RIEDEL RESOURCES LIMITED
ABN: 91 143 042 022
ANNUAL REPORT FOR THE YEAR ENDED
30 JUNE 2022
Non-Executive Chairperson
Bankers
Michael Bohm
Non-Executive Directors
Grant Mooney
Scott Cuomo
Jason Pater
Company Secretary
Susan Field
National Australia Bank
50 St Georges Terrace
Perth WA 6000
Australia and New Zealand Banking Group Limited
77 St Georges Terrace
Perth WA 6000
Principal and Registered Office
Level 27/152-158 St Georges Terrace
Suite 4, 6 Richardson Street
Perth WA 6000
Solicitors
Hamilton Locke
West Perth WA 6005
Telephone: +61 8 9226 0085
Auditors
Stantons
Level 2, 40 Kings Park Road
Stock Exchange Listing
Australian Securities Exchange
ASX Code: RIE
West Perth WA 6005
Website Address
www.riedelresources.com.au
Share Registry
Computershare Investor Service Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
CONTENTS
DIRECTORS’ REPORT ..................................................................................................................................... 1
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................. 26
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .......... 27
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .......................................................................... 28
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .......................................................................... 29
CONSOLIDATED STATEMENT OF CASH FLOWS ....................................................................................... 30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .................................................................... 31
DIRECTORS’ DECLARATION ......................................................................................................................... 65
INDEPENDENT AUDITOR’S REPORT ........................................................................................................... 66
SHAREHOLDER INFORMATION…………………………………………………………………………………....71
SCHEDULE OF MINING TENEMENTS …………………………………………………………………………….74
DIRECTORS’ REPORT
The Directors of Riedel Resources Limited (“Riedel” or the “Company”) submit herewith the consolidated financial
statements of the Company and its controlled entities (“Riedel”), (“Group”) or (“Consolidated Entity”) for the year
ended 30 June 2022 in order to comply with the provisions of the Corporations Act 2001.
1.
Directors
The following persons were Directors of Riedel Resources Limited during the whole of the financial year and up
to the date of the report unless otherwise stated:
Mr Michael Bohm
Non-Executive Chairperson (appointed 11 December 2020)
Mr Grant Mooney
Non-Executive Director (appointed 31 October 2018)
Mr Scott Cuomo
Non-Executive Director (appointed 26 July 2017)
Mr Jason Pater
Non-Executive Director (appointed 1 February 2021)
2.
Principal Activities
The principal activity of the Group during the year was mineral exploration.
3. Operating Results
The net loss of the Group for the financial year ended 30 June 2022 after providing for income tax amounted to
$725,091 (2021: $3,464,342).
4.
Dividends Paid or Recommended
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of
a dividend up to the date of this report.
5.
Financial Position
The consolidated entity has $1,370,816 in cash and cash equivalents as at 30 June 2022 (30 June 2021:
$2,723,188).
Kingman Project
On 23 October 2020 Riedel entered into a binding agreement with Flagstaff Minerals Limited (“Flagstaff”) to
acquire up to 80% equity interest in Flagstaff Minerals (USA) Inc (‘Flagstaff USA’) (a wholly owned subsidiary of
Flagstaff) by meeting three earn in stages (‘Term Sheet’), or (‘Transaction’). As the Transaction represented a
change of scale of activities under the ASX Listing Rules shareholder approval was required and subsequently
obtained on 30 November 2020. (Refer ASX Announcement made on 11 December 2020).
Background
Flagstaff USA has the sole and exclusive right to acquire a 100% interest in 70 mining claims (which form part of
the Kingman Project) (Kingman Option Claims) via a binding option agreement with IAM Mining LLC (a Limited
Liability Company) (IAM Mining) (Flagstaff Option Agreement).
The Terms Sheet sets out the terms and conditions on which Riedel may acquire up to an 80% equity interest in
Flagstaff USA (Earn
In or Acquisition).
‐
1
DIRECTORS’ REPORT
5.
Financial Position (continued)
Initial Exploration Expenditure – Stage 1 (“Stage 1”)
Riedel must expend a total of AUD$5,000,000 on the Kingman Project within 3 years from the Stage 1
Commencement Date, being 11 December 2023 to obtain a 51% equity interest in Flagstaff USA (Stage 1 Earn
In).
‐
To complete Stage 1 Riedel is then required to issue 100,000,000 shares at a deemed issue price of $0.055 per
RIE Share to obtain a 51% equity interest in Flagstaff USA.
If Riedel withdraws before completing the Stage 1 Earn
expenditure on the Kingman Project within 12
a 15% equity interest in Flagstaff USA.
‐
‐
In, subject to Riedel incurring at least AUD$1,500,000 of
months from the Stage 1 Commencement Date, Riedel shall obtain
Earn
In – Stage 2 (“Stage 2”)
‐
Riedel must expend a further AUD$5,000,000 on the Kingman Project (Stage 2 Expenditure Condition) within 3
years from the Stage 2 Commencement Date in order to earn a further 19% equity interest in Flagstaff USA (i.e.
Riedel will obtain a 70% equity interest) (Stage 2 Earn
In)..
Stage 3 (“Stage 3”)
‐
Within 30 days of satisfying the Stage 2 Expenditure Condition, Riedel may acquire an additional 10% equity
interest in Flagstaff USA (i.e. Riedel will obtain an 80% equity interest in Flagstaff USA in total) by payment to
Flagstaff Minerals (or its nominee(s)) of AUD$3,000,000 cash.
Joint Venture
Following completion of the relevant earn
on the Kingman Project in proportion to each party's respective equity interest in Flagstaff USA from time to time.
in phase, Flagstaff Minerals and Riedel will contribute to expenditure
‐
Vendor Payments
Pursuant to the Flagstaff Option Agreement, the following payments are required to be made to IAM Mining by
Flagstaff USA in order for Flagstaff USA to maintain its right to acquire 100% of the Kingman Option Claims
(together, the Option Payments):
1. USD 200,000 payable by February 2021 (paid);
2. USD 300,000 payable by February 2022; (paid) and
3. USD 400,000 payable by February 2023.
Under the terms sheet, Riedel shall be responsible for the Option Payments (which shall count towards eligible
expenditure in relation to any stage of the relevant earn
in).
At 30 June 2022 had spent $3,310,800 representing approximately 66% of the minimum spend by required to be
‐
met by 11 December 2023.
Refer additional detail at note 8.
6.
Business Strategies and Prospects for the Forthcoming Year
The results of drilling during the 2022 financial year will be analysed and a decision made on the scope of further
works.
2
DIRECTORS’ REPORT
6.
Business Strategies and Prospects for the Forthcoming Year (continued)
Material business risks that may impact the results of future operations include further exploration results, future
going funding as agreed to between Riedel and the Group.
commodity prices and on
7.
Significant Changes in the State of Affairs
‐
The following significant changes in the state of affairs of the consolidated entity occurred during the financial
year:
• On 1 September 2021, following shareholder approval received at General Meeting of Shareholders held
on 26 August 2021, the Company issued 4,000,000 fully paid ordinary shares at an issue price of $0.015
each to participating directors or their nominee to raise $60,000 prior to issue costs. Share application
monies totalling $60,000 were received in prior period and were classified and included as other payables
in 2021 financial year.
• On 28 February 2022, the Company issued 71,000,000 fully paid ordinary shares at an issue price of
$0.01 to sophisticated investors raising $710,000 prior to issue costs.
• On 20 April 2022, following shareholder approval received at General Meeting of Shareholders held on 8
April 2022, the Company issued 9,000,000 fully paid ordinary shares at an issue price of $0.01 each to
participating directors or their nominee to raise $90,000 prior to issue costs.
• On 20 April 2022, following shareholder approval received at General Meeting of Shareholders held on 8
April 2022, the Company issued 25,000,000 fully paid ordinary shares at an issue price of $0.01 each to
Flagstaff Minerals Limited to raise $250,000 prior to issue costs.
8.
Post Balance Date Events
There have not been any events that have arisen between 30 June 2022 and the date of this report or any other
item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially affect
the operations of the Group, the results of those operations or the state of affairs of the Group, in subsequent
financial years.
9.
Review of Operations
Exploration
Kingman Gold-Silver Project
Riedel continue to carry out exploration activities on its Kingman Project in Arizona, where it can earn up to an
80% interest.
During the period July through December 2021, Riedel completed a 48-hole (4,190m) RC drilling program
focussing on the Tintic target. Assay results from the program included further high-grade mineralisation:
5.3m @ 18.1 g/t gold & 24 g/t silver from 23.6m
1.5m @ 35.6 g/t gold & 42 g/t silver from 30.5m
2.3m @ 9.49 g/t gold & 55 g/t silver from 13.7m
0.8m @ 18.3 g/t gold from 41.5m
6.9m @ 3.1 g/t gold from 25.9m
2.3m @ 3.43 g/t gold & 24 g/t silver from 13.7m
3
DIRECTORS’ REPORT
9.
Review of Operations
Exploration (continued)
•
•
•
4.6m @ 12.43 g/t Au from 45m
6.9m @ 2.84 g/t Au & 82 g/t Ag from 18.3m
2.3m @ 5.40 g/t Au & 125 g/t Ag from 77m
During the period January through June 2022, Riedel completed a follow-up 37-hole (2,286m) RC drilling program
again focussing on the Tintic target. Assay results from that program again confirmed high grade gold and silver
mineralisation at Tintic:
3.8m @ 18.1 g/t Au and 201 g/t Ag from 85.3m (2022-CHL-075D)
incl – 1.5m @ 38 g/t Au and 482g/t Ag from 85.3m
1.5m @ 17.6 g/t Au and 17 g/t Ag from 26.7m (2022-CHL-098)
incl – 0.8m @ 25.8 g/t Au and 26 g/t Ag from 26.7m
1.5m @ 5.75 g/t Au and 12 g/t Ag from 106.7m (2022-CHL-103)
incl – 0.8m @ 9.27 g/t Au from 106.7m
3m @ 3.44 g/t Au and 18 g/t Ag from 16.8m (2022-CHL-095)
incl - 0.8m @ 12.73 g/t Au, 30 g/t Ag and 3.5% Pb from 16.8m
2.3m @ 3.04 g/t Au and 47 g/t Ag from 24.4m (2022-CHL-095)
incl – 0.8m @ 7.04 g/t Au, 102 g/t Ag and 2.5% Pb from 22.9m
10.7m @ 2.98 g/t Au and 50 g/t Ag from 92.2m (2022-CHL-071D)
incl – 1.5m @ 16.1 g/t Au, 191g//t Ag and 4.2% Pb from 93.7m
8.4m @ 2.58 g/t Au and 29 g/t Ag from 12.2m (2022-CHL-080B)
incl – 1.5m @ 7.15 g/t Au, 93 g/t Ag and 3.4% Pb from 13m
2.3m @ 5.17 g/t Au and 85 g/t Ag from 29.7m (2022-CHL-048A)
incl – 0.8m @ 13.70 g/t Au, 196 g/t Ag and 11% Pb from 31.2m
1.5m @ 27.5 g/t Au and 37 g/t Ag from 13.7m (2022-CHL-008B)
incl – 0.8m @ 53.3 g/t Au and 63 g/t Ag from 13.7m;
3.0m @ 5.05 g/t Au and 58 g/t Ag from 27.4m (2022-CHL-096)
incl – 1.5m @ 9.37g/t Au, 112g/t Ag, 2.4% Pb and 2.2% Zn from 27.4m
4
DIRECTORS’ REPORT
9. Review of Operations (continued)
Exploration (continued)
Figure 1 - Drilling at Tintic - with Mineral Park copper-moly mine to the south-east (Mineral Park owned by others)
As previously noted, the gold and silver mineralisation at Tintic appears to be contained within shallow flat dipping
veins which comprise of varying amounts of quartz, clay and sulphide mineralisation. There is also continued
indication of a stacked lode/sill complex.
The following illustrate some of the results achieved from the drill programs carried out at Tintic:
Figure 2 – Tintic Long Section Z-Z’
5
DIRECTORS’ REPORT
9.
Review of Operations (continued)
Exploration (continued)
Figure 3 – Tintic Cross Section F-F’
Figure 4 – Tintic Cross Section D-D’
6
DIRECTORS’ REPORT
9. Review of Operations (continued)
Exploration (continued)
Figure 5 – Tintic Cross Section C-C’
Figure 6 – Tintic Cross Section B-B’
7
DIRECTORS’ REPORT
9.
Review of Operations (continued)
Exploration (continued)
Figure 7 - Tintic Cross Section A-A’ (illustrating potential for mineralisation to extend to the
south/south-west)
8
DIRECTORS’ REPORT
9.
Review of Operations (continued)
Exploration (continued)
Figure 8 – RC hole collar locations at Tintic area showing location of section lines reported herein
Given the shallow depths and high-grade nature of the gold-silver mineralisation at Tintic, the Company is looking
at opportunities to advance the project toward a future development decision.
9
DIRECTORS’ REPORT
9.
Review of Operations (continued)
Exploration (continued)
Marymia Gold Copper Project
Joint venture manager Norwest Minerals Limited (84.3%) have base metal intercepts in aircore drilling at Marymia
East. Previous drilling intersected near surface lead, zinc and nickel along a 1km strike near the Jenkins fault; a
well-known structure in the region known to host several base metal projects including the DeGrussa copper-gold
project ~75kms to the southwest.
Historical exploration drilling at Marymia East has been abundant and dense, particularly over the exposed
Baumgarten Greenstone Belts (BGB) with several moderate gold prospects identified (Figure 9). However, much
of the historical RAB drilling at Marymia East is very shallow and potentially ineffective as the drill holes may not
have penetrated the silcrete cap that is pervasive in areas of Proterozoic cover. Historical RAB holes drilled across
the BGB project area have an average depth of only 25m yet the silcrete has been logged by Norwest at depths
of up to 70 metres. Also, most RAB drill samples were only analysed for gold. As a result, many of the prospective
areas across the southern BGB remain prospective for base-metals or other commodities due to sampling above
the silcrete cap and testing only for gold.
Norwest is reviewing the entire Marymia East dataset with the aim of identifying drill targets for precious metals,
base metals, REE and lithium potential.
Corporate
Riedel raised a total of $1,110,000 during the year as follows:
• $60,000 at an issue price of $0.015 per share in September 2021, noting that the share application monies
were received and held in trust during the prior year (refer 7. At page 3);
• $710,000 at an issue price of $0.01 in February 2022; and
• $340,000 at $0.01 per share in April 2022.
The funds raised were predominantly used to undertake drilling programs at the Kingman Gold Project in Arizona.
10. Likely Developments and Expected Results of Operations
The results from recent drill programs are being reviewed and a decision on further exploration works will be
undertaken.
11. Environmental Regulation
The Group’s operations are not regulated by any significant environmental regulation under a law of the
Commonwealth or of a State or Territory.
The Flagstaff operations are regulated by the laws of Arizona.
10
DIRECTORS’ REPORT
12.
Information on Directors, Officers and Company Secretary
Michael Bohm
Non-Executive Chairperson (Appointed 11 December 2020)
Qualifications
B.AppSc (Mining Eng.), MAusIMM and MAICD
Experience
Mr Bohm is a qualified mining professional with significant corporate and
operations experience. He has had extensive minerals industry experience in
Australia, South East Asia, Africa, Chile, Canada and Europe. A graduate of
WA School of Mines, Mr Bohm has worked as a mining engineer, mine
manager, study manager, project manager, project director and managing
director and has been directly involved in a number of new mine developments.
Mr Bohm currently serves as a Director of a number of ASX-listed companies
and sits on their Audit & Risk Committees and Chairs their Remuneration
Committees. Prior to this, he has held a number of directorships including those
with Ramelius Resources Limited, Perseus Mining Limited, Argyle Diamonds
Mines, Sally Malay Mining Limited and Ashton Mining of Canada.
Directorships of other
listed companies
Mincor Resources Limited
Cygnus Gold Limited
Interest in Shares
110,000,000 Fully Paid Ordinary Shares
The above holding includes an indirect holding of 85,000,000 shares which are
held by Flagstaff Minerals Limited of which Mr Bohm is a director and his spouse
holds a 21% interest in Flagstaff Minerals Limited.
Interest in Options
70,000,000 Unlisted Options expiring 14 December 2023, Exercise Price $0.0125
The above holding includes an indirect holding of 60,000,000 options which are
held by Flagstaff Minerals Limited of which Mr Bohm is a director and his spouse
holds a 21% interest in Flagstaff Minerals Limited.
Scott Cuomo
Non-executive Director
Experience
Mr Cuomo is an experienced non-executive director and a successful
businessman. His career spans over 25 years and is a Director with Oracle
Capital, a boutique Corporate Advisory firm that undertakes assignments on
behalf of family offices, private clients, and ASX listed companies.
He offers valuable experience in strategic planning, risk management and the
structuring of corporate transactions.
Directorships of other
listed companies
Nil
Interest in Shares
9,636,364 Fully Paid Ordinary Shares
Interest in Options
20,000,000 Unlisted Options expiring 14 December 2023, Exercise Price
$0.0125.
11
DIRECTORS’ REPORT
12.
Information on Directors, Officers and Company Secretary (continued)
Grant Mooney
Non-Executive Director
(appointed 31 October 2018, previously Non-
Executive Chairperson until 11 December 2020)
Qualifications
B.Bus, CA
Experience
Mr Mooney is the principal of Perth-based corporate advisory firm Mooney &
Partners, specialising in corporate compliance administration to public companies.
Mr Mooney has gained extensive experience in the areas of corporate and project
management since commencing Mooney & Partners in 1999. His experience
extends to advice on capital raisings, mergers and acquisitions and corporate
governance.
Currently, Mr Mooney serves as a Director to several ASX listed companies across
a variety of industries including technology and resources. He is a Director of Gibb
River Diamonds Limited, appointed 14 October 2008, Accelerate Resources
Limited, appointed 1 July 2017, Talga Group Limited, appointed 20 February 2014,
Carnegie Clean Energy Limited, appointed 19 February 2008, Aurora Labs Limited
appointed 25 March 2020 and SRJ Technologies Limited appointed 2 June 2020.
He was formerly a director of Greenstone Resources Limited (formerly Barra
Resources Limited) (appointed 29 November 2002 and resigning on 18 August
2021).
Mr Mooney is a member of Chartered Accountants Australia & New Zealand.
Directorships of other
listed companies
Carnegie Clean Energy Limited
Gibb River Diamonds Limited
Accelerate Resources Limited
Talga Group Limited
Aurora Labs Limited
SRJ Technologies Limited
Interest in Shares
7,074,790 Fully Paid Ordinary Shares
Interest in Options
25,000,000 Unlisted Options expiring 14 December 2023, Exercise Price $0.0125
12
DIRECTORS’ REPORT
12.
Information on Directors, Officers and Company Secretary (continued)
Jason Pater
Non-executive Director
(Appointed 1 February 2021)
Experience
Jason Pater is a business executive with more than 20 years of board
experience in corporate and non-profit organisations. Jason serves as the
President of Westwater Group, a Michigan-based investment company, and as
Vice-President of Facilities and Construction of National Heritage Academies,
one of the leading educational service providers in the United States.
Previously, he was the President of PrepNet, which manages a network of
college preparatory high schools. The company was recognized as one of the
Top 500 fastest-growing, privately held companies in the USA by Inc. magazine
in 2013.
Jason obtained undergraduate degrees in Business and Spanish from Hope
College, and later earned a Master of Business Administration from Michigan
State University. He is on the Board of Directors of National Heritage
Academies, and Southern Cross Capital Pty Ltd, an Australia-based investment
company. In addition, he is a Manager of Osgood Mountains Gold, LLC, which
is a privately held company undertaking active gold exploration in northern
Nevada.
Directorships of other
listed companies
Nil
Interest in Shares
56,242,424 Fully Paid Ordinary Shares
The above holding is an indirect holding and is held in the name of Southern
Cross Capital Pty Ltd, a company of which Mr Pater is a director.
Interest in Options
Nil
Susan Field
Company Secretary
(Appointed 1 July 2021)
Experience
Susan is a Chartered Accountant with 29 years’ experience in the corporate
sector and in public practice. Since qualifying as a Chartered Accountant with
Ernst & Young, Ms Field has worked in several management roles in both the
public and private sector. Prior to entering public practice, Ms Field also spent
over 11 years in the financial services and retail banking industry where she
held various positions in several operational management roles.
Directorships of other
listed companies
Nil
13
DIRECTORS’ REPORT
13. Audited Remuneration Report
The Directors are pleased to present your Company’s 2022 remuneration report which sets out remuneration
information for Riedel Resources Limited’s non-executive directors, executive directors and other key
management personnel.
The remuneration report is set out under the following headings:
A. Directors and key management personnel disclosed in this report;
B. Remuneration governance;
C. Use of remuneration consultants;
D. Non-Executive remuneration policy and framework;
E.
F.
Voting and comments made at the Company’s 2021 Annual General Meeting;
Details of remuneration;
G. Details of share based compensation and bonuses;
H. Service agreements;
I.
J.
Equity instruments held by key management personnel;
Loans to key management personnel;
K. Other transaction with key management personnel.
A. Directors and key management personnel disclosed in this report
This report details the nature and amount of remuneration for all key management personnel of Riedel Resources
Limited and its subsidiaries. The information provided within this remuneration report has been audited as required
by section 308(C) of the Corporations Act 2001. The individuals included in this report are:
Non-Executive Directors
Mr M Bohm
Non-Executive Chairperson (appointed 11 December 2020)
Mr G Mooney
Non-Executive Director (appointed 31 October 2018, previously Non-Executive Chairperson,
stepping down on 11 December 2020)
Mr S Cuomo
Non-Executive Director (appointed 26 July 2017)
Mr J Pater
Non-Executive Director (appointed 1 February 2021)
Other Key Management Personnel
Ms S Field
Company Secretary (appointed 1 July 2021)
B. Remuneration governance
Remuneration Philosophy
The performance of the Company depends upon the quality of the directors and executives. The philosophy of the
Company in determining remuneration levels is to:
- set competitive remuneration packages to attract and retain high calibre employees;
-
link executive rewards to shareholder value creation; and
- establish appropriate, demanding performance hurdles for variable executive remuneration.
14
DIRECTORS’ REPORT
13
Audited Remuneration Report (continued)
B. Remuneration governance; (continued)
Remuneration Committee
The Remuneration Committee, the role and duties of which are undertaken by the Board, establishes human
resources and compensation policies and practices for the Directors (executive and non-executive) and senior
executives, including retirement termination policies and practices, Company share schemes and other incentive
schemes, Company superannuation arrangements and remuneration arrangements.
C. Use of remuneration consultants
The Company has not engaged or contracted remuneration consultants during the financial year.
D. Non-Executive remuneration policy and framework
The remuneration policy of the Company has been designed to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component which is assessed on an
annual basis in line with market rates and offering specific long-term incentives based on key performance areas
affecting the Group’s financial results. The Board of the Company believes the remuneration policy to be
appropriate and effective in its ability to attract and retain the best directors and executives to run and manage
the Group.
The Board’s policy for determining the nature and amount of remuneration for Board members and senior
executives of the Group is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior executives
(if any), was developed by the Board. All executives are to receive a base salary (which is based on factors such
as length of service and experience) and superannuation. The Board reviews executive packages as required by
reference to the Group’s performance, executive performance and comparable information from industry sectors
and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses and options. The policy is to attract
the highest calibre of executives and reward them for performance that results in long-term growth in shareholder
wealth.
The directors receive a superannuation guarantee contribution required by the government, which was 10.0% for
the year ended 30 June 2022, and do not receive any other retirement benefits. Note that effective 1 July 2022
the super guarantee rate has risen to 10.5% and will be effective from the 2023 financial year. All remuneration
paid to directors and executives is valued at the cost to the Company and expensed. Options are valued using
the Black-Scholes or Binomial Option Pricing models.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time,
commitment and responsibilities. The Board determines payments to the non-executive directors and reviews
their remuneration annually, based on market practice, duties and accountability. Independent external advice is
sought when required. The maximum aggregate fees that can be paid to non-executive directors is $250,000 per
annum. Amendments to this amount are subject to approval by shareholders at the Annual General Meeting.
15
DIRECTORS’ REPORT
13
Audited Remuneration Report (continued)
D. Non-Executive remuneration policy and framework (continued)
Fees for non-executive directors will not be linked to the performance of the Group. However, to align directors’
interests with shareholder interests, the directors are encouraged to hold shares in the Company and are able to
participate in the Employee Incentive Option Scheme.
The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:
• Competitiveness
• Acceptability to shareholders
• Performance linkage
• Capital management
Directors’ fees
A director may be paid fees or other amounts as the directors determine where a director performs special duties
or otherwise performs services outside the scope of the ordinary duties of a director. A director may also be
reimbursed for out of pocket expenses incurred as a result of their directorship or any special duties.
Bonuses
No bonuses were given to key management personnel during the 2021 or 2022 financial years.
Performance based remuneration
The Company may offer eligible Directors and Key Executives participation in a Company Performance Rights
Plan and/or Incentive Option Scheme. This is in addition to cash remuneration.
Company performance, shareholder wealth and director’s and executive’s remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders and directors and
executives. Currently, this is facilitated through the issue of options or Performance Rights to eligible directors
and executives to encourage the alignment of personal and shareholder interests. The Company believes the
policy will be effective in increasing shareholder wealth. For details of directors and executives interests in options
and performance rights at year end, refer below for details.
All directors are entitled to participate in the Performance Rights Plan and/or Incentive Option Scheme.
E.
Voting and comments made at the Company’s 2021 Annual General Meeting
The Company received 100% of “Yes” votes on its remuneration report for the 2021 financial year (2020: 99.39%).
The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration
practices.
16
DIRECTORS’ REPORT
13
Audited Remuneration Report (continued)
F.
Details of remuneration
The remuneration of the Key Management Personnel of Riedel Resources Limited for the year ended 30 June
2022 are set out in Table 1 (for the year ending 30 June 2021 in Table 2) below. There have been no changes to
the below named key management personnel since the end of the reporting period unless noted.
Table 1
Short Term Benefits
Cash
Incentives Consulting
Salary &
Fees
50,000
40,000
40,000
39,996
-
169,996
Mr M Bohm (i)
Mr G Mooney
Mr S Cuomo
Mr J Pater
Ms S Field (ii)
Total
Remuneration
-
-
-
-
-
-
Post
Employment
Securities
Total
Other
Amounts (iii)
Super-
annuation
Options
4,510
4,510
4,510
4,510
4,510
5,000
4,000
4,000
-
-
- 155,510
-
-
-
-
48,510
48,510
44,506
4,510
Fees
96,000
-
-
-
-
96,000
22,550
13,000
- 301,546
(i) The Company paid $96,000 to Cerbat Hills Pty Ltd, a company which Mr Michael Bohm is a director, for technical consulting services
provided during the year.
(ii) Mr S Field was appointed as Company Secretary on 1 July 2022.
(iii) This amount relates to insurance premium paid by the Company for Directors and Officer Insurance cover.
Table 2
Short Term Benefits
Cash
Incentives Consulting
Mr M Bohm (i) (ii)
Salary
& Fees
27,823
-
Mr G Mooney(iii) (vi)
35,833
20,000
Mr S Cuomo (vi)
35,833
20,000
Mr J Pater (iv)
13,178
-
Mr A Sutherland (v) (vi)
15,000
20,000
Fees
61,000
42,000
-
-
-
Post
Employment
Securities
Total
Other
Amounts (v)
Super-
annuation
Options
2,102
3,696
3,696
1,596
3,201
2,643
-
93,568
5,304
462,500
569,333
5,304
370,000
434,833
-
-
-
-
14,774
38,201
Total Remuneration
127,667
60,000
103,000
14,291
13,251
832,500 1,150,709
(i) Mr M Bohm was appointed as Non-Executive Chairperson on 11 December 2020.
(ii) The Company paid $61,000 to Cerbat Hills Pty Ltd, a company which Mr Michael Bohm is a director, for technical consulting services
provided during the year.
(iii) The Company paid $42,000 to Mooney Partners Pty Ltd, a company which Mr Mooney is a director, which comprised of $36,000 being
for corporate and company secretarial services and $6,000 being for rental of office space provided during the year.
(iv) Mr J Pater was appointed as Non-Executive Director on 1 February 2021.
(v) Mr A Sutherland resigned as Non-Executive Director on 11 December 2020.
(vi) On 1 October 2019, the Board approved in advance the payment of $20,000 for consultancy services associated and conditional upon
with the acquisition of a new project. Following the completion of the transaction with Flagstaff Minerals Limited approved by shareholders
on 30 November 2020, this payment was made to Mr G Mooney, Mr S Cuomo and former director Mr A Sutherland.
(vii) This amount relates to insurance premium paid by the Company for Directors and Officer Insurance cover.
17
DIRECTORS’ REPORT
13
G
Audited Remuneration Report (continued)
Details of share-based compensation and bonuses;
Options are issued to directors and executives as part of their remuneration. The options are not always issued
based on performance criteria and in the instances, they are not, they are issued to the majority of directors and
executives of Riedel Resources Limited to increase goal congruence between executives, directors and
shareholders.
2022
There were no options issued during the 2022 financial year.
2021
During the prior year a total of 150,000,000 options were issued to directors and vendors which were approved
by shareholders at the Annual General Meeting of shareholders held on 30 November 2020, included in these
approvals was 45,000,000 options issued to directors as set out in the following table. The Options issued were
issued for no consideration and have an exercise price of $0.0125 with an expiry date of 14 December 2023.
Granted
Fair Value at
Grant Date
2021
Number
$
Mr M Bohm 1
-
-
Mr G Mooney
25,000,000
462,500
Mr S Cuomo
20,000,000
370,000
Mr J Pater 2
Mr A Sutherland 3
-
-
-
-
Total
Remuneration
Represented
by Options
%
-
81.23
85.09
-
-
Exercised
Other
Changed
Lapsed
Number
Number
Number
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 Mr Bohm was appointed as Non-Executive Chairperson on 11 December 2020.
2 Mr Pater was appointed as Non-Executive Director on 1 February 2021.
3 Mr Sutherland resigned as Non-Executive Director on 11 December 2020.
H. 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
Michael Bohm (appointed 11 December 2020)
Non-Executive Chairperson
Agreement commenced
11 December 2020
Term of agreement
Initial 3 years
Details
Director’s fees of $50,000 per annum plus superannuation
(subject to re-election every 3 years from 11 December 2020)
18
DIRECTORS’ REPORT
13
Audited Remuneration Report (continued)
H. Service agreements (continued)
Name
Title
Grant Mooney (appointed 31 October 2018)
Non-Executive Director, formerly Non-Executive Chairperson, stepping down
from this role effective 11 December 2020
Agreement commenced
31 October 2018
Term of agreement
•
Initial 3 years
Details
• From 31 October 2018 Director’s fees of $30,000 per annum plus
(subject to re-election every 3 years from 31 October 2018)
superannuation
• From 1 December 2020 Director’s fees increased to $40,000 per annum
plus superannuation
Name
Title
Scott Cuomo (appointed 26 July 2017)
Non-Executive Director
Agreement commenced
26 July 2017
Term of agreement
•
Initial 3 years, renewed for a further 3 years from 26 July 2020
(subject to re-election every 3 years from 26 July 2017)
Details
• From 26 July 2017 Director’s fees of $30,000 per annum plus
superannuation
• From 1 December 2020 Director’s fees increased to $40,000 per annum
plus superannuation
Name
Title
Jason Pater (appointed 1 February 2021)
Non-Executive Director
Agreement commenced
1 February 2021
Term of agreement
•
Initial 3 years
(subject to re-election every 3 years from 1 February 2021)
Details
• From 1 February 2021 Director’s fees of $40,000 per annum plus
superannuation (if applicable)
19
DIRECTORS’ REPORT
13
Audited Remuneration Report (continued)
I.
Equity instruments held by key management personnel
Ordinary Shares
2022
Mr M Bohm 1
Mr G Mooney
Mr S Cuomo
Mr J Pater 2
Ms S Field
Balance at the start
of the year / on
appointment
Number
80,000,000
5,074,790
3,636,364
56,242,424
300,000
Total
145,253,578
Received on
exercise of options
Other changes
Balance at the end
of the year
Number
-
-
-
-
-
-
Number
30,000,000
2,000,000
6,000,000
-
-
Number
110,000,000
7,074,790
9,636,364
56,242,424
300,000
38,000,000
183,253,578
1 Included in the Shares held by Mr Bohm are 85,000,000 shares held in the name of Flagstaff Minerals Limited a company of which Mr Bohm
is a director and his spouse holds a 21% interest in Flagstaff Minerals Limited.
2 The Shares held by Mr Pater are held in the name of Southern Cross Capital Pty Ltd, a company of which Mr Pater is a director.
Ordinary Shares
Balance at the start
of the year / on
appointment
Received on
exercise of options
Other changes
Balance at the end
of the year
Number
Number
Number
Number
2021
Mr M Bohm 1, 4
Mr G Mooney
Mr S Cuomo
Mr J Pater 2. 5
80,000,000
1,438,427
-
-
Mr A Sutherland 3
1,959,596
Total
83,398,023
-
-
-
-
-
-
-
80,000,000
3,636,363
3,636,364
5,074,790
3,636,364
56,242,424
56,242,424
(1,959,596)
-
61,555,555
144,953,578
1 Mr Bohm was appointed as Non-Executive Chairperson on 11 December 2020.
2 Mr Pater was appointed as Non-Executive Director on 1 February 2021.
3 Mr Sutherland resigned as Non-Executive Director on 11 December 2020 and the other changes reflect the shares he held at the time of
his resignation.
4 Included in the Shares held by Mr Bohm are 60,000,000 shares held in the name of Flagstaff Minerals Limited a company of which Mr Bohm
is a director and his spouse holds a 22% interest in Flagstaff Minerals Limited.
5 The Shares held by Mr Pater are held in the name of Southern Cross Capital Pty Ltd, a company of which Mr Pater is a director.
20
DIRECTORS’ REPORT
13
Audited Remuneration Report (continued)
I.
Equity instruments held by key management personnel (continued)
Unlisted Options
Balance at the start
of the year / on
appointment
Received on
exercise of options
Other changes
Balance at the end
of the year
Number
Number
Number
Number
2022
Mr M Bohm 1
Mr G Mooney
Mr S Cuomo 2
Mr J Pater
Ms S Field
70,000,000
25,000,000
25,000,000
-
-
Total
120,000,000
-
-
-
-
-
-
-
-
70,000,000
25,000,000
(5,000,000)
20,000,000
-
-
-
-
(5,000,000)
115,000,000
1 Included in the Options held by Mr Bohm are 60,000,000 Options held in the name of Flagstaff Minerals Limited a company of which Mr
Bohm is a director and his spouse holds a 21% interest in Flagstaff Minerals Limited.
2. Unlisted options with exercise price of $0.11 and expiry date of 23 November 2021 held by Mr Cuomo lapsed unexercised.
Unlisted Options
Balance at the start
of the year / on
appointment
Received on
exercise of options
Other changes
Balance at the end
of the year
Number
Number
Number
Number
2021
Mr M Bohm 1 4
Mr G Mooney
Mr S Cuomo
Mr J Pater 2
70,000,000
-
5,000,000
-
Mr A Sutherland 3
5,000,000
Total
80,000,000
-
-
-
-
-
-
-
70,000,000
25,000,000
25,000,000
20,000,000
25,000,000
-
(5,000,000)
-
-
40,000,000
120,000,000
1 Mr Bohm was appointed as Non-Executive Chairperson on 11 December 2020.
2 Mr Pater was appointed as Non-Executive Director on 1 February 2021.
3 Mr Sutherland resigned as Non-Executive Director on 11 December 2020.
4 Included in the Options held by Mr Bohm are 60,000,000 Options held in the name of Flagstaff Minerals Limited a company of which Mr
Bohm is a director and his spouse holds a 22% interest in Flagstaff Minerals Limited.
21
DIRECTORS’ REPORT
13
Audited Remuneration Report (continued)
J.
Loans to key management personnel
There were no loans made to directors of Riedel Resources Limited and other key management personnel of the
Group, including their close family members or entities related to them.
K. Other transaction with key management personnel
The following transactions occurred with related parties during the financial year:
1.
The Company paid $6,000 (2021: $6,000) to Mooney & Partners, a company associated with Mr Mooney,
for the rental of office space, the rental lease is settled on a monthly basis. In the prior year, the Company
paid $36,000 for the provision of corporate and company secretarial services.
As at 30 June 2022, there was no outstanding balance (2021: $3,000 outstanding balance).
2.
The Company paid $96,000 (2021: $61,000) to Cerbat Hills Pty Ltd, a company which Mr Michael Bohm is a
director, for technical consulting services provided during the year.
As at 30 June 2022, an accrual of $8,000 (2021: $80,000) was provided for June services yet to be invoiced.
Outstanding balances at year-end are unsecured, interest free and settlement occurs in cash. The outstanding
balances outstanding at the reporting date in relation to transactions with related parties total $8,000 (2021:
$11,000) and are disclosed above.
End of Remuneration Report
22
DIRECTORS’ REPORT
14. Shares under Options
Unissued ordinary shares of Riedel Resources Limited under option at the date of this report are as follows:
Date Options Granted
Expiry Date
Exercise Price
Number under Option
14 Dec 20
14 Dec 23
$0.0125
150,000,000
No option holder has any right under the options to participate in any other share issue of the Company or any
other entity.
15. Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or to intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Company for all
or any part of those proceedings.
The Company was not a party to any such proceedings during the financial year.
16. Meetings of Directors
During the financial year, 2 (two) meetings of directors were held. The number of meetings attended by each
director during the year is stated below:
Director
Directors Meetings
Number Eligible to
Meetings Attended
Mr M Bohm
Mr G Mooney
Mr S Cuomo
Mr J Pater
17.
Insurance of Officers
Attend
2
2
2
2
2
2
2
2
Riedel Resources has paid a premium of $22,550 for the full financial year (2021: $14,291) to insure the directors
and secretary of the Company and its controlled entities. The liabilities insured are legal costs that may be
incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as
officers of entities in the group, and any other payments arising from liabilities incurred by the officers in connection
with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of
duty by the officers or the improper use by the officers of their position or of information to gain advantage for
themselves or someone else or to cause detriment to the company.
The Group has not, during or since the financial year, in respect of any person who is or has been an officer of
the Company:
−
−
Indemnified or made any relevant agreement for the indemnifying against a liability, including costs and
expenses in successfully defending legal proceedings; or
Paid or agreed to pay a premium in respect of a contract insuring against a liability for the costs or expenses
to defend legal proceedings.
23
DIRECTORS’ REPORT
18. Non Audit services
No non audit services have been provided by the auditor of the Group, Stantons during the financial year.
19. Auditors Independence Declaration
The auditor’s independence declaration for the year ended 30 June 2022 has been received and is included in
the financial report on page 26.
Signed in accordance with a resolution of the Board of Directors
Michael Bohm
Non-Executive Director
Date: 6 September 2022
24
Competent Person Statement
Information in this release that relates to Exploration Results is based on information compiled by Mr Sean
Whiteford, who is a qualified geologist, a member of the Australian Institute of Mining and Metallurgy, and a
consultant to Riedel Resources Limited. Mr Whiteford has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Whiteford consents to the inclusion in this release of the matters
based on his information in the form and context in which it appears. Mr Whiteford is not a shareholder of the
Company.
Forward Looking Statements
This release includes forward looking statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”,
“estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation
statements regarding plans, strategies and objectives of management, anticipated production or construction
commencement dates and expected costs or production output.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that
may cause the company’s actual results, performance and achievements to differ materially from any future
results, performance or achievements. Relevant factors may include, but are not limited to, changes in
commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand
for production inputs, the speculative nature of exploration and project development, including the risks of
obtaining necessary licences and permits and diminishing quantities or grades of resources or reserves, political
and social risks, changes to the regulatory framework within which the company operates or may in the future
operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel,
industrial relations issues and litigation.
Forward looking statements are based on the company and its management’s good faith assumptions relating
to the financial, market, regulatory and other relevant environments that will exist and affect the company’s
business and operations in the future. The company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or that the company’s business or operations will
not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or
management or beyond the company’s control.
Although the company attempts to identify factors that would cause actual actions, events or results to differ
materially from those disclosed in forward looking statements, there may be other factors that could cause actual
results, performance, achievements or events not to be anticipated, estimated or intended, and many events
are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements.
Forward looking statements in this release are given as at the date of issue only. Subject to any continuing
obligations under applicable law or any relevant stock exchange listing rules, in providing this information the
company does not undertake any obligation to publicly update or revise any of the forward looking statements
or to advise of any change in events, conditions or circumstances on which any such statement is based.
New Information or Data
The company confirms that it is not aware of any new information or data that materially affects the information
included in the relevant market announcement.
Notes
1 For full details of these Exploration results, refer to the said Announcement on the said date. Riedel is not
aware of any new information of data that materially affects the information included in the announcement.
2 For full details of these Exploration results, refer to the Norwest Minerals Limited ASX Announcement on the
said date. Riedel is not aware of any new information of data that materially affects the information included
in the announcement.
25
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
6 September 2022
Board of Directors
Riedel Resources Limited
Suite 4, 6 Richardson Street,
WEST PERTH, WA 6005
Dear Directors
RE:
RIEDEL RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Riedel Resources Limited.
As Audit Director for the audit of the financial statements of Riedel Resources Limited for the year ended
30 June 2022, I declare that to the best of my knowledge 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.
Yours faithfully
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2022
Interest revenue
Other revenue
Total revenue
Administration expenses
Compliance and regulatory expense
Consultancy expense
Occupancy expense
Insurance expense
Employee benefits expense
Share based payments
Impairment of exploration expenditure
VAT receivable written off
NOTES
2022
$
432
8,891
9,323
(66,575)
(106,357)
(212,182)
(6,000)
(32,270)
(208,329)
-
(93,631)
(9,070)
2
13
8
2021
$
405
-
405
(87,608)
(98,510)
(152,754)
(8,500)
(20,601)
(200,919)
(2,775,000)
(120,855)
-
(Loss) before income tax expense
(725,091)
(3,464,342)
Income tax expense
(Loss) for the year
4
-
-
(725,091)
(3,464,342)
Other comprehensive loss
Items that may be reclassified subsequent to profit or loss
Exchange difference on translation of foreign operation
(8,473)
3,451
Total comprehensive (Loss) for the year
(733,564)
(3,460,891)
Basic and diluted (loss) per share (cents)
17
(0.07)
(0.53)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
27
Consolidated Statement of Financial Position
As At 30 June 2022
Current Assets
Cash and cash equivalents
Trade and other receivables
NOTES
2022
$
2021
$
(As Restated
Note 28)
6
7
1,370,816
2,723,188
36,929
145,729
Total Current Assets
1,407,745
2,868,917
Non-Current Assets
Exploration and evaluation expenditure
8
4,207,124
2,466,911
Total Non-Current Assets
4,207,124
2,466,911
Total Assets
5,614,869
5,335,828
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Share based payment reserve
Foreign currency translation reserve
Accumulated losses
Total Equity
9
69,552
119,663
69,552
69,552
119,663
119,663
5,545,317
5,216,165
10
12
14
15
24,304,665
23,241,949
2,809,800
2,809,800
(5,146)
3,327
(21,564,002)
(20,838,911)
5,545,317
5,216,165
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
28
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2022
Issued
Capital
$
Foreign
Currency
Translation
Reserve
$
Share
Based
Payments
Reserve
$
Accumulated
Losses
Total
$
$
Balance at 1 July 2021
23,241,949
3,327
2,809,800
(20,838,911)
5,216,165
(Loss) for the year
Other comprehensive loss
Total comprehensive loss for
the period
Transactions with owner,
recorded directly in equity
Contributions of equity (net of
transaction costs)
-
-
-
-
(8,473)
(8,473)
1,062,716
1,062,716
-
-
-
-
-
-
-
(725,091)
(725,091)
-
(8,473)
(725,091)
(733,564)
-
-
1,062,716
1,062,716
Balance at 30 June 2022
24,304,665
(5,146)
2,809,800
(21,564,002)
5,545,317
Balance at 1 July 2020
19,237,097
(124)
34,800
(17,374,569)
1,897,204
(Loss) for the year
Other comprehensive gain
Total comprehensive loss for
the period
Transactions with owner,
recorded directly in equity
Contributions of equity (net of
transaction costs)
4,004,852
Share based payments
-
4,004,852
-
-
-
-
-
-
-
3,451
3,451
-
-
-
-
2,775,000
2,775,000
(3,464,342)
(3,464,342)
-
3,451
(3,464,342)
(3,460,891)
-
-
-
4,004,852
2,775,000
6,779,852
Balance at 30 June 2021
23,241,949
3,327
2,809,800
(20,838,911)
5,216,165
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
29
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2022
NOTES
2022
$
2021
$
Cash Flows from Operating Activities
Interest received
432
401
Payments to suppliers and employees
(637,521)
(424,190)
Net cash used in operating activities
16
(637,089)
(423,789)
Cash Flows from Investing Activities
Payment for exploration and evaluation
(1,728,682)
(1,476,956)
Net cash used in investing activities
(1,728,682)
(1,476,956)
Cash Flows from Financing Activities
Proceeds from issued capital
Payments for share issue costs
1,050,000
3,875,015
(47,284)
(140,162)
Net cash provided by financing activities
1,002,716
3,734,853
Net cash (decrease)/ increase in cash and cash
equivalents held
(1,363,055)
1,834,108
Cash and cash equivalents at the beginning of the year
2,723,188
885,629
Effects of foreign currency exchange
10,683
3,451
Cash and cash equivalents at the end of the year
6
1,370,816
2,723,188
Amounts relating to payments to suppliers and employees as set out above are inclusive of goods and services
tax. The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
30
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies
Riedel Resources Limited (the "Company") is a listed public company limited by shares, incorporated and
domiciled in Australia.
The consolidated financial statements of the Company as at and for the year ended 30 June 2022 comprise the
Company and its subsidiaries (together referred to as the "Group" and collectively as "Group entities").
The Group primarily is involved in mining and exploration activity.
(a) Basis of preparation
The accounting policies set out below have been consistently applied to all years presented.
(i)
Statement of Compliance
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').
The consolidated financial statements were authorised for issue by the Board of Directors on 6 September
2022.
(ii)
Historical cost convention
The consolidated 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,
investment properties, certain classes of property, plant and equipment and derivative financial instruments.
(iii) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group
only. Supplementary information about the parent entity is disclosed in note 27.
(iv) Going Concern
These consolidated financial statements have been prepared on a going concern basis which contemplates
continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal
course of business. As at 30 June 2022 the Group had net assets of $5,545,317 (2021: $5,216,165) and
reported a loss for the year of $725,091 (2021: $3,464,342) and had a net working capital of $1,338,193
(2021: $2,749,254).
Based on a cashflow forecast prepared by management, the ability of the Group to continue to pay its debts
as and when they fall due is dependent on the Company successfully raising additional share capital and
ultimately developing its mineral properties.
31
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(a) Basis of preparation (continued)
(iv) Going Concern (continued)
The directors believe it is appropriate to prepare these financial statements on a going concern basis
because:
-
-
The directors have appropriate plans to raise additional funds as and when required. In light of the
Group’s current exploration projects, the directors believe that the additional capital can be raised
in the market; and
The directors have an appropriate plan to contain certain operating and exploration expenditure if
required funding is not available.
These financial statements have been prepared on the basis that the Group can meet its commitments as
and when they fall due and can therefore continue normal business activities, and the realisation of its
assets and settlement of its liabilities can occur in the ordinary course of business.
In the event that the Group is unable to satisfy future funding requirements, a material uncertainty would
arise that may cast significant doubt on the Group’s ability to continue as a going concern with the result
that the Group may be required to realise its assets at amounts different from those currently recognised,
settle liabilities other than in the ordinary course of business and make provisions for costs which may arise
as a result of cessation or curtailment of normal business operations.
(b) Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Riedel
Resources Limited ('Company' or 'parent entity') as at 30 June 2022 and the results of all subsidiaries for
the year then ended. Riedel Resources Limited and its subsidiaries together are referred to in these
financial statements as the 'Group'.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the
Group 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 Group. They are de-consolidated from the
date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group
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 Group.
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.
32
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(b) Principles of consolidation (continued)
Where the Group 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 Group 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.
(c) 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 directors. The directors are responsible for the
allocation of resources to operating segments and assessing their performance.
(d)
Foreign currency translation
The financial statements are presented in Australian dollars, which is Riedel Resources Limited's functional
and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange
rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian
dollars using the average exchange rates, which approximate the rate at the date of the transaction, for the
period. All resulting foreign exchange differences are recognised in other comprehensive income through
the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is
disposed of.
(e) 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. The 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.
33
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(e) Critical accounting judgements, estimates and assumptions (continued)
Share Based Payment Transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by an
independent external valuation using Black-Scholes model, using the assumptions detailed in Note 13.
Exploration and Evaluation Costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are carried forward in respect of an area that has not at reporting date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in, or relating to, the area of interest are continuing.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the consolidated entity based on known information. This consideration extends to
the nature of the products and services offered, customers, supply chain, staffing and geographic regions
in which the consolidated entity operates.
Impairment of Exploration and Evaluation Assets
The ultimate recoupment of the value of exploration and evaluation assets is dependent on the successful
development and commercial exploitation, or alternatively, sale, of the exploration and evaluation assets.
Impairment tests are carried out on a regular basis to identify whether the asset carrying values exceed
their recoverable amounts. There is significant estimation and judgement in determining the inputs and
assumptions used in determining the recoverable amounts.
The key areas of judgement and estimation include:
• Recent exploration and evaluation results and resource estimates;
•
•
Environmental issues that may impact on the underlying tenements; and
Fundamental economic factors that have an impact on the operations and carrying values of assets
and liabilities.
34
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
(f)
Summary of Significant Accounting Policies (continued)
Income tax expenses
The charge for current income tax expense is based on the loss for the year adjusted for any non-
assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
substantially enacted by the reporting date.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised
or liability is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive
income except where it relates to items that may be credited directly to equity, in which case the deferred
tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that the
Group will derive sufficient future assessable income to enable the benefit to be realised and comply with
the conditions of deductibility imposed by the law.
(g) Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are carried forward only if they relate to an area of interest for which rights of tenure
are current and in respect of which:
•
•
such costs are expected to be recouped through successful development and exploitation or from
sale of the area; or
exploration and evaluation activities in the area have not, at reporting date, reached a stage which
permit a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active operations in, or relating to, the area are continuing.
Accumulated costs in respect of areas of interest which are abandoned are written off in full against loss in
the year in which the decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
The recoverability of the carrying amount of the exploration and development assets is dependent on the
successful development and commercial exploitation or alternatively sale of the respective areas of interest.
35
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(h)
Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured initially
at fair value adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which
case transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used
to determine the fair value. In other circumstances, valuation techniques are adopted. Subsequent measurement
of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
• amortised cost;
•
•
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
• The contractual cash flow characteristics of the financial assets; and
• The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
•
•
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
36
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(h)
Financial Instruments (continued)
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most
other receivables fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income (Equity instruments)
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding; and
• The financial asset is held within a business model with the objective of both holding to collect
contractual cash flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for
financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI.
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial
Instruments: Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to
be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose
of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless
the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are
measured at amortised cost using the effective interest method except for derivatives and financial liabilities
designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
profit or loss.
37
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(h)
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that
the transaction will take place either: in the principle market; or in the absence of a principal market, in the
most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming they act in their economic best interest. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a reassessment of the lowest level
input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of an
asset or liability from one period to another, an analysis is undertaken, which includes a verification of the
major inputs applied in the latest valuation and a comparison, where applicable, with external sources of
data.
(i)
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 current when: it is expected to be realised or intended to be sold or consumed in normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve
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 twelve months after the reporting period. All other assets
are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within twelve months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
38
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
(j)
Summary of Significant Accounting Policies (continued)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, 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.
(k) Revenue recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer,
the Group: 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.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based
on either a fixed price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
39
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
(l)
Summary of Significant Accounting Policies (continued)
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the consolidated statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flow on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
(m)
Impairment
Financial Assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the
loss allowance depends upon the Group's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected
credit losses that is attributable to a default event that is possible within the next 12 months. Where a
financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
Exploration and Evaluation Assets
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of the asset may exceed its recoverable amount at the reporting date.
Exploration and evaluation assets are tested for impairment in respect of cash generating units, which are
no larger than the area of interest to which the assets relate.
Non-Financial Assets Other Than Exploration and Evaluation Assets
The carrying amounts of the Group’s non-financial assets, are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists then the asset’s recoverable
amount is estimated. For goodwill and intangible assets that have indefinite lives or that are not yet
available for use, the recoverable amount is estimated at each reporting date.
40
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(n)
Impairment (continued)
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in the income statement. Impairment losses
recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the units, then to reduce the carrying amount of the other assets in the unit on a pro
rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exits. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss has been recognised.
(o)
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group has recognised
its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been
incorporated in the financial statements under the appropriate classifications.
(p)
Trade and other payables
Liabilities for trade creditors and other amounts are carried at cost which is the fair value of consideration
to be paid in the future for goods and services received, whether or not billed to the Group. 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.
(q) Share based payment transactions
The Group provides benefits to employees (including Directors) of the Group in the form of share-based
payment transactions, whereby employees render services in exchange for shares or rights over shares
(“equity-settled transaction”).
The cost of these equity-settled transactions with employees is measured by reference to the fair value at
the date at which they are granted. The fair value is determined by an independent external valuation using
Black-Scholes, an option valuation model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting
conditions that do not determine whether the Group receives services that entitle the employees to receive
payment.
41
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1. Summary of Significant Accounting Policies (continued)
(q) Share based payment transactions (continued)
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (“vesting date”).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the
opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best
available information at reporting date. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant
date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any increase in the value of the
transaction as a result of the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is granted,
the cancelled and new award are treated as if they were a modification of the original award, as described
in the previous paragraph.
(r)
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 provision for impairment. Trade receivables are generally due for
settlement within 30 days.
Other receivables are recognised at amortised cost, less any provision for impairment.
42
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(s) Contributed equity
Ordinary shares are classified as equity.
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. Incremental costs directly attributable to the issue of new shares
or options, or for the acquisition of a business, are included in the cost of the acquisition as part of the
purchase consideration.
(t)
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.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant
and equipment (excluding land) over their expected useful lives as follows:
Office equipment
Exploration equipment
2 years
5 years
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 recognised upon disposal or when there is no future economic
benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken
to profit or loss.
(u) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect
of employees’ services up to the reporting date and are measured at the amounts expected to be paid when
the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are recognized in non-current liabilities, provided there is an unconditional right to defer
settlement of the liability. The liability is measured as the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expect future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the reporting date
on national corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
43
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(u) Employee benefits (continued)
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
(v)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/loss attributable to the owners of Riedel
Resources 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.
(w) Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
(x) New accounting standards and interpretations adopted by the Group
AASB 2021-3: Amendments to Australian Accounting Standards – COVID-19 Related Rent Concessions
beyond 30 June 2021
The Group has applied AASB 2021-3: Amendments to Australian Accounting Standards – COVID-19-
Related Rent Concessions beyond 30 June 2021 this reporting period.
The amendment amends AASB 16 to extend by one year, the application of the practical expedient added
to AASB 16 by AASB 2020-4: Amendments to Australian Accounting Standards – COVID-19-Related Rent
Concessions. The practical expedient permits lessees not to assess whether rent concessions that occur
as a direct consequence of the COVID-19 pandemic and meet specified conditions are lease modifications
and instead, to account for those rent concessions as if they were not lease modifications. The amendment
has not had a material impact on the Group’s financial statements.
AASB 2020-8: Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform –
Phase 2
The Group has applied AASB 2020-8 which amends various standards to help listed entities to provide
financial statement users with useful information about the effects of the interest rate benchmark reform on
those entities’ financial statements. As a result of these amendments, an entity:
•
will not have to derecognise or adjust the carrying amount of financial statements for changes
required by the reform, but will instead update the effective interest rate to reflect the change to the
alternative benchmark rate;
44
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1.
Summary of Significant Accounting Policies (continued)
(x) New accounting standards and interpretations adopted by the Group (continued)
AASB 2020-8: Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform –
Phase 2 (continued)
•
•
will not have to discontinue its hedge accounting solely because it makes changes required by the
reform, if the hedge meets other hedge accounting criteria; and
will be required to disclose information about new risks arising from the reform and how it manages
the transition to alternative benchmark rates. The amendment has not had a material impact on the
Group’s financials.
(y) New and Amended Accounting Policies Not Yet Adopted by the Group
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-
current. The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The
amendment is not expected to have a material impact on the financial statements once adopted.
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments is an omnibus standard that amends AASB 1, AASB 3, AASB 9, AASB 116, AASB 137
and AASB 141. The Group plans on adopting the amendment for the reporting period ending 30 June 2023.
The impact of the initial application is not yet known.
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2.
These amendments arise from the issuance by the IASB of the following International Financial Reporting
Standards: Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and
Definition of Accounting Estimates (Amendments to IAS 8).
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of
the initial application is not yet known.
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not
applicable to leases and decommissioning obligations – transactions for which companies recognise both
an asset and liability and that give rise to equal taxable and deductible temporary differences. The Group
plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial
application is not yet known.
45
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
2.
Revenue
Revenue from continuing operations
Interest received
Other income
Unrealised foreign exchange gain
3.
Expenses
Loss for the year includes the following expenses:
Superannuation – defined contribution
Impairment of exploration expenditure
4
Income tax expense
Income tax expense/(benefit):
Current tax
Prior year under provision
Deferred tax
2022
$
432
8,891
9,323
2022
$
13,000
93,631
2021
$
405
-
405
2021
$
13,251
120,850
106,631
134,101
2022
$
2021
$
-
-
-
-
-
-
-
-
46
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
4
Income tax expense (continued)
The prima facie income tax expense/(benefit) on pre-tax
accounting loss from operations reconciles to the income tax
expense/ (benefit) in the financial statements as follows:
2022
$
2021
$
Prima facie income tax benefit on profit/(loss) at
30%. (2021: 30%)
Effect of lower foreign tax rates
(217,527)
(1,041,735)
1,510
975
Add:
Tax effect of:
Other non-allowable items
Share based payment
Impairment of exploration expenditure
Impairment of assets
10,454
-
28,089
2,294
13,103
832,500
36,257
-
Revenue losses not recognised
203,740
180,726
Provisions and accruals
Superannuation payable
Less:
Tax effect of:
Capital raising costs
Non-assessable income
Prepayments
Income tax expense/(benefit)
The applicable average weighted tax rates are as
follows:
2,100
-
1,575
128
246,677
1,064,289
(24,393)
(3,294)
(2,973)
(19,828)
-
(3,701)
(30,660)
(23,529)
-
0%
-
0%
The tax rate used in the above reconciliation is the corporate tax rate of 30% (2021: 30%) payable by
Australian corporate entities on taxable profits under Australian tax law. The full company tax rate of 30%
applies to all companies that are not eligible for the lower company tax rate.
47
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
4
Income tax expense (continued)
The following deferred tax balances have not been recognised:
Deferred Tax Assets:
At 30% (2021:30%)
Carry forward revenue losses
Capital raising cost
Provisions and accruals
2022
$
2021
$
2,170,969
1,971,585
56,778
6,000
59,387
4,028
2,233,747
2,035,000
The tax benefits of the above Deferred Tax Assets will only be obtained if:
(a)
the Group derives future assessable income of a nature and of an amount sufficient to enable
the benefits to be utilised;
(b)
the Group continues to comply with the conditions for deductibility imposed by law; and
(c)
no changes in income tax legislation adversely affect the Company in utilising the benefits.
Deferred Tax Liabilities:
At 30% (2020:30%)
Prepayments
Exploration and evaluation expenditure
2022
$
2021
$
8,584
169,897
178,481
5,611
234,243
239,854
The above Deferred Tax Liabilities have not been recognised as they have given rise to the carry forward
revenue losses for which the Deferred Tax Asset has not been recognised.
5
Auditors remuneration
Remuneration of the auditor of the Group for:
Auditing or reviewing the financial report
-
-
Stantons
PKF Perth
Other non-audit services
48
2022
$
35,000
-
-
35,000
2021
$
-
38,690
-
38,690
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
6
Cash and cash equivalents
Cash on hand
Cash at bank
7
Trade and other receivable
Prepayments
GST/VAT paid
Other debtors
2022
$
312
2021
$
312
1,370,504
2,722,876
1,370,816
2,723,188
2022
$
28,612
8,317
-
36,929
2021
$
18,703
8,029
118,997
145,729
Included in other debtors in prior year was the amount of $105,162 held by Flagstaff Minerals in trust on
behalf of the Company. This amount was utilised and as a result capitalised as exploration and evaluation
expenditure during the current year.
Refer to note 19 for further information on financial instruments
8
Exploration and evaluation expenditure
Gross capitalised exploration and evaluation expenditure
Less: Provision for impairment
Net amount
Exploration and evaluation expenditure reconciliation
2022
$
4,421,610
(214,486)
2021
$
(As Restated
Note 28)
2,587,766
(120,855)
4,207,124
2,466,911
Opening balance
2,466,911
780,810
Exploration and evaluation activities funded on behalf of
Flagstaff Minerals (US) Inc as earn-in contributions
Other consideration paid in accordance with the
terms of earn-in agreement
Impairment
Closing balance
(i)
1,833,844
1,476,956
(ii)
-
(93,631)
330,000
(120,855)
4,207,124
2,466,911
49
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
8
Exploration and evaluation expenditure (continued)
Kingman Project Earn-In
As announced to Australian Securities Exchange on 22 October 2020 (“Commencement Date”), the
Company entered into an agreement to acquire up to an 80% interest in the shares of Flagstaff Minerals
(USA) Inc (“Flagstaff:) (“the Agreement”), an unlisted company incorporated in the United States which
holds the rights to 100% of the Kingman Gold Silver Project, located in the north-west of Arizona.
During the year the Company has continued to focus on progressing the exploration and evaluation on the
Kingsman Project to advance its option to acquire an interest in the project in accordance with the terms
set out in the Agreement.
(i)
In accordance with Stage 1 of the Agreement – Initial Exploration Expenditure
• Riedel must expend AUD$5,000,000 on the Kingman Project within 3 years from the Stage 1
Commencement Date, being 22 December 2023.
• On meeting the $5,000,000 spend and to allow Riedel to move to Stage 2, Riedel is then required to
issue 100,000,000 shares at a deemed issue price of $0.055 per RIE Share to obtain a 51% equity
interest in Flagstaff USA.
In the event that Riedel withdraws before completing the Stage 1 Earn-In, subject to Riedel incurring at
least AUD$1,500,000 of expenditure on the Kingman Project within 12-months from the Stage 1
Commencement Date, Riedel shall obtain a 15% equity interest in Flagstaff USA.
As at 30 June 2022 the Company has contributed $3,310,800 (June 2021: $1,476,956)
(ii) On 11 December 2020, the Company issued 60,000,000 fully paid ordinary shares to Flagstaff
Minerals Limited at an issue price of $0.0055, which were subject to voluntary escrow for 6 months,
in accordance with the terms of the Agreement.
9
Trade and other payables
Trade creditors
Accruals
2022
$
34,219
35,333
69,552
2021
$
91,663
28,000
119,663
Trade creditors are unsecured and usually paid within 30 days of recognition.
Refer to note 19 for further information on financial instruments.
50
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
10
Contributed equity
(a) Issued capital
Notes
2022
Shares
2022
$
Ordinary shares (fully paid)
1,071,707,062
25,455,624
Less: Cost of issue
(1,150,959)
Closing balance at 30 June 2022
(e)
1,071,707,062
24,304,665
Ordinary shares (fully paid)
Less: Cost of issue
2021
Shares
2021
$
962,707,062
24,345,624
(1,103,675)
Closing balance at 30 June 2021
(e)
962,707,062
23,241,949
(b) Ordinary shares
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion
to the number of shares held and in proportion to the amount paid up on the shares held. At shareholders
meetings, each ordinary share is entitled to one vote in proportion to the paid-up amount of the share
when a poll is called, otherwise each shareholder has one vote on a show of hands.
(c) Options
Information relating to options including details of options issued, exercised and lapsed during the
financial year and options outstanding at the end of the financial year, is set out in note 11.
(d) Capital management
Management controls the capital of the Group by monitoring performance against budget to provide the
shareholders with adequate returns and ensure that the Group can fund its operations and continue as
a going concern.
The Group’s liabilities and capital includes ordinary share capital, options and financial liabilities,
supported by financial assets.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of debt levels, distributions to shareholders and share issues.
There have been no changes in the strategy by management to control the capital of the Group since
the prior year.
51
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
10
Contributed equity (continued)
(e) Movements in issued capital
Date
Shares
Issue Price
Total ($)
Opening balance 1 July 2020
418,069,699
19,237,097
Placement
11 Dec 20
363,636,363
$0.0055
2,000,000
Flagstaff consideration shares
11 Dec 20
60,000,000
$0.0055
330,000
Placement
10 Jun 21
121,000,000
$0.0150
1,815,000
Placement under Prospectus
dated 27 Nov 2020
Less: Transaction costs
15 Jun 21
1,000
$0.0150
15
(140,163)
Closing balance 30 June 2021
962,707,062
23,241,949
Opening balance 1 July 2021
962,707,062
23,241,949
Date
Shares
Issue Price
Total ($)
Placement
Placement
Placement
Less: Transaction costs
1 Sep 21
4,000,000
28 Feb 22
71,000,000
20 Apr 22
34,000,000
$0.015
$0.010
$0.010
60,000
710,000
340,000
(47,284)
Closing balance 30 June 2022
1,071,707,062
24,304,665
Placements completed during the year
• On 1 September 2021, following shareholder approval received at General Meeting of
Shareholders held on 26 August 2021, the Company issued 4,000,000 fully paid ordinary shares
at an issue price of $0.015 per share to participating directors or their nominee to raise $60,000
prior to issue costs. Share application monies totalling $60,000 were received in prior year and
were classified and included as other payables at year end.
• On 28 February 2022, the Company issued 71,000,000 fully paid ordinary shares at an issue price
of $0.01 per share to sophisticated and professional investors to raise $710,000 prior to issue costs;
and
• On 20 April 2022, following shareholder approval received at General Meeting of Shareholders held
on 8 April 2022, the Company issued 34,000,000 fully paid ordinary shares at an issue price of
$0.01 per share to certain directors and related parties including Flagstaff Minerals Limited at $0.01
per share in April 2022 to raise $340,000 prior to issue costs.
52
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
11
Share options
Exercise
price
Balance at
start of
year
Granted
during
the year
Exercised
during
the year
Cancelled/
lapsed
during the
year
Balance at
end of the
year
2022 unlisted option details
23 Nov 21
11 cents
10,000,000
14 Dec 23
1.25 cents 150,000,000
Total
Weighted average exercise
price
2021 unlisted option details
160,000,000
1.86 cents
-
-
-
-
23 Nov 21
11 cents
10,000,000
-
14 Dec 23
1.25 cents
- 150,000,000
Total
10,000,000 150,000,000
Weighted average exercise
price
11.0 cents
1.25 cents
-
-
-
-
-
-
-
-
(10,000,000)
-
- 150,000,000
(10,000,000) 150,000,000
11.0 cents
1.25 cents
-
10,000,000
- 150,000,000
- 160,000,000
-
1.86 cents
The weighted average remaining contractual life of options at the end of the financial year was 1.4
years (2021: 2.3 years).
12
Share based payment reserve
Opening balance
Unlisted options issued
Closing balance
2022
$
2,809,800
2021
$
34,800
(i)
-
2,775,000
2,809,800
2,809,800
(i) Refers to fair value of options issued in accordance with AASB 2 Share Based Payment.
The unlisted options reserve records items recognised on valuation of director, vendor and consultant
share options. Information relating to options issued, exercised and lapsed during the financial year
and options outstanding at the end of the financial year is set out in notes 11 and 13.
53
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
13
Share based payments
(a) Fair value of unlisted options granted
2022
There were no options issued during the year.
2021
The value of 150,000,000 options was calculated using Black-Scholes Option Price Model and totalled
$2,775,000. The values and inputs are as follows:
Underlying share price
Exercise price
$0.0250
$0.0125
Share price volatility
100%
Expiry date
14 Dec 2023
Risk free interest rate
0.10%
Value per option
$0.0185
(b) Fair value of unlisted options granted
The fair value of listed options granted is calculated as the market value prevailing at the date on which
the options are authorised for issue. No listed options were issued this year.
14
Foreign currency translation reserve
Opening balance
Foreign currency (loss)/ gain
Closing balance
2022
$
3,327
(8,473)
(5,146)
2021
$
(124)
3,451
3,327
The foreign currency translation reserve is used to record exchange differences arising from the
translation of the financial statements of foreign subsidiaries.
15
Accumulated losses
2022
$
2021
$
Accumulated losses at the beginning of the year
(20,838,911)
(17,374,569)
Net (loss) for the year
(725,091)
(3,464,342)
Accumulated losses at the end of the year
(21,564,002)
(20,838,911)
54
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
16
Notes to the consolidated statement of cash flows
Reconciliation of cash flow from operating activities
to (loss for the year)
(Loss) for the year
Add: non-cash items:
Share based payments
Impairment of exploration expenditure
Unrealised foreign currency gain
VAT receivable written-off
Changes in assets and liabilities:
Decrease/(increase) in trade and other receivables
Increase/(decrease) in trade and other payables
2022
$
2021
$
(725,091)
(3,464,342)
-
2,775,000
93,631
(8,891)
9,070
(5,414)
(394)
120,855
-
-
108,842
35,856
Net used in Operating Activities
(637,089)
(423,789)
Non-cash investing and financing activities
There were no other non-cash investing and financing activities, except the options issued detailed in notes
11 and 13.
17
Basic and diluted loss per share
2022
Cents
2021
Cents
Basic and diluted loss per share
(0.07)
(0.53)
(Loss) from operations attributable to ordinary
equity holders of Riedel Resources Limited used to
calculate basic loss per share
Weighted average number of ordinary shares used
as the denominator in calculating basic earnings
per share
(725,091)
(3,464,342)
996,307,062
658,984,581
The Company has not disclosed diluted earnings per share as the effect of potential ordinary shares is anti-
dilutive.
55
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
18
Segment reporting
The Company has identified its operating segments based on the internal reports that are reviewed and
used by the chief operating decision maker to make decisions about resources to be allocated to the
segments and assess their performance.
Operating segments are identified by Management based on the mineral resource and exploration activities
in Australia, United States and Spain. Discrete financial information about each project is reported to the
chief operating decision maker on a regular basis.
The reportable segments are based on aggregated operating segments determined by the similarity of the
economic characteristics, the nature of the activities and the regulatory environment in which those
segments operate.
2022
Australia
Revenue
$
432
Net (loss)/ profit before
tax
(704,421)
United
States
$
Spain
Unallocated
Total
$
$
$
-
-
-
-
432
(21,029)
359
(725,091)
Reportable segment
assets
1,961,370
3,640,799
12,700
-
5,614,869
Reportable segment
liabilities
69,552
2021
Australia
Revenue
$
405
United
States
$
Net (loss)/ profit/ before
tax
(3,445,118)
-
-
-
-
-
69,552
Spain
Unallocated
Total
$
$
$
-
-
405
(19,497)
273
(3,464,342)
Reportable segment
assets
Reportable segment
liabilities
3,325,276
1,806,956
203,596
-
5,335,828
(121,398)
-
1,735
-
(119,663)
56
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
19
Financial instruments
The Group’s principal financial instruments comprise cash and cash equivalents. The main purpose of
the financial instruments is to earn the maximum amount of interest at a low risk to the Group. The Group
also has other financial instruments such as trade and other debtors and trade and other creditors which
arise directly from its operations. For the period under review, it has been the Group’s policy not to trade
in financial instruments
The main risks arising from the Group’s financial instruments are interest rate risk, foreign exchange risk.
The board reviews and agrees policies for managing each of these risks and they are summarised below:
(i)
Interest Rate Risk
The Group is exposed to movements in market interest rates on cash and cash equivalents. The policy
is to monitor the interest rate yield curve out to 180 days to ensure a balance is maintained between the
liquidity of cash assets and the interest rate return. The Group does not have any other short or long term
debt, and therefore this risk is minimal.
(ii) Foreign exchange risk
The Group undertakes certain transactions in foreign currencies, hence exposure to exchange rate
fluctuations arise. Payments made by the Group are made at the prevailing exchange rate at the time of
payment. Loans advanced from the ultimate holding Company to subsidiary companies are denominated
in Australian dollars. The Group does not utilise derivative instruments to hedge the exchange rate risk.
(iii) Credit Risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted the policy of only dealing with credit worthy counterparties
and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of
financial loss from defaults.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of
counterparties having similar characteristics. The carrying amount of financial assets recorded in the
financial statements, net of any provisions for losses, represents the Group’s maximum exposure to credit
risk.
57
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
19
(a)
Financial instruments (continued)
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The
Group’s maximum exposure to credit risk at the reporting date was:
Financial assets
Cash and cash equivalents
Other receivables
(b)
Exposure to credit risk
Carrying
Amount
2022
$
1,370,816
8,317
Carrying
Amount
2021
$
2,723,188
127,026
1,379,133
2,050,214
None of the Group’s other receivables are past due hence no impairment were provided for.
(c)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group's reputation.
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast
and actual cash flows. The Group does not have any external borrowings.
The Company does anticipate a need to raise additional capital in the next 12 months to meet forecasted
operational and exploration activities.
The contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements are shown (e) below.
(d)
Market risks
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments.
The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
58
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
19
(e)
Financial instruments (continued)
Interest rate risks
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk
that a financial instrument's value will fluctuate as a result of changes in the market interest rates on
interest-bearing financial instruments. The Group does not use derivatives to mitigate these exposures.
The Group adopts a policy of ensuring that as far as possible it maintains excess cash and cash
equivalents at interest rates maturing over 30-180 day rolling periods.
Interest Rate Risk Exposure Analysis
Weighted
average
effective
interest
rate
Floating
interest rate
Within 1
year
Over 1
year
Non
interest
bearing
Total
2022
Financial assets
%
$
$
$
$
$
Cash and cash equivalents
0.03%
1,037,591
Trade and other
receivables
0.00%
-
Total financial assets
1,037,591
Financial liabilities
Trade and other payables
0.00%
Total financial liabilities
-
-
-
-
-
-
-
-
333,225 1,370,816
-
-
-
-
8,317
8,317
341,542 1,379,133
69,552
69,552
69,552
69,552
59
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
19
(e)
Financial instruments (continued)
Interest rate risks (continued)
Interest Rate Risk Exposure Analysis
Weighted
average
effective
interest
rate
Floating
interest rate
Within 1
year
Over 1
year
Non
interest
bearing
Total
2021
Financial assets
%
$
$
$
$
$
Cash and cash equivalents
0.05%
1,865,073
Trade and other
receivables
0.00%
-
Total financial assets
1,865,073
Financial liabilities
Trade and other payables
0.00%
Total financial liabilities
-
-
-
-
-
-
-
-
858,115 2,723,188
-
-
-
-
127,026
127,026
985,141 2,842,184
119,663
119,663
119,663
119,663
(f)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit
or loss by the amounts shown below. The analysis is performed on the same basis for 2021.
Change in profit
Increase in interest rate by 1%
(100 basis points)
Decrease in interest rate by 1%
(100 basis points)
Change in equity
Increase in interest rate by 1%
(100 basis points)
Decrease in interest rate by 1%
(100 basis points)
60
2022
$
2021
$
10,375
18,651
(10,375)
(18,651)
10,375
18,651
(10,375)
(18,651)
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
20
Commitments
On 2 October 2020, the Company announced its agreement to acquire up to 80% interest in Flagstaff
Minerals (US) Inc, the owner of the Kingman Project. The following represents the Company’s
commitments for stage 1 of transaction, refer additional information at note 8.
Within one year
After one year but not more than five years
More than five years
2022
$
1,721,392
114,668
-
2021
$
1,974,948
1,548,097
-
1,836,060
3,523,045
The above commitments relate to planned expenditure to meet the Stage 1 requirements of the Flagstaff
Transaction, refer note 8. Expenditure required to complete Stage 2 and/or 3 of the Transaction is
discretionary and will be dependent upon the outcome of current drilling.
Once the next phase of drilling has been completed, the results will be analysed and a decision on further
works will be undertaken.
21
Interests in controlled entities
The consolidated financial statements include the financial statements of Riedel Resources Limited and
the subsidiaries listed in the following table:
Name
Country of
incorporation
Equity interest (%)
AuDAX Minerals Pty Ltd
Australia
Riedel Resources (Spain) Pty Ltd
Australia
2022
100
100
2021
100
100
Riedel Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
61
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
22
Related party disclosure
Terms and conditions of transactions with related parties
Sales to and purchases from related parties are made in arm's length transactions both at normal market
prices and on normal commercial terms.
The following transactions occurred with related parties:
The following transactions occurred with related parties during the financial year:
1. The Company paid $6,000 (2021: $6,000) to Mooney & Partners, a company associated with Mr
Mooney, for the rental of office space, the rental lease is settled on a monthly basis. In the prior year,
the Company paid $36,000 for the provision of corporate and company secretarial services.
As at 30 June 2022, there was no outstanding balance (2021: $3,000 outstanding balance).
2. The Company paid $96,000 (2021: $61,000) to Cerbat Hills Pty Ltd, a company which Mr Michael
Bohm is a director, for technical consulting services provided during the year.
As at 30 June 2022, an accrual of $8,000 (2021: $80,000) was provided for June services yet to be
invoiced.
Outstanding balances at year-end are unsecured, interest free and settlement occurs in cash. The
outstanding balances outstanding at the reporting date in relation to transactions with related parties total
$8,000 (2021: $11,000) and are disclosed above.
23
Post Balance Date Events
There have not been any events that have arisen between 30 June 2022 and the date of this report or
any other item, transaction or event of a material and unusual nature likely, in the opinion of the directors,
to materially affect the operations of the Group, the results of those operations or the state of affairs of
the Group, in subsequent financial years.
24
Contingent assets and liabilities
The Company is not aware of any contingent assets or liabilities.
25
Dividends
No dividends were paid or declared during the year.
26
Fair value measurement
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other
payables are assumed to be approximately the fair value due to their short-term nature.
62
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
27
Parent entity disclosure
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
2022
$
1,395,008
3,640,799
2021
$
2,662,397
1,806,956
5,035,807
4,469,353
69,446
69,446
118,998
118,998
Net assets
4,966,361
4,350,355
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
Financial Performance
(Loss) for the year
24,304,665
23,241,949
2,809,800
2,809,800
(22,148,104)
(21,701,394)
4,966,361
4,350,355
2022
$
2021
$
(446,710)
(3,323,796)
Total comprehensive (loss)
(446,710)
(3,323,796)
Commitments
For details see note 20.
Contingent liabilities / guarantees
The Company is not aware of any contingent liabilities or guarantees.
63
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
28 Restatement
Where necessary, comparatives have been reclassified for consistency with the current year disclosure.
The following items have been reclassified within the Consolidated Statement of Financial Position:
Non-current assets:
Financial assets
Exploration and evaluation
expenditure
30 June 2021
As previously
stated
Reclassification
As restated
$
$
$
1,806,956
(1,806,956)
-
659,955
1,806,956
2,466,911
2,466,911
-
2,466,911
During the year the Board re-assessed the classification and presentation of the prepaid acquisition costs
associated with the option to acquire up to 80% of the Kingman Project and exploration and evaluation
activities funded to be in line with the provisions of AASB 6, and as such was reclassified under “Exploration
and Evaluation expenditure”.
As per 30 June 2021 Annual Report Note 8, prepaid acquisition costs associated with the option to acquire
shares in Flagstaff Minerals (US) Inc. which amounted to $1,806,956 was classified and presented as
financial asset.
During the year, the Board reassessed the classification and presentation of this prepaid acquisition cost as
part of the exploration and evaluation activities as earn-in contributions to be in-line with provisions of AASB
6 “Exploration for and Evaluation of Mineral Resources” and as such was reclassified under “Exploration and
Evaluation Expenditure”. Refer to Note 8 to the consolidated financial statements.
64
Directors’ Declaration
The directors of the Company declare that:
1.
The attached consolidated financial statements and notes are in accordance with the Corporations Act 2001:
(a)
(b)
(c)
comply with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements;
give a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance
for the year ended on that date; and
comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board as described in note 1 to the consolidated financial statements.
2.
In the directors’ opinion there are reasonable grounds to believe that the Company and the Group will be
able to pay its debts as and when they become due and payable.
3.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Michael Bohm
Non-Executive Chairman
Date: 6 September 2021
65
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
RIEDEL RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the consolidated financial report of Riedel Resources Limited (“the Company”) and its
subsidiaries (“the Group”), which comprises the consolidated statement of financial position as at 30 June
2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and the directors'
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2022 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Material Uncertainty Related to Going Concern
Without modifying our audit opinion expressed above, attention is drawn to the following matter.
As referred in Note 1(a)(iv) to the consolidated financial statements, the consolidated financial statements
have been prepared on a going concern basis.
The ability of the Company to continue as a going concern and meet its planned commitments is
dependent upon the Company being successful in raising funds through the issue of share capital.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
In the event that the Company is not successful in raising further capital, a material uncertainty exists that
the Company may not be able to meet its liabilities as and when they fall due, and the realisable value of
the Company’s current and non-current assets may be significantly less than book values.
The financial statements do not include any adjustment relating to the recoverability or classification of
recorded asset amounts or to the amounts or classifications of liabilities that might be necessary should
the Company not be able to continue as a going concern.
Key Audit Matters
We have determined the matters described below to be key audit matters to be communicated in our
report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key Audit Matters
How the matters were addressed in the audit
Restatement of prior year balances
The consolidated financial statements of the Group
for the year ended 30 June 2022 were audited by
our firm for the first time.
Inter alia, our audit procedures included the
following:
During the audit, we performed procedures to gain
an understanding of the nature of the Group’s
operations, including the associated processes
and risks, its internal control system and the
adopted accounting policies.
The procedures performed were aimed at
determining the appropriateness of the opening
balances of the consolidated financial statements
for the year ended 30 June 2022.
As disclosed in Note 28 to the consolidated
financial statements, the initial payments made
associated with the option to acquire shares in
Flagstaff Minerals (US) Inc. during the financial
year ended 30 June 2021 of $1,806,956 were
accounted for as “Prepaid acquisition costs” under
Note 8 Financial Assets in the prior year’s
consolidated financial statements.
During the financial year ended 30 June 2022, the
classification and
the
Board
presentation of these prepaid acquisition costs.
re-assessed
The Board determined that the transaction is an
asset acquisition and not a business combination
3 Business
in
Combinations.
accordance with AASB
As a result, a restatement of the 30 June 2021
balances was performed to reflect these prepaid
acquisition costs as exploration and evaluation
in accordance with AASB 6
expenditure
i.
ii.
iii.
iv.
v.
the relevant
the compliance of
Assessing
the
accounting policies applied by the Group
with
financial reporting
standards, in particular with regard to
determining if the transaction is an asset
acquisition or a business combination in
accordance with AASB 3 Business
Combination and the recognition and
measurement
and
evaluation expenditure in accordance
with AASB 6 Exploration
for and
Evaluation of Mineral Resources;
exploration
of
the documentation and
Analysing
information obtained from management
during the course of audit including the
Group’s right to tenure;
Discussing the issues with management
leading to the recognition of the prior
year restatement in accordance with
AASB 108 Accounting Policies, Changes
in Accounting Estimates and Errors;
the
Analysing
of
adjustments to the opening balances
recognised by the Group; and
appropriateness
the disclosures
Evaluating
the
consolidated financial statements with
respect to the restatement of the opening
balances.
in
Key Audit Matters
Exploration
for and Evaluation of Mineral
Resources (Refer to Note 8 to the consolidated
financial statements).
On the basis of the significance of the amount
noted above, we have considered the restatement
noted above to be a key audit matter.
Carrying Value of Exploration and Evaluation
Assets
As at 30 June 2022, the carrying value of the
Group’s Exploration and Evaluation Expenditure
totalled $4,207,124, as disclosed in Note 8 to the
consolidated financial statements.
The carrying value of the Exploration and
Evaluation Assets is a key audit matter due to:
• The significance of the total balance (75%
of total assets);
• The necessity to assess management’s
application of the requirements of the
AASB 6, considering any indicators of
impairment that may be present; and
• The assessment of significant judgements
made by management in relation to the
Exploration and Evaluation Expenditure.
How the matters were addressed in the audit
Inter alia, our audit procedures included the
following:
i.
ii.
iii.
exploration
Assessing the Group’s right of tenure
over
by
corroborating
the
relevant licences for mineral resources
to government registries and relevant
third-party documentation;
the ownership of
assets
Examining the directors’ assessment of
the carrying value of the exploration and
evaluation expenditure, ensuring the
veracity of the data presented and that
management has considered the effect
indicators,
of potential
commodity prices and the stage of the
Group’s projects against AASB 6;
impairment
of
Evaluating the Group’s documents for
consistency with the intentions for the
continuation
and
evaluation activities in certain areas of
interest and corroborated with enquiries
the
of management.
documents we evaluated included:
Inter alia,
exploration
▪ Minutes of meetings of the board
and management;
▪ Announcements made by the Group
Securities
Australian
to
the
Exchange; and
▪ Cash flow forecasts; and
iv.
Ensuring appropriate disclosures are
made
financial
the consolidated
statements.
in
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 June 2022 but does not include the financial
report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly, we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of
material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Directors, as well as evaluating the overall presentation of the
financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible for
the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the consolidated financial report of the current period and are therefore key
audit matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 22 of the directors’ report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of Riedel Resources Limited for the year ended 30 June 2022
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.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
6 September 2022
Additional shareholder information
Corporate Governance Statement
In accordance with ASX Listing Rule 4.10.3 the company’s Corporate Governance Statement can be found on
the company’s website, refer to https://www.riedelresources.com.au/corporate/corporate-governance.
Shareholding
The distribution of members and their holdings of equity securities in the holding company as at 25 August 2022
were as follows:
Number Held as at 25 August 2022
Class of Equity Securities
Fully Paid Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
36
8
38
330
460
872
Substantial Shareholding
The names of the substantial shareholders listed in the company’s register as at 25 August 2022:
Shareholder
Percentage
Number
FLAGSTAFF MINERALS LIMITED
SATORI INTERNATIONAL PTY LTD
SOUTHERN CROSS CAPITAL PTY LTD
Voting Rights
7.93
7.31
5.25
85,000,000
78,338,479
56,242,424
In accordance with the holding company's Constitution, on a show of hands every member present in person or
by proxy or attorney or duly authorised representative has one vote. On a poll, every member present in person
or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary share held.
And Option holders are not entitled to vote.
Options
Exercise price
Expiry date
Number of
options
Number of
holders
Unlisted options
$0.0125
14 December 2023
150,000,000
9
71
Additional shareholder information
Options (continued)
Number Held as at 24 September 202
1- 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
Twenty Largest Shareholders
Shareholder
Class of Equity Securities
Unlisted Options
-
-
-
-
9
9
Number
85,000,000
78,338,479
56,242,424
50,000,000
46,000,928
45,000,000
27,000,000
20,348,765
FLAGSTAFF MINERALS LIMITED
SATORI INTERNATIONAL PTY LTD
SOUTHERN CROSS CAPITAL PTY LTD
SKIFFINGTON SUPER PTY LTD
FLOURISH SUPER PTY LTD
MR JAMES WALLACE HOPE
QUINLYNTON PTY LTD
CITICORP NOMINEES PTY LTD
CLJML INVESTMENTS PTY LTD
20,000,000
JAWAF ENTERPRISES PTY LTD
HARDY ROAD INVESTMENTS PTY LTD
FLATHEAD DEVELOPMENTS PTY LTD
STYLEPOINT INVESTMENTS PTY LTD
GOLD LEAF CORPORATE PTY LTD
CYPRINE PTY LTD
ALMESH PTY LTD
MR JEFFREY JOHN MOORE + MRS JULIA ROSALIND MOORE
ROMAN ROAD HOLDINGS PTY LTD
SHAH NOMINEES PTY LTD
PROVISTA HOLDINGS PTY LTD
19,000,000
16,767,516
16,727,268
16,493,199
16,033,334
14,000,000
13,714,607
13,000,000
10,000,000
10,000,000
9,857,589
Totals: Top 21 holders of Ordinary Fully Paid Shares
Total remaining holders balance
593,381,698
478,325,364
55.37
44.63
72
% Held
of
Issued
Ordinary
Capital
7.93
7.31
5.25
4.67
4.29
4.20
2.52
1.90
1.87
1.77
1.56
1.56
1.54
1.50
1.31
1.28
1.21
0.93
0.93
0.92
Additional shareholder information
Unmarketable Parcels
There were 343 holders with less than a marketable parcel based on closing price of $0.006.
Restricted Securities
There were no restricted securities
Company Secretary
Susan Field
On-Market Buy Back
The Company has not initiated an on-market buy back.
73
Tenement Listing
SCHEDULE OF MINING TENEMENTS AS AT 25 AUGUST 2022
8.
Area of Interest
Tenement reference
Nature of interest
Interest
Australia
Marymia
Marymia
West Yandal
Porphyry
E52/2394
E52/2395
M36/615
M31/157
Direct
Direct
Royalty
Royalty
16%
16%
0%
0%
MINERAL RESOURCE STATEMENT
At 30 June 2022, the Company does not have any mineral resource.
74