Resource Base Limited
ABN 57 113 385 425
Annual Report - 30 June 2020
Resource Base Limited
Corporate directory
30 June 2020
Directors
Shannon Green (Executive Chairman)
Jamie Myers (Non-Executive Director)
Michael Kennedy (Non-Executive Director)
Company secretary
Shannon Coates
Registered office
Principal place of business
Share register
Auditor
Suite 5, 62 Ord Street
West Perth WA 6005
Suite 5, 62 Ord Street
West Perth WA 6005
Link Market Services
Level 4 Central Park
152 St George Terrace
Perth WA 6000
RSM Australia Partners
Level 21 55 Collins Street
Melbourne VIC 3000
Stock exchange listing
Resource Base Limited shares are listed on the Australian Securities Exchange (ASX
code: RBX)
Corporate Governance Statement
Refer to the company's Corporate Governance Statement at
www.resourcebase.com.au
1
Resource Base Limited
Directors' report
30 June 2020
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Resource Base Limited (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 30 June 2020.
Directors
The following persons were directors of Resource Base Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Shannon Green (appointed 1 June 2020)
Jamie Myers (appointed 1 June 2020)
Michael Kennedy
Peter Kelliher (resigned 1 June 2020)
Angelo Siciliano (resigned 1 June 2020)
Principal activities
During the financial year the principal continuing activities of the consolidated entity consisted of assessing precious metal
and other projects.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $897,898 (30 June 2019: $886,510).
The company initially continued to focus on identification and implementation of opportunities to re-activate the Broula King
processing plant, and to utilise such a reactivation programme as the rationale for a re-listing with the ASX.
The prime project revolved around access to gold-bearing ore from the Adelong gold project, and the transport of ore to the
Broula King processing plant. The owner of the Adelong property, Macquarie Gold Limited, was placed into receivership in
March, 2019, and discussions continued with the appointed receiver. An expression of interest was lodged, and due diligence
initiated. However, uncertainty re the process and particularly the timing of likely outcomes eventuated, and the company
decided not to proceed to the lodgement of formal binding offer.
The other project of interest was the potential to acquire a magnetite orebody in close proximity to the Broula King site, and
to modify the processing plant to produce a high grade magnetite product for supply into the coal washery industry in regional
N.S.W. The magnetite project was owned by a company (Abterra Australia Pty Ltd) that was subject to a bankruptcy process.
Both of these projects entailed extensive discussions and negotiations with a range of regulatory authorities, both to permit
the integration of the potential ore sources into the Broula King site, as well as the adjustment of the Broula King mine
operating authorisations and permits to enable the revised operational scenarios. Extensive time and expense was incurred
in seeking to bring these various aspects to a coordinated and agreed outcome, within an acceptable timeframe. These
events were complicated by the fact of administration/bankruptcy, which introduced an additional level of complexity.
However, it was essentially a reflection of the increasing complexity of the overall regulatory and permitting processes
pertaining to the mining environment in general but in particular the extended timeframes and uncertainty of outcome
introduced.
Ultimately, it proved difficult to finalise the necessary permit reviews and conditions in a timely manner, and it was judged
necessary to recognise the uncertainty and interminably complex & protracted involved, and to withdraw from the process.
In that context, a revised corporate strategy was adopted, that re-directed focus from the reactivation of the Broula King site,
extending to consideration of vending the Broula King JV site to external interested parties. Refer to note 29 of the financial
statements.
A revised strategy was adopted to seek opportunities in new more greenfield exploration prospects, with particular focus on
gold projects. This revised strategy extended to a renovation of the Board (ref. ASX announcement 1 June, 2000) under
which directors experienced in this new strategic context were appointed.
2
Resource Base Limited
Directors' report
30 June 2020
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
On 18 August 2020, the company announced that entered into a binding exclusive option agreement with Sunshine
Reclamation Ltd granting an exclusive option to purchase 100% of the issued shares in the company's 100% owned
subsidiary Broula King Joint Venture Pty Ltd.
Under the agreement a non-refundable $50,000 option fee was payable, granting a 2 month exclusivity period to undertake
all required due diligence. If the option to purchase is exercised a further $750,000 is payable on the below timeline:-
●
●
●
$150,000 payable within 5 business days of execution date;
$200,000 paid ad deferred consideration by 30 March 2021; and
$400,000 paid as deferred consideration by 30 April 2021.
Since 30 June 2020, the company has entered into agreements with lenders and creditors whereby current liabilities totalling
$3.2 Million, have been deferred until 30 September 2021.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity and the expected results of operations have
not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the
consolidated entity.
Environmental regulation
The economic entity holds participating interests in a number of mining and exploration tenements. The various authorities
granting such tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions
given to it under those terms of the tenement. There were no breaches of these regulations during the 2020 financial year.
Information on directors
Name:
Title:
Qualifications:
Experience and expertise:
Shannon Green
Executive Chairman (appointed 1 June 2020)
Mr Green’s professional qualifications include Qld SSE Mine Managers Certificate,
Graduate Diploma Mining Engineering, Diploma of Mining (Surface & underground)
and a Diploma of (Finance) and is currently completing an MBA.
Mr Green has considerable recent corporate experience including, project transactions,
capital raisings, marketing, technical and commercial due diligence. He has extensive
mining and project development experience and his intimate knowledge of the equity
and commodity markets provides the skills and expertise needed to assist the
Company as it seeks to re-list on the ASX. Mr Green has over 20 years Corporate,
resource development and mining operations experience, with extensive experience
working in Africa and Australia having managed several significant projects from
Feasibility through construction and into operation and held senior leadership roles with
several Australian iron ore and gold mining operations.
Winmar Resources Ltd (ASX: WFE).
Other current directorships:
Former directorships (last 3 years): Lindian Resources Limited (ASX: LIN) (resigned 26 May 2020)
Special responsibilities:
Interests in shares:
Nil
Nil
3
Resource Base Limited
Directors' report
30 June 2020
Name:
Title:
Qualifications:
Experience and expertise:
Peter Kelliher
Non-Executive Director (resigned 1 June 2020)
B.Sc (Hons), Grad Dip GeoSc, MAusIMM, MSME
Mr Kelliher has 34 years of varied metallurgical experience, predominantly in the field
of gravity treatment and gold processing. His expertise is in small to medium size
mining operations where cost management is a priority. His work has taken him
throughout Australia and on several overseas assignments. He holds a Mine Managers
Certificate for Victoria and was Manager of the Heathcote open cut gold mine from
1993 to 1995 and of the Avoca alluvial gold project for Sedimentary Holdings Ltd from
1996 to 2000. As Manager his responsibilities included dealing with regulatory
processes, community consultation, environmental management and site
rehabilitation. Most recently he has operated his own consulting business. This has
included assignments at the Ardlethan alluvial tin mine (2001 to 2004) and the Mt
Boppy gold mine (1995) in NSW. In both cases he assumed the position of Registered
Manager for extended periods.
Other current directorships:
N/A
Former directorships (last 3 years): N/A
N/A
Special responsibilities:
N/A
Interests in shares:
N/A
Interests in options:
Name:
Title:
Experience and expertise:
Angelo Siciliano
Non-Executive Director (resigned 1 June 2020)
Angelo Siciliano is a Fellow of the Institute of Public Accountants. He has had 21 years'
experience in the field of Accounting and over this period has focused predominantly
on property development and investment. For the last 17 years Mr Siciliano has owned
and managed an accounting practice with his major emphasis being taxation and
business consulting.
Other current directorships:
N/A
Former directorships (last 3 years): NA
N/A
Special responsibilities:
N/A
Interests in shares:
N/A
Interests in options:
Name:
Title:
Experience and expertise:
Michael Kennedy
Non-Executive Director
Michael Kennedy has enjoyed a 44 year career in the non-ferrous mining and smelting
industry, and has held a number of senior marketing and logistics roles with the
CRA/RTZ Group, managing raw material sales from the Bougainville, Broken Hill,
Cobar and Woodlawn mines, managed raw material purchases and supply into the Port
Pirie lead smelter, Budel zinc smelter (Netherlands), and the Avonmouth (UK) and
Cockle Creek (Newcastle) zinc-lead smelters. He was the resident Director of the Korea
Zinc group of companies in Australia from 1991 until 2005, which encompassed the
construction and commissioning of the Sun Metals zinc refinery in Townsville.
Terramin Australia Limited (ASX: TZN)
Other current directorships:
Former directorships (last 3 years): Nil
Nil
Special responsibilities:
Nil
Interests in shares:
Nil
Interests in options:
4
Resource Base Limited
Directors' report
30 June 2020
Name:
Title:
Experience and expertise:
Jamie Myers
Non-Executive Director (appointed 1 June 2020)
Mr Myers has over 15 years’ in equities dealing and corporate advisory experience.
Previously the co-founder and Executive Director of iiZen Equites before a corporate
exit to Paterson’s Securities, Mr Myers has held equity advisory roles at iiZen Equities,
Paterson’s Securities and Ord Minnett Limited and is currently an Associate Director of
Corporate at Adelaide based Baker Young Stockbrokers. Mr Myers has extensive
small cap experience, most recently working side-by-side with Winmar’s Executive
Chairman, Mr Shannon Green, in the re-organisation, recapitalisation and marketing of
Lindian Resources Limited (ASX: LIN) (ASX: LIN) and Winmar Resources Ltd (ASX:
WFE). Mr Myers extensive capital market experience will be valuable to the company
as it seeks to re-list on the ASX.
Winmar Resources Ltd (WFE)
Other current directorships:
Former directorships (last 3 years): Nil
Nil
Special responsibilities:
Nil
Interests in shares:
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Justyn Stedwell is a professional company secretary consultant with over eleven years’ experience as a Company Secretary
of ASX listed companies in a wide range of industries. His qualifications include a Bachelor of Commerce (Management and
Economics) from Monash University, a Graduate Diploma of Accounting from Deakin University and a Graduate Diploma in
Applied Corporate Governance at the Governance Institute of Australia
Justyn was replaced by Shannon Coates on 1 July 2020. Shannon has 25 years of experience in corporate law and
compliance and is currently company secretary to a number of ASX listed entities.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2020, and
the number of meetings attended by each director were:
Peter Kelliher
Angelo Siciliano
Michael Kennedy
Full Board
Attended
Held
2
2
2
2
2
2
Held: represents the number of meetings held during the time the director held office.
Remuneration report (audited)
The report details the nature and amount of remuneration for each director of Resource Base Limited and for the executives
receiving the highest remuneration in accordance with the requirements of the Corporations Act 2001 and its Regulations. It
also provides the remuneration disclosures required by Aus 25.4 to Aus 25.7.2 of AASB 124 Related Party Disclosures,
which have been transferred to the Remuneration report in accordance with Corporations regulation 2M.6.04. For the
purposes of this report, the term “executive” encompasses all directors of the Company.
Remuneration consists of a fixed remuneration and a long-term incentive portion as considered appropriate. The Board
believes that options are an effective remuneration tool which preserves the cash reserves of the company whilst providing
valuable remuneration.
5
Resource Base Limited
Directors' report
30 June 2020
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The Board has structured a remuneration framework that is market competitive and complementary to the reward strategy
of the consolidated entity and company.
The reward framework is designed to align rewards to shareholders' interests. The Board have considered that it should seek
to enhance shareholders' interests by:
●
focus on sustained growth in shareholder wealth through growth in share price, and delivering constant or increasing
return on assets as well as focusing the directors on key non-financial drivers of value; and
attracting and retains high calibre executives.
●
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors’ remuneration
Non-executive directors' fees are paid within an aggregate limit which is approved by the shareholders from time to time.
Retirement payments, if any, are agreed to be determined in accordance with the rules set out in the Corporations Act at the
time of the Directors retirement or termination. Non-Executive Directors remuneration may include an incentive portion of
bonuses and/or options as considered appropriate by the Board, which may be subject to shareholder approval in accordance
with the ASX listing rules.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned
amongst directors is reviewed annually. The Board considers the amount of director fees being paid by comparable
companies with similar responsibilities and the experience of the non-executive directors when undertaking the annual review
process.
The Company determines the maximum amount for remuneration, including thresholds for share-based remuneration, for
directors by resolution. Currently, the maximum amount of remuneration allocated to all non-executive directors approved by
shareholders is $200,000. Further details regarding components of director and executive remuneration are provided in the
notes to the financial statements
Executive remuneration
In determining the level and make up of executive remuneration, the Board negotiates a remuneration to reflect the market
salary for a position and individual of comparable responsibility and experience. Due to the limited size of the Company and
of its operations and financial affairs, the use of a separate remuneration committee is not considered appropriate.
Remuneration is regularly compared with the external market by participation in industry surveys and during recruitment
activities generally. If required, the Board may engage an external consultant to provide independent advice in the form of
a written report detailing market levels of remuneration for comparable executive roles.
Company performance, shareholder wealth and director and executive remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and executives.
The achievement of this aim has been through the issue of options to directors to encourage the alignment of personal and
shareholder interests. The recipients of the options are responsible for growing the Company and increasing shareholder
value. If they achieve this goal, the value of the options granted to them will also increase. Therefore, the options provide an
incentive to the recipients to remain with the Company and to continue to work to enhance the Company’s value.
Use of remuneration consultants
The company has not made use of remuneration consultants during the current or prior financial years.
6
Resource Base Limited
Directors' report
30 June 2020
Voting and comments made at the company's 22nd November 2019 Annual General Meeting ('AGM')
At the 22nd November 2019 AGM, 98.59% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2019. The company did not receive any specific feedback at the AGM regarding its remuneration
practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
Short-term benefits
Post-employment
benefits
Share-
based
payments
2020
Non-Executive Directors:
Angelo Siciliano *
Peter Kelliher *
Michael Kennedy
Jamie Myers **
Executive Directors:
Shannon Green **
*
**
resigned on 1 June 2020
appointed 1 June 2020
2019
Non-Executive Directors:
Angelo Siciliano
Peter Kelliher
Michael Kennedy
Martin Janes *
Cash salary
and fees
$
Bonus
$
Non-
Super-
monetary annuation
$
$
Termination Equity-
settled
$
$
18,068
82,902
19,710
4,563
13,688
138,931
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
18,068
82,902
19,710
4,563
13,688
138,931
-
-
-
-
-
-
Short-term benefits
Post-employment
benefits
Share-
based
payments
Cash salary
and fees
$
Bonus
$
Non-
Super-
monetary annuation
$
$
Termination Equity-
settled
$
$
19,710
80,710
19,710
13,388
133,518
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
-
-
-
-
-
19,710
80,710
19,710
13,388
133,518
*
resigned on 20 August 2018.
7
Resource Base Limited
Directors' report
30 June 2020
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Angelo Siciliano
Peter Kelliher
Michael Kennedy
Martin Janes
Jamie Myers
Executive Directors:
Shannon Green
Fixed remuneration
2019
2020
At risk - STI
At risk - LTI
2020
2019
2020
2019
100%
100%
100%
-
100%
100%
100%
100%
100%
-
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Details:
Shannon Green
Executive Chairman
1 June 2020
$150,000 per year plus statutory superannuation
Jamie Myers
Non-Executive Director
1 June 2020
$50,000 per year plus statutory superannuation
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2020.
Options
There were no options over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2020.
Additional information
The earnings of the consolidated entity for the five years to 30 June 2020 are summarised below:
2020
$
2019
$
2018
$
2017
$
2016
$
Profit / (loss) before income tax
Profit/(loss) after income tax
(897,898)
(897,898)
(886,510)
(886,510)
(681,942)
(681,942)
(902,924)
(902,924)
(991,176)
(991,176)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year end ($) *
Basic earnings per share (cents per share)
-
(3.266)
-
(3.225)
0.028
(2.481)
0.070
(3.361)
0.005
(6.498)
2020
2019
2018
2017
2016
8
Resource Base Limited
Directors' report
30 June 2020
*
The company was suspended from official quotation at 30 June 2019 and 30 June 2020.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Received
as part of
the start of
the year
remuneration Additions
Disposal
/ other
Balance at
the end of
the year
Ordinary shares
Peter Kelliher *
*
held on resignation on 1 June 2020.
73,381
73,381
-
-
-
-
(73,381)
(73,381)
-
-
This concludes the remuneration report, which has been audited.
Shares under option
There were no unissued ordinary shares of Resource Base Limited under option outstanding at the date of this report.
Shares issued on the exercise of options
There were no ordinary shares of Resource Base Limited issued on the exercise of options during the year ended 30 June
2020 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to 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 part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the company who are former partners of RSM Australia Partners
There are no officers of the company who are former partners of RSM Australia Partners.
9
Resource Base Limited
Directors' report
30 June 2020
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Michael Kennedy
Director
30 September 2020
10
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000 PO Box 248
Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Resource Base Limited for the financial year ended 30 June 2020, I declare that to the best of my knowledg
e and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
Dated: 30 September 2020
Melbourne, Victoria
THE POWER OF BEING UNDERSTOODAUDIT | TAX | C
ONSULTING
11
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each
member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separat
e legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Resource Base Limited
Contents
30 June 2020
13
Statement of profit or loss and other comprehensive income
14
Statement of financial position
Statement of changes in equity 15
16
Statement of cash flows
17
Notes to the financial statements
40
Directors' declaration
41
Independent auditor's report to the members of Resource Base Limited
44
ASX additional Information
General information
The financial statements cover Resource Base Limited as a consolidated entity consisting of Resource Base Limited and the
entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is
Resource Base Limited's functional and presentation currency.
Resource Base Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Suite 5, 62 Ord Street
West Perth WA 6005
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 30 September 2020.
12
Resource Base Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Consolidated
Note
2020
$
2019
$
Revenue from continuing operations from continuing operations
5
28,319
139,783
Interest revenue calculated using the effective interest method
8,855
13,007
Expenses
Administration expenses
Occupancy
Other expenses
Finance costs
Loss before income tax expense from continuing operations
Income tax expense
Loss after income tax expense from continuing operations
Loss after income tax expense from discontinued operations
Loss after income tax expense for the year attributable to the owners of
Resource Base Limited
6
7
8
(10,387)
(9,780)
(14,032)
(315,671)
(27,783)
(210,546)
(2,124)
(188,508)
(312,696)
(276,171)
-
-
(312,696)
(276,171)
(585,202)
(610,339)
(897,898)
(886,510)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year attributable to the owners of Resource
Base Limited
(897,898)
(886,510)
Total comprehensive loss for the year is attributable to:
Continuing operations
Discontinued operations
(312,696)
(585,202)
(276,171)
(610,339)
(897,898)
(886,510)
Cents
Cents
Earnings per share for loss from continuing operations attributable to the
owners of Resource Base Limited
Basic loss per share
Diluted loss per share
31
31
(1.137)
(1.137)
(1.005)
(1.005)
Earnings per share for loss from discontinued operations attributable to the
owners of Resource Base Limited
Basic loss per share
Diluted loss per share
31
31
(2.129)
(2.129)
(2.220)
(2.220)
Earnings per share for loss attributable to the owners of Resource Base
Limited
Basic loss per share
Diluted loss per share
31
31
(3.266)
(3.266)
(3.225)
(3.225)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
13
Resource Base Limited
Statement of financial position
As at 30 June 2020
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Non-current assets classified as held for sale
Total current assets
Non-current assets
Plant and equipment
Mining equipment
Other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Liabilities directly associated with assets classified as held for sale
Total current liabilities
Non-current liabilities
Payables
Provisions
Total non-current liabilities
Total liabilities
Net liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total deficiency in equity
Consolidated
Note
2020
$
2019
$
9
10
11
12
13
14
15
16
17
24,265
71,780
3,204
99,249
1,022,254
1,121,503
234,881
34,268
32,774
301,923
-
301,923
203
-
-
203
2,271
369,750
717,514
1,089,535
1,121,706
1,391,458
598,241
2,630,115
3,228,356
572,000
3,800,356
936,638
1,962,329
2,898,967
-
2,898,967
210,588
-
210,588
-
500,000
500,000
4,010,944
3,398,967
(2,889,238)
(2,007,509)
18
19
14,602,953 14,602,953
30,414
(16,640,876)
46,583
(17,538,774)
(2,889,238)
(2,007,509)
The above statement of financial position should be read in conjunction with the accompanying notes
14
Resource Base Limited
Statement of changes in equity
For the year ended 30 June 2020
Consolidated
Balance at 1 July 2018
Issued
Reserves
Accumulated
capital
$
$
losses
$
Total
deficiency in
equity
$
14,602,953
30,414
(15,754,366)
(1,120,999)
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
-
-
-
-
-
-
(886,510)
-
(886,510)
-
(886,510)
(886,510)
Balance at 30 June 2019
14,602,953
30,414
(16,640,876)
(2,007,509)
Consolidated
Issued
Reserves
Accumulated
capital
$
$
losses
$
Total
deficiency in
equity
$
Balance at 1 July 2019
14,602,953
30,414
(16,640,876)
(2,007,509)
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Equity portion of convertible notes
-
-
-
-
-
-
-
(897,898)
-
(897,898)
-
(897,898)
(897,898)
16,169
-
16,169
Balance at 30 June 2020
14,602,953
46,583
(17,538,774)
(2,889,238)
The above statement of changes in equity should be read in conjunction with the accompanying notes
15
Resource Base Limited
Statement of cash flows
For the year ended 30 June 2020
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Other revenue
Interest and other finance costs paid
Refund of security deposits
Consolidated
Note
2020
$
2019
$
11,966
(673,698)
124,187
(752,067)
(661,732)
11,600
24,526
(10,638)
25,628
(627,880)
13,007
-
(16,301)
-
Net cash used in operating activities
30
(610,616)
(631,174)
Cash flows from investing activities
Payment of deposits for acquisition of non-current assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from borrowings
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
-
-
(65,010)
(65,010)
400,000
900,000
400,000
900,000
(210,616)
234,881
203,816
31,065
24,265
234,881
The above statement of cash flows should be read in conjunction with the accompanying notes
16
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period, and determined
that there was no material impact on its financial statements in the current reporting year.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the consolidated entity.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees
eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the
operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the
statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments
are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a
lessor accounts for leases. The company's only lease expired in July 2019 and for this reason the impact of the adopting
this standard was not material.
Going concern
The consolidated financial report has been prepared on a going concern basis, which assumes continuity of normal business
activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
For the year ended 30 June 2020 the consolidated entity incurred a loss of $897,898 and had negative cash flows from
operations $610,616. In addition, as at 30 June 2020, the consolidated entity’s current liabilities exceeded its current assets
by $2,678,853 and net liabilities of $2,889,238.
The Directors have assessed the consolidated entity’s current financing position and the cashflow forecast for the next 12
months and are of the believe that the adoption of the going concern basis of accounting is appropriate due to the following
factors:
●
●
●
●
●
On 18 August 2020, the company announced that entered into a binding exclusive option agreement with Sunshine
Reclamation Ltd granting an exclusive option to purchase 100% of the issued shares in the company's 100% owned
subsidiary Broula King Joint Venture Pty Ltd. Under the agreement a non-refundable $50,000 option fee was payable,
granting a 2 month exclusivity period to undertake all required due diligence. If the option to purchase is exercised a
further $750,000 is payable before 30 April 2021;
Since 30 June 2020, the company has entered into agreements with lenders and creditors whereby current liabilities
totalling $3.2m, have been deferred until 30 September 2021;
In July 2020, the company has had a $65,010 deposit refunded in relation to a land acquisition, which has been used
to assist with short term working capital requirement;
The board is considering a range of options as part of the restructure of the Company including negotiations with parties
regarding a suitable project for the company, which will allow the company to access equity capital markets for any
additional working capital requirements; and
The ability of the consolidated entity to scale back certain activities if required.
17
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
In the event that the consolidated entity is unsuccessful in the matters set out above, there is material uncertainty whether
the consolidated entity will continue as a going concern and therefore whether it will realise assets and discharge liabilities
in the normal course of business and at the amounts shown in the financial report.
The financial report does not include any adjustments relating to the recoverability and classification of recorded asset
amounts or to the amounts and classification of liabilities that might be necessarily incurred should the consolidated entity
not continue as a going concern.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 27.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Resource Base Limited
('company' or 'parent entity') as at 30 June 2020 and the results of all subsidiaries for the year then ended. Resource Base
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
18
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Revenue recognition
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity:
identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price
which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to
the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to
be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject
to the constraining principle are recognised as a refund liability.
Rent
Rent revenues from sub-leases are recognised on a straight-line basis over the lease term.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
●
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
19
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Discontinued operations
A discontinued operation is a component of the consolidated entity that has been disposed of or is classified as held for sale
and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan
to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately on the face of the statement of profit or loss and other
comprehensive income.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written
off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective
evidence that the consolidated entity will not be able to collect all amounts due according to the original terms of the
receivables.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Non-current assets or disposal groups classified as held for sale
Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continued use. They are measured at the lower of their carrying
amount and fair value less costs of disposal. For non-current assets or assets of disposal groups to be classified as held for
sale, they must be available for immediate sale in their present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the non-current assets and assets of disposal
groups to fair value less costs of disposal. A gain is recognised for any subsequent increases in fair value less costs of
disposal of a non-current assets and assets of disposal groups, but not in excess of any cumulative impairment loss
previously recognised.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses
attributable to the liabilities of assets held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of disposal groups classified as held for sale are presented
separately on the face of the statement of financial position, in current assets. The liabilities of disposal groups classified as
held for sale are presented separately on the face of the statement of financial position, in current liabilities.
Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
20
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Depreciation is calculated on a straight-line basis to write off the net cost of each item of plant and equipment (excluding
land) over their expected useful lives as follows:
Plant and equipment
Computer equipment
5 years
3-5 years
Depreciation of mining equipment is described in the 'Mining assets' accounting policy.
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Mining assets
Capitalised mining development costs include expenditures incurred to develop new ore bodies to define further
mineralisation in existing ore bodies, to expand the capacity of a mine and to maintain production. Mining development also
includes costs transferred from exploration and evaluation phase once production commences in the area of interest. Mining
equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Amortisation of mining development is computed by the units of production basis over the estimated mineral resource. The
assets are amortised from the date on which steady state production commences. The amortisation is calculated over the
estimated life of the mineral resource, with the estimation reviewed annually.
The mining assets were written down to their estimated residual value at 30 June 2014. A review of the estimated residual
value is performed at each reporting period.
Restoration costs expected to be incurred are provided for as part of development phase that give rise to the need for
restoration.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Borrowings
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the statement
of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a market rate for an
equivalent non-convertible bond and this amount is carried as a non-current liability on the amortised cost basis until
extinguished on conversion or redemption. The increase in the liability due to the passage of time is recognised as a finance
cost. The remainder of the proceeds are allocated to the conversion option that is recognised and included in shareholders
equity as a convertible note reserve, net of transaction costs. The carrying amount of the conversion option is not remeasured
in the subsequent years. The corresponding interest on convertible notes is expensed to profit or loss.
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The
increase in the provision resulting from the passage of time is recognised as a finance cost.
Issued capital
Ordinary shares are classified as equity.
21
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to the owners of Resource Base Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. Judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Classification of Broula King Joint Venture
During the year the company embarked on a process to dispose of its Broula King assets. On 18 August 2020, the company
announced that entered into a binding exclusive option agreement with Sunshine Reclamation Ltd granting an exclusive
option to purchase 100% of the issued shares in the company's 100% owned subsidiary Broula King Joint Venture Pty Ltd.
Under the agreement a non-refundable $50,000 option fee was payable, granting a 2 month exclusivity period to undertake
all required due diligence. If the option to purchase is exercised a further $750,000 is payable on the below timeline:-
●
●
●
$150,000 payable within 5 business days of execution date;
$200,000 paid ad deferred consideration by 30 March 2021; and
$400,000 paid as deferred consideration by 30 April 2021.
22
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Based on the above, the board have deemed that this disposal was highly probable at 30 June 2020, and has disclosed
Broula King's assets and liabilities as current and held for sale and its operations as discontinued. The consideration as
described above exceeds the carrying value of the related assets and liabilities at 30 June 2020.
Provision for rehabilitation
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or mined. The
consolidated entity's mining and exploration activities are subject to various laws and regulations governing the protection of
the environment. The consolidated entity recognises management's best estimate for assets retirement obligations and site
rehabilitations in the period in which they are incurred. Actual costs incurred in the future periods could differ materially from
the estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates
could affect the carrying amount of this provision.
During the year the company engaged a consultant to estimate the valuation of the provision and it was increased to
$572,000. This provision has been determined to be directly associated with the Broula King subsidiary classified as Non-
current asset held for sale (refer to note 15).
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses. As at 30 June 2020, deferred
tax assets have not been recognised because their realisation, is not deemed probable.
Note 3. Impact of COVID 19 pandemic
During the year ended 30 June 2020, the COVID-19 was declared a pandemic by the World Health Organisation (WHO).
The pandemic has adversely affected the global economy, including an increase in unemployment, decrease in consumer
demand, interruptions in supply chains, and tight liquidity and credit conditions. Since its outbreak, governments have set up
measures to contain the pandemic. All states have required entities to limit or suspend business operations, and have also
implemented travel restrictions and quarantine measures. Monetary and fiscal stimulus packages have also been introduced
by both federal and state governments. The impact which COVID 19 has had on the consolidated entity is set out below.
The consolidated entity's Broula King project was in care and maintenance phase during the entire financial year. This has
meant the impact of the COVID 19 pandemic has not been significant. For this reason, the consolidated entity has not been
entitled to any of the state or federal governments' COVID stimulus response.
Note 4. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into one operating segment, being the exploration and production of gold in Australia.
This operating segment is based on the internal reports that are reviewed and used by the Board of Directors (who are
identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of
resources.
23
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 5. Revenue from continuing operations
From continuing operations
Revenue from contracts with customers
Rent
Other revenue
Other revenue
Revenue from continuing operations from continuing operations
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Major product lines
Rent
Geographical regions
Australia
Timing of revenue recognition
Services transferred over time
Note 6. Expenses
Loss before income tax from continuing operations includes the following specific expenses:
Depreciation
Plant and equipment
Finance costs
Interest on amount payable on land acquisition
Interest on amounts payable to former directors
Interest and facility fees payable on loan from major shareholder
Finance costs expensed
Leases
Minimum lease payments
Superannuation expense
Defined contribution superannuation expense
Employee benefits expense excluding superannuation
Employee benefits expense excluding superannuation
24
Consolidated
2020
$
2019
$
3,793
139,783
24,526
-
28,319
139,783
Consolidated
2020
$
2019
$
3,793
139,783
3,793
139,783
3,793
139,783
Consolidated
2020
$
2019
$
2,068
5,781
10,400
21,078
284,193
13,217
31,690
143,601
315,671
188,508
-
186,300
-
-
712
5,000
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 7. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense from continuing operations
Loss before income tax expense from discontinued operations
Tax at the statutory tax rate of 30%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Current year tax losses not recognised
Current year temporary and permanent differences not recognised
Income tax expense
Consolidated
2020
$
2019
$
(312,696)
(585,202)
(276,171)
(610,339)
(897,898)
(886,510)
(269,369)
(265,953)
310,668
(41,299)
225,204
40,749
-
-
Consolidated
2020
$
2019
$
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 30%
11,853,181 10,817,621
3,555,954
3,245,286
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses
can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
The taxation benefits of tax losses and temporary differences not brought to account will only be obtained if:
i) the consolidated entity derives future assessable income of a nature and of an amount sufficient to enable the benefit from
the deductions for the losses to be realised;
ii) the consolidated entity continues to comply with the conditions for deductibility imposed by law; and
iii) no change in tax legislation adversely affects the consolidated entity in realising the benefits from deducting the losses.
Note 8. Discontinued operations
Description
As disclosed in note 2, the operation of the consolidated entity's Broula King project have been disclosed as discontinued.
25
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 8. Discontinued operations (continued)
Financial performance information
Impairment of mine equipment
Administration expenses
Corporate expenses
Care and maintenance expenses
Movement in rehabilitation provision
Total expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense from discontinued operations
Cash flow information
Net cash used in operating activities
Net cash from investing activities
Net cash from financing activities
Consolidated
2020
$
2019
$
-
(182,164)
(274,646)
(56,392)
(72,000)
(585,202)
(42,750)
(188,157)
(279,176)
(100,256)
-
(610,339)
(585,202)
-
(610,339)
-
(585,202)
(610,339)
Consolidated
2020
$
2019
$
(240,323)
-
-
(291,849)
-
-
Net decrease in cash and cash equivalents from discontinued operations
(240,323)
(291,849)
Note 9. Current assets - trade and other receivables
Trade receivables
Other receivables
Interest receivable
GST receivable
Consolidated
2020
$
2019
$
-
65,110
-
6,670
7,794
-
2,745
23,729
71,780
34,268
26
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 10. Current assets - non-current assets classified as held for sale
As disclosed in note 2, relating to the consolidated entity's Broula King project have been classified as held for sale.
Mine equipment
Deposit on land
Security deposits
Note 11. Non-current assets - mining equipment
Developed mine - at cost
Less: Accumulated amortisation
Less: Impairment
Mine equipment - at cost
Less: Accumulated depreciation
Less: Impairment
Consolidated
Balance at 1 July 2018
Impairment of assets
Balance at 30 June 2019
Transfer to assets for held for sale
Balance at 30 June 2020
Consolidated
2020
$
2019
$
369,750
140,000
512,504
1,022,254
-
-
-
-
Consolidated
2020
$
2019
$
-
-
-
-
-
-
-
-
-
8,635,806
(4,777,081)
(3,858,725)
-
2,030,602
(1,265,602)
(395,250)
369,750
369,750
Mine
equipment
$
412,500
(42,750)
369,750
(369,750)
-
During the year the mine equipment has been transferred to assets held for sale at is highly probable that it will be realised
via a sales transaction. Refer to note 2 and note 10.
Note 12. Non-current assets - other assets
Security deposits
Deposits on land
27
Consolidated
2020
$
2019
$
-
-
-
512,504
205,010
717,514
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 12. Non-current assets - other assets (continued)
The company has paid a deposit to secure the right to purchase land adjoining the current Broula King site. Under the
contract the company can secure the land by paying a total of $300,000 in instalments over four years. Under the agreement
and subsequent extensions the final payment of $160,000 was due for payment on 29 August 2019. However in July 2019,
the company entered into an agreement extending this until 29 August 2020. Interest is payable at 6.5% per annum on this
amount. This amount has been classified as an asset held for sale at 30 June 2020. Refer to note 2 and note 10.
Security deposits totalling $512,504 relating to Broula King have been classified as an asset held for sale at 30 June 2020.
Refer to note 2 and note 10.
In addition the company paid a $65,010 refundable deposit on a separate land acquisition during the 2019 financial year.
The board have opted to not pursue this and the amount was repaid in July 2020. This amount has been reclassified as a
current receivable at 30 June 2020. Refer to note 9
Note 13. Current liabilities - trade and other payables
Trade payables
Payable to directors
Payable to former directors
Other payables and accruals
Consolidated
2020
$
2019
$
454,744
116,800
-
26,697
350,074
147,825
289,301
149,438
598,241
936,638
Refer to note 21 for further information on financial instruments.
Payable to former directors
In November 2015, Alan Fraser resigned as a director of the company. Under an agreement between him and the company
all amounts payable to him are payable in four annual instalments, commencing July 2016. The final payment was made in
July 2019.
On 24 October 2018, the company entered into an agreement with former director Martin Janes in relation to unpaid fees
totalling $175,170. Under the agreement payment was deferred until 24 October 2019, or within 5 days of the company
raising $1,500,000 or more. Interest is payable at 12% per annum. The Company has subsequently negotiated an
amendment to the terms of this agreement whereby the balance including interest has been capitalised and rolled into a
Convertible Note which is repayable on 31 September 2021.
Note 14. Current liabilities - borrowings
Convertible notes payable
Unsecured loan from major shareholder
Accrued interest
Refer to note 21 for further information on financial instruments.
28
Consolidated
2020
$
2019
$
146,956
2,112,710
370,449
149,929
1,712,701
99,699
2,630,115
1,962,329
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 14. Current liabilities - borrowings (continued)
As at 30 June 2020 unsecured loan refers to $2,000,000 drawn down against a facility with a major shareholder (2019:
$1,600,000), with additional $270,750 of interest capitalised (2019: 172,701). In addition, interest payable under this facility
amounted to $370,449 by year end (2019: $99,699).
The convertible note has an interest rate of 8%, has a conversion price of 4 cents and matures on 24 April 2020. The
convertible note has a face value of $164,948 with an amount of $30,414 having been recognised in equity.
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Total facilities
Shareholder loan
Used at the reporting date
Shareholder loan
Unused at the reporting date
Shareholder loan
Consolidated
2020
$
2019
$
2,483,159
1,812,400
2,483,159
1,812,400
-
-
Note 15. Current liabilities - liabilities directly associated with assets classified as held for sale
As disclosed in note 2, liabilities relating to the consolidated entity's Broula King project have been classified as directly
associated with assets classified as held for sale.
Provision - rehabilitation
Note 16. Non-current liabilities - payables
Payable to former director
Refer to note 21 for further information on financial instruments.
Consolidated
2020
$
2019
$
572,000
-
Consolidated
2020
$
2019
$
210,588
-
On 24 October 2018, the company entered into an agreement with former director Martin Janes in relation to unpaid fees
totalling $175,170. Under the agreement payment was deferred until 24 October 2019, or within 5 days of the company
raising $1,500,000 or more. Interest is payable at 12% per annum. The Company has subsequently negotiated an
amendment to the terms of this agreement whereby the balance including interest has been capitalised and rolled into a
Convertible Note which is repayable on 31 September 2021
29
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 17. Non-current liabilities - provisions
Rehabilitation
Consolidated
2020
$
2019
$
-
500,000
Rehabilitation
The provision represents the present value of estimated costs of the remediation work that will be required to comply with
the environmental and legal obligations. The mine site is currently in care and maintenance, however in terms of the mining
lease no events have occurred that would trigger the rehabilitation process to be implemented. The company does not expect
the rehabilitation process to commence in the next 12 to 18 months.
During the year the company engaged a consultant to estimate the valuation of the provision and it was increased to
$572,000. This liability relating to the consolidated entity's Broula King project has been classified as directly associated with
assets classified as held for sale. Refer to note 2 and note 15.
Movements in provisions
Movements in each class of provision during the current financial year, other than employee benefits, are set out below:
Consolidated - 2020
Carrying amount at the start of the year
Increase in expected rehabilitation costs
Classified as associated with assets held for sale
Carrying amount at the end of the year
Note 18. Equity - issued capital
Rehabilitation
$
500,000
72,000
(572,000)
-
Consolidated
2020
Shares
2019
Shares
2020
$
2019
$
Ordinary shares - fully paid
27,491,373 27,491,373 14,602,953 14,602,953
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
30
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 18. Equity - issued capital (continued)
Capital risk management
The consolidated entity's objectives when managing capital are to safeguard its ability to continue as a going concern, so
that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure
to reduce the cost of capital.
In order to maintain or adjust the capital structure, the consolidated entity may issue new shares in order to meets its financing
requirements.
The consolidated entity is subject to certain financing arrangements and meeting these are given priority in all capital risk
management decisions. There have been no events of default on the financing arrangements during the financial year.
The capital risk management policy remains unchanged from the 30 June 2019 Annual Report.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
Note 19. Equity - reserves
Convertible note reserve
Consolidated
2020
$
2019
$
46,583
30,414
Convertible note reserve
The reserve is used to recognise the value of the equity portion of convertible notes.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2018
Balance at 30 June 2019
Movement in convertible notes
Balance at 30 June 2020
Note 20. Equity - dividends
Convertible
note reserve
$
30,414
30,414
16,169
46,583
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 21. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of
the consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is
exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks,
ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.
31
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 21. Financial instruments (continued)
Risk management is carried out by the Board of Directors ('the Board'), which identifies, evaluates and hedges financial risks
within the consolidated entity's operating units where considered appropriate.
Market risk
Foreign currency risk
The consolidated entity is not subject to significant levels of foreign exchange risk in relation to its financial instruments.
Price risk
The consolidated entity is not subject to significant levels of price risk in relation to its financial instruments.
Interest rate risk
The consolidated entity is not subject to significant levels of interest rate in relation to its financial instruments.
Credit risk
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are
considered representative across all customers of the consolidated entity based on recent sales experience, historical
collection rates and forward-looking information that is available.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include
the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual
payments for a period greater than 1 year.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is $608,549,
(2019: $804,914). Of this, 536,769 ,(2019: $773,013) is held in bank deposits and are held at financial institutions with a
minimum AA credit rating. The consolidated entity does not hold any collateral.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
32
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 21. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2020
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Payable to directors
Interest-bearing - fixed rate
Unsecured loan from major
shareholder
Convertible notes payable
Payable to former directors
Total non-derivatives
Consolidated - 2019
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Payable to directors
Interest-bearing - fixed rate
Unsecured loan from major
shareholder
Convertible notes payable
Payable to former directors
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
-
454,744
26,697
143,497
-
-
-
12.00%
8.00%
12.00%
2,483,159
167,417
-
3,275,514
-
-
210,588
210,588
-
-
-
-
-
-
-
-
-
-
-
-
-
-
454,744
26,697
143,497
2,483,159
167,417
210,588
3,486,102
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
-
-
350,074
149,438
147,825
12.00%
8.00%
8.68%
1,812,400
167,147
289,301
2,916,185
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
350,074
149,438
147,825
1,812,400
167,147
289,301
2,916,185
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
33
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 22. Key management personnel disclosures
Directors
The following persons were directors of Resource Base Limited during the financial year:
Shannon Green (appointed 1 June 2020)
Peter Kelliher (resigned 1 June 2020)
Angelo Siciliano (resigned 1 June 2020)
Michael Kennedy
Jamie Myers (appointed 1 June 2020)
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Note 23. Remuneration of auditors
Consolidated
2020
$
2019
$
138,931
133,518
During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the auditor
of the company:
Audit services - RSM Australia Partners
Audit or review of the financial statements
Note 24. Contingent liabilities
Bank guarantees
The consolidated entity had no other contingent liabilities at 30 June 2020 and 30 June 2019.
Note 25. Commitments
Mining leases
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
34
Consolidated
2020
$
2019
$
31,520
29,120
Consolidated
2020
$
2019
$
512,504
538,312
Consolidated
2020
$
2019
$
52,500
210,000
52,500
210,000
262,500
262,500
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 25. Commitments (continued)
In order to maintain current rights of tenure to the mining lease the Company is required to outlay rentals and meet minimum
expenditure requirements of the State Mines Departments. Minimum expenditure commitments may be subject to
renegotiation and with approval may otherwise be avoided by sale, farm out or relinquishment. These obligations are not
recorded in the financial statements.
The disclosed commitment relates to Mining Lease 1617. The lease has been granted and will expire in March 2029. There
is an annual commitment of $52,500 whilst the lease is in force. Whilst the mining operation is now completed, the
consolidated entity is exploring other sources of income that can be generated from the assets. This includes the processing
of ore from surrounding mining operations in the area. For this reason the consolidated entity intends to meet the lease
obligations over the next five years to retain rights to the lease.
Note 26. Related party transactions
Parent entity
Resource Base Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 28.
Key management personnel
Disclosures relating to key management personnel are set out in note 22 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
2020
$
2019
$
Payment for other expenses:
Finance expenses accrued on loan payable to Asipac Group Pty Ltd (a major shareholder)
284,193
143,601
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Current payables:
Fees payable to Gippsland Resource Development Pty Ltd, an entity related to Peter
Kelliher
Director fees payable to Aria Accounting Pty Ltd (an entity related to Angelo Siciliano)
Fees payable to Asipac Group Pty Ltd (a major shareholder)
Accrued directors fees
No interest is payable by the consolidated entity in respect of these balances.
Consolidated
2020
$
2019
$
-
-
50,739
116,800
101,625
70,463
50,739
147,825
35
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 26. Related party transactions (continued)
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Current borrowings:
Loan payable to Asipac Group Pty Ltd (a major shareholder)
Convertible note payable to Asipac Group Pty Ltd (a major shareholder)
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 27. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit/(loss) after income tax
Total comprehensive income / (loss)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Convertible note reserve
Accumulated losses
Total equity/(deficiency)
Consolidated
2020
$
2019
$
2,483,159
167,147
1,812,400
167,147
Parent
2020
$
2019
$
(140,517)
1,127,790
(140,517)
1,127,790
Parent
2020
$
2019
$
742,197
275,790
742,197
994,805
557,080
895,929
767,668
895,929
14,602,952 14,602,952
30,414
(14,534,490)
46,583
(14,675,006)
(25,471)
98,876
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2020 and 30 June 2019. Bank
guarantees disclosed in note 24 are provided by the parent entity.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2020 and 30 June 2019, other than those disclosed in note 24 .
36
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 27. Parent entity information (continued)
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment at as 30 June 2020 and 30 June 2019.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except
for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Note 28. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in accordance
with the accounting policy described in note 1:
Name
Principal place of business /
Country of incorporation
Ownership interest
2019
2020
%
%
Broula King Joint Venture Pty Ltd
Australia
100.00%
100.00%
Note 29. Events after the reporting period
On 18 August 2020, the company announced that entered into a binding exclusive option agreement with Sunshine
Reclamation Ltd granting an exclusive option to purchase 100% of the issued shares in the company's 100% owned
subsidiary Broula King Joint Venture Pty Ltd.
Under the agreement a non-refundable $50,000 option fee was payable, granting a 2 month exclusivity period to undertake
all required due diligence. If the option to purchase is exercised a further $750,000 is payable on the below timeline:-
●
●
●
$150,000 payable within 5 business days of execution date;
$200,000 paid ad deferred consideration by 30 March 2021; and
$400,000 paid as deferred consideration by 30 April 2021.
Since 30 June 2020, the company has entered into agreements with lenders and creditors whereby current liabilities totalling
$3.2 Million, have been deferred until 30 September 2021.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
37
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 30. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Accrued interest expense
Impairment of mine equipment
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in other operating assets
Increase/(decrease) in trade and other payables
Decrease in employee benefits
Increase in other provisions
Net cash used in operating activities
Note 31. Earnings per share
Earnings per share for loss from continuing operations
Loss after income tax attributable to the owners of Resource Base Limited
Consolidated
2020
$
2019
$
(897,898)
(886,510)
2,068
305,033
-
5,781
172,207
42,750
27,498
29,570
(148,887)
-
72,000
(17,140)
(7,146)
85,268
(26,384)
-
(610,616)
(631,174)
Consolidated
2020
$
2019
$
(312,696)
(276,171)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
27,491,373 27,491,373
Weighted average number of ordinary shares used in calculating diluted earnings per share 27,491,373 27,491,373
Basic loss per share
Diluted loss per share
Earnings per share for loss from discontinued operations
Loss after income tax attributable to the owners of Resource Base Limited
Cents
Cents
(1.137)
(1.137)
(1.005)
(1.005)
Consolidated
2020
$
2019
$
(585,202)
(610,339)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
27,491,373 27,491,373
Weighted average number of ordinary shares used in calculating diluted earnings per share 27,491,373 27,491,373
38
Resource Base Limited
Notes to the financial statements
30 June 2020
Note 31. Earnings per share (continued)
Basic loss per share
Diluted loss per share
Earnings per share for loss
Loss after income tax attributable to the owners of Resource Base Limited
Cents
Cents
(2.129)
(2.129)
(2.220)
(2.220)
Consolidated
2020
$
2019
$
(897,898)
(886,510)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
27,491,373 27,491,373
Weighted average number of ordinary shares used in calculating diluted earnings per share 27,491,373 27,491,373
Basic loss per share
Diluted loss per share
Cents
Cents
(3.266)
(3.266)
(3.225)
(3.225)
39
Resource Base Limited
Directors' declaration
30 June 2020
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2020 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Michael Kennedy
Director
30 September 2020
40
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Resource Base Limited
Opinion
We have audited the financial report of Resource Base Limited (the Company) and its controlled entities (the
consolidated entity), which comprises the statement of financial position as at 30 June 2020, the statement of
profit or loss and other comprehensive income, the statement of changes in equity and the 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 the accompanying financial report of the consolidated entity is in accordance with the Corporations
Act 2001, including:
(i) giving a true and fair view of the consolidated entity's financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
41
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the consolidated entity incurred a loss of
$897,898 and reported negative operating cash flows of $610,616 during the year ended 30 June 2020 and, as
of that date, the consolidated entity's current liabilities exceeded its current assets by $2,678,853. As stated in
Note 1, these conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists
that may cast significant doubt on the consolidated entity’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matter described below to be the key audit matter to be communicated in our report.
Key Audit Matter
How our audit addressed this matter
Classification of mining equipment and mining deposits as Non-current Asset Held for Sale
Refer to Note 8 in the financial statements
The consolidated entity classified mining equipment
valued at $369,750, security deposits amounting to
$512,504 and land deposits of $140,000 as Non-current
assets held for sale in the financial statements.
Our audit procedures in relation to the classification
and disclosure of non-current assets held for sale
included:
The classification of assets to non-current assets held
for sale requires specific conditions in AASB5 Non-
current Assets Held
for Sale and Discontinued
Operations to be met and involves a degree of
judgement on the part of management.
We considered the classification and disclosure of these
assets as a key audit matter.
the
exclusive
Critically
Gathering an understanding of management and
directors’ plans to dispose these assets before
30 June 2020;
Reviewing
offer
binding
agreement which was executed in August 2020;
evaluating
management’s assessment of the classification,
including reviewing the reasonableness of facts
and circumstances at year end which resulted in
the classification in accordance with AASB 5
Non-current Assets Held
for Sale and
Discontinued Operations; and
assessing
and
Reviewing the appropriateness and adequacy of
disclosures made in the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the consolidated entity's annual report for the year ended 30 June 2020; but does not include the financial report
and the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
42
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the consolidated entity
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 have 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.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This description
forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Resource Base Limited, for the year ended 30 June 2020, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
Dated: 30 September 2020
Melbourne, Victoria
43
Resource Base Limited
ASX additional Information
30 June 2020
Addition Securities Exchange Information.
Additional information required by ASX Listing Rules and not shown elsewhere in the report is set out below. The
information is current as of 7 September 2020.
1.
The Company’s Corporate Governance Statement for the 2020 financial year can be accessed at:
CORPORATE GOVERNANCE
https://www.resourcebase.com.au/about/corporate-governance/
SUBSTANTIAL SHAREHOLDERS
2.
The number of shares held by substantial shareholders and their associates who have provided the Company with substantial
shareholder notices are set out below:
Name of substantial shareholder
Number of shares
Percentage (%)
ASIPAC GROUP PTY LTD1
MAYBURYS PTY LTD ATF CARMICH SUPER FUND2
MR ER XU3
1. See ASX Announcement on 6 May 2016.
2. See ASX Announcement on 2 August 2016.
3. See ASX Announcement on 6 May 2016.
4. See ASX Announcement 2 May 2017 reflecting consolidation.
12,078,7024
2,093,6154
1,666,6674
3.
The voting rights attached to ordinary shares are set out below:
VOTING RIGHTS
43.94
7.62
6.06
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
There are no other classes of equity securities on issue.
NON-MARKETABLE PARCELS
4.
As at 7 September 2020, based on the Company’s closing share price of $0.034 when suspended on 19 November 2018, an
unmarketable parcel comprised 14,706 fully paid ordinary shares. There were 374 holders holding less than a marketable
parcel of shares, for a total of 1,227,800 fully paid ordinary shares.
5.
DISTRIBUTION OF ORDINARY SHARES
The number of shareholders, by size of holding, are:
Fully paid ordinary shares
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Number of
holders
146
149
46
95
23
459
Number of
shares
83,302
390,104
345,522
2,971,399
23,701,046
27,491,373
44
Resource Base Limited
ASX additional Information
30 June 2020
6.
The twenty largest holders of ordinary fully paid shares at 7 September 2020 are set out below:
TWENTY LARGEST SHAREHOLDERS
Name
1. ASIPAC GROUP PTY LTD
2. MAYBURYS PTY LTD
3. ER XU
4. GOVINDA FREEDOM FUND PTY LTD
5. MR ALAN ROBERT FRASER
6. EST CLARKE BARNETT DUDLEY
7. NORTHERN STAR NOMINEES PTY LTD
8. MR BINYOMIN LEVI SAPPER
9. MR YONG YANG
10. EGRET SUPERANNUATION PTY LTD
11. VISION TECH NOMINEES PTY LTD
12. MRS KATHLEEN MARY PULS
13. MR KOSTA JARIC
14. UNITED STRUCTURES PTY LTD
15. NUENERGY GAS LIMITED
16. NAILBRIDGE PTY LTD ATF THE ALAN FRASER FAMILY TRUST
17. CONSOLIDATED GLOBAL SECURITIES LTD
18. MARTIN PLACE SECURITIES STAFF SUPERANNUATION FUND PTY LTD
19. MR JOHN HARVEY BISHOP
20. MR GLENN THOMAS CONNOR & MRS ANNETTE MARGARET CONNOR
TOTAL
Number of
ordinary
shares held
12,078,702
2,093,615
1,666,667
1,500,000
1,126,286
853,334
693,334
675,967
468,908
461,700
298,784
266,667
201,012
179,034
165,800
142,858
133,334
129,630
119,500
118,823
23,373,955
% of issued
shares
43.94
7.62
6.06
5.46
4.10
3.10
2.52
2.46
1.71
1.68
1.09
0.97
0.73
0.65
0.60
0.52
0.49
0.47
0.43
0.43
85.02
7.
The Company has no restricted securities on issue.
RESTRICTED SECURITIES
8.
There is no current on-market buy-back.
ON-MARKET BUY-BACK
SECURITIES EXCHANGE QUOTATION
9.
The Company’s ordinary shares are listed on the Australian Securities Exchange (Code: RBX). The Home Exchange is Perth. The
Company’s shares have been suspended from trading from 19 November 2018.
10.
MINING TENEMENT INTERESTS
Current interests in tenements held by RBX and its subsidiaries at 7 September 2020 are listed below:
Location
NSW
NSW
Tenement
ML - 1617
EL - 8509
Interest
100 %
100%
45