gold Mine (Newcrest) and the Hemi discovery (De Grey Mining). The project also displays strong similarities to the Carlin gold deposits in Nevada, USA. Xanadu comprises seven prospecting licences and five exploration licences covering 498km2. Logistics and operations are expected to be low cost with access to the project from the regional mining centre of Paraburdoo 38km to the north. Whilst we believe there is significant potential to expand upon the known oxide mineralisation, the longer term prize is targeting primary mineralisation within the alteration core of the system which has never been tested by historical drill programs. Xanadu has been the subject of a number of mainly shallow drilling programs and a historical gold heap leach operation. The project has immense appeal given the number and width of economic grade gold drill intercepts which have never been followed up with a systematic exploration campaign. The exploration strategy will initially comprise low-cost geophysics and geochemistry to build a deeper knowledge of the geological potential of the project and to define both shallow and deeper targets for drilling. Platina believes the project offers significant upside due to: • A favourable regional scale structural setting, with the multi- million ounce Mt Olympus gold deposit situated 7km to the east • Widespread gold mineralisation identified within a large and intense hydrothermal alteration system which extends for over 10km in strike extent Hole_ID From Intercept (g/t Au) East North Dip Azi PNS47 28-30m 2m @ 22.6g/t Au 584999 7406888 -60 360 WDNS7 16-21m 5m @ 8.71g/t Au 581305 7408478 -60 360 WDNS9 26-27m 1m @ 70.00g/t Au 584983 7406871 -53 360 PNS359 102-104m 12m @ 5.05g/t Au 584219 7407130 -90 n/a PNS414 18-20m 2m @ 18.30g/t Au 585001 7406896 -60 029 PNS496 6-16m 10m @ 4.26g/t Au 581357 7408570 -60 029 PNS475 40-48m 8m @ 5.06g/t Au 584324 7407189 -60 209 CS028 16m-36m 20m @ 2.25g/t Au 585017 7406904 CS044 20m-30m 10m @ 2.44g/t Au 584976 7406870 CS070 29m-30m 1m @ 31.50g/t Au 584982 7407004 XRC016 0-56m 56m @ 0.94g/t Au 581395 7408533 -90 -90 -90 -90 n/a n/a n/a n/a including 17-28m 11m @ 5.32g/t Au XRC017 12-20m 8m @ 3.1g/t Au 581214 7408550 -90 n/a XRC057 75-88m 13m @ 4.08g/t Au 586251 7406378 -60 028 EOH Prospect 67.5m Caesar 29.6m Claudius 250m Caesar 114m Amphitheatre 55m Caesar 43m Claudius 51m Claudius 40m Caesar 40m Caesar 40m Caesar 93m Claudius 100m Claudius 204m Claudius Drill Type Percussion Diamond core Diamond core Percussion Percussion Percussion Percussion RC RC RC RC RC RC Table 1 Selected Drill Hole Intercepts PGM Annual Report for the year ended 30 June 2021 6 • The host lithology, the Duck Creek Dolomite, is a highly reactive rock and favourable host to the target intrusion related and Carlin styles of gold mineralisation • Immediate targets from surface and at depth within the interpreted east plunging alteration system Key terms of the Agreements, included: • Payment of $300,000 in cash and the issuance of 675,000 Platina ordinary shares priced at 5.3c per share on signing of the Sale and Purchase agreement; • At the 12 month anniversary of the Sale and Purchase agreement, Platina has an option to extend the agreement by issuing a further $925,000 of Platina ordinary shares at 5.3c per share to the Vendors. If the option is not exercised the Vendors can buy the tenements back for one dollar; • A milestone payment of $200,000 on reporting of a JORC (2012) Mineral Resource of 100,000oz of gold; • A 1% gross gold royalty is payable on any gold produced from the Prospecting Licenses and a further 1% new smelter royalty payable on all the tenements. Platina can buy back 50% of the net smelter royalty for $1 million; and • If tenements E 52/3763 and E 52/3764 are not formally granted, Platina can reduce the final share consideration by $125,000 per tenement Subsquent to the end of the period, Platina acquired a new tenement increasing the total tenement package size to 568km2. Figure 3 Xanadu location and tenure summary PGM Annual Report for the year ended 30 June 2021 7 Figure 4 Location of the geophysics program (announced subsequent to the end of the period) and historical drilling intersections. Figure 5 Historical open cut workings, heap leach pad and ore stockpiles at Xanadu. PGM Annual Report for the year ended 30 June 2021 8 CHALLA PROJECT Target: Gold, Western Australia Ownership: Platina 100% Tenements: EL58/552 and EL58/553 In June 2020, Platina acquired a 100% interest in the Challa Gold Project located 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 provides 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 – the 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. During the year, more than 4,000 soil samples were assayed to define a number of prospective anomalies. The soil sampling programs have been significanlty disrupted by abnormally high levels of rainfall. These anomalies have now been infilled, soil sampled and assays are pending. Once heritage clearance is finalised, an air-core drilling program will be completed to identify bedrock anomalies for deeper drilling. Figure 2 Location of Challa Gold Project in Western Australia PGM Annual Report for the year ended 30 June 2021 9 MT NARRYER PROJECT Target: Gold and Platinum Group Metals, Western Australia Ownership: Platina 100% Tenements: E 09/2423 Platina has applied for an exploration licence (E 09/2423) at Mt Narryer South, 580km north of Perth and 300km north- west of the company’s recently acquired Challa Gold Project. The exploration licence application covers 165km2 and, like Challa, is located within the Yilgarn Craton. The Mt Narryer area has not undergone intensive mineral exploration in the past due to the lack of outcropping ‘greenstones’ that have hosted most of the main gold and base metal deposits discovered to date in Western Australia. However, Chalice Gold Mines (ASX: CHN) at their Julimar nickel- copper-PGE project has shown that a re-interpretation of the regional geology along with aeromagnetics can yield substantial new mineral deposits. Earlier geochemical sampling in 2010 of only nine rock chip samples by Athena Resources returned assays of up to 48 parts per billion gold (ppb Au) offering encouragement that the district hosts gold mineralisation. The Exploration Licence straddles the Carnarvon-Mullewa Road and is 20km north of the Murchison township, providing easy access and accommodation for the field crews. Administration bottlenecks have delayed the granting of the prospect but Platina has planned a soil sampling program ahead of an expected grant by the end of calendar 2021. Figure 6 The Mt Narryer tenement is located in the Yilgarn Craton. PGM Annual Report for the year ended 30 June 2021 10 MUNNI MUNNI PROJECT Target: Palladium, Platinum, Gold and 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 64km2. 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. An exploration and drilling program during the period at the Munni Munni Project near Karratha in Western Australia confirmed the project as one of Australia’s largest undeveloped palladium deposits with endowments of platinum, gold and rhodium. A Reverse Circulation (RC) drilling program comprised 15 drill holes for 2,740 metres spread through the entire upper portion of the mineralisation, to a maximum depth of 250 metres, included the following results: • 9m @ 1.67g/t 2PGE + Au (1.04g/t Pd, 0.54g/t Pt, 0.09g/t Au) from 117m, 21MMRC002; • 5m @ 2.34g/t 2PGE + Au (1.2g/t Pd, 0.886g/t Pt, 0.25g/t Au) from 108m, 21MMRC003; • 3m @ 2.61g/t1 2PGE + Au (1.23g/t Pd, 1.11g/t Pt, 0.27g/t Au) from 81m, 21MMRC004; • 7m @ 2.20g/t 2PGE + Au (1.46g/t Pd, 0.67 g/t Pt, 0.07g/t Au) from 124m, 21MMRC005; • 7m @ 2.35g/t 2PGE + Au (1.33g/t Pd, 0.84 g/t Pt, 0.18g/t Au), from 96m, 21MMRC006; • 4m @ 2.45g/t 2PGE + Au (1.31g/t Pd, 0.85g/t Pt, 0.29g/t Au) from 60m, 21MMRC007; • 5m @ 2.35g/t 2PGE + Au (1.36g/t Pd, 0.68g/t Pt, 0.31g/t Au) from 75m, 21MMRC008; • 4m @ 2.87g/t 2PGE + Au (1.76g/t Pd, 0.89g/t Pt, 0.22g/t Au) from 115m, 2MMRC010; • 3m @ 2.06g/t 2PGE + Au (1.18g/t Pd, 0.69g/t Pt, 0.19g/t Au) from 142m, 21MMRC011 • 5m @ 1.92g/t 2PGE + Au (1.2g/t Pd, 0.52g/t Pt, 0.2g/t Au) from 89m, from 89m, 21MMRC012 • 4m @ 1.69g/t 2PGE + Au (0.98g/t Pd, 0.58g/t Pt, 0.13g/t Au) from 104m, 21MMRC013. Amid significant increases in the price of palladium, gold and rhodium during 2021, the positive drill results have enhanced the number of options available to create value from the project and also take it a step closer towards completing a JORC 2012 compliant resource. A formal joint venture has also been executed with Artemis and we are now working to identify how we best extract the most value from the project for our shareholders without losing focus on our respective core assets. The signing of the formal joint venture agreement follows finalisation of legal proceedings with Artemis and its subsidiaries Karratha Metals Pty Ltd (Karratha) and Munni Munni Pty Ltd (MMPL) in the Supreme Court of Western Australia (CIV 1774 of 2020) (Proceedings). Platina brought the Proceedings as it considered that: 1. Artemis and MMPL were unable to proceed with contractual arrangements they had entered into with UK, AIM listed company Empire Metals Limited (Proposed Transaction) as MMPL was not a party to a Heads of Agreement entered into between Platina, Karratha and Artemis dated 4 August 2015 (Heads of Agreement); and 2. each of Artemis, Karratha and MMPL had breached the terms of the Heads of Agreement by reason of the Proposed Transaction. Platina advised that the Court delivered its judgment in the Proceedings on 23 February 2021 and, whilst it was unable to find that there had been a breach of the Heads of Agreement, it accepted Platina’s application for declaratory relief, declaring that: 1. MMPL is not a party to the Heads of Agreement, or the Joint Venture Agreement established by and under the Heads of Agreement; and 2. the parties to the Joint Venture remain Platina and Karratha. Additionally, the Court ordered that Artemis, Karratha and MMPL pay 70 per cent of Platina’s costs of the Proceedings from 26 October 2020 onwards. PGM Annual Report for the year ended 30 June 2021 11 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 2 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. To assist in market development activities, Platina commissioned CM Group to update the scandium market study previously prepared for the 2018 DFS. CM Group’s 2021 Independent Scandium Market Report highlighted increasing opportunities in the scandium market, which offer the potential to be significantly larger and more diverse if scandium oxide can be converted into value added, higher- margin and more readily saleable products like master alloy (see Figure 8). With PSP construction dependent on an offtake agreement to facilitate financing, the report also provides a growing list of potential off-takers and industry players that can be targeted for investment amid new applications, lower prices and greater supply security. Historically, the combination of high prices and concerns over supply security have prevented the large-scale adoption of Figure 7 Platina Scandium Project location aluminium scandium alloys in the aluminium industry. Applications have been limited to a number of smaller niche markets where the cost is less sensitive. This is despite strong evidence that aluminium scandium alloys appeal as a lightweight, high strength alloy with excellent weldability characteristics. Aluminium scandium alloys also provide opportunities to reduce the carbon footprint through weight reductions and improved fuel efficiencies. While the solid oxide fuel cell industry has been the dominant consumer of scandium in recent years, the metal’s greatest opportunity is as an aluminium alloy targeting aerospace, marine, military and automobile industries. The recent entry into the scandium market by companies with significant aluminium business units provides a genuine opportunity for the aluminium scandium alloy sector to expand rapidly. However, new pure play scandium projects like the PSP which offer stable sources of non-by-product supply will be needed to support and stimulate further demand growth in the future. PGM Annual Report for the year ended 30 June 2021 12 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 2 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 Figure 8 The estimated trigger prices for a wide variety of potential applications. Source CM Group PGM Annual Report for the year ended 30 June 2021 13 SKAERGAARD PROJECT Target: Palladium, Platinum and Gold, Greenland Interest: Platina – 49 million shares held in Major Precious Metals The Skaergaard Project, located on the east coast of Greenland, hosts one of the world’s largest undeveloped gold and palladium resources outside of Russia and South Africa. 2021, Platina sold six million SIZE shares and received cash of A$2.75 million. Platina retains 49 million shares in SIZE and its value at 30 June 2021 was $A17.64 million. In March 2020, Platina commenced a sale process with Canada’s Major Precious Metals (CSE:SIZE) to acquire the Skaergaard project in Greenland. The process was completed in November 2020. Platina became a large shareholder in Major having received C$0.5 million cash and 55 million SIZE shares. In January Major’s focus is advancing the Skaergaard Project towards development. Following the disclosure of a Mineral Resource Estimate in accordance with Canadian NI 43-101 Standards in May 2021, a major drilling program was completed in August and September 2021 and assay results are pending. Figure 9 Skaergaard Project location PGM Annual Report for the year ended 30 June 2021 14 BLUE MOON PROJECT Target: Zinc, Copper, Gold, California, United States of America Interest: Platina – 6 million shares held in Blue Moon Zinc Corporation 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, TSXV:MOON), by subscribing to shares for C$300,000. In December 2020, Platina withdrew from its joint venture with BMZ following the prolonged suspension of field activities at the Blue Moon Project in the United States due to the coronavirus pandemic. Platina retain its six million shares in BMZ and maintains that the Blue Moon Project has significant potential to grow the size of the resource with further drilling. Platina completed a short drilling program in late 2019 and reported a number of significant intersections of zinc, copper, gold and silver. BMZ has recently raised some new funding and is planning to commence a resource expansion drilling program towards the end of calendar year 2021. Figure 10 Drill core being surveyed at the Blue Moon Project. PGM Annual Report for the year ended 30 June 2021 15 REFERENCES TO PREVIOUS ASX RELEASES 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 June 2020 • 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 • Platina builds gold presence in Western Australia, 4th April 2021 • Platina moves closer to maiden drilling program at the Challa Gold Project, 31 March 2021 • Munni Munni RC drill results and formation of Formal Joint Venture with Platina Resources Limited, 5 July 2021 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 to 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. PGM Annual Report for the year ended 30 June 2021 16 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 2021 17 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 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 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 to 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. Competent Person Statement 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 suitably 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 2021 18 TENEMENT INTERESTS Platina Resources Limited held the following interests in tenements as at 27 September 2021: Tenement ID EL58/552 EL58/553 E09/2423 M47/123 M47/124 M47/125 M47/126 E47/3322 EL7644 EL52/3711 EL52/3758 EL52/3763 EL52/3764 EL52/3692 PL 52/1592 PL 52/1593 PL 52/1594 PL 52/1595 PL 52/1596 PL 52/1597 PL 52/1598 Area Challa Challa Mt Narryer South Munni Munni Munni Munni Munni Munni Munni Munni Munni Munni Owendale Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Peak Hill – Ashburton Basin Location WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia NSW, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia WA, Australia Ownership % Ownership PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM PGM 100 100 Not granted 30* 30* 30* 30* 30* 100 100 100 Not granted Not granted 100 100 100 100 100 100 100 100 * In August 2015, Platina entered into an agreement with Artemis Resources Limited (Artemis) under which Artemis could earn a 70% interest in the Munni Munni Platinum Group Elements Project, comprising M47/123, 124, 125, 126 and E47/3322 (the “Munni Munni Project”) by expending $750,000 over a 3-year period. In August 2018, the Company announced that Artemis satisfied the conditions required to acquire a 70% interest. The company is not party to any other farm-in or farm-out agreements. PGM Annual Report for the year ended 30 June 2021 19 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 2021 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) • Aus Tin Mining Limited (since 1 December 2006) - Chairman 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. During the past three years, Mr Nolan has also served as a director of the following ASX listed companies: • New Peak Metals Limited (formerly Dark Horse Resources • Elementos Limited (since 24 July 2009) Limited) (since 22 January 2003) • Tempest Minerals 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 2021 20 Christopher Hartley Non-Executive Director BSc; PhD; MIMMM; CEng; GAICD Paul Jurman Company Secretary – appointed 1 June 2016 B.Com, CPA Dr Hartley holds no other (ASX listed) directorships. Directors 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. 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. 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: Board No. of meetings held while in office Meetings attended 4 4 4 4 4 4 4 4 Brian Moller Corey Nolan Christopher Hartley John Anderson 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: Directors Ordinary shares Unlisted options Brian Moller Corey Nolan Christopher Hartley - 2,500,000 400,000 9,000,000 - 2,000,000 John Anderson 104,340 2,000,000 PGM Annual Report for the year ended 30 June 2021 21 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 profit / (loss) of the Group for the year, after provision (2020: income for ($2,222,886). to $20,062,559 tax, amounted 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. 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 2021 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. 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 2021/22 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 recurring 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. 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; • change in prices of listed investments and foreign currencies; • 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. PGM Annual Report for the year ended 30 June 2021 22 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. 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 2021 calendar year is focussed on projects located in Western Australia. REVIEW OF FINANCIAL CONDITION Capital structure As at 30 June 2020 the Company had 371,326,493 ordinary shares and 2,000,000 performance rights on issue. During the year ended 30 June 2021, the following shares were issued: • • • • In August 2020, the Company completed a private placement for 22.36 million shares to raise $894,400 (before costs) at $0.04 per share. 22.36 million free attaching options with a strike price of $0.10 expiring 16 October 2023 were issued to the placement participants, following shareholder approval received in October 2020; In August 2020, the Company completed the acquisition of a 100% interest in the Challa Gold Project and issued 10 million shares and paid $20,000; In August 2020, 400,000 performance rights owned by Mr Nolan vested as the performance conditions were satisfied and were exercised into 400,000 shares and the remaining 1,600,000 performance rights granted to Mr Nolan lapsed; In October 2020, the Company issued a total of 15,500,000 unlisted Options to the Directors of the Company and 2,000,000 options to the Company Secretary; • • • In January 2021,15.56 million shares and 4 million unlisted options at an issue price of $0.0001, exercisable at a price of $0.10 each and expiring 16 October 2023, were issued to nominees of Argonaut Limited as consideration for corporate advisory services provided to the Company in connection with the sale of the Skaergaard gold and palladium project in Greenland to Canadian-listed Major Precious Metals Corp; In June 2021, 12,735,849 shares were issued as initial share consideration for the right to earn 100% of the Xanadu Gold Project; and In June 2021, 2 million shares were issued to a consultant as a fee for introduction and advisory services related to the acquisition of the Xanadu Gold Project. As at 30 June 2021 the Company had 434,382,342 ordinary shares and 43,860,000 options on issue. As at the date of this report, there are no performance rights on issue. 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 the Review of Operations. 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. 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. PGM Annual Report for the year ended 30 June 2021 23 Business Results The prospects of the Group in progressing their exploration projects in Australia may be affected by a number of factors. These factors are similar to most exploration companies moving through the 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 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. • 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 liabilities 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 issues, in conjunction with specific environmental regulations applicable to each project, prior to commencing field exploration. Periodic reviews are undertaken once field exploration commences. • 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 improve 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. 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. Overleaf, 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: PGM Annual Report for the year ended 30 June 2021 24 Details of Key Management Personnel (i) Directors Brian Moller Corey Nolan Non-Executive Chairman Managing Director Christopher Hartley Non-Executive Director John Anderson Non-Executive Director 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. 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 2020 Annual General Meeting (AGM): – At the 2020 AGM, less than 2% of the votes received (excluding abstentions) did not support the adoption of the remuneration report for the year ended 30 June 2020. 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 PGM Annual Report for the year ended 30 June 2021 25 annum effective from their appointment date. Mr Moller, as Chairman, is entitled to a fee of $57,800 per annum. Non- executive Directors may also be remunerated for additional specialised services performed at the request of the Board. The remuneration of the non-executive Directors for the year ending 30 June 2021 and 30 June 2020 is detailed in Table 1 of this report. Managing Director’s 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 Remuneration consists of the following key elements: • 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 company-wide, 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 was 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 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 2021 and 30 June 2020 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. Structure 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 16 October 2020. 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 2021 26 Table 1: Remuneration details The following table details, in respect to the financial years ended 30 June 2021 and 2020, the components of remuneration for each key management person of the Group. Key Management Personnel Short term employee benefit Post- employment benefits Termination benefits Equity Salary & Fees Other Superannuati on/ retirement benefits Other Share- based payment Total % of Remuner- ation as Share- based payment Directors Brian Moller (Non-Executive Chairman) 2021 (i) 2020 (ii) Corey Nolan (Managing Director & CEO) 2021 (i), (iv) 2020 (iii) Christopher Hartley (Non-Executive Director) 2021 (i) 2020 (ii) John Anderson (Non-Executive Director) 2021 (i) 2020 Total, all specified Directors 2021 2020 $ 57,800 50,575 $ - - $ - - 228,310 120,000 21,690 254,249 50,000 40,925 50,000 40,925 - - - - - 18,001 4,750 3,888 4,750 3,888 386,110 120,000 31,190 386,674 - 25,777 $ $ $ % - - - - - - - - - - 56,623 114,423 8,531 59,106 49.5 14.4 196,557 566,557 34.7 (2,502) 269,748 - 45,298 100,048 8,531 53,344 45.3 16.0 45,298 100,048 45.3 - 44,813 - 343,776 881,076 14,560 427,011 PGM Annual Report for the year ended 30 June 2021 27 (i) (ii) In October 2020, following shareholder approval, 15.5 million options were issued as part of the remuneration package for the Company’s directors and the charge to the profit and loss account for the reporting period was $337,409. 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 previous reporting period was $17,062. The options expired unexercised on 31 December 2019. (iii) In August 2018, following shareholder approval, Mr Nolan was 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 for the reporting period was $6,366. 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 previous reporting period ended 30 June 2020. (iv) Following a performance review conducted by the Board it was resolved that Mr Nolan would be paid a cash bonus in recognition of his performance during the period. 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 2020 Granted as compensation Performance Rights Converted Net Change Other Balance 30 June 2021 Directors Brian Moller Corey Nolan (i) Christopher Hartley John Anderson Paul Jurman - - - 104,340 - Total 104,340 - - - - - - - 400,000 - - - - - - - - - - - 400,000 - 104,340 - 104,340 (i) 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 resulted in the issue of 400,000 ordinary fully paid shares. PGM Annual Report for the year ended 30 June 2021 28 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: Directors Brian Moller Corey Nolan Christopher Hartley John Anderson Total Balance 1 July 2020 Options Granted as compensation(i) Options Exercised / Expired Net Change Other - - - - - 2,500,000 9,000,000 2,000,000 2,000,000 15,500,000 - - - - - - - - - - Balance 30 June 2021 2,500,000 9,000,000 2,000,000 2,000,000 15,500,000 (i) In October 2020, following shareholder approval received at the general meeting of shareholders held on 16 October 2020, a total of 15.5 million options were issued to Mr Nolan (9 million options), Mr Moller (2.5 million options), Mr Hartley (2 million options) and Mr Anderson (2 million options). Unlisted Options Number granted Grant date Brian Moller Corey Nolan 2,500,000 16 October 2020 9,000,000 16 October 2020 Fair value per option at grant date $ $0.0226 $0.0211 Value of options at grant date $ Number vested at year end Last exercise date 56,623 2,500,000 16 October 2022 196,557 9,000,000 16 October 2022 Christopher Hartley 2,000,000 16 October 2020 $0.0226 45,298 2,000,000 16 October 2022 John Anderson 2,000,000 16 October 2020 $0.0226 45,298 2,000,000 16 October 2022 The Options were provided at no cost and expire on 16 October 2022. Performance Rights of Key Management Personnel The numbers of performance rights 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 2020 Performance Rights Granted as compensation Performance Rights Exercised / Expired Net Change Other Balance 30 June 2021 Directors Brian Moller Corey Nolan (i) 2,000,000 Christopher Hartley John Anderson Paul Jurman - - - Total 2,000,000 - - - - - - - (2,000,000) - - - (2,000,000) - - - - - - - - - - - - (i) 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 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. PGM Annual Report for the year ended 30 June 2021 29 CORPORATE GOVERNANCE The Board of the Company is responsible for the corporate governance of the Company and guides and monitors the business and affairs on behalf of the shareholders by whom they are elected and to whom they are accountable. The Company’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 followed the recommendations set by the ASX Corporate Governance Council during the reporting period. The Company has disclosed this information on its website at www.platinaresources.com.au/corporate- governance. The Corporate Governance Statement is current as at 30 June 2021, and has been approved by the Board of Directors. The Company’s website at www. platinaresources.com.au contains a corporate governance section that includes copies of the Company’s corporate governance policies. This report is signed in accordance with a resolution of the directors. Corey Nolan Managing Director Brisbane Date: 28 September 2021 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 A number of Key Management Personnel, or their related parties, held positions in other entities that result in them having control or significant influence over the financial or operating policies of these entities. Transactions between related parties are on normal commercial terms and conditions unless otherwise stated. • During the year ending 30 June 2021, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid legal fees by the Group of $298,230 (2020: $68,292). There was an amount of $7,500 payable at balance date. 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 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. NON-AUDIT SERVICES There have been no non-audit services provided by the Company’s auditor during the year (2020: Nil). AUDITOR’S INDEPENDENCE DECLARATION The lead auditor’s independence declaration for the year ended 30 June 2021 has been received and can be found on the following page. PGM Annual Report for the year ended 30 June 2021 30 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 2021 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 28 September 2021 PGM Annual Report for the year ended 30 June 2021 31 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2021 Note 30 June 2021 30 June 2020 $ $ Restated Revenue and other income Administration expenses Depreciation and amortisation expense Employee benefits expense Exploration costs expensed Foreign exchange loss Marketing expenses Occupancy expenses Professional services Share based payments expensed Net fair value gain / (loss) on fair value of equity investments Operating Profit / (Loss) Profit / (Loss) before income tax Income tax benefit/(expense) Net profit / (loss) for the year Other comprehensive income net of tax Total comprehensive profit / (loss) of year Earnings per share Basic profit / (loss) per share ($ per share) Diluted profit / (loss) per share ($ per share) The accompanying notes form part of these financial statements. 2 3 3 4 7 7 10,091,163 54,726 (204,514) (5,082) (391,383) (704,286) (561,783) (114,083) - (622,297) (389,073) 12,938,998 20,037,660 20,037,660 24,899 (349,013) (5,230) (249,335) (1,211,280) - (162,956) (1,994) (210,436) (73,973) (200,893) (2,410,384) (2,410,384) 187,498 20,062,559 (2,222,886) - - 20,062,559 (2,222,886) Cents 0.049 0.045 Cents (0.0072) (0.0072) PGM Annual Report for the year ended 30 June 2021 32 Consolidated Statement of Financial Position as at 30 June 2021 Note 30 June 2021 30 June 2020 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 8 9 13 10 11 Exploration and evaluation expenditure – acquisition costs 12 Other non-current assets Total Non-Current Assets TOTAL ASSETS Current Liabilities Trade and other payables Total Current Liabilities TOTAL LIABILITIES NET ASSETS Equity Issued capital Share-issue costs Share-based payments reserve Accumulated losses 13 14 15 16 $ 2,594,200 64,187 10,457 2,668,844 8,688 20,003,717 1,540,008 42,099 21,594,512 $ Restated 1,117,565 11,001 29,552 1,158,118 13,770 130,544 - 41,609 185,923 24,263,356 1,344,041 286,105 286,105 286,105 286,689 286,689 286,689 23,977,251 1,057,352 55,402,571 (3,135,853) 52,266,718 888,758 (29,178,225) 52,827,671 (3,064,820) 49,762,851 571,285 (49,276,784) TOTAL EQUITY 23,977,251 1,057,352 The accompanying notes form part of these financial statements. PGM Annual Report for the year ended 30 June 2021 33 Consolidated Statement of Changes in Equity For the Year Ended 30 June 2021 Share Capital Ordinary Share-based Payments Reserve Accumulated Losses $ $ $ Balance at 1 July 2019 47,668,551 552,459 (47,053,898) Issue of shares Share issue costs Performance rights and options expensed / issued 2,251,207 (156,907) - - - 18,826 - - - Total $ 1,167,112 2,251,207 (156,907) 18,826 Sub total 49,762,851 571,285 (47,053,898) 3,280,238 Total Comprehensive profit / (loss) - - (2,222,886) (2,222,886) Balance at 30 June 2020 49,762,851 571,285 (49,276,784) 1,057,352 Issue of shares Share issue costs Performance rights and options expensed / issued 2,538,900 (71,033) - - - 389,073 Performance rights converted 36,000 (36,000) - - - - Performance rights lapsed and adjusted to accumulated losses Issue of Options Sub total (36,000) 36,000 - - 52,266,718 888,758 (49,240,784) 3,914,692 400 - 400 Total Comprehensive profit / (loss) - - 20,062,559 20,062,559 Balance at 30 June 2021 52,266,718 888,758 (29,178,225) 23,977,251 The accompanying notes form part of these financial statements 2,538,900 (71,033) 389,073 - - PGM Annual Report for the year ended 30 June 2021 34 Consolidated Statement of Cash Flows For the Year Ended 30 June 2021 Cash Flows from Operating Activities Payments to suppliers and employees Interest received Other receipts Note 2021 $ 2020 $ (1,243,796) (1,085,887) 69 166,486 Net cash used in operating activities 18 (1,077,241) Cash Flows from Investing Activities Payments for purchase of investments Receipts from sale of investments Receipts from sale of exploration tenements - Greenland Exploration and evaluation expenditure – acquisition costs Exploration and evaluation expenditure Net cash provided by (used in) investing activities Cash Flows from Financing Activities Proceeds from issue of shares and options 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 (426,485) 2,739,801 521,594 (345,547) (753,691) 1,735,672 894,800 (71,403) 823,397 1,481,828 1,117,565 (5,193) 5,673 234,973 (845,241) (334,821) - - - (1,044,141) (1,378,962) 2,196,060 (151,242) 2,044,818 (179,385) 1,298,952 (2,002) Cash and cash equivalents at end of financial year 8 2,594,200 1,117,565 The accompanying notes form part of these financial statements. PGM Annual Report for the year ended 30 June 2021 35 NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 30 June 2021 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. 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). c. Going Concern The financial report for the year ended 30 June 2021 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 recorded a profit after tax of $20,062,559 for the year ended 30 June 2021 (2020: Loss $2,222,886) but this included a number of unrealised and ‘once-off’ transactions that are unlikely to recur, including a gain on the sale of Greenland tenements of $7,941,545 and Net fair value gains on equity investments of $12,938,998. The Group has experienced net operating and investing cash inflows of $658,431 (2020: outflows of 2,224,203) and continues to incur expenditure on its exploration projects drawing on its cash balances, without a consistent source of income. As at 30 June 2021, the Group had $2,594,200 (30 June 2020: $1,117,565) in cash and cash equivalents. During the period, the Company completed a non-brokered private placement for 22.36 million shares to raise $894,400 (before costs) at $0.04 per share. 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 financial assets comprising shares held in listed companies, sale of projects (valued at $20,003,717 at balance date) 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 commercialise 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. PGM Annual Report for the year ended 30 June 2021 36 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. 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 22. e. New standards and interpretations not yet adopted A number of new standards and interpretations are effective for annual reporting periods beginning after 1 July 2021 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 likely to be applicable to the Company. f. 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. g. 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. PGM Annual Report for the year ended 30 June 2021 37 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g. Property, Plant and Equipment (continued) 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. h. Leases 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. i. 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 below. 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 the 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. j. 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 2021 38 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k. Employee Benefits 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. 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. p. 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. l. Equity settled compensation q. Trade and Other Payables 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. m. 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. 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 paid within 30 days of reconciliation of the liability. r. 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. n. Revenue and Other income Key Judgements - Share Based Payments 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 control the income. o. Goods and Services Tax (GST) 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. 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. s. Foreign Currency Transactions and Balances Functional and presentation currency 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. PGM Annual Report for the year ended 30 June 2021 39 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) t. Government Grants s. Foreign Currency Transactions and Balances (continued) 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 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. To the extent that contributions or rebates are received from taxation authorities, they are recognised in profit and loss as an Income Tax Benefit. u. Acquisition, Exploration and Evaluation Expenditure 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. Exploration, evaluation and development costs of mining tenements are written off as incurred. 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 2021 40 NOTE 2 REVENUE Interest revenue – Banks Other income1 Other income – Sale of Greenland2 Other income – profit on disposal of investments3 2021 $ 370 138,617 7,941,545 2,010,631 2020 $ 4,282 50,444 - - 54,726 1. During the period, Platina received $42,745 from the ATO in the form of a tax-free cash flow boost and also received a refund of $78,607 10,091,163 from a drilling contractor for prior prepayment of deposit. 2. During the period, Platina received CAD 0.5 million cash and CAD 7.15 million worth of Canadian-listed Major Precious Metals Corp (CSE: SIZE) shares (55 million shares, based on the last traded price at CAD 0.13c per SIZE share at date of contract) for the sale of its Skaergaard Project in Greenland. In January 2021, Platina issued 15.56 million ordinary fully paid shares (at a deemed price of $0.024 per share) to nominees of Argonaut Limited as consideration for corporate advisory services provided to the Company in connection with the sale of the Skaergaard Project. 3. During the period, Platina sold 6 million Major Precious Metal shares (CSE: SIZE). NOTE 3 PROFIT / (LOSS) FOR THE YEAR Profit / (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 / (expense) on loss from ordinary activities before income tax 26% (2020: 27.5%) Add tax effect of: - - - non-allowable items share options / performance rights expensed during period reversal of net fair value loss / (gain) of equity investments designated at FVOCI Less tax effect of non-assessable non-exempt income Benefit of tax losses and temporary differences not brought to accounts R&D tax offset (benefit) Income tax attributable to the Group 2021 $ 2020 $ (5,082) (389,073) (5,230) (73,973) 2021 $ 2020 $ (24,899) (187,498) - - (24,899) (187,498) 5,209,792 (662,856) 154 101,159 (52,232) 5,258,873 (2,075,916) (3,182,957) (24,899) (24,899) 96 47,843 55,246 (559,671) - 559,671 (187,498) (187,498) PGM Annual Report for the year ended 30 June 2021 41 NOTE 4 INCOME TAX EXPENSE (continued) (c) Unrecognised deferred tax balances Net unrecognised deferred tax balances for tax losses and temporary differences 3,090,024 8,824,430 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: 2021 $ 2020 $ 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 2021 $ 506,110 31,190 - 343,776 881,076 2020 $ 386,674 25,777 - 18,825 431,276 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. Apa rt 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 A number of Key Management Personnel, or their related parties, held positions in other entities that result in them having control or significant influence over the financial or operating policies of these entities. Transactions between related parties are on normal commercial terms and conditions unless otherwise stated. • During the year ending 30 June 2021, HopgoodGanim, a legal firm of which Mr Brian Moller is a partner was paid legal fees by the Group of $298,230 (2020: $68,292). There was an amount of $7,500 payable at the balance date. NOTE 6 AUDITOR’S RENUMERATION 2021 $ Renumeration of the auditor of the Group for - auditing or reviewing the financial reports 43,000 - non-audit services - 43,000 2020 $ 43,250 - 43,250 PGM Annual Report for the year ended 30 June 2021 42 NOTE 7 PROFIT / (LOSS) PER SHARE Basic profit / (loss) per share ($ per share) Diluted profit / (loss) per share ($ per share) Reconciliation of earnings to profit or loss: Profit / (Loss) for the period Earnings used to calculate basic EPS Earnings used in the calculation of dilutive EPS Weighted average number of ordinary shares on issue in calculating basic EPS Weighted average number of options outstanding Weighted average number of ordinary shares outstanding during the period used in calculating dilutive EPS 2021 $ 0.049 0.045 20,062,559 20,062,559 20,062,559 2021 Number 407,966,555 37,257,918 407,966,555 2020 $ (0.0072) (0.0072) (2,222,886) (2,222,886) (2,222,886) 2020 Number 310,614,416 - 310,614,416 Anti-dilutive options on issue not used in dilutive EPS calculation - - NOTE 8 CASH AND CASH EQUIVALENTS Cash at bank and in hand Cash and cash equivalents 2021 $ 2,594,200 2,594,200 2020 $ 1,117,565 1,117,565 The average effective interest rate on short-term bank deposits was 0.02% (2020 = 1.67%). 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 2021 Number 63,976 211 64,187 2020 Number 10,600 401 11,001 PGM Annual Report for the year ended 30 June 2021 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 2021 $ 31,440 (22,752) 8,688 2020 $ 31,440 (17,670) 13,770 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 2019 Additions Depreciation expense Balance at 30 June 2020 Depreciation expense Balance at 30 June 2021 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. Listed equity securities – Investment in Major Precious Metals Corp Listed equity securities – Investment in Nelson Resources Limited Total (i) Classification of financial assets at fair value through profit or loss 2021 $ - 329,031 19,347,027 327,659 20,003,717 Plant and Equipment $ 19,000 - (5,230) 13,770 (5,082) 8,688 2020 $ - 130,544 - - 130,544 The Group classifies its equity based financial assets at fair value through profit or loss in accordance with 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 gain of $12,938,998 for the period. PGM Annual Report for the year ended 30 June 2021 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 2021 Listed equity securities Fair value at 30 June 2021 June 2020 Listed equity securities Fair value at 30 June 2021 Level 1 $ 20,003,717 20,003,717 Level 1 $ 130,544 130,544 Level 2 Level 3 $ - - $ - - Level 2 Level 3 $ - - $ - - Total $ 20,003,717 20,003,717 Total $ 130,544 130,544 NOTE 12 EXPLORATION AND EVALUATION EXPENDITURE Balance at beginning of the period Capitalised Impaired Exploration and evaluation expenditure capitalised – at cost 2021 $ - 1,540,008 - 1,540,008 2020 $ - - - - Recoverability of the carrying amount of exploration assets is dependent on the successful exploration and sale of minerals. Impairment losses are recognised on certain areas of interest where management has surrendered the lease or where there is considered to be little or no chance of recovery of expenses through production. Capitalised amounts represent acquisition costs for areas of interest. All subsequent costs are expensed. NOTE 13 OTHER CURRENT AND NON-CURRENT ASSETS CURRENT Prepayments NON CURRENT Security and credit card deposits and rental bond 2021 $ 10,457 10,457 42,099 42,099 2020 $ 29,552 29,552 41,609 41,609 PGM Annual Report for the year ended 30 June 2021 45 NOTE 14 TRADE, OTHER PAYABLES AND PROVISIONS CURRENT Trade payables Sundry payables and accrued expenses Employee benefits NOTE 15 ISSUED CAPITAL Fully paid ordinary shares 434,382,342 (2020: 371,326,493) Share issue costs (a) Ordinary Shares Movements in Ordinary Shares Balance at 1 July 2020 - In July 2020, shares were issued pursuant to a placement of shares - In August 2020, shares were issued as partial consideration for the Challa Gold Project - In August 2020, shares were issued on exercise of performance rights to Managing Director, Corey Nolan - In January 2021, shares were issued as consideration for corporate advisory services provided in relation to the sale of the Greenland assets - In June 2021, shares were issued as partial consideration for the purchase of a 100% interest in the Xanadu Gold Project - In June 2021, shares were issued for introduction and advisory services related to the acquisition of the Xanadu Gold Project Less: Share issue costs Balance at 30 June 2021 2021 $ 49,528 200,427 36,150 286,105 2021 $ 55,402,571 (3,135,853) 52,266,718 Number of Shares 371,326,493 22,360,000 10,000,000 400,000 15,560,000 12,735,849 2,000,000 - 434,382,342 2020 $ 80,110 184,512 22,067 286,689 2020 $ 52,827,671 (3,064,820) 49,762,851 $ 49,762,851 894,400 490,000 36,000 373,500 675,000 106,000 (71,033) 52,266,718 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 2021. (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 19 Share-based Payments. For information relating to share options issued to Key Management Personnel during the financial period, refer to Note 19 Share-based Payments. PGM Annual Report for the year ended 30 June 2021 46 NOTE 15 ISSUED CAPITAL (Continued) 2021 - 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 2020 Number Options Issued 2020/21 Options Exercised/ Expired 2020/21 Number Number Closing Balance 30 June 2021 Number Vested / Exercisable 30 June 2021 Number Options expiring 16 October 2022 Options expiring 16 October 2022 Options expiring 16 October 2022 Options expiring 16 October 2023 (i) (i) (i) (i) $0.08 $0.09 $0.105 $0.10 - - - - 11,500,000 3,000,000 3,000,000 26,360,000 - - - - 11,500,000 11,500,000 3,000,000 3,000,000 3,000,000 3,000,000 26,360,000 26,360,000 Weighted average exercise price ($) 0.094 0.094 0.094 - 43,860,000 - 43,860,000 43,860,000 (i) (ii) In October 2020, following shareholder approval, 17.5 million options were issued as part of the remuneration package for the Company’s directors and company secretary. In July 2020, the Company completed a placement of 22.36 million shares to raise $894,400. In addition, the Company agreed to issue 22.36 million free attaching options to the placement participants, following shareholder approval and nominees of Argonaut Limited subscribed for 4,000,000 options on the same terms at an issue price of $0.0001 as part of the agreement in connection with the placement. 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 2020 Options Issued 2020/21 Options Exercised/ Expired 2020/21 Number Number Number Closing Balance 30 June 2021 Number Vested / Exercisable 30 June 2021 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. The weighted average contractual life of the unlisted options is nil (2020: nil). 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 2021 - 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 2020 Rights Issued 2020/21 Exercised/ Cancelled 2020/21 Number Number Number Closing Balance 30 June 2021 Number Vested / Exercisable 30 June 2021 Number 20 August 2018 20 August 2020 (i) 2,000,000 2,000,000 - - (2,000,000) (2,000,000) - - - - PGM Annual Report for the year ended 30 June 2021 47 NOTE 15 ISSUED CAPITAL (Continued) 2020 - 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 2019 Rights Issued 2019/20 Exercised/ Cancelled 2019/20 Number Number Number Closing Balance 30 June 2020 Number Vested / Exercisable 30 June 2020 Number - - 2,000,000 2,000,000 - - 2,000,000 2,000,000 - - (i) 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. (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 2021 48 NOTE 16 SHARE BASED PAYMENTS RESERVE Share-based payments reserve Share-based Payments Reserve 2021 $ 888,758 888,758 2020 $ 571,285 571,285 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 Shares issued on conversion of performance rights Reversal of previously recognized expenses on unvested performance rights to directors Issue of options to subscribers at an issue price of $0.0001 as part of the agreement in connection with the placement of shares and attaching options in July 2020. 2021 $ 571,285 389,073 (36,000) (36,000) 400 2020 $ 552,459 18,826 - - - Closing balance 888,758 571,285 NOTE 17 COMMITMENTS (a) Tenement Commitments 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. • • • In August 2020, the Group completed the acquisition of a 100% interest in the Challa Gold Project, comprising E58/552 and E58/553 and in order to maintain current contractual rights, the Group has certain commitments to meet minimum expenditure requirements. The current annual minimum lease expenditure commitments on this tenement package is $97,000. In June 2021, the Group completed the acquisition of a 100% interest in the Xanadu Gold Project and in order to maintain current contractual rights, the Group has certain commitments to meet minimum expenditure requirements. The current annual minimum lease expenditure commitments on this tenement package is $219,520. The Group controls a 30% interest in the Munni Munni Project while partner Artemis Resources Limited (ASX:ARV) has the remaining 70% and is operator. In order to maintain current contractual rights, the Group has certain commitments to meet minimum expenditure requirements. The current annual minimum lease expenditure commitments (based on 30%) on this tenement package is $109,650. 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 2021 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. If the Group decides to relinquish certain leases and/or does not meet these obligations, assets recognised in the balance sheet may require review to determine the appropriateness of carrying values. PGM Annual Report for the year ended 30 June 2021 49 NOTE 18 CASH FLOW INFORMATION (a) Reconciliation of Cash Flow from Operations with Profit / (Loss) after Income Tax Profit / (Loss) after income tax Non-cash flows in profit / (loss) Depreciation Exploration and evaluation expenditure written off Share based payments expensed Introduction and advisory services satisfied by issue of shares 2021 $ 2020 $ 20,062,559 (2,222,886) 5,082 704,286 389,073 106,000 5,230 1,211,280 73,973 - Net fair value gain / (loss) on fair value of equity investments designated at FVTPL (12,938,998) 200,893 Other income – Sale of Greenland Other income – profit on disposal of investments Foreign exchange loss Changes in assets and liabilities (Increase)/decrease in prepayments (Increase)/decrease in other current assets Increase/(decrease) in trade payables and accruals Increase/(decrease) in provisions Cash flow from operations (7,941,545) (2,010,631) 561,784 29,095 (53,677) (4,352) 14,083 - - 5,387 104,051 (1,130) (228,386) 6,347 (1,077,241) (845,241) b) Non-Cash Financing and Investing Activities In August 2020, the Company issued 10 million shares (deemed price of $0.049 per share) as partial consideration to the vendors for the acquisition of the tenements comprising the Challa Gold Project. In June 2021, the Company issued 12,735,849 shares (deemed price of $0.053 per share) as partial consideration for the purchase of a 100% interest in the Xanadu Gold Project. NOTE 19 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 was 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 (2020: nil). Refer to Note 15(d) for additional information. PGM Annual Report for the year ended 30 June 2021 50 NOTE 19 SHARE BASED PAYMENTS (continued) Employee Option Incentive Plan (“EOIP”) Shareholders last approved the Platina Resources Limited EOIP at the General Meeting on 8 October 2020. 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. 2,000,000 options were issued to the company secretary, Mr Paul Jurman under the EOIP in 2021 (2020: 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. 15.5 million options were issued to directors during the year ended 30 June 2021. Refer to Note 15(c) for additional information. The following share-based payment arrangements existed at 30 June 2021: a. Unlisted Options 30 June 2021 30 June 2020 Number of Options Weighted Average Exercise Price ($) Number of Options Weighted Average Exercise Price ($) Outstanding at beginning of the year - - 11,000,000 Granted (i) (ii) Expired 43,860,000 - Outstanding at end of the year 43,860,000 Exercisable at end of the year 43,860,000 0.094 - - (11,000,000) 0.094 0.094 - - 0.20 0.20 (0.20) - - Expenses arising from share-based payment transactions - Unlisted Options Share-based payments, are as follows (with additional information provided in Note 15 and 16 above): Options to directors and company secretary (i) (ii) 17,500,000 382,707 11,000,000 21,329 Total 17,500,000 382,707 11,000,000 21,329 2021 Number 2021 $ 2020 Number 2020 $ (i) (ii) In October 2020, following shareholder approval, 17.5 million options were issued as part of the remuneration package for the Company’s directors and company secretary whose combined value was $382,707 and this amount was charged to the profit and loss account for the reporting period. 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 and the charge to the profit and loss account for the prior reporting period was $21,329. 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. PGM Annual Report for the year ended 30 June 2021 51 NOTE 19 SHARE-BASED PAYMENTS (Continued) The following table lists the inputs to the model used for the financial period ended 30 June 2021 and 30 June 2020. (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 16 October 2020 $0.08, $0.09 and $0.105 16 October 2022 $0.51 106% 0.25% Nil 2 May 2017 $0.20 31 December 2019 $0.11 90% 2.08% 50% During the year ended 30 June 2021, no options were exercised. b. Performance Rights 30 June 2021 30 June 2020 Number of Performance Rights Weighted Average Exercise Price ($) 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 Exercisable at end of the year - (400,000) (1,600,000) - - - - - - - - 2,000,000 - - - 2,000,000 - - - - - - - The following share-based payment arrangements were in place during the current and prior periods: 2021 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 The following performance rights were exercised during the current and prior periods: 2021 Number of Performance Rights Number of performance Rights Exercised Exercise date Performance Rights issued to C Nolan 2,000,000 400,000 20-Aug-20 Share price at exercise date $ 0.045 PGM Annual Report for the year ended 30 June 2021 52 NOTE 20 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 2021 53 NOTE 20 OPERATING SEGMENTS (Continued) i. Segment Performance Greenland Australia North America 30 June 2021 REVENUE Interest revenue Other revenue Total segment revenue $ - 7,941,545 7,941,545 $ 370 60,010 60,380 Reconciliation of segment revenue to Group revenue Total Group revenue Reconciliation of segment result of Group net loss after tax All Other Segments $ - - 78,607 2,010,631 78,607 2,010,631 Total $ 370 10,090,793 10,091,163 10,091,163 Segment net profit / (loss) before tax 7,904,851 (198,323) 20,305 12,938,998 20.665.831 Income tax benefit - 24,899 - - 24,899 Amounts not included in segment result but reviewed by Board - Corporate charges - Depreciation and amortisation Net Loss after tax from continuing operations (623,089) (5,082) (623,089) (5,082) (20,062,559) PGM Annual Report for the year ended 30 June 2021 54 NOTE 20 OPERATING SEGMENTS (Continued) 30 June 2020 REVENUE Interest revenue Other revenue Total segment revenue Greenland Australia North America All Other Segments $ - - - $ 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 Total $ 4,282 50,444 54,726 54,726 Segment net loss before tax (123,718) (202,332) (935,046) Income tax benefit - 187,498 - - - (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 ii. Segment Assets 30 June 2021 Reconciliation of segment assets to Group assets Segment Assets Unallocated Assets - Corporate Total Group Assets Segment Asset Increases (Decreases) Capitalised expenditure for the period (1,144,058) (1,144,058) (5,230) (5,230) (2,222,886) Greenland Australia All Other Segments $ - $ 1,540,008 $ - Total $ 1,540,008 22,723,348 24,263,356 - Exploration and Other - 1,530,008 - 1,530,008 PGM Annual Report for the year ended 30 June 2021 55 NOTE 20 OPERATING SEGMENTS (Continued) 30 June 2020 Reconciliation of segment assets to Group assets Segment Assets Unallocated Assets - Corporate Total Group Assets iii. Segment Liabilities 30 June 2021 Reconciliation of segment liabilities to Group liabilities Total Group Liabilities 30 June 2020 Reconciliation of segment liabilities to Group liabilities Total Group Liabilities Greenland Australia All Other Segments $ - $ 10,000 $ - Greenland Australia $ $ - 286,105 Greenland Australia $ - $ 286,689 All Other Segments $ - All Other Segments $ - Total $ 10,000 1,334,041 1,344,041 Total $ 286,105 286,105 Total $ 286,689 286,689 PGM Annual Report for the year ended 30 June 2021 56 NOTE 21 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 2021 57 NOTE 21 FINANCIAL RISK MANAGEMENT (Continued) Weighted Average Effective Interest Rate Floating Interest Rate Less than 1 year Fixed Interest Rate Maturing Non-Interest Bearing Total 2021 Financial Assets Cash and cash equivalent assets 0.02% 120,005 - 2,474,195 2,594,200 Security deposits and deposits at financial institutions Financial assets at FVTPL Other financial assets Total Financial Assets Financial Liabilities Other financial liabilities Total Financial Liabilities 2020 Financial Assets 0.75% - - - - - 32,099 10,000 42,099 - - 20,003,717 20,003,717 64,187 64,187 120,005 32,099 22,552,099 22,704,203 - - - - 286,105 286,105 286,105 286,105 Cash and cash equivalent assets 0.02% 224,826 - 892,739 1,117,565 Security deposits and deposits at financial institutions Financial assets at FVTPL Other financial assets Total Financial Assets Financial Liabilities Other financial liabilities Total Financial Liabilities Foreign exchange risk 1.55% - - - - - 31,609 10,000 - - 130,544 11,001 41,609 130,544 11,001 224,826 31,609 1,044,284 1,300,719 - - - - 286,689 286,689 286,689 286,689 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. The investments held in Blue Moon Zinc Corp and Major Precious Metals, as disclosed in Note 11, are denominated in US dollars and Canadian dollars respectively. Foreign exchange exposures are not hedged. PGM Annual Report for the year ended 30 June 2021 58 NOTE 22 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 Profit / (loss) for the period 2021 $ 2020 $ 2,668,844 21,578,153 24,246,997 269,748 269,748 23,977,249 55,402,571 (3,135,853) 52,266,718 888,758 (29,178,227) 23,977,249 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 20,098,557 (2,222,886) Contingent liabilities of the parent entity The parent entity’s contingent liabilities are noted in Note 23. 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. For details on commitments, see Note 17. PGM Annual Report for the year ended 30 June 2021 59 NOTE 22 PLATINA RESOURCES LIMITED PARENT INFORMATION (Continued) b. Interest in Subsidiaries Company Name Parent Entity Country of Incorporation Percentage Owned (%)* 2021 2020 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 Coolabah Resources Pty Ltd Australia 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 Coolabah Resources Pty Ltd and previously held a 100% interest in Platina Greenland A/S, which was liquidated in June 2021. None of the subsidiaries have traded during the year and do not have any assets and liabilities. c. Amounts Outstanding from Related Parties There are no amounts outstanding from related parties. NOTE 23 CONTINGENT LIABILITIES There are no known contingent liabilities as at 30 June 2021 other than as below; In accordance with the tenement acquisition agreements entered into by the Group the following deferred consideration may become payable in future periods: Challa Gold Project • A 0.75% gross gold royalty is payable on any gold produced from the tenements and a milestone payment of $100,000 is payable on reporting of a JORC (2012) Mineral Resource of 50,000 oz of gold or a decision to mine. Xanadu Gold Project • • • In June 2022, Platina has an option to extend the agreement by issuing a further $925,000 of Platina ordinary shares priced at 5.3c per share to the Vendors. If the option is not exercised the vendors can buy the tenements back for $1; A milestone payment of $200,000 on reporting of a JORC (2012) Mineral Resource of 100,000 oz of gold; and A 1% gross gold royalty is payable on any gold produced from the Prospecting Licenses and a further 1% new smelter royalty payable on all the tenements. Platina can buy back 50% of the net smelter royalty for $1 million. PGM Annual Report for the year ended 30 June 2021 60 NOTE 24 RELATED PARTY TRANSACTIONS There have been no other transactions with key management personnel during the year ended 30 June 2021. 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. NOTE 25 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. 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 2021 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 2021. i. giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2021 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: 28 September 2021 62| PGM Annual Report for the year ended 30 June 2021 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 2021 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 2021 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(c) in the financial report, which indicates that the Company derived a net profit $20,062,559 for the year ended 30 June 2021 (2020: Net loss of $2,222,886) but that this mainly consisted of unrealised and once-off transactions that are unlikely to recur in the future. Net operating cash outflows for the year were $1,077,241 (2020: $845,241). As stated in Note 1(c), these events or conditions, along with other matters as set forth in Note 1(c), 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 2021 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 Sale of Greenland Projects - $7,941,545 Our procedures included, amongst others: • Confirming the terms of the sale by inspecting supporting documentation • Verifying proceeds of the sale to supporting documentation. • Performing a recalculation of the gain on sale. • Assessing the adequacy of financial report disclosures/ As disclosed in Note 2, the Group sold its interest in the Skaergaard project in Greenland for consideration of $0.5 million Canadian dollars, plus 55 Million shares in a Canadian listed entity, Major Precious Metals. The sale of the Greenland projects is considered to be a key audit matter due to: • • • The change in strategic direction of the Group represented by the sale; The significance of the expense to the Consolidated Entity’s consolidated statement of profit or loss and other comprehensive income; and The transaction involving foreign currency, valuation and taxation considerations. Financial Assets at Fair Value Through P&L - $20,003,717 Our procedures included, amongst others: As disclosed in Note 11, the Group acquired (either through sale of assets or direct purchase) a number of investments in entities that are publicly traded on exchanges in Australia, USA and Canada. The sale of the Greenland projects is considered to be a key audit matter due to: • • Foreign currency considerations for two of the three investments The investments have become the largest asset on the Statement of Financial Position • Realised gains ($9.9m) and unrealized gains ($12.9M) relating to the investments are the largest line items in the P&L. • Evaluating management’s assessment of how such assets should be classified, having regard to the requirements of AASB 9 Financial Instruments, AASB 11 Joint Arrangements and AASB 128 Investments in Associates and Joint Ventures • Obtaining from management a schedule of investment held by the Group and vouching the investments to supporting documentation. • Reviewing managements’ assessment of the fair value of the investments by reference to quoted prices in active markets and foreign exchange rates (where applicable) and ensuring that all gains and losses have been treated appropriately. 64| PGM Annual Report for the year ended 30 June 2021 INDEPENDENT AUDITOR’S REPORT TO THE DIRECTORS OF PLATINA RESOURCES LIMITED 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 2021, but does not include the financial report and our auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance 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. 65| PGM Annual Report for the year ended 30 June 2021 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. 66| PGM Annual Report for the year ended 30 June 2021 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 2021. In our opinion, the Remuneration Report of Platina Resources Limited, for the year ended 30 June 2021, 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 28 September 2021 PGM Annual Report for the year ended 30 June 2021 67 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 20 September 2021. (a) Distribution of equity securities The number of holders, by size of holding, in each class of security are: Ordinary Shares Number of Holders 109 155 288 1,106 505 2,163 Number 18,853 477,799 2,410,693 44,491,105 386,983,892 434,382,342 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over Total The number of shareholders holding less than a marketable parcel was 363 and they hold a total of 1,130,134 shares. Unquoted equity securities Class Number Number of Holders Notes Options exercisable at $0.10 expiring 16 Oct 2023 Options exercisable at $0.08 expiring 16 Oct 2022 Options exercisable at $0.09 expiring 16 Oct 2022 Options exercisable at $0.105 expiring 16 Oct 2022 26,360,000 11,500,000 3,000,000 3,000,000 5 5 1 1 1 2 3 4 Holders of more than 20% of this class of options: 1. Palisades Gold Corp Limited 2. Corey Nolan 3. Brian Moller 4. Corey Nolan 5. Corey Nolan 19,360,000 options 3,000,000 options 2,500,000 options 3,000,000 options 3,000,000 options PGM Annual Report for the year ended 30 June 2021 68 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 BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM BNP PARIBAS NOMINEES PTY LTD MINERAL EDGE PTY LTD SINO PORTFOLIO INTERNATIONAL LIMITED YANDAL INVESTMENTS PTY LTD HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD 10 MR MICHAEL WONG 11 BNP PARIBAS NOMS PTY LTD 12 OPEKA DALE PTY LTD 13 CITICORP NOMINEES PTY LIMITED 14 TEGAR PTY LTD 15 NOVASC PTY LTD 16 MR GEOFREY JAMES HARRIS 17 MR PETER PALAN & MRS CLARE PALAN 18 BOND STREET CUSTODIANS LIMITED 19 NEWLANDS SUPER PTY LTD 20 ARGONAUT EQUITY PARTNERS PTY LIMITED Top 20 Total * Merged holding Number % of total shares 52,642,317 27,997,598 16,908,757 13,555,954 8,915,094 7,900,000 7,000,000 6,188,463 6,126,064 5,830,627 5,471,447 5,700,000 4,966,589 4,901,400 4,308,712 4,000,000 3,500,000 3,211,385 3,000,000 2,878,600 12.12% 6.45% 3.89% 3.12% 2.05% 1.82% 1.61% 1.42% 1.41% 1.34% 1.32% 1.31% 1.14% 1.13% 0.99% 0.92% 0.81% 0.74% 0.69% 0.66% 195,273,007 434,382,342 44.94% 100.00% PGM Annual Report for the year ended 30 June 2021 69 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 2021 70
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