More annual reports from Ragnar Metals Limited:
2023 ReportABN 12 108 560 069
ANNUAL REPORT
30 JUNE 2020
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Corporate Directory
Current Directors
Steven Formica
Ariel (Eddie) King
David Wheeler
Company Secretary
Julia Beckett
Non-executive Chairman
Non-executive Director
Non-executive Director
Registered Office
Share Registry
Street:
Suite 12, Level 1
Computershare Investor Services Pty Limited
11 Ventnor Avenue
West Perth WA 6005
Postal:
PO Box 1240
Telephone:
Facsimile:
Email:
Website:
West Perth WA 6872
+61 (08) 6245 2050
+61 (08) 6245 2055
info@ragnarmetals.com.au
www.ragnarmetals.com.au
Level 11, 172 St Georges Terrace
PERTH WA 6000
Telephone:
Telephone:
Email:
Website:
1300 850 505 (investors within Australia)
+61 (03) 9415 4000
web.queries@computershare.com.au
www.investorcentre.com
Securities Exchange
Australian Securities Exchange
Auditors
Bentleys
Level 40, Central Park, 152-158 St Georges Terrace
London House
Perth WA 6000
Level 3, 216 St Georges Terrace
Telephone:
131 ASX (131 279) (within Australia)
Perth WA 6000
Telephone:
Facsimile:
Website:
ASX Code
+61 (02) 9338 0000
+61 (02) 9227 0885
www.asx.com.au
RAG
Telephone:
Facsimile:
Website:
+61 (08) 9226 4500
+61 (08) 9226 4300
www.bentleys.com.au
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Contents
⚫ Activities Report ..................................................................................................................................................................... 1
⚫ Directors' report ..................................................................................................................................................................... 6
⚫ Remuneration report............................................................................................................................................................ 10
⚫ Auditor's independence declaration .................................................................................................................................... 14
⚫
⚫
⚫
⚫
Consolidated statement of profit or loss and other comprehensive income ....................................................................... 15
Consolidated statement of financial position ....................................................................................................................... 16
Consolidated statement of changes in equity ...................................................................................................................... 17
Consolidated statement of cash flows ................................................................................................................................. 18
⚫ Notes to the consolidated financial statements ................................................................................................................... 19
⚫ Directors' declaration ........................................................................................................................................................... 43
⚫
Independent auditor's report ............................................................................................................................................... 44
⚫ Additional Information for Listed Public Companies ............................................................................................................ 47
⚫
Tenement report .................................................................................................................................................................. 49
P a g e | ii
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Activities Report
MINING INTERESTS
EXISTING PROJECTS
On 19 September 2019, Ragnar advised it had commissioned Swedish geoscientific consultants, GeoVista AB, to commence
Induced Polarization & Resistivity Survey (IP-R) over the Company’s Swedish nickel projects at Tullsta and Gaddebo. This was
completed in January 2020. The projects are located to the west of Sala, within the Bergslagen District, which is situated 110km
NW of the capital Stockholm (Figure 1).
Highlights included:
•
•
•
•
IP-R survey completed at the Tullsta Nickel Project (Tullsta) in Bergslagen District, Sweden;
Swedish geoscientific consultants GeoVista AB complete the survey works and data modelling;
Inverse data modelling has defined the known near surface sulphide mineralisation as well as deep, north plunging
anomalism below the existing drilling; and
Ragnar will review the existing “discovery” drilling with this model and design a drilling program to test the Granmuren
mineralisation at depth.
On 17 February 2020, Ragnar announced that 3D modelling of the IP-R data over the Company’s Swedish nickel project at Tullsta
has been completed and new drill targets have been identified below the existing drilling.
Highlights included:
•
•
•
•
3D modelling of IP-R survey data has generated new drill targets below existing drilling;
The IP-R survey defined a continuous body that plunges in a western to north-westerly direction below the existing
Granmuren nickel mineralisation;
A review of the existing “discovery” drilling strongly supports the 3D models generated;
In addition, there is a north plunging, Eastern Anomaly as well as a developing Southern Anomaly that warrant further
investigation; and
• Work Permits for the planned drilling will be submitted to the Swedish Mines Inspectorate.
This geophysical survey successfully highlighted the mineralisation at Tullsta, which is characterized by a steeply dipping zone
forming an anomaly of up to 150m wide. Within this zone there are multiple lenses and the two combined models form a
continuous body that extends from surface to below the boreholes and open to the north and west. Magnetic and gravity
modelling also indicates a western to north-westerly plunging body which is supported by the results of this recent geophysical
survey.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Figure 1: Location of Ragnar’s Swedish Mineral Asset Portfolio
Environmental Permit Received for the Swedish Tullsta Nickel Project
On 23 April 2020, Ragnar was pleased to advise shareholders that the Company had received correspondence from the Swedish
Department of Nature Conservation stating that the County Administrative Board at Sala has granted an exemption from the Off-
Road Driving Act. This Environmental Permit paves the way for conducting diamond drilling and geophysical measurements
within the Berga Nr1 tenure at the Company’s Swedish Tullsta Nickel Project.
Highlights included:
•
•
•
•
An Environmental Permit to operate off-road in the County of Sala has been granted by the Swedish Department of
Nature Conservation and the County Administrative Board
The Environmental Permit grants Ragnar an exemption from the Off-Road Driving Act and grants permission to
undertake the planned drilling and geophysical works within the forests and fields at the Tullsta Nickel Project
The exemption applies until 08/04/2022 and gives Ragnar the right to travel within the marked Berga Nr1 survey works
area which was submitted to the Inspectorate of Mines
Landholders have been served the Work Plans and should there be no objections, the work plan becomes valid and
Inspectorate of Mines will issue the final Works Permit
• Once the final Works Permit is issued, the planned field trip to valid the drill sites and meet landowners will be re-
scheduled once global COVID-19 travel restrictions are lifted
•
Planned drilling is currently postponed until international travel is permitted to reconvene
The Environmental Permit has been granted until 8 April 2022 giving Ragnar the right to travel, diamond drill and undertake
geophysical surveys within the marked Berga Nr1 tenement survey works area as shown at Figure 2.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Figure 2: Permitted area of works centred over the Granmuren Nickel Deposit at Tullsta. The Works area covers all the planned
drilling as shown on the right image. The Granmuren nickel mineralisation (purple model) and existing drill holes (blue traces)
into the mineralised zone are shown, and the new larger IP Chargeability model is shown by the green model. Planned drill
holes (red traces) will test the northwest trend, the depth potential to the north and south, as well as the developing untested
southern anomaly.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Final Swedish Tenement Granted and Full Work Permits Received
On 19 May 2020, Ragnar announced that the Company had received correspondence from the Swedish Inspectorate of Mines
granting the Tullsta nr8 permit which was applied for in February 2020. It was the only missing tenement within the Tullsta
tenement package (other than excised town and water reserves within Tullsta nr7 permit). The granting of this permit now gives
Ragnar Metals 100% coverage of the Tullsta Project area which now covers a total area of 136.44km2 (Figure 3 and Table 1).
Highlights included:
•
•
•
•
•
•
Tullsta nr8 permit now granted giving Ragnar Metals 100% coverage of the Project Area
Tullsta nr8 adjoins the Berga nr1 permit which contains the Granmuren Nickel Mineralisation
The final Works Permit has also been granted by the Inspectorate of Mines to operate within Berga nr1 permit and
commence the planned activities
The Works Permits and Environmental Permits apply until 08/04/2022 giving Ragnar the right to travel, drill and
undertake geophysical surveys within the marked Berga Nr1 survey works area
Ragnar will undertake a pre-drilling field trip to validate the targets, inspect the planned drill sites and meet landowners
once global COVID-19 travel restrictions are lifted
The planned drilling activities are currently postponed until international travel is permitted to reconvene
Tullsta nr5
Tullsta nr7
Excised
Reserves
Tullsta nr6
Berga nr1
Tullsta nr8
Granmuren
Nickel Deposit
Figure 3: Ragnar Metals 100% owned tenure at the Tullsta Nickel Project to the west of the historic mining town of Sala. The
Tullsta nr8 permit is surrounded by Tullsta nr6 permit and is located immediately to the west Granmuren Nickel Deposit
which is situated within the Berga nr1 permit. The granting of Tullsta nr8 closes the gap in Ragnar’s tenement package.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Table 1: Ragnar Metals Tullsta Project Tenement Details.
Name
License Id
Owner
Berga nr 1
2018 48
Ragnar Metals Limited (100.00%)
Tullsta nr 5
2017 140
Ragnar Metals Limited (100.00%)
Tullsta nr 6
2017 158
Ragnar Metals Limited (100.00%)
Tullsta nr 7
2019 5
Ragnar Metals Limited (100.00%)
Area Ha
Valid From
Valid To
2181.52
4283.10
2695.03
4452.74
28/03/2018
28/03/2021
16/10/2017
16/10/2020
6/11/2017
6/11/2020
25/01/2019
25/01/2022
Tullsta nr 8
2020 45
Ragnar Metals Limited (100.00%)
31.41
7/05/2020
7/05/2023
Total Area
13643.80
Gaddebo Nickel Project
On 21 November 2019, Ragnar announced it had entered into a binding heads of agreement with 2617818 Ontario Inc, a company
incorporated in Ontario, Canada, setting out the terms Ragnar had agreed to grant an option to Ontario Inc to acquire Ragna’s
100% interest in exploration permit 2014:91, Gaddebo nr 3, located in Bergslagen District Sweden.
On 20 January 2020 the Company announced that an airborne electromagnetic helicopter survey was completed by Ontario Inc
over the Gaddebo nr 3 tenement. Highlights included:
•
•
•
•
•
SkyTEM completed an airborne helicopter electromagnetic (“EM”) survey over the Gaddebo Nickel Project in
Bergslagen District, Sweden
Survey was conducted by option holder Ontario Inc as part of a larger regional airborne survey
Approximately 15-line kilometres were flown over the Gaddebo nr3 tenure
Aim of the survey is to gain a better understanding of the bedrock geology and identify further nickel mineralisation
Results of the survey are expected once the entire survey is completed and the data processed
CORPORATE
Board Changes
On 2 September 2019, Ragnar was pleased to announce the appointment of Mr Steven Formica as Non-executive Chairman of
the Company. It was also announced that Ms Sara Kelly resigned from the Company at this time.
On 31 December 2019 Ragnar announced the resignation of Mr James Scovell as the Non-executive Director of the Company.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Directors' report
Your Directors present their report together with the financial statements of the Group, consisting of Ragnar Metals Limited
(“Ragnar Metals” or the “Company” or the “parent entity”) and its controlled entities (collectively the “Group”), for the financial
year ended 30 June 2020.
1. Directors
The names of Directors in office at any time during or since the end of the year are:
• Mr Steven Formica
• Mr Ariel (Eddie) King
• Mr David Wheeler
• Ms Sara Kelly
• Mr James Scovell
Non-executive Chairman (appointed 2 September 2019)
Non-executive Director
Non-executive Director
Non-executive Chairman (resigned 2 September 2019)
Non-executive Director (resigned 31 December 2019)
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
2. Company Secretary
The following person held the position of Company Secretary at the end of the financial year:
• Ms Julia Beckett
Qualifications
Ms Beckett holds a Certificate in Governance Practice and Administration and is a
Certificated Member of the Governance Institute of Australia.
Experience
Ms Beckett
in corporate
is a Corporate Governance professional, having worked
administration and compliance for the past 14 years. She has been involved in business
acquisitions, mergers, initial public offerings, capital raisings as well as statutory and financial
reporting. Ms Beckett is also Company Secretary of Calidus Resources Limited (ASX: CAI)
European Metals Holdings Limited (ASX & AIM: EMH) and Los Cerros Limited (Joint) (ASX:LCL)
and has held non-executive director roles for a number of ASX listed companies.
3. Principal Activities
The principal activities of the Group during the financial year were the exploration and evaluation of its projects in Scandinavia.
4. Dividends Paid or Recommended
There were no dividends paid or recommended during the financial year ended 30 June 2020 (2019: Nil)
5. Operating and financial review
5.1. Nature of Operations Principal Activities
5.2. Operations Review (refer Operations review of page 1)
A detailed review of the Group’s exploration activities is set out in the section titled “Activities Report” in this annual report.
5.3. Financial Review
Operating results
a.
For the 2020 financial year the Group delivered a loss before tax of $492,618 (2019: $734,233).
The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.
b.
Financial position
The net assets of the Group have decreased to $350,014 at 30 June 2020 (2019: $831,134).
As at 30 June 2020, the Group's cash and cash equivalents of $142,060 at 30 June 2020 (2019: $$732,949) and had working
capital of $42,705 (2019: $717,532 working capital), as in Note 23.
6. Significant Changes in State of Affairs
There was no significant change in the state of affairs of the company during the year.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Directors' report
7. Events Subsequent to Reporting Date
There are no other significant after balance date events that are not covered in this Directors' Report or within the financial
statements at Note 22.
8. Future Developments, Prospects and Business Strategies
Likely developments, future prospects and business strategies of the operations of the Group and the expected results of those
operations have not been included in this report as the Directors believe that the inclusion of such information would be likely
to result in unreasonable prejudice to the Group.
9.
Information relating to the directors
• Mr Steve Formica
Experience
Interest in Shares and Options
Directorships held in other listed
entities in the past three years
Non-executive Chairman (Appointed 2 September 2019)
Mr Formica has been a successful businessman and operations manager for over 35
years in several privately held business ventures across multiple industry sectors.
16,716,666 ordinary shares in Ragnar Metals Limited and options to acquire a further
3,000,000 ordinary shares.
Mr Formica also acts as a director of Bowen Coking Coal Ltd (ASX: BCB), High Grade
Metals Limited (ASX: HGM) and Houston We Have Ltd (ASX: HWH) formerly known
as Veriluma Limited (ASX: VRI). He was a former director of Orminex Ltd (ASX: ONX)
and Lindian Resources Limited (ASX: LIN).
• Mr Ariel Eddie King
Qualifications
Experience
Non-executive Director (Appointed 10 February 2017)
Bachelor of Commerce and Bachelor of Engineering
Mr King is a qualified Mining Engineer. Mr King holds a Bachelor of Commerce and
Bachelor of Engineering from The University of Western Australia and is currently a
Representative for CPS Capital. Mr King’s past experience includes being Manager for
an investment banking firm, where he specialised in the technical and financial
requirements of bulk commodity and other resource projects.
Interest in Shares and Options
1,500,000 ordinary shares in Ragnar Metals Limited and options to acquire a further
2,100,000 ordinary shares.
Directorships held in other listed
entities in the past three years
Mr King also acts as a director of Eastern Iron Limited (ASX: EFE) and Pure Minerals
Limited (ASX: PM1). He was a former director of Six Sigma Metals Limited (ASX: SI6),
European Cobalt Limited (ASX: EUC), ECS Botanics Holdings Limited (ASX: ECS)
formerly known as Axxis Technology Group (ASX: AYG), Sultan Resources Limited (ASX:
SLZ), Bowen Coking Coal Limited (ASX: BCB) and Lindian Resources Limited (ASX: LIN).
• Mr James Scovell
Qualifications
Non-executive Director (Appointed 1 June 2017; resigned on 31 December 2019)
Bachelor of Law
Experience
Mr Scovell is a corporate lawyer with over 15 years’ experience. James is a member of
the Western Australian Bar Association (WABA). He achieved his Bachelor of Law from
the University of Western Australia.
Mr Scovell currently practices from Francis Burt Chambers where he acts for a broad
range of clients, including ASX listed entities and financial institutions. He notably
represented Andrew Forrest from 2006 to 2012 in relation to a high profile case
regarding director’s duties and disclosure obligations. Mr Scovell’s work primarily
involves providing practical, commercial legal advice for clients. This includes matters
involving corporate and personal
law, corporations,
disciplinary tribunals, equity, insurance, professional negligence, property law,
taxation, and trade practices.
insolvency, commercial
Interest in Shares and Options
Options in Ragnar Metals Limited to acquire 5,000,000 ordinary shares.
Directorships held in other listed
entities in the past three years
N/A
• Mr David Wheeler
Non-executive Director (Appointed 4 December 2017)
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Directors' report
Qualifications
Experience
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Fellow of the Australian Institute of Company Directors
Mr Wheeler has more than 30 years of Executive Management Directorship and
Corporate Advisory experience. He is a foundation Director and Partner of Pathways
Corporate, a boutique corporate advisory firm that undertakes assignments on behalf
of family offices, private clients and ASX listed companies. Mr Wheeler has
successfully engaged in business projects in the USA, UK, Europe, NZ, China, Malaysia,
Singapore and the Middle East. Mr Wheeler is a Fellow of the Australian Institute of
Company Directors and serves on public and private company boards currently
holding a number of Directorships and Advisory positions in Australian ASX listed
companies.
Interest in Shares and Options
Directorships held in other listed
entities in the past three years
Options in Ragnar Metals Limited to acquire 2,000,000 ordinary shares.
Mr Wheeler also acts as a director of Blaze International Limited (ASX: BLZ), Delecta
Limited (ASX: DLC), Tyranna Ltd (ASX: TYX), Protean Energy Ltd (ASX: POW), Thred
Limited (ASX: THD), Eneabba Gas Ltd (ASX: UTR), Avira Resources (ASX: AVW) and
Syntonic Limited (ASX: SYT). He was a former director Ultracharge Ltd (ASX: UTR),
Antilles Oil and Gas NL (ASX: AVD), Castillo Copper Limited (ASX: CCZ), AusMex Mining
Ltd (ASX: AMG), Weststart Industrial Limited (ASX: WSI), 333D Limited (ASX: T3D),
Auscann Group Holdings Ltd (ASX: AC8), The Carajas Copper Company Ltd (renamed:
Valor Resoures Limited - ASX: VAL), and Premiere Eastern Energy Limited (delisted).
• Ms Sara Kelly
Qualifications
Experience
Non-executive Chairman (Appointed as Non-executive Chairman on 2 July 2018,
resigned 2 September 2019)
Bachelor of Law and Bachelor of Commerce
Ms Kelly is a corporate lawyer and Partner at Edwards Mac Scovell Legal (a Perth based
law firm). Ms Kelly has significant transactional and industry experience having both
worked in private practice as a corporate advisor and as in house counsel. Ms Kelly’s
experience includes the administration of regulatory frameworks and processes in a
listed company environment, acquisitions, takeovers, capital raisings and listing of
companies on ASX and AIM.
Interest in Shares and Options
Directorships held in other listed
entities in the past three years
2,541,580 ordinary shares in Ragnar Metals Limited and options to acquire a further
8,000,000 ordinary shares.
Ms Kelly also acts as a director of Wiluna Mining Corporation Limited (ASX: WMX)
and was a former director of Homestay Care Ltd (ASX: HSC)
10. Meetings of directors and committees
During the financial year two meetings of Directors (including committees of Directors) were held. Attendances by each Director
during the year are stated in the following table.
DIRECTORS'
MEETINGS
AUDIT
COMMITTEE
NOMINATION
COMMITTEE
REMUNERATION
COMMITTEE
FINANCE AND
OPERATIONS
COMMITTEE
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Number
eligible to
attend
Number
Attended
Steve Formica1
Sara Kelly2
Eddie King
James Scovell3
David Wheeler
1
2
3
2
3
1
2
3
2
3
At the date of this report, the Remuneration, Audit, Nomination, and Finance and Operations Committees
comprise the full Board of Directors. The Directors believe the Company is not currently of a size nor are
its affairs of such complexity as to warrant the establishment of these separate committees. Accordingly,
all matters capable of delegation to such committees are considered by the full Board of Directors.
1 Appointed on 2 September 2019
2 Resigned on 2 September 2019
3 Resigned on 31 December 2019
11. Indemnifying Officers or Auditor
During or since the end of the financial year the Company has given an indemnity or entered into an agreement to indemnify,
or paid or agreed to pay insurance premiums as follows:
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Directors' report
⚫ The Company has entered into agreements to indemnify all Directors and provide access to documents, against any liability
arising from a claim brought by a third party against the Company. The agreement provides for the company to pay all
damages and costs which may be awarded against the Directors.
⚫ The Company has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them
in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company,
other than conduct involving a wilful breach of duty in relation to the Company. The amount of the premium in 2020 was
$24,000 (2019: $22,000).
⚫ No indemnity has been paid in respect of auditors.
12. Options
12.1. Unissued shares under option
At the date of this report, the un-issued ordinary shares of Ragnar Metals Limited under option (listed and unlisted) are as
follows:
Grant Date
Date of Expiry
Exercise Price
4 May 2017
4 May 2021
8 June 2017
8 June 2021
8 June 2017
8 June 2021
13 June 2017
13 June 2021
19 March 2018
8 June 2021
2 September 2019
2 September 2022
$0.03
$0.02
$0.03
$0.02
$0.025
$0.015
Number under
Option
14,000,000
35,000,001
2,000,000
17,500,000
25,000,000
3,000,000
96,500,001
No person entitled to exercise the option has or has any right by virtue of the option to participate in any share issue of any
other body corporate.
12.2. Shares issued on exercise of options
No ordinary shares were issued by the Company as a result of the exercise of options during or since the end of the financial
year.
13. Environmental Regulations
The Group's operations are not subject to significant environmental regulations in the jurisdictions it operates in, namely
Australia.
14. Non-audit services
During the year, Bentleys, the Company’s auditor, performed tax consulting services to the company. These services amounted
to $4,400 (2019: $2,780). Details of remuneration paid to the auditor can be found within the financial statements at Note 5
Auditor's Remuneration.
In the event that non-audit services are provided by Bentleys, the Board has established certain procedures to ensure that the
provision of non-audit services are compatible with, and do not compromise, the auditor independence requirements of the
Corporations Act 2001. These procedures include:
⚫
⚫
non-audit services will be subject to the corporate governance procedures adopted by the Company and will be reviewed
by the Board to ensure they do not impact the integrity and objectivity of the auditor; and
ensuring non-audit services do not involve reviewing or auditing the auditor's own work, acting in a management or
decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards.
15. Proceedings on behalf of company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which
the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Directors' report
16. Auditor's independence declaration
The lead auditor's independence declaration under section 307C of the Corporations Act 2001 (Cth) for the year ended
30 June 2020 has been received and can be found on page 14 of the annual report.
17. Remuneration report (audited)
17.1. Key management personnel (KMP)
KMP have authority and responsibility for planning, directing and controlling the activities of the Group. KMP comprise the
directors of the Company and key executive personnel:
⚫ Mr Steve Formica (appointed 2 September 2019)
⚫ Ms Sara Kelly (resigned 2 September 2019)
⚫ Mr Ariel (Eddie) King
⚫ Mr James Scovell (resigned 31 December 2019)
⚫ Mr David Wheeler
17.2. Remuneration Policy
The remuneration policy of Ragnar Metals Limited has been designed to align director and management objectives with
shareholder and business objectives by providing a fixed remuneration component, and offering specific long-term
incentives based on key performance areas affecting the Group’s financial results. The Board of Ragnar Metals Limited
believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best management
and directors to run and manage the Group, as well as create goal congruence between directors, executives and
shareholders.
The Board’s policy for determining the nature and amount of remuneration for Board members and senior executives of
the Group is as follows:
⚫ The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, was
developed by the Remuneration Committee and approved by the Board. All executives receive a base salary (which is
based on factors such as length of service and experience), superannuation, options and performance incentives. The
Remuneration Committee reviews executive packages annually by reference to the Group’s performance, executive
performance, and comparable information from industry sectors and other listed companies in similar industries.
⚫ Executives are also entitled to participate in the employee share and option arrangements.
⚫ All remuneration paid to Directors and executives is valued at the cost to the Company and expensed. Options given
to Directors and employees are valued using the Black-Scholes methodology.
⚫ The Board’s policy is to remunerate Non-Executive Directors at the lower end of market rates for comparable
companies for time, commitment, and responsibilities. The Non-Executive Directors have been provided with options
that are meant to incentivise the Non-Executive Directors. The Remuneration Committee determines payments to the
Non-Executive Directors and reviews their remuneration annually based on market practice, duties, and accountability.
Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to
Non-Executive Directors is subject to approval by shareholders at the Annual General Meeting. Fees for Non-Executive
Directors are not linked to the performance of the Group. However, to align Directors’ interests with shareholder
interests, the Directors are encouraged to hold shares in the Company.
The remuneration policy has been tailored to increase the direct positive relationship between shareholders’ investment
objectives and directors’ and executives’ performance. Currently, this is facilitated through the issue of options to the
majority of directors and executives to encourage the alignment of personal and shareholder interests. The Company
believes this policy will be effective in increasing shareholder wealth.
17.3. Remuneration Details for the Year Ended 30 June 2020
There were no cash bonuses paid during the year and there are no set performance criteria for achieving cash bonuses.
The term “Key Management Personnel” refers to those persons having authority and responsibility for planning, directing
and controlling the activities of the group directly or indirectly including any Director (whether executive or otherwise) of
the Group.
A resolution that the remuneration report for the last financial year to be adopted was put to the vote at the Company's
most recent AGM, held 28 November 2019 and was passed with 99.95% in favour.
P a g e | 10
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Directors' report
17.4. Directors’ and KMP Remuneration
The following table details the components of remuneration for each member of the key management personnel of the
Group:
2020
Steve Formica(1)
Sara Kelly(2)
Eddie King
James Scovell(3)
David Wheeler
2019
Sara Kelly(2)
Eddie King
James Scovell(3)
David Wheeler
Short-term
benefits
Salary, fees
and leave
$
50,000
10,000
36,000
18,000
36,000
150,000
Short-term
benefits
Salary, fees
and leave
$
46,000
36,000
36,000
36,000
154,000
Post-
employment
benefits
Super-
annuation
$
-
-
-
-
-
-
Profit share
and bonuses
Other
$
-
-
-
-
-
-
$
-
-
-
-
-
-
Post-
employment
benefits
Super-
annuation
$
-
-
-
-
-
Profit share
and bonuses
Other
$
-
-
-
-
-
$
-
-
-
-
-
Long-term
benefits
Termination
benefits
Equity-settled share-
based payments
Total
% Share
based
payments
Other
Equity
Options
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
$
%
8,900
58,900
15.1%
-
-
-
-
10,000
36,000
18,000
36,000
8,900
158,900
-
-
-
-
-
Long-term
benefits
Termination
benefits
Equity-settled share-
based payments
Total
% Share
based
payments
Other
Equity
Options
$
-
-
-
-
-
$
-
-
-
-
-
$
-
-
-
-
-
$
-
-
-
-
-
$
%
46,000
36,000
36,000
36,000
154,000
-
-
-
-
-
(1) Appointed 2 September 2019
(2) Resigned 2 September 2019
(3) Resigned 31 December 2019
P a g e | 11
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Remuneration report (audited)
17.5. Share-based compensation
a.
b.
c.
Director and Key Management Personnel share options
3,000,000 options were granted to Steve Formica as remuneration during the year.
Director and Key Management Personnel ordinary shares
There were no shares granted as remuneration to Directors and Key Management Personnel during the year.
Options on issue as Remuneration
Details of the options on issue granted as remuneration to directors are detailed in table below.
2020
Options Issued
Grant Date
Exercise Price
Steve Formica (i)
Sara Kelly(ii)
Sara Kelly(ii)
Sara Kelly(ii)
Eddie King (iii)
Eddie King
James Scovell(iv)
James Scovell(iv)
James Scovell(iv)
David Wheeler
No.
3,000,000
5,000,000
1,000,000
2,000,000
2,000,000
700,000
2,000,000
1,000,000
2,000,000
2,000,000
29/08/2019
15/03/2018
8/06/2017
8/06/2017
15/03/2018
4/05/2017
15/03/2018
8/06/2017
8/06/2017
15/03/2018
$
0.015
0.025
0.03
0.02
0.025
0.03
0.025
0.03
0.02
0.025
Value
$
0.00297
0.00983
0.0048
0.0055
0.00983
0.0047
0.00983
0.0048
0.0055
0.00983
All options have vested.
All options are exercisable are entitled to 1:1 ordinary shares in Ragnar Metals Ltd.
i Steve Formica was appointed on 2 September 2019
ii Sara Kelly resigned on 2 September 2019
iii 600,000 Options were issued to Mr King’s nominee.
iv James Scovell resigned on 31 December 2019
Value
$
8,900
49,132
4,769
11,060
19,652
3,296
19,652
4,769
11,060
19,652
Expiry Date
02/09/2022
08/06/2021
08/06/2021
08/06/2021
08/06/2021
04/05/2021
08/06/2021
08/06/2021
08/06/2021
08/06/2021
17.6. KMP equity holdings
a.
Movement in shareholdings of each KMP
2020
Steve Formica (i)
Sara Kelly (ii)
Eddie King
James Scovell(ii)
David Wheeler
(i) Appointed 2 September 2019
(ii) Resigned 2 September 2019
(iii) Resigned 31 December 2019
Received during
the year as
compensation
No.
Received during
the year on
the exercise of
options
No.
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
start of year
No.
-
2,541,580
1,500,000
-
-
4,041,580
Other changes
during the year
No.
Balance at
end of year
No.
16,716,666
16,716,666
-
-
-
-
2,541,580
1,500,000
-
-
16,716,666
20,758,246
P a g e | 12
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Directors' report
Remuneration report (audited)
b. Movement in option holdings of each KMP
2020
Steve Formica (i)
Sara Kelly (ii)
Eddie King
James Scovell(ii)
David Wheeler
Balance at
start of year
No.
Granted as
Remuneration
during the year
No.
-
3,000,000
8,000,000
2,100,000
5,000,000
2,000,000
-
-
-
-
17,100,000
3,000,000
Exercised
during the year
No.
Other changes
during the year 1
No.
Balance at
end of year
No.
Vested and
Exercisable
No.
Not Vested
No.
-
-
-
-
-
-
-
-
-
-
-
-
3,000,000
3,000,000
8,000,000
8,000,000
2,100,000
2,100,000
5,000,000
5,000,000
2,000,000
2,000,000
20,100,000
20,100,000
-
-
-
-
-
-
(i) Appointed 2 September 2019
(ii) Resigned 2 September 2019
(iii) Resigned 31 December 2019
17.7. Other Transactions with Key Management Personnel
a.
Edwards Mac Scovell
Ms Kelly, Non-executive Chairman of the Company is a Partner of Edwards
Mac Scovell who provide legal services to the Group.
b.
Amounts due to and from Related Parties:
2020
$
2019
$
151,034
23,994
Amounts due (to) / from Edwards Mac Scovell
58,792
-
END OF REMUNERATION REPORT
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors made pursuant to s.298(2) of the Corporation Act 2001.
STEVE FORMICA
Chairman
Dated 4 August 2020
P a g e | 13
To, The Board of Directors,
Auditor’s Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit Partner for the audit of the financial statements of Ragnar Metals Limited for
the financial year ended 30 June 2020, I declare that to the best of my knowledge and
belief, there have been no contraventions of:
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
any applicable code of professional conduct in relation to the audit.
Yours Faithfully,
BENTLEYS
Chartered Accountants
MARK DELAURENTIS CA
Partner
Dated at Perth this 4th day of August 2020
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Continuing operations
Revenue
Other income
Accounting and audit fees
Computers and software
Employee benefits expenses
Contractors and consultants
Impairment
Insurance
Legal fees
Public relations and advertising
Registry and ASX fees
Share-based payments
Foreign exchange loss
Other expenses
Loss before tax
Income tax benefit / (expense)
Loss for the period from continuing operations after tax
Note
3a
3b
4a
4b
18
3b
6
2020
$
520
-
520
(74,490)
(924)
(68,200)
(63,866)
(17,046)
(24,612)
(157,034)
(2,650)
(30,801)
(8,900)
(11,247)
(33,368)
2019
$
4,666
-
4,666
(84,299)
(1,194)
(121,158)
(205,711)
(226,307)
(22,730)
(21,522)
(10,000)
(36,235)
-
-
(9,743)
(492,618)
(734,233)
-
-
(492,618)
(734,233)
Net (loss) / profit for the year
(492,618)
(734,233)
Other comprehensive income, net of income tax
⚫
Items that will not be reclassified subsequently to profit or loss
⚫
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
Other comprehensive income for the year, net of income tax
Total comprehensive income attributable to members of the parent entity
Earnings per share:
2,598
2,598
17,023
17,023
(490,020)
(717,210)
₵
₵
⚫ Basic and diluted loss per share (cents per share)
7
(0.16)
(0.23)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.
P a g e | 15
Consolidated statement of financial position
as at 30 June 2020
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Note
8
9
10
11
2020
$
142,060
22,868
164,928
307,309
307,309
2019
$
732,949
44,763
777,712
113,602
113,602
472,237
891,314
122,223
122,223
60,180
60,180
122,223
60,180
350,014
831,134
12a
14
28,641,172
28,641,172
851,677
840,179
(29,142,835)
(28,650,217)
350,014
831,134
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
P a g e | 16
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Consolidated statement of changes in equity
for the year ended 30 June 2020
Note
Issued
Capital
Accumulated
Losses
$
$
Options
Reserve
$
Share-based
Payments
Reserve
Foreign
Exchange
Translation
Reserve
$
$
Total
$
Balance at 1 July 2018
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the
year
Transaction with owners, directly in equity
Shares issued during the year
12a
Transaction costs
Share buy-back unmarketable parcels
Options issued during the year
12b
28,641,237
(27,915,984)
343,490
525,944
(46,278)
1,548,409
-
-
-
-
-
(65)
-
(734,233)
-
(734,233)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(734,233)
17,023
17,023
17,023
(717,210)
-
-
-
-
-
-
(65)
-
Balance at 30 June 2019
28,641,172
(28,650,217)
343,490
525,944
(29,255)
831,134
Balance at 1 July 2019
Loss for the year
Other comprehensive income for the year
Total comprehensive income for the
year
Transaction with owners, directly in equity
Options issued during the year
12b
28,641,172
(28,650,217)
343,490
525,944
(29,255)
831,134
-
-
-
-
(492,618)
-
(492,618)
-
-
-
-
8,900
-
-
-
-
-
(492,618)
2,598
2,598
2,598
490,020
-
8,900
Balance at 30 June 2020
28,641,172
(29,142,835)
352,390
525,944
(26,657)
350,014
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
P a g e | 17
Consolidated statement of cash flows
for the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Interest received
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Note
2020
$
2019
$
(379,368)
(564,980)
520
4,666
Net cash used in operating activities
8c.i
(378,848)
(560,314)
Cash flows from investing activities
Payments for exploration expenditure
Net cash used in investing activities
Cash flows from financing activities
Payments for shares bought back
Net cash (used)/provided by financing activities
(211,793)
(109,810)
(211,793)
(109,810)
-
-
(65)
(65)
Net (decrease)/increase in cash held
(590,641)
(670,189)
Cash and cash equivalents at the beginning of the year
Effect of exchange rates on cash holdings in foreign currencies
732,949
1,402,964
(248)
174
Cash and cash equivalents at the end of the year
8a
142,060
732,949
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
P a g e | 18
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Statement of significant accounting policies
Note 1
These are the consolidated financial statements and notes of Ragnar Metals Limited (Ragnar Metals or the Company) and
controlled entities (collectively the Group). Ragnar Metals is a company limited by shares, domiciled and incorporated in
Australia.
The separate financial statements of Ragnar Metals, as the parent entity, have not been presented with this financial report as
permitted by the Corporations Act 2001 (Cth).
The financial statements were authorised for issue on 4 August 2020 by the directors of the Company.
a. Basis of preparation
The financial statements comprise the consolidated financial statements of the Group. For the purposes of preparing the
consolidated financial statements, the Company is a for-profit entity. Material accounting policies adopted in the preparation of
these financial statements are presented below. They have been consistently applied unless otherwise stated.
i. Statement of compliance
These financial statements are general purpose financial statements which have been prepared in accordance with Australian
Accounting Standards and Interpretations of the Australian Accounting Standards Board (AAS Board) and International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and the Corporations
Act 2001 (Cth).
Australian Accounting Standards (AASBs) set out accounting policies that the AAS Board has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions to which they apply.
Compliance with AASBs ensures that the financial statements and notes also comply with IFRS as issued by the IASB.
ii. Going Concern
The financial statements have been prepared on the basis of going concern which contemplates continuity of normal business
activities and the realisation of assets and settlement of liabilities in the ordinary course of business.
As disclosed in the financial statements, the consolidated entity incurred a loss of $492,618 (2019: $734,233) and had net
cash outflows from operating and investing activities of $378,848 (2019: $560,134) and $211,793 (2019: $109,810)
respectively for the year ended 30 June 2020. As at that date, the consolidated entity had net current assets of $42,705
(2019: $717,532).
These factors indicate a material uncertainty which may cast significant doubt as to whether the consolidated entity will
continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course
of business and at the amounts stated in the financial report.
The Directors believe that there are reasonable grounds to believe that the consolidated entity will be able to continue as a
going concern, after consideration of the following factors:
The Directors are confident the Group has the ability to raise further funds through capital raisings as and when
1.
required to satisfy its operational expenditure commitments.
The consolidated entity has the ability to scale down its operations in order to curtail expenditure, in the event capital
2.
raisings are delayed or insufficient cash is available to meet projected expenditure.
Accordingly, the Directors believe that the consolidated entity will be able to continue as a going concern and that it is
appropriate to adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities
that might be necessary if the consolidated entity does not continue as a going concern.
iii. Use of estimates and judgments
The preparation of consolidated financial statements requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of assets and liabilities, income and expenses. These estimates
and associated assumptions are based on historical experience and various factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.
P a g e | 19
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 1
Statement of significant accounting policies
Judgements made by management in the application of AASBs that have significant effect on the consolidated financial
statements and estimates with a significant risk of material adjustment in the next year are discussed in note 1e.
iv. Comparative figures
Where required by AASBs comparative figures have been adjusted to conform with changes in presentation for the current
financial year.
Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its
financial statements, an additional (third) statement of financial position as at the beginning of the preceding period in
addition to the minimum comparative financial statements is presented.
b. Accounting Policies
The Group has consistently applied the following accounting policies to all periods presented in the financial statements. The
Group has considered the implications of new and amended Accounting Standards applicable for annual reporting periods but
determined that their application to the financial statements is either not relevant or not material.
c. Basis of consolidation
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial
statements as well as their results for the year then ended. Where controlled entities have entered (left) the Consolidated Group
during the year, their operating results have been included (excluded) from the date control was obtained (ceased).
d. Foreign currency transactions and balances
i. 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 and presentation currency.
ii. Transaction 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 the 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 gain or loss is directly recognised in other comprehensive income, otherwise the exchange
difference is recognised in the profit or loss.
iii. Group companies and foreign operations
The financial results and position of foreign operations whose functional currency is different from the Group's presentation
currency are translated as follows:
⚫ assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
⚫
income and expenses are translated at average exchange rates for the period; and
⚫ retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group's foreign currency
translation reserve in the statement of financial position. These differences are recognised in the profit or loss in the period
in which the operation is disposed.
e. Critical Accounting Estimates and Judgments
The Directors evaluate estimates and judgments incorporated into the financial report 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.
P a g e | 20
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 1
Statement of significant accounting policies
i. Key Judgments – Exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current. These costs are
carried forward in respect of an area that has not at reporting date reached a stage that permits reasonable assessment of
the existence of economically recoverable reserves. The carrying value of capitalised expenditure at reporting date is
$307,309 (2019: $113,602).
During the financial year, the Group undertook assessment of its tenement assets, as a result of this assessment, the Group
decided to impair some of its exploration assets. Refer Note 10.
ii. Key Judgments – Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental
legislation, and the directors understanding thereof. At the current stage of the Group’s development and its current
environmental impact, the directors believe such treatment is reasonable and appropriate.
iii. Key Estimate – Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of
directors. These estimates take into account both the financial performance and position of the company as they pertain to
current income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or
future taxation legislation. The current income tax position represents that directors' best estimate, pending an assessment
by tax authorities in relevant jurisdictions. Refer Note 6 Income Tax.
iv. Key judgements and estimates – Share-based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes
option pricing model, using the assumptions detailed in note 18 Share-based payments.
v. Key judgements and estimates – Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to
impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use
calculations performed in assessing recoverable amounts incorporate a number of key estimates.
f. New, revised or amending Accounting Standards and Interpretations
In the year ended 30 June 2020, the Directors have reviewed all of the new and revised Standards and Interpretations issued
by the AASB that are relevant to the Group and effective for the current annual reporting period. Those which have a material
impact on the Group are set out below.
P a g e | 21
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 1
Statement of significant accounting policies
AASB 16 Leases
(i)
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees
eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the operating
expense is now replaced by interest expense and depreciation in profit or loss. For classification within the statement of cash
flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments are separately
disclosed in financing activities. For lessor accounting, the standard does not substantially change how a lessor accounts for
leases.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the
end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The consolidated entity has not recognised a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets, as it does not have an operating lease commitment.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on
an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written
down.
g. New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020. The consolidated
entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the
consolidated entity, are set out below.
i. Other standards not yet applicable
The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet adopted for the
year ended 30 June 2020. As a result of this review the Directors have determined that there is no material impact of the
Standards and Interpretations in issue not yet adopted on the Group and, therefore, no change is necessary to Group
accounting policies.
P a g e | 22
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Note 2
Company details
The registered office and principal place of business of the
Company is:
Address: Suite 12, Level 1
11 Ventnor Avenue
PO Box 1240
WEST PERTH WA 6005
Postal:
WEST PERTH WA 6872
Telephone:
Facsimile:
+61 (08) 6245 2050
+61 (08) 6245 2055
P a g e | 23
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 3
Revenue and other income
a. Revenue
Interest
b. Other Income
Foreign exchange gain/(loss)
Note 4
Profit / (loss) before income tax
The following significant revenue and expense items are relevant in explaining
the financial performance:
a. Employment costs:
⚫ Directors’ fees
b. Impairment:
⚫
Impairment of exploration and evaluation assets
Note 5
Auditor's remuneration
Remuneration of the auditor of the Ragnar Limited for:
⚫ Auditing or reviewing the financial reports:
Bentleys (Australia)
⚫ Taxation services provided by a related practice of the Auditor
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
2020
$
520
520
(11,247)
(11,247)
2020
$
68,200
68,200
17,046
17,046
2020
$
25,210
4,400
29,610
2019
$
4,666
4,666
-
-
2019
$
121,158
121,158
226,307
226,307
2019
$
26,658
2,780
29,438
P a g e | 24
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 6
Income tax
a.
Income tax expense / (benefit)
Current tax
Deferred tax
Deferred income tax expense included in income tax expense comprises:
⚫
⚫
Increase / (decrease) in deferred tax assets
(Increase) / decrease in deferred tax liabilities
6e
6f
Note
2020
$
2019
$
-
-
-
-
-
-
-
-
-
-
-
-
b. Reconciliation of income tax expense to prima facie tax payable
The prima facie tax payable / (benefit) on loss from ordinary activities before
income tax is reconciled to the income tax expense as follows:
(492,618)
(734,233)
Prima facie tax on operating loss at 27.5% (2019: 27.5%)
(135,470)
(201,914)
Add / (Less)
Tax effect of:
⚫ Other non-allowable items
⚫ Capital raising costs deductible
⚫ Deferred tax asset not brought to account
⚫ Adjustment in respect of unrecognised deferred tax of previous year
Income tax expense / (benefit) attributable to operating loss
25,840
948
16,977
91,705
-
74,348
(6,105)
133,671
-
-
c. The applicable weighted average effective tax rates attributable to operating
profit are as follows
27.5 2 27.5
d. Balance of franking account at year end of the legal parent
nil
nil
P a g e | 25
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 6
Income tax (cont.)
e. Deferred tax assets
Tax losses
Provisions and accruals
Capital Losses
Other
Set-off deferred tax liabilities
Net deferred tax assets
Less deferred tax assets not recognised
Net tax assets
f. Deferred tax liabilities
Other
Set-off deferred tax assets
Net deferred tax liabilities
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Note
2020
$
2019
$
2,762,642
2,818,675
-
334,571
16,526
-
364,987
16,994
3,113,739
3,113,739
3,200,656
3,200,656
(3,113,739)
(3,200,656)
-
-
-
-
-
-
-
-
-
-
6f
6e
g. Tax losses and deductible temporary differences
Unused tax losses for which no deferred tax asset has been recognised,
Unused capital losses for which no deferred tax asset has been recognised
Potential tax benefit at 27.5% (2019: 27.5%)
10,045,970
1,216,623
9,984,236
1,216,623
3,097,213
3,080,236
As the Company is seeking to generate non-assessable, non-exempt income in Chile, for the purposes of the Australian head
entity, a record of prior tax losses is kept but no tax balances have been recognised.
The tax benefits of the above deferred tax assets will only be obtained if:
a)
the company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be
utilized;
the company continues to comply with the conditions for deductibility imposed by law; and
b)
c) no changes in income tax legislation adversely affect the company in utilising the benefits.
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in
joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary
difference will reverse in the foreseeable future and taxable profit will be available against which the temporary
difference can be utilised.
P a g e | 26
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 6
Income tax (cont.)
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation
authority.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which
case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable;
and
receivables and payables, which are stated with the amount of GST included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in
the statement of financial position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
Note 7
Earnings per share (EPS)
a. Reconciliation of earnings to profit or loss
(Loss) / profit for the year
Note
2020
$
2019
$
(492,618)
(734,233)
⚫
Loss from continuing operations used in the calculation of basic EPS
(492,618)
(734,233)
b. Weighted average number of ordinary shares outstanding during the year
used in calculation of basic EPS
7d
313,424,062
313,424,062
2020
No.
2019
No.
c. Earnings per share
From continuing operations
Basic EPS (cents per share)
2020
₵
(0.16)
(0.16)
7d
2019
₵
(0.23)
(0.23)
d. At the end of the 2020 financial year, the Group has 96,500,001 unissued shares under options (2019: 93,500,001). The Group
does not report diluted earnings per share on annual losses generated by the Group.
P a g e | 27
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 8
Cash and cash equivalents
a. Current
Cash at bank
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
2020
$
2019
$
142,060
732,949
142,060
732,949
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined
above, net of outstanding bank overdrafts.
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one and three months, depending on the immediate cash
requirements of the Company, and earn interest at the respective short-term deposit rates.
b. The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 23
Financial risk management.
c. Cash Flow Information
Note
2020
$
2019
$
i. Reconciliation of cash flow from operations to (loss)/profit after income tax
Loss after income tax
(492,618)
(734,233)
Cash flows excluded from (loss)/profit attributable to operating activities
Non-cash flows in (loss)/profit from ordinary activities:
⚫
⚫
⚫
Impairments
Share-based payments
Foreign exchange loss
⚫ Other
Changes in assets and liabilities:
⚫
⚫
(Increase)/decrease in receivables
Increase/(decrease) in trade and other payables
Cash flow from operations
d. Credit standby facilities
The Group has no credit standby facilities.
e. Non-cash investing and financing activities
18
17,046
8,900
11,247
(7,361)
21,895
62,043
226,307
-
-
16,849
17,127
(86,364)
(378,848)
(560,314)
There were no non-cash investing or financing activities in the current or previous financial year.
P a g e | 28
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 9
Trade and other receivables
a. Current
GST and VAT receivable
Other receivables
2020
$
18,881
3,987
22,868
2019
$
21,029
23,734
44,763
Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised cost using
the effective interest rate method, less provision for impairment. Trade receivables are generally due for settlement within
periods ranging from 15 days to 30 days.
Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written off by
reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Group will
not be able to collect all amounts due according to the original contractual terms. Factors considered by the Group in making
this determination include known significant financial difficulties of the debtor, review of financial information and significant
delinquency in making contractual payments to the Group. The impairment allowance is set equal to the difference between
the carrying amount of the receivable and the present value of estimated future cash flows, discounted at the original
effective interest rate. Where receivables are short-term discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in the statement of comprehensive income within other expenses. When a
trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is
written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other
expenses in the statement of profit or loss and other comprehensive income.
Expected credit losses
The Group applies the AASB 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these
items do not have a significant financing component.
Where applicable, in measuring the expected credit losses, the trade receivables are assessed on a collective basis as they
possess shared credit risk characteristics. They are grouped based on the days past due and also according to the geographical
location of customers.
The expected loss rates are based on the payment profile for sales over the past 48 months before 30 June 2020 and 30 June
2019 respectively as well as the corresponding historical credit losses during that period. The historical rates are adjusted to
reflect current and forwarding looking macroeconomic factors affecting the customer’s ability to settle the amount
outstanding.
Trade receivables are written off when there is no reasonable expectation of recovery. Failure to make payments within 180
days from the invoice date and failure to engage with the Group on alternative payment arrangement amongst other is
considered indicators of no reasonable expectation of recovery.
b. The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 23
Financial risk management.
P a g e | 29
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 10 Exploration and evaluation assets
Note
a. Non-current
Carrying amount at beginning of period
Exploration expenditure capitalised
Impairment and exploration activities written off
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
2020
$
113,602
210,753
(17,046)
2019
$
230,099
109,810
(226,307)
Carrying amount at the end of the year
307,309
113,602
b. Recoverability of the carrying amount of exploration assets is dependent on the successful exploration of the areas of interest.
c. During the year the Company reviewed the capitalised exploration, resulting in an impairment loss of $17,046 respecting in
relation to the Scandinavian projects. (2019: $176,307 – Scandinavian Projects; $50,000 - Nambia) being recognised.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases are dependent
on the successful development and commercial exploitation or sale of the respective areas.
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and
evaluation asset in the year in which they are incurred where the following conditions are satisfied:
•
the rights to tenure of the area of interest are current; and
• at least one of the following conditions is also met:
the exploration and evaluation expenditures are expected to be recouped through successful development and
i)
exploitation of the area of interest, or alternatively, by its sale; or
ii)
exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant
operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory
drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised of assets used in
exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and
evaluation costs where they are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount
of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and
evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest)
is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the
carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration
and evaluation asset is tested for impairment and the balance is then reclassified to development.
P a g e | 30
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 11 Trade and other payables
a. Current
Unsecured
Trade payables
Accruals
Employment related payables
Note
11b
2020
$
78,958
25,750
17,515
122,223
2019
$
21,165
21,500
17,515
60,180
b. Trade payables are non-interest bearing and usually settled within the lower of terms of trade or 45 days.
c. The Group's exposure to interest rate risk and a sensitivity analysis for financial assets and liabilities are disclosed in note 23
Financial risk management.
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the
Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments
in respect of the purchase of these goods and services. Trade and other payables are presented as current liabilities unless
payment is not due within 12 months.
Note 12
Issued capital
Note
2020
No.
2019
No.
2020
$
2019
$
Fully paid ordinary shares at no par value
12a
313,424,062
313,424,062
28,641,237
28,641,237
a. Ordinary shares
At the beginning of the period
Shares issued during the year:
⚫ Unmarketable parcel buy back
Transaction costs relating to share
issues
313,424,062
313,424,062
28,641,237
28,641,237
-
-
-
-
(65)
-
(65)
-
At reporting date
313,424,062
313,424,062
28,641,172
28,641,172
b. Options
Options
At the beginning of the period
Options issued/(lapsed) during the
year:
⚫ 1.5 cent options expiring 2 Sept
2022
At reporting date
2019
No.
2018
No.
2019
$
2018
$
93,500,001
93,500,001
343,490
343,490
93,500,001
93,500,001
343,490
343,490
3,000,000
-
8,900
-
96,500,001
93,500,001
352,390
343,490
P a g e | 31
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 12
Issued capital (cont.)
Terms of Ordinary Shares
Voting rights
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares
held and in proportion to the amount paid up on the shares held.
At shareholders meetings, each ordinary share is entitled to one vote in proportion to the paid-up amount of the share when a
poll is called, otherwise each shareholder has one vote on a show of hands.
Note 13 Capital Management
The Directors’ objectives when managing capital are to ensure that the Group can fund its operations and continue as a going
concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders. Due to the nature
of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary
source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the current working capital
position against the requirements of the Group to meet exploration programmes and corporate overheads.
The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to
initiating appropriate capital raisings as required.
The working capital position of the Group were as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Working capital position
Note 14 Reserves
Option reserve
Foreign exchange reserve
Share-based payment reserve
a. Option reserve
Note
8
9
111
Note
14a
14b
14c
2020
$
142,060
22,868
(122,223)
2019
$
732,949
44,763
(60,180)
42,705
717,532
2020
$
2019
$
352,390
343,490
(26,657)
525,944
(29,255)
525,944
851,677
840,179
The option reserve records items recognised as expenses on the value of directors and employee equity issues. Please refer
Note 18 for further information.
b. Foreign exchange translation reserve
The foreign exchange reserve records exchange differences arising on translation of foreign controlled subsidiaries.
c. Share-based payments reserve
The share-based payments reserve records shares which have been granted as share-based payments at year end but not
issued.
P a g e | 32
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 15 Controlled entities
Ragnar Metals Limited is the ultimate parent of the Group.
a. Subsidiaries
Country of
Incorporation
⚫ Drake Resources Sweden AB
Sweden
⚫ Drake Resources UK Limited
United Kingdom
⚫ Drake (Euro) Pty Ltd
⚫ Ragnar Sweden AB
Australia
Sweden
b. Investments in subsidiaries are accounted for at cost.
Note 16 Key Management Personnel compensation (KMP)
Class of
Shares
Ordinary
Ordinary
Ordinary
Ordinary
Percentage Owned
2020
100.0
100.0
100.0
100.0
2019
100.0
100.0
100.0
100.0
The names are positions of KMP are as follows:
• Ms Sara Kelly
Non-executive Chairman (resigned 2 September 2019)
• Mr Steve Formica Non-executive Chairman (appointed 2 September 2019)
• Mr Ariel (Eddie) King
• Mr James Scovell
• Mr David Wheeler
Non-executive Director (resigned 31 December 2019)
Non-executive Director
Non-executive Director
Information regarding individual directors and executives’ compensation and some equity instruments disclosures as required
by the Corporations Regulations 2M.3.03 is provided in the Remuneration report.
Short-term employee benefits – Note (a)
Share-based payments
Total
2020
$
150,000
8,900
x
2019
$
154,000
-
158,900
154,000
(a) Of the total balance, $81,800 (2019: $32,842) was capitalised as exploration expenditure.
Note 17 Related party transactions
2020
$
2019
$
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated.
a. Transactions with KMP
b. Edwards Mac Scovell
Ms Kelly, Non-executive Chairman of the Company is a Partner of Edwards
Mac Scovell who provide legal services to the Group.
151,034
23,994
c. Transactions with KMP
⚫ Amounts due (to) / from Edwards Mac Scovell
(58,792)
-
d. Balances and transactions between Ragnar Metals Limited and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not discussed in this note. Details of transactions between the Group and
other related parties are disclosed above.
Details of KMP remuneration are disclosed in Note 16.
P a g e | 33
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 18 Share-based payments
Share-based payment expense
Gross share-based payments
a. The following share-based payment arrangements existed at 30 June 2020
i. Share-based payments – Share options
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Note
18a
2020
$
8,900
8,900
2019
$
-
-
⚫ On 4 May 2017 the company issued 14,000,000 Director options at an exercise price of $0.03 each, exercisable on or
before 4 May 2021.
⚫ On 8 June 2017 the company issued 35,000,001 and 2,000,000 Director options at an exercise price of $0.02 and $0.03
each, exercisable on or before 8 June 2021.
⚫ On 14 June 2017 the company issued 17,500,000 Adviser options at an exercise price of $0.02 each, exercisable on or
before 13 June 2021.
⚫ On 15 March 2018 the company issued 11,000,000 Director options at an exercise price of $0.025 each, exercisable
on or before 8 June 2021.
⚫ On 15 March 2018 the company issued 14,000,000 Advisor options at an exercise price of $0.025 each, exercisable
on or before 8 June 2021.
⚫ On 29 Aug 2019 the company issued 3,000,000 Formica options at an exercise price of $0.015 each, exercisable on or
before 2 September 2022.
At balance date, no share options have been exercised.
b. Movement in share-based payment arrangements during the period
A summary of the movements of all company options issued as share-based payments is as follows:
Outstanding at the beginning of the year
Granted
Outstanding at year-end
Exercisable at year-end
2020
2019
Number of
Options
Weighted
Average
Exercise Price
Number of
Options
Weighted
Average Exercise
Price
93,500,001
3,000,000
96,500,001
96,500,001
$0.0230
$0.0150
$0.0228
$0.0228
93,500,001
$0.0230
-
93,500,001
93,500,001
-
$0.0230
$0.0230
i. The company’s share options hold no voting or dividend rights and are not transferable. At balance date, no options
had been exercised or expired.
ii. All options granted are for ordinary shares in Ragnar Metals Limited, which confer a right to one ordinary share for
every option held. All options have vested as at balance date.
iii. The weighted average remaining contractual life of options outstanding at year end was 0.967 years (2019: 1.931
years). The weighted average exercise price of outstanding options at the end of the reporting period was $0.0228
(2019: $0.023).
P a g e | 34
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 18 Share-based payments
c. Fair value of options grants during the period
During the year, the Company issued unlisted options to the Company’s Non-executive Chairman, Steve Formica as part of
his employment package.
Number of Options
3,000,000
Expiry Date
2 Sept 2022
Exercise Price
$0.015
The fair value of the Incentive Options granted during the period are estimated at the date of grant using the Black Scholes
option pricing model and based on the assumptions set out below:
Number of Options
Expiry Date
Assumptions:
Valuation date
Market price of Shares
Exercise price
Expiry date
Risk free interest rate
Dividend Yield
Expected future volatility
Vesting milestone (Time in office)
29 Aug 2019
$0.007
$0.015
2 Sept 2022
0.78%
0
112%
-
Indicative value per Unlisted Option
$0.00297
Number of options
Total Value of Unlisted Options $
3,000,000
8,900
The options have been valued in accordance with AASB 2 Share Based Payments and bought to account. A value of $8,900
has been expensed for the half year.
Note 19 Commitments
The Company had no capital or other expenditure commitments at 30 June 2020 (2019: $Nil).
P a g e | 35
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Note 20 Contingent asset/liabilities
On 21 November 2019, the Group announced that it has entered into a binding heads of agreement (“HOA”) with 2617818
Ontario Inc (“Ontario Inc”), setting out terms that the Group has agreed to grant an option to Ontario Inc to acquire Ragnar’s
100% interest in exploration permit 2014:91, Gaddeno nr 3, located in Bergslagen District, Sweden.
Ontario Inc has paid a non-refundable option fee of €10,000 (“Option Fee”) on the execution of the binding HOA for the
acquisition of the Tenement (“Acquisition”). In consideration, Ragnar grants Ontario an option from the date of execution of the
HOA (“Execution Date”) until that date that is 48 months following the Commencement Date (defined below), or such later date
as the Parties agree in writing (“Option Deadline Date”) (“Option Period”) to acquire the Vendor’s interest in the Tenement, on
the terms and conditions of the HOA (“Option”).
Subject to exercising any rights of withdrawal, Ontario Inc agrees to:
(i) Spend a minimum of €30,000 on exploration on the Tenement in the 12 months following the earlier of the date the Work
Approval is obtained, or the Work Confirmation Notice is given (“Commencement Date”);
(ii) Spend a minimum of €180,000 on exploration on the Tenement in the 24 months following the Commencement Date;
(iii) Spend a minimum of €380,000 on exploration on the Tenement in the 36 months following the Commencement Date;
(iv) Spend a minimum of €780,000 on exploration on the Tenement in the 48 months following the Commencement Date,
(together the “Expenditure Commitments”).
Consideration payable to the Group of the Tenement are:
(i) Pay the Group a non-refundable amount of €20,000 on or before the date that is 12 months from the Commencement Date;
(ii) Pay the Group a non-refundable amount of €30,000 on or before the date that is 24 months from the Commencement Date;
(iii) Pay the Group a non-refundable amount of €50,000 on or before the date that is 36 months from the Commencement Date;
(iv) Pay the Group a non-refundable amount of €2,000,000 on Settlement (defined below), being on or before the date that is 48
months from the Commencement Date;
(together the “Payments” with the date of each Payment is made being a “Payment Date”).
Settlement of the Option is subject to and conditional upon the satisfaction of conditions precedent as announced on 21
November 2019.
Note 21 Operating segments
a.
Identification of reportable segments
The Group operates in the exploration and evaluation of nickel, gold, silver and base metals projects. Inter-segment
transactions are priced at cost to the Consolidated Group.
The Group has identified its operating segments based on the internal reports that are provided to the Board of Directors on
a monthly basis. Management has identified the operating segments based on the one principal activity (2019: one principal
location - Scandinavia) of mineral exploration. Corporate expenses include administration and regulatory expenses arising
from operating an ASX listed entity. Segment assets include the costs to acquire tenements and the capitalised exploration
costs of those tenements. Financial assets including cash and cash equivalents, and investments in financial assets, are
reported in the Treasury segment.
b. Basis of accounting for purposes of reporting by operating segments
i. Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board, 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.
ii.
Inter-segment transactions
An internally determined transfer price is set for all inter-segment sales. This price is reset quarterly and is based on what
would be realised in the event the sale was made to an external party at arm’s length. All such transactions are eliminated
on consolidation of the Group’s financial statements.
Corporate charges are allocated to reporting segments based on the segments’ overall proportion of revenue generation
within the Group. The Board of Directors believes this is representative of likely consumption of head office expenditure
that should be used in assessing segment performance and cost recoveries.
P a g e | 36
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Inter-segment loans payable and receivable are initially recognised at the consideration received/to be received net of
transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these are not adjusted to
fair value based on market interest rates. This policy represents a departure from that applied to the statutory financial
statements
iii. 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.
iv. 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. Borrowings and tax liabilities are generally considered to relate to the Group as a whole and
are not allocated. Segment liabilities include trade and other payables and certain direct borrowings.
v. 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:
⚫
⚫
Impairment of assets and other non-recurring items of revenue or expense
Income tax expense
⚫ Deferred tax assets and liabilities
⚫ Current tax liabilities
⚫ Other financial liabilities
Exploration
$
Corporate
$
Total
$
-
520
520
(13,069)
(479,549)
(492,618)
(17,046)
316,557
155,680
472,237
(12,191)
(110,032)
(122,223)
For the Year to 30 June 2020
Revenue
Total segment revenue
Segment net/profit (loss) from continuing operations before tax
Reconciliation of segment loss to group loss
(i) Amounts included in segment results:
⚫
Impairment expenses
As at 30 June 2020
Segment Assets
Segment Liabilities
P a g e | 37
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 21 Operating segments (cont.)
For the Year to 30 June 2019
Revenue
Total segment revenue
Segment net/profit (loss) from continuing operations before tax
Reconciliation of segment loss to group loss
(i) Amounts included in segment results:
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Exploration
$
Corporate
$
Total
$
-
4,666
4,666
(226,307)
(507,926)
(734,233)
⚫
Impairment expenses
(226,307)
-
(226,307)
As at 30 June 2019
Segment Assets
Reconciliation of segment assets to group assets
Trade and other receivables
Total assets
Segment asset increases for the year:
Impairment of exploration assets
Other movements
Segment Liabilities
Reconciliation of segment liabilities to group liabilities
⚫ Trade and other payables
Total liabilities
Note
22 Events subsequent to reporting date
113,602
732,949
846,551
-
(226,307)
109,810
(116,497)
-
-
(670,015)
(670,015)
(13,848)
(46,332)
44,763
891,314
(226,307)
(560,205)
(786,512)
(60,180)
(60,180)
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the
Group’s operations, the results of those operations, or the Group's state of affairs in future financial years.
P a g e | 38
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 23 Financial risk management
a. Financial Risk Management Policies
This note presents information about the Group's exposure to each of the above risks, its objectives, policies and procedures
for measuring and managing risk, and the management of capital.
The Group's financial instruments consist mainly of deposits with banks, short-term investments, and accounts payable and
receivable.
The Group does not speculate in the trading of derivative instruments.
A summary of the Group's Financial Assets and Liabilities is shown below:
Floating
Interest
Rate
$
Financial Assets
⚫ Cash and cash equivalents
142,060
⚫ Trade and other receivables
-
Total Financial Assets
142,060
Fixed
Interest
Rate
$
-
-
-
Non-
interest
Bearing
$
2020
Total
$
Floating
Interest
Rate
$
-
142,060
732,949
22,868
22,868
-
22,868
164,928
732,949
Financial Liabilities
Financial liabilities at
amortised cost
⚫ Trade and other payables
Total Financial Liabilities
Net Financial
Assets/(Liabilities)
-
-
-
-
(122,223)
(122,223)
(122,223)
(122,223)
-
-
142,060
-
(99,355)
42,705
732,949
Fixed
Interest
Rate
Non-
interest
Bearing
2019
Total
$
732,949
$
-
44,763
44,763
44,763
777,712
(60,180)
(60,180)
(60,180)
(60,180)
(15,417)
717,532
$
-
-
-
-
-
-
b. Specific Financial Risk Exposures and Management
The main risk the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting
of interest rate, foreign currency risk and equity price risk.
The Board of directors has overall responsibility for the establishment and oversight of the risk management framework. The
Board adopts practices designed to identify significant areas of business risk and to effectively manage those risks in
accordance with the Group's risk profile. This includes assessing, monitoring and managing risks for the Group and setting
appropriate risk limits and controls. The Group is not of a size nor is its affairs of such complexity to justify the establishment
of a formal system for risk management and associated controls. Instead, the Board approves all expenditure, is intimately
acquainted with all operations and discuss all relevant issues at the Board meetings. The operational and other compliance
risk management have also been assessed and found to be operating efficiently and effectively.
i. Credit risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract
obligations that could lead to a financial loss to the Group.
The Group does not have any material credit risk exposure to any single receivable or group of receivables under financial
instruments entered into by the Group.
The objective of the Group is to minimise the risk of loss from credit risk. Although revenue from operations is minimal,
the Group trades only with creditworthy third parties.
P a g e | 39
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 23 Financial risk management (cont.)
In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts
is insignificant. The Group's maximum credit risk exposure is limited to the carrying value of its financial assets as
indicated on the statement of financial position.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and
other receivables.
⚫ Credit risk exposures
The maximum exposure to credit risk is that to its alliance partners and that is limited to the carrying amount, net of
any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the
financial statements.
Credit risk related to balances with banks and other financial institutions is managed by the Group in accordance with
approved Board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard
and Poor’s rating of at least AA-.
ii. Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group's
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Group's reputation.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash
and marketable securities are available to meet the current and future commitments of the Group. Due to the nature of
the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with the
primary source of funding being equity raisings. The Board of Directors constantly monitor the state of equity markets in
conjunction with the Group’s current and future funding requirements, with a view to initiating appropriate capital
raisings as required. Any surplus funds are invested with major financial institutions.
The financial liabilities of the Group are confined to trade and other payables as disclosed in the Statement of financial
position. All trade and other payables are non-interest bearing and due within 30 days of the reporting date.
The financial liabilities of the Group are confined to trade and other payables as disclosed in the statement of financial
position. All trade and other payables are non-interest bearing and due within 30 days of the reporting date.
⚫ Contractual Maturities
The following are the contractual maturities of financial liabilities of the Group:
Within 1 Year
2020
$
2019
Greater Than 1 Year
2020
$
2019
$
Total
2020
$
Financial liabilities due for payment
Trade and other payables
122,223
60,180
Total contractual outflows
122,223
60,180
Financial assets
Cash and cash equivalents
Trade and other receivables
142,060
22,868
732,949
44,763
Total anticipated inflows
164,928
777,712
Net (outflow)/inflow on financial
instruments
42,705
717,532
-
-
-
-
-
-
-
-
-
-
-
-
2019
$
60,180
60,180
732,949
44,763
122,223
122,221
142,060
22,868
164,928
777,712
42,705
717,532
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier or at
significantly different amounts.
P a g e | 40
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 23 Financial risk management (cont.)
iii. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Board
meets on a regular basis and considers the Group's interest rate risk.
(1) Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting
period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial
instruments. The Group is also exposed to earnings volatility on floating rate instruments.
Due to the low amount of debt exposed to floating interest rates, interest rate risk is not considered a high risk to
the Group. Movement in interest rates on the Group's financial liabilities and assets is not material.
(2) Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating
due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are
other than the AUD functional currency of the Group.
With instruments being held by overseas operations, fluctuations in foreign currencies may impact on the Group’s
financial results. The Group’s exposure to foreign exchange risk is minimal; however the Board continues to review
this exposure regularly.
(3) Price risk
Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. The Group does not presently hold material amounts subject to price risk. As such the
Board considers price risk as a low risk to the Group.
iv. Sensitivity Analysis
The following table illustrates sensitivities to the Group's exposures to changes in interest rates. The table indicates the
impact on how profit and equity values reported at balance sheet date would have been affected by changes in the
relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the
movement in a particular variable is independent of other variables.
(1) Interest rates
Year ended 30 June 2020
±100 basis points change in interest rates
Year ended 30 June 2019
±100 basis points change in interest rates
v. Net Fair Values
(1) Fair value estimation
Profit
$
Equity
$
±3,917
±3,917
±7,342
±7,342
The fair values of financial assets and financial liabilities are presented in the table in note 23a and can be compared
to their carrying values as presented in the statement of financial position. Fair values are those amounts at which
an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length
transaction.
Financial instruments whose carrying value is equivalent to fair value due to their nature include:
⚫
Cash and cash equivalents;
⚫
⚫
Trade and other receivables; and
Trade and other payables.
The methods and assumptions used in determining the fair values of financial instruments are disclosed in the
accounting policy notes specific to the asset or liability.
P a g e | 41
Notes to the consolidated financial statements
for the year ended 30 June 2020
Note 24 Parent entity disclosures
a. Financial Position of Ragnar Metals Limited
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
b. Financial performance of Ragnar Metals Limited
Profit / (loss) for the year
Other comprehensive income
Total comprehensive income
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
2020
$
130,890
431,341
562,231
106,820
106,820
2019
$
757,514
113,602
871,116
46,332
46,332
455,411
824,784
28,641,172
28,641,172
878,334
840,179
(29,064,095)
(28,656,567)
455,411
824,784
(407,528)
(740,582)
-
-
(2,058,932)
(740,582)
c. Guarantees entered into by Ragnar Metals Limited for the debts of its subsidiaries
There are no guarantees entered into by Ragnar Resource for the debts of its subsidiaries as at 30 June 2020 (2019: none).
d. Commitments of Ragnar Metals Limited
The amounts applicable for both Ragnar Metals Limited (the parent) and the Consolidated Group can be found in Note 19.
P a g e | 42
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Directors' declaration
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 15 to 42, are in accordance with the Corporations Act 2001 (Cth)
and:
(a) comply with Accounting Standards;
(b) are in accordance with International Financial Reporting Standards issued by the International Accounting Standards
Board, as stated in note 1 to the financial statements; and
(c) give a true and fair view of the financial position as at 30 June 2020 and of the performance for the year ended on that
date of the Group.
(d) the Directors have been given the declarations required by s.295A of the Corporations Act 2001 (Cth);
2.
in the directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
directors by:
STEVE FORMICA
Chairman
Dated 4 August 2020
P a g e | 43
Independent Auditor's Report
To the Members of Ragnar Metals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Ragnar Metals Limited (“the Company”) and its
subsidiaries (“the Consolidated Entity”), which comprises the consolidated statement of
financial position as at 30 June 2020, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with
the Corporations Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as
at 30 June 2020 and of its financial performance for the year then ended;
and
(ii)
complying with Australian Accounting Standards and the Corporations
Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards
as disclosed in Note 1.
Basis for Opinion
further described
those standards are
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under
the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Consolidated Entity in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting
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.
in
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independent Auditor’s Report
To the Members of Ragnar Metals Limited (Continued)
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report which indicates that the Consolidated Entity incurred a net
loss of $492,618 during the year ended 30 June 2020. As stated in Note 1, these events or conditions, along
with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt
on the Consolidated Entity’s ability to continue as a going concern. Our opinion is not modified in this 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.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation – $307,309
Our procedures included, amongst others:
(Refer Note 10)
Exploration and evaluation is a key audit matter due
to:
The significance of
the balance
to
the
Consolidated Entity’s financial position.
The level of judgement required in evaluating
management’s application of the requirements of
AASB 6 Exploration for and Evaluation of Mineral
Resources. AASB 6 is an industry specific
accounting standard requiring the application of
significant judgements, estimates and industry
knowledge. This includes specific requirements
for expenditure to be capitalised as an asset and
subsequent
requirements which must be
complied with for capitalised expenditure to
continue to be carried as an asset.
The assessment of impairment of exploration and
evaluation expenditure being inherently difficult.
Assessing management’s determination of its
areas of interest for consistency with the definition
in AASB 6. This involved analysing the tenements
in which the consolidated entity holds an interest
and the exploration programmes planned for
those tenements.
For each area of interest, we assessed the
to
tenure by
rights
Consolidated Entity’s
registries and
to government
corroborating
evaluating agreements in place with other parties
as applicable;
We tested the additions to capitalised expenditure
for the year by evaluating a sample of recorded
capitalisation
expenditure for consistency to underlying records,
the
the
Consolidated Entity’s accounting policy and the
requirements of AASB 6;
requirements
of
We considered the activities in each area of
interest to date and assessed the planned future
activities for each area of interest by evaluating
budgets for each area of interest.
We assessed each area of interest for one or
more of the following circumstances that may
indicate
capitalised
expenditure:
impairment
the
of
the licenses for the right to explore expiring in
the near future or are not expected to be
renewed;
Independent Auditor’s Report
To the Members of Ragnar Metals Limited (Continued)
Key audit matter
How our audit addressed the key audit matter
substantive expenditure for further exploration
in the specific area is neither budgeted or
planned
decision or intent by the Consolidated Entity to
discontinue activities in the specific area of
interest due to lack of commercially viable
quantities of resources; and
data indicating that, although a development
in the specific area is likely to proceed, the
carrying amount of the exploration asset is
unlikely to be recovered in full from successful
development or sale.
We assessed the appropriateness of the related
disclosures in note 10 to the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Consolidated Entity’s annual report for the year ended 30 June 2020, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Independent Auditor’s Report
To the Members of Ragnar Metals Limited (Continued)
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 Note 1, the directors also
state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that
the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability 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 Consolidated Entity 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 the 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 Consolidated Entity’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 Consolidated Entity’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 Consolidated Entity to cease to continue as a going concern.
Independent Auditor’s Report
To the Members of Ragnar Metals Limited (Continued)
−
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 Consolidated Entity to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the Consolidated Entity audit. We remain solely
responsible for our audit opinion.
We communicate with the directors 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
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2020.
The directors of the Company are responsible for the preparation and presentation of the remuneration report in
accordance with s 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.
Auditor’s Opinion
In our opinion, the Remuneration Report of Ragnar Metals Limited, for the year ended 30 June 2020, complies
with section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
Mark Delaurentis CA
Partner
Dated at Perth this 4th day of August 2020
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2020
Additional Information for Listed Public Companies
The following additional information is required by the Australian Securities Exchange in respect of listed public companies.
1
Capital
a. Ordinary share capital as at 30 July 2020
313,242,062 ordinary fully paid shares held by 445 shareholders.
b. Unlisted Options over Unissued Shares
◼ 14,000,000 Unlisted Options with a $0.03 exercise price per Option expiring 5 May 2021
◼ 35,000,001 Unlisted Options with a $0.02 exercise price per Option expiring 8 June 2021
◼ 2,000,000 Unlisted Options with a $0.03 exercise price per Option expiring 8 June 2021
◼ 17,500,000 Unlisted Options with a $0.02 exercise price per Option expiring 13 June 2021
◼ 25,000,000 Unlisted Options with a $0.025 exercise price per Option expiring 8 June 2021
◼ 3,000,000 Unlisted Options with a $0.015 exercise price per Option expiring 2 September 2022
c. Voting Rights
The voting rights attached to each class of equity security are as follows:
◼ Ordinary shares: Each ordinary share is entitled to one vote when a poll is called, otherwise each member present
at a meeting or by proxy has one vote on a show of hands.
◼ Unlisted Options: Options do not entitle the holders to vote in respect of that equity instrument, nor participate
in dividends, when declared, until such time as the options are exercised or performance shares convert and
subsequently registered as ordinary shares.
Substantial Shareholders as at 30 July 2020
d.
Name
Sunset Capital Management Pty Ltd
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