ABN 12 108 560 069
ANNUAL REPORT
30 JUNE 2021
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Corporate Directory
Current Directors
Steven Formica
Ariel (Eddie) King
David Wheeler
Company Secretary
Jessamyn Lyons
Non-executive Chairman
Executive Director
Non-executive Director
Registered Office
Street:
Level 3
Share Registry
Computershare Investor Services Pty Limited
35 Outram Street
Level 11, 172 St Georges Terrace
West Perth WA 6005
PERTH WA 6000
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
Telephone:
Telephone:
Email:
Website:
1300 850 505 (investors within Australia)
+61 (03) 9415 4000
web.queries@computershare.com.au
www.investorcentre.com
Securities Exchange
Auditors
Australian Securities Exchange
Hall Chadwick WA Audit Pty Ltd
Level 40, Central Park, 152-158 St Georges Terrace
283 Rokeby Road
Perth WA 6000
Subiaco
Telephone:
131 ASX (131 279) (within Australia) WA 6008
Telephone:
Facsimile:
Website:
ASX Code
+61 (02) 9338 0000
+61 (02) 9227 0885
www.asx.com.au
RAG
Telephone:
Website:
+61 (08) 9426 0666
www.hallchadwick.com.au
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Contents
⚫
⚫
⚫
⚫
⚫
⚫
⚫
⚫
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⚫
⚫
⚫
Activities Report ..................................................................................................................................................................... 1
Directors' report ................................................................................................................................................................... 12
Remuneration report............................................................................................................................................................ 16
Auditor's independence declaration .................................................................................................................................... 19
Consolidated statement of profit or loss and other comprehensive income ....................................................................... 20
Consolidated statement of financial position ....................................................................................................................... 21
Consolidated statement of changes in equity ...................................................................................................................... 22
Consolidated statement of cash flows ................................................................................................................................. 23
Notes to the consolidated financial statements ................................................................................................................... 24
Directors' declaration ........................................................................................................................................................... 49
Independent auditor's report ............................................................................................................................................... 50
Additional Information for Listed Public Companies ............................................................................................................ 56
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Activities Report
MINING INTERESTS
SWEDISH TENEMENTS
• Tullsta Nickel Project
• Gaddebo Nickel Project
Figure 1: Location of Ragnar’s Swedish Mineral Asset Portfolio
Tullsta Nickel Project
Ragnar Metals owns 100% of the Tullsta and Gaddebo projects which are located near Sala within the Bergslagen District of
Sweden, 110km NW of the capital Stockholm. The Bergslagen district has a long, significant mining history with excellent
infrastructure of rail, road and power nearby. Scandinavia and the adjoining Karelia Province in north-west Russia is one of the
major nickel-copper provinces of the world. The Tullsta Nickel Project comprises of 4 contiguous granted permits covering an
area of 93.61km2 and covers the extent of the gabbroic mafic intrusion which hosts the Granmuren nickel mineralisation.
Table 1:
Ragnar Metals
Tullsta Project
Tenement
DetailsName
Berga nr 1
License ID
Owner
Area Ha
Valid From
Valid To
2018 48
Ragnar Metals Limited (100.00%)
2181.52
28/03/2018
28/03/2024
Tullsta nr 6
2017 158
Ragnar Metals Limited (100.00%)
2695.03
6/11/2017
6/11/2024
Tullsta nr 7
2019 5
Ragnar Metals Limited (100.00%)
4452.74
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
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9360.70
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
On 28 May, Ragnar announced diamond core drilling had commenced at its 100% owned Tullsta Nickel Project in Sweden.
On 22 June the Company announced it had intersected a significant magmatic sulphide mineralisation in the second drill hole of
its maiden drill program at Tullsta Project, Sweden.
Highlights included:
• Ragnar Metals intersects 70.9m wide zone of potential Ni-Cu bearing magmatic sulphide mineralisation within the
Granmuren Gabbroic Intrusive Complex;
• Visual observations confirm a 3.1m wide zone, comprising 1.6m of massive sulphides below a 1.5m wide zone of semi-
massive sulphides and 5.8m of semi-massive to network sulphides from 498.8m to 504.6m;
• The sulphide zone contains abundant pyrrhotite, chalcopyrite (Cu) and potential Ni-bearing pentlandite mineralisation
within the pyroxenitic-gabbroic intrusive host rocks;
• Diamond core hole 21DDTS002 targeted the projected down-plunge position of a modelled IP anomaly generated by
Ragnar’s consulting geoscientists from GeoVista AB in Sweden and consulting geologist from Geolithic Geological Services
in Australia; and
• Geological and geophysical model is similar to the Sakatti Ni-Cu-PGE deposit in Finland.
Figure 2: Close up of drill core showing Chalcopyrite (Cu), Pyrrhotite (Fe) and Pentlandite (Ni) sulphides.
Figure 3: Closeup of the Upper Zone mineralization showing the dominant primary sulphide assemblages within the semi-
massive and network sulphide zones.
Subsequent to the end of the period on 21 July, high grade nickel-copper discovery is confirmed within the sulphides intersected
in discovery hole 21DDTS002 at the Tullsta Project.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Two subsequent drill holes 21DDTS003 & 21DDTS004 both intersected significant sulphide mineralisation on the basal contact
140m and 70m respectively away from the discovery hole. Minalyzer XRF scanning returned on overall mineralized zone of 60.2m
at 0.75% Ni and 0.47% Cu from 498.2m to 558.3m (>0.5% Ni) which includes the following broad high-grade zones:
• Upper Zone: 7.6m @ 2.08% Ni & 1.57% Cu from 498.2m to 505.8m including:
•
•
•
1.6m @ 4.54% Ni & 0.72% Cu from 499.6m
0.7m @ 1.27% Ni & 4.30% Cu from 501.2m
0.6m @ 0.42% Ni & 8.42% Cu from 505.2m
• Central Zone: 5.3m @ 2.64% Ni & 0.77% Cu from 533.1m to 538.4m including:
•
1.7m @ 4.99% Ni & 0.73% Cu
• Blebby Zone: 8.5m @ 0.33% Ni & 0.41% Cu from 538.4m to 546.9m including:
•
1.3m @ 0.42%Ni & 1.11% Cu from 538.7m
• Lower Zone: 3.3m @ 0.84% & 0.45% Cu from 546.9m to 550.2m including:
•
•
0.4m @ 2.83% Ni & 0.29% Cu from 547.0m
0.4m @ 2.34% Ni & 1.88% Cu from 549.8m
• Basal Contact Zone: 1.3m @ 2.99% Ni & 1.88% Cu from 557.1m to 558.4m including:
•
1.0m @ 3.71% Ni & 2.34% Cu from 557.3m
Drilling was completed in late June with 4 diamond core holes being drilled for a total of 2,238.35m at the Tullsta Project.
Additional drill holes of the Phase 1 drilling program have extended the mineralisation over a strike length of 140m along the
base intrusion and is open in all directions.
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Table 2: Major Sulphide Zones (Highlighted) and Visual Estimate of Sulphide Percentages
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Figure 4: Plan view showing historical drill holes (black) and recent drill holes (blue). The 3D IP models are displayed with the
known near surface Granmuren shown by the purple model and the new deeper plunging model in green. Mineralisation
percentage is graphed on the drill holes to show locations of the sulphide mineralisation.
Figure 5: Long section view (looking north) showing the IP model (green & purple), historical shallow Ni bearing intersections
within the upper intrusion, and the current deep drilling which has intersected Ni-Cu sulphide mineralisation at the base of
the intrusion. The basal contact target zone is shown by the undulating red zone, demonstrating that the first hole 21DDTS001
needs to be extended deeper to pass through the basal contact position.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Granmuren Historical Drilling
Ragnar made a greenfields Ni-Cu-Co discovery in 2011/2012 at Tullsta which is located in the Bergslagen district of Sweden, to
the NW of Stockholm. Ragnar completed a heliborne VTEM survey at Tullsta in 2011 defining a strong target zone. Follow-up
geophysical works led to Ragnar completing nine diamond core holes discovering Ni-Cu-Co mineralisation at the Granmuren
prospect during 2012-2013. All intersections were between 10m below surface to a depth of 350m, defining low grade
mineralisation over a strike length of 330m and remaining open at depth. Considerable geophysical survey work and data
modelling was completed over the Tullsta Project area during this period, in particular over the Granmuren deposit, however the
management at the time determined the mineralisation was too small and low grade, resulting in exploration efforts being
focussed elsewhere.
Figure 6: Granmuren historical cross-section with down hole intercepts and logged geology.
Gaddebo Nickel Project
Table 3: Ragnar Metals Gaddebo Project Tenement Details
Name
Gaddebo Nr 3
Total Area
License
ID
2014:91
Owner
Area Ha
Valid From
Valid To
Ragnar Metals Limited (100.00%)
99.815
30/10/2014
30/10/2025
99.815
Gaddebo is a small tenure measuring 1km x 1km located 15km SE of the town of Sala and 21km ESE of the Granmuren deposit.
Research of records at the Geological Survey of Sweden uncovered reports that the property contained a nickel mine which
operated from 1870-1871 and consists of 2 shafts and a small pit as well as ore/waste stockpiles. In addition, 2 shallow drill holes
were completed within the licence in 1944 by Boliden. It is reported that 1,030 tonnes of nickel were mined with grades of up to
4.9% Ni. During the field trip, Geolithic located these mines and drillholes as well as noting that Pyrrhotitepyrite-chalcopyrite-
pentlandite mineralisation is abundant within the host medium-coarse grained olivine rich gabbroic rocks. The surface exposures
of the rocks are heavily rusted from the weathered sulphides and the sulphides are fresh inside the broken rocks due to the hard,
competent and non-porous nature of the gabbro.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
WESTERN AUSTRALIA TENEMENTS
•
Leeds Project
• Kenya Gold Project
Tenement ID
Table 4: Ragnar Metals Western Australian Tenement Details
Area Ha
Owner
Valid To
Leeds project
P15/6017
P15/6018
Kenya Project
E39/1998
E39/2005
Transfer to Loki Exploration Pty Ltd
Transfer to Loki Exploration Pty Ltd
Loki Exploration Pty Ltd
Loki Exploration Pty Ltd
198
199
2BL
1 BL
02/04/2025
02/04/2025
03/05/2022
02/07/2022
On 21 January 2021 Ragnar announced that it was to acquire two highly prospective West Australian gold projects with an 80%
interest in the Leeds Gold Project and a 100% interest in the Kenya Gold Project.
Both projects are strategically located in the prolific gold mining district of the Norseman-Wiluna Greenstone Belt of Western
Australia. See Corporate activities paragraph for details of these acquisitions.
Leeds Gold Project
The Leeds project is located on the Norseman-Wiluna greenstone belt approximately 20km south of the Goldfields St Ives Gold
Mining Camp at Kambalda. Previous drilling at the Leeds Project, located 20 km south of the Goldfields St Ives Gold Mining Camp
at Kambalda, Western Australia, suggest a large significant gold system that warrants immediate follow-up drilling. Historic
shallow drilling at the Leeds Project intersected shallow oxidised gold mineralisation from surface down to 50-60m depth and in
places intersected deeper primary gold bearing shear zone which extend over a very large area of 2km by 200-300m. Historic
drilling at the Leeds Project intersected both very high grade and large lower grade widths including:
•
•
17m at 5.7 g/t Au from 94m including 2m at 40.9 g/t Au in LRC001 (primary zone); and
70m at 0.4 g/t Au from 49 m including 1m at 4.2 g/t Au in LDRC013 (oxide & primary zone).
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Figure 7: Airborne magnetic map showing the intercepted gold bearing shear zone.
Kenya Gold Project
The Kenya Gold Project is located 50 km along strike to the south of the AngloGold Ashanti’s Sunrise Dam gold mining camp and
contains previously defined targets that are yet to be followed up. The Kenya project tenements are located 100km south of
Laverton and 180km NE of Kalgoorlie in the northeastern Goldfields region of Western Australia. The project lies approx. 3km
north of the Safari Bore and 8km NW of the Deep South mine sites.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Figure 8: Location of Kenya Project.
On 16 June 2021 the Company commenced its maiden drill program at the company’s Leeds Gold Project in Western Australia.
Highlights included:
• Drill program targeting a previously identified 1.6km long N-NE shear zone
• A total of 14 priority RC holes for 2,500m to target the shear zone up to 200m depth
• Previous drilling had significant intersections of gold, including: 17 m at 5.7 g/t Au from 94 m in LRC001 including 2 m
at 40.9 g/t Au
Ethnographic aboriginal heritage survey for the Ngadju Native Title Traditional Owners was completed across the primary target
area. The final report received provided clearance for all drill collar locations for the primary drill targets and access tracks. This
enabled Ragnar to commence the drill program.
GAP GeoPhysics Exploration Services have been contracted to conduct a sub-audio magnetic (SAM) survey across the entire
tenure at Leeds in order to identify additional gold-bearing structures.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
CORPORATE
The corporate activities during the financial year are as outlined as follows:
• August 2020: A capital raising of $400,000 was completed to fund Ragnar’s working capital requirements by the issue of
convertible notes to the value of $200,000 to sophisticated investors and loans from related parties and one non-related
party to the value of $200,000.
The loans were subject to a facility fee of 6% of the principal and accrued interest at 10% per annum. The loans were made
available in August 2020 for a period of one year with the provision of early repayment at the election of the company.
The convertible notes were issued on 20 August 2020 with a maturity date of one year and an interest rate of 10% per
annum until conversion to a maximum of 23,506,804 ordinary shares at the lower of $0.004 per shares or 80% of the
weighted average price 5 trading days prior to the conversion notice or until redemption at 120% of the face value of the
notes.
The notes were not subject to a conversion notice and both the outstanding loan amounts and the notes were repaid in
May 2021.
•
The Company’s shares were suspended from trading on the ASX from 7 August 2020 to 27 May 2021. Details of the stages
of the delisting and relisting are outlined below:
- On 7 August 2020 the securities were suspended from quotation immediately under Listing Rule 17.2, at the request
of RAG, pending the release of a response to an ASX price and volume query and an announcement regarding a
proposed transaction.
- On 14 August 2020 the company announced it had discontinued negotiations in relation to a significant transaction
under Chapter 11 of the ASX Listing Rules and the Company requested that the suspension of its securities continue
pending ASX’s determination in relation to the Company’s compliance with Listing Rules 12.1 and 12.2 and the
making of an appropriate announcement.
- On 18 September 2020 ASX determined that it is of the view that the Company is not in compliance with Listing
Rules 12.1 and 12.2 and indicated that it will review its determination in six months’ time. The suspension of the
Company’s securities will continue until the Company has demonstrated to ASX that it is in compliance with Listing
Rules 12.1 and 12.2.
• November 2020: The board announced the resignation of Ms Julia Beckett as company secretary and the appointment of
Ms Jessamyn Lyons.
• November 2020: Effective 29 November 2020, Ontario Inc gave notice of termination of the Heads of Agreement between
the Company and Ontario Inc announced on 21 November 2019 pursuant to which Ontario had been granted an option
over the Company’s exploration permit 2014:91 Gaddebo nr 3.
•
January 2021: It was announced that Ragnar was to acquire two granted prospecting licenses and 2 granted exploration
licenses that comprise the Leeds and Kenya Projects respectively. Both projects are strategically located in the gold mining
district of Norseman Wiluna greenstone Belt of Western Australia.
o
o
February 2021 saw the exercise of an option under binding heads of agreement between the Company and its
wholly owned subsidiary Loki Exploration Pty Ltd (ACN 643 651 138) (Loki Exploration) and Maverick Exploration
Pty Ltd (ACN 056 932 239) (Maverick Exploration), Cale Consulting Pty Ltd (ACN 151 371 854) atf the McLean
Tyndall Family Trust (Cale) and Pearlglow Investments Pty Ltd atf The Pearlglow Trust (Pearlglow) (together, the
Leeds Vendors) for Loki Exploration to acquire an 80% interest in Prospecting Licenses P15/6017 and P15/6018
(the Leeds Project or Leeds Project Tenements) (Leeds Acquisition). Loki Exploration has an 80% interest in each
of P15/6017 and P1/6018. Consideration paid as per the agreements was $80,000 cash and 4,000,000 post
consolidation securities of $0.02 each, restricted for one year, and 4 million options exercisable at $0.04 each
expiring 2 years after the date of issue.
In May 2021, pursuant to a binding heads of agreement (Kenya Project Agreement) announced in January
between the Company, Loki Exploration and Jindalee Resources Limited (ACN 064 121 133) (ASX:JRL)(Jindalee) in
which Loki Exploration agreed to acquire a 100% interest in Exploration Licenses E39/1998 10 and E39/2005 (the
Kenya Project or Kenya Project Tenements) (the Kenya Project Acquisition), the company issued 2,500,000 post
consolidation securities @ $0.02s per share restricted for one year as consideration for its 100% interest.
• March 2021: Ariel Eddie King was appointed to Executive Director.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
• April 2021: Consolidation of all options and ordinary fully paid shares in the ratio of 5 pre-consolidation shares to 1 post-
consolidation security
• May 2021: A further facility of $400,000 was made available by a related party for interim funding of working capital. The
loans were subject to a facility fee of 5% of the principal drawn down and accrued interest at 10% per annum.
• May 2021: Ragnar completed a capital raising for $5,500,000 via a prospectus. Following re-compliance with Chapters 1 and
2 of the ASX Listing Rules, the Company was reinstated to its official quotation on 27 May 2021.
o
The company issued 275,000,000 post-consolidation shares @ $0.02 per share together with 1 free attaching
option to acquire a new share exercisable at $0.04 each on or before 19 May 2023 for every three shares issued,
a total of 91,666,497 quoted options.
o As part of the capital raising, the company extended a priority offer capped at $1,000,000 of the total amounts
raised (50,000,000 shares and 16,666,497 free attaching new options exercisable at $0.04 on or before 19 May
2023) to existing shareholders of the company
CPS Capital, the lead manager, was paid a fee of 6% of the amount of the capital raising and issued 45,000,000
new options exercisable at $0.04 on or before 19 May 2023 restricted for 24 months to 27 May 2023.
o
o Directors of the company applied for and were issued 16,000,000 shares and 5,333,333 free attaching new
options. The new options are exercisable at $0.04 on or before 19 May 2023 restricted for 24 months to 27 May
2023.
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Directors' report
Your directors present their report on Ragnar Metals 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 2021.
1. Directors
The names of Directors in office at any time during the reporting year and up to the date of this report are:
• Mr Steven Formica
• Mr Ariel (Eddie) King
• Mr David Wheeler
Non-Executive Chairperson
Executive Director (appointed 1 March 2021; prior to this Non-Executive Director)
Non-Executive Director
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
2. Company Secretary
Ms Jessamyn Lyons was appointed Company Secretary on 9 November 2020.
Qualifications
Ms Lyons is a Chartered Secretary, an Associate of the Governance Institute of Australia and
holds a Bachelor of Commerce from the University of Western Australia with majors in
Investment Finance, Corporate Finance and Marketing
Experience
Ms Lyons is also a director of Everest Corporate and Company Secretary of Dreadnought
Resources Limited, Lunnon Metals Limited, Stealth Global Holdings Limited, Doriemus PLC
and Joint Company Secretary of Los Cerros Limited and Alchemy Resources Limited. Ms Lyons
also has 15 years of experience working in the stockbroking and banking industries and has
held various positions with Macquarie Bank, UBS Investment Bank (London) and more
recently Patersons Securities.
3. Principal Activities
The principal activities of the Group during the financial year were the exploration and evaluation of its projects in Scandinavia
and commencement of the exploration and evaluation of its newly acquired Australian projects.
4. Dividends Paid or Recommended
There were no dividends paid or recommended during the financial year ended 30 June 2021 (2020: Nil).
5. Operating and financial review
5.1. Nature of Operations Principal Activities
The company is a mineral resources exploration and development company.
5.2. Operations Review
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 2021 financial year the Group delivered a loss before tax of $834,642 (2020: $492,618).
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 increased to $5,028,879 at 30 June 2021 (2020: $350,014).
As at 30 June 2021, the Group's cash and cash equivalents were $3,394,825 (2020: $142,060) and the group had net working
capital of $3,297,248 (2020: $42,705 working capital). See Note 13.
6. Significant Changes in State of Affairs
These are outlined in detail in the Mining Interest and Corporate and Administrative Sections of the group’s Activities Reports
and include:
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RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Directors' report
Corporate
-
-
-
-
-
The raising of $400,000 to fund the Company’s working capital requirements by the issue of convertible notes to the value
of $200,000 to sophisticated investors and loans from related parties and one non-related party to the value of $200,000.
Details are available on page 10 of the Annual Report in the Corporate and Administrative summary.
Suspension of the Company’s shares from trading on the Australian Securities Exchange (ASX) from 7 August 2020 to 27
May 2021. Details of the stages of the delisting and relisting are available in the Corporate and Administrative Summary.
Consolidation of all options and ordinary fully paid shares in the ratio of 5 pre-consolidation securities to 1 post-
consolidation security.
A capital raising of $5,500,000 via a prospectus. Details in the Corporate and Administrative Summary.
Acquisition of Australian tenements, the Leeds and Kenya projects.
Mining
As disclosed in Mining Section of the Activities Report.
7. Events Subsequent to Reporting Date
No other matter or circumstance has arisen since 30 June 2021 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.
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
• Mr Ariel Eddie King
Qualifications
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.
8,343,334 ordinary shares in Ragnar Metals Limited and options to acquire a further
8,266,666 ordinary shares. These include 6 million unlisted options escrowed for 24
months. Since year end, Mr Formica’s shareholding has increased to 9,920,000
shares.
Mr Formica also acts as a director of High Grade Metals Limited (ASX: HGM) and
Houston We Have Ltd (ASX: HWH). He was a former director of Bowen Coking Coal
Ltd (ASX: BCB), Orminex Ltd (ASX: ONX) and Lindian Resources Limited (ASX: LIN).
Executive Director (Appointed 1 March 2021) previously 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. Mr King’s past
experience includes being Manager for an investment banking firm, where he
specialised in the technical and financial analysis of bulk commodity and other
resource projects for investment and acquisition.
3,800,000 ordinary shares in Ragnar Metals Limited and options to acquire a further
6,833,333 ordinary shares. Of these 6,000,000 are unlisted options escrowed for 24
months).
Mr King also acts as a director of Eastern Iron Limited (ASX: EFE), M3 Mining Limited
(ASX:M3M) and Queensland Pacific Metals Limited (ASX: QPM). He was a former
director of Six Sigma Metals Limited (ASX: SI6), Aston Minerals Limited (ASX:ASO)
formally known as European Cobalt Limited (ASX: EUC), ECS Botanics Holdings Limited
(ASX: ECS), Sultan Resources Limited (ASX: SLZ), Bowen Coking Coal Limited (ASX: BCB)
and Lindian Resources Limited (ASX: LIN).
P a g e | 13
Directors' report
• Mr David Wheeler
Qualifications
Experience
Interest in Shares and Options
Directorships held in other listed
entities in the past three years
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Non-executive Director (Appointed 4 December 2017)
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.
1,000,000 ordinary shares in Ragnar Metals Limited and options to acquire a further
3,333,333 ordinary shares (including 3,000,000 unlisted options escrowed for 24
months).
Mr Wheeler also acts as a director of Blaze International Limited (ASX: BLZ), Delecta
Limited (ASX: DLC), Tyranna Res Ltd (ASX: TYX), Protean Energy Ltd (ASX: POW), PVW
formerly Thred Limited (ASX: PVW), Avira Resources (ASX: AVW) Syntonic Limited
(ASX: SYT) and Health House Int, formerly VPCL Limited (ASX: HHI). He was a former
director of Eneabba Gas Ltd (ASX: ENB), 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) and 333D Limited (ASX: T3D).
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 Formica
Eddie King
David Wheeler
2
2
2
2
2
2
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.
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 has paid or agreed to pay insurance premiums as follows:
⚫ The Company has entered into agreements to indemnify all Directors against any liability arising from a claim brought by a
third party against the Company and to provide right of access to company records. 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 2021 was
$23,622 (2020: $24,000).
⚫ No indemnity has been paid in respect of auditors.
P a g e | 14
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Directors' report
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
Number under
Option
2 Sep 2019
2 Sep 2022
$0.075
600,000
19 May 2021
19 May 2023
19 May 2021
19 May 2023
19 May 2021
19 May 2023
17 June 2021
17 June 2023
17 June 2021
17 June 2023
$0.04
$0.04
$0.04
$0.06
$0.08
91,666,497(1)
64,000,000(2)
4,000,000
2,000,000
2,000,000
164,266,497
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.
(1) Listed Options – all other options are unlisted
(2) Restricted Securities
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 subject to environmental regulations in the jurisdictions it operates in. In respect of the current year
under review, the Directors are not aware of any particular or significant environmental issues which have been raised in relation
to the Group’s operations.
14. Non-audit services
During the year, Hall Chadwick, the Company’s auditor, performed tax consulting services to the company. These services
amounted to $7,440 (2020: $4,400). Further non-audit services were provided in respect of preparation of the Investigating
Accountants Report in the Prospectus amounting to $8,000. 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 Hall Chadwick, 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.
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 2021 has been received and can be found on page 19 of the annual report.
P a g e | 15
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Directors' report
17. Remuneration report (audited)
The information in this remuneration report has been audited as required by s308(3C) of the Corporations Act 2001.
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: Non-executive Chairman
⚫ Mr Ariel (Eddie) King: Executive Director
⚫ Mr David Wheeler: Non-executive director
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 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 2021
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.
During the year Consultancy agreements were signed with Ariel King to manage the business of the company and with Leo Horn
to provide technical expertise and oversight in the role of Chief Geologist of the company.
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 30 November 2020 and was passed with 99.99% in favour.
P a g e | 16
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Directors' report
17.4. Directors’ and KMP Remuneration
The following table details the components of remuneration for each member of the KMP of the Group:
2021
Steve Formica
Eddie King
David Wheeler
2020
Steve Formica
Sara Kelly
Eddie King
James Scovell
David Wheeler
Short-term
benefits
Salary, fees
and leave
$
72,000
64,000
36,000
172,000
Post-
employment
benefits
Super
Long-term
benefits
Termination
benefits
Equity-settled share-
based payments
Total
% Share
based
payments
Other
Equity
Options
Profit share
and bonuses
Other
$
-
-
-
-
$
-
-
-
-
$
11,590
-
-
11,590
$
-
-
-
-
$
-
-
-
-
$
-
-
-
-
$
$
%
49,177
132,767
49,177
113,177
24,589
60,589
37.04%
43.45%
40.58%
122,943
306,533
-
Short-term
benefits
Salary, fees
and leave
$
50,000
10,000
36,000
18,000
36,000
150,000
Profit share
and bonuses
Other
$
-
-
-
-
-
-
$
-
-
-
-
-
-
Post-
employment
benefits
Super
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
-
-
-
-
-
a.
17.5. Share-based compensation
Director share options
15,000,000 unlisted options with an expiry date of 19 May 2023 and exercise price $0.04 restricted for two
years from date of issue were granted to the directors as remuneration during the year. 6,000,000 options
to each of Steve Formica and Eddie King and 3,000,000 options to David Wheeler
Director ordinary shares
There were no shares granted as remuneration to Directors during the year.
Options on issue as Remuneration
Details of the unexpired options on issue granted as remuneration to directors are detailed in table below.
b.
c.
2021
Grant Date
Exercise Price
Options
Issued
No.
$
$0.04
$0.04
$0.04
0.075
Value per
option
$
$0.0082
$0.0082
$0.0082
$0.0148
Value
Expiry Date
$
$49,177
19/05/2023
$49,177
19/05/2023
$24,589
19/05/2023
8,900
02/09/2022
Steve Formica
6,000,000
19/05/2021
Eddie King
6,000,000
19/05/2021
David Wheeler
3,000,000
19/05/2021
Steve Formica
600,000
29/08/2019
P a g e | 17
All options have been issued to nominees of the directors.
17.6. KMP equity holdings
a.
Movement in shareholdings of each KMP by number of shares
2021
Steve Formica
Eddie King
David Wheeler
Balance at
start of year
Consolidation
of shares
16,716,666
3,343,334
1,500,000
300,000
-
-
18,216,666
3,643,334
Received
as
compensation
Other changes
during the year
5,000,000
3,500,000
1,000,000
-
-
-
-
9,500,000
13,143,334
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Balance at
end of year
8,343,334
3,800,000
1,000,000
b.
Movement in option holdings of each KMP by number of options
2021
Balance at
start of year
Securities
consolidation
Granted as
Remuneration
during the year
Other changes
during the year
(see note 1)
Lapsed
During
year
Balance at
end of year
Vested and
Exercisable
5:1
Steve Formica
3,000,000
600,000
6,000,000
1,666,666
-
8,266,666
2,266,666
Eddie King
2,100,000
420,000
6,000,000
833,333
420,000
6,833,333
David Wheeler
2,000,000
400,000
3,000,000
333,333
400,000
3,333,333
833,333
333,333
7,100,000
1,420,000
21,000,000
2,833,332
820,000
24,433,332
3,433,332
(i) Participation in IPO
END OF REMUNERATION REPORT
Not
Veste
d
No.
21,00
0,000
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 10 September 2021
P a g e | 18
Auditor's independence declaration
P a g e | 19
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Continuing operations
Revenue
Other income
Accounting and audit fees
Computers and software
Directors Fees
Employee benefits expenses
Contractors and consultants
Finance Costs
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
4a
4b
18
3b
6
2021
$
102
-
102
(64,099)
(3,820)
(69,995)
17,515
(83,831)
(90,100)
(33,411)
(19,721)
2020
$
520
-
520
(74,490)
(924)
(68,200)
-
(63,866)
(17,046)
(24,612)
(151,866)
(157,034)
(877)
(165,025)
(133,791)
(15,051)
(20,672)
(2,650)
(30,801)
(8,900)
(11,247)
(33,368)
(834,642)
(492,618)
-
-
(834,642)
(492,618)
Net (loss) / profit for the year
(834,642)
(492,618)
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:
(6,351)
(6,351)
2,598
2,598
(840,993)
(490,020)
₵
₵
⚫ Basic and diluted loss per share (cents per share)
7
(0.89)
(0.16)
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 | 20
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Consolidated statement of financial position
as at 30 June 2021
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
Note
8
9
2021
$
3,394,825
228,325
3,623,150
10
1,731,631
1,731,631
2020
$
142,060
22,868
164,928
307,309
307,309
5,354,781
472,237
11
325,903
325,903
122,223
122,223
325,903
122,223
5,028,878
350,014
12a
14
32,704,462
28,641,172
2,301,893
851,677
(29,977,477)
(29,142,835)
5,028,878
350,014
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
P a g e | 21
Consolidated statement of changes in equity
for the year ended 30 June 2021
Note
Issued
Capital
Accumulated
Losses
$
$
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Options
Reserve
$
Share-based
Payments
Reserve
$
Foreign
Exchange
Translation
Reserve
$
Total
$
Balance at 1 July 2019
Loss for the year
Other comprehensive income for the year
Total comprehensive income
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
28,641,172
(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
Balance at 1 July 2020
Loss for the year
Other comprehensive income for the year
Total comprehensive income
28,641,172
(29,142,835)
352,390
525,944
(26,657)
350,014
-
-
-
(834,642)
-
(834,642)
-
-
-
-
-
-
-
(834,642)
(6,351)
(6,351)
(6,351)
(840,993)
Transaction with owners, directly in equity
Shares issued during the year
12a
5,630,000
Transaction costs
Transfer to listed options reserve
(650,046)
(916,664)
916,664
5,630,000
(650,046)
-
Options issued during the year
12b
-
-
539,903
-
539,903
Balance at 30 June 2021
32,704,462
(29,977,477)
1,808,957
525,944
(33,008) 5,028,878
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
P a g e | 22
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Consolidated statement of cash flows
for the year ended 30 June 2021
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Note
2021
$
2020
$
(856,885)
(379,368)
102
520
Net cash used in operating activities
8c.i
(856,783)
(378,848)
Cash flows from investing activities
Payments for exploration expenditure
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of equity securities
Proceeds from the issue of convertible notes
Transaction costs related to issue of shares and convertible notes
Proceeds from borrowings
Repayment of borrowings and convertible notes
Transaction costs related to loans
Net cash (used)/provided by financing activities
(1,013,160)
(211,793)
(1,013,160)
(211,793)
5,500,000
200,000
(345,719)
600,000
(800,000)
(25,600)
5,128,681
-
-
Net (decrease)/increase in cash held
3,258,738
(590,641)
Cash and cash equivalents at the beginning of the year
Effect of exchange rates on cash holdings in foreign currencies
142,060
732,949
(5,973)
(248)
Cash and cash equivalents at the end of the year
8a
3,394,825
142,060
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
P a g e | 23
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
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 10 September 2021 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.
The financial reports have been prepared on an accruals basis and is based on historic costs modified by the revaluation of
financial assets, financial liabilities and selected non-current assets for which the fair value basis of accounting has been applied.
The presentation currency of the company is Australian Dollars (AUD).
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 $834,632 (2020: $492,618) and had net
cash outflows from operating and investing activities of $679,323 (2020: $378,848) and $1,190,620 (2020: $211,793)
respectively for the year ended 30 June 2021. As at that date, the consolidated entity had net current assets of $3,297,248
(2020: $42,705).
The Directors have prepared a cash flow forecast, which indicates that the Company will have sufficient cash flows to meet
all commitments and working capital requirements for the 12-month period from the date of signing this financial report.
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 Directors have considered the
impact of the COVID-19 pandemic on the position of the Company at 30 June 2021 and its operations in future periods
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.
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.
P a g e | 24
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Statement of significant accounting policies
Note 1
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 | 25
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 1
Statement of significant accounting policies
Key Judgments – Exploration and evaluation expenditure
i.
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. 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 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. The carrying value of capitalised expenditure at reporting date is $1,731,631 (2020:
$307,309).
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 share-based payments to employees and others providing similar services are
measured at the fair value of the equity instruments at the grant date. 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
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 at the reporting date. The recoverable
amount of the exploration and evaluation asset is estimated to determine the extent of the impairment loss (if any).
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to
abandon the area is made
f. New, revised or amending Accounting Standards and Interpretations
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards and Interpretations issued
by the AASB that are relevant to the Company and effective for the current annual reporting period. As a result of this review,
the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the
Company and, therefore, no material change is necessary to the Company’s accounting policies.
P a g e | 26
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 1
Statement of significant accounting policies
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 2021. The group is
currently assessing the impact of these new or amended Accounting Standards and Interpretations.
The following amendments are effective for the period beginning 1 January 2022:
• Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37);
• Interest Rate Benchmark Reform – Phase 2 (Amendments to AASB 9, 139 and 7)
• Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16);
• Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41); and
• References to Conceptual Framework (Amendments to IFRS 3).
In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are
classified as current or non-current. These amendments clarify that current or non-current classification is based on whether
an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the
reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity
instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity
instrument separately from the liability component of a compound financial instrument. The amendments were originally
effective for annual reporting periods beginning on or after 1 January 2022. However, in May 2020, the effective date was
deferred to annual reporting periods beginning on or after 1 January 2023. The group is currently assessing the impact of
these new accounting standards and amendments. The Group does not believe that the amendments to IAS 1 will have a
significant impact on the classification of its liabilities.
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 2021. 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.
Note 2
Company details
The registered office and principal place of business of the
Company is:
Address: Level 3
35 Outram Street
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 | 27
Notes to the consolidated financial statements
for the year ended 30 June 2021
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 Metals, Hall Chadwick WA Audit Pty
Ltd formerly Bentleys Audit & Corporate (WA) Pty Ltd for:
⚫ Auditing or reviewing the financial reports:
⚫ Taxation services provided by a related practice of the Auditor
⚫
Independent Accountants Report for Prospectus
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
2021
$
102
102
2020
$
520
520
(15,051)
(11,247)
(15,051)
(11,247)
2021
$
2020
$
69,995
69,995
33,411
33,411
2021
$
29,004
7,440
8,000
44,444
68,200
68,200
17,046
17,046
2020
$
25,210
4,400
-
29,610
P a g e | 28
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
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
6c
6d
Note
2021
$
2020
$
-
-
-
-
-
-
-
-
-
-
-
-
b. Reconciliation of income tax expense to prima facie tax payable
The prima facie tax payable on loss from ordinary activities before income tax
is reconciled to the income tax expense as follows:
Australian Tax Rate
(834,642)
(492,618)
26%
27.5%
Prima facie tax payable / (refundable) on operating loss at 26% (2020: 27.5%)
(217,007)
(135,470)
Add / (Less)
Tax effect of:
⚫ Other non-allowable items
⚫ Capital raising & Borrowing costs deductible
⚫ Deferred tax asset not brought to account
71,112
(5,125)
151,020
25,840
948
108,682
Income tax expense / (benefit) attributable to operating loss
-
-
c. Deferred tax assets
Tax losses
Capital Losses
Other
Total deferred tax assets
Set-off deferred tax liabilities pursuant to set-off provisions
Net deferred tax assets
Less deferred tax assets not recognised
Net tax assets
d. Deferred tax liabilities
Other
Total Deferred Tax Liabilities
Set-off deferred tax assets pursuant to set-off provisions
Net deferred tax liabilities
P a g e | 29
2,754,592
2,762,642
316,322
61,087
334,571
16,526
3,132,002
3,113,739
-
-
3,132,002
3,113,739
(3,132,002)
(3,113,739)
-
-
-
-
-
-
-
-
-
-
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note
6
Income tax (cont.)
Note
2021
$
2020
$
Unused tax losses for which no deferred tax asset has been recognised,
10,594,586
10,045,970
Unused capital losses for which no deferred tax asset has been recognised
1,216,623
1,216,623
Potential tax benefit at 26.0% (2020: 27.5%)
3,070,914
3,097,213
The benefit for tax losses will only be obtained if:
a) The company and consolidated entity derive future assessable income of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be utilised;
b) The company and the consolidated entity continue to comply with the conditions for deductibility imposed by law;
and
c) No changes in tax legislation adversely affect the ability of the company and consolidated entity to realise these
benefits.
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.
P a g e | 30
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 7
Earnings per share (EPS)
a. Reconciliation of earnings to profit or loss
(Loss) / profit for the year
Note
2021
$
2020
$
(834,642)
(492,618)
⚫
Loss from continuing operations used in the calculation of basic EPS
(834,642)
(492,618)
b. Weighted average number of ordinary shares outstanding during the year
used in calculation of basic EPS
7d
93,534,204
313,424,062
2021
$
2020
$
c. Earnings per share
From continuing operations
Basic EPS (cents per share)
2021
₵
2020
₵
(0.89)
(0.89)
7d
(0.16)
(0.16)
d. At the end of the 2021 financial year, the Group has 164,266,497 unissued shares under options (2020: 96,500,001). The Group
does not report diluted earnings per share on annual losses generated by the Group.
Note 8
Cash and cash equivalents
a. Current
Cash at bank
2021
$
2020
$
3,394,825
142,060
3,394,825
142,060
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.
P a g e | 31
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
c. Cash Flow Information
i. Reconciliation of cash flow from operations to (loss)/profit after income tax
Note
2021
$
2020
$
Loss after income tax
(834,642)
(492,618)
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
Finance Costs
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
6,465
133,791
15,051
90,100
(23,589)
(243,959)
17,046
8,900
11,247
(7,361)
21,895
62,043
(856,783)
(378,848)
(i) The company issued 6,500,000 shares escrowed until 19/05/2022 as consideration for the acquisition during the year of
the 80% of the Leeds Project and 100% of the Kenya project. Further, 4,000,000 options valued at $32,784 were included as
consideration for the Leeds Project.
(ii) The company granted 45,000,000 options valued at $368,828 to the lead manager of the capital raising, CPS capital, or
its nominees. 1 cent per option totalling $4,500 was paid for these options.
Note 9
Trade and other receivables
a. Current
GST and VAT receivable
Other receivables
2021
$
199,715
28,610
228,325
2020
$
18,881
3,987
22,868
Trade receivables are measured on initial recognition at fair value, which ordinarily equates to cost and are subsequently
measured at cost less provision for impairment due to their short term nature. 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.
P a g e | 32
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
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 2021 and 30 June
2020 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.
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
2021
$
307,309
1,465,051
(40,729)
2020
$
113,602
210,753
(17,046)
Carrying amount at the end of the year
1,731,631
307,309
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 recognised of $40,729 in
relation to the Scandinavian projects following the non-renewal of the license Tullsta nr 5 (2020: $17,046 – Scandinavian
Projects)
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
exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits
ii)
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.
P a g e | 33
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 10 Exploration and evaluation assets: continued
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.
Note 11 Trade and other payables
a. Current
Unsecured
Trade payables
Accruals
Employment related payables
Note
11b
2021
$
305,403
20,500
-
2020
$
78,958
25,750
17,515
325,903
122,223
b. Trade payables are non-interest bearing and usually settled within the lower of terms of trade or 30 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
2021
No.
2020
No.
2021
$
2020
$
Fully paid ordinary shares at no par value
12a
344,184,889
313,424,062
28,641,172
28,641,237
a. Ordinary shares
At the beginning of the period
Post Consolidation Balance (1)
Shares issued during the year: (ii)
Restricted Shares Issued (iii)
Transaction costs – share issue
Transfer to listed options reserve
Unmarketable parcel buy back
313,424,062
313,424,062
28,641,172
28,641,237
62,684,889
275,000,000
6,500,000
-
-
-
-
-
-
-
-
-
-
5,500,000
130,000
(650,046)
(916,664)
-
-
-
-
-
-
(65)
At reporting date
344,184,889
313,424,062
32,704,462
28,641,172
P a g e | 34
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note (i) : All Securities Consolidated at a ratio of 5:1 as of record date 12 April 2021.
Note (ii) : A public offer of 275,000,000 shares at an issue price of $0.02 each to raise $5,500,000 together with 1 new option for
every share issued.
Note (iii) : 6,500,000 shares offered under the Vendor offer ranking equally with existing shares on issue with a restriction period
of 12 months the date of issue, being 19 May 2022, 2,500,000 shares as part consideration payable to the Kenya vendors for
100% interest in the Kenya project tenements and 4,000,000 shares as part consideration to the Leeds Vendors for the
acquisition of 80% interest in the Leeds projects.
b. Options Unlisted
Options
Opening Balance
Post Consolidation Balance
Options Expired
Balance remaining
Advisor Options
Vendor Options
Director Options
Employee Options 1
Employee Options 2
Employee Options 3
Note
Exercise
Price
Expiry Date
2021
No.
2020
No.
2021
$
2020
$
96,500,001 93,500,001
352,390
343,490
96,500,001 93,500,001
352,390
343,490
(i)
(ii)
(iii)
(iii)
(iii)
(iv)
(iv)
(iv)
$0.075
$0.04
$0.04
$0.04
$0.04
$0.06
$0.08
02/09/22
19/05/23
19/05/23
19/05/23
19/05/23
17/06/21
17/06/21
19,300,002
(18,700,002)
600,000
45,000,000
4,000,000
15,000,000
4,000,000
2,000,000
2,000,000
8,900
3,000,000
373,328
32,784
122,943
8,732
1,320
796
72,600,000 96,500,001
892,293
352,390
c. Options Listed
Opening Balance
2021
No.
0
Listed Options
(V)
$0.04
19/05/23
91,666,497
91,666,497
2020
No.
-
-
-
2021
$
0
916,665
916,665
2020
$
--
-
-
Total Options
164,266,497 96,500,001
1,808,958
352,390
Note (i) All Securities Consolidated at a ratio of 5:1 as of record date 12 April 2021
Note (ii) Total options expired
•
•
•
•
•
Expiry of 2,800,000 options without conversion on 05/05/2021 (Price $0.15)
Expiry of 7,000,002 options without conversion on 08/06/2021 (Price $0.10)
Expiry of 400,000 options without conversion on 08/06/2021 (Price $0.15)
Expiry of 5,000,000 options without conversion on 08/06/2021 (Price $0.125)
Expiry of 3,500,000 options without conversion on 13/06/2021 (Price $0.105)
Note (iii) These have an exercise price of $0.04 and expiry date of 19/05/2023
P a g e | 35
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
•
•
•
45,000,000 Advisor options. These are restricted securities for 24 months from the date of reinstatement to
quotation.
15,000,000 Director options. These are restricted securities for 24 months from the date of reinstatement to
quotation.
4,000,000 Leeds project options. These are restricted securities for 12 months from the date of issue of the
restricted securities.
See note 18 for further details.
Note (iv) The Employee options are issued under the company’s incentive option plan and subject to the vesting condition 50%
upon completing 12 months continuous employment and 50% upon 18 months continuous engagement with the company.
4 million employee options exercisable on or before 19/05/23 at an exercise price of $0.04 per option.
2 million employee options exercisable on or before 17/06/23 at an exercise price of $0.06 per option.
2 million employee options exercisable on or before 17/06/2023 at an exercise price of $0.08 per option.
•
•
•
The fair value of option is ascertained by internal valuation using a Black‐Scholes pricing model which incorporates all market
vesting conditions
Note (v) On 27 May 2021 the company completed a $5.5 million placements through the issue of 275,000,000 shares at $0.02
per share. These free attaching options were issued attached to the new issue at a ratio of 1 option for every 3 shares issued.
Exercise price and expiry date as noted. These options were valued at $0.01 on listing.
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
8
9
11
2021
$
3,394,825
228,325
(325,902)
2020
$
142,060
22,868
(122,223)
3,297,248
42,705
P a g e | 36
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 14 Reserves
Option reserve
Foreign exchange reserve
Share-based payment reserve
a. Option reserve
Note
2021
$
2020
$
12c
1,808,958
352,390
(33,008)
525,944
(26,657)
525,944
2,301,894
851,677
The option reserve records items recognised as expenses on the value of directors, employee and other options. Please refer
Note 12c and 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 cost of shares which were granted as share-based payments.
Note 15 Controlled entities
Ragnar Metals Limited is the ultimate parent of the Group.
a. Subsidiaries
⚫ Drake Resources Sweden AB
⚫ Drake (Euro) Pty Ltd
⚫ Ragnar Sweden AB
⚫ Loki Exploration Pty Ltd
Country of
Incorporation
Sweden
Australia
Sweden
Australia
Class of
Shares
Ordinary
Ordinary
Ordinary
Ordinary
Percentage Owned
2021
100
100
100
100
2020
100
100
100
100
b. Investments in subsidiaries are accounted for at cost.
Note 16 Key Management Personnel compensation (KMP)
The names are positions of KMP are as follows:
• Mr Steve Formica Non-Executive Chairman
• Mr Ariel (Eddie) King
• Mr David Wheeler
Non-Executive Director
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. $114,795 (2020:$81,800) was capitalised as
exploration expenditure.
Short-term employee benefits
Share-based payments – Note 18
Total
P a g e | 37
2021
$
183,590
122,943
x
2020
$
150,000
8,900
306,533
158,900
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 17 Related party transactions
Transactions between related parties are on normal commercial terms and conditions are no more favourable than
those available to other parties unless otherwise stated.
a. Transactions with KMP
Eddie King
During the year, a company related to this director, King Corporate Pty Ltd committed to lend $50,000 to Ragnar Metals Limited.
The loan facility was drawn down by the company on 16/02/2021. A facility fee of 6% ($3,000) was recorded on the loan and interest
of 10% accrued on the loan until repayment on 21/05/2021. Total interest paid amounted to $1,287.67
Steve Formica
During the year a company related to this director, Stevsand Investments Pty Ltd committed to lend $100,000 and then a further
$400,000 to Ragnar Metals Limited. The loan facility was drawn down by the company between September 2020 and May 2021.
A facility fee of 6% ($6,000) was recorded on the loan of $100,000 and 5% ($12,500) on the next $250,000 drawn and interest of
10% accrued on the loan until repayment on 21/05/2021. Total interest paid amounted to $6,547.95.
b. 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.
Note 18 Share-based payments
Share-based payment expense
Gross share-based payments
Note
2021
$
18a i)
133,791
133,791
2020
$
8,900
8,900
a. The following share-based payment arrangements existed at 30 June 2021
i. Share-based payments – Employee Share options
⚫ During the 2020 financial year the company issued 3,000,000 options to Steve Formica at an exercise price of $0.015
each, exercisable on or before 2 September 2022. During the year these were consolidated into 600,000 options at
an exercise price of $0.075 each. The valuation of these options was reported in the 2020 Annual Report.
⚫ On 21 May 2021 the company issued 15 million Director options (6 million to Steve Formica, 6 million to Eddie King
and 3 million to David Wheeler). These have an exercise price of $0.04 and an expiry date of 19 May 2023 restricted
for 2 years. See note 18c.
The total fair value of the 15,000,000 options of $122,943 was recognised as share-based employee expense.
⚫ On 21 May 2021 the company issued 4 million Employee options with a vesting date for 2,000,000 options after 12
months of employment and the remaining 2,000,000 options after 18 months of employment. They have an exercise
price of $0.04 and an expiry date of 19 May 2023. See note 18c
The total fair value of the 4,000,000 options of $45,532 will be recognised as share base employee expense over the
vesting period. (2021: $8,732)
⚫ On 17 June 2021 the company issued 2 million Employee options with a vesting date for 1,000,000 options after 12
months of employment and the remaining 1,000,000 options after 18 months of employment. They have an exercise
price of $0.06 and an expiry date of 17 June 2023. See note 18c
The total fair value of the 2,000,000 options of $34,530 will be recognised as share base employee expense over the
vesting period (2021: $1,320)
P a g e | 38
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
⚫ On 17 June 2021 the company issued 2 million Employee options with a vesting date for 1,000,000 options after 12
months of employment and the remaining 1,000,000 options after 18 months of employment. They have an exercise
price of $0.08 and an expiry date of 17 June 2023. See note 18c.
The total fair value of the 2,000,000 options of $31,249 will be recognised as share based employee expense over
the vesting period (2021: $797)
ii. Other Share-based payments – Share options
On 21 May 2021 the company issued 45 million Advisor options at $0.0001. These have an exercise price of $0.04 and
an expiry date of 19 May 2023 restricted for 2 years. The total fair value of the 45,000,000 options of $368,887 was
recognised as capital raising costs in the statement of changes in equity for the year. The company issued 4 million
Vendor Options with an exercise price of $0.04 and expiry 19/05/23 restricted for 2 years.
Assumptions Advisor Options:
Valuation date
Market price of Shares
Exercise price
Expiry date
Risk free interest rate
Dividend Yield
Expected future volatility
Vesting milestone (Time in office)
Indicative value per Unlisted Option
Number of options
Total Value of Unlisted Options
Assumptions Vendor Options:
Valuation date
Market price of Shares
Exercise price
Expiry date
Risk free interest rate
Dividend Yield
Expected future volatility
Vesting milestone (Time in office)
Indicative value per Unlisted Option
Number of options
Total Value of Unlisted Vendor Options
19 May 2021
$0.02
$0.04
19 May 2023
0.07%
0
110.1%
-
$0.0082
45,000,000
$368,828
19 May 2021
$0.02
$0.04
19 May 2023
0.07%
0
110.1%
-
$0.0082
4,000,000
$32,790
P a g e | 39
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
The total fair value of the 4,000,000 options of $32,790 was recognised as cost of acquisition of the new tenements during the
year.
⚫ On 27 May 2021 the company issued 91,666,497 listed options attaching to the 275.000.000 issue of shares under
the capital raising. There is one free attaching New Option for every 3 shares issued. Options are exercisable on or
before 19/05/2021 and an exercise price of $0.04.
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:
2021
2020
Number of
Options
Weighted
Average
Exercise Price
Number of
Options
Weighted
Average Exercise
Price
Outstanding at the beginning of the year
Consolidated 5:1
Lapsed
Granted
Outstanding at year-end
Exercisable at year-end
96,500,001
19,300,002
18,700,002
23,000,000
23,600,000
600,000
$0.0228
93,500,001
$0.0230
$0.114
$0.116
$0.045
$0.046
$0.075
3,000,000
96,500,001
96,500,001
$0.0150
$0.0228
$0.0228
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 director options have vested as at balance date and employee options vest as noted in note 12a.
iii. The weighted average remaining contractual life of unlisted options outstanding at year end was 1.88036 years (2020:
0.967 years). The weighted average exercise price of outstanding options at the end of the reporting period was
$0.04597 (2020: $0.0228).
c. Fair value of options grants during the period
During the year, the Company issued unlisted options to the Company’s Directors, Steve Formica, Eddie King and David
Wheeler as part of their employment package.
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:
P a g e | 40
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Assumptions: Director Options
Valuation date
Market price of Shares
Exercise price
Expiry date
Risk free interest rate
Dividend Yield
Expected future volatility
Vesting milestone (Time in office)
Indicative value per Unlisted Option
Number of options
Total Value of Unlisted Options
19 May 2021
$0.02
$0.04
19 May 2023
0.07%
0
110.1%
-
$0.0082
15,000,000
$122,943
The options have been valued in accordance with AASB 2 Share Based Payments and bought to account. A value of $122,943
has been expensed for the year.
During the year, the Company issued unlisted options as part of an employment package. (2 million vest after 12 months of
employment and 2 million vest after 18 months of employment)
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:
Assumptions : Employee Options
Valuation date
Market price of Shares
Exercise price
Expiry date
Risk free interest rate
Dividend Yield
Expected future volatility
Vesting milestone (Time in office)
Indicative value per Unlisted Option
Number of options
Total Value of Unlisted Options
7 April 2021
$0.02
$0.04
19 May 2023
0.055%
0
138.33%
12 months/18
months
$0.0114
4,000,000
$45,532
The options have been valued in accordance with AASB 2 Share Based Payments and bought to account. A value of $8,732
has been expensed for the year
P a g e | 41
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
During the year, the Company issued unlisted options to the Company’s employees as part of their employment package. (1
million of each tranche vest after 12 months of employment and the remaining 1 million of each tranche vest after 18 months
of employment)
Number of Options
Expiry Date
Exercise Price
2,000,000
2,000,000
19 May 2023
19 May 2023
$0.06
$0.08
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:
Assumptions ; Incentive Options
Valuation date
Market price of Shares
Exercise price
Expiry date
Risk free interest rate
Dividend Yield
Expected future volatility
Vesting milestone (Time in office)
Indicative value per Unlisted Option $0.06
Indicative value per Unlisted Option $0.08
Number of options
Total Value of Unlisted Options
7 April 2021
$0.02
$0.06/$0.08
19 May 2023
0.05%
0
138.33%
12 months/ 18
months
$0.0173
$0.0156
4,000,000
$65,779
The options have been valued in accordance with AASB 2 Share Based Payments and bought to account. A value of $2,118
has been expensed for the year.
Note 19 Commitments
The company’s minimum expenditure commitments for their Australian tenements is $45,880 for 2021/2022.
The company had no capital or other expenditure commitments at 30 June 2021 (2020: $Nil).
P a g e | 42
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Note 20 Contingent asset/liabilities
There were no contingent assets or liabilities as at the reporting date.
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 in Western Australia
and in Sweden. 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. Activities of the Group are managed on a Group structure basis and operating segments are therefore
determined on the same basis. In this regard the following list of reportable segments has been identified.
• Ragnar Metals Limited – Mineral Exploration in Western Australia
• Ragnar Sweden AB - Mineral Exploration in Sweden
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.
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 geographic segments as they
are not considered part of the core operations of any segment:
⚫
Income tax expense
⚫ Deferred tax assets and liabilities
⚫ Current tax liabilities
⚫ Other financial liabilities
P a g e | 43
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
For year ended 30 June 2021
Ragnar Metals
$
Ragnar Sweden
$
Elimination
Total
$
Segment Revenue
102
-
-
102
Segment Expenses
(1,422,991)
(19,083)
607,330
(834,744)
Segment Results
(1,422,889)
(19,083)
607,330
(834,642)
As at 30 June 2021
Segment Assets
Trade and other receivables
3,484,858
138,292
3,623,150
Non- current Assets
755,098
(749,395)
(5,703)
-
Exploration and evaluation assets
1,332,937
586,495
(187,801)
1,731,631
Total Segment Assets
Segment Liabilities
Current Liabilities
Total Segment Liabilities
5,572,893
(24,608)
(193,504)
5,354,781
(320,196)
(320,196)
(5,706)
(5,706)
(325,902)
-
(325,902)
Segment Net Assets
5,252,697
(30,314)
(193,504)
5,028,879
Note 22 Events subsequent to reporting date
No other matter or circumstance has arisen since 30 June 2021 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.
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:
P a g e | 44
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Floating
Interest
Rate
$
Financial Assets
⚫ Cash and cash equivalents
3,394,825
⚫ Trade and other receivables
-
Total Financial Assets
3,394,825
Fixed
Interest
Rate
$
-
-
-
Non-
interest
Bearing
$
2021
Total
$
Floating
Interest
Rate
$
-
3,394,825
142,060
228,325
228,325
-
228,325
3,623,150
142,060
Financial Liabilities
⚫ Trade and other payables
Total Financial Liabilities
Net Financial
Assets/(Liabilities)
-
-
-
-
(325,903)
(325,903)
(325,903)
(325,903)
-
-
3,394,825
-
(97,578)
3,297,247
142,060
Fixed
Interest
Rate
Non-
interest
Bearing
2020
Total
$
142,060
$
-
22,868
22,868
22,868
164,928
(122,223)
(122,223)
(122,223)
(122,223)
(99,355)
42,705
$
-
-
-
-
-
-
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.
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
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-.
P a g e | 45
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
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.
⚫ Contractual Maturities
The following are the contractual maturities of financial liabilities of the Group:
Within 1 Year
2021
$
2020
$
Greater Than 1 Year
2021
$
2020
$
Total
2021
$
2020
$
Financial liabilities due for payment
Trade and other payables
325,903
122,223
Total contractual outflows
325,903
122,223
Financial assets
Cash and cash equivalents
Trade and other receivables
3,394,825
228,325
142,060
22,868
Total anticipated inflows
3,623,150
164,928
Net (outflow)/inflow on financial
instruments
3,297,247
42,705
-
-
-
-
-
-
-
-
-
-
-
-
325,903
122,223
325,903
122,221
3,394,825
228,325
142,060
22,868
3,623,150
164,928
3,297,247
42,705
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier or at significantly
different amounts.
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.
P a g e | 46
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
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.
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.
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.
i.
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 2021
±100 basis points change in interest rates
Year ended 30 June 2020
±100 basis points change in interest rates
ii. Net Fair Values
(1) Fair value estimation
Profit
$
Equity
$
±7,931
±7,931
±3,917
±3,917
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 | 47
Notes to the consolidated financial statements
for the year ended 30 June 2021
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
c. Guarantees entered into by Ragnar Metals Limited for the debts
of its subsidiaries
There are no guarantees entered into by Ragnar Metals for the
debts of its subsidiaries as at 30 June 2021 (2020: 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.
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
2021
$
2020
$
3,484,858
130,890
2,088,035
431,341
5,572,893
562,231
320,196
106,820
320,196
106,820
5,252,697
455,411
32,704,462 28,641,172
2,334,902
878,334
(29,786,667) (29,064,095)
5,252,697
455,411
(1,422,052)
(407,528)
-
-
(1,422,052)
(2,058,932)
P a g e | 48
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Directors' declaration
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 20 to 48, 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 2021 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 10 September 2021
P a g e | 49
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
2021, 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 2021
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(a)(i).
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
P a g e | 50
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 – $1,731,631
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
financial
position.
Entity’s
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
includes specific
knowledge. This
requirements for expenditure to be
and
capitalised
asset
an
as
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
Consolidated Entity’s rights to tenure by
corroborating to government registries and
evaluating agreements in place with other
parties as applicable;
We
tested
the additions
to capitalised
expenditure for the year by evaluating a
for
sample of
recorded expenditure
consistency
capitalisation
to underlying records,
requirements
of
the
the
Consolidated Entity’s accounting policy and
subsequent requirements which must
the requirements of AASB 6;
be complied with
for capitalised
expenditure to continue to be carried
as an asset.
The assessment of impairment of
evaluation
and
exploration
expenditure being inherently difficult.
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 impairment of the capitalised
expenditure:
o
the licenses for the right to explore
expiring in the near future or are not
expected to be renewed;
P a g e | 51
Page | 2
Key Audit Matter
How our audit addressed the Key Audit Matter
o
o
substantive expenditure for further
exploration in the specific area is
neither budgeted or planned
decision
the
Consolidated Entity to discontinue
intent
by
or
activities in the specific area of
interest due to lack of commercially
viable quantities of resources; and
o
indicating
that, although a
data
development in the specific area is
to proceed,
likely
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.
Share Based Payments
Our procedures included amongst others:
As disclosed in Note 12, the Consolidated
Entity has various options on
to
consultants and related parties which are
subject to various performance and service
conditions.
issue
These are subject to the measurement and
recognition criteria of AASB 2 “Share-based
payments.
We have identified this as a key audit matter
as it involves significant assumptions made by
management in determining the probability of
certain performance conditions being met and
the significant amount of share based
payments during the year.
Other Information
review the reconciliation of Options issued
during the period;
Assessing
conditions of the options;
the underlying
terms and
Ascertain whether Options have been
valued correctly in accordance with AASB 2
based on the terms and conditions of the
options issued;
Assessed management’s
assumptions
made on
performance conditions being satisfied;
the probabilities of
the
We assessed
the adequacy of
the
disclosures in Note 12.
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 2021, but does not include
the financial report and our auditor’s report thereon.
P a g e | 52
Page | 3
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.
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(a)(i), 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.
P a g e | 53
Page | 4
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.
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.
P a g e | 54
Page | 5
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2021. 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 2021,
complies with section 300A of the Corporations Act 2001.
HALL CHADWICK WA PTY LTD
DOUG BELL CA
Partner
Dated at Perth this 10th day of September 2021
P a g e | 55
Page | 6
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
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 31 August 2021
337,684,889 ordinary fully paid shares held by 911 shareholders.
6,500,000 ordinary fully paid restricted shares held by 4 shareholders
b)
Listed Options over issued Shares
91,666,497 Listed Options with a $0.04 exercise price per option expiring 19 May 2023
c) Unlisted Options over Unissued Shares
◼ 4,000,000 Unlisted Options (Employee) with a $0.04 exercise price per Option expiring 19 May 2023
◼ 2,000,000 Unlisted Options (Employee) with a $0.06 exercise price per Option expiring 17 June 2023
◼ 2,000,000 Unlisted Options (Employee) with a $0.08 exercise price per Option expiring 17 June 2023
◼ 600,000 Unlisted Options with a $0.075 exercise price per Option expiring 2 September 2022
◼ 64,000,000 Unlisted Options (Broker and Vendor options) with a $0.04 exercise price per Option expiring 19 May
2023, restricted for 2 years
d)
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.
◼ Listed and 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 31 August 2021
a.
Name
Mr Jason Peterson
Number of Ordinary
Fully Paid Shares Held
% Held of Issued Ordinary
Capital
23,500,000
6.83
b. Distribution of Shareholders as at 31 August 2021
Category (size of holding)
Total Holders
Number
Ordinary
% Held of Issued
Ordinary Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
69
11
79
385
371
915
10,629
20,685
715,535
18,455,545
324,982,495
344,184,889
0.00
0.01
0.21
5.36
94.42
100.00
c.
Unmarketable Parcels as at 31 August 2021
As at 31 August 2021 there were 176 fully paid ordinary shareholders holding less than a marketable parcel of shares.
d. On-Market Buy-Back
There is no current on-market buy-back.
P a g e | 56
RAGNAR METALS LIMITED
AND CONTROLLED ENTITIES
ABN 12 108 560 069
ANNUAL REPORT 30 JUNE 2021
Additional Information for Listed Public Companies
a.
Restricted Securities
Of the total 344,184,889 ordinary shares 6,500.000 are unquoted and classified as restricted securities for 12 months
from the date of issue, being 19 May 2021
Of the 60,000,000 unlisted director and advisor options expiring 19 May 2023, the 45,000.000 advisor options are
restricted securities until 24 months from the date of issue of the securities, being 19 May 2021 and 15,000,000
director options until 24 months after the date of reinstatement to official quotation of the company’s securities.
4,000,000 unlisted vendor options expiring 19 May 2023 are restricted for 12 months after date of issue.
b. 20 Largest Shareholders — Ordinary Shares as at as at 31 August 2021
Sunset Capital Management Pty Ltd
17,000,000
1.
2.
3.
4.
5.
5.
HSBC Custody Nominees (Australia) Limited
Taurus Capital Group Pty Ltd
Shah Nominees Pty Ltd >
Surfit Capital Pty Ltd
Ton-Cheng Pty Ltd
7. Mr Peter Francis Scanlan
8.
9.
9.
9.
Bellcoo Investments Pty Ltd
Celtic Capital Pte Ltd
First One Realty Pty Ltd
Formica Investments Pty Ltd
12.
JAPL Nominees Pty Ltd
13. Stevsand Investments Pty Ltd
14. Mr Brian Joseph Glynn
15. Surf Coast Capital Pty Ltd
16. Cityside Investments Pty Ltd
17. Mr Ariel Edward King
18.
Isla Zast Pty Ltd
19. Annbrool Capital Pty Ltd
20. Domran Investments Pty Ltd
7,847,179
7,257,143
6,250,000
6,000,000
6,000,000
5,632,629
5,500,000
5,000,000
5,000,000
5,000,000
4,600,000
4,000,000
3,700,000
3,600,000
3,500,000
3,300,000
3,250,000
3,075,000
3,010,087
4.94
2.28
2.11
1.82
1.74
1.74
1.64
1.60
1.45
1.45
1.45
1.34
1.16
1.08
1.05
1.02
0.96
0.94
0.89
0.87
108,522,038
31.53
2
3
The Company Secretary is Jessamyn Lyons.
Principal registered office
As disclosed in the Corporate Directory on page i of this Annual Report.
4
Registers of securities
As disclosed in the Corporate Directory on page i of this Annual Report.
5
Stock exchange listing
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian
Securities Exchange Limited, As disclosed in the Corporate Directory on page i of this Annual Report.
6
Use of funds
The Company has used its funds in accordance with its initial business objectives.
P a g e | 57