PGM 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