RIMFIRE PACIFIC MINING NL
ANNUAL REPORT 2020
Contents
Chairman’s Report
Fifield Project Area Operations
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of Profit and Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Information for Publicly Listed Companies
Schedule of Exploration Licences and Mining Licences
Corporate Directory
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Corporate Governance Statement
The Company’s 2020 Corporate Governance Statement has been released to ASX on 30 September 2020 and is available on
the Company’s website www.rimfire.com.au.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 0
Dear Fellow Shareholders,
I am pleased to report that Rimfire has built a strong base for the forthcoming year which will be a very
active and hopefully rewarding time.
The company is well positioned financially with the recent $2.1 million share placement, the three year
$4.5 million Earn-in Agreement and the Share Purchase Plan funds that are yet to be received.
Management is executing our Dual Strategy with Mine Development and Exploration work to be
undertaken in the Sorpresa Earn-in Area, and new discovery exploration work outside the Earn-In Area.
Over the next six months or so drill programs will be undertaken at Transit, Northern Gold, Rabbers and other locations in the
Sorpresa Earn-in Area. In addition, work to prepare for development of the Sorpresa resource will also continue, including
Environmental Impact Assessment, Mine and Process Plant Design and Geotechnical and Hydrological drilling.
Work done by Management and our consultants over the last year has continued the second leg of our strategy which is
exploring for a major discovery outside the Sorpresa Earn-in Area. Our ground is within the highly prospective Lachlan Fold
Belt that has attracted significant industry attention and recognition over the past year as a world class area for potential to
discover large scale porphyry copper and gold mineralised systems. One of the more exciting prospects that Rimfire has
identified is “The Valley” which the company plans to start drilling over the next six months.
During the past year, management also implemented our Covid-19 safe work programs, continued to reduce costs, identified
better value propositions from suppliers and joined the JMEI tax credit plan.
Earlier this year, Andrew Knox was welcomed back to the Rimfire Board.
I would like to thank our management, staff and contractors for their continued hard work and professionalism over the past
year. To my fellow directors, I acknowledge and appreciate your wise advice and your work which is well excess of the duties
of Non-Executive directors. Lastly, I would like to thank our new and continuing shareholders for their support of the Company.
Ian McCubbing
Chairman of the Board
Dated: 30 September 2020
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 1
FIFIELD PROJECT AREA OPERATIONS
Health, Safety, Environment and Community
Health
There were no health incidents during the past year.
The Company has implemented Covid-19 preventive measures across all facets of field and office operations to ensure employees and
contractors are performing duties in a manner consistent with directives from relevant State and Federal authorities. Where possible
internal and external communication is being done by electronic communications such as phone or email. The Company has had no
cases of Covid-19 with employees or contractors and appreciates the ongoing support and contribution of the local community, employees
and contractors during this period of abnormal business practices.
At the Fifield project site the non-potable water tanks underwent routine emptying and cleaning or replacement whilst all effluent at site is
routinely collected by a vacuum truck for disposal at local council sewage facilities.
Safety
There was one significant (high level) potential safety incident involving a contractor commuting on a public road during the year. There
were no injuries to personnel and the company has undertaken an incident investigation to learn from the event. There are no outstanding
issues relating to it. The Company again achieved a zero incident rate for Minor Injuries, Medical Treatment Injuries and Lost Time Injuries
over the past year (1 July 2019 to 30 June 2020).
A vehicle mounted mobile phone repeater unit was purchased and fitted to Site Operations vehicle. This unit provides a more robust
system for routine communication with landowners and capability for Rimfire to manage Emergency Response events.
Periodic fire prevention work was undertaken at site in accordance with the NSW Government Department of Environment requirements.
There has also been removal of various items of contractor or company mobile and fixed equipment to further mitigate risks of surplus
equipment onsite.
Environment
There were no significant environmental incidents during the past year (1 July 2019 to 30 June 2020).
Work commenced to reduce the quantity of open Complying Exploration Activities approvals (CEAs) held by the Company. CEAs are
issued by the NSW Resources Regulator, Department of Regional NSW prior to the company undertaking any field activity that involves
any disturbance (e.g. drilling or trenches) of the land surface. Sites that have been rehabilitated are eligible for formal closure including
signoff by Landholders and field checking of all locations where work has been undertaken (Figure 1).
Community
There were no community related incidents during the past year (1 July 2019 to 30 June 2020).
A company representative also spent ½ day assisting the Tullamore Show Society in venue preparation for the Jimmy Barnes Drought
Concert Fundraiser.
Figure 1: Landholder signoff of successful rehabilitation
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 2
FIFIELD PROJECT AREA OPERATIONS
Rimfire Pacific Mining is currently focused on discovery of gold (Au) and copper (Cu) within its Fifield Project Area located at Fifield, one
hour drive west by bitumen road from Parkes in central NSW (Figure 2). The Company holds 915km2 of exploration licences covering
highly prospective ground within the Lachlan Fold Belt that is located near the Northparkes (CMOC 80% / Sumitomo 20%), Cowal
(Evolution Mining) and Cadia Valley (Newcrest Mining) operations that produce collectively over 1 million oz of gold and 100,000 tonnes
of copper annually from porphyry style copper / gold or gold only mineralised systems.
Figure 2: Location Map of Rimfire Exploration Licences in the Lachlan Fold Belt
Rimfire is pursuing a dual strategy of seeking a significant discovery within its Fifield area exploration licences and advancing the Sorpresa
deposit with the goal of delivering a value accretive project. In May, the Company formally executed Subscription, Earn-in and Joint
Venture Agreements with Golden Plains Resources Pty Ltd (GPR) over 103km2 of its tenure, including the Sorpresa Gold Resource (Figure
3).
This deal is a significant step towards the company achieving its goal of monetizing Rimfires Sorpresa Discovery. Key aspects of the deal
are:
✓ GPR will invest $1,500,000 per year for three years to earn a 50.1% interest in the Joint Venture Area. The focus of this
expenditure will be to secure project development regulatory approvals and to evaluate local prospects to provide accretive
growth opportunities for the Sorpresa Project;
✓ Following the completion of the earn-in, GPR have committed to fund the development of the Sorpresa project, including
Rimfire’s portion. This will ensure that the Company has a pathway for funding the development.
Rimfire retains approximately 812km2 of exploration licences outside of the Earn-in Agreement area with significant work focusing on
developing a better understanding of the geology of The Valley target that is approximately 5km west of the Kincora Copper / RareX
Mordialloc porphyry copper / gold target. The Company has identified 5 Induced Polarisation (IP) features that are ready for drilling.
The aspiration for the Company within the Fifield area is to achieve an aggregate discovery outcome greater than 4 million ounces of gold
equivalent metal that can support an economically viable mine life in excess of 10 years.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 3
Figure 3: Location Map of Golden Plains Resources Earn-in Area in relation to surrounding Rimfire Exploration Licences.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 4
Review of Discovery Activity
Rimfire completed two drilling programs during the past year. The Phase 1 and 2 drilling programs included two RC holes totaling 165.5m
at the Northern Gold prospect and thirty six aircore holes totaling 1,423m drilled across the Northern and Southern Areas. The results
from the Southern Area Phase 2 aircore drilling and bedrock sampling support the interpretation that the bedrock has an Ordovician
Macquarie Arc geochemical signature. However, analysis of rock geochemistry indicates that it is likely to be from Stage II volcanism
rather than the preferable Stage III and IV volcanism associated with mineralisation at Cowal (gold) and Northparkes (copper / gold).
In 2019 H&S Consultants completed an update of the Sorpresa Mineral Resource Estimate (JORC 2012).
✓ The new Resource Estimate is 0.92Mt @ 2.3g/t Au and 30g/t Ag for 67koz gold (Au) and 0.9Moz silver (Ag) at 1.0g/t Au cut-off grade
✓ The Mineral Resource within the oxidation zone of mineralisation (up to 50m below ground surface on average) is 0.47Mt @ 2.4g/t
Au and 22g/t Ag for 35.5koz gold and 0.3Moz silver at 1.0g/t Au cut-off grade.
✓ The average resource grade for gold at 1.0g/t Au cut-off has increased for the oxide and sulphide zones from 1.96g/t Au to 2.27g/t
Au (ASX Announcement: Sorpresa Resource Update 6 Nov 2019).
There was ongoing generative work undertaken during the year which included development of The Valley target for further assessment.
The Valley Cu-Au Target
The Valley target lies ~23 km ESE of Sorpresa near the township of Trundle and approximately 3 km west of the Mordialloc copper / gold
prospect currently being explored by Kincora Copper (JV with RareX) where they have defined a porphyry system. The primary target is
represented by a drill ready copper / gold surface anomaly where rock chip samples yield elevated copper (max >5%), from an ironstone
unit which forms a semi-linear ridge that likely extends for ~3.5 km (Figure 4). Beneath and proximal to this ridge, an Induced Polarisation
(IP) geophysics survey has defined a series of anomalous chargeability and resistivity zones of interest at ~100m depth. Several historical
drill holes failed to reach the target depth due to technical issues. Five 150m deep RC / diamond tail drill holes are planned to test these
features (Figure 5). Recent 3D modelling of magnetic data within the target area has led to the interpretation that the equivalent Ordovician
unit (Goonumbla and Raggatt Volcanics) that is associated with porphyry mineralisation in neighbouring prospects/deposits such as
Mordialloc, Trundle and Northparkes is likely dipping under the ironstone ridge and IP anomalies. The modelled depth of ~350m to top of
this unit represents another prospective target of interest.
Figure 4: Location Map of The Valley target and Induced Polarisation (IP) Survey
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 5
Figure 5: The Valley target IP Survey Lines and Proposed drill holes.
Northern and Southern Areas
The focus of exploration in the Northern and Southern Areas was for the discovery of a major copper / gold or gold mineralised system
such as Northparkes (Cu/Au) or Cowal (Au).
The reconnaissance geological field mapping of the 30km2 Northern Area and 100km2 Southern Area was completed prior to Phase 1
drilling program. This information was incorporated into the design of aircore drill hole locations for the Northern and Southern Areas. In
the Northern Area a program of 11 vertical aircore holes of average depth 20m for a total of 360m drilling would provide samples of the
bedrock which is generally covered by approximately 10 metres of transported soils. In the Southern Area a program of 35 vertical aircore
holes of average depth 50m for a total of 1,750m drilling would provide samples of the bedrock which is generally covered by approximately
30 metres of transported soils.
A total of eleven aircore holes, totaling 408 metres, were drilled in the Northern Area.
Results from the drilling include a sample of diorite assaying up to 703ppm copper within the copper anomaly. This feature is interpreted
as being marginal to a zone of anomalous copper in volcaniclastic rocks which are sometimes intruded by diorite dykes assaying less than
400ppm copper. Rimfire’s interpretation of the drilling results is that the 2.5km long copper anomaly is related to a line of discrete
moderately copper anomalous (400 to 700ppm copper) diorite plugs. Minor secondary enrichment has resulted in occasional assays
exceeding 1000ppm copper at several locations.
A total of 36 reconnaissance aircore holes totaling 1,423 metres were drilled in the Phase 1 and Phase 2 programs in the Southern Area.
As expected, interpreted older Ordovician rocks of the geological period that hosts Northparkes and Cowal mines were intersected in all
holes with more proximal lavas located in the eastern third of the area.
The copper geochemistry for the region is generally subdued with all three metre samples assaying < 254ppm. Gold is also subdued
assaying <0.3ppm except for a three metre interval of quartz diorite from the centre of the Murrambogie Dome, which assayed 0.29 ppm
gold.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 6
Northern Gold
The Northern Gold Prospect is 2km north of the Sorpresa discovery, where there is an extensive area of relatively shallow (<6m) historic
gold workings covering +350m strike length x 80m width, in what is interpreted as a gravel filled poorly formed valley. Historic workings
across the area are thought to have been targeting coarse gold accumulations within the highly weathered bedrock at the base of the
infilling gravels. An initial auger drilling program was completed to test both the valley fill and underlying insitu geology. The work
confirms the source of gold is from bedrock rather than infilling channel gravels. Weathered bedrock samples seem to indicate that the
host rocks are not black silica lithology as at Sorpresa. More work is required to understand controls of what appears to be a related but
different mineralisation setting to the nearby Sorpresa Deposit. Assay results indicate anomalous gold (+20ppb) within the weathered
bedrock below the gravels. The degree of weathering is high, creating the potential for gold depletion near surface. There has been no
known drill testing of bedrock below the zone of historical hand mining pits.
The First Phase of RC drilling at the Northern Gold prospect consisted of 2 holes totaling 165.5m. Drilling intersected anomalous gold
(0.15 ppm), copper (0.17 %), lead (120 ppm) and zinc (0.13%) (Figure 6). These results are supportive of the IRGS model for
mineralisation in the area. The surface gold remains unexplained by the limited drilling to date.
Figure 6: Location Map of Northern Gold Prospect and Sorpresa
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 7
Sorpresa Monetisation
H&S Consultants Pty Limited was engaged by Rimfire Pacific Mining NL to provide an update of their 2014 maiden Sorpresa Au / Ag
Mineral Resource Estimate (ASX Announcement: Sorpresa Resource Update 6 Nov 2019). The update to the resource estimate was
requested by Rimfire to allow inclusion of further drilling data and better quantify higher grade gold mineralisation.
Resources for Sorpresa are reported at separate cut-off grades for gold and silver (1.0 g/t Au and 85 g/t Ag) with material above both cut-
off grades included in the gold resources. The silver / gold factor of 85g/t is based on a gold price of US$1,494.10 per ounce and a silver
price of US$17.58 per ounce using the Comex spot prices on 21/10/2019. This shows that there is a significant quantity of silver-rich
mineralisation outside of the greater than 1.0 g/t Au material above a similar value-equivalent silver cut-off grade ie 85 grams of silver has
equivalence of 1 gram gold.
The Mineral Resource Estimate for silver indicates significant potential upside in zones of silver rich mineralisation which have modelled
gold grades of below 1g/t and are not included in the gold only cut-off grade tonnages.
Resource
Cut off
Category
Mt
Grade
Contained Metal
g/t Au
g/t Ag
Koz Au
Moz Ag
Gold
1.0 g/t Au
Silver
85 g/t Ag
Combined
1.0g/t Au & 85 g/t Ag
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
Measured
Indicated
Inferred
Total
0.162
0.532
0.228
0.922
0.027
0.509
0.062
0.598
0.189
1.041
0.289
1.519
2.88
2.08
2.25
2.27
0.50
0.37
0.33
0.37
2.54
1.25
1.84
1.52
53
25
22
30
171
133
116
133
70
78
42
70
15.0
35.7
16.5
67.1
0.4
6.0
0.6
7.1
15.4
41.7
17.1
74.3
0.28
0.44
0.16
0.88
0.15
2.18
0.23
2.56
0.43
2.62
0.39
3.44
Note: The figures in this table are rounded to include rounding errors and reflect precision of the estimates.
At 1.0 g/t Au cut-off grade, the new model (oxide and sulphide) has slightly higher tonnage and higher grades than the 2014 version, for
a significant increase in contained ounces of gold.
Model
2014
2018
18/14
Mt
0.90
0.92
102%
g/t Au
1.96
2.27
116%
g/t Ag
26.1
28.4
109%
Koz Au
57
67
118%
Perilya Joint Venture
A passive 10% interest is held by the Company (Perilya 90%) in Exploration Licence EL5958 in the Broken Hill area with Perilya responsible
for meeting all annual expenditure commitments and other compliance requirements. The ground is contiguous and along strike from
Cobalt Blue’s (ASX “COB”) Thackaringa Project and has potential for base metal and cobalt mineralisation.
Key Priorities Ahead
Over the period of this Annual Report the Company has focused its exploration effort towards the discovery of a significant size (> 1Moz
gold or and / or 1Mt copper / gold) mineralised system. This work has included reevaluating the existing datasets that were instrumental
in identifying The Valley target as a significant priority. In parallel the Company secured an Earn-in Agreement with Golden Plains
Resources (GPR) for a 103km2 area that includes the Company’s Sorpresa gold discovery. GPR has full responsibility for funding work in
the Earn-in Area however Rimfire is responsible for the design and execution of work programs. The key priorities for the forthcoming
year will be split between the GPR Earn-in and Rimfires surrounding ground holding of over 800km2 with The Valley target a key priority.
The goal of the Earn-in Agreement with GPR is to obtain consent for development of the Sorpresa Resource whilst also continuing
exploration activities in the Earn-in area for further economic mineralisation as accretive brownfield growth opportunities. The goal of
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 8
Rimfires ongoing exploration activities outside the Earn-in area is to discover, define and develop further significant mineable copper /
gold or gold resources.
The immediate focus in the GPR Earn-in area includes:
✓ Selection of Lead Environmental Consultant for completion of Environmental Impact Assessment (EIA) and the associated technical
programs necessary to complete the Assessment.
✓ Completion of drilling programs that will provide technical data for Mine Design Plans in key areas such as
geotechnical - pit wall design criteria and soil foundation studies for infrastructure
•
• metallurgical - ore body characterisation studies that determine process plant operational parameters
•
•
hydrological – process plant water supply sources and evaluation of any water sources that could impact pit design
sterilisation – confirm barren basement in areas of mine infrastructure such as waste dumps and process plant
✓ Drilling programs to further assess Northern Gold and Transit prospects.
The immediate focus outside the GPR Earn-in area includes:
✓ The Valley target
• Drilling of 5 RC – diamond tail hole to approximately 150m depth to test chargeability and resistivity responses identified
in bedrock from Induced Polarisation (IP) geophysical surveying.
• Drilling of a deep (circa 400m) 3D modelled magnetic body that is interpreted as being Ordovician Raggett Volcanics that
are probably coeval and comagmatic with the Goonumbla Volcanics that host the Northparkes copper / gold mine.
✓ Greater Cowal Area
•
Aircore drill testing of the bedrock beneath approximately 40m of transported cover to obtain bedrock samples that show
evidence of rock types, alteration, geochemistry or mineralisation supportive of a large scale mineralised system,
Land Tenure
On 20 February 2020 Rimfire received confirmation from NSW Government, Planning Industry and Environment, Resources Regulator the
cancellation of EL5534 and grant of EL8935. The Exploration Licence (EL) boundaries are the same except EL8935 includes 2 hectares
previously covered by M(C)L306 which has been relinquished. This transfer allows the Company to hold this ground under lower cost
EL tenure rather than as a Mining (Claim) Lease with ongoing higher management costs.
DIRECTORS’ REPORT
Your Directors present the following report on the Company and its controlled entity for the financial year ended 30 June 2020.
Directors
The names of Directors in office during the whole or part of the financial year and up to the date of this report:
Ian McCubbing (Chairman)
▪
▪ Craig Riley (Managing Director and Chief Executive Officer)
▪ Andrew Greville (Non-Executive Director)
▪ Andrew Knox (Non-Executive Director, appointed 18 March 2020)
Principal Activities
The principal activities of the Consolidated entity during the financial year were the exploration and evaluation of mineral deposits.
Review of Operations
The Company’s focus remains at Fifield NSW with prospects and targets in gold and copper.
The exploration activities are within the well-established, highly credentialed and mineralised Macquarie Arc Lachlan Fold Belt and a
regional structural corridor referred to as the Lachlan Transverse Zone (LTZ). This corridor includes the Northparkes copper / gold mine
and the Cadia Valley Operations gold / copper mines amongst others and represents an excellent discovery setting for the Company.
Operational Activities
The Company continues to enact a process of review, rating and prioritisation of its key prospect opportunities to progress and grow the
pipeline for new discoveries.
The Fifield area has good access to infrastructure and skills suitable for any potential mining scenario which further supports the pursuit
of discovery in the district.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 9
Full details of the progression of discovery activity undertaken during the period is contained in the Fifield Project Area Operations section
of this Annual Report.
Junior Resource Sector Outlook and Financial Position
The global outlook for the resources sector continues to be mixed with strong demand and interest in the top tier mining companies with
variable and predominately weaker interest in the junior resource sector during the period. For the junior resource sector (exploration),
there is still low levels of investor liquidity and investor participation. The resurgence of the gold price and fundamentals due to the world
economic fears on the back of international trade policies is yet to flow through to an increased interest in junior greenfields exploration
companies with strong exposure to the gold sector. Importantly, the industry is starting to recognise that as major gold producer reserves
and resources decline, there is a need to increase expenditure to achieve discoveries of new replacement gold resources. This should
see exploration spend increase by the majors and support a more buoyant outlook for the junior gold exploration companies.
The Company’s cash at bank at 30 June 2020 was $0.3m. This cash balance has subsequently been increased due to the placement of
168 million shares at an issue price of $0.0125 to raise $2.1m and receipt of payments related to the Earn-in Agreement.
The Company continues to actively manage costs with Non-Executive Director fee payments and Senior Management salaries deferred,
following the implementation of cash preservation measures in January 2019.
During the period, Rimfire was notified by the ATO that its application for a Junior Minerals Exploration Initiative (JMEI) credit allocation
was successful and the ATO granted an allocation of $780,000 in JMEI credits for the 2020/21 income tax year. The JMEI credits will only
be available to ordinary shares issued between 01 July 2020 and 30 June 2021. A participating shareholder’s final JMEI credit entitlement
amount will be determined after lodgement of the Company’s 2020/21 tax return. This is in addition to the $550,000 of JMEI credits
available for the 2019/20 income tax year with the credit certificates being distributed to eligible shareholders at the completion of the
Company’s tax return.
The JMEI scheme has been put in place by the Federal Government to encourage investment in small minerals exploration companies that
carry out greenfields mineral exploration in Australia. The JMEI scheme provides credits that allows greenfields mineral eploration
companies to generate a tax incentive by allowing companies to give up a portion of their tax losses from eligible greenfields mineral
exploration expenditure for distribution to investors. The JMEI credits are only available for Australian resident shareholders and generally,
these shareholders will be entitled to a refundable tax offset (for individual shareholders or superannuation funds) or franking credits (for
companies).
Capital Structure
As at 30 June 2020 the capital structure of the Company was;
- 1,584,571,527 Ordinary Shares on Issue (RIM)
- 74,000,000 Unlisted Options, various prices and vesting dates
Commodity Pricing for the Period
During the 2020 Financial Year, the gold price continued to appreciate with an increase of 28%, finishing at USD 1,780.10 per ounce.
Currently, the gold price is trading at AUD 2,690 per ounce (using an exchange rate AUD:USD of 0.70 and gold price as at 28 September
2020), which is close to record highs. The table below summarises the pricing for gold and silver sourced from www.kitco.com in New
York in USD and copper prices sourced from www.LME.com in USD.
Commodity
Price USD
30 Jun 2020
1,780.10
18.19
6,038
*Using an exchange rate AUD:USD of 0.70 for 30 June 2019 and 30 June 2020
Price USD
1 Jul 2019
1,391.20
15.18
5,998
Price AUD
1 Jul 2019
1,987.43
21.69
8,569
27.95%
19.83%
0.67%
FY20 USD
Change
Price AUD
30 Jun 2020
2,543.00
25.99
8,626
Gold (oz)
Silver (oz)
Copper (t)
FY20 AUD
Change
27.95%
19.83%
0.67%
Operating Results
The loss of the Consolidated entity amounted to $956,975 in the period (2019: $875,505).
Dividends
No dividends were paid during the financial year, nor are any recommended at 30 June 2020 (30 June 2019: Nil).
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 10
After Balance Date Events
After the Balance Date the consolidated entity has received $2,100,000 from a share placement and it has also received $580,000 relating
to the outstanding balance of the Administration Fee, and the initial first quarter work program budget cash call in relation to the GPR Earn-
in Agreement.
The Company has resolved to approve a Share Purchase Plan for $500,000 for shareholders on the same pricing terms as the subsequent
capital raising. Shareholders will have the right to take up shares to a maximum of $30,000.
No other matters or circumstances which have arisen since the end of the financial year have significantly affected or may significantly
affect the operations of the Consolidated entity, the results of those operations, or the state of affairs of the Consolidated entity in future
financial years.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive for the consolidated entity up to
30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly
developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social
distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
Licence and Environmental Compliance
The Consolidated entity aims to ensure that the highest standard of environmental care is achieved. The Board maintains the responsibility
to ensure that the Consolidated entity’s environment policies are adhered to and to ensure that the Consolidated entity is aware of, and is
in compliance with, all relevant environmental legislation.
Information on Directors
Ian McCubbing
Non-Executive Chairman
Bachelor of Commerce (Hons), MBA (Ex), CA, GAICD
Experience and Expertise
Appointed Director and Chairman of the Board in July 2016 and possesses a strong commercial
background in the resources industry.
Mr McCubbing is a Chartered Accountant with more than 30 year’s experience, principally in the areas of
accounting, corporate finance and mergers and acquisition. He spent more than 15 years working with
ASX200 and other listed companies in senior finance roles, including positions as Finance Director and
Chief Finance Officer in mining and industrial companies.
Other Current Directorships
Swick Mining Services Ltd (Non-Executive Director since 1 August 2010),
Prominence Energy NL (Non-executive Chairman since 25 October 2016).
Former Directorships in Last 3
Years
Symbol Mining Ltd (Non-Executive Director from 19 December 2017 to 28 February 2019)
Avenira Ltd (Non-Executive Director from 20 December 2012 to 31 January 2019)
Special Responsibilities
Chairman of the Board
Member of the Audit Committee.
Member of Remuneration and Nomination Committee.
Interests in Shares
11,809,849 Fully paid ordinary shares
Craig Riley
Managing Director and Chief Executive Officer
Bachelor of Applied Science (Hons) (Queensland University of Technology)
Joined Rimfire in September 2018 in the capacity of Business Development Manager and was appointed
Chief Executive Officer on 31 January 2019 and Managing Director on 31 March 2019.
Mr Riley has more than 25 years of exploration and mining industry experience with a successful track
record of commercial appraisal and development of projects globally across a range of commodities. His
extensive experience includes major mining companies and junior explorers internationally and across
Australia including Northparkes mine.
None.
None.
Experience and Expertise
Other Current Directorships
Former Directorships in Last 3
Years
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 11
Special Responsibilities
Appointed CEO 31 January 2019, appointed Managing Director 31 March 2019
Interests in Shares
Nil.
Interests in Options
35m unlisted options, various vesting dates and performance hurdles (as at signing date).
Andrew Greville
Non-Executive Director
Bachelor of Engineering (Mining), University of Queensland, Queensland Limited Mine Manager’s Certificate
Experience and Expertise
Appointed Director of Rimfire Pacific Mining NL in August 2017. Mr Greville is a qualified mining
engineer, and brings over 30 years of mining industry experience in the copper industry, particularly in
the fields of business development, including mergers & acquisitions, marketing and strategy. Mr
Greville’s career includes the role of Executive General Manager, Business Development and Strategy,
Xstrata Copper.
Other Current Directorships
Managing Director of West End Mining & Consulting (Private Company)
Aeon Metals Ltd (Non-executive Director from May 2020)
Former Directorships in Last 3
Years
None.
Special Responsibilities
Member of Audit Committee
Chair of Remuneration and Nomination Committee
Interests in Shares
3,000,000 Fully paid ordinary shares
Andrew Knox
Non-Executive Director
Bachelor of Commerce, CA, CPA, FAICD
Mr Knox was appointed Non-Executive Director of the Board in March 2020 and brings a strong
commercial background in strategy and fund raising for micro and low capital companies in the oil and
gas and mining industries.
Experience and Expertise
He has over 35 years of experience throughout Australasia, South East Asia and North America. Mr Knox
provides additional significant experience in financial and commercial activities, involving acquisitions,
Merger and Acquisition (M&A) and capital raisings. He is a chartered accountant (CA ANZ), public
accountant (CPA Australia) and a fellow of the Australian Institute of Company Directors (FAICD).
Other Current Directorships
Former Directorships in Last 3
Years
Special Responsibilities
Mr Knox was formally a Non-Executive Director of Rimfire from 2005 to 2011. Currently Mr Knox is the
CEO and Managing Director of ASX listed company, Red Sky Energy Ltd.
CEO and Managing Director of Red Sky Energy Ltd. from July 2018
Nil
Chair of Audit Committee
Member of Remuneration and Nomination Committee
Interests in Shares
12,489,582 Fully paid ordinary shares
Melanie Leydin
Company Secretary
Bachelor of Business majoring in Accounting and Corporate Law, Swinburne University, Chartered Accountant, Registered Company
Auditor and Fellow of the Governance Institute of Australia
Experience and Expertise
Appointed as Company Secretary of the Company in April 2017. Ms Leydin holds a Bachelor of Business
majoring in Accounting and Corporate Law. She is a member of the Institute of Chartered Accountants,
Fellow of the Governance Institute of Australia and is a Registered Company Auditor. She graduated from
Swinburne University in 1997, became a Chartered Accountant in 1999 and since February 2000 has been
the principal of Leydin Freyer. The practice provides outsourced company secretarial and accounting
services to public and private companies across a host of industries including but not limited to the
Resources, technology, bioscience, biotechnology and health sectors.
Ms Leydin has over 25 years’ experience in the accounting profession and over 15 years as a Company
Secretary. She has extensive experience in relation to public company responsibilities, including ASX and
ASIC compliance, control and implementation of corporate governance, statutory financial reporting,
reorganisation of Companies and shareholder relations.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 12
Meetings of Directors
During the financial year, meetings of Directors were held and attendances by each Director are detailed below.
Director's Meetings
Audit Committee Meetings
Rem. and Nom. Committee
Meetings
No. Eligible to
Attend
Number
Attended
No. Eligible to
Attend
Number
Attended
No. Eligible to
Attend
Number
Attended
Ian McCubbing
Craig Riley
Andrew Greville
Andrew Knox (appointed 18/05/2020)
17
17
17
9
17
17
16
9
2
-
2
-
2
-
2
-
1
-
1
1
1
-
1
1
REMUNERATION REPORT (AUDITED)
The Remuneration Report, which has been audited, outlines the Key Management Personnel (KMP) remuneration arrangements for the
Consolidated entity, in accordance with the requirements of the Corporations Act 2001 and its regulations.
The Remuneration Report is set out under the following main headings:
1.
2.
3.
4.
5.
6.
7.
8.
Principles used to determine the nature and amount of remuneration
Details of remuneration for the year ended 30 June 2020
Employment contracts
Share based compensation of Directors and Key Management Personnel
Additional Disclosures relating to Key Management Personnel
Shareholding
Five year summary of key financial data
Other matters
1.
Principles used to determine the nature and amount of remuneration
The Board of Rimfire Pacific Mining NL uses the Remuneration and Nomination Committee to review and consistently apply the Company
Policy to allow the Company to maintain its ability to attract and retain the best executives and Directors to run and manage the Consolidated
entity, as well as create alignment between Directors, executives and shareholders.
The Company Policy, implemented via the Remuneration and Nomination Committee, is to benchmark Company remuneration against
comparable businesses and ensure that remuneration is comparable to the upper quartile, but also within the financial constraints the
Company may be operating within at the time of assessment.
Remuneration policy for Directors and senior executives is reviewed annually by the Board. The policy allows a mix, as determined by the
Board on advice of the Remuneration and Nomination Committee. Depending on the nature of employment agreements, remuneration
comprises a fixed component, (which is based on factors such as capability, effectiveness, work tasks, responsibilities, length of service
and experience), superannuation, fringe benefits, short term bonus, long term incentives (which may include shares, options on shares or
performance rights), subject to any necessary shareholder or regulatory approvals. During the year the Company did not engage
remuneration consultants to provide advice on the Company’s remuneration policy.
Leading the development of strategy, and communicating to stakeholders,
The policy requires reviews taking into account the Consolidated entity’s performance, executive and Non-Executive Director performance
and comparable information from industry, including other listed companies in the resources sector. Independent external advice is sought
as required. There is currently no link between the policy and the Company’s earnings and shareholder wealth because the Company is
still in the exploration phase and is not generating revenue. Instead, the criteria for executive and Director appraisal include:
▪ Maintaining high standards of workplace, health and safety, environmental compliance and community liaison,
▪
▪ Maintaining capital resources necessary to execute the Company’s strategy, with minimal dilution and costs to shareholders,
▪
Technical advancement in the discovery potential of the project areas,
▪ Managing operations and expenditure to efficient levels and within budgets,
▪
▪
▪ Managing investor relations and Company communication,
▪
Preserving financial and business integrity and managing risk under difficult industry conditions,
Recruiting, managing and training personnel to ensure access to high levels of skill in the industry,
Ability to multi-skill and cover as much of the Company’s skill needs from in-house resources.
The Board is aware of the need to maintain competitive remuneration to reward performance which benefits shareholders and advances
the Company. To this end, a review of the short term bonus and long term incentive programs to motivate and reward those people who
create shareholder value and make the greatest contribution to the Company was undertaken last year. A Long term incentive Plan was
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 13
approved by shareholders at the Company’s 24 November 2017 AGM and this will be submitted to shareholders for re-approval at the
Company’s 2020 AGM.
Whilst there has been no change to the remuneration of Non-Executive Directors, since January 2019 Non-Executive Directors pay was
deferred whilst the company was undertaking cost reduction activity and still remain unpaid at the end of the period. To align Directors’
interests with shareholder interests, Directors are encouraged to hold shares in the Company. Senior Management from April 2020 were
paid reduced salaries whilst the company was undertaking cost reduction activity due to restrictions from the Covid-19 pandemic.
The remuneration policy review undertaken in 2018 will be revisited as required to ensure it continues to meet the needs of the Company,
creates better alignment to industry practices for remuneration and to accommodate changes to law. The Company has reviewed the
application of laws in relation to the use of employee share schemes and performance rights. At the 2019 AGM the Company received
98% of ‘for’ votes in relation to its remuneration report for the year ended 30 June 2019. The Company received general feedback in
relation to its remuneration practices at the 2019 AGM. Feedback from shareholders is considered as part of the Company’s periodic
performance review process for Executives and Directors and is taken into account when benchmarking remuneration against comparable
businesses.
2.
Details of Remuneration for the Year Ended 30 June 2020
Benefits to senior executives and the Non-Executive Directors consisted primarily of cash benefits in the period with unlisted options with
vesting conditions being offered to the Managing Director. A Non-Executive Director Pool of $200,000 was available in 2020 ($200,000
in 2019) and represents the maximum aggregate payments to Non-Executive Directors, in their capacities as Directors, that can be paid in
any one year without requiring additional shareholder approval. The actual Non-Executive Director pool utilised in the 12 month period
was $111,366 in total ($133,333 in 2019). This rate is below the industry norm.
2020
Name of Director / Senior Executive
Non- Executive Directors
I McCubbing
A Greville
A Knox (appointed 18 March 2020)
Executive Directors
C Riley
Total
Primary
Post
Employment
Long Term
Benefits
Equity
Compensation
Total
Paid Salary,
Fees &
Commissions*
Accrued
Salary and
Fees**
Superannuation
Contributions
Bonus
Long
Service
Leave
Options **
2,500
-
-
57,500
40,000
11,366
165,242
167,742
9,500
118,366
-
-
-
-
-
-
-
-
15,384
15,384
-
-
-
-
-
-
-
-
60,000
40,000
11,366
46,441
46,441
236,567
347,933
*Accrued Salary and Fees are the amounts accrued but not paid at the end of the period.
**Options amount relate to Options granted in 2019, with the accounting value being recognised for this current period.
2019
Name of Director / Senior Executive
Non- Executive Directors
I McCubbing
A Greville
R Enconniere (retired 31 January 2019)
Executive Directors
J Kaminsky (retired 31 March 2019)
C Riley (appointed CEO 31 January
2019, appointed Managing Director 31
March 2019)
Total
Primary
Post
Employment
Long Term
Benefits
Equity
Compensation
Total
Paid Salary,
Fees &
Commissions
Accrued
Salary and
Fees*
Superannuation
Contributions
Bonus
Long
Service
Leave
Options
22,831
20,000
28,333
27,397
20,000
3,333
- 4,772
- - 55,000
- - - - 40,000
- - - - 31,666
155,731
6,033
- 19,146
39,145
-
220,055
60,727
287,622
11,569
68,331
-
-
6,868
30,786
-
39,145
111,503
111,503
190,666
537,387
*Accrued Salaries and Fees are the amounts accrued but not paid at the end of the period.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 14
Performance Income as a Proportion of Total Remuneration
No performance based remuneration was paid during the year ended 30 June 2020 (2019: nil).
Transactions Between Related Parties
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other
parties unless stated. In the current financial year related parties (WEMCO) of Mr Andrew Greville were paid in respect of consulting
services $1,250. Payment for these services were on normal commercial terms.
3.
Employment Contracts
An Executive Services Agreement is in place with the CEO and Managing Director, Mr Craig Riley, effective from 31 January 2019. Under
the terms of the Agreement, the termination provisions are 6 months’ notice by the company and 3 months’ notice by the employee. Mr
Riley is entitled to an annual salary (inclusive of superannuation) of $190,000.
The Non-Executive Directors have been appointed on an ongoing basis and Directors have no retirement benefit allowances (neither
current nor accrued), and the Company has no obligations to Directors upon their cessation from office.
4.
Share Based Compensation of Directors & Key Management Personnel
No options or other share based compensation was granted to Key Management Personnel or Non-Executive Directors during the year
ended 30 June 2020.
5.
Additional Disclosures Relating to Key Management Personnel
None.
6.
Shareholding
Number of Shares held by Key Management Personnel in which they have a relevant interest.
2020
Name of Director / Senior Executive
Balance 01 July
2019
Received as
Remuneration
Shares Acquired
Net Change Other
Balance 30
June 2020
Non- Executive Directors
I McCubbing
A Greville
8,857,383
- 2,952,466
- 11,809,849
2,250,000
-
750,000
- 3,000,000
A Knox (appointed 18 March 2020)*
-
-
-
12,489,582
12,489,582
Executive Directors
C Riley
Total
- - -
- -
11,107,383
-
3,702,466
12,489,582
27,299,431
* A Knox held the shares at the time of his appointment as Non-Executive Director.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 15
2019
Name of Director / Senior Executive
Balance 01 July
2018
Received as
Remuneration
Shares Acquired
Net Change Other
Balance 30
June 2019
Non- Executive Directors
I McCubbing
A Greville
R Enconniere**
Executive Director
J Kaminsky**
C Riley
2,574,285
- 6,283,098
- 8,857,383
1,000,000 - 1,250,000
- 2,250,000
9,069,860
- 1,742,464 (10,812,324)
-
33,408,169
- 222,222
(33,630,391)
-
Total
46,052,314
-
9,497,784
(44,442,715)
11,107,383
**Due to R Enconniere and J Kaminsky retirement from the Board (31 January 2019 and 31 March 2019 respectively) they are not considered a Key
Management Person from this date and their shareholdings are therefore not included in the balance for 30 June 2019.
Options
Number of Options held by Key Management Personnel
2020
Name of Director / Senior Executive
Balance 01
July 2019
Options
Acquired
Options
Received as
Rem.
Options
Expired
Net
Change
Other
Balance 30
June 2020
Total Vested
30 June 2020
Non- Executive Directors
I McCubbing
A Greville
5,241,877
2,952,466
1,250,000
750,000
A Knox (appointed 18 March 2020)
-
Executive Directors
C Riley
Total
-
-
42,500,000
48,991,877
3,702,466
-
-
-
-
-
(8,194,343)
(2,000,000)
-
-
(10,194,343)
-
-
-
-
-
-
-
-
42,500,000
15,000,000
42,500,000
15,000,000
*A Knox held 2,197,916 options at his time of appointment as Non-Executive Director which lapsed during the year
2019
Name of Director / Senior Executive
Non- Executive Directors
I McCubbing
A Greville
Balance 01
July 2018
Options
Acquired
Options
Received as
Rem.
Options
Expired
Net Change
Other
Balance 30
June 2019
Total
Vested 30
June 2019
-
5,241,877
-
- -
5,241,877
5,241,877
- 1,250,000
-
- - 1,250,000
1,250,000
R Enconniere (retired 31 January 2019)*
- 1,742,464
-
-
(1,742,464)
-
-
Executive Directors
J Kaminsky (retired 31 March 2019)*
C Riley (appointed CEO 31 January 2019,
appointed Managing Director 31 March
2019)
-
222,222
-
-
(222,222)
- -
- -
42,500,000
-
-
42,500,000
10,000,000
Total
-
8,456,563
42,500,000
-
(1,964,686)
48,991,877
16,491,877
*Due to R Enconniere and J Kaminsky retirement from the Board (31 January 2019 and 31 March 2019 respectively) they are not considered a Key
Management Person from this date and their shareholdings are therefore not included in the balance for 30 June 2019.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 16
Executives
There were no executives other than Craig Riley at balance date.
7.
Five Year Summary of Key Financial Data
The earnings of the company for the five years to 30 June 2020 are summarised below:
2020
$
2019
$
2018
$
2017
$
2016
$
Revenue and other income
52,846
5,628
35,538
43,327
178,027
Net profit / (loss) before tax
(956,975)
(875,505)
(1,047,836)
(924,782)
(725,485)
Net profit / (loss) after tax
(956,975)
(875,505)
(1,047,836)
(924,782)
(725,485)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2020
2019
2018
2017
2016
Share price beginning financial year ($)
0.003
0.011
0.022
0.019
0.200
Share price end financial year ($)
0.007
0.003
0.011
0.022
0.015
Basic loss per share (cents per share)
(0.07)
(0.08)
(0.11)
(0.10)
(0.09)
End of audited remuneration report.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 17
8.
Other Matters
Shares issued under option and unissued shares under option
163,089 options were exercised during the period. As at 30 June 2020 the breakdown of options – both listed and unlisted at balance
date are listed below.
Total Listed Options
Listed Options
Unlisted Options
Employee Options
(exercisable at 2.95 cents by 25 September 2020)
Employee Options
(exercisable at 0.65 cents by 31 August 2021)
Employee Options, performance based vesting conditions
(exercisable at 0.80 cents by 31 July 2020)
Employee Options, performance based vesting conditions
(exercisable at 1.10 cents by 31 December 2023)
No.
-
No.
%'age
-
%'age
1,500,000
2.03%
20,000,000
27.03%
15,000,000
20.27%
15,000,000
20.27%
Employee Options, performance based vesting conditions
(exercisable at 0.65 cents by 31 August 2021)
7,500,000
10.14%
Employee Options, performance based vesting conditions
(exercisable at 0.65 cents by 31 August 2021)
15,000,000
20.27%
Total Unlisted Options
74,000,000
100.00%
Indemnifying Officers
The Company maintains a Directors and Officers insurance policy. In accordance with commercial practice, the insurance policy prohibits
disclosure of the terms of the policy, including the nature of the liability insured against and the amount of the premium.
The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an Officer or auditor of the Company
or any related body corporate against a liability incurred as such an Officer or auditor.
Directors and Officers covered by the Directors & Officers Liability Insurance Policy at the time of this report are:
Mr Ian McCubbing
Mr Andrew Greville
Mr Andrew Knox
Mr Craig Riley
Ms Melanie Leydin
Indemnity and Insurance of Auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the company or
any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company or any related
entity.
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the financial year.
Auditor
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 18
Auditor’s Independence
Declaration
The auditor independence declaration required under Section 307C of the Corporations Act 2001 forms part of this Directors’ Report and
is included on page 20.
Non-Audit Services
RSM Australia Partners provided non-audit services during the financial year with the provision of taxation advice relating to the Earn-in
Agreement entered into during the financial year.
Signed in accordance with a resolution of the Board of Directors.
Chairman
Dated this
Ian McCubbing
30th day of September 2020
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 19
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 20
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Revenue from continuing operations
Expenses:
Employee benefits expense
Non-executive directors’ fees
Share based payments
Professional costs
Occupancy costs
Travel costs
Marketing expense
Depreciation
Insurance
Share registry and listing expenses
Profit/(Loss) on disposal of plant and equipment
Other administration expenses
Loss before income tax
Income tax benefit
Loss after income tax
Other comprehensive income
Total comprehensive loss for the year
Loss per share for the year attributable to the members of Rimfire
Pacific Mining NL
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Consolidated Entity
Note
2020
$
2019
$
3
52,846
5,628
(352,786)
(111,366)
(86,791)
(128,805)
(33,149)
(430)
(82,393)
(40,525)
(8,453)
(55,969)
3,248
(111,402)
(956,975)
-
(956,975)
-
(956,975)
(281,258)
(133,333)
(19,273)
(71,636)
(38,429)
(2,041)
(84,110)
(36,450)
(12,430)
(64,873)
(3,683)
(133,617)
(875,505)
-
(875,505)
-
(875,505)
(0.07)
(0.07)
(0.08)
(0.09)
4
5
6
8
8
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 21
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Consolidated Entity
Note
2020
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Property, plant and equipment
Right of use assets
Exploration & evaluation costs
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Contract liability
Lease liability
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
Lease liability
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
9
10
12
10
11
11
13
14
16
15
20c
16
20c
17
310,794
633,931
5,036
949,761
170,000
340,394
20,479
13,904,467
14,435,340
15,385,101
361,519
60,996
527,273
11,509
961,297
6,960
9,227
16,187
977,484
14,407,617
32,575,943
110,702
(18,279,028)
14,407,617
2019
$
95,706
45,134
6,150
146,990
160,000
413,589
-
13,313,247
13,886,836
14,033,826
210,934
39,226
-
-
250,160
2,812
-
2,812
252,972
13,780,854
31,078,996
23,911
(17,322,053)
13,780,854
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 22
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Balance at 1 July 2019
Issued capital
Capital raising costs
Share-based payments
Total comprehensive loss for the period
Balance at 30 June 2020
Balance at 1 July 2018
Issued capital
Capital raising costs
Share-based payments
Total comprehensive loss for the period
Balance at 30 June 2019
Contributed
equity
$
Share based
payment Reserve
$
Accumulated
losses
$
Total
$
31,078,996
1,598,282
(101,335)
-
-
32,575,943
30,060,432
1,150,332
(131,768)
-
-
31,078,996
23,911
-
-
86,791
-
110,702
4,638
-
-
19,273
-
23,911
(17,322,053)
-
-
-
(956,975)
(18,279,028)
(16,446,548)
-
-
-
(875,505)
(17,322,053)
13,780,854
1,598,282
(101,335)
86,791
(956,975)
14,407,617
13,618,522
1,150,332
(131,768)
19,273
(875,505)
13,780,854
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 23
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Consolidated Entity
Note
2020
$
2019
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(718,370)
(741,417)
Interest received
Government grants and tax incentives
Interest on lease liability
2,846
50,000
(367)
6,707
-
-
Net cash used in operating activities
25a
(665,891)
(734,710)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Payment for exploration and evaluation costs
Reimbursement of expenditure
Proceeds from sale of property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Transaction costs associated with share issues
Principal repayments of lease liability
Net cash provided by financing activities
Net decrease in cash held
Cash at beginning of the year
Cash at end of the year
(1,403)
(690,357)
72,727
6,100
(1,788)
(1,074,436)
3,200
(612,933)
(1,073,024)
1,592,282
(95,334)
(3,036)
1,493,912
1,127,765
(117,922)
-
1,009,843
215,088
(797,891)
95,706
893,597
25b
9
310,794
95,706
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 24
Note 1
General Information
Rimfire Pacific Mining NL (the Company) is a Company limited by shares incorporated and registered in Australia. The address of the Company’s
registered office is shown on page 57.
The principal activities of the Company and the nature of the Company’s operations are explained on page 9.
The functional currency and presentation currency of Rimfire Pacific Mining NL is Australian dollars.
Note 2
Statement of significant accounting policies
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting
Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Rimfire Pacific Mining NL is a profit orientated entity for the purpose of the financial report.
The financial report covers the economic entity of Rimfire Pacific Mining NL and its controlled entity. Rimfire Pacific Mining NL is a listed public company,
incorporated and domiciled in Australia.
The principal activities of the Consolidated entity during the financial year were the exploration and development of economic mineral deposits.
The financial report of Rimfire Pacific Mining NL and its controlled entity, complies with International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board.
The following is a summary of the material accounting policies adopted by the economic entity in the preparation of the financial report. The accounting
policies have been consistently applied, unless otherwise stated.
The financial report was authorised for issue by Directors on the date of signing the Directors’ Declaration.
The financial report is presented in Australian dollars, has been prepared on an accruals basis and is based on historical costs.
Accounting Policies
a.
Significant Judgements and Key Assumptions
Judgements made in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements concern
the information regarding capitalised exploration expenditure for exploration and mining licences. In particular, the judgement that there is insufficient
information available to make a reasonable assessment of the existence or otherwise of economically recoverable reserves.
b.
Going Concern
The consolidated entity incurred an operating loss of $956,975 and had cash outflows from operating activities of $665,891 for the year ended 30
June 2020. The ability of the consolidated entity to continue as a going concern is dependent upon a number of factors, one being the continuance
and availability of funds.
After the Balance Date the consolidated entity has received $2,100,000 from a share placement and has also received $580,000 relating to the
outstanding balance of the Administration Fee, and the initial first quarter work program budget cash call in relation to the Earn-in Agreement.
Based on these receipts of $2,680,000 after the Balance Date, the directors believe the entity will continue as a going concern and that it is appropriate
to adopt that basis of accounting in the preparation of the financial report.
Parent Entity Information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary
information about the parent entity is disclosed in note 19.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 25
c.
Principles of Consolidation
The Consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Rimfire Pacific Mining NL as at 30 June 2020 and
the results of all subsidiaries for the year then ended. Rimfire Pacific Mining NL and its subsidiaries together are referred to in these financial
statements as the 'Consolidated entity'.
Subsidiaries are all those entities over which the Consolidated entity has control. The Consolidated entity controls an entity when the Consolidated
entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
to direct the activities of the entity. Subsidiaries are fully Consolidated from the date on which control is transferred to the Consolidated entity. They
are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated entity are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the policies adopted by the Consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of
control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the
non-controlling interest acquired is recognised directly in equity attributable to the parent.
Where the Consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest
in the subsidiary together with any cumulative translation differences recognised in equity. The Consolidated entity recognises the fair value of the
consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.
d.
Income Tax
The charge for current income tax expense is based on the profit 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 balance sheet 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 the taxable profit or loss.
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 economic entity will derive sufficient future assessable income to enable the benefit to be
realised and comply with the conditions of deductibility imposed by the law.
Rimfire Pacific Mining NL and its wholly-owned Australian subsidiary have not formed an income tax Consolidated group under the tax consolidation
regime.
e.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.
Property
Freehold land and buildings are measured on the cost basis, being the amounts which have been paid for the asset.
Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is calculated on a reducing balance basis to write off the net cost of each item of plant and equipment over its expected useful life
commencing from the time the asset is ready for use.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on
disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in profit or loss.
Depreciation
The depreciable amount of property, plant and equipment, but excluding freehold land, is depreciated using a reducing balance method commencing
from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease
or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Leasehold improvements
Plant and equipment
Office furniture
Motor Vehicles
15%
7.5% - 30%
10% - 40%
20%
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 26
f.
Leases
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset as property,
plant and equipment and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases
(defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office
furniture and telephones). For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term
of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the
rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
•
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
•
•
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The amount expected to be payable by the lessee under residual value guarantees;
The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
The lease liability is presented as a separate line in the statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method)
and by reducing the carrying amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day,
less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment
losses.
The right-of-use assets are presented as ‘Property, Plant and Equipment’ in the statement of financial position.
The Company applies AASB 136 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in
the ‘Property, Plant and Equipment’ policy (as outlined in the financial report for the annual reporting period).
Variable rents that do not depend on an index or rate are not included in the measurement the lease liability and the right-of-use asset. The related
payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in the line
“Occupancy costs” in the profit or loss.
g.
Exploration Evaluation and Development Expenditure
Exploration and evaluation expenditure incurred is capitalised at cost and includes acquisition of rights to explore, studies, exploratory drilling,
sampling and associated activities. Costs are accumulated in respect of each identifiable area of interest. General and administrative expenditures are
only included in the measurement of exploration and evaluation costs where they relate directly to operational activities’ particular area of interest.
These costs are only carried forward where activities in the area have not yet reached a stage which permits reasonable assessment of the existence
of economically recoverable reserves and the following conditions are satisfied:
(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a)
the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of
interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not, at the 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 in relation to,
the area of interest are continuing.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are reclassified to development and amortised over the life of
the area according to the rate of depletion of the economically recoverable reserves.
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.
h.
Restoration, Rehabilitation, and Environmental Costs
The Company has provided an environmental bond to the NSW Department of Planning and Environment in the form of a bank guarantee, included
in trade and other receivables ($170,000). The ultimate recoupment of this environmental bond is dependent on the completion, to the satisfaction
of the Department of rehabilitation of the relevant site. The environmental bond reflects the estimated cost to rehabilitate planned exploration activity
over the tenements. The Company policy is to continuously rehabilitate areas that have been affected by exploration activity when the activity has
been completed.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 27
i.
j.
Impairment of Assets
At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that
those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs
to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed
to the Profit or Loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of cash-generating
unit to which the asset belongs.
Employee Benefits
Provision is made for the Company's liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits
expected to be wholly settled within one year including entitlements arising from wages and salaries and annual leave, have been measured at the
amounts expected to be paid when the liability is settled plus related on-costs. Other employee benefits payable later than one year have been
measured at the present value of the estimated future cash outflows to be made for those benefits. Contributions are made by the Consolidated
entity to employee superannuation funds and are charged as expenses when incurred.
k.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset
is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All
other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for
the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement
of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
l.
Cash and Cash Equivalents
Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with
an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment
purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
For the purpose of the Consolidated Statement of Cash Flows, cash includes cash on hand and deposits with banks or financial institutions net of
bank overdrafts.
m.
n.
Trade and Other Receivables
Trade receivables and other receivables are recorded at amounts due less any allowance for expected credit losses.
Trade and Other Payables
Trade payables and other payables are recognised when the Consolidated entity becomes obliged to make future payments resulting from the
purchase of goods and services. Payments are normally settled on 30 day terms.
o.
Contract liabilities
Contract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer and are recognised when a customer
pays consideration, or when the consolidated entity recognises a receivable to reflect its unconditional right to consideration (whichever is earlier)
before the consolidated entity has transferred the goods or services to the customer.
p.
Financial Assets and Liabilities
Recognition
AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new
rules for hedge accounting and new impairment model for financial assets.
The Company has adopted AASB 9 from 01 July 2018, which have resulted in no material change to the accounts.
Financial Assets and Liabilities
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 28
Fair Value Hierarchy
The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level 1 input that
is significant to the entire fair value measurement, being:
Level 1 - Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 - Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or
indirectly
Level 3 - Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation
techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable,
the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included
in Level 3. The Company would change the categorisation within the fair value hierarchy only in the following circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Company recognises transfers between levels of the fair value hierarchy (i.e. transfers into and out
of each level of the fair value hierarchy) on the date the event or change in circumstances occurred.
Derecognition
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the asset and
an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration
received and receivable is recognised in profit or loss. On derecognition of an investment in equity instrument which the Company has elected on
initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified
to profit or loss, but is transferred to retained earnings.
The company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. The
difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit and or
loss.
Impairment
The Company recognises a loss allowance for expected credit losses (ECL) on financial assets that are measured at amortised cost or at fair value
through other comprehensive income (FVTOCI). The amount of expected credit losses is updated at each reporting date to reflect changes in credit
risk since initial recognition of the respective financial instrument.
The Company always recognises lifetime ECL for trade receivables. The expected credit losses on these financial assets are estimated using a
provision matrix based on the Company’s historical credit loss experience, adjusted
for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of
conditions at the reporting date, including time value of money where appropriate.
For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since initial
recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures
the loss allowance for that financial instrument at an amount equal to 12-month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In
contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible
within 12 months after the reporting date.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 29
q.
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised
as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Profit or Loss net
of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is recognised as a finance cost.
r.
Income Recognition
Interest Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Government Grants
The Company recognises stimulus package from the Australian Taxation Office (“ATO”) as a government grant when there is reasonable assurance that
the entity will comply with the conditions attached to them, and the grant will be received. The amount is recognised as other income in profit or loss.
All revenue is stated net of the amount of goods and services tax (GST).
s.
t.
u.
v.
w.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the
Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables in the Consolidated Statement of Financial Position are shown inclusive of GST.
Earnings Per Share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Rimfire Pacific Mining NL, 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 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.
Segment Reporting
Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports
provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and
assessing their performance. Rimfire Pacific Mining NL does not have any separately reportable segments.
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.
Equity Settled Compensation
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees or contractors in exchange for the rendering
of services. Equity-settled share-based compensation benefits have been provided to employees in the current financial year.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using Black-Scholes option
pricing 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 Consolidated entity receives the services that entitle the employees or contractors to receive payment.
No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative
charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest
and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each
reporting date less amounts already recognised in previous periods.
x.
Adoption of New and revised Standards
The Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are
relevant to their operations and are effective for the current financial reporting period, being the year end 30 June 2020. New and revised standards
and amendments thereof and interpretations effective for the current reporting period that are relevant to the Company include:
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 30
•
AASB 16 – Leases (‘AASB 16’)
Effect of adoption of AASB 16 Leases
Impact of Adoption:
The Company adopted AASB 16 with effect from 1 July 2019, using the “cumulative catch-up” approach, therefore has not restated comparatives, as
permitted under transition provisions of the standard. Any reclassifications and adjustments arising from the adoption of the standard will be
recognised in the opening accumulates losses on 1 July 2019. There was no impact to opening accumulated losses on date of adoption of this new
standard as existing leases were short-term leases exempted under this standard.
The Company has adopted the following incremental borrowing rates for discounting depending on the lease term and the nature of the underlying
asset.
Commercial building lease
2 years at 5%.
In transitioning the Company has applied the following practical expedients in AASB 16:
•
•
•
A single discount rate has been used for leases with similar lease terms for similar underlying assets in a similar economic environment; and
Initial direct costs have been excluded from measurement of the right-of-use assets at the date of initial application.
Accounting for leases with a remaining term of 12 months as at 1 July 2019 as short term leases.
In line with the definition of incremental borrowing rate in AASB 16, the interest rate used by the Company for the calculations is 5% corresponding
to the respective lease terms and based on information obtained from websites of various banks in Australia.
Leases accounting policy:
The new accounting policy of the Company entity on adoption of AASB 16 is detailed under "Leases".
Standards and Interpretations issued but not yet effective
Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by
the Company for the year ending 30 June 2020. Management has reviewed the likely impact of the adoption of these standards and interpretations
on the Company. The Company believes that the impact of the new standards and interpretations will not have an impact:
AASB 2018-6: Amendments to Australian Accounting Standards – Definition of a Business (applicable to annual reporting periods beginning on or
after 1 January 2020).
AASB 2018-7: Amendments to Australian Accounting Standards – Definition of Material (applicable to annual reporting periods beginning on or after
1 January 2020).
AASB 2019-3: Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform (applicable to annual reporting periods beginning
on or after 1 January 2020).
AASB 2019-5: Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia
(applicable to annual reporting periods beginning on or after 1 January 2020)
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current liabilities (applicable to
annual reporting periods beginning on or after 1 January 2022)
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and Other Amendments (applicable to annual
reporting periods beginning on or after 1 January 2022 with earlier application permitted)
AASB 2020-4: Amendments to Australian Accounting Standards – Covid-19 Related Rent Concessions (applicable to annual reporting periods
beginning on or after 1 June 2020 with earlier application permitted)
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 31
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts
in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities,
revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors,
including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and
estimates will seldom equal the related actual results. 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.
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. Other than as addressed in specific notes, there does not currently appear to be
either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the
consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Share-based payment transactions
The consolidated entity 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 using either the Binomial or Black-Scholes model taking into account the terms
and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and
equity. Refer to note 67 for further information.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 32
Note 3
Income
Other income
Interest
ATO stimulus package
Sundry income
Total Revenue
Note 4
Depreciation
Depreciation
Depreciation
Amortisation of right of use asset
Total Revenue
Note 5
Loss for the Financial Year
The net loss for the financial year has been arrived at after charging the
following:
Expenses
Employee benefits expense and share based payments
Marketing expense
Non-executive directors’ fees
Rental expense
Payments for lease liabilities
Interest of lease liabilities
Depreciation
Consolidated Entity
2019
$
2020
$
489
50,000
2,358
52,846
5,628
-
-
5,628
Consolidated Entity
2019
$
2020
$
37,599
2,926
40,525
36,450
-
36,450
Consolidated Entity
2019
$
2020
$
439,577
82,393
111,366
-
21,886
367
40,525
300,531
84,110
133,333
25,845
-
-
36,450
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 33
Note 6
Income Tax Expense
a.
The prima facie tax expense/(benefit) on loss before tax is reconciled to
the income tax as follows:
Prima facie tax expense/(benefit) on loss before tax at 27.5% (2019:
30%)
Add:
Tax effect of:
Consolidated Entity
2019
$
2020
$
(263,168)
(262,652)
- non-allowable items
- net current year tax losses not recognised, temporary differences
,
and deductible exploration expenditure.
-
-
274,603
299,439
Less:
Tax effect of:
-
Income tax benefit/(expense) attributable to loss
capitalised share placement costs
Deferred tax assets arising from tax losses that have not been
recognised:
Tax losses carried forward
Temporary differences – exploration costs
Temporary differences – other
Net Deferred tax asset not recognized
(11,435)
-
(36,787)
-
6,419,794
(3,823,728)
107,254
2,703,319
6,945,295
(3,993,974)
115,514
3,066,835
Balance of franking account at year end
-
-
Potential deferred tax assets attributable to tax losses carried forward and temporary differences have not been brought to account because Directors
do not believe realisation of the deferred tax assets is probable. These benefits will only be obtained if:
(a)
(b)
(c)
the company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deduction for the loss
to be realised;
the company continue to comply with the conditions for deductibility imposed by law, and
no changes in tax legislation adversely affect the company in realizing the benefit from the deductibility for the loss.
Rimfire Pacific Mining NL and its wholly owned entity have not opted to enter the tax consolidation regime as at 30 June 2020.
Note 7
Auditor’s Remuneration
Remuneration of the auditor for:
- auditing or reviewing the financial reports
- other services
Consolidated Entity
2020
$
2019
$
31,500
7,500
39,000
40,465
-
40,465
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 34
Note 8
Earnings per Share
a.
Reconciliation of Earnings to Loss
Loss used in the calculation of basic EPS
Loss used in the calculation of dilutive EPS
Consolidated Entity
2020
$
2019
$
(956,975)
(875,505)
(956,975)
(875,505)
b. Weighted average number of ordinary shares outstanding during the year
used in calculation of basic EPS
1,584,571,527
1,024,361,022
Potential ordinary shares
-
-
Weighted average number of ordinary shares outstanding during the year
used in calculation of dilutive EPS
1,446,104,583
1,024,361,022
c.
Classification of securities
Share options are anti-dilutive and securities have not been classed as potential
ordinary shares and are not included in the determination of dilutive EPS.
d.
Ordinary shares issued between reporting date and time of completion of the
financial report
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Ordinary shares
-
-
(0.07)
(0.07)
-
-
(0.08)
(0.09)
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of
and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of
authorised capital.
Note 9
Cash and Cash Equivalents
Cash at the end of the financial year as shown in the Consolidated Statement of Cash Flows is reconciled to items in the Consolidated Statement of
Financial Position as follows:
Cash at bank and on hand
Refer to Note 26 for the risk exposure analysis for cash and cash equivalents.
Consolidated Entity
2020
$
310,794
310,794
2019
$
95,706
95,706
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 35
Note 10
Trade and Other Receivables
OTHER RECEIVABLES
CURRENT
Security deposits
Other receivables
Golden Plains Resources Earn-in Agreement
NON-CURRENT
Security deposits
TOTAL
Consolidated Entity
2020
$
6,388
47,543
580,000
633,931
2019
$
13,049
32,085
-
45,134
170,000
160,000
170,000
205,134
Refer to Note 26 for the risk exposure analysis for receivables. At the reporting date, no receivables were past due or impaired.
Security deposits of $50,000 are held in support of a bank guarantee issued in favour of the NSW Department of Planning and Environment, with the
remaining $120,000 being held directly with the NSW Department of Planning and Environment.
Other receivables includes funds invoiced but yet to be paid by Golden Plains Resources for the Earn-in Agreement. Payment of outstanding invoices is
expected during the first quarter of the 2021 financial year. The Company has reserved its rights concerning these matters.
Note 11
Property, Plant and Equipment
PROPERTY
Freehold land
At cost
Total Land
PLANT AND EQUIPMENT
Plant and equipment
At cost
Accumulated depreciation
Motor vehicle
At cost
Accumulated depreciation
Office furniture
At cost
Accumulated depreciation
Right of use asset
At cost
Accumulated amortisation
Leasehold improvements
At cost
Accumulated depreciation
Total Plant and Equipment
Total Property, Plant and Equipment
Consolidated Entity
2020
$
2019
$
226,834
226,834
226,834
226,834
491,031
(397,466)
93,565
491,031
(340,647)
150,384
25,527
(10,657)
14,870
103,677
(98,553)
5,124
23,405
(2,926)
20,479
419
(419)
-
51,437
(27,217)
24,220
102,402
(90,250)
12,152
-
-
-
419
(419)
-
134,040
186,756
360,873
413,590
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 36
Movements in Carrying Amounts
Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.
2020
Consolidated
Entity:
Balance at the
beginning of year
Additions
Disposals
Depreciation
expense
Depreciation
capitalised
Carrying amount
at the end of year
2019
Consolidated
Entity:
Balance at the
beginning of year
Additions
Disposals
Depreciation
expense
Depreciation
capitalised
Carrying amount
at the end of year
Freehold
Land
$
Motor
Vehicles
$
Plant and
Equipment
$
Office
Furniture
$
Right of use
asset
$
Leasehold
Improvements
$
TOTAL
$
226,834
24,220
150,384
-
(5,540)
(3,809)
-
-
(25,487)
-
-
-
-
-
(31,332)
-
12,151
1,275
-
(8,302)
-
23,405
-
(2,926)
-
226,834
14,871
93,565
5,124
20,479
-
-
-
-
-
-
413,590
24,680
(5,540)
(40,525)
(31,332)
360,873
Freehold
Land
$
Motor
Vehicles
$
Plant and
Equipment
$
Office
Furniture
$
Right of use
asset
$
Leasehold
Improvements
$
TOTAL
$
226,834
43,105
189,043
19,188
-
-
-
-
-
(6,883)
1,624
-
-
-
(12,002)
(17,317)
(7,037)
-
(22,965)
-
226,834
24,220
150,384
12,151
-
-
-
-
-
-
94
-
(94)
-
-
478,264
1,624
(6,883)
(36,450)
(22,965)
413,590
Note 12
Prepayments
CURRENT
Prepaid expenses (insurance, rent, body corporate)
Note 13
Exploration and Evaluation Expenditure
NON-CURRENT
Exploration Expenditure
Consolidated Entity
2019
$
6,150
6,150
2020
$
5,036
5,036
2020
$
2019
$
Costs carried forward in respect of areas of interest in:
– exploration and evaluation phases
13,904,469
13,313,247
Opening balance
Additional expenditure
Reimbursed exploration expenditure
Closing balance
13,313,247
591,220
-
13,904,467
13,312,777
1,000,470
-
13,313,247
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 37
Note 14
Trade and Other Payables
CURRENT
Trade creditors
Directors and Management accrued salaries and fees
Sundry creditors and accrued expenses
GST Collected
Note 15
Contract Liabilities
Amounts related to Golden Plains Resources Earn-in Agreement
Total contract liabilities
Current
Non-current
Note 16
Provisions
CURRENT
Employee benefits
NON-CURRENT
Employee benefits
Note 17 Contributed Equity
1,584,571,527 (2019: 1,069,618,073 ) fully paid ordinary shares
a.
Ordinary shares
Contributed equity
At the beginning of the reporting period
Net shares and costs relating to shares issued during the
year
24 July 2019
2 August 2019
6 September 2019
18 October 2019
8 January 2020
17 April 2020
30 April 2020
19 May 2020
Transaction costs relating to issues
At reporting date
Consolidated Entity
2019
$
2020
$
105,416
125,866
77,509
52,728
361,519
75,059
86,047
49,828
210,934
Consolidated Entity
2019
$
2020
$
527,273
527,273
527,273
-
-
-
-
-
Consolidated Entity
2019
$
2020
$
60,996
60,996
39,226
39,226
6,960
2,812
2020
$
32,575,943
32,575,943
Consolidated Entity
2019
$
31,078,996
31,078,996
31,078,996
30,060,432
443,621
279,000
134,000
500,000
100
55
1,506
240,000
(101,335)
32,575,943
1,018,564
-
-
-
-
-
-
-
-
-
31,078,996
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 38
Shares outstanding
At the beginning of reporting period
Total Shares issued during year
24 July 2019
2 August 2019
6 September 2019
18 October 2019
8 January 2020
17 April 2020
30 April 2020
19 May 2020
At reporting date
b.
Capital Management
2020
Units
2019
Units
1,069,618,073
147,873,698
93,000,000
42,666,667
156,250,000
9,946
2,500
150,643
75,000,000
1,584,571,527
943,477,555
126,140,518
-
-
-
-
-
-
-
-
1,069,618,073
Management controls the capital of the Consolidated entity in order to ensure that the Company remains a going concern as a primary objective and is
able to deliver suitable exploration, as the circumstances allow. This is done, to the best of Management’s ability in the prevailing business and economic
circumstances.
The Consolidated entity is not subject to any externally imposed capital requirements.
c. Share based payments & options
Reserves
Share based payments
Consolidated Entity
2019
$
2020
$
110,702
23,911
Grant date
Expiry date
Exercise
Balance at
Granted
Exercised
price
start of the
year
24 September 2017
25 September 2020
$0.0295
1,500,000
-
30 April 2019
Various**
Various**
-
72,500,00
-
-
*Employee options attributable to employees who have forfeited their options by leaving the company.
Expired/
Balance at 30
Forfeited/
June 2020
Other *
-
-
1,500,000
72,500,000
** Various Tranches granted during FY2019, vesting conditions, exercise prices and volume of each tranche detailed in the next table.
The fair value of the options is estimated at the date of grant using the Black-Scholes model, taking into account the terms and conditions upon which the
options were granted.
For the options granted during the previous financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows:
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 39
Tranche and Vesting
Grant date
Expiry date
Share
Exercise
Expected
Dividend
Condition
price at
price
volatility
yield
grant date
30/04/2019
31/08/2021
$0.005
$0.0065
100%
30/04/2019
31/07/2020
$0.005
$0.008
100%
30/04/2019
31/12/2023
$0.005
$0.011
100%
30/04/2019
31/08/2021
$0.005
$0.0065
100%
-
-
-
-
Fair value at
No.
grant date $
Options
Risk-
free
interest
rate
1.18%
$54,637
20.0m
1.14%
$24,830
15.0m
1.43%
$49,277
15.0m
1.18%
$20,489
7.5m
FY2019 Tranche 1, vesting
at the date of grant
FY2019 Tranche 2, vesting
upon achieving a Board
approved financing deal to
facilitate mining at Sorpresa
FY2019 Tranche 3, vesting
upon production (First Ore)
at Sorpresa to a Board
approved work plan
FY2019 Tranche 4, vesting
upon delivery of a JV or
farm-in arrangement to a
Board approved level
FY2019 Tranche 5, vesting
upon drilling of a prospect
resulting in identification of
>500koz of Au equivalent
Inferred Resource (JORC
2012)
30/04/2019
31/08/2021
$0.005
$0.0065
100%
-
1.18%
$40,798
15.0m
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees as an additional incentive to recognise their contribution to the success of the
company and persistence to deliver ongoing results.
Equity-settled transactions are awards of shares, or options over shares that are provided to employees in exchange for the rendering of services.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using the Black-Scholes option pricing
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 the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge
to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired
portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts
already recognised in previous periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective
of whether or not that market condition has been met provided all other conditions are satisfied.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is
not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the
remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a
new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 40
Note 18
Controlled Entity
Parent Entity
Rimfire Pacific Mining NL
Subsidiary of Rimfire Pacific Mining NL
Axis Mining NL
Country of Incorporation
Percentage Owned (%)
2020
2019
Australia
100
100
Note 19
Parent Entity Information
Set out below is the supplementary information about the parent entity.
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital
Reserves
Accumulated losses
Total equity
Loss of the parent entity
Comprehensive loss of the parent entity
2020
$
949,534
15,384,874
959,797
975,984
32,575,943
110,702
(18,277,755)
14,408,890
(956,975)
(956,975)
2019
$
146,624
14,033,599
248,660
251,472
31,078,996
23,911
(17,20,780)
13,782,127
(875,505)
(875,505)
Parent Entity Commitments:
All capital and operating commitments of the group have been entered into by the Parent Entity. Refer to note 19 for these commitments. The accounting
policies of the parent entity are consistent with those of the Consolidated entity, as disclosed in note 1.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 41
Note 20
Commitments and Contingent Liabilities
a. Operating Lease Commitments
Office & Other Premises
Payable
-
-
not later than 1 year
later than 1 year but not later than 5 years
b. Capital Expenditure Commitments
The Consolidated entity is committed to capital expenditure
on its various exploration and mining licences and leases as
follows:
Payable
-
-
not later than 1 year
later than 1 year but not later than 5 years
Consolidated Entity
2020
$
2019
$
-
-
-
18,000
-
18,000
Consolidated Entity
2020
$
557,625
813,438
1,371,063
2019
$
428,667
439,974
868,640
c.
Lease liabilities
During the year, the Company signed a new two-year, lease agreement for office premises in Melbourne, Victoria with a commencement date of
19 March 2020. The lease agreement was accounted for under AASB 16 which resulted in the recognition of ‘right of use asset’ and ‘lease liability’
on the statement of financial position. Refer to Note 10 for the net book value of the ‘right of use asset’. The lease imposes a restriction that, the
right-of-use asset can only be used by the Company. The Company must keep the property in a good state of repair and return the property in
their original condition at the end of the lease. Further, the Company must insure items of fixed assets and incur maintenance fees on such items
in accordance with the lease agreement. Lease liability is presented in the statement of financial position as follows:
Lease liability - current
Lease liability - non current
2020
$
11,509
9,227
20,736
2019
$
-
-
-
Note 21
Contingent Liabilities and Contingent Assets
The Directors are not aware of any matters or circumstances which have arisen during or since the financial year which may significantly affect the
operations of the Consolidated entity, the results of those operations or state of affairs of the Consolidated entity in future years.
Note 22
Segment Reporting
Business and Geographical Segments
The Consolidated entity operates predominantly in one business and geographic segment, being mineral exploration and prospecting within Australia.
Segment information is presented using a “management approach”, (i.e. Segment information is provided on the same basis as information used for
internal reporting purposes by the board of directors). At regular intervals, the board is provided management information at a group level for the group’s
cash position, the carrying values of exploration permits and a group cash flow forecast for the next 12 months of operation. On this basis, no segment
information is included in these financial statements.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 42
Note 23
Key Management Personnel Disclosures
a) Details of Directors and Key Management Personnel
Directors
The follows persons were Directors of Rimfire Pacific Mining NL during the financial year:
Ian McCubbing (Chairman)
Craig Riley (Managing Director and CEO
Andrew Greville (Non-Executive Director)
Andrew Knox (Non-Executive Director)
b.
Key Management Personnel compensation
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Company’s
key management personnel for the year ended 30 June 2020. The totals of remuneration paid to Key Management Personnel of the company during
the year are as follows:
Short-term employee benefits - Paid
Short-term employee benefits - Accrued
Post-employment benefits
Long Term Benefits
Shares and Options
Note 24
Related Party Details
Transactions between related parties are on normal commercial terms and conditions
no more favourable than those available to other parties unless otherwise stated.
Transactions with director related parties:
(i)
In the current financial year related parties (WEMCO) of Mr Andrew Greville
were paid in respect of consulting services. Payment for these services
were on normal commercial terms
In the previous financial year related parties (Jill Kaminsky and Nicole
Kaminsky) of Mr John Kaminsky were paid in respect of administrative
services. Payment for these services were on normal commercial terms.
2020
$
167,742
118,366
15,384
-
2019
$
287,622
68,331
30,786
39,145
46,441
111,503
347,933
537,387
2020
$
2019
$
1,250
10,032
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 43
Note 25
Cash Flow Information
a.
Reconciliation of Cash Flow from Operations with Loss after
Income Tax
Loss after income tax
Non-cash flows in loss
Depreciation
Loss on disposal of PPE
Expense of share-based payment
Changes in assets and liabilities relating to operations
(Increase)/decrease in prepayments
(Increase)/decrease in other receivables
Increase/(decrease) in trade creditors and accruals
Increase/(decrease) in provisions
Cash flows used in operations
b.
Reconciliation of loss after tax to the net cash flows used in
financial activities.
Consolidated Entity
2020
$
2019
$
(956,975)
(875,505)
40,525
(3,248)
86,791
1,113
(215,771)
355,755
25,918
(665,891)
36,450
3,683
19,273
1,099
64,841
51,199
(35,750)
(734,710)
Balance at 1 July
2019
-
-
Financing
Cash flows
3,036
3,036
Non-cash
changes
17,700
17,700
Balance at
30 June 2020
20,736
20,736
Lease Liability
Total
c.
Non-cash Investing Activities
There were no non-cash investing activities carried out during the year.
Note 26 Financial Risk Management
a. Financial Risk Management Objectives and Policies
The Consolidated entity's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk and liquidity risk. The
Consolidated entity's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects
on the financial performance of the Consolidated entity. The Consolidated entity uses different methods to measure different types of risk to which it is
exposed. These methods include sensitivity analysis in the case of interest rate and other risks.
Risk management is carried out by senior executives under policies approved by the Board of Directors. These policies include identification and analysis of
the risk exposure of the Consolidated entity and appropriate procedures, controls and risk limits.
Market risk
Interest rate risk
The Consolidated entity's main interest rate risk arises from its holdings of cash and cash equivalents on deposit. Deposits held at variable rates expose the
Consolidated entity to interest rate risk. Deposits held at fixed rates expose the Consolidated entity to fair value risk. The Consolidated entity's exposure to
interest rate risk is set out in Note 23(b).
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Consolidated entity. The Consolidated
entity exposure to credit risk is limited to security deposits provided to landlords and other third parties. The maximum exposure to credit risk at the reporting
date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial
position and notes to the financial statements.
Liquidity risk
Vigilant liquidity risk management requires the Consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) to be able to pay
debts as and when they become due and payable.
The Consolidated entity manages liquidity risk by maintaining adequate cash reserves by continuously monitoring actual and forecast cash flows and matching
the maturity profiles of financial assets and liabilities.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 44
Categorisation of financial assets
Financial assets
Note
Category
Carrying value
2020
$
Carrying value
2019
$
Cash & cash equivalents
Trade and other receivables
7
8
Cash and other financial assets
Trade and other receivables at amortised cost
310,794
803,931
95,706
205,134
Financial liabilities
Trade and other payables
Lease liabilities
12
20c
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value
361,519
20,736
210,934
-
b.
Interest Rate Risk
The Consolidated entity's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market
interest rates on classes of financial assets and financial liabilities, is as follows:
Floating Interest Rate
$
Within One Year
$
Within One to Two
Years
$
Fixed Interest Rate
Maturing
Non-interest Bearing
$
Total
$
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
310,294
95,206
170,000
160,000
480,294
255,206
-
-
-
-
-
-
-
-
-
-
-
-
11,509
11,509
480,294
255,206
11,509
-
-
-
-
-
-
-
-
-
-
-
-
-
9,227
9,227
9,227
-
-
-
-
-
-
-
-
500
500
310,794
95,706
633,931
45,134
633,931
205,134
634,431
45,634
944,725
300,840
361,519
210,934
361,519
210,934
20,736
-
20,736
-
382,255
210,934
382,255
210,934
252,176
(165,300)
562,470
89,906
Financial Assets
Cash
Receivables
Total Financial Assets
Financial Liabilities
Trade and sundry creditors
Lease liabilities
Total Financial Liabilities
Net inflow/(outflow) on
financial assets
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 45
c.
Net Fair Values
The carrying amounts of financial assets and liabilities approximate the net fair value unless otherwise stated.
d.
Sensitivity Analysis
The group has performed a sensitivity analysis relating to its exposure to interest rate risk at reporting date. This sensitivity analysis demonstrates
the effect on the current year results and equity which could result from a change in these risks.
Interest Rate Sensitivity Analysis
At 30 June 2020, the effect on loss after tax and equity as a result of changes in the interest rate, with all other variables remaining constant would
be as follows:
Change in loss after tax
- Increase in interest rate by 0.5%
- Decrease in interest rate by 0.5%
Change in equity
- Increase in interest rate by 0.5%
- Decrease in interest rate by 0.5%
Consolidated Entity
2020
$
4,778
(4,778)
4,778
(4,778)
2019
$
1,276
(1,276)
1,276
(1,276)
The above changes are based on the effect of an interest rate change in relation to funds held in deposit with financial institutions. A change in
0.5% of the interest rate is deemed reasonable by management due to the current financial environment of low interest rates.
Note 27
Events Occurring after the Reporting Period
After the Balance Date the consolidated entity has received $2,100,000 from a share placement and it has also received the $580,000 relating to the outstanding
balance of the Administration Fee, and the initial first quarter work program budget cash call in relation to the Earn-in Agreement.
The Company has resolved to approve a Share Purchase Plan for $500,000 for shareholders on the same pricing as the subsequent capital raising.
Shareholders will have the right to take up shares to a maximum of $30,000.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact, positive or negative, after the
reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as
maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 46
Note 28 Shares issued under option and unissued shares under option
163,089 options were exercised during the period. As at 30 June 2020 the breakdown of options – both listed and unlisted at balance date are listed below.
Total Listed Options
Listed Options
Unlisted Options
Employee Options
(exercisable at 2.95 cents by 25 September 2020)
Employee Options
(exercisable at 0.65 cents by 31 August 2021)
Employee Options, performance based vesting conditions
(exercisable at 0.80 cents by 31 July 2020)
Employee Options, performance based vesting conditions
(exercisable at 1.10 cents by 31 December 2023)
No.
-
No.
1,500,000
%'age
-
%'age
2.03%
20,000,000
27.03%
15,000,000
20.27%
15,000,000
20.27%
Employee Options, performance based vesting conditions
(exercisable at 0.65 cents by 31 August 2021)
7,500,000
10.14%
Employee Options, performance based vesting conditions
(exercisable at 0.65 cents by 31 August 2021)
15,000,000
20.27%
Total Unlisted Options
74,000,000
100.00%
Note 29 Company Details
The registered office and principal place of business
of the Company is:
Rimfire Pacific Mining NL
St Kilda Rd Towers
Suite 142, 1 Queens Road
Melbourne VIC 3004
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 47
DIRECTORS’ DECLARATION
In the directors’ opinion:
1.
2.
3.
4.
5.
the attached financial statements and notes and the Remuneration Report thereto comply with the Corporations Act
2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
the attached financial statements and notes thereto comply with International Financial Reporting Standards as issued
by the International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes thereto give a true and fair view of the Consolidated entity's financial
position as at 30 June 2020 and of its performance for the financial year ended on that date;
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable; and
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5) of the Corporations Act 2001.
On behalf of the directors
Chairman
Ian McCubbing
Dated this
30th day of September 2020
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 48
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Additional Information
For Publicly Listed Companies
1. The shareholder information set out below was applicable as at 29 September 2020.
(a)
Distribution of Shareholders by Class – RIM Ordinary Shares
Category
(Size of Holding)
Total Holders
Fully Paid Ordinary
Shares
% of Issued
Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 over
182
154
159
817
997
53,749
510,689
1,360,462
38,045,902
1,712,600,725
0.00
0.03
0.08
2.17
97.72
Total
2,309
1,752,571,527
100.00
(b) Marketable Parcels
The number of Ordinary shareholders with shareholdings in less than marketable parcels was 900 holding 11,074,855 shares which is 0.00% of
Issued Capital as at 29 September 2020.
(c) The number of holders of each class of equity security as at 29 September 2020:
Class of Security
Number
Fully Paid Ordinary Shares
2,309
(d) Voting Rights
Every Member is entitled to be present at a meeting and may vote.
On a show of hands, every Member has one vote.
On a poll every Member has:
- one vote for each fully paid ordinary share; and
- voting rights pro-rata to the amount paid up on each partly paid share held by the Member.
There are no voting attached to unlisted options.
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Additional Information (Cont’d)
For Publicly Listed Companies
(e) 20 Largest Shareholders – RIM Ordinary Shares as at 29 September 2020
Name
Number of
Ordinary Fully
Paid Shares
Held
% Held of
Issued
Ordinary
Capital
1.
2.
3.
4.
5.
6.
7.
8.
9.
Booker Super Services Pty Ltd
Golden Plains Resources Pty Ltd
Resource Capital Limited
Mr Peng Wang
Citicorp Nominees Pty Limited
Cooee Investments Pty Ltd
Mr Choong Guang Koh
New Gold Fife Pty Ltd
Sutherland Family Company Pty Ltd
10.
HSBC Custody Nominees (Australia) Limited
11.
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd
12.
B David Nominees Pty Ltd
13.
14.
Helen Ma Pty Ltd
Mr Richard Thomas Hayward Daly + Mrs Sarah Kay Daly
15.
Yucaja Pty Ltd
16.
Reef Investments Pty Ltd
17.
Mr Graham Charles Hopgood + Mrs Robyn Lesley Hopgood
18.
Ralston Corporation Pty Ltd
19.
Mr Laurie John Newman
20.
Kookoo Nominees Pty Ltd
90,000,000
85,000,000
40,000,000
38,174,603
31,129,642
27,168,604
26,500,000
23,809,524
22,750,000
21,912,184
21,466,666
19,333,336
17,286,831
16,441,781
15,817,490
15,600,819
15,200,000
15,000,379
14,616,778
13,200,000
5.14
4.85
2.28
2.18
1.78
1.55
1.51
1.36
1.30
1.25
1.22
1.10
0.99
0.94
0.90
0.89
0.87
0.86
0.83
0.75
Top 20 holders of Fully Paid Ordinary Shares
570,408,637
32.55
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 53
Additional Information (Cont’d)
For Publicly Listed Companies
2.
The name of the Company Secretary is Melanie Leydin.
3.
The address and telephone number of the registered office and principal administrative office is:
Suite 142, 1 Queens Road
Melbourne VIC 3004
Telephone: 03 9620 5866
Website : www.rimfire.com.au
4.
The register of securities is held at the following address:
Computershare Registry Services
Yarra Falls
452 Johnston St
Abbotsford VIC 3067
Telephone: 1300 850 505 (within Australia)
Overseas: + 61 3 9415 5000
5.
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian Securities Exchange Limited.
6.
Vendor Securities
There are no restricted securities on issue as at 29 September 2020.
7.
Unissued shares under option
As at 29 September 2020 there were also 57,500,000 unissued shares under option at various prices and various vesting dates which are
detailed in this report and held by 2 option holders Both option holders hold over 100,001 unlisted options.
8.
Share Buy-Back
There is no current on-market share buy-back.
9.
Substantial Holders
Substantial holders in the company, as disclosed in the substantial holder notices given to the company at the time they provided the notice were
as follows;
-
-
Booker Super Services Pty Ltd , 90,000,000 shares, 5.70%
Golden Plains Resources Pty Ltd, 85,000,000 shares, 5.36%
10.
Annual General Meeting
Rimfire Pacific Mining NL advises that its Annual General Meeting will be held on Tuesday, 24 November 2020. The time and other details relating
to the meeting will be advised in the Notice of Meeting to be sent to all shareholders and released to ASX in due course. In accordance with the
ASX Listing Rules and the Company’s Constitution, the closing date for receipt of nominations for the position of Director are required to be lodged
at the registered office of the Company by 5.00pm (AEDT) on 13 October 2020.
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 54
Competent Persons Declaration
The information in the report to which this statement is attached that relates to Exploration and Resource Results is based on information reviewed and/or
compiled by Craig Riley who is deemed to be a Competent Person and is a Member of The Australasian Institute of Mining and Metallurgy.
Mr Riley has over 25 years’ experience in the mineral and mining industry. Mr Riley is employed by Rimfire Pacific Mining (RIM) and is an employee of
the Company. Craig Riley has sufficient experience that is relevant to the style of mineralisation and type of deposits 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’. Craig Riley consents to the inclusion of the matters based on the information in the form and context in which it appears.
Schedule of Exploration Licences and Mining Licences as at 30 June 2020
EL No.
Initial Grant Date
Location
Units
Next Renewal Due
EL5565
EL6241
EL7058
EL7959
EL8401
EL8542
EL8543
EL8935**
M(C)L305
24/03/1999
17/05/2004
01/02/2008
16/08/2012
22/10/2015
23/03/2017
27/03/2017
03/02/2020
18/11/2004
Fifield
Fifield
Fifield
Fifield
Fifield
Fifield
Fifield
Fifield
Fifield
4
15
35
7
100
32
1
40
1.9ha
24/03/2022
17/05/2021
01/02/2023
16/08/2023
22/10/2021
23/03/2023
27/03/2023
03/02/2023
17/11/2029
Greater Cowal Area
Mineral Focus
Platinum
Gold / Base Metals / Platinum
Gold / Base Metals / Platinum
Gold / Base Metals
Gold / Base Metals
Gold / Base Metals
Gold / Base Metals
Gold / Base Metals / Cobalt / Nickel / Scandium
Gold / Platinum / Silver
EL8804
EL8805
31/10/2018
East Cowal
31/10/2018
East Cowal
42
39
31/01/2021
31/01/2021
Gold / Base Metals
Gold / Base Metals
Broken Hill
EL5958*
24/06/2002
Broken Hill
27
24/06/2022
Base Metals / Cobalt
*10% free-carry to RIM, RIM holds the licence, Perilya responsible for Management and Minimum Expenditure
**EL8935 used to be EL5534 and M(C)L306, upon renewal all merged into one licence
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 55
Corporate Directory
Directors:
Ian McCubbing (Chairman)
Craig Riley (Managing Director & CEO)
Andrew Greville (Non-executive Director)
Andrew Knox (Non-executive Director)
Company Secretary:
Melanie Leydin
Registered Office and Principle Place of
Business:
Auditors:
Lawyers of the Company:
Share Registry:
Bankers:
Stock Exchange Listing:
Email Address:
Website Address:
Suite 142, 1 Queens Road
Melbourne VIC 3004
+61 3 9620 5866
RSM Australia Pty Ltd
Level 21, 55 Collins Street
Melbourne VIC 3000
Lennox Group Pty Ltd
8 Chapel St
Cremorne VIC 3121
Computershare Investor Services Pty Ltd
Yarra Falls
452 Johnston St
Abbotsford VIC 3067
Telephone: 1300 850 505 (within Australia)
Overseas: + 61 3 9415 5000
Westpac Banking Corporation
114 William Street
Melbourne VIC 3000
Australian Securities Exchange
Home Exchange – Melbourne
ASX Code: RIM
rimfire@rimfire.com.au
www.rimfire.com.au
Rimfire Pacific Mining NL – 2020 Annual Report to Shareholders | 56
www.rimfire.com.au