ACN 139 308 973
ANNUAL REPORT 2022
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
Level 2, Suite 2
28 Ord Street
West Perth WA 6005
Registered Office
Level 2, Suite 2
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
4
20
28
29
30
31
32
56
57
58
63
64
St George Mining Limited – Annual Report 2022
P 2
CHAIRMAN’S LETTER
Dear Shareholders
On behalf of the Board, I am pleased to present the Annual Report of St George Mining Limited (ASX: SGQ)
for 2022 – a very busy and productive year for the Company.
The Company’s portfolio of clean energy metals projects was increased to four this year with the addition
of the 100% owned Ajana Project. This new project is near the western margin of the Yilgarn Craton, an
area of renewed interest following the major discovery by Chalice Mining at its Julimar project.
In addition, the lithium potential at our flagship Mt Alexander Project has emerged as a tremendous
exploration opportunity that complements the high‐grade nickel‐copper sulphides already discovered at
the Project. Lithium at Mt Alexander has quickly grown from a speculative opportunity to tangible prospects
for economic mineralisation.
The scale of the project is impressive with pegmatite outcrops across a zone of more than 15km including
a section extending for 1.7km where lithium‐bearing pegmatites have already been confirmed in rock chips.
We believe this lithium story will continue to develop rapidly.
We deployed cutting edge geophysics at Mt Alexander to broaden the search for significant nickel‐copper
large‐scale targets have been
sulphide mineralisation. Several
including promising
electromagnetic and seismic anomalies. These new targets are in unexplored areas of the Project and a
credit to the systematic and disciplined exploration approach of our team.
identified
At the Paterson Project, we completed our maiden diamond drill programme. Drill core showed evidence
of hydrothermal and mineralising processes within our ground, supporting the presence of a favourable
geological setting to potentially host copper and gold systems. This is an important milestone for
exploration and a big step forward in confirming the prospectivity of the Paterson Project.
The Ajana and Broadview Projects are located in sought after addresses in the western Yilgarn. These are
greenfields projects with exciting early‐stage potential for a new nickel‐copper‐PGE find.
The foundations for exploration success have been laid. We have high‐quality projects in the Tier 1 mining
jurisdiction of Western Australia with an experienced and enthusiastic team of professionals driving first‐
class exploration. The potential for a breakthrough discovery is excellent and we look forward to conducting
drilling programmes in the coming months.
The demand for the commodities we are exploring for is forecast to rise to unprecedented levels as the
multi‐decade decarbonisation of the planet continues. We are well positioned to deliver increasing
shareholder wealth over the coming years as we build our business around high‐demand clean energy
metals.
We look forward to another productive year ahead.
On behalf of the Board of Directors, I thank shareholders for your continuing support.
John Prineas
Executive Chairman
St George Mining Limited – Annual Report 2022
P 3
REVIEW OF OPERATIONS
Operational activities for the year ending 30 June 2022 centred on systematically progressing the
Company’s four projects in Western Australia – all focused on clean energy metals.
Mt Alexander
• High‐grade Ni‐Cu‐PGEs discovered near‐surface with new, large‐scale drill targets
• Prospective for lithium pegmatite mineralisation
Paterson
• Prospective for copper‐gold mineralisation
Ajana
•
Large layered mafic intrusion interpreted from magnetics; prospective for Ni‐Cu‐PGEs
Broadview
•
Two large interpreted intrusions; prospective for Ni‐Cu‐PGEs
St George Mining Limited – Annual Report 2022
P 4
REVIEW OF OPERATIONS
MT ALEXANDER PROJECT
High‐grade nickel‐copper sulphides and emerging lithium province
Geophysics identify large‐scale nickel‐copper targets:
Geophysical surveys were deployed at Mt Alexander during the year to assist in generating new targets
for nickel‐copper sulphides. These surveys were focused on large areas of interest that remain
underexplored or unexplored.
Figure 1 shows the areas covered by the new seismic and electromagnetic (EM) surveys. Three 2D seismic
lines were completed encompassing 13‐line kilometres. Processing and modelling of the seismic data was
undertaken by external consultants at Rock Solid Seismic.
The moving loop EM (MLEM) survey utilised an ARMIT sensor and was completed with 200m close line
spacing and 100m stations. Modelling and interpretation of the EM data was completed by external
consultants at Newexco.
Figure 1 – map of geophysics surveys undertaken at Mt Alexander Project (against magnetic RTP 1VD)
showing the completed seismic survey lines and MLEM survey areas. Several high‐grade intersections
across the project area are also shown (as previously announced in ASX Releases).
Granite/greenstone contact:
The interpreted contact and related structures between the Mt Alexander greenstone belt and the
granites is considered prospective for nickel sulphide mineralisation. It is a setting that is known to host
high‐grade nickel in other parts of the Yilgarn Craton, including the Flying Fox and Spotted Quoll deposits
at Forrestania.
St George Mining Limited – Annual Report 2022
P 5
REVIEW OF OPERATIONS
in this setting,
in the
Typically
remobilisation and concentration of sulphide mineralisation. Mineral deposits formed by this structural
activity can be blind from surface as they are located below and/or within thick granites.
late‐stage granites can disrupt existing greenstones resulting
At Mt Alexander, the known occurrences of nickel sulphides in areas both north and south of the
granite/greenstone contact support the potential for nickel sulphides to be structurally remobilised
within the granites.
The MLEM survey that covered the granite/greenstone contact has identified three strong EM anomalies.
The modelled plates for these three EM anomalies are shown in Figure 2 and are summarised as follows:
Anomaly
Anomaly 1
Anomaly 2
Anomaly 3
Strike (m)
200
1000
800
Depth (m)
150
300
250
Conductivity (S)
3500
2000
2000
All three EM anomalies have a geophysical signature consistent with massive sulphides. Anomalies 2 and
3 are likely associated with the Western greenstone belt rather than the granite/greenstone contact.
Modelling of the EM data for these anomalies is ongoing. A further fixed loop EM (FLEM) survey is
proposed to better constrain the EM responses ahead of finalising drill targets.
Anomaly 1 is modelled as a discrete bedrock conductor located about 320m below surface and within
the granite/greenstone contact – an area of the Central greenstone belt that is interpreted to be offset
below surface by the later granites.
Figure 2 – map of the granite/greenstone area (against magnetic RTP 1VD) showing the three strong EM
anomalies identified by the MLEM survey as well as the new large seismic reflector.
St George Mining Limited – Annual Report 2022
P 6
REVIEW OF OPERATIONS
Significantly, the conductor is positioned adjacent to a large reflector identified in the new seismic survey;
see Figure 3. The reflector is flat‐lying with a strike of approximately 1,000m and varying thickness. The
reflector is interpreted to be the offset extension of the Central greenstone belt.
Anomaly 1 presents as a compelling target for potential nickel sulphide mineralisation. This area of
granite/greenstone contact has been named the Manta Prospect and will be prioritised for drilling.
Figure 3 – seismic data from Line 2 (looking west) highlighting the strong reflector and adjacent plate for
Anomaly 3. Planned drill holes are also shown.
Radar Prospect:
Radar is located in the eastern extension of the Cathedrals Belt which remains underexplored. The Radar
mineralised intercepts include MAD152 which returned 4.0m @ 3.0%Ni, 1.1% Cu, 2.2g/t PGE from 48m.
The MLEM survey over Radar has identified a strong EM anomaly to the south of the MAD152 discovery;
see Figure 1.
The large response is yet to be constrained and will require follow up FLEM to determine the position of
the source. It is currently located to the south of the east‐west trending Cathedrals Belt, suggesting that
the new EM anomaly could represent a repetition of the Cathedrals Belt mineralisation.
The new EM anomaly is coincident with a strong magnetic anomaly further supporting the exploration of
this target for nickel sulphide mineralisation. The existing nickel sulphide discoveries along the Cathedrals
Belt are all coincident with strong magnetic features.
Metallurgical test work supports economic potential:
A detailed metallurgical programme was completed during the year by XPS Expert Process Solutions, a
Glencore Company (“XPS”), based in Falconbridge, Canada. XPS are internationally recognised as leaders in
processing solutions for nickel‐copper sulphide mineralisation.
Testwork was undertaken on mixed massive and disseminated “life‐of‐mine” sulphide ore from the
Stricklands Deposit.
St George Mining Limited – Annual Report 2022
P 7
REVIEW OF OPERATIONS
A sequential flotation flowsheet was employed consisting of a copper float followed by a nickel float. A
rougher stage was followed by three cleaner stages and locked cycle testing.
Concentrate grades and recoveries for the locked cycle test are provided in Table 1 and Table 2 below.
Within locked cycle flotation testing the copper recovery was a combined 95.9% to the copper and nickel
concentrates, of which 80.9% of the copper occurred in a 27.8% Cu concentrate.
Nickel concentrate grade is 11.5% Ni with a nickel recovery of 68.7% to the nickel concentrate, equal to
95% of the nickel sulphide mineral content of the ore. Precious metals recoveries to the combined
concentrates were 74% for Au, 59% for Pd and 47% for Pt with both concentrates carrying the precious
metal content.
Table 1 ‐ Copper‐PGE‐Au concentrate
Cu
Grade
(%)
27.8
Cu
Recovery
(%)
80.9
Pd Grade
(g/t)
12.4
Pd
Recovery
(%)
26
Pt grade
(g/t)
Pt Recovery
(%)
Au grade
(g/t)
1.9
18
2.6
Au
Recovery
(%)
44.4
Table 2 ‐ Nickel‐PGE ‐Co concentrate
Ni Grade
(%)
11.5
Ni
Recovery
(%)
68.7
Pd Grade
(g/t)
3.32
Pd
Recovery
(%)
32.8
Pt grade
(g/t)
0.65
Pt
Recovery
(%)
28.9
Co grade
(%)
0.62
Co
Recovery
(%)
72.4
The concentrates produced do not contain any deleterious elements that could adversely affect their
saleability. Overall, the nickel and copper concentrates produced are considered of high quality which
would be commercially attractive to off‐take parties.
Expansion of known deposits:
All four shallow, high‐grade discoveries in the Cathedrals Belt – Stricklands, Cathedrals, Investigators and
Radar – remain open with potential for additional high‐grade nickel‐copper‐PGE mineralisation to be
delineated by further drilling.
Two diamond drill holes were completed during the year at Stricklands to test for the down‐dip continuity
of high‐grade mineralisation. Both drill holes – MAD209 and MAD210 – intersected nickel‐copper sulphide
mineralisation including massive sulphides, further extending the mineralised envelope for Stricklands.
These results confirm that the Stricklands Deposit is open to the west, north and north‐west. Further
expansion drilling will be prioritised for Stricklands as well as the other known deposits.
Emerging lithium potential:
Field mapping and rock chip sampling at Mt Alexander has confirmed numerous outcropping pegmatite
dykes occurring in swarms within St George’s tenements.
The pegmatite dykes strike approximately east‐west within a regional corridor interpreted to host the
major lithium discovery announced by Red Dirt Metals (ASX: RDT) at its Mt Ida Project to the south‐east
(see ASX Release by Red Dirt dated 28 September 2021 Mt Ida – A New Lithium Province).
St George Mining Limited – Annual Report 2022
P 8
REVIEW OF OPERATIONS
Assays from initial pegmatite rock chip sampling at Mt Alexander have returned anomalous values for
lithium, caesium, tantalum and rubidium supporting the potential for lithium mineralisation to occur at
depth.
In particular, assays returned high values of rubidium – a key indicator of fertile pegmatites in weathered
terrains such as the Mt Ida lithium province.
Figure 4 – photos of pegmatites from E29/962 (100% St George) with coarse grained purple crystals that
may be indicative of spodumene and lepidolite, subject to confirmation by portable XRD spectrometer
and laboratory analysis.
In recognition of this early exploration success, an expanded field mapping and rock chip sampling
programme is ongoing to identify areas for additional pegmatites and drilling. The current programme is
focused on two tenements where extensive pegmatite outcrops continue to be mapped – E29/638 (75%
St George; 25% IGO) and E29/962 (100% St George).
The east‐west striking pegmatite dykes mapped at these tenements occur along a north‐south trending
corridor parallel with the Copperfield Granite, which may be a source of the pegmatites. This pegmatite
corridor extends for more than 15km across St George’s tenure and can be traced southwards to the area
hosting lithium discoveries announced by Red Dirt at its Mt Ida Project.
The province around Mt Ida is emerging as a new lithium province since the significant high‐grade lithium
discovery by Red Dirt in September 2021.
In addition to St George and Red Dirt, significant exploration is underway in this region by:
Zenith Minerals (ASX: ZNC) in joint venture with EV Metals plc – see ASX Release by Zenith dated
23 May 2022 New Lithium Exploration Project Secured
St George Mining Limited – Annual Report 2022
P 9
REVIEW OF OPERATIONS
Hawthorn Resources (ASX: HAW) in joint venture with Hancock Prospecting – see ASX Release
by Hawthorn Resources dated 29 August 2022 Hancock executes agreement for nickel, lithium
and copper at Mt Bevan Project
The lithium prospectivity of this region is interpreted to be associated with the large Copperfield Granite.
The prospective LCT Pegmatite corridor is interpreted between the contact with the Copperfield Granite
in the east and the Ida Fault in the west; see Figure 5.
Figure 5 – map showing the interpreted prospective pegmatite corridor and the location of lithium
projects along strike to St George’s Mt Alexander Project (against magnetic RTP 1VD).
About the Mt Alexander Project:
The Mt Alexander Project is located 120km south south‐west 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.
St George Mining Limited – Annual Report 2022
P 10
REVIEW OF OPERATIONS
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 IGO Limited (25%). St George is the Manager
of the Project, with IGO retaining a 25% non‐contributing interest (in E29/638 only) until there is a decision
to mine. All other Project tenements are owned 100% by St George.
The Mt Alexander Project is also interpreted to host more than 15km of a LCT pegmatite corridor which is
known to host significant lithium mineralisation at the Mt Ida Project of Red Dirt Metals (ASX: RDT) located
to the south‐east of the Mt Alexander Project.
Figure 6 – 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 and north‐west
of the lithium discovery by Red Dirt Metals.
St George Mining Limited – Annual Report 2022
P 11
REVIEW OF OPERATIONS
PATERSON PROJECT
Copper and gold targets in world‐class region
A maiden diamond drill programme was completed during the year at the Paterson Project in what
represented a major escalation of our greenfields exploration at the Project. The drilling was designed to
test priority structural targets for the potential to host large copper‐gold systems.
Eight diamond drill holes were successfully completed for 2,133.9m drilled. Assays are pending.
The drill core for the completed holes shows locally intense alteration and hydrothermal veining with
multiple zones of sulphides. These features are evidence of hydrothermal and mineralising processes and
support the potential signature of mineralisation at the Paterson Project.
Left: Core from 236m depth within
PDD002 showing disseminated and
semi‐massive sulphide as void infill
within strongly altered breccia.
Below: Drill core from PDD003 (below,
top tray) and PDD004 (below, bottom
tray); both showing brecciated zones
with hydrothermal alteration.
These same lithologies host several gold‐copper deposits in the Paterson Province including Antipa
Minerals’ (ASX: AZY) Minyari Deposit (1.8Moz Au and 162kt Cu) and Rio Tinto’s’ (ASX: RIO) Winu deposit
(5.9Moz Au, 2.5Mt Cu) south of St George’s project area.
St George Mining Limited – Annual Report 2022
P 12
REVIEW OF OPERATIONS
Figure 7 – Regional
geological interpretation
and major deposits of the
northern Paterson
Province, highlighting the
similar geological setting
of St George’s project to
several know deposits.
Figure 8 shows the local geological interpretation based on geophysics and highlights the interpreted
anticline structural folds, granitic and mafic intrusions, and regional scale thrust faults at the Project area
– structural settings that are favourable for the accumulation of mineralisation.
Figure 8 – Paterson Project interpreted geology showing diamond drill holes against magnetics data.
St George Mining Limited – Annual Report 2022
P 13
REVIEW OF OPERATIONS
AJANA PROJECT
Unexplored ground in fertile mineral district
The new 100% owned Ajana Project was established during the year. The Project is located within the
Meso‐Proterozoic age Northampton mineral field, situated near the western margin of the Yilgarn Craton
– an area of renewed exploration activity following the discovery of Chalice Mining’s substantial Julimar
deposit in the western Yilgarn.
A large number of copper and lead‐zinc deposits were mined at Northampton between 1850 to 1973. The
mined deposits were relatively small and associated with outcropping mineralisation. The deposits are
structurally controlled and present as massive and disseminated sulphides.
Since mining ceased, there has been minimal exploration in the area and the vast majority of the
Northampton mineral field remains underexplored.
St George believes that modern exploration techniques and concepts, including the latest geophysical
surveys, have the potential to identify blind deposits of mineralisation that may be present under 20m to
100m of cover.
St George holds two granted exploration licences and two applications for exploration licences.
Figure 9 – location
map for the Ajana
Project showing the
granted and
pending exploration
licences.
St George Mining Limited – Annual Report 2022
P 14
REVIEW OF OPERATIONS
St George completed a detailed airborne magnetic survey covering the Ajana Project in early April 2022
which clearly defined a 20km‐long north‐northwest trending elliptical magnetically anomalous body. This
large Ajana magnetic anomaly includes several concentric features and is cut by the same dykes that host
the historic lead and zinc sulphide deposits in the Northampton mineral field.
Inversion modelling of the magnetic data by Newexco suggests the magnetic anomaly is indicative of a
late‐stage layered mafic intrusion – see Figure 10 – which may have potential to host Ni‐Cu‐PGE deposits
of similar type to IGO’s Nova/Bollinger mine and Chalice Mining’s substantial Julimar deposit.
Figure 10 – map of
the Ajana granted
exploration licences
with newly acquired
airborne magnetics
data set against
regional magnetics.
BOADVIEW PROJECT
Greenfields opportunity in emerging mineral province
The Broadview Project (100% St George) is located in the Wheatbelt 120km south‐east of Perth, near the
town of Brookton. The granted exploration licences cover two, approximately parallel 25km long north‐east
trending strongly magnetic features. These are
large
mafic/ultramafic intrusions that may be prospective for Ni‐Cu‐PGEs.
interpreted to potentially represent two
These unusual magnetic features cross‐cut the regional north‐west trending geology and appear to be
linked to the craton‐scale domain boundary interpreted at the eastern end of the licences (Figure 11).
St George Mining Limited – Annual Report 2022
P 15
REVIEW OF OPERATIONS
Figure 11 – map of the Broadview Project tenements overlaying magnetic data and highlighting
interpreted greenstones.
St George completed widely spaced auger soil sampling along existing roads within the licences. This
preliminary soil survey identified locally elevated Ni and Cu results.
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.
Engagement with the local community and farmers has been initiated to discuss St George’s planned
exploration and arrange access for drill programmes.
CORPORATE DEVELOPMENTS
Julian Hanna joins St George:
In March 2022, Julian Hanna was appointed General Manager, Growth and Development.
Mr Hanna has more than 35 years’ experience in the resources sector across a wide range of activities
including exploration, development, mining and corporate growth.
St George Mining Limited – Annual Report 2022
P 16
REVIEW OF OPERATIONS
Mr Hanna was co‐founder and Managing Director of nickel miner Western Areas Limited (ASX: WSA) for
12 years (from 2000 to 2012). During his tenure, Western Areas grew from a $6m IPO to Australia’s No.
1 independent nickel sulphide producer through the discovery and development of the high‐grade Flying
Fox and Spotted Quoll nickel sulphide deposits in Western Australia.
In 2013, Mr Hanna joined copper explorer MOD Resources Limited as Managing Director. Under his
leadership, MOD established a substantial licence holding in the very prospective and underexplored
Kalahari Copper Belt in Botswana and delivered exploration success through the discovery of the
significant T3 and A4 copper deposits.
Sandfire Resources Limited (ASX: SFR) acquired MOD in 2019 in a $167 million takeover and has since
begun progressing mine development of MOD’s discoveries.
Successful capital raising:
The Company completed a placement of new shares in March 2022 that raised $5,000,000 through the
issue of 92,327,602 fully paid ordinary shares at $0.052 per share.
John Prineas, Executive Chairman and Julian Hanna, committed to invest $200,000 and $100,000
respectively. The participation of John Prineas in the capital raise was approved by shareholders at a
General Meeting held on 10 May 2022.
The Company also launched a Share Purchase Plan in March 2022 which resulted in the issue of a further
12,576,923 fully paid ordinary shares at $0.052 per share.
Following the above share issuances, the Company has listed securities on issue as at the date of this
Report of:
Fully Paid Ordinary Shares ‐ 700,017,808
St George Mining Limited – Annual Report 2022
P 17
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 Mahon, a Competent
Person who is a Member of The Australasian Institute of Geoscientists. Mr Mahon is employed by St George
Mining Limited to provide technical advice on mineral projects, and he holds performance rights issued by the
Company.
Mr Mahon 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 Mahon 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 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
13 September 2021 Drilling of New Targets at Mt Alexander
14 October 2021 Diamond Drilling Underway at Mt Alexander
1 December 2021 Seismic Results Unlock Stand‐Out Targets
10 March 2022 Strong Metallurgical Results for Mt Alexander
29 March 2022 Exploration Update ‐ Mt Alexander
31 March 2022 Expansion Drill Programme – Mt Alexander
12 April 2022 Expansion Drill Programme – Mt Alexander
3 May 2022 Step Up in Exploration for St George
25 May 2022 St George Commences Drilling at the Paterson
23 June 2022 Exploration Update for St George Mining
13 July 2022 Drilling Update for Paterson Project
1 September 2022 New Nickel Targets at Mt Alexander
7 September 2022 Significant Lithium Potential at Mt Alexander
20 September 2022 Significant Expansion of Lithium Potential
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.
Forward Looking Statements:
This report includes forward‐looking statements that are only predictions and are subject to known and unknown
risks, uncertainties, assumptions and other important factors, many of which are beyond the control of St George,
the directors and the Company’s management. Such forward‐looking statements are not guarantees of future
performance.
Examples of forward‐looking statements used in this report includes use of the words ‘may’, ‘could’, ‘believes’,
‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties. These
statements are based on an assessment of present economic and operating conditions, and on a number of
assumptions regarding future events and actions that, as at the date of report, are expected to take place.
St George Mining Limited – Annual Report 2022
P 18
REVIEW OF OPERATIONS
Actual values, results, interpretations or events may be materially different to those expressed or implied in this
report. Given these uncertainties, recipients are cautioned not to place reliance on forward‐looking statements in
the report as they speak only at the date of issue of this report. Subject to any continuing obligations under
applicable law and the ASX Listing Rules, St George does not undertake any obligation to update or revise any
information or any of the forward‐looking statements in this report or any changes in events, conditions or
circumstances on which any such forward‐looking statement is based.
This report has been prepared by St George Mining Limited. The document contains background Information
about St George Mining Limited current at the date of this report.
The report is in summary form and does not purport to be all inclusive or complete. Recipients should conduct
their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and
completeness of the information, statements and opinions contained in this report.
The report is for information purposes only. Neither this report nor the information contained in it constitutes an
offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.
The report may not be distributed in any jurisdiction except in accordance with the legal requirements applicable
in such jurisdiction. Recipients should inform themselves of the restrictions that apply to their own jurisdiction as
a failure to do so may result in a violation of securities laws in such jurisdiction.
This report does not constitute investment advice and has been prepared without taking into account the
recipient’s
investment objectives, financial circumstances or particular needs and the opinions and
recommendations in this report are not intended to represent recommendations of particular investments to
particular persons.
Recipients should seek professional advice when deciding if an investment is appropriate. All securities
transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or
political developments. To the fullest extent of the law, St George Mining Limited, its officers, employees, agents
and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy,
reliability or completeness of any information, statements, opinion, estimates, forecasts or other representations
contained in this report. No responsibility for any errors or omissions from the report arising out of negligence or
otherwise is accepted.
St George Mining Limited – Annual Report 2022
P 19
DIRECTORS’ REPORT
The Directors of St George Mining Limited submit the annual financial report of St George Mining Limited from
1 July 2021 to 30 June 2022. In accordance 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 2022, 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 and American West
Metals Limited (ASX: AW1) from December 2021.
Not applicable.
listed company
Other current
directorships
Former listed directorships in the
last three years
John Dawson B.Com MBA INSEAD Non‐Executive Director
Appointed
Experience
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.
listed company
Other current
directorships
Former listed directorships in the
last three years
Sarah Shipway CA, B.Com
Appointed
Experience
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), Company Secretary for American West Metals
(ASX: AW1) and 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.
Other current
directorships
listed company
Beacon Minerals Limited (ASX: BCN) from June 2015.
St George Mining Limited – Annual Report 2022
P 20
DIRECTORS’ REPORT
Former listed directorships in the
last three years
Not applicable.
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
17,011,255
14,895,242
1,226,402
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 2021 to 30 June 2022 after income tax
was a loss of $8,180,317 (2021: $8,322,413).
A review of operations of the consolidated entity during the year ended 30 June 2022 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 2022
P 21
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 2022 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
$500,000 per annum. Fees for independent non‐executive directors are not linked to the performance of
the Group. To align Directors’ interests with shareholder interests, the directors are encouraged to hold
shares in the Company.
St George Mining Limited – Annual Report 2022
P 22
DIRECTORS’ REPORT
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. The method applied to achieve this aim has been the issue of performance rights to directors
and executives to encourage the alignment of personal and shareholder interests. The Company believes
this policy was effective in increasing shareholder wealth in the past.
The Company has issued performance‐based remuneration to directors and executives of the Company. The
measures are specifically tailored to align personal and shareholder interest. The KPI’s are reviewed regularly
to assess them in relation to the Company’s goals and shareholder wealth.
Company Performance
A summary of St George Mining’s business performance as measured by a range of financial and other
indicators, including disclosure required by the Corporations Act 2001, is outline below.
2022
2021
2020
2019
2018
Total Comprehensive Loss Attributable to
Member of the Company ($)
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 (%)
8,180,317
8,322,413
8,584,901
9,594,528
4,384,667
4,103,089
1.33
0.031
(54)
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
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 FY2022 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 FY2022.
The value of remuneration includes equity grants where the Directors received control of the shares in FY2022
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 2022
P 23
DIRECTORS’ REPORT
Director Actual Remuneration Earned in FY2022
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
$
385,000
68,705
156,705
$
385,000
68,705
156,705
$
‐
‐
‐
$
‐
‐
‐
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 2022.
Short‐Term Benefits
Post
Employment
Benefits
Salary
and
Fees
$
350,000
350,000
62,460
62,460
156,705
152,608
Termination
Payment
Superann‐
uation
$
‐
‐
‐
‐
‐
‐
$
35,000
33,250
6,245
5,934
‐
3,383
Employee
Benefits
Long Service
and Annual
Leave
$
Equity Settled
Share‐Based
Payments
Shares/Option/
Performance
Rights
$
20,908
26,199
‐
‐
23,232
‐
(33,870) 1
(70,870)
(19,662) 2
47,604
(25,040) 3
10,574
Total
Performance
Related
$
372,038
338,579
49,043
115,998
154,897
166,565
%
‐
‐
‐
41%
‐
6%
‐
‐
569,165
565,068
‐
‐
1. Included in the share‐based payments is the reversal of the Class E and F Performance Rights that were expensed
in the prior year amounting to $49,500, as the milestones were deemed unlikely to vest given they were scheduled
to expire on 30 June 2022.
(78,572)
(12,692)
575,978
621,142
44,140
26,199
41,245
42,567
2. Included in the share‐based payments is the reversal of the Class E and F Performance Rights that were expensed
in the prior year amounting to $30,250, as the milestones were deemed unlikely to vest given they were scheduled
to expire on 30 June 2022.
3. Included in the share‐based payments is the reversal of the Class E and F Performance Rights that were expensed
in the prior year amounting to $30,250, as the milestones were deemed unlikely to vest given they were scheduled
to expire on 30 June 2022.
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 annum 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 2022
P 24
Directors
J Prineas
2022
2021
J Dawson
2022
2021
S Shipway
2022
2021
Total
2022
2021
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 2021
Granted as
remuneration
Net other change
(i), (ii)
Balance at
30 June 2022
12,588,178
14,985,242
649,479
28,222,899
‐
‐
‐
‐
4,422,976
‐
576,923
4,999,899
17,011,154
14,985,242
1,226,402
33,222,798
Purchased under the Company’s share purchase plan at $0.052 per share
Purchased under the private placement at $0.052 per share
J Prineas
J Dawson
S Shipway
Total
(i)
(ii)
Performance Rights holdings of key management personnel
Directors
Balance at
1 July 2021
Granted as
remuneration
Net other
change
Balance at
30 June 2022
Unvested
Value of
unvested
Rights ($)
J Prineas
J Dawson
S Shipway
Total
18
11
11
40
‐
‐
‐
‐
(18)
(11)
(11)
(40)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Each performance rights converted to 50,000 fully paid ordinary shares on achievement of certain milestones.
Performance Rights Plan
The Group operates a Performance Rights Plan, approved at the Company’s Annual General Meeting held 22
November 2017.
During the year ended 30 June 2022 the Company issued no performance rights (2021: 125).
In the previous years, performance rights were issued to Directors and personnel of the Company and were
subject to a number of conditions which restricted both the vesting and exercise of the rights.
At the date of this report no performance rights were on issue. During the year 265 performance rights have
lapsed, unvested.
St George Mining Limited – Annual Report 2022
P 25
DIRECTORS’ REPORT
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.
At the date of this report the Company had on issue the below unlisted options:
Unlisted Options Class
Grant Date
Unlisted Options
Class A Performance Options*
Class B Performance Options*
Class C Performance Options*
Class D Performance Options*
24.03.2022
29.09.2022
29.09.2022
29.09.2022
29.09.2022
*Options vest on the milestones being achieved.
Number of
Options
5,000,000
2,250,000
2,250,000
3,000,000
3,000,000
Exercise
Price $
$0.095
‐
‐
‐
‐
Expiry Date
24.03.2024
31.12.2024
31.12.2025
30.06.2026
31.12.2026
During the financial year ended 30 June 2022, 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 no performance rights on issue.
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 2022 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.
EVENTS SUBSEQUENT TO BALANCE DATE
On 29 September 2022 the Company issued 10,500,000 unlisted performance options to members of St George’s
in‐house technical team under the Company’s Employee Option Plan.
On 31 July 2022 2,500,000 unlisted options expired unexercised.
St George Mining Limited – Annual Report 2022
P 26
DIRECTORS’ REPORT
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 2022 has been received and can be found
on page 57 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 2022.
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 30 September 2022
St George Mining Limited – Annual Report 2022
P 27
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022
Australian Dollar ($)
REVENUE
Interest
Government grants
EXPENDITURE
Administration expenses
Exploration expenditure written off
Finance expenses
LOSS BEFORE INCOME TAX
Note
30 JUNE 2022
$
30 JUNE 2021
$
3
3
4
5
6
4,360
74,053
78,413
(1,402,299)
(6,841,630)
(14,801)
(8,180,317)
9,860
181,000
190,860
(1,772,073)
(6,730,629)
(10,571)
(8,322,413)
Income Tax
7(a)
‐
‐
NET LOSS ATTRIBUTABLE TO MEMBERS OF THE
COMPANY
(8,180,317)
(8,322,413)
Other comprehensive income
TOTAL COMPREHENSIVE INCOME (LOSS)
‐
(8,180,317)
‐
(8,322,413)
TOTAL COMPREHENSIVE (LOSS) ATTRIBUTABLE
TO MEMBERS OF THE COMPANY
(8,180,317)
(8,322,413)
LOSS PER SHARE
Basic and diluted – cents per share
16
(1.33)
(1.61)
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 2022
P 28
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Australian Dollar ($)
Note
30 JUNE 2022
$
30 JUNE 2021
$
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
17(a)
10(a)
10(b)
11(a)
12
13
11(b)
11(b)
4,103,089
73,236
124,434
4,300,759
71,682
333,064
40,081
444,827
6,370,756
53,317
70,463
6,494,536
69,658
50,029
28,325
148,012
4,745,586
6,642,548
1,294,595
82,070
238,555
1,615,220
261,544
261,544
1,876,764
591,294
37,701
186,452
815,447
18,995
18,995
834,442
2,868,822
5,808,106
14(a)
14(b)
15
62,739,363
496,426
(60,366,967)
2,868,822
57,336,331
658,425
(52,186,650)
5,808,106
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes
St George Mining Limited – Annual Report 2022
P 29
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022
Australian ($)
BALANCE AT 1 JULY 2021
Loss for the year
Other comprehensive income
Total comprehensive loss
Shares issued during the year
Shares based payments
Reversal of performance rights
Share issue expenses
BALANCE AT 30 JUNE 2022
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
SHARE CAPITAL
$
57,336,331
‐
‐
‐
5,763,000
‐
‐
(359,968)
62,739,363
ACCUMULATED LOSSES
$
(52,186,650)
(8,180,317)
‐
(8,180,317)
‐
‐
‐
‐
(60,366,967)
50,695,011
‐
‐
‐
7,000,000
‐
83,100
10,858
‐
‐
‐
(452,638)
57,336,331
(43,873,737)
(8,322,413)
‐
(8,322,413)
‐
‐
‐
‐
‐
‐
9,500
‐
(52,186,650)
RESERVES
$
TOTAL EQUITY
$
658,425
‐
‐
‐
‐
349,501
(511,500)
‐
496,426
588,369
‐
‐
‐
‐
756,438
‐
‐
(88,000)
(588,882)
(9,500)
‐
658,425
5,808,106
(8,180,317)
‐
(8,180,317)
5,763,000
349,501
(511,500)
(359,968)
2,868,822
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
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
St George Mining Limited – Annual Report 2022
P 30
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Australian Dollar ($)
CASH FLOWS FROM OPERATING ACTIVITIES
Expenditure on mining interests
Payments to suppliers and employees
Interest received
Other
Government Grants
Net cash outflow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payment of bank guarantee
Purchase of plant and equipment
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
Lease payments
Net cash inflows from financing activities
Note
30 JUNE 2022
$
30 JUNE 2021
$
17(b)
(5,004,068)
(2,485,672)
6,874
28,882
‐
(7,453,984)
(2,022)
(27,542)
‐
(29,564)
5,303,032
‐
(87,151)
5,215,881
(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
Net (decrease) in cash and cash equivalents
(2,267,667)
(1,939,826)
Cash and cash equivalents at the beginning of
the financial year
CASH AND CASH EQUIVALENTS AT THE END
OF THE FINANCIAL YEAR
6,370,756
8,310,582
17(a)
4,103,089
6,370,756
The above consolidated statement of cash flows should be
read in conjunction with the accompanying notes
St George Mining Limited – Annual Report 2022
P 31
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
1
CORPORATE INFORMATION
The financial report of St George Mining Limited (“St George Mining” or “the Company”) for the year ended 30
June 2022 was authorised for issue in accordance with a meeting of the directors on 23 September 2022.
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 2022 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 $8,180,317 and net operating cash outflows of
$7,453,984 for the year ended 30 June 2022.
The net assets of the consolidated entity have decreased from $5,808,106 at 30 June 2021 to net assets of
$2,868,822 as at 30 June 2022. Net assets and Shareholder’s equity decreased in 2022 due to a reduction in capital
raising during the period and a decrease in cash and cash equivalents from $6,370,756 as at 30 June 2021
compared to $4,103,089 as at 30 June 2022.
At 30 June 2022 the Group held a cash balance of $4,103,089.
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 2022/2023 year
following successful completion of equity raisings or debt financing arrangements.
St George Mining Limited – Annual Report 2022
P 32
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
(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 22.
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 18.
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 2022
P 33
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
(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 2022
P 34
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
P 35
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
P 36
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
P 37
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
P 38
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
P 39
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
(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
AASB 2021‐3: Amendments to Australian Accounting Standards – COVID‐19 Related Rent Concessions beyond
30 June 2021
The Group has applied AASB 2021‐3: Amendments to Australian Accounting Standards – COVID‐19‐Related Rent
Concessions beyond 30 June 2021 this reporting period.
The amendment amends AASB 16 to extend by one year, the application of the practical expedient added to AASB
16 by AASB 2020‐4: Amendments to Australian Accounting Standards – COVID‐19‐Related Rent Concessions. The
practical expedient permits lessees not to assess whether rent concessions that occur as a direct consequence of
the COVID‐19 pandemic and meet specified conditions are lease modifications and instead, to account for those
rent concessions as if they were not lease modifications. The amendment has not had a material impact on the
Group’s financial statements.
AASB 2020‐8: Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2
The Group has applied AASB 2020‐8 which amends various standards to help listed entities to provide financial
statement users with useful information about the effects of the interest rate benchmark reform on those entities’
financial statements. As a result of these amendments, an entity:
•
will not have to derecognise or adjust the carrying amount of financial statements for changes required by
the reform, but will instead update the effective interest rate to reflect the change to the alternative
benchmark rate;
will not have to discontinue its hedge accounting solely because it makes changes required by the reform,
if the hedge meets other hedge accounting criteria; and
will be required to disclose information about new risks arising from the reform and how it manages the
transition to alternative benchmark rates. The amendment has not had a material impact on the Group’s
financials.
•
•
St George Mining Limited – Annual Report 2022
P 40
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
Other standards not yet applicable
AASB 2020‐1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non‐
current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non‐current.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The amendment is
not expected to have a material impact on the financial statements once adopted.
AASB 2020‐3: Amendments to Australian Accounting Standards – Annual Improvements 2018‐2020 and Other
Amendments
AASB 2020‐3: Amendments to Australian Accounting Standards – Annual Improvements 2018‐2020 and Other
Amendments is an omnibus standard that amends AASB 1, AASB 3, AASB 9, AASB 116, AASB 137 and AASB 141.
The Group plans on adopting the amendment for the reporting period ending 30 June 2023. The impact of the
initial application is not yet known.
AASB 2021‐2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2. These
amendments arise from the issuance by the IASB of the following International Financial Reporting Standards:
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and Definition of
Accounting Estimates (Amendments to IAS 8).
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the
initial application is not yet known.
AASB 2021‐5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not applicable
to leases and decommissioning obligations – transactions for which companies recognise both an asset and liability
and that give rise to equal taxable and deductible temporary differences. The Group plans on adopting the
amendment for the reporting period ending 30 June 2024. The impact of the initial application is not yet known.
(v)
Comparative information
Comparative information is amended where appropriate to ensure consistency in presentation with the current
year.
3
REVENUE
Interest income
Government grants
CONSOLIDATED
30 JUNE 2022
$
CONSOLIDATED
30 JUNE 2021
$
4,360
74,053
78,413
9,860
181,000
190,860
St George Mining Limited – Annual Report 2022
P 41
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
4
ADMINISTRATION EXPENSES
Administration expenses include the following expenses:
Employee benefit expense
Wages and salaries
Accrued leave
Net of reversal of performance rights
Defined contribution superannuation expense
Other administration costs
Accounting and administration fees
Legal fees
Publications and subscriptions
Presentations and seminars
Rental expenses
Share registry costs
Travel expenses
ROU depreciation
Depreciation
Other
Total administration expenses
5
EXPLORATION EXPENDITURE WRITTEN OFF
Exploration expenditure written off
Tenement acquisition costs
6
FINANCE EXPENSES
Interest expense
Lease interest
CONSOLIDATED
30 JUNE 2022
$
CONSOLIDATED
30 JUNE 2021
$
600,215
52,103
(161,998)
44,351
534,671
1,436
24,919
32,811
102,724
57,897
41,957
43,174
76,231
15,785
470,694
867,628
1,402,299
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
CONSOLIDATED
30 JUNE 2022
$
6,828,382
13,248
6,841,630
CONSOLIDATED
30 JUNE 2021
$
6,634,981
95,648
6,730,629
CONSOLIDATED
30 JUNE 2022
$
CONSOLIDATED
30 JUNE 2021
$
‐
14,801
14,801
‐
10,571
10,571
Refer to Note 11 for details in relation to the right of use asset and lease liability.
St George Mining Limited – Annual Report 2022
P 42
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
7
INCOME TAX
(a)
Prima facie income tax benefit at 25% on loss from ordinary activities is reconciled to the income tax
provided in the financial statements
Loss before income tax
Income tax calculated at 25% (2021: 26%)
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 2022
$
(8,180,317)
(2,045,079)
CONSOLIDATED
30 JUNE 2021
$
(8,322,413)
(2,163,827)
20,888
(122,888)
2,147,079
‐
25,888
(144,223)
2,282,162
‐
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 2022
$
8,121,496
57,707
235,781
CONSOLIDATED
30 JUNE 2021
$
8,114,640
45,357
268,677
8,414,984
8,428,674
(i)
(ii)
(iii)
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
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
CONSOLIDATED
30 JUNE 2022
$
51,201
51,201
CONSOLIDATED
30 JUNE 2021
$
53,695
53,695
St George Mining Limited – Annual Report 2022
P 43
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
$
569,165
41,245
(78,572)
44,140
575,978
CONSOLIDATED
30 JUNE 2021
$
565,068
42,567
(12,692)
26,199
621,142
CONSOLIDATED
30 JUNE 2022
$
73,236
73,236
CONSOLIDATED
30 JUNE 2021
$
53,317
53,317
Other receivables include amounts outstanding for goods and services tax (GST) of $57,533 (2021: $49,274),
interest receivable of $779 (2021: $592), reimbursements $11,924 (2021: $3,451) and security bond of $3,000
(2021: $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.
(b)
Other Assets
Prepayments
CONSOLIDATED
30 JUNE 2022
$
124,434
124,434
CONSOLIDATED
30 JUNE 2021
$
70,463
70,463
St George Mining Limited – Annual Report 2022
P 44
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
$
527,491
(194,427)
333,064
50,029
359,266
(76,231)
333,064
CONSOLIDATED
30 JUNE 2021
$
168,225
(118,196)
50,029
117,029
‐
(67,000)
50,029
CONSOLIDATED
30 JUNE 2022
$
CONSOLIDATED
30 JUNE 2021
$
82,070
261,544
343,614
37,701
18,995
56,696
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.
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 $527,491.
The right‐of‐use asset is being depreciated over the lease term on a straight‐line basis which is approximately 60
and 24 months for the office and storage lease, respectively, in place at 30 June 2022. Depreciation expense of
$76,231 (2021: $67,000) 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 5.4%. 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 interest expense of
$14,801 (2021: $10,571) was included in finance expense in the consolidated statement of profit or loss and other
comprehensive income. Lease payments during the year was $87,151 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.
St George Mining Limited – Annual Report 2022
P 45
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
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 2022
$
CONSOLIDATED
30 JUNE 2021
$
104,144
(64,063)
40,081
28,325
27,541
‐
(15,785)
40,081
137,415
(109,090)
28,325
45,320
‐
‐
(16,995)
28,325
CONSOLIDATED
30 JUNE 2022
$
1,294,595
1,294,595
CONSOLIDATED
30 JUNE 2021
$
591,294
591,294
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 2022 $38,538 (2021: $13,576) was past 30 days due.
14
ISSUED CAPITAL
Australian Dollar $
Issued and paid up capital
(a)
At the beginning of the reporting period
Shares issued during the prior period
March 2022: 94,230,769 shares issued at $0.052
April 2022: 12,749,948 shares issued at $0.052
June 2022: 3,846,154 shares issued at $0.052
Exercise of Options
Share based payments (i)
Transactions costs arising from issue of shares
At reporting date 700,017,808 (30 June 2021: 589,190,937)
fully paid ordinary shares
CONSOLIDATED
30 JUNE 2022
$
CONSOLIDATED
30 JUNE 2021
$
57,336,331
‐
4,800,000
663,000
200,000
‐
100,000
(359,968)
50,695,011
7,000,000
‐
‐
‐
10,858
83,100
(452,638)
62,739,363
57,336,331
St George Mining Limited – Annual Report 2022
P 46
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
Movements in Ordinary Shares
At the beginning of the reporting period
Shares issued during the prior period
Shares issued during the year
March 2022: 92,307,692 shares issued at $0.052
April 2022: 12,749,948 shares issued at $0.052
June 2022: 3,846,154 shares issued at $0.052
Options exercised during the year
Share based payments (i)
At reporting date
Number
589,190,937
‐
92,307,692
12,749,948
3,846,154
‐
1,923,077
700,017,808
Number
502,889,079
85,365,854
‐
‐
‐
54,297
881,707
589,190,937
(i)
During the year ended 30 June 2022 the following share‐based payments were made:
(a) 1,923,077 fully paid ordinary shares were issued at $0.052 per share as consideration for services
provided to the Company.
(ii)
During the year ended 30 June 2021 the following share‐based payments were made:
(a) 600,000 fully paid ordinary shares were issued at $0.10 per share as consideration to acquire an
exploration licence;
(b) 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
265
(265)
‐
‐
172
(32)
125
265
(i)
The Company issued no performance rights (2021: 125) during the year. Please refer to note 18.
(b) Reserve
Movements in reserve
At the beginning of the year
Expiry of options transferred to accumulated losses
Expiry of performance rights (i)
Reversal of performance rights
Share based payments expense
At reporting date
(i)
Performance rights expense (see note 18).
CONSOLIDATED
30 JUNE 2022
$
CONSOLIDATED
30 JUNE 2021
$
658,425
‐
(511,500)
‐
349,501
496,426
588,369
(9,500)
(88,000)
(588,882)
756,438
658,425
A summary of the outstanding options at 30 June 2022 in the Company is listed below:
Class
Unlisted Options
Unlisted Options
Number of Options
2,500,000
5,000,000
Exercise Price
$0.15
$0.095
Expiry Date
31 July 2022
24 March 2024
St George Mining Limited – Annual Report 2022
P 47
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
15
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
16
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 2022
$
(52,186,650)
(8,180,317)
‐
(60,366,967)
CONSOLIDATED
30 JUNE 2021
$
(43,873,737)
(8,322,413)
9,500
(52,186,650)
CONSOLIDATED
30 JUNE 2022
$
CONSOLIDATED
30 JUNE 2021
$
(1.33)
(1.33)
(1.61)
(1.61)
2022
Number
2021
Number
617,303,308
515,459,075
617,303,308
515,459,075
17
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.
Current – cash at bank
CONSOLIDATED
30 JUNE 2022
$
4,103,089
4,103,089
CONSOLIDATED
30 JUNE 2021
$
6,370,756
6,370,756
St George Mining Limited – Annual Report 2022
P 48
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
(b)
Reconciliation of loss after tax to net cash flows from operations
Loss after income tax
Share based payments
Depreciation expense
Lease interest
Non‐cash exploration costs and tenement acquisitions
(Increase)/decrease in assets
Trade and other receivables
Other assets
Increase/(decrease) in liabilities
Trade and other payables
Provisions
Non‐cash investing and financing activities:
CONSOLIDATED
30 JUNE 2022
$
(8,180,317)
(161,998)
92,017
14,801
100,000
(19,919)
(53,971)
703,301
52,102
(7,453,984)
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)
(i)
18
1,923,077 shares were issued at $0.052 per share for consideration for exploration expenses.
SHARE BASED PAYMENTS
At the beginning of the year the Company had 265 performance rights on issue. The Performance Rights
milestones were not achieved, the Class E, F and G have been reversed in the current year, a total of $511,500 has
been reversed.
During the year no performance rights were issued and as at the date of this report there are no performance
rights were on issue.
(i)
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 had the following milestones attached to them:
(i)
(iv)
(v)
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%.
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.
Each performance right converts to 50,000 fully paid ordinary shares on achievement of the milestone.
St George Mining Limited – Annual Report 2022
P 49
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
The performance rights were ascribed the below value:
Expiry Date Number of Ordinary
Number of
Performance
Rights (i)
Class
Class A
Total Class A
Class B
Total Class B
Class C (iii)
Total Class C
Class E
Class F
Class G
Total E‐G (iv)
Total
Class E, F, G (v)
Total
Date of
Issue
15.08.18
17.12.18
03.12.19
‐
15.08.18
17.12.18
03.12.19
‐
15.08.18
17.12.18
03.12.19
‐
24.07.20
24.07.20
24.07.20
‐
‐
Cancelled
‐
25
8
5
38
25
8
5
38
70
16
10
96
32
45
16
93
265
(265)
‐
31.07.21
31.07.21
15.08.21
31.07.21
31.07.21
15.08.21
31.07.21
31.07.21
15.08.21
30.06.22
30.06.22
30.06.22
‐
‐
‐
Shares on
Achievement
1,250,000
400,000
250,000
1,900,000
1,250,000
400,000
250,000
1,900,000
3,500,000
800,000
500,000
4,800,000
1,600,000
2,250,000
800,000
4,650,000
13,250,000
(13,250,000)
‐
Price of
Shares
($)
Total Value ($)
(ii)
Expense for the
period ($)
0.125
0.135
0.135
‐
0.125
0.135
0.135
‐
0.125
0.135
0.135
‐
0.110
0.110
0.110
‐
‐
‐
‐
156,250
54,000
33,750
244,000
156,250
54,000
33,750
244,000
‐
‐
‐
‐
176,000
247,500
88,000
511,500
999,500
(511,500)
488,000
6,559
1,199
1,695
9,453
6,555
1,195
1,852
9,602
‐
‐
‐
(176,000)
(247,500)
(88,000)
(511,500)
(492,445)
‐
(492,445)
(i)
(ii)
(iii)
(iv)
(v)
Each Performance Right will convert into 50,000 shares.
The value of the rights was determined as per the date the rights were issued.
At the yearend 30 June 2021, it was deemed that the Class C Performance Rights were unlikely to vest
given the rights were scheduled to expire and expired on 15 August 2021 and amounts expensed in
the prior years were revered in the 2021 financial year.
The share based payment expense for the year relating to class E, F and G, before the reversal of
$511,500 was $255,750.
A total of 93 performance rights were cancelled during the year as the vesting conditions were not
fulfilled.
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. The
performance rights expired on 30 June 2022.
Each performance right converts to 50,000 fully paid ordinary shares on achievement of the milestone.
St George Mining Limited – Annual Report 2022
P 50
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
Of the above performance rights granted, the following were issued to key management personnel, and had not
expired as at 30 June 2021 (but expired on 30 June 2022):
Key Management
Personnel
J Prineas
Class E
Class F
J Dawson
Class E
Class F
S Shipway
Class E
Class F
Grant Date
Number of
Performance Rights
24.07.20
24.07.20
24.07.20
24.07.20
24.07.20
24.07.20
8
10
5
6
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 2020
Granted
Forfeited
Exercised
Expired
Options outstanding as at 30 June 2021
Granted
Forfeited
Exercised
Expired
Options outstanding as at 30 June 2022
Options exercisable as at 30 June 2022
Options exercisable as at 30 June 2021
Number
27,076,114
‐
‐
(54,297)
(24,521,817)
2,500,000
5,000,000
‐
‐
‐
7,500,000
7,500,000
2,500,000
Weighted
Average Exercise
Price $
0.206
‐
‐
0.20
0.20
0.15
0.095
‐
‐
‐
0.11
‐
‐
The weighted average remaining contractual life of options outstanding at the year‐end was 1.18 years (2021:
1.08 years). The weighted average exercise price of outstanding options at the end of the report period was $0.11
(2021: $0.15).
19
(a)
COMMITMENTS AND CONTINGENCIES
Commitment
Mineral exploration commitments
The Group has the following minimum exploration expenditure requirements in connection with its exploration
tenements.
Not later than one year
Later than one year but not later than two years
30 June
2022
$
265,082
207,606
472,688
30 June
2021
$
350,963
329,117
680,080
St George Mining Limited – Annual Report 2022
P 51
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
(b)
Contingent liabilities and commitments
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.
20
EVENTS SUBSEQUENT TO BALANCE DATE
On 29 September 2022 the Company issued 10,500,000 unlisted performance options to members of St George’s
in‐house technical team under the Company’s Employee Option Plan.
On 31 July 2022 2,500,000 unlisted options expired unexercised.
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.
21
(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:
2022
Note
Floating
interest
rate
$
Fixed
interest
rate
$
Non‐
interest
bearing
$
Total
$
Weighted
average
interest rate
%
Financial assets
Cash and cash equivalents
Trade and other receivables
Security bond
17(a)
10(a)
‐
4,097,544
‐
68,682
4,166,226
‐
‐
‐
‐
5,545
73,236
3,000
81,781
4,103,089
73,236
71,682
4,248,007
Financial liabilities
Trade and other payables
Lease liability
2021
13
11(b)
Note
‐
‐
‐
‐
343,614
343,614
1,294,595
‐
1,294,595
1,294,595
343,614
1,638,209
Floating
interest
rate
$
Fixed
interest
rate
$
Non‐
interest
bearing
$
Total
$
Weighted
average
interest rate
%
Financial assets
Cash and cash equivalents
Trade and other receivables
Security bond
17(a)
10(a)
‐
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
‐
St George Mining Limited – Annual Report 2022
P 52
0.11%
‐
0.11%
‐
‐
5.40%
‐
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
Financial liabilities
Trade and other payables
Lease liability
13
11(b)
‐
‐
‐
‐
56,696
56,696
591,294
‐
591,294
591,294
56,696
647,990
‐
11.24%
‐
Based on the balances at 30 June 2022 a 1% movement in interest rates would increase/decrease the loss for the
year before taxation by $38,226 (2021: $63,046).
(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 2022
Non‐derivatives
Lease liability
Trade and other payables
Total non‐derivatives
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
41,035
1,294,595
1,335,630
41,035
‐
41,035
261,544
‐
261,544
‐
‐
‐
‐
‐
‐
343,614
1,294,595
1,638,209
343,614
1,294,595
1,638,209
(d)
Net Fair Values
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.
(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.
St George Mining Limited – Annual Report 2022
P 53
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
(f)
Foreign Currency Risk
The Group is not exposed to any significant foreign currency risk as at 30 June 2022.
(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.
22
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 2022
100%
100%
100%
30 June 2021
100%
100%
100%
At 30 June 2022 balances due from the subsidiaries were:
Blue Thunder Resources Pty Ltd
Desert Fox Resources Pty Ltd
Destiny Nickel Pty Ltd
30 JUNE 2022
$
26,645,431
23,364,118
‐
50,009,549
30 JUNE 2021
$
22,521,900
23,307,988
‐
45,829,888
These amounts comprise of funds provided by the parent company for exploration activities. The amounts were
fully provided for as at 30 June 2022 and have been eliminated on consolidation.
During the year, the Company paid $51,500 (2021: $61,711) on behalf of American West Metals Limited (American
West Metals), of which John Prineas is a director. American West Metals fully reimbursed the company $51,500
(2021: $61,711) for these expenses during the year.
23
SEGMENT REPORTING
For management purposes, the Group is organised into one main operating segment, which involves the
exploration of minerals in Australia. All of the Group’s activities are interrelated, and discrete financial information
is reported to the Board as a single segment. Accordingly, all significant operating decisions are based upon
analysis of the Group as one segment.
The financial results from this segment are equivalent to the financial statements of the Group as a whole.
The accounting policies applied for internal reporting purposes are consistent with those applied in the
preparation of these financial statements.
24
JOINT VENTURES
The Group recognises that joint ventures are a key mechanism for sharing of risk on individual exploration projects.
Where appropriate for a particular project, the Group will consider a joint venture with a suitable party in order
St George Mining Limited – Annual Report 2022
P 54
NOTES TO THE CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
to share the exploration risk. Those funds otherwise set aside for the project will be employed to advance another
project.
There were no joint ventures in place during and at the end of the financial year.
25
PARENT COMPANY DISCLOSURE
(a)
Financial Position
Australian Dollar ($)
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
(b)
Financial Performance
Australian Dollar $
Profit (loss) for the year
Other comprehensive income
Total comprehensive income (loss)
30 JUNE 2022
$
30 JUNE 2021
$
4,685,936
40,080
4,726,016
1,615,213
261,544
1,876,757
2,849,259
6,492,139
78,484
6,570,623
805,551
18,995
824,546
5,746,077
62,739,362
496,427
(60,386,530)
2,849,259
57,336,331
658,425
(52,248,679)
5,746,077
30 JUNE 2022
$
(8,137,851)
‐
(8,137,851)
30 JUNE 2021
$
(8,298,784)
‐
(8,298,784)
(c)
Guarantees entered into by the Parent Entity
Other than as disclosed in Note 19 (b) the parent entity has not provided guarantees to third parties as at 30 June
2022.
St George Mining Limited – Annual Report 2022
P 55
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 2022 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 2022.
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: 30 September 2022
Perth, Western Australia
St George Mining Limited – Annual Report 2022
P 56
PO Box 1908
West Perth WA 6872
Australia
40, Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
30 September 2022
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 2022, 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 57
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
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 2022, 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 2022 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
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 58
Key Audit Matters
Issued Capital
(refer to Note 14(a))
the
reporting
Issued Capital amounted
to
The Group’s
$62,739,363. During
year,
110,826,871 ordinary shares were issued through
placements and for consideration for services,
resulting in an increase in Contributed Equity of
$5,403,032 net of capital raising costs (refer to Note
14(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 statements and other relevant supporting
documentation;
iv. Verifying underlying capital raising costs and
these costs were appropriately
ensuring
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 requirements of the relevant
accounting standards and disclosures achieve
fair presentation and reviewing the financial
statements to ensure appropriate disclosures
are made.
P 59 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 and
share options
(refer to Note 18)
During the year, the Company granted 5,000,000 share
options to brokers. In prior year, 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. During the year, the performance rights
did not meet the performance milestones by the vesting
date, resulting in reversal of the previous accounted for
share-based payment expenses.
The Group valued the share options using the Black-
Sholes methodology and 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 Group has performed calculations to record the
related share-based payment expense of $349,501 before
the reversal of the performance rights that did not
ultimately vest amount to $511,500, resulting in a net
reversal in the consolidated statement of profit or loss and
other comprehensive income of $161,999.
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.
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 2022 but does not include the financial
report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
P 60
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 61
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 22 to 26 of the directors’ report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of St George Mining Limited for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
30 September 2022
P 62
SHAREHOLDER INFORMATION
1
Distribution of holders
As at 30 September 2022 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
257
369
543
1,929
1,090
4,188
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 30 September 2022, who hold 20.34% of the
ordinary shares of the Company, were as follows;
Shareholder
Citicorp Nominees Pty Limited
Toronga Pty Ltd
Mr Lee Ramon Cunnington + Mrs Nancy Lynne Cunnington < L R Cunnington S/F A/C>
BNP Paribas Noms Pty Ltd
John Prineas
Impulzive Pty Ltd
Allcap Pty Ltd
AEE Gold AG
Ms Betty Frilingos
Shinas Investments Pty Ltd
DDH 1 Drilling Pty Ltd
Mr Paul Sumade Lee
North Harbour Assessment Centre Pty Ltd
Rigi Investments Pty Limited
Zeus Super Pty Ltd
Ms Swee Hoong Tan
Ms Kathryn Silas
Mr David Davidson
Mr Paul Malcolm Koshy
BNP Paribas Nominees Pty Ltd ACF Clearstream
5
Consistency with business objectives
Number
16,213,137
14,500,000
13,860,341
10,587,766
10,504,501
8,504,641
7,268,085
6,459,036
6,318,182
5,964,446
5,029,137
4,770,833
4,402,592
4,127,621
4,124,980
4,078,600
4,056,131
4,000,000
3,980,588
3,667,657
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 2022
P 63
TENEMENT INFORMATION
St George Mining Limited mineral interests as at 30 September 2022
MT ALEXANDER:
Tenement
ID
E29/638
E29/548
E29/954
E29/962
E29/972
E29/1041
E29/1093
E29/1126
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
Blue Thunder Resources Pty Ltd
Mt Alexander
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
100
Ownership
(%)
100
100
Ownership
(%)
100
100
AJANA:
Tenement
ID
E70/5521
E70/5522
Registered Holder
Location
St George Mining Limited
St George Mining Limited
Ajana
Ajana
Ownership
(%)
100
100
REGIONAL TENEMENTS:
Tenement
ID
Registered Holder
Location
E69/3772
E70/5626
E37/1382
St George Mining Limited
St George Mining Limited
St George Mining Limited
Gary Highway
Boddington East
Stuart Meadows
Ownership
(%)
100
100
100
St George Mining Limited – Annual Report 2022
P 64
St George Mining Limited ACN 139 308 973
www.stgeorgemining.com.au
ATE DIRECTORY/CONTENTS PAGE