ACN 139 308 973
ANNUAL REPORT 2021
CORPORATE DIRECTORY/CONTENTS PAGE
CORPORATE DIRECTORY
Board of Directors
John Prineas ‐ Executive Chairman
John Dawson – Non‐Executive Director
Sarah Shipway ‐ Non‐Executive Director
Company Secretary
Sarah Shipway
Principal Office
Ground Floor
28 Ord Street
West Perth WA 6005
Registered Office
Ground Floor
28 Ord Street
West Perth WA 6005
Tel: + 61 8 6118 2118
Website: www.stgeorgemining.com.au
Email: info@stgeorgemining.com.au
Australian Business Number
ABN 21 139 308 973
Share Register
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
PERTH WA 6000
Tel: 1300 850 505
Int: +61 8 9323 2000
Fax: + 61 8 9323 2033
Stock Exchange Code
SGQ – Ordinary Shares
Auditors
Stantons
Bankers
Commonwealth Bank
CONTENTS
PAGE
Chairman’s Letter
Review of Operations
Directors’ Report
Consolidated Statement of Profit or
Loss and Other Comprehensive Income
Consolidated Statement
of Financial Position
Consolidated Statement
of Changes in Equity
Consolidated Statement
of Cash Flows
Notes to the Consolidated Financial Report
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
Shareholder Information
Schedule of Tenements
3
6
18
26
27
28
29
30
54
55
56
61
63
St George Mining Limited – Annual Report 2021
P 2
CHAIRMAN’S LETTER
“Sulphide mineralisation of the kind we have at Mt Alexander is incredibly rare – the combination of high‐
grade nickel, copper, cobalt and platinum group metals is simply not seen anywhere else in Western
Australia, or Australia for that matter.”
John Prineas, Executive Chairman
Photo: drill core
from STD014
showing massive
nickel‐copper
sulphides.
STD014 is one of the
metallurgical drill
holes completed in
2021 at the
Stricklands deposit.
St George Mining Limited – Annual Report 2021
P 3
CHAIRMAN’S LETTER
Dear Fellow Shareholders
On behalf of the Board, I am pleased to present the Annual Report of St George Mining Limited (ASX: SGQ)
for 2021 and update you on what has been an extremely busy and highly successful year for the Company.
The focus at our flagship high‐grade Mt Alexander Project, in Western Australia’s Goldfields region, was to
test the deeper extensions of the host‐intrusive unit at the Cathedrals Belt. All deeper holes completed in
2021 intersected intrusive rocks to provide us with strong encouragement as we continue the search for
deeper deposits of massive nickel‐copper sulphides.
Breakthrough success came with MAD199, which delivered the deepest and western most occurrence of
massive sulphides discovered to date – more than 11m of high‐grade mineralisation from 333.5m
downhole.
The significance of the discovery cannot be understated – it confirms that the large intrusive unit at the
Cathedrals Belt is fertile for nickel‐copper sulphides at depth and demonstrates the excellent potential to
discover further high‐grade mineralisation in other underexplored areas of the Cathedrals Belt.
With a large number of downhole electromagnetic conductors identified at depth, the likelihood of
further high‐grade mineralisation is high. We will continue our systematic drilling of the deeper targets
underpinned by our determination to expand the mineralised footprint at Mt Alexander. At the same
time, we are progressing the scoping study on a starter mine based on the small but high‐grade and near‐
surface Stricklands deposit.
During the year we also launched the maiden drill programme for our Paterson Project, in the Paterson
Province of Western Australia’s East Pilbara region. This region is one of Australia’s most exciting
exploration frontiers and St George’s presence there complements our focus on high‐quality, high‐grade
exploration opportunities.
Drilling at our Paterson Project has intersected prospective lithology and pathfinder elements for base
metals and gold mineralisation.
These early results are feeding our belief that our tenure has strong potential to host copper and gold
deposits similar to those already discovered in the Paterson – like at Rio Tinto’s Winu Project and the
Havieron Project being explored in joint venture by Greatland Gold and Newcrest Mining.
In line with St George’s focus on adding value for shareholders through high‐quality exploration, the
Company has secured two exploration licences about 150km east of Perth in Western Australia’s
Wheatbelt region. The tenure covers two unexplored belts that are interpreted to be splays off the
mobile belt that hosts the Moora‐Julimar‐Yarawindah area where Chalice Mining and other explorers
have recently made significant discoveries.
We have named this new greenfields venture the Broadview Project and will embark on a systematic
exploration programme to search for nickel‐copper‐PGEs as well as gold and copper mineralisation.
The Company’s very positive results in 2021 were against the challenging background of the ongoing COVID‐
19 pandemic. The professionalism of our team minimised the disruption to our business while prioritising
the health and safety of our employees, contractors and the communities in which we operate.
Despite the pandemic, the nickel price is continuing to rise with nickel demand from the EV market
accelerating and industry players scrambling to secure long‐term supplies of this key battery mineral.
St George Mining Limited – Annual Report 2021
P 4
CHAIRMAN’S LETTER
A dearth of exploration success across Australia ensures St George is well positioned to attract attention
from investors looking for exposure to significant new high‐grade nickel sulphide discoveries. Our Mt
Alexander Project, located in a Tier 1 mining jurisdiction and close to existing infrastructure, is one of only
a handful of high‐grade nickel sulphide discoveries and unique because it also contains copper, cobalt and
platinum group metals.
We look forward to another exciting year of exploration activities designed to add value for all shareholders.
On behalf of the Board of Directors, I thank our Shareholders for your continuing support.
John Prineas
Executive Chairman
Above: aerial photo of the accommodation and work camp at Mt Alexander
St George Mining Limited – Annual Report 2021
P 5
REVIEW OF OPERATIONS
Key highlights from operational activities for the year ending 30 June 2021 were the discovery of massive
nickel‐copper sulphides at depths not previously explored at Mt Alexander, and identification of
prospective lithology for copper and gold mineralisation in the inaugural drill programme for the new
Paterson Project.
MT ALEXANDER PROJECT
High‐grade nickel‐copper sulphides
More discoveries with deeper drilling:
In April 2021, the Company announced a significant milestone in exploration at Mt Alexander with the
intercept of more than 11m of nickel‐copper sulphides from 333.5m downhole in MAD199.
Laboratory assays confirmed the following high‐grade intersection:
Hole ID
From
MAD199 333.5
incl.
incl.
340.67
342.12
To
344.57
344.57
343.4
Interval Ni (%)
11.07
3.9
1.28
Cu (%)
0.71
1.8
2.96
Table 1 – laboratory assays for MAD199.
PGEs (g/t)
1.23
3.1
3.88
1.58
3.98
6.54
Au (ppm) Co (ppm)
0.09
0.234
0.26
593
1,445
2,298
The high‐grade intersection in MAD199 is the deepest occurrence of massive nickel‐copper sulphides
drilled in the Belt and also the western most occurrence.
This supports the prospectivity of unexplored and underexplored areas of the Cathedrals Belt for further
high‐grade mineralisation, particularly at depth and to the west of known mineralisation at Investigators.
The nickel‐copper sulphides in MAD199 are preserved, which indicates they may be associated with a
larger proximal body of mineralisation rather than having been remobilised from a very distant source.
Figure 1 – drill core from the massive sulphide interval of MAD199 between 342.12m to 343.4m
downhole.
MAD201 establishes 125m plunge extent of mineralisation from MAD199:
MAD201 is the first step‐out from the MAD199 discovery and intersected a 16m‐thick intrusive unit from
421.95m downhole with 2.4m of nickel‐copper sulphides from 434.6m downhole.
The mineralised interval in MAD201 is located 125m down‐plunge of the MAD199 discovery and confirms
that the fertile intrusive system continues for a considerable extent at depth.
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
‘Field of conductors’ points to potential for significant mineralisation:
The downhole electromagnetic (EM) survey in MAD201 identified three very strong conductors located up‐
dip towards the high‐grade intersection in MAD199. The conductors are modelled with conductivity of
120,400 Siemens, 30,000 Siemens and 23,000 Siemens, respectively.
The DHEM conductors are interpreted to have a massive sulphide source, strongly supporting the potential
for more massive nickel sulphides along the 125m down‐plunge extent between MAD199 and MAD201.
Several other EM conductors have been identified from the DHEM surveys completed in drill holes
proximal to MAD201 including:
MAD196 at Investigators – three off‐hole EM conductors identified, with the strongest having
conductivity of 69,926 Siemens
MAD200 at West End – three off‐hole EM conductors identified, with the largest having a strike
length of 250m
MAD202 at West End – very strong 81,000 Siemens conductor that is coincidental with a large
gravity and magnetic feature
The field of multiple EM conductors identified at West End and Investigators suggests that this area is a
very active part of the Cathedrals Belt mineral system, with potential for the conductors to be associated
with a greater volume of mineralisation along strike or down‐dip.
Further drilling is planned in calendar 2021 to test the DHEM conductors and investigate the continuity
of mineralisation at West End and Investigators.
Figure 2 – plan view map of West End and Investigators (against gravity data) showing the field of new
DHEM conductors as well as prior drilling. Gravity highs are shown by warmer colours (white, red and
yellow). High density massive sulphides and their host rocks will typically present as gravity highs. Less
dense material or cover are represented by cooler colours (blues and purples).
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
Petrographic Analysis Confirms Favourable Intrusive Rocks:
The strong exploration results at Mt Alexander are the culmination of a systematic programme of deeper
drilling concurrent with DHEM surveys that was launched in June 2020.
All drill holes in the programme intersected mafic‐ultramafic intrusive‐style rocks at depth – similar to
those that host the high‐grade massive nickel‐copper sulphides at the shallow deposits already
discovered at Stricklands, Cathedrals and Investigators.
The prospectivity for the discovery of further nickel sulphides at depth was further confirmed by
petrographic analysis completed on samples of drill core from some of the deeper drill holes.
The analysis of typically identified two main intrusive rocks – an upper leuconorite a basal mela‐olivine
gabbronorite. This is a suite of intrusive mafic and ultramafic rocks that is highly unusual in the Archean
central Yilgarn where Mt Alexander is located, and typically found in Proterozoic provinces.
Norite and gabbronorite are typically associated with a large igneous event – the kind of geological event
that is associated with the formation of very significant mineral deposits. In Western Australia,
gabbronorite is known to be associated with significant nickel sulphide deposits at IGO’s Nova Bollinger
(ASX: IGO), Panoramic’s Savannah (ASX: PAN) and Oz Mineral’s Nebo‐Babel (ASX: OZL).
Small amounts of zinc‐lead sulphides in addition to magmatic nickel‐copper sulphides were observed in
some samples, suggesting contamination with sedimentary sulphides or volcanic massive sulphides
(VMS) – which typically occurs if the sulphide mineralisation has a deep source.
Mineralisation sourced from magmatic plumbing at depth is indicative of a large mineral system with
potential to host significant volumes of mineralisation.
The findings of the petrographic analysis support the prospectivity of the Cathedrals Belt for the discovery
of larger nickel‐copper sulphide deposits at depth or in other parts of the project tenure.
Emerging regional targets for nickel‐copper sulphides:
Carnac Prospect – unexplored east‐northeast magnetic trend:
The high‐resolution magnetic survey completed at E29/1041 in Q1 2021 highlighted an east‐northeast trend
with a series of strong, linear magnetic features. The trend has the same orientation as the highly
mineralised Cathedrals Belt.
Anomalous values for nickel, copper and chromium were returned by a soil survey partly completed over
this trend, which extends for more than 8km.
The distribution of the anomalous soil values correlates to the shape of the strong linear magnetic trend
and supports the interpretation that the magnetic trend may represent a mafic intrusive unit similar to the
east‐northeast oriented Cathedrals Belt.
Drilling at the Carnac Prospect is planned for calendar 2021.
Exploration is also continuing at other regional targets including on E29/972 where a large bulls‐eye
magnetic anomaly may represent an intrusive unit; on E29/962 where highly anomalous soil samples
overlying ultramafic support the potential for mineralisation at depth; and on E29/548 where a number of
east‐northeast trends may represent repetitions of the Cathedrals Belt.
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
To the south of E29/1041 and
within E29/972, the new 2021
magnetic
survey data has
highlighted a large, very strong
magnetic feature with a north‐
northwest orientation and strike
length of approximately 800m
and a width of 250m.
The shape of the feature
is
unusual for the area and notably
different to the largely granitic
in the vicinity of the
rocks
anomaly. These features may
suggest the potential for an
intrusion of unknown origin.
Figure 3 – New magnetic data
image (1VD) for E29/1041 and
E29/972 with prospective
targets highlighted.
Excellent results from metallurgical test work:
Preliminary metallurgical test work has been completed by Strategic Metallurgy Pty Ltd in Perth on
samples of massive and disseminated mineralisation from drill hole MAD177 at the Investigators
Prospect.
The objective of this test work was to assess if nickel and copper could be recovered into separate
saleable concentrates by flotation process, and to determine the PGE deportment in the concentrates.
The results are very favourable and likely to have a positive impact on project economics for a potential
mining operation at Mt Alexander.
Two composites representing both massive and disseminated mineralisation from MAD177 were
assessed as part of the test work programme. The head grades for these composites are presented below.
Ni
Composite
%
sample
Massive
5.89
Disseminated 1.59
Fe
%
Co
%
Cu
%
2.58 0.19 53.5 33.6 0.04 0.60 2.45
0.39 0.06 16.2 6.60 12.9 0.35 1.25
Mg Pt
g/t
%
Pd
g/t
S
%
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
Separate nickel and copper concentrates were produced from each of the massive and disseminated
sulphide samples with the following grades:
Nickel Concentrate
Metal Grades
Ni
%
Massive Ni Concentrate
16.2 90.6
Disseminated Ni Concentrate 13.6 62.0
Ni
recovery
Total
PGEs g/t
Co
%
Cu
%
0.66 0.59 6.26
0.37 0.50 8.10
Copper Concentrate
Metal Grades
Cu
%
Massive Cu Concentrate
30.3 90.6
Disseminated Cu Concentrate 25.1 59.8
Cu
recovery
Total
PGEs g/t
Co
%
Ni
%
1.07 0.03 7.39
0.36 0.02 18.1
Ag
g/t
52
0
An analysis of the PGE content confirms significant values for a number of highly sought after PGEs. In
particular, palladium and rhodium – both of which are currently trading at historically elevated prices –
occur at levels that are expected to attract very valuable smelter credits.
A summary of the PGEs in the nickel and copper concentrates is provided below.
Detailed PGE analysis
Au
g/t
Massive Cu Concentrate
0.14
Disseminated Cu Concentrate 2.78
Massive Ni Concentrate
0.09
Disseminated Ni Concentrate 0.58
Os
g/t
Ru
g/t
Rh
g/t
Pd
g/t
Pt
Ir
g/t
g/t
0.02 0.00 5.26 1.82 0.14 0.02 7.39
0.02 0.00 13.6 1.52 0.01 0.04 18.1
0.02 0.00 5.01 0.78 0.22 0.13 6.26
0.03 0.01 6.16 0.88 0.23 0.21 8.10
Total
PGEs g/t
The results are very favourable for the project economics for a potential mining operation at Mt
Alexander.
Stricklands Deposit – potential starter mine:
Seven diamond core (PQ‐size) holes were drilled to provide additional samples of mineralisation for
metallurgical test work on the Stricklands Deposit. A total of 483.2m was drilled for these metallurgical
holes – STD009, STD010, STD011, STD012, STD013, STD014 and STD015.
All drill holes were located within the existing resource envelope for Stricklands with abundant nickel‐
copper sulphides intersected for the required test work.
The drill core from these new metallurgical holes was cut and sampled with approximately 300kg of core
delivered to XPS (Expert Process Solutions) in Canada, an independent subsidiary of Glencore Group.
XPS has industry leading credentials in the metallurgical analysis of polymetallic nickel sulphides, a style of
mineralisation that is rare in Australia.
The new metallurgical samples will be used by XPS to create a new master composite sample that will
represent the actual Life of Mine (LOM) feed for a potential mining operation at Stricklands. This will allow
for a robust and reliable flowsheet to be developed.
St George Mining Limited – Annual Report 2021
P 10
REVIEW OF OPERATIONS
in
A key focus of the work by XPS will be
to optimise economic recoveries of all
the Ni‐Cu‐Co‐PGE
the metals
mineralisation at
the Stricklands
deposit – including the palladium,
platinum and rhodium that form the
bulk of the platinum group metals.
Figure 4 – Photo of drill core (PQ‐size)
from drill hole STD014 at Stricklands,
which intersected 14.1m of sulphide
mineralisation from 36.5m downhole
(true width and based on geological
logging).
The photo shows core with massive
nickel‐copper sulphides at
approximately 48.2m downhole.
The scoping study for a mining proposal at Stricklands is continuing with trials underway to assess the
suitability of ore sorting at Stricklands as well as the potential to use glycine leaching as an alternative
processing method to standard flotation techniques.
CSIRO research project:
St George has initiated a research project in conjunction with CSIRO to characterise the unique nickel‐
copper sulphide mineralisation and intrusive geology in the Cathedrals Belt. CSIRO has world‐leading
expertise in producing ore genesis models for nickel sulphide deposits, as well as world‐class scientific
facilities to carry out multiscale characterisation studies.
The aim of the scientific research project underway is to further investigate the generation and
emplacement mechanism behind the mineralised intrusive system at the Cathedrals Belt.
It is envisaged that this work will increase the understanding of the most prospective areas at the
Cathedrals Belt as well as the broader tenement package at Mt Alexander.
Importantly, the findings of the research project will assist in ongoing exploration targeting for nickel‐
copper sulphides.
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
The project is being conducted by CSIRO in conjunction with St George and other nickel sulphide focused
companies. CSIRO has world‐leading expertise in producing ore genesis models for nickel sulphide
deposits as well as world‐class scientific facilities to carry out multi‐scale characterisation studies.
Completion of the research project is expected in calendar 2021.
About the Mt Alexander Project:
The Mt Alexander Project is located 120km south‐southwest of the Agnew‐Wiluna Belt, which hosts
numerous world‐class nickel deposits. The Project comprises six granted exploration licences – E29/638,
E29/548, E29/962, E29/954, E29/972 and E29/1041 – which are a contiguous package. A seventh granted
exploration licence – E29/1093 – is located to the south‐east of the core tenement package.
The Cathedrals, Stricklands, Investigators and Radar nickel‐copper‐cobalt‐PGE discoveries are located on
E29/638, which is held in joint venture by St George (75%) and Western Areas Limited (25%). St George is
the Manager of the Project, with Western Areas retaining a 25% non‐contributing interest in the Project (in
regard to E29/638 only) until there is a decision to mine. All other Project tenements are owned 100% by
St George.
Figure 5 – regional
map (over TMI
magnetics)
showing the
strategic location
of St George’s Mt
Alexander Project
to the south‐west
of major nickel
projects in the
Agnew‐Wiluna Belt
– a globally
significant region
for nickel sulphide
production.
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
PATERSON PROJECT
Copper and gold targets in world‐class region
Maiden drilling intersects prospective lithology:
A major drill programme commenced in June 2021 at St George’s 100%‐owned Paterson Project with the
aim testing the lithology and depth of cover across a 35km strike of prospective stratigraphy at St
George’s Exploration Licence E45/5226.
Geological logging of completed drill holes indicates that they have intersected prospective basement
rocks including chalcopyrite bearing intermediate igneous intrusives and intensely altered and gossanous
sediments. These rocks are indicative of potential base metal and gold mineralisation in the project area.
Significantly, XRF analysis of the basement rocks indicates elevated levels of pathfinder elements for base
metal and gold deposits including bismuth, arsenic, copper, zinc, lead, molybdenum and vanadium.
Laboratory assays are pending and required to confirm the metal values that have been estimated using
geological logging and portable XRF analysis.
Petrographic analysis has been completed on samples from a number of drill holes – all of which showed
variably weathered schists, which are interpreted to be derived from sedimentary and felsic volcanic
rocks.
One bottom‐of‐hole sample, from drill hole PRC009, contained pyrrhotite and minor chalcopyrite in
primary textures indicating that this sedimentary unit may be in part sulphidic – an important source of
sulphur for the formation of sedimentary copper deposits.
This lithology, in conjunction with the interpreted structural setting, has similarities to the stratigraphy
of the lower Yeneena Basin. This has positive implications on the prospectivity of St George’s Paterson
Project for base metal and gold deposits, as this lithology is known to host major deposits in the region
– including the Winu copper‐gold deposit of Rio Tinto (ASX: RIO) and the Nifty copper deposit of Cyprium
(ASX: CYM).
Figure 6 – Photo of a drill chip from PRC009 showing abundant sulphides on a fracture and medium grain
texture of the igneous rock (photo colours not altered).
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
Further drilling is planned by St George at the Paterson Project in calendar 2021, including deeper diamond
drilling, to follow‐up the encouraging initial drill results.
Figure 7 – map
showing St George’s
tenements in the
Paterson Province as
well as other projects
in the region.
St George‘s ground in
the Paterson region
comprises Exploration
Licence E45/5226 and
Exploration Licence
E45/5422.
The Paterson Province is one of the most highly endowed mineral regions in Australia and remains
underexplored with a number of significant copper and gold discoveries recently announced including at
Rio Tinto’s Winu and at Havieron which is being explored in joint venture by Greatland Gold (LON: GGP)
and Newcrest Mining (ASX: NCM).
These latest discoveries have fueled strong interest in the region from major mining companies such as
Fortescue Metals (ASX: FMG), IGO (ASX: IGO) and OZ Minerals (ASX: OZL), which alongside Newcrest and
Rio have secured ground in the region including by way of attractive joint ventures with junior exploration
companies.
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
BOADVIEW PROJECT
Greenfields opportunity in emerging mineral province
The new Broadview Project is located in Western Australia’s Wheatbelt, approximately 150km east of Perth.
Other tenement holders in the region include global mining major Anglo American plc (LSE: AAL), which has
more than 10,000 sq km of ground, and Impact Minerals (ASX: IPT) which has established its Arkun Project
with five tenements.
The Project is considered prospective for nickel‐copper‐PGE deposits as well as for copper and gold
mineralisation. It comprises two exploration licences covering an area of 250 sq km.
The two exploration licences cover two arcuate belts that are interpreted to be splays off the mobile belt
that trends north‐west to south‐east from the Moora‐Julimar‐Yarawindah area and may mark the boundary
of the South West Terrane.
The interpreted boundary of the South West Terrane has a scale and setting that suggests it may contain
prospective rocks for hosting major nickel‐copper‐PGE deposits, such as the recent discoveries at
Yarawindah and Julimar in the northern portions of the belt. This interpretation is further supported by the
presence of anomalous copper in outcrop.
St George will undertake an augur soil survey at Broadview during calendar 2021 to investigate for
anomalism that may support the presence of prospective lithology.
Figure 8 – map of the Broadview Project tenements overlaying magnetic data and highlighting interpreted
greenstones. Inset shows regional location.
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
CORPORATE DEVELOPMENTS
Capital raising:
On 11 May 2021, the Company completed a private placement of fully paid ordinary shares to
institutional and sophisticated investors that secured $7 million in new funds (before costs) (Placement).
A total of 85,365,854 shares were issued at $0.082 per share under the Placement. A further 281,707
new ordinary shares at a deemed issue price of $0.082 per share were issued as consideration for
advisory services rendered to the Company.
A total of 85,647,561 fully paid ordinary shares at $0.082 per share were issued on 11 May 2021, after
which the Company had the following listed securities on issue:
Fully Paid Ordinary Shares
589,190,937
50,354,337 of the shares were issued pursuant to the Company’s 10% placement capacity under ASX
Listing Rule 7.1A and 35,293,224 shares were issued pursuant to the Company’s current placement
capacity under Listing Rule 7.1.
During the year the Company cancelled 32 Class D Performance Rights.
COVID ‐19
St George is managing its operations in compliance with COVID‐19 regulations issued by State and
Commonwealth authorities. We will continue to proactively manage drilling and other field programmes
to protect the health and safety of our team and service providers.
Border restrictions and snap lockdowns in Western Australia and elsewhere have impacted the
movement of personnel for drill rig crews, which is constraining the availability of drill rigs. St George is
in close contact with its drilling contractors to best manage access and continuity to drilling services.
Restrictions on international travel as well as lockdowns in parts of Canada have impacted the timing for
completion of metallurgical test work underway in Canada. St George is working closely with its service
provider to progress the test work with minimal delays.
St George Mining Limited – Annual Report 2021
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REVIEW OF OPERATIONS
COMPETENT PERSON STATEMENT:
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore
Reserves for the Mt Alexander Project is based on information compiled by Mr Dave O’Neill, a Competent Person
who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O’Neill is employed by St George
Mining Limited to provide technical advice on mineral projects, and he holds performance rights issued by the
Company.
Mr O’Neill has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition
of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr O’Neill
consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.
This ASX announcement contains information extracted from the following reports which are available on
the Company’s website at www.stgm.com.au:
22 May 2020 St George Starts Major Drilling Campaign
5 June 2020 St George Steps Up Drilling at Mt Alexander
2 July 2020 Mt Alexander – Drilling Update
23 July 2020 Mt Alexander – Drilling Update
13 August 2020 Mt Alexander – Drilling Update
27 August 2020 Thick Mineralised Unit Intersected at Investigators
9 September 2020 More Thick Intercepts of Mineralised Units
14 September 2020 Excellent Metallurgical Results for Mt Alexander
21 October 2020 New 49,000 Siemens EM Conductor at Mt Alexander
3 December 2020 Multiple New EM Conductors at Mt Alexander
21 December 2020 Mt Alexander – Exploration and Development Update
23 February 2021 Drilling Update for Mt Alexander
8 March 2021 High‐Impact Drilling at Mt Alexander
7 April 2021 Update ‐ Mt Alexander Nickel‐Copper Sulphide Project
14 April 2021 New Discovery of Nickel‐Copper Sulphides at Mt Alexander
27 April 2021 Nickel‐Copper Sulphide Potential Grows at Mt Alexander
3 May 2021 St George Secures $7 Million
27 May 2021 Nickel‐Copper Sulphides Intersected Down‐Plunge
8 June 2021 Maiden Drilling Begins at Paterson
22 June 2021 Assays Confirm High‐Grade Discovery at Mt Alexander
6 July 2021 New EM Conductors at Mt Alexander
8 July 2021 Drilling Intersects Prospective Lithology at Paterson
2 August 2021 Soil Assays Confirm New Ni‐Cu Target at Mt Alexander
13 August 2021 Highly Successful Drilling at Paterson Project
16 August 2021 Drilling Underway at Mt Alexander
18 August 2021 Field of EM Conductors at Mt Alexander
The Company confirms that it is not aware of any new information or data that materially affects the
exploration results included in any original market announcements referred to in this report and that no
material change in the results has occurred. The Company confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified from the original market
announcements.
St George Mining Limited – Annual Report 2021
P 17
DIRECTORS’ REPORT
The Directors of St George Mining Limited submit the annual financial report of St George Mining Limited from
1 July 2020 to 30 June 2021. In order to comply with the provisions of the Corporations Act 2001, the Directors
report as follows:
DIRECTORS
The names and particulars of the directors of the Company during the financial year ended 30 June 2021, and at
the date of this report, are as follows. Directors were in office for the entire period unless otherwise stated.
John Prineas B.EC LL.B F FIN
Appointed
Experience
Executive Chairman
19 October 2009
John is a founding shareholder and director of St George Mining Limited. His
involvement in the mining sector spans over 25 years with experience in
commercial, legal and finance roles.
Prior to establishing St George Mining, John was Chief Operating Officer and
Country Head of Dresdner Bank in Sydney with a focus on project and
acquisition finance for resources and infrastructure projects. John has
Economics and Law degrees from the University of Sydney and commenced
his career as a lawyer in Sydney with Allen, Allen & Hemsley.
BMG Resources Limited (ASX:BMG) from October 2020.
listed company
Other current
directorships
Former listed directorships in the
last three years
John Dawson B.Com MBA INSEAD Non‐Executive Director
Appointed
Experience
Not applicable.
2 January 2019
Mr Dawson has over 30 years’ experience in the finance and mining sectors
where he occupied very senior roles with global investment banks including
Goldman Sachs and Dresdner Kleinwort Wasserstein.
At Goldman Sachs, Mr Dawson was a Managing Director of FICC (Fixed
Income, Currency and Commodities) for Australia. At Dresdner Kleinwort
Wasserstein, Mr Dawson was Global Head of Commodities as well as the
Country Head for Australia.
BMG Resources Limited (ASX:BMG) from October 2020.
Not applicable.
Non‐Executive Director
11 June 2015
Sarah Shipway was appointed Non‐Executive Director on 11 June 2015 and
was appointed Company Secretary of St George Mining on 22 March 2012.
Ms Shipway is Non‐Executive Director/Company Secretary for Beacon
Minerals Limited (ASX: BCN) and Company Secretary for Cardinal Resources
Limited (previously ASX/TSX: CDV).
Ms Shipway has a Bachelor of Commerce from the Murdoch University and
is a member of the Chartered Accountants Australia and New Zealand.
Beacon Minerals Limited (ASX: BCN) from June 2015.
Not applicable.
listed company
Other current
directorships
Former listed directorships in the
last three years
Sarah Shipway CA, B.Com
Appointed
Experience
listed company
Other current
directorships
Former listed directorships in the
last three years
St George Mining Limited – Annual Report 2021
P 18
DIRECTORS’ REPORT
COMPANY SECRETARY
Sarah Shipway was appointed Company Secretary on 22 March 2012. For details relating to Sarah Shipway,
please refer to the details on directors above.
DIRECTORS’ INTERESTS
At the date of this report the Directors held the following interests in St George Mining.
Name
Ordinary
Shares
John Prineas
John Dawson
Sarah Shipway
12,588,178
14,895,242
649,479
Performance Rights
Class E
8
5
5
Class F
10
6
6
The Directors have no interest, whether directly or indirectly, in a contract or proposed contract with St George
Mining Limited during the financial year.
PRINCIPAL ACTIVITIES
The principal activity of the Group is mineral exploration in Australia.
RESULTS AND REVIEW OF OPERATIONS
The results of the consolidated entity for the financial year from 1 July 2020 to 30 June 2021 after income tax
was a loss of $8,322,413 (2020: $8,584,901).
A review of operations of the consolidated entity during the year ended 30 June 2021 is provided in the “Review
of the Operations” immediately preceding this Directors’ Report.
LIKELY DEVELOPMENTS
The Group will continue its mineral exploration and development activities over the next financial year with a
focus on the Mt Alexander Project and the Paterson Project. Further commentary on planned activities over the
forthcoming year is provided in the “Review of Operations”.
The Board will continue to focus on creating value from the Group’s existing resource assets, as well as
considering new opportunities in the resources sector to complement the Group’s current projects.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There has not been any significant change in the state of affairs of the Group during the financial year, other
than as noted in this financial report.
ENVIRONMENTAL ISSUES
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it
complies with all applicable regulations when carrying out exploration work.
St George Mining Limited – Annual Report 2021
P 19
DIRECTORS’ REPORT
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way
of a dividend to the date of this report.
DIRECTORS’ MEETINGS
The following table sets out the number of meetings held during the year ended 30 June 2021 and the number
of meetings attended by each director.
J Prineas
J Dawson
S Shipway
Directors Meetings
Eligible to Attend
5
5
5
Attended
5
5
5
REMUNERATION REPORT – AUDITED
Remuneration policy
The remuneration policy of St George Mining Limited has been designed to align directors’ objectives with
shareholder and business objectives by providing a fixed remuneration component, which is assessed on an
annual basis in line with market rates. The Board of St George Mining Limited believes the remuneration policy
to be appropriate and effective in its ability to attract and retain the best directors to run and manage the
Company.
The Board’s policy for determining the nature and amount of remuneration for Board members is as follows:
The remuneration policy and setting the terms and conditions for the Executive directors and other senior
staff members is developed and approved by the Board based on local and international trends among
comparative companies and industry generally. It examines terms and conditions for employee incentive
schemes, benefit plans and share plans. Independent advice is obtained when considered necessary to
confirm that executive remuneration is in line with market practice and is reasonable within Australian
executive reward practices.
All executives receive a base salary (which is based on factors such as length of service and experience) and
superannuation.
The Group is an exploration entity, and therefore speculative in terms of performance. Consistent with
attracting and retaining talented executives, directors and senior executives are paid market rates
associated with individuals in similar positions within the same industry. Options and performance
incentives may be issued particularly as the entity moves from an exploration to a producing entity and key
performance indicators such as profit and production and reserves growth can be used as measurements
for assessing executive performance.
The Board policy is to remunerate non‐executive directors at market rates for comparable companies for
time, commitment and responsibilities. The Executive Directors, in consultation with independent advisors,
determine payments to the non‐executives and review their remuneration annually, based on market
practice, duties and accountability. The maximum aggregate amount of fees that can be paid to non‐
executive directors is subject to approval by shareholders at the Annual General Meeting and is currently
$500,000 per annum. Fees for independent non‐executive directors are not linked to the performance of
the Group. To align Directors’ interests with shareholder interests, the directors are encouraged to hold
shares in the Company.
St George Mining Limited – Annual Report 2021
P 20
DIRECTORS’ REPORT
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. The method applied to achieve this aim has been the issue of performance rights to directors
and executives to encourage the alignment of personal and shareholder interests. The Company believes
this policy was effective in increasing shareholder wealth in the past.
The Company has issued performance‐based remuneration to directors and executives of the Company. The
measures are specifically tailored to align personal and shareholder interest. The KPI’s are reviewed regularly
to assess them in relation to the Company’s goals and shareholder wealth.
Company Performance
A summary of St George Mining’s business performance as measured by a range of financial and other
indicators, including disclosure required by the Corporations Act 2001, is outline below.
2021
2020
2019
2018
2017
Total Comprehensive Loss Attributable to
Member of the Company ($)
Cash and cash equivalents at year end ($)
Basic Loss Per Share (cents)
ASX share price at the end of the year ($)
Increase/(decrease) in share price (%)
8,322,413
8,584,901
9,594,528
4,384,667
4,289,216
6,370,756
1.61
0.067
(42)
8,310,582
2.12
0.115
5
3,357,486
3.21
0.110
(18)
5,948,692
1.70
0.135
35
4,773,546
1.75
0.100
(26)
Remuneration Consultants
No remuneration consultant was engaged in the current financial year.
Details of directors and executives
Directors
J Prineas
J Dawson
S Shipway
Title
Executive Chairman
Non‐Executive Director
Non‐Executive Director
Date of Appointment
19 October 2009
2 January 2019
11 June 2015
Date of Retirement
Not Applicable
Not Applicable
Not Applicable
The Company does not have any executives that are not Directors.
Executive Directors’ remuneration and other terms of employment are reviewed annually by the non‐executive
director(s) having regard to performance against goals set at the start of the year, relative comparable
information and independent expert advice.
Except as detailed in the Director’s Report, no director has received or become entitled to receive, during or
since the financial year end, a benefit because of a contract made by the Group or a related body corporate with
a director, a firm of which a director is a member or an entity in which a director has a substantial financial
interest. This statement excludes a benefit included in the aggregate amount of emoluments received or due
and receivable by directors and shown in the Remuneration Report, prepared in accordance with the
Corporations Regulations, or the fixed salary of a full time employee of the Group.
Director Remuneration Tables
The actual remuneration earned by Directors in FY2021 is set out below. The information is considered relevant
as it provides shareholders with a view of the remuneration actually paid to Directors for performance in FY2021.
The value of remuneration includes equity grants where the Directors received control of the shares in FY2021
and different from the remuneration disclosures in the below table, which disclosures the value of LTI grants
which may or may not vest in future years.
St George Mining Limited – Annual Report 2021
P 21
DIRECTORS’ REPORT
Director Actual Remuneration Earned in FY2021
Salary and
Fees 1
Termination
Payment
LTI Plan
Rights
Total Actual
Remuneration
Name
J Prineas
J Dawson
S Shipway
1. Salary and fees comprise base salary, superannuation and leave entitlements. It reflects the total of “salary
$
409,449
68,394
155,991
$
409,449
68,394
155,991
$
‐
‐
‐
$
‐
‐
‐
Short‐
Term
Incentive
$
‐
‐
‐
and fees” and “superannuation” in the statutory remuneration table.
Remuneration of directors and executives
Remuneration for the financial year ended 30 June 2021.
Short‐Term Benefits
Post
Employment
Benefits
Salary
and
Fees
$
350,000
350,000
62,460
62,460
152,608
142,459
Termination
Payment
Superann‐
uation
$
‐
‐
‐
‐
‐
‐
$
33,250
33,249
5,934
5,933
3,383
13,533
Employee
Benefits
Long Service
and Annual
Leave
$
26,199
25,754
‐
‐
‐
‐
Equity Settled
Share‐Based
Payments
Shares/Option/
Performance
Rights
$
(70,870)1
124,998
47,6042
46,100
10,5743
41,666
Total
Performance
Related
$
338,579
534,001
115,998
114,493
166,565
197,658
%
‐
23%
41%
40%
6%
21%
‐
‐
42,567
52,715
26,199
25,754
565,068
554,919
(12,692)
212,764
‐
‐
Note 1: Included in the share‐based payments is the reversal of Class C Performance Rights that was expensed in the
prior year amounting to $150,693, as the milestone was deemed unlikely to vest given, they are schedule to expire on
15 August 2021.
Note 2: Included in the share‐based payments is the reversal of Class C Performance Rights that was expensed in the
prior year amounting to $37,673, as the milestone was deemed unlikely to vest given, they are schedule to expire on
15 August 2021.
Note 3: Included in the share‐based payments is the reversal of Class C Performance Rights that was expensed in the
prior year amounting to $37,675, as the milestone was deemed unlikely to vest given, they are schedule to expire on
15 August 2021.
621,142
846,152
Employment contracts of directors and executives
The terms and conditions under which key management personnel and executives are engaged by the Company
are formalised in contracts between the Company and those individuals.
The Company has entered into an executive services agreement with Mr John Prineas whereby Mr Prineas
receives remuneration of $350,000 per annual plus statutory superannuation. Mr Prineas or the Company may
terminate the agreement by giving 12 months’ notice. The executive services agreement has no fixed period and
continues until terminated.
St George Mining Limited – Annual Report 2021
P 22
Directors
J Prineas
2021
2020
J Dawson
2021
2020
S Shipway
2021
2020
Total
2021
2020
DIRECTORS’ REPORT
The Company has entered into a services agreement with Mr John Dawson, whereby Mr Dawson receives
remuneration of $62,460 per annuum plus statutory superannuation. Mr Dawson or the Company may
terminate the agreement by giving notice. The services agreement has no fixed period and continues until
terminated.
The Company has entered into service agreements with Ms Sarah Shipway whereby Ms Shipway receives
remuneration of $62,460 per annum plus statutory superannuation and $80,000 plus statutory superannuation
for the roles of Non‐Executive Director and Company Secretary respectively. Ms Shipway may terminate the
agreements by giving 3 months’ notice. The services agreements have no fixed period and continue until
terminated.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every Officer or
agent of the Company shall be indemnified out of the property of the entity against any liability incurred by
him/her in his/her capacity as Officer or agent of the Company or any related corporation in respect of any act
or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal.
Shareholdings of key management personnel
Directors
Balance at
1 July 2020
Granted as
remuneration
Net other change
Balance at
30 June 2021
J Prineas
J Dawson
S Shipway
Total
12,588,178
14,985,242
649,479
28,222,899
‐
‐
‐
‐
‐
‐
‐
‐
12,588,178
14,985,242
649,479
28,222,899
Listed Options, exercisable at $0.20 on or before 30 September 2020, holdings of key management personnel
Directors
Balance at
1 July 2020
J Prineas
J Dawson
S Shipway
Total
1,021,422
1,459,594
‐
2,481,016
Expiry of
Options
(1,021,422)
(1,459,594)
‐
(2,481,016)
Net other change
Balance at
30 June 2021
‐
‐
‐
‐
‐
‐
‐
‐
Performance Rights holdings of key management personnel
Directors
Balance at
1 July 2020
Granted as
remuneration
Net other
change
Balance at
30 June 2021
Unvested
J Prineas
J Dawson
S Shipway
Total
60
20
20
100
26
16
16
58
(8)
(5)
(5)
(18)
78
31
31
140
78
31
31
140
Value of
unvested
Rights ($)
474,000
188,000
188,000
850,000
Each performance rights convert to 50,000 fully paid ordinary shares on achievement of certain milestones. A
total of 58 performance rights were issued during the year with a total value of $687,500, 18 of these rights
amounting to $176,000 lapsed during the year.
Performance Rights Plan
The Group operates a Performance Rights Plan, approved at the Company’s Annual General Meeting held 22
November 2017.
St George Mining Limited – Annual Report 2021
P 23
DIRECTORS’ REPORT
During the year ended 30 June 2021 the Company issued 125 performance rights (2020: 20) and 32 performance
rights were cancelled.
Performance rights have been issued to Directors and personnel of the Company and are subject to a number
of conditions which can restrict both the vesting and exercise of the rights.
At the date of this report a total of 93 performance rights were on issue. 172 performance rights have lapsed
since the year end a total of $468,935 will be reversed from profit or loss and reserves.
There were no ordinary shares issued during the financial year from the exercise of the performance rights.
END OF REMUNERATION REPORT
SHARE OPTIONS
Unissued shares
At the date of this report the Company had no listed options on issue. During the financial year ended 30 June
2021, 54,297 options had been converted into fully paid ordinary shares and 24,521,817 options had expired.
At the date of this report the Company had on issue the below unlisted options:
Unlisted Options
Class
Unlisted Options
Grant Date
Number of Options
01.08.2019
2,500,000
Exercise Price
$
$0.15
Expiry Date
31.07.2022
During the financial year ended 30 June 2021, and at the date of this report, none of these unlisted options were
converted into fully paid ordinary shares.
Option holders do not have any rights to participate in any issues of shares or other interests in the Company or
any other entity.
As at the date of this report the Company had 93 performance rights on issue. On meeting of certain hurdles
each performance right would convert to 50,000 fully paid ordinary shares.
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 year.
CORPORATE GOVERNANCE STATEMENT
St George Mining is committed to ensuring that its policies and practices reflect a high standard of corporate
governance. The Board has adopted a comprehensive framework of Corporate Governance Guidelines.
Throughout the 2021 financial year the Company’s governance was consistent with the Corporate Governance
Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council.
The Group’s Corporate Governance Statement can be viewed at www.stgm.com.au.
St George Mining Limited – Annual Report 2021
P 24
DIRECTORS’ REPORT
EVENTS SUBSEQUENT TO BALANCE DATE
On 15 August 2021 a total of 172 performance were cancelled, unvested.
Other than the above there have been no matters or circumstances that have arisen since the end of the financial
year which significantly affected or could 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.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2021 has been received and can be found
on page 55 of the financial report.
Non Audit Services
The Company’s auditor, Stantons, did not provide any non‐audit services to the Company during the financial
year ended 30 June 2021.
Signed in accordance with a resolution of the directors made pursuant to s 298(2) of the Corporations Act 2001.
On behalf of the directors
JOHN PRINEAS
Executive Chairman
St George Mining Limited
Dated 1 September 2021
St George Mining Limited – Annual Report 2021
P 25
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021
Australian Dollar ($)
REVENUE
Interest
Government grants
EXPENDITURE
Administration expenses
Exploration expenditure written off
Finance expenses
LOSS BEFORE INCOME TAX
Note
30 JUNE 2021
$
30 JUNE 2020
$
3
3
4
5
6
9,860
181,000
190,860
(1,772,073)
(6,730,629)
(10,571)
(8,322,413)
23,264
52,500
75,764
(2,292,263)
(6,313,787)
(54,615)
(8,584,901)
Income Tax
7(a)
‐
‐
NET LOSS ATTRIBUTABLE TO MEMBERS OF THE
COMPANY
(8,322,413)
(8,584,901)
Other comprehensive income
TOTAL COMPREHENSIVE INCOME (LOSS)
‐
(8,322,413)
‐
(8,584,901)
TOTAL COMPREHENSIVE (LOSS) ATTRIBUTABLE
TO MEMBERS OF THE COMPANY
(8,322,413)
(8,584,901)
LOSS PER SHARE
Basic and diluted – cents per share
17
(1.61)
(2.12)
The above consolidated statement of profit or loss and other comprehensive
income should be read in conjunction with the accompanying notes
St George Mining Limited – Annual Report 2021
P 26
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Australian Dollar ($)
Note
30 JUNE 2021
$
30 JUNE 2020
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Security bond
Right of use assets
Plant and equipment
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease Liabilities
Provisions for employee entitlements
TOTAL CURRENT LIABILITIES
NON‐CURRENT LIABILITIES
Lease liabilities
TOTAL NON‐CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
18(a)
10(a)
10(b)
11(a)
12
13
11(b)
11(b)
6,370,756
53,317
70,463
6,494,536
69,658
50,029
28,325
148,012
8,310,582
97,150
147,056
8,554,788
30,659
117,029
45,320
193,008
6,642,548
8,747,796
591,294
37,701
186,452
815,447
18,995
18,995
1,078,347
67,482
135,628
1,281,457
56,696
56,696
834,442
1,338,153
5,808,106
7,409,643
15(a)
15(b)
16
57,336,331
658,425
(52,186,650)
5,808,106
50,695,011
588,369
(43,873,737)
7,409,643
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes
St George Mining Limited – Annual Report 2021
P 27
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Australian ($)
BALANCE AT 1 JULY 2020
Loss for the year
Other comprehensive income
Total comprehensive loss
Shares issued during the year
Share based payments – employees/directors
Shares based payments
Options exercised during the year
Expiry of performance rights
Reversal of performance rights
Expiry of options
Share issue expenses
BALANCE AT 30 JUNE 2021
BALANCE AT 1 JULY 2019
Loss for the year
Other comprehensive income
Total comprehensive loss
Shares issued during the year
Share based payments – employees/directors
Shares based payments
Options exercised during the year
Expiry of options
Share and option issue expenses
BALANCE AT 30 JUNE 2020
SHARE CAPITAL
$
50,695,011
‐
‐
‐
7,000,000
‐
83,100
10,858
‐
‐
‐
(452,638)
57,336,331
ACCUMULATED LOSSES
$
(43,873,737)
(8,322,413)
‐
(8,322,413)
‐
‐
‐
‐
‐
‐
9,500
‐
(52,186,650)
34,366,720
‐
‐
‐
17,167,946
‐
‐
‐
‐
(839,655)
50,695,011
(35,557,987)
(8,584,901)
‐
(8,584,901)
‐
‐
‐
‐
269,151
‐
(43,873,737)
RESERVES
$
TOTAL EQUITY
$
588,369
‐
‐
‐
‐
756,438
‐
‐
(88,000)
(588,882)
(9,500)
‐
658,425
476,722
‐
‐
‐
‐
380,548
250
‐
(269,151)
‐
588,369
7,409,643
(8,322,413)
‐
(8,322,413)
7,000,000
756,438
83,100
10,858
(88,000)
(588,882)
‐
(452,638)
5,808,106
(714,545)
(8,584,901)
‐
(8,584,901)
17,167,946
380,548
250
‐
‐
(839,655)
7,409,643
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
St George Mining Limited – Annual Report 2021
P 28
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Australian Dollar ($)
CASH FLOWS FROM OPERATING ACTIVITIES
Expenditure on mining interests
Payments to suppliers and employees
Interest received
Other ‐ GST
Government Grants
Net cash outflow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payment of bank guarantee
Acquisition of tenements
Net cash outflow from investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Issue of shares net of capital raising costs
Exercise of options
Loan facility received
Interest on loan and facilities
Lease payments
Net cash inflows from financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at the beginning of
the financial year
CASH AND CASH EQUIVALENTS AT THE END
OF THE FINANCIAL YEAR
Note
30 JUNE 2021
$
30 JUNE 2020
$
18(b)
(7,078,781)
(1,524,115)
8,520
45,922
181,000
(8,367,454)
(40,000)
(35,648)
(75,648)
6,570,471
10,858
‐
‐
(78,053)
6,503,276
(8,459,553)
(2,009,336)
21,897
(73,469)
52,500
(10,467,961)
(29,659)
(17,021)
(46,680)
15,570,823
‐
58,000
(105,454)
(55,632)
15,467,737
(1,939,826)
4,953,096
8,310,582
3,357,486
18(a)
6,370,756
8,310,582
The above consolidated statement of cash flows should be
read in conjunction with the accompanying notes
St George Mining Limited – Annual Report 2021
P 29
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
1
CORPORATE INFORMATION
The financial report of St George Mining Limited (“St George Mining” or “the Company”) for the year ended 30
June 2021 was authorised for issue in accordance with a resolution of the directors on 1 September 2021.
St George Mining Limited is a company limited by shares, incorporated in Australia on 19 October 2009. The
consolidated financial statements of the Company for year ended 30 June 2021 comprise of the Company and its
subsidiaries together referred to as the Group or consolidated entity.
The nature of the operations and principal activity of the Group is mineral exploration.
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Statement of compliance
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (“AIFRS”). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting Standards
(“IFRS”).
(b)
Basis of Preparation of the Financial Report
The financial report is a general‐purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies with other
requirements of the law. The financial report has also been prepared on a historical cost basis.
The financial report is presented in Australian dollars. The following accounting policies have been adopted by the
consolidated entity.
Going Concern
The directors have prepared the financial statements on a going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of
business.
The Consolidated Entity has recorded a net accounting loss of $8,322,413 and net operating cash outflows of
$8,367,454 for the year ended 30 June 2021.
The net assets of the consolidated entity have decreased from $7,409,643 at 30 June 2020 to net assets of
$5,808,106 as at 30 June 2021. Net assets and Shareholder’s equity decreased in 2021 due to a reduction in capital
raising during the period and a decrease in trade and other payables from $1,078,347 as at 30 June 2020 compared
to $591,294 as at 30 June 2021.
At 30 June 2021 the Group held a cash balance of $6,370,756.
Equity raisings or debt financing arrangements will be required in the future to fund the Group’s activities. The
Directors are assessing a number of options in respect of equity and debt financing arrangements, and have
reasonable expectations that further funding will be arranged to meet the Group’s objectives. There is no certainty
that new funding will be successfully completed to provide adequate working capital for the Group.
The Board is confident that the Group will have sufficient funds to finance its operations in the 2021/2022 year
following successful completion of equity raisings or debt financing arrangements.
St George Mining Limited – Annual Report 2021
P 30
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(c)
Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent St George
Mining Limited and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an
entity when it 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 over the entity. A list of the subsidiaries is provided in Note 23.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group
from the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from
the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions
between Group entities are fully eliminated on consolidation. Accounting policies of subsidiaries have been
changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by the
Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non
controlling interests". The Group initially recognises non‐controlling interests that are present ownership interests
in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on liquidation at either fair
value or at the non‐controlling interests' proportionate share of the subsidiary's net assets. Subsequent to initial
recognition, non‐controlling interests are attributed their share of profit or loss and each component of other
comprehensive income. Non‐controlling interests are shown separately within the equity section of the statement
of financial position and statement of comprehensive income.
(d)
Significant accounting estimates and judgements
The carrying amount of certain assets and liabilities are often determined based on estimates and assumptions of
future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of certain assets and liabilities within the next annual reporting period are:
Share‐based payment transactions
The Group measures the cost of equity‐settled and cash‐settled transactions by reference to the fair value of the
goods or services received in exchange if it can be reliably measured. If the fair value of the goods or services
cannot be reliably measured, the costs are measured 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 the Black‐Scholes model and the
assumptions and carrying amount at the reporting date, if any, are disclosed in note 19.
Deferred taxation
The potential deferred tax asset arising from the tax losses and temporary differences have not been recognised
as an asset because recovery of the tax losses is not yet considered probable (refer note 7).
Exploration costs
The Group expenses all exploration and evaluation expenditure incurred.
Subsidiary Loans
Provision has been made for all unsecured loans with subsidiaries as it is uncertain if and when the loans will be
recovered. All inter‐company loans have been eliminated on consolidation.
St George Mining Limited – Annual Report 2021
P 31
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(e)
Revenue
Under AASB 15 Revenue from contracts with customers, revenue is recognised when a performance obligation is
satisfied, being when control of the goods or services underlying the performance obligations is transferred to the
customer.
Interest
Interest revenue is recognised using the effective interest method.
Government Grants
Government grants are accounted for when received.
(f)
Employee benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to
balance date. Employee benefits expected to be settled within one year together with entitlements arising from
wages and salaries and annual leave which will be settled after one year, 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 cash outflows to be made to those benefits.
Contributions are made by the Group to employee superannuation funds and are charged as expenses when
incurred.
(g)
Share based payment transactions
The Group accounts for all equity‐settled stock‐based payments based on the fair value of the award on grant
date. Under the fair value‐based method, compensation cost attributable to options granted is measured at fair
value at the grant date and amortised over the vesting period. The amount recognised as an expense is adjusted
to reflect any changes in the Group’s estimate of the performance rights that will eventually vest and the effect of
any non‐market vesting conditions.
Share‐based payment arrangements in which the Group receives goods or services as consideration are measured
at the fair value of the good or service received, unless that fair value cannot be reliably estimated.
(h)
Research & Development Tax Incentives
Refundable tax incentives are accounted for as a government grant under AASB 120 Accounting for Government
Grants and Disclosure of Government Assistance.
(i)
Exploration and evaluation expenditure
Exploration and evaluation expenditure on areas of interest are expensed as incurred. Costs of acquisition will
normally be expensed but will be assessed on a case by case basis and may be capitalised to areas of interest and
carried forward where right of tenure of the area of interest is current and they are expected to be recouped
through sale or successful development and exploitation of the area of interest or, where exploration and
evaluation activities in the area of interest have not yet reached a stage that permits reasonable assessment of
the existence of economically recoverable reserves.
When an area of interest is abandoned or the directors decide that it is not commercial, any accumulated
acquisition costs in respect of that area are written off in the financial period the decision is made. Where projects
have advanced to the stage that directors have made a decision to mine, they are classified as development
properties. When further development expenditure is incurred in respect of a development property, such
St George Mining Limited – Annual Report 2021
P 32
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
expenditure is carried forward as part of the cost of that development property only when substantial future
economic benefits are established. Otherwise such expenditure is classified as part of the cost of production or
written off where production has not commenced.
(j)
Income Tax
Current tax assets and liabilities for the period is measured at amounts expected to be recovered from or paid to
the taxation authorities based on current year’s taxable income. The tax rates and tax laws used for computation
are enacted or substantially enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
except where the deferred income tax liability arises from the initial recognition of an asset or liability in
a transaction that is not a business combination and, at the time of the transaction, affects neither that
accounting profit nor taxable profit or loss; and,
in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, except where the timing of the reversal of the temporary differences will not
reverse in the foreseeable future.
Deferred income tax assets are recognised for all the deductible temporary differences, carry‐forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences, and the carry‐forward of unused tax assets and unused tax losses can be
utilised:
except where the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; and,
in respect of deductible temporary differences with investments in subsidiaries, associates and interest in
joint ventures, deferred tax assets in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilised.
The carrying amount of deferred income tax is reviewed at each balance sheet date and reduced to the extent
that is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income
tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are not in the income statement.
(k)
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 Taxation Office (“ATO”). 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.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the
Consolidated Statement of Financial Position.
St George Mining Limited – Annual Report 2021
P 33
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Cash Flows are included in the Consolidated Statement of Cash Flows net of GST. The GST components of cash
flows arising from investing and financial activities which are recoverable from, or payable to, the ATO are
classified as operating cash flows.
(l)
Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a diminishing value basis over the estimated useful life of the assets as follows:
Class of Fixed Asset
Plant and Equipment
‐ Year 1
‐ Subsequent Years
Depreciation Rate
18.75%
37.50%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each financial year end.
(m)
Earnings per share
Basic earnings per share is calculated as net loss attributable to members of the Company, adjusted to exclude
any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any bonus element.
(n)
Cash and cash equivalents
Cash and short‐term deposits in the consolidated Statement of Financial Position comprise cash at bank and in
hand and short‐term deposits with an original maturity of three months or less.
For the purposes of the consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of outstanding bank overdrafts.
(o)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate
of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value; less costs to sell
and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or groups of assets and the asset’s value in use cannot be
estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash‐
generating unit to which it belongs. When the carrying amount of an asset or cash‐generating unit exceeds its
recoverable amount, the asset or cash‐generating unit is considered impaired and it is written down to its
recoverable amount.
In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre‐tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent
with the function of the impaired asset unless the asset is carried at revalued amount (in which case the
impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount
is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the
case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot
St George Mining Limited – Annual Report 2021
P 34
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at
revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the
depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual
value, on a systemic basis over its remaining useful life.
(p)
Contributed equity
Ordinary shares and options are classified as contributed equity. Incremental costs directly attributable to the
issue of new shares or options are shown in equity as a deduction, net of GST, from the proceeds.
(q)
Financial Instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured initially
at fair value adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which
case transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used
to determine the fair value. In other circumstances, valuation techniques are adopted. Subsequent measurement
of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or
when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or expires.
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
The contractual cash flow characteristics of the financial assets; and
The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated
as FVPL):
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
St George Mining Limited – Annual Report 2021
P 35
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most
other receivables fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income (Equity instruments)
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding; and
The financial asset is held within a business model with the objective of both holding to collect contractual
cash flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for
financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI.
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial
Instruments: Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to
be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless
the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for
derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or
losses recognised in profit or loss.
All interest‐related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
profit or loss.
Effective interest rate method
The effective interest rate method is a method of calculating the amortised cost of a financial instrument and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial instrument or, where appropriate, a
shorter period, to the net carrying amount on initial recognition.
St George Mining Limited – Annual Report 2021
P 36
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Transaction costs
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition.
Impairment of financial assets
The Group assesses on a forward‐looking basis the expected credit losses associated with its debt instruments
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been
a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by
AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(r)
Business combinations
Business combinations occur where an acquirer obtains control over one or more businesses and results in the
consolidation of its assets and liabilities.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving
entities or businesses under common control. The acquisition method requires that for each business combination
one of the combining entities must be identified as the acquirer (i.e. parent entity). The business combination will
be accounted for as at the acquisition date, which is the date that control over the acquiree is obtained by the
parent entity. At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited
exceptions, the fair value of the identifiable assets acquired and liabilities assumed. In addition, contingent
liabilities of the acquiree will be recognised where a present obligation has been incurred and its fair value can be
reliably measured.
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted
for the measurement of goodwill will impact on the measurement of any non‐controlling interest to be recognised
in the acquiree where less than 100% ownership interest is held in the acquiree.
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition
date fair value of any previously held equity interest shall form the cost of the investment in the separate financial
statements. Consideration may comprise the sum of the assets transferred by the acquirer, liabilities incurred by
the acquirer to the former owners of the acquiree and the equity interests issued by the acquirer.
Fair value uplifts in the value of pre‐existing holdings are taken to the statement of comprehensive income. Where
changes in the value of such equity holdings had previously been recognised in other comprehensive income, such
amounts are recycled to profit or loss.
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent
consideration arrangement. Any obligation incurred relating to contingent consideration is classified as either a
financial liability or equity instrument, depending upon the nature of the arrangement. Rights to refunds of
consideration previously paid are recognised as a receivable. Subsequent to initial recognition, contingent
consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.
Contingent consideration classified as an asset or a liability is remeasured each reporting period to fair value
through the statement of comprehensive income unless the change in value can be identified as existing at
acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the consolidated statement
of comprehensive income.
St George Mining Limited – Annual Report 2021
P 37
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(s)
Trade Receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business. They are generally due for settlement within 30 days and therefore are all classified as current. Trade
receivables are recognised initially at the amount of consideration that is unconditional unless they contain
significant financing components, when they are recognised at fair value. The Group holds the trade receivables
with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised
cost using the effective interest method. Details about the Group’s impairment policies and the calculation of the
loss allowance are provided in note 2(o).
(t)
Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by the Group that remain unpaid
at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid
within 30 days of recognition of the liability. Trade and other payables are initially measured at fair value and
subsequently measured at amortised costs using the effective interest method.
(u)
Adoption of new and revised standards
New and Amended Standards Adopted by the Group
The Group has considered the implications of new and amended Accounting Standards which have become
applicable for the current financial reporting period.
Initial adoption of AASB 2020‐04: COVID‐19‐Related Rent Concessions
AASB 2020‐4: Amendments to Australian Accounting Standards – COVID‐19‐Related Rent Concessions amends
AASB 16 by providing a practical expedient that permits lessees to assess whether rent concessions that occur as
a direct consequence of the COVID‐19 pandemic and, if certain conditions are met, account for those rent
concessions as if they were not lease modifications.
Initial adoption of AASB 2018‐6: Amendments to Australian Accounting Standards – Definition of a Business
AASB 2018‐6 amends and narrows the definition of a business specified in AASB 3: Business Combinations,
simplifying the determination of whether a transaction should be accounted for as a business combination or an
asset acquisition. Entities may also perform a calculation and elect to treat certain acquisitions as acquisitions of
assets.
Initial adoption of AASB 2018‐7: Amendments to Australian Accounting Standards – Definition of Material
This amendment principally amends AASB 101 and AASB 108 by refining the definition of material by improving
the wording and aligning the definition across the standards issued by the AASB.
Initial adoption of AASB 2019‐3: Amendments to Australian Accounting Standards – Interest Rate Benchmark
This amendment amends specific hedge accounting requirements to provide relief from the potential effects of
the uncertainty caused by interest rate benchmark reform.
Initial adoption of AASB 2019‐1: Amendments to Australian Accounting Standards – References to the
Conceptual Framework
This amendment amends Australian Accounting Standards, Interpretations and other pronouncements to reflect
the issuance of Conceptual Framework for Financial Reporting by the AASB.
St George Mining Limited – Annual Report 2021
P 38
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
The standards listed above did not have any impact on the amounts recognised in prior periods and are not
expected to significantly affect the current or future periods.
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material impact on
the entity in the current or future reporting periods and on foreseeable future transactions.
(v)
Comparative information
Comparative information is amended where appropriate to ensure consistency in presentation with the current
year.
3
REVENUE
Interest income
Government grants
4
ADMINISTRATION EXPENSES
Administration expenses include the following expenses:
Employee benefit expense
Wages and salaries
Accrued leave
Employee share based payments
Defined contribution superannuation expense
Other administration costs
Accounting and administration fees
Consulting fees
Legal fees
Publications and subscriptions
Presentations and seminars
Rental expenses
Share registry costs
Travel expenses
ROU depreciation
Depreciation
Other
Total administration expenses
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
9,860
181,000
190,860
23,264
52,500
75,764
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
670,091
50,824
79,556
111,729
912,200
6,749
‐
10,539
168,480
139,760
48,705
47,173
38,698
67,000
16,995
315,774
859,873
1,772,073
484,268
18,323
380,547
108,717
991,855
56,757
35,556
17,729
123,485
505,432
24,835
64,120
88,864
51,196
22,086
310,348
1,300,408
2,292,263
St George Mining Limited – Annual Report 2021
P 39
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
5
EXPLORATION EXPENDITURE WRITTEN OFF
Exploration expenditure written off
Tenement acquisition costs
6
FINANCE EXPENSES
Interest expense
Lease interest
Refer to Note 14 for details in relation to the facility.
7
INCOME TAX
CONSOLIDATED
30 JUNE 2021
$
6,634,981
95,648
6,730,629
CONSOLIDATED
30 JUNE 2020
$
6,279,048
34,739
6,313,787
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
‐
10,571
10,571
43,052
11,563
54,615
(a)
Prima facie income tax benefit at 26% on loss from ordinary activities is reconciled to the income tax
provided in the financial statements
Loss before income tax
Income tax calculated at 26% (2020: 27.5%)
Tax effect of;‐
Sundry – temporary differences
Section 40‐880 deduction
Future income tax benefit not brought to account
Income tax benefit
(b)
Deferred tax assets
CONSOLIDATED
30 JUNE 2021
$
(8,322,413)
(2,163,827)
CONSOLIDATED
30 JUNE 2020
$
(8,584,901)
(2,360,848)
25,888
(144,223)
2,282,162
‐
(65,059)
(151,139)
2,577,046
‐
The potential deferred tax asset arising from the tax losses and temporary differences have not been recognised
as an asset because recovery of tax losses is not yet probable.
Australian accumulated tax losses (i), (ii), (iii)
Provisions ‐ net of prepayments
Section 40‐880 deduction
Unrecognised deferred tax assets relating
to the above temporary differences
The benefits will only be obtained if:
CONSOLIDATED
30 JUNE 2021
$
8,114,640
45,357
268,677
CONSOLIDATED
30 JUNE 2020
$
6,498,528
(123,638)
334,589
8,428,674
6,709,479
(i)
(ii)
The Group derives future assessable income of a nature and of an amount sufficient to enable the benefit
from the deduction for the losses to be realised;
The Group continues to comply with the conditions in deductibility imposed by the Law; and
St George Mining Limited – Annual Report 2021
P 40
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(iii)
No change in tax legislation adversely affects the Group in realising the benefits from the deductions or
the losses.
8
AUDITOR’S REMUNERATION
Auditing and review of the Group’s financial statements
9
(a)
KEY MANAGEMENT PERSONNEL
Details of key management personnel
Directors
John Prineas
John Dawson
Sarah Shipway
Executive
John Prineas – Executive Chairman
(b)
Compensation of key management personnel
Salaries and fees
Post employment benefits – superannuation
Equity settled share based payments
Long service and annual leave benefits
10
CURRENT ASSETS
(a)
Trade and Other Receivables
Current
CONSOLIDATED
30 JUNE 2021
$
53,695
53,695
CONSOLIDATED
30 JUNE 2020
$
46,123
46,123
CONSOLIDATED
30 JUNE 2021
$
565,068
42,567
(12,692)
26,199
621,142
CONSOLIDATED
30 JUNE 2020
$
554,919
52,715
212,764
25,754
846,152
CONSOLIDATED
30 JUNE 2021
$
53,317
53,317
CONSOLIDATED
30 JUNE 2020
$
97,150
97,150
Other receivables include amounts outstanding for goods and services tax (GST) of $49,274 (2020: $95,196),
interest receivable of $592 (2020: $1,954) and reimbursements $3,451 (2020: $0).
GST amounts are non‐interest bearing and have repayment terms applicable under the relevant government
authorities. No trade and other receivables are impaired or past due.
St George Mining Limited – Annual Report 2021
P 41
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(b)
Other Assets
Prepayments
11
(a)
RIGHT OF USE ASSET AND LEASE LIABILITY
Right of use asset
Cost
Accumulated depreciation
Carrying value at end of period
Opening net carrying value
Additions
Depreciation for the period
Carrying value at end of period
(b)
Lease Liability
Current
Property lease liability
Non‐Current
Property lease liability
Total lease liabilities
CONSOLIDATED
30 JUNE 2021
$
70,463
70,463
CONSOLIDATED
30 JUNE 2020
$
147,056
147,056
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
168,225
(118,196)
50,029
117,029
‐
(67,000)
50,029
168,225
(51,196)
117,029
168,225
‐
(51,196)
117,029
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
37,701
18,995
56,696
67,482
56,696
124,178
Property leases
The above right‐of‐use asset (ROU) and lease liability relate to the office lease and storage lease entered into by
the Group. The lease has been accounted in accordance with AASB 16 adopted by the Group on 1 July 2019 under
the modified retrospective approach.
The right‐of‐use asset is measured at the amount equal to the lease liability at initial recognition and then
amortised over the life of the lease. The lease liability and ROU asset at initial recognition is $168,225.
The right‐of‐use asset is being depreciated over the lease term on a straight‐line basis which is approximately 15
and 24 months for the office and storage lease, respectively, in place at 30 June 2021. Depreciation expense of
$67,000 (2020: $51,196) was included in corporate administration expense in the consolidated statement of profit
or loss and other comprehensive income.
At initial recognition, the lease liability was measured as the present value of minimum lease payments using the
Group’s incremental borrowing rate of 11.24%. The incremental borrowing rate was based on the unsecured
interest rate that would apply if finance was sought for an amount and time period equivalent to the lease
requirements of the Group. Each lease payment is allocated between the liability and interest expense. The
St George Mining Limited – Annual Report 2021
P 42
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
interest expense of $10,571 (2020: $11,563) was included in finance expense in the consolidated statement of
profit or loss and other comprehensive income. Lease payments during the year was $78,053 including interest.
Option to extend or terminate
The Group uses hindsight in determining the lease term where the contract contains options to extend or
terminate the lease.
12
PLANT AND EQUIPMENT
Plant and Equipment
At Cost
Accumulated depreciation
Total plant and equipment
Plant and Equipment
Carrying amount at the beginning of the year
Additions
Disposals
Depreciation expense
Total carrying amount at end of year
13
CURRENT LIABILITIES
Trade and other payables
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
137,415
(109,090)
28,325
45,320
‐
‐
(16,995)
28,325
137,836
(92,516)
45,320
50,384
17,022
‐
(22,086)
45,320
CONSOLIDATED
30 JUNE 2021
$
591,294
591,294
CONSOLIDATED
30 JUNE 2020
$
1,078,347
1,078,347
Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade
and other payables are considered to be the same as their fair values due to their short‐term nature. As at 30
June 2021 $13,576 (2020: $92,384) was past 30 days due.
14
BORROWINGS
Credit Facility
At the beginning of the year
Credit facility drawn down
Repayment of credit facility
Interest Accrued
At the beginning of the year
Accrued for the year
Repayment during the year
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
‐
‐
‐
‐
‐
‐
‐
‐
792,000
58,000
(850,000)
‐
62,424
43,030
(105,454)
‐
St George Mining Limited – Annual Report 2021
P 43
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
15
ISSUED CAPITAL
Australian Dollar $
Issued and paid up capital
(a)
At the beginning of the reporting period
July 2019: 33,000,000 shares issued at $0.10 per share
October 2019: 44,300,000 shares issued at $0.15 per share
May 2020: 45,277,814 shares issued at $0.080
June 2020: 45,000,000 shares issued at $0.080
May 2021: 85,365,854 shares issued at $0.082
Exercise of Options
Share based payments (i)
Transactions costs arising from issue of shares
At reporting date 589,190,937 (30 June 2020: 502,889,079)
fully paid ordinary shares
Movements in Ordinary Shares
At the beginning of the reporting period
Shares issued during the year
July 2019: 33,000,000 shares issued at $0.10 per share
October 2019: 44,300,000 shares issued at $0.15 per share
May 2020: 45,277,814 shares issued at $0.080
June 2020: 45,000,000 shares issued at $0.080
May 2021: 85,365,854 shares issued at $0.082
Options exercised during the year
Share based payments
At reporting date
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
50,695,011
‐
‐
‐
‐
7,000,000
10,858
83,100
(452,638)
34,366,720
3,300,000
6,645,000
3,622,226
3,600,000
‐
720
(839,655)
57,336,331
50,695,011
Number
502,889,079
‐
‐
‐
‐
85,365,854
54,297
881,707
589,190,937
Number
335,307,665
33,000,000
44,300,000
45,277,814
45,000,000
‐
3,600
‐
502,889,079
(i)
(a)
(b)
During the year the following share‐based payments were made:
600,000 fully paid ordinary shares were issued at $0.10 per share as consideration to acquire an
exploration licence;
281,707 fully paid ordinary shares were issued at $0.082 per share as consideration for capital raising
costs.
Movements in Performance Rights
At the beginning of the reporting period
Changes to Performance Rights issued during the year
Performance Rights cancelled during the year
Issued during the year (i)
At reporting date
Number
Number
172
(32)
125
265
152
‐
20
172
(i)
The Company issued 125 performance rights (2020: 20) during the year. Please refer to note 19.
St George Mining Limited – Annual Report 2021
P 44
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(b) Reserve
Movements in reserve
At the beginning of the year
Expiry of options transferred to accumulated losses
Expiry of performance rights
Reversal of performance rights
Option based payments (i)
Share based payments expense
At reporting date
(i)
Performance rights expense (see note 19).
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
588,369
(9,500)
(88,000)
(588,882)
‐
756,438
658,425
476,722
(269,151)
‐
‐
250
380,548
588,369
A summary of the outstanding options at 30 June 2021 in the Company is listed below:
Class
Unlisted Options
Number of Options
2,500,000
Exercise Price
$0.15
Expiry Date
31 July 2022
16
ACCUMULATED LOSSES
Accumulated losses at the beginning of the year
Loss for the year
Expiry of options transferred from accumulated losses
Accumulated losses at the end of the year
17
LOSS PER SHARE
Basic loss per share after income tax attributable to
members of the Company (cents per share)
Diluted loss per share (cents per share)
Weighted average number of shares on issue during the
financial year used in the calculation of basic earnings
per share
Weighted average number of ordinary shares for
diluted earnings per share
CONSOLIDATED
30 JUNE 2021
$
(43,873,737)
(8,322,413)
9,500
(52,186,650)
CONSOLIDATED
30 JUNE 2020
$
(35,557,987)
(8,584,901)
269,151
(43,873,737)
CONSOLIDATED
30 JUNE 2021
$
CONSOLIDATED
30 JUNE 2020
$
(1.61)
(1.61)
(2.12)
(2.12)
2021
Number
2020
Number
515,459,075
404,418,783
515,459,075
404,418,783
18
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
(a)
Reconciliation of cash and cash equivalents
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash at bank
and in hand and short‐term deposits with an original maturity of three months or less, net of outstanding bank
overdrafts.
St George Mining Limited – Annual Report 2021
P 45
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Current – cash at bank
CONSOLIDATED
30 JUNE 2021
$
6,370,756
6,370,756
CONSOLIDATED
30 JUNE 2020
$
8,310,582
8,310,582
(b)
Reconciliation of loss after tax to net cash flows from operations
Loss after income tax
Share based payments
Depreciation expense
Lease interest
Tenement acquisitions
(Increase)/decrease in assets
Trade and other receivables
Other assets
Increase/(decrease) in liabilities
Trade and other payables
Provisions
CONSOLIDATED
30 JUNE 2021
$
(8,322,413)
79,556
83,995
10,571
95,648
43,833
77,594
(487,061)
50,823
(8,367,454)
CONSOLIDATED
30 JUNE 2020
$
(8,584,901)
380,547
73,282
‐
‐
(74,837)
232,361
(2,476,089)
(18,324)
(10,467,961)
Non‐cash investing and financing activities:
(i)
(ii)
19
(i)
600,000 shares were issued at $0.10 per share to acquire an exploration licence;
281,7070 shares were issued at $0.082 per share on consideration for capital raising costs.
SHARE BASED PAYMENTS
On 16 July 2018 at the general meeting of shareholders, the Company agreed and Shareholders approved
the issue of 58 performance rights to Directors of the Company. An additional 67 performance rights were
issued to employees of the Company.
The Performance Rights issued in the prior year have the following milestones attached to them:
(i)
Class A Performance Rights: in the event that the Undiluted Market Capitalisation of the Company is equal
to or higher than AU$100,000,000.00 for a minimum of 10 consecutive trading days the vesting condition
shall be deemed satisfied.
(ii) Class B Performance Rights: in the event that the Undiluted Market Capitalisation of the Company is equal
to or higher than AU$150,000,000.00 for a minimum of 10 consecutive trading days, the vesting condition
shall be deemed satisfied.
(iii) Class C Performance Rights: the Company announces an inferred 2012 JORC compliant resource at any
Project of not less than:
(a)
(b)
(c)
in regard to a gold resource, 1,000,000 ounces of Au; or
in regard to a nickel resource, 50,000t contained Ni; or
in regard to a cobalt resource, 10,000t contained Co.,
Each performance right converts to 50,000 fully paid ordinary shares on achievement of the milestone.
St George Mining Limited – Annual Report 2021
P 46
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Performance rights issued during the year have the following milestones attached to them:
(iv)
(v)
(vi)
Class D Performance Rights: An announcement by the Company to the Australian Securities Exchange
(ASX) is made by 30 June 2021 stating that the Company has made a Decision to Mine at the Mt Alexander
Project.
Class E Performance Rights: An announcement by the Company to the ASX is made by 30 June 2022
stating that the Company has commenced production at the Mt Alexander Project of Nickel that will be
commercially sold under an offtake or sales agreement.
Class F Performance Rights: An announcement by the Company to the ASX is made by 30 June 2022
stating that the Company has defined an inferred 2012 JORC compliant resource at the Mt Alexander
Project of not less than 100,000 tonnes contained nickel based on a cut‐off grade of not less than 0.5%.
(vii) Class G Performance Rights: drill intersections of economically significant mineralisation at the
Company’s Paterson Project by 30 June 2022 that the Board believes are indicative of the discovery of an
ore deposit.
The performance rights were ascribed the below value:
Class
Date of Issue
Number of
Performance
Rights (i)
Expiry Date
Number of
Ordinary Shares
on Achievement
Price of
Shares
($)
Total Value ($)
(ii)
Expense for the
period ($)
Class A (iv)
Total Class A
Class B (iv)
Total Class B
Class C (v)
Total Class C
Class D
Class E
Class F
Class G
Total D‐G
Total
Class D (iii)
Total
(i)
(ii)
(iii)
(iv)
(v)
15.08.18
17.12.18
03.12.19
‐
15.08.18
17.12.18
03.12.19
‐
25
8
5
38
25
8
5
38
31.07.21
31.07.21
15.08.21
31.07.21
31.07.21
15.08.21
1,250,000
400,000
250,000
1,900,000
1,250,000
400,000
250,000
1,900,000
0.125
0.135
0.135
‐
0.125
0.135
0.135
‐
156,250
54,000
33,750
244,000
156,250
54,000
33,750
244,000
52,036
20,813
19,910
92,759
52,036
20,813
19,910
92,759
‐
(273,438)
(63,979)
(24,295)
(361,712)
31.07.21
31.07.21
15.08.21
30.06.21
30.06.22
30.06.22
30.06.22
‐
‐
70
16
10
96
32
32
45
16
125
297
(32)
265
0.125
0.135
0.135
‐
0.110
0.110
0.110
0.110
‐
‐
‐
‐
15.08.18
17.12.18
03.12.19
‐
24.07.20
24.07.20
24.07.20
24.07.20
‐
‐
Cancelled
‐
3,500,000
800,000
500,000
4,800,000
1,600,000
1,600,000
2,250,000
800,000
6,250,000
14,850,000
(1,600,000)
13,250,000
Each Performance Right will convert into 50,000 shares.
The value of the rights was determined as per the date the rights were issued.
32 Class D performance rights were cancelled during the year as the vesting conditions were not
fulfilled.
Subsequent to the year end the performance rights lapsed and amount was reversed.
At year end it was deemed that the Class C Performance Rights were unlikely to vest given the rights
were scheduled to expire on 15 August 2021 and amounts expensed in the prior years were
reversed in the current year.
437,500
108,000
67,500
613,000
176,000
176,000
247,500
88,000
687,500
1,788,500
(176,000)
1,612,500
88,000
123,750
44,000
255,750
79,556
‐
79,556
‐
It has been deemed that the milestones occurring for the performance rights on issue as at reporting date will
more likely than not occur and therefore expenses were accounted in full over the vesting period.
Each performance rights converts to 50,000 fully paid ordinary shares on achievement of the milestone.
St George Mining Limited – Annual Report 2021
P 47
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Of the above performance rights granted, the following were issued to key management personnel:
Key Management
Personnel
J Prineas
Class A
Class B
Class C
Class E
Class F
J Dawson
Class A
Class B
Class C
Class E
Class F
S Shipway
Class A
Class B
Class C
Class E
Class F
Grant Date
Number of
Performance Rights
15.08.18
15.08.18
15.08.18
24.07.20
24.07.20
03.12.19
03.12.19
03.12.19
24.07.20
24.07.20
15.08.18
15.08.18
15.08.18
24.07.20
24.07.20
10
10
40
8
10
5
5
10
5
6
5
5
10
5
6
A summary of the movements of all the Company options issued as share based payments is as follows:
Options outstanding as at 30 June 2019
Granted
Forfeited
Exercised
Expired
Options outstanding as at 30 June 2020
Granted
Forfeited
Exercised
Expired
Options outstanding as at 30 June 2021
Options exercisable as at 30 June 2021
Options exercisable as at 30 June 2020
Number
28,079,714
2,500,000
‐
(3,600)
(3,500,000)
27,076,114
‐
‐
(54,297)
(24,521,817)
2,500,000
2,500,000
27,076,114
Weighted
Average Exercise
Price $
0.206
0.15
‐
0.20
0.25
0.206
‐
‐
0.20
0.20
0.15
‐
‐
The weighted average remaining contractual life of options outstanding at the year‐end was 1.08 years (2020:
1.18 years). The weighted average exercise price of outstanding options at the end of the report period was $0.15
(2020: $0.20).
20
(a)
COMMITMENTS AND CONTINGENCIES
Commitment
Mineral exploration commitments
The Group has the following minimum exploration expenditure requirements in connection with its exploration
tenements.
St George Mining Limited – Annual Report 2021
P 48
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
Not later than one year
Later than one year but not later than two years
(b)
Contingent liabilities and commitments
30 June
2021
$
350,963
329,117
680,080
30 June
2020
$
447,399
557,523
1,004,922
The Group fully owns three subsidiaries, Desert Fox Resources Pty Ltd, Blue Thunder Resources Pty Ltd and Destiny
Nickel Pty Ltd, the main activities of which are exploration. The effect of these subsidiaries is to make the St George
Mining owned subsidiaries contractually responsible for any transactions undertaken by the subsidiary. The parent
entity has provided certain guarantees to third parties whereby certain liabilities of the subsidiary are guaranteed.
There are no contingent liabilities as at the date of this report.
21
EVENTS SUBSEQUENT TO BALANCE DATE
On 15 August 2021 a total of 172 performance were cancelled, unvested.
Other than the above there have been no matters or circumstances that have arisen since the end of the financial
year which significantly affected or could 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.
22
(a)
FINANCIAL INSTRUMENTS
Interest Rate Risk
The Group’s exposure to interest rate risk, which is the risk that the financial instrument’s value will fluctuate as a
result of changes in market interest rates and the effective weighted average interest rates on those financial
assets and financial liabilities, is as follows:
2021
Note
Financial assets
Cash and cash equivalents
Trade and other receivables
Security bond
Financial liabilities
Trade and other payables
Lease liability
18(a)
10(a)
‐
13
11(b)
Floating
interest
rate
Fixed
interest
rate
Non‐
interest
bearing
Total
Weighted
average
interest rate
$
$
$
$
%
6,292,629
‐
68,658
6,361,287
‐
‐
‐
‐
78,127
53,317
1,000
132,444
6,370,756
53,317
69,658
6,493,731
0.16
‐
0.10
‐
‐
‐
‐
‐
56,696
56,696
591,294
‐
591,294
591,294
56,696
647,990
‐
11.24%
‐
St George Mining Limited – Annual Report 2021
P 49
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
2020
Note
Financial assets
Cash and cash equivalents
Trade and other receivables
Security bond
Financial liabilities
Trade and other payables
Lease liability
18(a)
10(a)
‐
13
11(b)
Floating
interest
rate
Fixed
interest
rate
Non‐
interest
bearing
Total
Weighted
average
interest rate
$
$
$
$
%
8,250,274
‐
‐
8,250,274
20,000
‐
29,659
49,659
40,308
97,150
1,000
138,458
8,310,582
97,150
30,659
8,438,391
0.28%
‐
‐
‐
‐
‐
‐
‐
124,178
124,178
1,078,347
‐
1,078,347
1,078,347
124,178
1,202,525
‐
11.24%
‐
Based on the balances at 30 June 2021 a 1% movement in interest rates would increase/decrease the loss for the
year before taxation by 63,046 (2020: $81,758).
(b)
Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets is the carrying amount of those assets, net of any allowance for doubtful debts, as
disclosed in the statement of financial position and notes to the financial report.
The Group does not have any material credit risk exposure to any single debtor or group of debtors under financial
instruments entered into by the Group.
(c)
Financial liabilities
Financial liabilities are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised costs using the effective interest method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting
date, the loans or borrowings are classified as non‐current.
The contractual maturities of the Group’s financial liabilities are as follows:
Contractual maturities of
financial liabilities
As at 30 June 2021
Non‐derivatives
Lease liability
Trade and other payables
Total non‐derivatives
(d)
Net Fair Values
Less than 6
months
6 – 12
months
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash flows
Carrying amount
(assets)/liabilities
26,942
591,294
618,236
14,708
‐
14,708
19,803
‐
19,803
‐
‐
‐
‐
‐
‐
61,453
591,294
652,747
56,696
591,294
647,990
The carrying amount of financial assets and financial liabilities recorded in the financial statements represent their
respective net fair value and is determined in accordance with the accounting policies disclosed in note 2 to the
financial statements.
St George Mining Limited – Annual Report 2021
P 50
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(e)
Financial Risk Management
The Group’s financial instruments consist mainly of deposits with recognised banks, investment in term deposits
up to 90 days, accounts receivable, accounts payable and borrowings. Liquidity is managed, when sufficient funds
are available, by holding sufficient funds in a current account to service current obligations and surplus funds
invested in term deposits. The directors analyse interest rate exposure and evaluate treasury management
strategies in the context of the most recent economic conditions and forecasts. The main risks the Group is
exposed to through its financial instruments are the depository banking institution itself, holding the funds, and
interest rates. The Group's credit risk is minimal as being an exploration Company, it has no significant financial
assets other than cash and term deposits.
(f)
Foreign Currency Risk
The Group is not exposed to any foreign currency risk as at 30 June 2021.
(g)
Market Price Risk
The Group is not exposed to market price risk as it does not have any investments other than an interest in the
subsidiaries.
23
RELATED PARTIES
The Group has 100% owned subsidiaries Blue Thunder Resources Pty Ltd, Desert Fox Resources Pty Ltd and Destiny
Nickel Pty Ltd. St George Mining is required to make all the financial and operating decisions of these subsidiaries.
Subsidiaries of St George Mining
Limited
Desert Fox Resources Pty Ltd
Blue Thunder Resources Pty Ltd
Destiny Nickel Pty Ltd
Country of Incorporation
Percentage Owned %
Australia
Australia
Australia
30 June 2021
100%
100%
100%
30 June 2020
100%
100%
100%
At 30 June 2021 balances due from the subsidiaries were:
Blue Thunder Resources Pty Ltd
Desert Fox Resources Pty Ltd
Destiny Nickel Pty Ltd
30 JUNE 2021
$
22,521,900
23,307,988
‐
45,829,888
30 JUNE 2020
$
17,174,873
22,771,465
‐
39,946,338
These amounts comprise of funds provided by the parent company for exploration activities. The amounts were
fully provided for as at 30 June 2021 and have been eliminated on consolidation.
During the year, the Company paid $61,711 (2020: $ Nil) on behalf of American West Metals Limited (American
West Metals), of which John Prineas is a director. American West Metals fully reimbursed the company $61,711
(2020: Nil) for these expenses during the year.
St George Mining Limited – Annual Report 2021
P 51
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
24
SEGMENT REPORTING
For management purposes, the Group is organised into one main operating segment, which involves the
exploration of minerals in Australia. All of the Group’s activities are interrelated, and discrete financial information
is reported to the Board as a single segment. Accordingly, all significant operating decisions are based upon
analysis of the Group as one segment.
The financial results from this segment are equivalent to the financial statements of the Group as a whole.
The accounting policies applied for internal reporting purposes are consistent with those applied in the
preparation of these financial statements.
25
JOINT VENTURES
The Group recognises that joint ventures are a key mechanism for sharing of risk on individual exploration projects.
Where appropriate for a particular project, the Group will consider a joint venture with a suitable party in order
to share the exploration risk. Those funds otherwise set aside for the project will be employed to advance another
project.
There were no joint ventures in place during and at the end of the financial year.
26
(a)
PARENT COMPANY DISCLOSURE
Financial Position
Australian Dollar ($)
Assets
Current assets
Non‐current assets
Total assets
Liabilities
Current liabilities
Non‐current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
30 JUNE 2021
$
30 JUNE 2020
$
6,492,139
78,484
6,570,623
805,551
18,995
824,546
5,746,077
8,470,127
192,007
8,662,134
1,281,454
56,696
1,338,150
7,323,984
57,336,331
658,425
(52,248,679)
5,746,077
50,695,010
588,369
(43,959,395)
7,323,984
St George Mining Limited – Annual Report 2021
P 52
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
(b)
Financial Performance
Australian Dollar $
Profit (loss) for the year
Other comprehensive income
Total comprehensive income (loss)
30 JUNE 2021
$
(8,298,784)
‐
(8,298,784)
30 JUNE 2020
$
(8,530,951)
‐
(8,530,951)
During the year $9,500 was transferred from the Reserves to accumulated losses on expiry of options.
(c)
Guarantees entered into by the Parent Entity
Other than as disclosed in Note 20 (b) the parent entity has not provided guarantees to third parties as at 30 June
2021.
St George Mining Limited – Annual Report 2021
P 53
DIRECTOR’S DECLARATION
In the opinion of the Directors of St George Mining Limited (“the Company”)
(a)
The financial statements and the notes and the additional disclosures included in the directors’ report
designated as audited of the Group are in accordance with the Corporations Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
performance for the year ended that date; and
(ii)
Complying with Accounting Standards and Corporations Regulations 2001, and:
(b)
(c)
There are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
The financial statements and notes comply with International Financial Reporting Standards as disclosed
in note 2.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act
2001.
On behalf of the Board
John Prineas
Executive Chairman
Dated: 1 September 2021
Perth, Western Australia
St George Mining Limited – Annual Report 2021
P 54
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
1 September 2021
Board of Directors
St George Mining Limited
Suite 2, 28 Ord Street
West Perth WA 6005
Dear Directors
RE: ST GEORGE MINING LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of St George Mining Limited.
As the Audit Director for the audit of the financial statements of St George Mining Limited for the year ended
30 June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation.
Stantons Is a member of the Russell
Bedford International network of firms
P 55
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ST GEORGE MINING LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of St George Mining Limited (“the Company”) and its subsidiaries (“Group”),
which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement
of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
We have defined the matters described below to be the key audit matter to be communicated in our report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter.
Liability limited by a scheme approved under Professional Standards Legislation.
Stantons Is a member of the Russell
Bedford International network of firms
P 56 Key Audit Matters
Issued Capital
(refer to Note 15(a))
The Group’s Issued Capital amounted to $57,336,331.
During the reporting year, 86,301,858 ordinary shares
were issued through placements, exercise of options
and shares issued, as consideration for services and
acquisition of exploration interests, resulting in an
increase in Contributed Equity of $6,641,320 net of
capital raising costs (refer to Note 15(a) to the financial
report).
Contributed Equity is a key audit matter due to:
•
•
the quantum of share capital issued during the
year; and
the varied nature of the movements during the
year.
We have spent significant audit effort on ensuring
the Issued Capital was appropriately accounted for
and disclosed.
How the matter was addressed in the audit
Inter alia, our audit procedures included the following:
i. Obtaining an understanding of the underlying
transactions;
ii. Verifying all issued capital movements to the
relevant ASX announcements;
iii. Vouching proceeds from capital raisings to bank
relevant supporting
statements and other
documentation;
iv. Verifying underlying capital raising costs and
ensuring these costs were appropriately recorded;
v. Ensuring consideration for services provided are
measured in accordance with AASB 2 Share-
Based Payments and agreed the related costs to
relevant supporting documentation; and
vi. Ensuring
the
relevant
requirements of
accounting standards and disclosures achieve fair
presentation and
financial
statements to ensure appropriate disclosures are
made.
reviewing
the
the
P 57 Key Audit Matters
How the matter was addressed in the audit
Inter alia, our audit procedures included the following:
i. Verifying
the
inputs and examining
the
assumptions used in the Group’s valuation of
performance rights, being the share price of
the underlying equity,
to maturity
(expected life) and grant date;
time
ii. Challenging management’s assumptions in
relation to the likelihood of achieving the
performance conditions;
iii. Assessing the fair value of the calculation
through re-performance using appropriate
inputs; and
iv. Assessing the accuracy of the share-based
payments expense and the adequacy of
disclosures made by the Group in the financial
report.
Share based payments - Performance rights
(refer to Note 2(g) and Note 19)
As referred to in Note 19 to the consolidated financial
statements, the Company awarded 125 performance
rights (each performance right to convert into 50,000
ordinary shares on conversion). The awards vest subject
to the achievement of certain vesting conditions. 32
performance rights that were granted during the year were
cancelled due to vesting conditions not being met. The
company also had on issue 172 performance rights
granted in prior year which are yet to vest.
The Group valued the performance rights based on the
share price at grant date and estimated likelihood of
performance conditions being achieved over the vesting
period for each tranche of awards. The fair value of the
performance rights at the grant date was $687,500, vesting
over two years from the date of issue.
The Group has performed calculations to record the
related share-based payment expense of $79,556 in the
consolidated statement of profit or
loss and other
comprehensive
income, after reversal of previously
recognised expense in relation to performance rights that
the management do not expect to vest.
Due to the complex nature of the transactions and
estimates used in determining the valuation of the share-
based payment arrangements and vesting periods, we
consider the Group’s calculation of the share-based
payment expense to be a key audit matter.
In determining the fair value of the awards and related
expense, the Group used assumptions in respect of future
market and economic conditions as well as estimates of
achievement of certain exploration targets.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company's annual report for the year ended 30 June 2021 but does not include the financial report and our
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
P 58 Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the audit. We remain solely responsible for our audit opinion.
P 59 We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore key audit matters. We describe these matters
in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 20 to 24 of the directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of St George Mining Limited for the year ended 30 June 2021 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
1 September 2021
P 60 SHAREHOLDER INFORMATION
1
Distribution of holders
As at 1 September 2021 the distribution of shareholders was as follows:
Ordinary shares
Size of holding
1 – 1,000
1,001 –5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
2
Voting rights
Number of holders
255
432
657
2,045
986
4,375
There are no restrictions to voting rights attached to the ordinary shares. On a show of hands every member
present in person will have one vote and upon a poll, every member present or by proxy will have one vote each
share held.
3
Substantial shareholders
The company has no substantial shareholders who have notified the Company in accordance with Section 671B
of the Corporation Act 2001.
4
Top 20 shareholders
The names of the 20 largest shareholders on the share register as at 1 September 2021, who hold 20.86% of the
ordinary shares of the Company, were as follows;
Shareholder
Citicorp Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited
Mr John Prineas
Aee Gold AG
Impulzive Pty Ltd
Allcap Pty Ltd
Ms Betty Frilingos
Twynam Investments Pty Ltd
BNP Paribas Noms Pty Ltd
Mr Paul Sumade Lee
Mr Lee Ramon Cunnington + Mrs Nancy Lynne Cunnington
Mr Christopher Bell + Mrs Jennifer Bell
Ms Swee Hoong Tan
Chaos Investments Pty Limited
Mr Jacques Hughes Lucas
Northmead Holdings Pty Ltd
Mr Paul Malcolm Koshy
Mrs Karen Dawson
DDH 1 Drilling Pty Ltd
Impulzive Pty Ltd
Number
15,898,152
13,080,427
10,504,501
8,536,586
8,504,641
6,361,219
6,318,182
6,097,561
5,553,226
4,770,833
4,598,149
4,402,592
4,078,600
3,700,000
3,800,078
3,500,000
3,403,665
3,294,121
3,106,060
3,096,480
St George Mining Limited – Annual Report 2021
P 61
SHAREHOLDER INFORMATION
5
Consistency with business objectives
The Company has used its cash and assets in a form readily convertible to cash that it had at the time of listing
in a way the consistent with its stated objectives.
St George Mining Limited – Annual Report 2021
P 62
TENEMENT INFORMATION
St George Mining Limited mineral interests as at 1 September 2021
MT ALEXANDER:
Tenement
ID
E29/638
E29/548
E29/954
E29/962
E29/972
E29/1041
E29/1093
Registered Holder
Location
Blue Thunder Resources Pty Ltd
Blue Thunder Resources Pty Ltd
Blue Thunder Resources Pty Ltd
Blue Thunder Resources Pty Ltd
Blue Thunder Resources Pty Ltd
Blue Thunder Resources Pty Ltd
Blue Thunder Resources Pty Ltd
Mt Alexander
Mt Alexander
Mt Alexander
Mt Alexander
Mt Alexander
Mt Alexander
Mt Alexander
PATERSON:
Tenement
ID
E45/5226
E45/5422
BROADVIEW:
Tenement
ID
Registered Holder
Location
St George Mining Limited
St George Mining Limited
Paterson
Paterson
Registered Holder
Location
E70/5525
E70/5526
St George Mining Limited
St George Mining Limited
Broadview
Broadview
Ownership
(%)
75
100
100
100
100
100
100
Ownership
(%)
100
100
Ownership
(%)
100
100
EAST LAVERTON:
Tenement
ID
Registered Holder
Location
E39/1518
E39/1572
E39/1608
E39/1667
E39/2027
E39/2028
E39/2029
E39/2030
Desert Fox Resources Pty Ltd
Desert Fox Resources Pty Ltd
Desert Fox Resources Pty Ltd
Desert Fox Resources Pty Ltd
Desert Fox Resources Pty Ltd
Desert Fox Resources Pty Ltd
Desert Fox Resources Pty Ltd
Desert Fox Resources Pty Ltd
East Laverton Property
East Laverton Property
East Laverton Property
East Laverton Property
East Laverton Property
East Laverton Property
East Laverton Property
East Laverton Property
Ownership
(%)
100
100
100
100
100
100
100
100
REGIONAL TENEMENTS:
Tenement
ID
Registered Holder
Location
E69/3772
E70/5626
St George Mining Limited
St George Mining Limited
Gary Highway
Boddington East
Ownership
(%)
100
100
St George Mining Limited – Annual Report 2021
P 63
St George Mining Limited ACN 139 308 973
www.stgeorgemining.com.au
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