2022
ANNUAL REPORT
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
CONTENTS
Company Projects:
1. Paulsens East Iron Ore Project (WA)
2. Apurimac Iron Ore Project (Peru)
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Directors’ Declaration
Independent Audit Report
List of Mineral Concessions
Annual Mineral Resources Statement
JORC Code Competent Persons’
Compliance Statements
Forward Looking Statements
Additional ASX Information
2
10
14
24
32
33
34
35
36
37
62
63
67
68
69
70
71
The 2022 Corporate Governance Statement
can be found at the following URL
on the Company’s website:
www.strikeresources.com.au/corporate/corporate-
governance/
Visit www.strikeresources.com.au for
• Market Announcements
• Financial Reports
• Corporate Governance
• Forms
• Email Subscription
CORPORATE DIRECTORY
BOARD
Farooq Khan
William Johnson
Victor Ho
Malcolm Richmond
Matthew Hammond
Executive Chairman
Managing Director
Executive Director
Non-Executive Director
Non-Executive Director
COMPANY SECRETARY
Victor Ho
Email:
cosec@strikeresources.com.au
PRINCIPAL AND REGISTERED OFFICE
Suite 1, Level 1,
680 Murray Street,
West Perth, Western Australia 6005
Telephone:
Facsimile:
Email:
Website:
+61 8 9214 9700
+61 8 9214 9701
info@strikeresources.com.au
www.strikeresources.com.au
AUDITORS
Rothsay Audit & Assurance Pty Ltd
Level 1, Lincoln House
4 Ventnor Avenue
West Perth, Western Australia 6005
Telephone:
Website:
+61 8 9486 7094
www.rothsay.com.au
STOCK EXCHANGE
Australian Securities Exchange
Perth, Western Australia
ASX CODE
SRK
SHARE REGISTRY
Advanced Share Registry Limited (ASX:ASW)
Main Office:
110 Stirling Highway
Nedlands, Western Australia 6009
Local Telephone:
Telephone:
Facsimile:
Email:
Web:
1300 113 258
+61 8 9389 8033
+61 8 6370 4203
admin@advancedshare.com.au
www.advancedshare.com.au
Sydney Office:
Suite 8H, 325 Pitt Street
Sydney, New South Wales 2000
Telephone:
+61 8 8096 3502
Investor Portal
www.advancedshare.com.au/Investor-Login
ANNUAL REPORT | 1
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
Strike Resources Limited (ASX:SRK) is an ASX listed resource company which is developing the Paulsens East
Iron Ore Mine in Western Australia – Strike has exported 66,618 tonnes of ~62% Fe Lump DSO (mined from surface
detrital material) from Utah Point (Port Hedland) and is developing a 1.8Mtpa export solution out of the Port of
Ashburton (Onslow). Strike also owns the high grade Apurimac Iron Ore Project in Peru where it has exported
“Apurimac Premium Lump” DSO product of ~65% Fe. Strike has a 43% shareholding in Lithium Energy Limited
(ASX:LEL), which was spun-out of Strike under a $9m IPO in May 2021. Lithium Energy is developing battery
minerals related assets - the Solaroz Lithium Brine Project in Argentina and the Burke Graphite Project in
Queensland.
Paulsens East Iron Ore Project (Pilbara, Western Australia)
(Strike – 100%)
The Paulsens East Iron Ore Project (Paulsens East) is located ~10km from the Paulsens Gold Mine, ~235km by
road east of Onslow (and the Port of Ashburton) and ~600km by road south of Port Hedland (refer Figure 1).
Figure 1: Paulsens East Iron Ore Mine Location – Haulage Routes to Port Hedland and Port of Ashburton
Strike has undertaken Paulsens East Stage 1 Production, involving the mining of surface detrital material and
crushing, screening and Ore Sorter processing to produce Paulsens East Lump direct shipping iron ore (DSO)
(grading 62% Fe), with road train haulage to the Utah Point Multi-User Bulk Handling Facility (Utah Point) at Port
Hedland for export.
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30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
Strike is undertaking Paulsens East Stage 2 Development, which will involve conventional open pit mining of the
Paulsens East hematite ridge, ramping up to an annualised production rate of up to ~1.8 Mtpa, with road train
haulage to and export (via transhipment operations) through the Port of Ashburton near Onslow.
First Production
In March 2022, Strike commenced construction of a 18km haulage road to connect the Paulsens East mine to the
public Nanutarra Road (Haul Road) (refer insert in Figure 1).
In April 2022, Strike commenced mining operations with the excavation, screening and crushing of surface detrital
iron ore on the northern slopes of the Paulsens East hematite ridge.
Figure 2: Excavation of Detritals Iron Ore on Northern Slope of Paulsens East Hematite Ridge
Figure 3: Mining of Detritals Iron Ore at Paulsens East
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30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
Figure 4: Stockpile area located north of Paulsens East hematite ridge with detritals mining areas in the distance
Figure 5: Stockpile of Paulsens East Lump DSO
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30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
In June 2022, Strike commissioned a Steinert KSS Combination Ore Sorter on site to process ROM detritals iron
ore to produce high grade (~62% Fe) Paulsens East Lump DSO. The detrital material contains a mix of high grade
material that requires only crushing and screening to create a uniform material size together with iron ore that
contains a mix of lower density waste material. The Ore Sorter was used to process this mixed portion of mined
material to remove the lower density waste material and create a ~62% Fe grade Lump product to add to the high
grade detrital iron ore. The Ore Sorter uses sophisticated x-ray imaging in conjunction with compressed air to
separate waste from crushed and screened high-grade ore. The Ore Sorter has improved the recoveries of high-
grade surface detrital material for the first shipment.
In June 2022, Strike entered into a Combined Multi-Users Access and Licence Agreement (MUA) with the Pilbara
Ports Authority (PPA) to secure access to Utah Point for the export of iron ore.
In July 2022, Odell Mining Services commenced the haulage of Paulsens East Lump DSO from the mine site to
Utah Point on road trains.
Figures 6 and 7: Loading Paulsens East Lump DSO on to Road Train
Figure 8: Loading of Road Train
ANNUAL REPORT | 5
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
First Shipment
Strike completed its maiden export of DSO from Paulsens East in September 2022, with 66,618 tonnes shipped on
MV Cepheus Ocean to China.
The specifications of this first shipment of Paulsens East Lump DSO are as follows:
Fe
SiO2
Al2O3
P
S
LOI
Moisture
61.96%
5.66%
2.86%
0.077%
0.008%
2.17%
2.32%
Figure 9: MV Cepheus Ocean preparing to dock at Utah Point, Port Hedland
Figure 10: MV Cepheus Ocean docked, ready for loading
Figure 11: Paulsens East Lump DSO being loaded into MV
Cepheus Ocean
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30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
This maiden shipment has been sold to a Hong Kong based buyer, with the terms of the sale agreement including
market reflective pricing referenced to a benchmark base price and lump premium, with market-typical impurity
penalties and a freight differential adjustment, on a Cost and Freight (CFR) basis for delivery into China.1
Operational Status
Whilst the successful shipment of its first shipment of iron ore from Paulsens East is a significant milestone for the
Company, Strike has determined to pause on further shipments from Utah Point given current market conditions –
in particular, taking into account the low benchmark iron ore price relative to prices earlier in the year, together with
rising input costs (eg. diesel fuel) adversely impacting operating margins.
Strike has structured its Paulsens East mining operations in such a manner that further shipments can be made on
relatively short notice. Strike continues to review market conditions and in particular the forward benchmark pricing
for iron ore and will make further shipments to Utah Point if iron ore pricing and market conditions meet the
Company’s internal thresholds.
Strike continues to advance the development of an export solution through the Port of Ashburton, which has the
potential to significantly improve the economics at Paulsens East and thus will play an important part in any decision
to restart operations at Paulsens East.
Stage 2 Development - Production and Export Through Port of Ashburton, Onslow
Strike is advancing the Port of Ashburton as a longer-term export solution for the Company given its far closer
proximity to Paulsens East (~235km) versus Utah Point in Port Hedland (~650km), leading to significantly lower
trucking costs from mine to port.
Stage 2 Development will focus on a ramp up in annual throughput through conventional open pit mining of the
Paulsens East hematite ridge to an annualised production rate of ~1.8Mtpa with a scale up in the contracted mining
fleet, expansion of mine site personnel and additional working capital requirements to facilitate the larger annualised
production rate.
Stage 2 involves the export of ore through the Port of Ashburton at Onslow (via transhipment operations) which
reduces the trucking distance from mine to Port by ~365km (compared to Utah Point in Port Hedland).
The Port of Ashburton is a common user facility initially constructed by Chevron for the Wheatstone Project but is
now under the control of the PPA. The Port of Ashburton is located ~12km southwest from the town of Onslow and
is ~235km from Paulsens East.
Figure 12: Port of Ashburton - Onslow
1 Refer Strike’s ASX Announcement dated 1 August 2022: Maiden 68,000 Tonne Shipment of Paulsens East Lump Iron Ore
ANNUAL REPORT | 7
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
PPA has confirmed the use of the Port of Ashburton for export of iron ore by Strike subject to environmental
permitting requirements and Port operation approvals being obtained by Strike.
The Department of Water and Environmental Regulation (DWER) has granted a Works Approval under the
Environmental Protection Act 1986 for the export of up to 1.8 Mtpa (10,000 tonnes per day) of iron ore from the Port
of Ashburton in Onslow. The Works Approval is subject to a number of usual conditions relating to export activity
including environmental monitoring and established loading patterns to minimise the impact of dust and noise
generation.
Strike’s separate Works Approval application for offshore marine operations (principally related to an offshore
anchorage area for the bulk loading of iron ore from a transhipment vessel to Ocean Going Vessels) is progressing
well and is expected to be issued in Q4 2022.
Strike continues to advance the works required to commence operations from the Port of Ashburton and is in
advanced negotiations with key contractors in relation to that proposed export operation.
The advancement of the Port of Ashburton as an export solution for Strike has the potential to significantly improve
the economics at Paulsens East and thus will play an important part in any decision to restart operations at Paulsens
East.
JORC Mineral Resource and Ore Reserve
Paulsens East consists of a three-kilometre-long outcropping high-grade hematite ridge, containing a JORC
Indicated Mineral Resource of 9.6 Million tonnes at 61.1% Fe, 6.0% SiO2, 3.6% Al2O3, 0.08% P (at a cut-off
grade of 58% Fe).2 Table 1 shows the Paulsens East JORC Indicated Mineral Resource for a range of cut-off
grades:
Mineral
Resources
Category
Indicated
Indicated
Indicated
Indicated
Indicated
Indicated
Fe%
Range
>60
>59
>58
>57
>56
>55
Million
Tonnes
6.75
8.15
9.62
10.54
11.73
12.50
Fe%
62.1
61.6
61.1
60.8
60.4
60.01
SIO2%
5.21
5.56
5.97
6.27
6.86
7.22
AL2O3%
3.37
3.53
3.64
3.7
3.69
3.67
P%
0.080
0.082
0.085
0.087
0.088
0.089
S%
0.01
0.01
0.01
0.01
0.01
0.01
LOI%
1.92
1.99
2.13
2.20
2.27
2.35
Table 1: Paulsens East JORC Indicated Mineral Resource estimate from Hematite Ridge using a range of lower cut-off wireframes
There is exploration potential based on small hematite conglomerate outcrops along the surface and a drill
intersection located 1.6 kilometres along the hematite ridge at the south-eastern corner of the tenement previously
identified by Strike3 and surface rock-chip samples grading 64.4% - 66.2% Fe identified at multiple locations in the
same area.4
As part of the completion of the October 2020 Feasibility Study, part of the JORC Indicated Mineral Resource has
been converted to a JORC Probable Ore Reserve of 6.2 million tonnes at 59.9% Fe, 7.43% SiO2, 3.77% Al2O3
and 0.086% P (at a cut-off grade of 55% Fe).5
2 Refer Strike’s ASX Announcement dated 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated Category
at Paulsens East Iron Ore Project
3 Refer Strike’s ASX Announcements dated 4 December 2019: High Grade Results Located 1.6km from 9.6Mt Resource and 5
December 2019: Drilling and Surface Sampling Results at Paulsens East Iron Ore Project
4 Refer Strike’s ASX Announcements dated 15 July 2020: High-Grade Rock Chip Samples Confirm Resource Upside Potential at
Paulsens East Iron Ore Project
5 Refer Strike’s ASX Announcement dated 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow
Generation and Financial Returns
ANNUAL REPORT | 8
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
Figure 13: Paulsens East Hematite Ridge
As part of the completion of the February 2022 Updated Feasibility Study6, an additional JORC Indicated Mineral
Resource of 113,000 tonnes at 60.8% Fe, 6.9%, SiO2, 3.4% Al2O3, and 0.10% P (at a cut-off grade of 58% Fe)
was delineated from the high-grade hematite rich detrital material7 at surface north of the hematite ridge (refer
Figures 2, 3 and 4).
6 Refer also Strike’s ASX Announcement dated 4 February 2022: Updated Paulsens East Feasibility Study – Optimised Staged
Production and Lower Capex and Opex Costs
7 Refer also Strike’s ASX Announcements dated 14 October 2020: Discovery of High Grade Iron Rich Detritals at Surface at Paulsens
East and 15 July 2020: High-Grade Rock Chip Samples Confirm Resource Upside Potential at Paulsens East Iron Ore Project
ANNUAL REPORT | 9
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
Apurimac Iron Ore Project (Peru)
(Strike – 100%)
Strike’s Apurimac Iron Ore Project in Peru is recognised as one of the highest grade, large scale magnetite projects
in the world with the potential to support the establishment of a significant iron ore operation.
Figure 14: Location of Apurimac Iron Ore Project and Proposed Andahuaylas Railway Route to Port
Mining Operations at Apurimac
Strike has been mining high-grade surface deposits of DSO material from Apurimac via the process of engagement
of local miners who are permitted, under Peruvian mining legislation, to mine up to 350 tonnes per day (or ~125,000
tonnes per annum) of iron ore from specific portions of a mining concession. Strike has engaged local trucking
operators to transport DSO from the mine site to third-party crushing plants, where crushed DSO have been
stockpiled prior to transport into port for ship loading.
Apurimac Premium Lump DSO Export Shipments
Strike has completed two shipments (to Chinese and South American Steel Mills) of high-grade (+65% Fe)
Apurimac Premium Lump DSO in calendar 2021.
In 18 August 2021, Strike undertook its maiden export shipment of 35,000 tonnes of Apurimac Premium Lump DSO
to China on MV Federal Nakagawa. 8
Independent analysis taken during loading of its first shipment of ore from Peru confirmed the exceptionally high-
grade nature and quality of the Apurimac Premium Lump iron ore, with average specifications across the 35,000
tonne shipment as follows (refer Table 2):
Fe
65.99
SiO2
2.76
Al2O3
0.65
P
0.059
S
0.09
Moisture
1.06
Table 2: Apurimac Premium Lump DSO – First Shipment Analysis
8 Refer Strike’s ASX Announcement dated 19 August 2021: Maiden Iron Ore Shipment from Peru
ANNUAL REPORT | 10
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
Strike notes that the Offtake Agreement9 (pursuant to which the first shipment was undertaken) is on a CFR basis
(where Strike bears the cost of shipment). As such, subsequent shipments to China will be subject to negotiation
of an acceptable price with the offtake counterparty and securing a ship charter on terms acceptable to Strike.
In October 2021, Strike completed a second shipment of 15,000 tonnes of Apurimac Premium Lump DSO to a
South American steel mill (Buyer).10
Independent analysis taken during loading of this second shipment of ore from Peru confirmed the continued
exceptionally high-grade nature and quality of the Apurimac Premium Lump iron ore, with average specifications
across the 15,000 tonne shipment as follows (refer Table 9):
Fe
65.28
SiO2
1.64
Al2O3
0.88
P
0.052
S
0.09
Moisture
0.62
Table 3: Apurimac Premium Lump DSO – Second Shipment Analysis
Strike notes that the second shipment was made on an FOB basis (where the buyer is responsible for the shipment
cost) with a competitive market price calculated by reference to the high grade nature of the Apurimac Lump DSO
ore This shipment was successfully used by the buyer as an industrial trial for their steel manufacturing facility.
Subsequent shipments to the South American steel mill are subject to negotiation of an acceptable price (referenced
to the benchmark iron ore price) and Strike securing sufficient working capital to fund production to this end.
Figure 15: MV Federal Nakagawa berthing at Port, Peru, for Maiden Iron Ore Shipment of 35,000 tonnes to China
9 Refer Strike’s ASX Announcement dated 14 April 2021: Peru Iron Offtake Agreement Signed with US$2 Million Prepayment
10 Refer Strike’s ASX Announcement dated 29 October 2021: Second Iron Ore Shipment from Peru Completed
ANNUAL REPORT | 11
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
Andahuaylas Railway Development
The Peruvian Government, through the Ministry of Transport and Communications (MOTC), has commissioned a
study into the economic, social and technical aspects of building a railway from Andahuaylas in the Apurimac
Region to a future port at San Juan de Marcona (Andahuaylas Railway).11
Strike has worked with the study group as it is anticipated that Strike will potentially be a major user of the proposed
Andahuaylas Railway. The study has included an analysis of various railway route options, with the preferred route
confirmed as one which commences directly at the Andahuaylas Airport adjacent to Strike’s Apurimac Project (refer
Figure 16).
City of Andahuaylas
Strike’s
Apurimac
Project
Port
Figure 16 – Proposed Andahuaylas Railway Route (in red): Source MOTC
Should the Andahuaylas Railway advance as planned with the commencement point located at the Andahuaylas
Airport, it will deliver a large-scale transport solution directly to the doorstep of Strike’s iron ore resources at
Apurimac.
11 Refer also Strike’s ASX Announcements dated:
•
•
•
•
8 February 2018: Peru Government Plans Railway Linking Strike’s Apurimac Iron Ore Project to Port
24 October 2018: Peru Government Awards $13 Million Tender for Andahuaylas Railway Study Linking Strike’s Apurimac Iron
Ore Project to Port
18 April 2019: Strike Enters into Cooperation Agreement with Peru Railway Consortium
5 December 2019: Railway Project Gathers Momentum in Peru – Positive Outlook for Strike’s Apurimac Iron Ore Project
ANNUAL REPORT | 12
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
COMPANY PROJECTS
JORC Mineral Resource
A JORC (2012) Indicated and Inferred Mineral Resource has been defined at the main Opaban 1 and Opaban
3 concessions of 269Mt of iron ore at 57.3% Fe (142 Mt Indicated Resource at 57.8% Fe and 127 Mt Inferred
Resource at 56.7% Fe)12.
The Opaban 3 Mineral Resource has been diminished by production and sales of 50,095 tonnes of lump iron ore
grading 65.78% Fe, 2.42% SiO2, 0.72% Al2O3, 0.057% P and 0.09% S.
In addition to the current JORC resource, there is significant exploration potential given the deposits are open at
depth and along strike (with very promising drill results including 154m @ 62% Fe) with extensive undrilled gravity
and magnetic anomalies.
Feasibility Studies
Strike completed a Pre-Feasibility Study on the Apurimac Project in 200813 (subsequently updated in 201014), which
indicated the clear potential for development of a world class iron ore project, with competitive capital costs and
very low operating costs:
•
•
The 2008 Pre-Feasibility Study undertaken by Snowden Mining Industry Consultants and SKM utilised a
proposed slurry pipeline configuration as the preferred transport solution (under the study). For further
details, refer to Strike’s ASX Announcement dated 23 July 2008: Prefeasibility Results Confirm World Class
Prospects in Peru;
Further infrastructure studies were undertaken by Ausenco Sandwell and SRK Consulting in 2010 with the
purpose to further compare the economics of a slurry pipeline versus railway infrastructure solutions at
various production levels. For further details, refer to Strike’s ASX Announcement dated 23 November 2010:
Apurimac Project Update and Strike’s December 2010 Quarterly Report.
In 2021, Ausenco completed a (high level) review of the 2008 and 2010 studies and gap and trade-off analyses to
identify opportunities to reduce project capex and increase project execution security, taking into account current
cost estimates, technology advancements (since 2010) and current/expected market conditions.
The commencement of the next stage of works (proposed by Ausenco) to examine in more detail the updated
capital and operating costs associated with a 15 - 20 million tonne per annum production profile of a concentrate
product using a slurry pipeline for transport to port will be a function of the competing capital requirements of the
Company vis a vis operations/development at Paulsens East and at Apurimac.
12 Refer Strike’s ASX Announcement dated 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard
13 Refer Strike’s ASX Announcement dated 23 July 2008: Prefeasibility Results Confirm World Class Prospects in Peru
14 Refer Strike’s ASX Announcement dated 23 November 2010: Apurimac Project Update and Strike’s December 2010 Quarterly Report
ANNUAL REPORT | 13
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
The Directors present their report on Strike Resources Limited ABN 94 088 488 724 (Company or SRK) and
its controlled entities (the Consolidated Entity or Strike) for the financial year ended 30 June 2022 (Balance
Date).
SRK is a company limited by shares that was incorporated in Western Australia and has been listed on the
Australian Securities Exchange (ASX) since 7 March 2000 (ASX Code: SRK).
The Company has prepared a consolidated financial report incorporating the entities that it controlled during
the financial year, being wholly owned subsidiaries.
PRINCIPAL ACTIVITIES
Strike Resources Limited is an ASX listed resource company whose principal activities during the financial
year were:
•
the development of the Paulsens East Iron Ore Project in Western Australia;
•
•
the development of a small-scale direct shipping iron ore (DSO) operation in relation to the Apurimac
Iron Ore Project in Peru; and
the evaluation of a larger-scale development of the Apurimac Iron Ore Project in Peru.
OPERATING RESULTS
Consolidated
Total revenue
Total expenses
Profit/(Loss) before tax
Income tax expense
Profit/(Loss) after tax
CASH FLOWS
Consolidated
Net cash flow from operating activities
Net cash flow from investing activities
Net cash flow from financing activities
Net change in cash held
Effect of exchange rate changes on cash held
Cash held at year end
June 2022
$
194,137
(4,783,628)
(4,589,491)
-
(4,589,491)
June 2021
$
6,767,700
(2,907,825)
3,859,875
-
3,859,875
June 2022
$
(1,929,893)
(6,397,573)
5,545,802
(2,781,664)
538,700
4,206,548
June 2021
$
(4,659,296)
(401,342)
8,540,721
3,480,083
(271,732)
6,449,512
ANNUAL REPORT | 14
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
FINANCIAL POSITION
Consolidated
Cash
Financial assets at fair value through profit or loss
Inventory
Exploration and expenditure
Mine development
Investment in Associate entity
Receivables
Other assets
Liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Total equity
REVIEW OF OPERATIONS
June 2022
$
4,206,548
864
95,543
-
9,890,168
5,540,968
1,220,039
664,636
(9,497,707)
June 2021
$
6,449,512
238,061
1,353,363
3,438,629
-
6,532,439
207,242
416,746
(2,163,115)
12,121,060
16,472,877
159,420,982
39,713,171
(187,013,093)
12,121,060
159,420,982
21,657,827
(164,605,932)
16,472,877
Paulsens East Iron Ore Project (Pilbara, Western Australia)
(Strike – 100%)
The Paulsens East Iron Ore Project (Paulsens East) is located in the Pilbara region of Western Australia,
~235km by road east of Onslow (and Port of Ashburton) and ~600km by road south of Port Hedland.
Strike has commenced Paulsens East Stage 1 Production, which involves the mining of surface detrital
material and crushing, screening and Ore Sorter processing to produce Paulsens East Lump direct shipping
iron ore (DSO) (grading 62% Fe), with road train haulage to the Utah Point Multi-User Bulk Handling Facility
(Utah Point) at Port Hedland for export.
Paulsens East Stage 2 Development will involve the conventional open pit mining of the Paulsens East
hematite ridge, ramping up to an annualised production rate of up to ~1.8 Mtpa, with road train haulage to
and export (via transhipment operations) through the Port of Ashburton near Onslow, where the Department
of Water and Environmental Regulation (DWER) has granted a Works Approval under the Environmental
Protection Act 1986 for the export of up to 1.8 Mtpa of iron ore.
Strike has secured a US$7.2 million (~A$10 Million) project finance loan facility (Facility) with Good Importing
International Pty Limited (GII), to fund the commencement of Stage 1 Production.
Strike has completed its maiden export of DSO from Paulsens East, with 66,618 tonnes shipped on MV
Cepheus Ocean to China in September 2022.
The specifications of this first shipment of Paulsens East Lump DSO is as follows:
Fe
61.96%
SiO2
5.66%
Al2O3
2.86%
P
0.077%
S
0.008%
LOI
2.17%
Moisture
2.32%
Strike has determined to pause on further shipments from Utah Point given current market conditions – in
particular, taking into account the low benchmark iron ore price relative to prices earlier in the year, together
with rising input costs (eg. diesel fuel) adversely impacting operating margins. Strike continues to review
market conditions and in particular the forward benchmark pricing for iron ore and will make further shipments
to Utah Point if iron ore pricing and market conditions meet the Company’s internal thresholds.
Strike continues to advance the development of an export solution through the Port of Ashburton, which has
the potential to significantly improve the economics at Paulsens East and thus will play an important part in
any decision to restart operations at Paulsens East.
ANNUAL REPORT | 15
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
For further details, please refer to Strike’s announcements on the Paulsens East Iron Ore Project during the
financial year and subsequent to balance date:
•
•
•
•
•
•
•
•
•
•
•
•
•
30 August 2022: First Export Shipment of Paulsens East Lump Iron Ore and Future Operations
25 August 2022: Maiden Shipment of Paulsens East Lump Iron Ore and Operational Update
1 August 2022: Maiden 68,000 Tonne Shipment of Paulsens East Lump Iron Ore
27 July 2022: Environmental Works Approval Received for Ashburton Port
21 June 2022: Port Access Finalised, First Iron Ore Shipment From Paulsens East Targeted for July
2 May 2022: Paulsens East Iron Ore - Production Update
14 April 2022: Contractors Mobilise to Commence Production at Paulsens East and Draw-Down under
Loan Facility
14 March 2022: Development Underway at Paulsens East Iron Ore Project as Construction of Haulage
Road Begins
28 February 2022: Funding Secured and Production to Commence at Paulsens East Iron Ore Project
4 February 2022: Updated Paulsens East Feasibility Study - Optimised Staged Production and Lower
Capex and Opex Costs
28 October 2021: Export Allocation Received for Paulsens East
13 September 2021: Paulsens East Iron Ore Mining Operations Optimised
2 August 2021: Mining Proposal Approved by DMIRS for Paulsens East Iron Ore Mine
Apurimac Iron Ore Project (Peru)
(Strike – 100%)
The Apurimac Iron Ore Project in Peru is recognised as one of the highest grade, large scale magnetite
projects in the world with the potential to support the establishment of a significant iron ore operation. 1 Over
A$50 million has been invested by Strike since 2005 on acquisition, exploration, study and operational costs
relating to its Peru assets, including a Pre-Feasibility Study completed in 20082 and updated in 20103 on the
Apurimac Project.
Strike has been mining high-grade surface deposits of DSO material from Apurimac via the process of
engagement of local miners who are permitted, under Peruvian mining legislation, to mine up to ~125,000
tonnes per annum of iron ore from a specific portion of a mining concession.
Strike has completed two shipments (to Chinese and South American Steel Mills) of high-grade (+65% Fe)
Apurimac Premium Lump DSO during the financial year.
Strike notes that the Offtake Agreement with GII4 (pursuant to which the first shipment was undertaken) is on
a CFR basis (where Strike bears the cost of shipment). As such, subsequent shipments to China will be
subject to negotiation of an acceptable price with GII and securing a ship charter on terms acceptable to
Strike.
Strike’s second shipment to a South American steel mill was made on an FOB basis (where the buyer is
responsible for the shipment cost) with a competitive market price calculated by reference to the high grade
nature of the Apurimac Lump DSO ore. This shipment was successfully used by the buyer as an industrial
trial for their steel manufacturing facility. Subsequent shipments to the South American steel mill are subject
to negotiation of an acceptable price (referenced to a benchmark iron ore price) and Strike securing sufficient
working capital to fund production to this end.
1 Refer SRK ASX Announcement 19 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard
2 Refer SRK ASX Announcement dated 23 July 2008: Prefeasibility Results Confirm World Class Prospects in Peru
3 Refer SRK ASX Announcement dated 23 November 2010: Apurimac Project Update and Strike’s December 2010 Quarterly Report
4 Refer Strike’s ASX Announcement dated 14 April 2021: Peru Iron Offtake Agreement Signed with US$2 Million Prepayment
ANNUAL REPORT | 16
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
In August 2021, Strike announced that the Peruvian Prime Minister had confirmed the Peru Government’s
plans to build a railway (under a public-private partnership scheme) linking among others, Strike’s Apurimac
Project to the Port of San Juan de Marcona. The Andahuaylas Railway has been the subject of a study by
Ferrocarril del Sur (the Southern Railway Study Group) commissioned by the Ministry of Transportation and
Communications5.
During the financial year, Ausenco completed a (high level) review of the 2008 and 2010 pre-feasibility studies
and gap and trade-off analyses to identify opportunities to reduce project capex and increase project
execution security, taking into account current cost estimates, technology advancements (since 2010) and
current/expected market conditions. The commencement of the next stage of works (proposed by Ausenco)
to examine in more detail the updated costs associated with a 15 - 20 million tonne per annum production
profile of a concentrate product using a slurry pipeline for transport to port will be a function of the competing
capital requirements of the Company vis a vis the mining operations at Paulsens East and at Apurimac.
For further details, please refer to Strike’s announcements on the Apurimac Iron Ore Project during the
financial year and subsequent to balance date:
•
•
•
•
•
•
•
29 October 2021: Second Iron Ore Shipment from Peru Completed
21 September 2021: Peru Iron Ore Update and Hedging Position
9 September 2021: Second Iron Ore Shipment from Peru
31 August 2021: Peruvian Prime Minister Confirms Railway Connecting Strike's Apurimac Project to
Port
19 August 2021: Maiden Iron Ore Shipment from Peru
16 August 2021: Loading of Maiden Iron Ore Shipment Underway in Peru
28 July 2021: Maiden Iron Ore Shipment in Peru Imminent
Investment in Lithium Energy Limited (ASX:LEL)
As at 30 June 2022, Strike is the largest shareholder in Lithium Energy with 34,410,000 shares (43.01%) (30
June 2021: 34,410,000 shares; 43.01%) (subject to escrow until 19 May 2023).
Lithium Energy Limited (Lithium Energy) (ASX Code: LEL), was admitted to the Official List of ASX on 17
May 20216 and commenced quotation 19 May 20217, after the successful completion of a $9 million (at $0.20
per share) initial public offering (IPO) under a Prospectus (dated 30 March 2021 8).
Lithium Energy was a spin-out of the battery minerals assets formerly held by Strike; Strike shareholders were
given a priority pro-rata entitlement under the Lithium Energy IPO9.
In September 2022, Lithium Energy issued 15,000,000 shares under a share placement (at an issue price of
$1.00 per share). 10 Strike did not participant in this capital raising and accordingly, Strike’s interest in Lithium
Energy has diluted to 36.22%. 11
5 Refer also SRK ASX Announcements dated:
•
•
•
•
8 February 2018: Peru Government Plans Railway Linking Strike’s Apurimac Iron Ore Project to Port
24 October 2018: Peru Government Awards $13 Million Tender for Andahuaylas Railway Study Linking Strike’s Apurimac Iron
Ore Project to Port
18 April 2019: Strike Enters into Cooperation Agreement with Peru Railway Consortium
5 December 2019: Railway Project Gathers Momentum in Peru – Positive Outlook for Strike’s Apurimac Iron Ore Project
6 Refer LEL’s ASX Announcement dated 17 May 2021: ASX Notice – Admission to Official List
7 Refer LEL ASX Announcement dated 19 May 2021: Lithium Energy Limited Commences Trading on ASX
8 Refer LEL ASX Announcement released on 17 May 2021: Prospectus
9 Refer SRK ASX Announcements dated 23 March 2021: Spin-Out of Lithium and Graphite Assets - Lithium Energy Limited IPO and 7
April 2021: Lithium Energy Limited IPO Opens
10 Refer LEL ASX Announcement dated 15 September 2022: $15 Million Capital Raising to Accelerate Drilling at Solaroz Lithium Brine
Project in Argentina
11 Refer SRK ASX Announcement dated 23 September 2022: Change of Substantial Holder Shareholder Notice for LEL
ANNUAL REPORT | 17
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
Lithium Energy’s flagship Solaroz Brine Lithium Project (LEL:90%) (Solaroz) comprises 8 mineral
concessions totalling approximately 12,000 hectares, located strategically within the Salar de Olaroz Basin in
South America’s “Lithium Triangle” in north-west Argentina. The Solaroz Project is adjacent to two significant
Lithium brine assets, being the Olaroz Lithium Facility of Allkem Limited (ASX/TSX:AKE) (formerly Orocobre
Limited) (Allkem) (under a joint venture with Tokyo Stock Exchange listed Toyota Tsusho Corporation
(TYO:8015)) and the advanced Cauchari-Olaroz development project held by Lithium Americas Corporation
(TSX/NYSE:LAC) (Lithium Americas) (under a joint venture with Ganfeng Lithium). Lithium Energy has
established a conceptual Exploration Target12 for Solaroz, undertaken geophysics across the Solaroz
concessions13 and has recently commenced its maiden drilling programme at Solaroz14.
Lithium Energy also owns the Burke Graphite Project (LEL:100%) (Burke) located in Queensland which
contains a high grade graphite deposit15 and presents the opportunity for the company to participate in the
anticipated growth in demand for graphite and graphite related products (including graphene, a key additive
for improving performance of lithium-ion batteries). Lithium Energy has announced16 that it is advancing a
drilling programme (with further optimisation via 3D modelling, metallurgy tests and pit optimisation studies)
at Burke to upgrade the graphite deposit from a JORC Inferred Mineral Resource to a higher JORC Indicated
Mineral Resource category and to test the extent of graphite mineralisation at the Corella tenement identified
through the previously conducted ground Electro Magnetic (EM) survey17.
Strike Managing Director, William Johnson, is the Executive Chairman of Lithium Energy and Strike Executive
Director, Farooq Khan, is an Executive Director of Lithium Energy.
Further information about Lithium Energy’s resource projects and activities are contained in their ASX
releases, including as follows:
•
•
•
8 September 2022: Annual Report – 2022;
1 August 2022: Quarterly Report - 30 June 2022; and
11 March 2022: Half Year Report – 31 December 2021.
Information concerning Lithium Energy may be viewed from its website: www.lithiumenergy.com.au
Lithium Energy’s market announcements may also be viewed from the ASX website (www.asx.com.au) under
ASX code “LEL”.
Quarterly Reports
Further information on Strike’s activities and operations during the financial year are also contained in Strike’s
Quarterly Activities and Cash Flow Reports lodged on ASX dated:
•
•
•
•
1 August 2022: Quarterly Report - 30 June 2022
2 May 2022: Quarterly Report - 31 March 2022
1 February 2022: Quarterly Activities and Cash Flow Report - 31 December 2021
29 October 2021: Quarterly Activities and Cash Flow Report - 30 September 2021
12 Refer LEL ASX Announcement dated 8 June 2021: Substantial Lithium Exploration Target Identified at the Solaroz Project in Argentina
13 Refer LEL ASX Announcement dated 18 August 2022: Highly Encouraging Geophysics Paves Way for Commencement of Drill Testing
of Brines at Solaroz
14 Refer LEL ASX Announcements dated 12 September 2022: Landmark Maiden Drilling Programme Commences at the Solaroz Lithium
Brine Project in Argentina and 8 September 2022: Rig Mobilising for Landmark Maiden Drilling Programme at Solaroz Lithium Brine
Project in Argentina
15 Refer SRK ASX Announcement dated 13 November 2017: Maiden Mineral Resource Estimate Confirms Burke Project as One of the
World’s Highest-Grade Natural Graphite Deposits
16 Refer LEL ASX Announcement dated 15 September 2022: $15 Million Capital Raising to Accelerate Drilling at Solaroz Lithium Brine
Project in Argentina
17 Refer SRK ASX Announcement dated 26 June 2018: Burke Graphite Project – New Target Area Identified from Ground Electro-
Magnetic Surveys
ANNUAL REPORT | 18
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
DIVIDENDS
No dividends have been paid or declared during the financial year.
SECURITIES ON ISSUE
The following securities are on issue as at balance date (30 June 2022):
Class of Security
Fully paid ordinary shares
Broker’s Options ($0.15, 30 November 2023)18
Directors’ Options ($0.185, 3 December 2023)19
Broker’s Options ($0.33, 3 June 2024)20
Securities Incentive Plan (SIP) Options ($0.185, 14 February 2025)21
Quoted on
ASX
270,000,000
--
-
-
Unlisted
-
1,000,000
12,000,000
1,000,000
3,100,000
Total
270,000,000
17,100,000
The following options were issued during the financial year:
Class of Unlisted Options
Issue Date
Exercise
Price
Expiry Date
Number of
options
SIP Options ($0.185, 14 February 2025)22 15 February 2022
$0.185
14 February 2025
3,100,000
These SIP Options were issued pursuant to invitations made to various Strike personnel being ‘Eligible
Participants’ under the Company’s Securities Incentive Plan (SIP)23.
The following options lapsed during the financial year, pursuant to their terms of issue:24
Class of Unlisted Options
Lapse Date
Exercise
Price
Expiry Date
Number of
options
SIP Options ($0.21, 23 December 2023)25 6 August 2021
$0.21
23 December 2023
1,500,000
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
The Directors note that during the financial year, the COVID-19 pandemic has had an effect on Strike’s
operations, particularly in Peru (impacting the Apurimac Iron Ore Project) with a lesser effect in Western
Australia (impacting the Paulsens East Iron Ore Project), including but not limited to the consequences of
Government imposed (international and national/local) travel restrictions, lockdowns/shutdowns and
quarantine requirements. There have been no other significant changes in the state of affairs of Strike, save
as otherwise disclosed in this Directors’ Report or the financial statements and notes thereto.
18 Refer SRK ASX Announcement dated 25 November 2020: Proposed Issue of Securities
19 Refer Strike’s Notice of Annual General Meeting and Explanatory Statement (Resolutions 6 to 10) dated 20 October 2020 and released
on ASX on 4 November 2020 and SRK ASX Announcements dated 4 December 2020: Results of 2020 Annual General Meeting and
4 December 2020: Proposed Issue of Securities
20 Refer SRK ASX Announcement dated 4 June 2021: Appendix 3G – Notification of Issue of 1M Broker Options
21 Refer SRK ASX Announcement dated 18 February 2022: Notification regarding unquoted securities - SRK
22 Refer SRK ASX Announcement dated 18 February 2022: Notification regarding unquoted securities - SRK
23 The SIP was approved by shareholders at the Company’s AGM held on 4 December 2020; a summary of the SIP is in Annexure A to
Strike's Notice of AGM and Explanatory Statement dated 20 October 2020 and released on ASX on 4 November 2020
24 Refer SRK ASX Announcement dated 10 September 2021: Lapse of Unlisted Options
25 Refer SRK ASX Announcement dated 6 January 2021: Appendix 3G – Notification of Issue of 1.5M SIP Options
ANNUAL REPORT | 19
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
FUTURE DEVELOPMENTS
Strike will continue to (subject to, amongst other matters, market conditions, Strike’s financial position and
commitments and the relative prospects of Strike’s resource projects):
•
•
advance the development of the small-scale direct shipping iron ore (DSO) operation in relation to the
Apurimac Iron Ore Project in Peru; and
advance the development of the Paulsens East Iron Ore Project in Western Australia;
•
advance the evaluation of the larger-scale development of the Apurimac Iron Ore Project in Peru.
The likely outcomes of these activities depend on a range of technical and economic factors (including
underlying commodity prices) and also industry, geographic and other strategy specific issues (including the
impacts of health pandemics). In the opinion of the Directors, it is not possible or appropriate to make a
prediction on the results of these activities, the future course of markets or the forecast of the likely results of
Strike’s activities.
ENVIRONMENTAL REGULATION
Strike holds mineral tenements/concession licences issued by the relevant mining and environmental
protection authorities of the various countries in which it operates (from time to time). In the course of its
mineral exploration, evaluation and development activities, Strike adheres to licence conditions and
environmental regulations imposed upon it by various authorities (as applicable). Strike has complied with all
licence conditions and environmental requirements (as applicable) during the financial year and up to the
date of this report. There have been no known material breaches of Strike’s licence conditions and
environmental regulations during the financial year and up to the date of this report.
BOARD OF DIRECTORS
Farooq Khan
Executive Chairman
Appointed
18 December 2015; Director since 1 October 2015
Qualifications
BJuris, LLB (Western Australia)
Experience
Farooq Khan is a qualified lawyer having previously practised principally in the field of
corporate law. Mr Khan has extensive experience in the securities industry, capital markets
and the executive management of ASX-listed companies. In particular, Mr Khan has guided
the establishment and growth of a number of public listed companies in the investment, mining
and financial services sector. He has considerable experience in the fields of capital raisings,
mergers and acquisitions and investments.
Special
responsibilities
Member of the Audit Committee
Member of the Remuneration and Nomination Committee
Relevant Interests in
shares and options
Other current
directorships in listed
entities
1,813,231 shares (held jointly)
3,750,000 Directors’ options ($0.185, 3 December 2023)26
Executive Chairman of:
Orion Equities Limited (ASX:OEQ) (since 23 October 2006)
Bentley Capital Limited (ASX:BEL) (since 2 December 2003)
Executive Chairman and Managing Director of:
Queste Communications Ltd (ASX:QUE) (since 10 March 1998)
Executive Director of Lithium Energy Limited (ASX:LEL) (since 14 January 2021)
Former directorships
in other listed entities
in past 3 years
-
26 Refer SRK ASX Announcement dated 20 January 2021: Change of Director’s Interest Notice – F Khan
ANNUAL REPORT | 20
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
William Johnson
Managing Director
Appointed
25 March 2013; Director since 14 July 2006
Qualifications MA (Oxon), MBA
Experience William Johnson holds a Masters Degree in Engineering Science from Oxford University,
England and an MBA from Victoria University, New Zealand. His 36-year business career
spans multiple industries and countries, with executive/CEO experience in mineral exploration
and investment (Australia, Peru, Chile, Saudi Arabia, Oman, North Africa and Indonesia),
telecommunications infrastructure investment (New Zealand, India, Thailand and Malaysia)
and information technology and Internet ventures (New Zealand, Philippines and Australia).
Mr Johnson is a highly experienced public company director and has considerable depth of
experience in corporate governance, business strategy and operations, investment analysis,
finance and execution.
Special
responsibilities
None
Relevant Interests in
shares and options
349,273 shares (held jointly)
4,500,000 Directors’ options ($0.185, 3 December 2023)27
Other current
directorships in listed
entities
Former directorships
in other listed entities
in past 3 years
Executive Director of
Bentley Capital Limited (ASX:BEL) (since 1 January 2016; Director since March 2009)
Executive Chairman of Lithium Energy Limited (ASX:LEL) (since 14 January 2021)
Molopo Energy Limited (former ASX:MPO) (31 May 2018 to 26 May 2021)
Keybridge Capital Limited (ASX:KBC) (29 July 2016 to 17 April 2020)
Malcolm Richmond
Non-Executive Director
Appointed
25 October 2006; previously Chairman (3 February 2011 to 18 December 2015)
Qualifications
BSc Hons (Metallurgy) and B. Comm. Merit (Econs) (New South Wales)
Experience
Mr Richmond has 31 years’ experience with the Rio Tinto and CRA Groups in a number of
positions including: Vice President, Strategy and Acquisitions; Managing Director, Research
and Technology; Managing Director, Development (Hamersley Iron Pty Limited) and Director
of Hismelt Corporation Pty Ltd. He was formerly Deputy Chairman of the Australian Mineral
Industries Research Association and Vice President of the WA Chamber of Minerals and
Energy. Mr Richmond has also served as a Member on the Boards of a number of public and
governmental bodies and other public listed companies.
He is a qualified metallurgist and economist with extensive senior executive and board
experience in the resource and technology industries both in Australia and internationally. His
special interests include corporate strategy and the development of markets for internationally
traded minerals and metals - particularly in Asia.
Mr Richmond served as Visiting Professor at the Graduate School of Management and School
of Engineering, University of Western Australia until January 2012 and is a Fellow of the
Australian Academy of Technological Sciences & Engineering, a Fellow of Australian Institute
of Mining and Metallurgy and a Member of Strategic Planning Institute (US).
Special
responsibilities
Relevant Interests in
shares and options
Chairman of the Audit Committee
Member of the Remuneration and Nomination Committee
750,000 Directors’ options ($0.185, 3 December 2023)28
Other current
directorships in listed
entities
-
Former directorships
in other listed entities
in past 3 years
Argonaut Resources NL (ASX:ARE) (Non-Executive Director - March 2012 to February 2022)
27 Refer SRK ASX Announcement dated 20 January 2021: Change of Director’s Interest Notice – W Johnson
28 Refer SRK ASX Announcement dated 20 January 2021: Change of Director’s Interest Notice – M Richmond
ANNUAL REPORT | 21
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
Matthew Hammond
Non-Executive Director
Appointed
25 September 2009
Qualifications
BA (Hons) (Bristol)
Experience Mr Hammond was (between 2011 and 2022) the Group Managing Director and CFO of VK
Company (formerly Mail.ru Group), a leading European Internet communication and
entertainment services group, which is listed on the London Stock Exchange. Prior to that he
was Group Strategist for Metalloinvest Holdings, where he had broad-ranging responsibilities
for part of the non-core asset portfolio and advised the Metalloinvest Board on strategic
acquisitions and investments. He began his career at Credit Suisse and was Sector Head in
Equity Research and in Private Bank Ultra High Net Worth Client Advisory advising on portfolio
allocation, strategic M&A and individual investments. As a Technology Analyst at Credit
Suisse, he was ranked #1 in the Extell and Institutional Investor surveys 8 times.
Special
responsibilities
Chairman of the Remuneration and Nomination Committees
Member of the Audit Committee
Relevant Interests in
shares and options
750,000 Directors’ options ($0.185, 3 December 2023)29
Other current
directorships in listed
entities
-
Former directorships
in other listed entities
in past 3 years
VK Company Limited (LSE:VKCO) (formerly Mail.Ru Group Limited) (Director – May 2010 to
March 2022; Managing Director – April 2011 to March 2022; CFO – June 2013 to March 2022)
Victor Ho
Executive Director and Company Secretary
Appointed
Director since 24 January 2014; Company Secretary since 30 September 2015
Qualifications
BCom, LLB (Western Australia), CTA
Experience
Special
responsibilities
Relevant Interests in
shares and options
Other positions held
in listed entities
Former position in
other listed entities in
past 3 years
Victor Ho has been in Executive roles with a number of ASX-listed companies across the
investments, resources and technology sectors over the past 22 years. Mr Ho is a Chartered
Tax Adviser (CTA) and previously had 9 years’ experience in the taxation profession with the
Australian Tax Office (ATO) and in a specialist tax law firm. Mr Ho has been actively involved
in the investment management of listed investment companies (as an Executive Director
and/or a member of the Investment Committee), the structuring and execution of a number of
corporate, M&A and international joint venture (in South America (Peru, Chile and Argentina),
Indonesia and the Middle East (Saudi Arabia and Oman)) transactions, capital raisings,
resources project (debt) financing, spin-outs/demergers and IPO’s/re-listings on ASX and
capital management initiatives and has extensive experience in public company administration,
corporations’ law, ASIC/ASX compliance and investor/shareholder relations.
Secretary of Audit Committee and Remuneration and Nomination Committee
2,250,000 Directors’ options ($0.185, 3 December 2023)30
Executive Director (also Company Secretary) of:
Orion Equities Limited (ASX:OEQ) (Secretary since 2 August 2000 and Director since 4 July
2003)
Queste Communications Ltd (ASX:QUE) (Secretary since 30 August 2000 and Director since
3 April 2013)
Company Secretary of Bentley Capital Limited (ASX:BEL) (since 5 February 2004)
Company Secretary of Lithium Energy Limited (ASX:LEL) (since 14 January 2021)
Company Secretary of Keybridge Capital Limited (ASX:KBC) (13 October 2016 to 13 October
2019)
29 Refer SRK ASX Announcement dated 20 January 2021: Change of Director’s Interest Notice – M Hammond
30 Refer SRK ASX Announcement dated 20 January 2021: Appendix 3Y – Change of Director’s Interest Notice – V Ho
ANNUAL REPORT | 22
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
DIRECTORS' MEETINGS
The following table sets out the numbers of meetings of the Company's Directors held during the financial
year (including Directors’ circulatory resolutions), and the numbers of meetings attended by each Director of
the Company:
Board Meetings
Audit Committee
Name of Director
Attended
Farooq Khan
William Johnson
Malcolm Richmond
Matthew Hammond
Victor Ho(a)
Notes:
21
21
21
22
21
Max. Possible
Meetings
21
21
21
22
21
Attended
1
-
1
1
1
Max. Possible
Meetings
1
-
Attended
Remuneration Committee
Max. Possible
Meetings
-
-
-
-
1
1
1
-
-
-
-
-
-
(a)
Mr Ho attended Audit Committee meetings as Secretary of the Audit Committee
Audit Committee
The Audit Committee comprises Malcolm Richmond (as Chairman), Farooq Khan and Matthew
Hammond.
The Audit Committee has a formal charter to prescribe its objectives, duties and responsibilities,
access and authority, composition, membership requirements of the Committee and other
administrative matters. Its function includes reviewing and approving the audited annual and reviewed
half-yearly financial reports, ensuring a risk management framework is in place, reviewing and
monitoring compliance issues, reviewing reports from management and matters related to the external
auditor.
A copy of the Audit Committee Charter may be downloaded from the Company’s website:
www.strikeresources.com.au/corporate/corporate-governance/.
Remuneration and Nomination Committee
The Remuneration and Nomination Committee currently comprises Matthew Hammond (as
Chairman), Farooq Khan and Malcolm Richmond.
The Remuneration and Nomination Committee has a formal charter to prescribe its purpose, key
responsibilities, composition, membership requirements, powers and other administrative matters. The
Committee has a:
•
•
Remuneration function - with key responsibilities to make recommendations to the Board on
policy governing the remuneration benefits of the Managing Director and Executive Directors,
including equity-based remuneration and assist the Managing Director to determine the
remuneration benefits of senior management and advise on those determinations; and a
Nomination function - with key responsibilities to make recommendations to the Board as to
various Board matters including the necessary and desirable qualifications, experience and
competencies of Directors and the extent to which these are reflected in the Board, the
appointment of the Chairman and Managing Director, the development and review of Board
succession plans and addressing Board diversity.
A copy of the Remuneration and Nomination Committee Charter may be downloaded from the
Company’s website: www.strikeresources.com.au/corporate/corporate-governance/.
ANNUAL REPORT | 23
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
REMUNERATION REPORT
This Remuneration Report details the nature and amount of remuneration for each Director and Company
Executive (being a company secretary or senior manager) (Key Management Personnel) of the Company.
The information provided under headings (1) to (8) below has been audited for compliance with section 300A
of the Corporations Act 2001 (Cth) as required under section 308(3C).
(1)
Key Management Personnel disclosed in this report
Name
Current Position
Tenure
Farooq Khan
Chairman
Chairman since 18 December 2015; Director since 1 October 2015
William Johnson
Managing Director
Managing Director since 25 March 2013; Director since July 2006
Victor Ho
Malcolm
Richmond
Matthew
Hammond
Director and
Company Secretary
Director since 24 January 2014; Company Secretary since 30
September 2015
Non-Executive
Director
Non-Executive
Director
Director since 25 October 2006; Previously, Chairman between 3
February 2011 and 18 December 2015
Since 25 September 2009
(2)
Remuneration Policy
The Board (with guidance from the Remuneration and Nomination Committee) determines the
remuneration structure of all Key Management Personnel having regard to Strike’s strategic objectives,
scale and scope of operations and other relevant factors, including experience and qualifications,
length of service, market practice (including available data concerning remuneration paid by other listed
companies in particular companies of comparable size and nature within the resources sector in which
Strike operates), the duties and accountability of Key Management Personnel and the objective of
maintaining a balanced Board which has appropriate expertise and experience, at a reasonable cost
to the Company.
The Remuneration and Nomination Committee: A purpose of the Committee is to assist the
Managing Director and the Board to adopt and implement a remuneration system that is required to
attract, retain and motivate the personnel who will enable the Company to achieve long-term success.
In carrying out this ‘remuneration function’, the Committee’s key responsibilities are to:
•
•
•
make recommendations to the Board on the specific benefits to be provided to the Managing
Director within the policy
conduct an annual review of Non-Executive Directors’ fees and determining whether the limit
on the Non-Executive Directors’ fee pool remains appropriate, and
assist the Managing Director to determine the remuneration (including equity-based
remuneration) of ‘Senior Management’ (being executive direct reports to the Managing Director
and other senior employees) and advise on those determinations.
A copy of the Remuneration and Nomination Committee Charter may be downloaded from the
Company’s website: www.strikeresources.com.au/corporate/corporate-governance/.
Corporate Governance Principles: The Company’s Corporate Governance Statement (CGS) also
addresses matters pertaining to the Board, Senior Management and Remuneration. The latest version
of the CGS may be downloaded from the Company’s website:
www.strikeresources.com.au/corporate/corporate-governance/.
Company Constitution: The Company’s Constitution31 also contain provisions in relation to the
remuneration of the Managing Director, Executive Directors and Non-Executive Directors.
31 Refer SRK ASX Announcement released on 1 February 2006: Constitution
ANNUAL REPORT | 24
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
REMUNERATION REPORT
Fixed Cash Short-term Employment Benefits: The Key Management Personnel of the Company
are paid a fixed amount per annum plus applicable employer superannuation contributions. The Non-
Executive Directors of the Company can be paid a maximum aggregate base remuneration of
$500,00032 per annum inclusive of employer superannuation contributions where applicable, in such
quantum and to be divided as the Board determines appropriate.
The Board has determined the following fixed cash remuneration for current Key Management
Personnel as follows (as at 30 June 2022):
(a) Mr Farooq Khan (Chairman) - a base salary of $175,000 per annum plus employer
superannuation contributions;
(b) Mr William Johnson (Managing Director) - a base salary of $300,000 per annum plus employer
superannuation contributions;
(c) Mr Victor Ho (Director and Company Secretary) - a base salary of $175,000 per annum plus
employer superannuation contributions;
(d) Mr Malcolm Richmond (Non-Executive Director) - a base fee of $45,000 per annum plus
employer superannuation contributions; and
(e) Mr Matthew Hammond (Non-Executive Director) - a base fee of $45,000 per annum.
Special Exertions and Reimbursements: Pursuant to the Company’s Constitution, each Director is
also entitled to receive:
•
•
Payment for reimbursement of all travelling, hotel and other expenses reasonably incurred by a
Director for the purpose of attending meetings of the Board or otherwise in and about the
business of the Company; and
In respect of Non-Executive Directors, payment for the performance of extra services or the
making of special exertions for the benefit of the Company (at the request of and with the
concurrence of the Board).
Short-Term Benefits: Relevant Key Management Personnel have an opportunity to earn annual
short-term incentive (STI) cash amounts if predefined key performance indicators (KPI’s) are achieved.
The STI/KPI’s are reviewed annually (where applicable). The Board has, during the financial year,
resolved to pay STI related benefits to the Managing Director and Executive Directors, based on STI
KPI’s set in the previous financial year - refer ‘Details of Remuneration of Key Management Personnel’
in Section (4) below. No STI benefits have been set for Key Management Personnel during the
financial year.
Long-Term Benefits: The Company does not have any long-term incentive (LTI) cash bonus schemes
(or equivalent) in place for Key Management Personnel. The Company reserves the right to implement
LTI remuneration measures for Key Management Personnel if appropriate in the future.
Equity-Based Benefits: There were no equity-based benefits granted to Key Management Personnel
during the financial year. The Company has previously (on 4 December 2020, after receipt of
shareholder approval at the Company’s AGM) granted a total of 12,000,000 unlisted Directors’ Options
(each with an exercise price of $0.185, an expiry date of 3 December 2023 and subject to vesting
conditions in tranches based on the attainment of defined milestones) to the Directors as part of their
remuneration.33 There were no shares issued as a result of the exercise of options issued to Key
Management Personnel during the financial year. The Company may propose the issue of securities
to Key Management Personnel in the future (as an equity-based incentive benefit), which will be put to
shareholders for approval at that time (as required under the ASX Listing Rules and/or Corporations
Act 2001 (Cth), as applicable).
32 As approved by shareholders at the Annual General Meeting held on 25 November 2009; refer Strike’s Notice of Annual General
Meeting released on ASX on 27 October 2009 and SRK ASX Announcement dated 25 November 2009: Results of Annual General
Meeting
33 Refer Strike’s Notice of Annual General Meeting and Explanatory Statement (Resolutions 6 to 10) dated 20 October 2020 and released
on ASX on 4 November 2020 and SRK ASX Announcements dated 4 December 2020: Results of 2020 Annual General Meeting and
4 December 2020: Proposed Issue of Securities
ANNUAL REPORT | 25
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
REMUNERATION REPORT
Securities Incentive Plan: The Company adopted a Securities Incentive Plan (the Plan or SIP),
which was approved by shareholders at the Company’s AGM held on 4 December 2020. The purpose
of the Plan is to:
(a)
(b)
(c)
assist in the reward, retention, and motivation of ‘Eligible Participants’ (which includes
employees, Executive and Non-Executive Directors and contractors – not limited to Key
Management Personnel);
link the reward of Eligible Participants to shareholder value creation; and
align the interests of Eligible Participants with shareholders of the Company by providing an
opportunity to Eligible Participants to receive an equity interest in the Company in the form of
securities (which includes a share, a right to a share, an option over an issued or unissued
security and a convertible security).
Under the Plan, the Board may offer to eligible persons the opportunity to subscribe for such number
of securities in the Company on such terms and conditions as the Board may decide and otherwise
pursuant to the rules of the Plan. The maximum number of securities issued under the Plan is limited
to 5% of Strike’s issued share capital. A summary of the Plan is in Annexure A to the Notice of Annual
General Meeting and Explanatory Statement dated 20 October 2020 and released on ASX on 4
November 2020.
The Company has granted a total of 3,100,000 unlisted SIP Options (each with an exercise price of
$0.185, an expiry date of 14 February 2025 and subject to vesting conditions in tranches based on
the attainment of defined milestones) to personnel (not Key Management Personnel) as part of their
remuneration, during the financial year.34
Post-Employment Benefits: The Company does not presently provide retirement benefits to Key
Management Personnel. The Company notes that shareholder approval is required where a Company
proposes to make a “termination payment” (for example, a payment in lieu of notice, a payment for a
post-employment restraint and payments made as a result of the automatic or accelerated vesting of
share based payments) in excess of one year’s “base salary” (defined as the average base salary over
the previous 3 years) to a director or any person who holds a managerial or executive office.
Performance-Related Benefits and Financial Performance of Company: Save for any applicable
STI(s), LTI(s) or equity-based benefits that may be provided to Key Management Personnel, the
remuneration of Key Management Personnel is fixed, is not dependent on the satisfaction of a
performance condition and is unrelated to the Company’s performance.
In considering the Company's performance and its effects on shareholder wealth, Directors have had
regard to the data set out below for the latest financial year and the previous four financial years.
Profit/(Loss) Before Income Tax
Basic Earnings/(Loss) per share (cents)
Dividends Paid (total)
Dividends Paid (per share)
Capital Returns Paid (total)
Capital Returns Paid (per share)
VWAP Share Price on ASX for financial year ($)
Closing Bid Share Price on ASX at 30 June ($)
2022
(4,589,491)
(1.70)
-
-
-
-
0.17
0.11
2021
3,859,875
1.66
-
-
-
-
0.176
0.265
2020
(1,401,713)
(0.83)
-
-
-
-
0.051
0.045
2019
(1,875,093)
(1.22)
-
-
-
-
0.074
0.045
2018
(681,614)
(0.47)
-
-
-
-
0.066
0.053
34 Refer SRK ASX Announcement dated 18 February 2022: Notification regarding unquoted securities - SRK
ANNUAL REPORT | 26
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
REMUNERATION REPORT
(3) Employment Agreements
Details of the material terms of employment agreements entered by the Company with Key
Management Personnel are as follows:
Key
Management
Personnel
and Position
Held
William
Johnson
(Managing
Director)
Farooq Khan
(Executive
Chairman)
Current Base
Remuneration
$300,000
plus employer
superannuation
contributions
(10% of base
salary for
2021/22 and
10.5% from 1
July 2022)
$175,000
plus employer
superannuation
contributions
(10% of base
salary for
2021/22 and
10.5% from 1
July 2022)
Relevant
Date(s)
22 April 2013
(date of
employment
agreement)
11 March 2013
(commencement
date)
1 January 2021
(date of effect of
current
remuneration)
25 January
2021 (date of
executive
employment
agreement)
18 December
2015
(commencement
date)
1 January 2021
(date of effect of
current
remuneration)
Victor Ho
(Executive
Director and
Company
Secretary)
$175,000
plus employer
superannuation
contributions
(10% of base
salary for
2021/22 and
10.5% from 1
July 2022)
25 January
2021 (date of
executive
employment
agreement)
30 September
2015
(commencement
date)
1 January 2021
(date of effect of
current
remuneration)
Other Current Terms
• No fixed term or fixed rolling terms of service.
• Standard annual leave (20 days) and personal/sick leave (10 days
paid) entitlements plus entitlement to long service leave of 60 days
after 7 years of service with an additional 5 days after each year
of service thereafter.
• Six month’s notice of termination by executive. Company may
terminate without notice with payment of six month’s salary.
Immediate termination without notice and without payment in lieu
of notice if executive commits any serious act of misconduct.
• Save with the agreement of the Board, permitted to be a Non-
Executive Director of no more than 2 public companies provided
that it does not compromise ability to devote the care and attention
to the Company’s affairs required by the position.
• Entitlement to cash STI payments as set by the Board.
• No fixed term or fixed rolling terms of service.
• Commitment to a minimum prescribed hours per week over the
course of a 5 day working week plus reasonable additional time
required by the Company.
• Standard annual leave (20 days) and personal/sick leave (10 days
paid) entitlements plus entitlement to long service leave of 60 days
after 7 years of service with an additional 5 days after each year
of service thereafter.
• Six month’s notice of termination by the Company (or payment of
six month’s salary in lieu thereof) and one month’s notice by
executive. Immediate termination without notice if executive
commits any act of serious misconduct. Employment terminates
upon cessation as officer of the Company, with entitlement to
payment of six month’s salary(save for voluntary resignation or
immediate termination for serious misconduct).
• Permitted to continue as a Director of other existing ASX-listed
companies – concurrent role as Director of any other company is
not prohibited if it does not interfere with the proper performance
of duties.
• Entitlement to performance-related cash bonuses as agreed with
the Company from time to time.
• No fixed term or fixed rolling terms of service.
• Commitment to a minimum prescribed hours per week over the
course of a 5 day working week plus reasonable additional time
required by the Company.
• Standard annual leave (20 days) and personal/sick leave (10 days
paid) entitlements plus entitlement to long service leave of 60 days
after 7 years of service with an additional 5 days after each year
of service thereafter.
• Six month’s notice of termination by the Company (or payment of
six month’s salary in lieu thereof) and one month’s notice by
executive. Immediate termination without notice if executive
commits any act of serious misconduct. Employment terminates
upon cessation as officer of the Company, with entitlement to
payment of six month’s salary(save for voluntary resignation or
immediate termination for serious misconduct).
• Permitted to continue as a Director/Company Secretary of other
companies –
existing ASX-listed
role as
Director/Company Secretary of any other company is not
prohibited if it does not interfere with the proper performance of
duties.
concurrent
• Entitlement to performance-related cash bonuses as agreed with
the Company from time to time.
ANNUAL REPORT | 27
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
REMUNERATION REPORT
(4)
Details of Remuneration of Key Management Personnel
Details of the nature and amount of each element of remuneration of each Key Management Personnel
paid or payable by the Company during the financial year are as follows:
2022
Key
Management
Personnel
Performance-
related
%
Directors:
William Johnson
Farooq Khan
Malcolm Richmond
Matthew Hammond
Victor Ho (also
Company Secretary)
23%
23%
-
-
23%
2021
Key
Management
Personnel
Performance-
related
%
Directors:
William Johnson
Farooq Khan
Malcolm Richmond
Matthew Hammond
Victor Ho (also
Company Secretary)
-
-
-
-
-
Short-term Benefits
Post-
Employment
Benefits
Other
Long-term
Benefits
Equity-
Based
Benefits
Cash
salary
and fees
$
300,000
175,000
37,500
45,000
175,000
STI
benefits Superannuation
$
$
Long
service
leave
$
Shares &
options
$
Total
$
90,000
52,500
-
-
52,500
39,000
22,750
3,750
-
22,750
-
-
-
-
-
- 429,000
- 250,250
41,250
-
-
45,000
- 250,250
Short-term Benefits
Post-
Employment
Benefits
Other
Long-term
Benefits
Equity-
Based
Benefits
Cash
salary
and fees
$
254,000
127,500
30,000
30,000
135,000
STI
benefits Superannuation
$
-
-
-
-
-
$
24,130
12,112
2,850
-
12,825
Long
service
leave
$
Shares &
options
$
Total
$
-
-
-
-
-
- 278,130
- 139,612
32,850
-
30,000
-
- 147,825
(5) Other Benefits Provided to Key Management Personnel
No Key Management Personnel has during or since the end of the financial year, received or become
entitled to receive a benefit, other than a remuneration benefit as disclosed above, by reason of a
contract made by the Company or a related entity with the Director or with a firm of which he is a
member, or with a Company in which he has a substantial interest.
(6)
Securities held by Key Management Personnel
The number of securities in the Company held by Key Management Personnel is set below:
Shares
Key Management
Personnel
Farooq Khan
William Johnson
Victor Ho
Malcolm Richmond
Matthew Hammond
Balance at Received as part
of remuneration
-
-
-
-
-
30 June 2021
1,813,231
349,273
-
-
-
Net Other
Change
-
-
-
-
-
Balance at
30 June 2022
1,813,231
349,273
-
-
-
ANNUAL REPORT | 28
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
REMUNERATION REPORT
Directors’ Options ($0.21, 3 December 2023)
Key Management
Personnel
Farooq Khan
William Johnson
Victor Ho
Malcolm Richmond
Matthew Hammond
Balance at Received as part
of remuneration
-
-
-
-
-
30 June 2021
3,750,000
4,500,000
2,250,000
750,000
750,000
Net Other
Change
-
-
-
-
-
Balance at
30 June 2022
3,750,000
4,500,000
2,250,000
750,000
750,000
Notes:
(a)
(b)
(c)
The Directors’ Options were granted on 4 December 2020 (after receipt of shareholder approval at the Company’s
AGM held on 4 December 202035), each with an exercise price of $0.21, an expiry date of 2 December 2023 and
are subject to vesting conditions.
The terms and conditions of the Directors’ Options are set out in Annexure B to Strike’s Notice of Annual General
Meeting and Explanatory Statement dated 20 October 2020 and released on ASX on 4 November 2020.
The disclosures of holdings above are in accordance with the accounting standards which require disclosure of
securities held directly, indirectly or beneficially by each key management person, a close member of the family
of that person, or an entity over which either of these persons have, directly or indirectly, control, joint control or
significant influence (as defined under Accounting Standard AASB 124 Related Party Disclosures).
(7)
Engagement of Remuneration Consultants
The Company has not engaged any remuneration consultants
to provide remuneration
recommendations in relation to Key Management Personnel during the financial year. The Board has
established a policy for engaging external Key Management Personnel remuneration consultants
which includes, inter alia, that the Non-Executive Directors on the Remuneration Committee be
responsible for approving all engagements of and executing contracts to engage remuneration
consultants and for receiving remuneration recommendations from remuneration consultants regarding
Key Management Personnel. Furthermore, the Company has a policy that remuneration advice
provided by remuneration consultants be quarantined from Management (who are not Directors) where
applicable.
(8)
Voting and Comments on the Remuneration Report at the 2021 AGM
At the Company’s most recent (2021) AGM, a resolution to adopt the prior year (2020) Remuneration
Report was put to a vote and passed unanimously on a show of hands with the proxies received also
indicating majority (98.77%) support in favour of adopting the Remuneration Report. 36 No comments
were made on the Remuneration Report at the 2021 AGM.
This concludes the audited Remuneration Report.
35 Refer Strike’s Notice of Annual General Meeting and Explanatory Statement (Resolutions 6 to 10) dated 20 October 2020 and released
on ASX on 4 November 2020 and SRK ASX Announcements dated 4 December 2020: Results of 2020 Annual General Meeting and
4 December 2020: Proposed Issue of Securities
36 Refer Strike’s Notice of Annual General Meeting and Explanatory Statement (Resolution 3) dated 25 October 2021 and released on
ASX on 25 October 2021 and SRK ASX Announcements dated 25 November 2021: Results of 2021 Annual General Meeting
ANNUAL REPORT | 29
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
DIRECTORS’ AND OFFICERS’ INSURANCE
The Company insures Directors and Officers against liability they may incur in respect of any wrongful acts
or omissions made by them in such capacity (to the extent permitted by the Corporations Act 2001 (Cth))
(D&O Policy). Details of the amount of the premium paid in respect of the insurance policies are not disclosed
as such disclosure is prohibited under the terms of the contract.
DIRECTORS’ AND OFFICERS’ DEEDS
In addition to the rights of indemnity provided under the Company’s Constitution (to the extent permitted by
the Corporations Act 2001 (Cth)), the Company has also entered into a deed with each of the Directors and
the Company Secretary (Officer) to regulate certain matters between the Company and each Officer, both
during the time the Officer holds office and after the Officer ceases to be an officer of the Company, including
the following matters:
•
•
The Company’s obligation to indemnify an Officer for liabilities or legal costs incurred as an officer of
the Company (to the extent permitted by the Corporations Act 2001 (Cth)); and
Subject to the terms of the deed and the Corporations Act 2001 (Cth), the Company may advance
monies to the Officer to meet any costs or expenses of the Officer incurred in circumstances relating
to the indemnities provided under the deed and prior to the outcome of any legal proceedings brought
against the Officer.
LEGAL PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of a 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 such proceedings. The Company was not a party to any such proceedings during and
since the financial year.
AUDITORS
Details of the amounts paid or payable to the Auditors for audit and non-audit services provided during the
financial year are set out below:
Auditor
Rothsay Auditing
Rothsay Audit & Assurance Pty Ltd
Audit & Review Fees
$
11,000
20,000
Non-Audit Services
$
-
-
Total
$
11,000
20,000
On 9 August 2022, Rothsay Audit & Assurance Pty Ltd were appointed the Company’s Auditor, following the
resignation of the firm of ‘Rothsay Auditing’ and receipt of ASIC’s consent to that resignation.37
Rothsay Auditing completed the review of Strike for the half year ended 31 December 2021. Rothsay Audit
& Assurance Pty Ltd completed the audit of Strike for the financial year ended 30 June 2022.
Rothsay Auditing and Rothsay Audit & Assurance Pty Ltd did not provide any non-audit services during the
financial year.
Rothsay Audit & Assurance Pty Ltd continues in office in accordance with section 327C of the Corporations
Act 2001 (Cth).
37 Refer SRK Announcement dated 9 August 2022: Change of Auditors
ANNUAL REPORT | 30
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act
2001 (Cth) forms part of this Directors Report and is set out on page 32. This relates to the Auditor’s Report,
where the Auditors state that they have issued an independence declaration.
EVENTS SUBSEQUENT TO BALANCE DATE
The Directors are not aware of any matters or circumstances at the date of this Directors’ Report, other than
those referred to in this Directors’ Report or the financial statements or notes thereto (in particular Note 26),
that have significantly affected or may significantly affect the operations, the results of operations or the state
of affairs of the Company in subsequent financial years.
Signed for and on behalf of the Directors in accordance with a resolution of the Board,
Farooq Khan
Executive Chairman
29 September 2022
William Johnson
Managing Director
ANNUAL REPORT | 31
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Strike Resources Limited for the year ended 30 June 2022, I declare
that, to the best of my knowledge and belief, there have been:
• no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
• no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Strike Resources Limited and the entities it controlled during the
year.
Rothsay Audit & Assurance Pty Ltd
Daniel Dalla
Director
29 September 2022
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2022
REVENUE
Sales of iron ore
Cost of goods sold
Other
Gain on disposal of subsidiaries
Net gain on financial assets at fair value through profit or loss
Dividend revenue
Interest revenue
Other income
TOTAL REVENUE AND INCOME
EXPENSES
Share of Associate entity's net loss
Mining expenses
Mining production expenses
Exploration and evaluation expenses
Impairment reversal
Personnel expenses
Share-based payments
Corporate expenses
Occupancy expenses
Finance expenses
Foreign exchange gain/(loss)
Administration expenses
Note
2
3
2022
$
9,642,676
(9,473,269)
169,407
2021
$
-
-
-
-
6,636,858
16,973
4,851
1,190
1,716
73,978
2,066
4,133
50,665
194,137
6,767,700
(991,471)
(350,061)
(440,084)
-
-
-
(78,693)
635,912
(2,052,767)
(1,040,206)
-
(519,860)
(182,556)
(93,874)
301,026
(804,042)
(761,502)
(703,729)
(64,005)
(11,567)
(108,944)
(425,030)
PROFIT/(LOSS) BEFORE INCOME TAX
(4,589,491)
3,859,875
Income tax expense
5
-
-
PROFIT/(LOSS) FOR THE YEAR
(4,589,491)
3,859,875
OTHER COMPREHENSIVE INCOME
Other Comprehensive Income, Net of Tax
Exchange differences on translation of foreign operations
237,674
(162,788)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(4,351,817)
3,697,087
PROFIT/(LOSS) PER SHARE FOR LOSS ATTRIBUTABLE TO THE
ORDINARY EQUITY HOLDERS OF THE COMPANY:
Basic and diluted earnings/(loss) per share (cents)
6
(1.70)
1.66
ANNUAL REPORT | 33
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
as at 30 June 2022
CURRENT ASSETS
Cash and cash equivalents
Financial assets at fair value through profit or loss
Inventory
Receivables
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Investment in Associate entity
Mine development
Property, plant and equipment
Note
2022
$
2021
$
7
11
10
21
12
13
4,206,548
6,449,512
864
238,061
95,543
1,353,363
1,220,039
381,081
207,242
14,095
5,904,075
8,262,273
5,540,968
9,890,168
283,556
6,532,439
3,438,629
402,651
TOTAL NON-CURRENT ASSETS
15,714,692
10,373,719
TOTAL ASSETS
CURRENT LIABILITIES
Payables
Provisions
21,618,767
18,635,992
14
2,345,591
2,037,490
178,064
125,625
TOTAL CURRENT LIABILITIES
2,523,655
2,163,115
NON-CURRENT LIABILITIES
Borrowings
14
6,974,052
TOTAL NON-CURRENT LIABILITIES
6,974,052
-
-
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Profits reserve
Share-based payments reserve
Foreign currency translation reserve
Accumulated losses
TOTAL EQUITY
15
16
9,497,707
2,163,115
12,121,060
16,472,877
159,420,982
159,420,982
24,402,692
6,585,022
13,402,658
13,402,658
1,907,821
1,670,147
(187,013,093)
(164,605,932)
12,121,060
16,472,877
ANNUAL REPORT | 34
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
For the year ended 30 June 2022
Share-based
payments
reserve
Issued capital
$
$
BALANCE AT 1 JUL 2020
151,049,893
13,233,026
Profit for the year
Profit reserve transfer
Other comprehensive income
Total comprehensive income
for the year
Transactions with owners
in their capacity as owners:
Issue of shares
Cost of issued shares
Share based payments
-
-
-
9,030,461
(659,372)
-
-
-
-
-
-
169,632
Foreign
currency
translation
reserve
Accumulated
losses
$
$
Total
$
1,832,935
(161,880,785)
4,235,069
-
3,859,875
3,859,875
Profits
reserve
$
-
-
6,585,022
(6,585,022)
-
-
(162,788)
-
(162,788)
6,585,022
(162,788)
(2,725,147)
3,697,087
-
-
-
-
-
-
-
-
-
9,030,461
(659,372)
169,632
BALANCE AT 30 JUN 2021
159,420,982
13,402,658
6,585,022
1,670,147
(164,605,932)
16,472,877
BALANCE AT 1 JUL 2021
159,420,982
13,402,658
6,585,022
1,670,147
(164,605,932)
16,472,877
Loss for the year
Profits reserve transfer
Other comprehensive income
Total comprehensive income
for the year
-
-
-
-
-
-
-
-
-
17,817,670
-
-
(4,589,491)
(4,589,491)
(17,817,670)
-
-
237,674
-
237,674
17,817,670
237,674
(22,407,161)
(4,351,817)
BALANCE AT 30 JUN 2022
159,420,982
13,402,658
24,402,692
1,907,821
(187,013,093)
12,121,060
ANNUAL REPORT | 35
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
CONSOLIDATED STATEMENT
OF CASH FLOWS
For the year ended 30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from sales of iron ore
Payments to suppliers and employees
Payments for exploration and evaluation
Payments for ore extraction
Other receipts
Other income
Note
2022
$
2021
$
9,642,676
-
(2,514,203)
(1,246,259)
-
(3,463,702)
(9,060,082)
-
1,716
-
50,000
665
NET CASH USED IN OPERATING ACTIVITIES
7(a)
(1,929,893)
(4,659,296)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Dividends received
Payments for mine development
Payment for purchases of mining equipment
Payment for purchases of office equipment
Proceeds from disposal of office equipment
Proceeds from realisation of share investments
1,190
4,851
(6,451,539)
(191,861)
(18,761)
4,377
254,170
4,133
2,066
-
(407,541)
-
-
-
NET CASH USED IN INVESTING ACTIVITIES
(6,397,573)
(401,342)
CASH FLOWS FROM FINANCING ACTIVITIES
Prepayments received - iron ore sale
Reversal of prepayments against recognition of iron ore sale
Loan from third party
Issue of shares
Cost of issuing shares
Issue of options
8,011,088
(9,439,338)
6,974,052
-
-
-
-
-
-
9,030,461
(489,773)
33
NET CASH PROVIDED BY FINANCING ACTIVITIES
5,545,802
8,540,721
NET INCREASE/(DECREASE) IN CASH HELD
(2,781,664)
3,480,083
Cash and cash equivalents at beginning of financial year
6,449,512
3,241,161
Effect of exchange rate changes on cash held
538,700
(271,732)
CASH AND CASH EQUIVALENTS AT END
OF FINANCIAL YEAR
7
4,206,548
6,449,512
ANNUAL REPORT | 36
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the financial year ended 30 June 2022
1.
ABOUT THIS FINANCIAL REPORT
(c)
1.1
Background
the consolidated
financial report covers
financial
This
statements of the consolidated entity consisting of Strike
Resources Limited (ASX:SRK) (the Company or SRK), its
subsidiaries and investments in associates (the Consolidated
Entity or Strike). The financial report is presented in the
Australian currency.
Strike Resources Limited is a company limited by shares
incorporated in Australia and whose shares are publicly traded
on the Australian Securities Exchange (ASX).
(d)
These
financial statements have been prepared on a
streamlined basis where key information is grouped together
for ease of understanding and readability. The notes include
information which is required to understand the financial
statements and is material and relevant to the operations,
financial position and performance of the Consolidated Entity.
Information is considered material and relevant if, for example:
(a)
(b)
(c)
(d)
the amount in question is significant because of its size
or nature;
it is important for understanding the results of the
Consolidated Entity;
it helps to explain the impact of significant changes in
the Consolidated Entity’s business; or
it relates to an aspect of the Consolidated Entity’s
operations
future
performance.
that may be
important
to its
The notes to the financial statements are organised into the
following sections:
(f)
(a)
Key Performance: Provides a breakdown of the key
individual line items in the statement of Profit or Loss
and other comprehensive income
is most
relevant
to understanding performance and
shareholder returns for the year:
that
Notes
2
3
4
5
6
Revenue
Expenses
Segment information
Tax
Earnings per share
(b)
Financial Risk Management: Provides information
about
the Consolidated Entity’s exposure and
management of various financial risks and explains
how these affect the Consolidated Entity’s financial
position and performance:
Notes
7
8
9
Cash and cash equivalents
Financial risk management
Fair value measurement of financial
instruments
Other Assets and Liabilities: Provides information
on other balance sheet assets and liabilities that do
materially affect performance or give rise to material
financial risk:
Notes
10
11
12
13
14
Receivables
Inventory
Mine development
Property, plant and equipment
Payables
Capital Structure: This section outlines how the
Consolidated Entity manages its capital structure and
related financing costs (where applicable), as well as
capital adequacy and reserves. It also provides
details on the dividends paid by the Company:
Notes
15
16
17
18
Issued capital
Reserves
Shared-based payments
Capital risk management
(e)
Consolidated Entity Structure: Provides details and
disclosures relating to the parent entity of the
Consolidated Entity, controlled entities, investments
in associates and any acquisitions and/or disposals of
businesses in the year. Disclosure on related parties
is also provided in the section:
Notes
19
20
21
22
Parent entity information
Investment in controlled entities
Investment in Associate entity
Related party transactions
Other: Provides information on items which require
disclosure to comply with Australian Accounting
Standards and other regulatory pronouncements
however, are not
in
understanding the financial performance or position of
the Consolidated Entity:
considered
significant
Notes
23
24
25
26
Auditor’s remuneration
Commitments
Contingencies
Events occurring after the reporting period
Significant and other accounting policies that summarise the
measurement basis used and presentation policies and are
relevant to an understanding of the financial statements are
provided throughout the notes to the financial statements.
1.2
Basis of Preparation
These general purpose financial statements have been
prepared in accordance with Australian Accounting Standards,
other authoritative pronouncements of
the Australian
Accounting Standards Board, Australian Accounting
Interpretations and the Corporations Act 2001 (Cth). The
Company is a for-profit entity for the purpose of preparing the
financial statements.
Compliance with
Standards (IFRS)
International Financial Reporting
The consolidated financial statements of the Consolidated
Entity comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards
Board (IASB).
ANNUAL REPORT | 37
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the financial year ended 30 June 2022
Reporting Basis and Financial Statement Presentation
1.7
Leases
The financial report has been prepared on a going concern and
accrual basis and is based on historical costs modified by the
revaluation of financial assets and financial liabilities for which
the fair value basis of accounting has been applied.
The principal accounting policies adopted in the preparation of
these financial statements have been consistently applied to
all the years presented, unless otherwise stated.
1.3
Principles of Consolidation
The consolidated financial statements incorporate the assets
and liabilities of the Company as at 30 June 2022 and the
results of its subsidiaries for the year then ended. The
Company and its subsidiaries are referred to in this financial
report as Strike or the Consolidated Entity.
All inter-company balances and transactions between entities
in the Consolidated Entity, including any unrealised profits or
losses, have been eliminated on consolidation.
1.4
Comparative Figures
Where required by the Accounting Standards, comparative
figures have been adjusted to conform to changes in
presentation for the current financial period.
1.5
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of GST, except where the amount of GST incurred is
not recoverable from the Australian Tax Office. In these
circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense.
Receivables and payables in the balance sheet are shown
inclusive of GST. Cash flows are presented in the Statement
of Cash Flows on a gross basis, except for the GST component
of investing and financing activities, which are disclosed as
operating cash flows.
1.6
Impairment of Assets
At each reporting date, the Consolidated Entity reviews the
carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets
have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the
asset’s fair value less costs to sell and value in use, is
compared to the asset’s carrying value. Any excess of the
asset’s carrying value over its recoverable amount is expensed
to the profit or loss. Impairment testing is performed annually
for goodwill and intangible assets with indefinite lives. Where
it is not possible to estimate the recoverable amount of an
individual asset,
the
recoverable amount of the cash-generating unit to which the
asset belongs
the Consolidated Entity estimates
the
lease commencement,
At
the Consolidated Entity
recognises a right-of-use asset and associated lease liability
for the lease term. The lease term includes extension periods
where the Consolidated Entity believes it is reasonably certain
that the option will be exercised.
The right-of-use asset is measured using the cost model where
cost on initial recognition comprises of the lease liability, initial
direct costs, prepaid lease payments, estimated cost of
removal and restoration less any lease incentives received.
The right-of-use asset is depreciated over the lease term on a
straight-line basis and assessed for impairment in accordance
with the impairment of assets accounting policy.
The lease liability is initially measured at the present value of
the remaining lease payments at the commencement of the
lease. The discount rate is the rate implicit in the lease,
however where this cannot be readily determined then the
Consolidated Entity’s incremental borrowing rate is used.
Subsequent to initial recognition, the lease liability is measured
at amortised cost using the effective interest rate method. The
lease liability is remeasured whether there is a lease
modification, change in estimate of the lease term or index
upon which the lease payments are based (e.g. CPI) or a
change in the Consolidated Entity’s assessment of lease term.
Where the lease liability is remeasured, the right-of-use asset
is adjusted to reflect the remeasurement or is recorded in profit
or loss if the carrying amount of the right-of-use asset has been
reduced to zero.
Exceptions to lease accounting
The Consolidated Entity has elected to apply the exceptions to
lease accounting for both short-term leases (i.e. leases with a
term of less than or equal to 12 months) and leases of
low-value assets. The Consolidated Entity recognises the
payments associated with these leases as an expense on a
straight-line basis over the lease term.
1.8
New, revised or amending Accounting Standards
and Interpretations adopted
The Consolidated Entity has adopted all of the new, revised or
amending Accounting Standards and Interpretations issued by
the AASB that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or
Interpretations that are not mandatory have not been early
adopted. These are not expected to have a material impact on
the Consolidated Entity’s financial statements.
ANNUAL REPORT | 38
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
2.
REVENUE
The Consolidated Entity's operating profit/(loss) before income tax includes the
following items of revenue:
Revenue
Sales of iron ore
Cost of goods sold
Other
Gain on disposal of subsidiaries
Net gain on financial assets at fair value through profit or loss
Dividend revenue
Interest revenue
Other income
2022
$
2021
$
9,642,676
(9,473,269)
169,407
-
-
-
-
6,636,858
16,973
4,851
1,190
1,716
73,978
2,066
4,133
50,665
194,137
6,767,700
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Consolidated
Entity and the revenue can be reliably measured. The following specific recognition criteria must also be met
before revenue is recognised:
(i) Revenue from contracts of sale with customers
Each iron ore shipment is governed by a sales contract with a customer. The performance obligation under
the sale contract is the delivery of iron ore. Revenue from iron ore sales is recognised when control of the iron
ore passes to the customer, which generally occurs at a point in time when the iron ore is physically loaded on
to a ship for export. This is the point where title in the iron ore passes to the customer, together with
significant risks and rewards of ownership. The amount of revenue recognised reflects the sale consideration
which the Consolidated Entity expects it is entitled to, in exchange for the iron ore sold. Sale consideration
may be recognised based on proceeds received under a provisional
invoice (issued after the date of
shipment) with a subsequent further receipt/refund payment under a final invoice (issued after the iron ore has
been delivered to the customer at the discharge port).
(ii) Sale of financial assets and other goods and assets
Revenue from the sale of financial assets, and other goods/assets is recognised when the Consolidated Entity
has passed control of the financial assets and other goods/assets to the buyer.
(iii) Interest revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
(iv) Dividend revenue
Dividend revenue is recognised when the right to receive a dividend has been established. The Consolidated
Entity brings dividend revenue to account on the applicable ex-dividend entitlement date.
(v) Other revenues
Other revenues are recognised on an accruals basis.
ANNUAL REPORT | 39
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
3.
EXPENSES
The Consolidated Entity's operating profit/(loss) before income tax includes the
following items of expenses:
Share of Associate entity's net loss
Mine development expenses
Mining production expenses
Exploration and evaluation expenses
Impairment loss/(reversal)
Personnel expenses
Salaries, fees and employee benefits
Share-based payments
Corporate expenses
Professional fees
ASX and CHESS fees
ASIC fees
Accounting, taxation and related administration
Audit
Share registry
Other corporate expenses
Occupancy expenses
Finance expenses
Foreign exchange loss/(gain)
Administration expenses
Insurance
Office administration
Travel, accommodation and incidentals
Depreciation
Other administration expenses
2022
$
2021
$
991,471
350,061
440,084
-
-
-
78,693
(635,912)
2,052,767
1,040,206
-
761,502
182,306
51,865
7,957
225,927
31,000
17,348
3,457
182,556
93,874
350,141
84,303
12,061
185,079
26,000
25,253
20,892
64,005
11,567
(301,026)
108,944
97,336
74,243
18,954
325,340
288,169
4,783,628
44,428
56,605
12,002
9,049
302,946
2,907,825
Accounting policy
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income,
except when they are deferred in equity as qualifying cash flow hedges and qualifying net investment hedges or are
attributable to part of the net investment in a foreign operation. Foreign exchange gains or losses that relate to
borrowings are presented in the Consolidated Statement of Profit or Loss and Other Comprehensive Income within
finance costs. All other foreign exchange gains and losses are presented in the Consolidated Statement of Profit or
Loss and Other Comprehensive Income on a net basis within other income or operating expenses.
ANNUAL REPORT | 40
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
4.
SEGMENT INFORMATION
2022
Revenue
Other
Total segment revenues and other income
Cost of goods sold
Share of Associate entity's net loss
Mine development expenses
Personnel expenses
Corporate expenses
Finance expenses
Depreciation expense
Other expenses
Total segment profit/(loss)
Adjusted EBITDA
Total segment assets
Total segment liabilities
2021
Revenue
Other
Total segment revenues
Share of Associate entity's net loss
Exploration and evaluation expenses
Personnel expenses
Corporate expenses
Finance expenses
Depreciation expense
Other expenses
Total segment loss
Adjusted EBITDA
Total segment assets
Total segment liabilities
Peru
$
Australia
$
Total
$
9,642,676
-
9,642,676
9,473,269
-
159,352
155,090
192,027
8,504
-
179,979
-
24,730
24,730
-
991,471
280,732
9,642,676
24,730
9,667,406
9,473,269
991,471
440,084
1,897,677
2,052,767
327,833
85,370
325,340
180,253
519,860
93,874
325,340
360,232
(525,545)
(4,063,946)
(4,589,491)
(525,545)
(3,662,051)
(4,187,596)
560,726
155,612
21,058,041
21,618,767
9,342,095
9,497,707
Peru
$
-
-
-
-
17,445
Australia
$
4,133
6,762,902
6,767,035
350,061
(574,664)
Total
$
4,133
6,763,567
6,767,700
350,061
(557,219)
-
1,801,708
1,801,708
76,603
6,827
11
333,267
(434,153)
(434,164)
625,285
4,661
9,038
279,956
4,270,990
4,261,952
703,729
11,567
9,049
588,930
3,859,875
3,850,826
Argentina
$
-
665
665
-
-
-
1,841
79
-
(24,293)
23,038
23,038
-
-
1,603,676
17,032,316
18,635,992
129,344
2,033,771
2,163,115
Accounting policy
The operating segments are reported in a manner consistent with the internal reporting provided to the Managing
Director. The Managing Director is responsible for allocating resources and assessing performance of
the
operating segments and has considered the business and geographical perspectives of the operating results and
determined that the Consolidated Entity operated only in Australia and Peru during the financial year.
ANNUAL REPORT | 41
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
5.
TAX
(a) The components of tax expense comprise:
Current tax
Deferred tax
2022
$
-
-
-
2021
$
-
-
-
(b)
The prima facie tax on operating loss before income tax is reconciled
to the income tax as follows:
Prima facie tax payable on operating loss before income tax at 25% (2021:
26%)
(1,147,372)
1,003,567
Adjust tax effect of:
Non-deductible expenses
Movement in unrecognised temporary differences
Current year tax losses not recognised
Prior year tax losses recognised
Income tax attributable to entity
(c) Unrecognised deferred tax balances
Unrecognised deferred tax asset - revenue losses
Unrecognised deferred tax asset - other
12,038
-
1,135,334
14,059
1,287
-
-
-
(1,018,913)
-
8,551,494
3,852,919
12,404,413
4,600,750
4,007,036
8,607,786
Critical accounting judgement and estimate
Deferred tax assets have not been recognised as, in the Directors' opinion, it is not probable that future taxable
profit will be available against which the Consolidated Entity can utilise the benefits. The utilisation of revenue and
capital tax losses are subject to compliance with taxation legislation.
Accounting policy
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and for unused tax losses. The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the
Company’s subsidiaries and associates operate and generate taxable income. Management periodically evaluates
positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is
also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the
reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled.
ANNUAL REPORT | 42
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
5.
TAX (continued)
Accounting policy (continued)
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets
and liabilities are not recognised for temporary differences between the carrying amount and tax bases of
investments in foreign operations where the Company is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities, and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
Other Comprehensive Income or directly in equity. In this case, the tax is also recognised in Other Comprehensive
Income or directly in equity, respectively.
6.
EARNINGS/(LOSS) PER SHARE
Basic and diluted earnings/(loss) per share
2022
cents
(1.70)
2021
cents
1.66
The following represents the earnings/(loss) and weighted average number of
shares used in the EPS calculations:
Net profit/(loss) after income tax
Weighted average number of ordinary shares
(4,589,491)
3,859,875
Shares
Shares
270,000,000
232,058,583
Accounting policy
Basic earnings/loss per share is determined by dividing the operating result after income tax by the weighted
average number of ordinary shares on issue during the financial period.
Diluted earnings/loss per share adjusts the figures used in the determination of basic earnings/loss per share by
taking into account amounts unpaid on ordinary shares and any reduction in earnings/loss per share that will
probably arise from the exercise of options outstanding during the financial period.
7.
CASH AND CASH EQUIVALENTS
Cash at bank
Term deposits
2022
$
4,206,548
-
4,206,548
2021
$
5,314,320
1,135,192
6,449,512
ANNUAL REPORT | 43
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
7.
CASH AND CASH EQUIVALENTS (continued)
(a)
Reconciliation of operating profit/(loss) after income tax to net cash
used in operating activities
Profit/(Loss) after income tax
Add non-cash items:
Depreciation
Share of Associate entity's net loss
Impairment/(reversal) of Mine development
Unrealised movement in financial assets
Adjustment for movement in foreign exchange
Changes in assets and liabilities:
Financial assets at fair value through profit or loss
Receivables
Other current assets
Investment in Associate entity
Inventory
Payables
Provisions
Loan from third party
2022
$
2021
$
(4,589,491)
3,859,875
325,340 9,049
991,471 350,061
- (635,912)
11,705 (74,578)
(301,026)
108,941
(28,679)
(6,879,400)
(1,018,838)
(155,946)
(366,986)
(8,262)
-
(2,500)
1,257,820
1,659,808
52,439
(3,139,367)
1,793,079
115,664
76,544
-
(1,929,893)
(4,659,296)
Accounting policy
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less and bank overdrafts. Bank overdrafts (if any) are shown
within short-term borrowings in current liabilities on the Statement of Financial Position.
8.
FINANCIAL RISK MANAGEMENT
instruments consist of deposits with banks, receivables and payables. The
The Consolidated Entity's financial
Consolidated Entity's financial instruments are subject to market (which includes interest rate and foreign exchange
risk), credit and liquidity risks.
The Board is responsible for the overall internal control framework (which includes risk management) but no cost-
effective internal control system will preclude all errors and irregularities. The system is based, in part, on the
appointment of suitably qualified management personnel. The effectiveness of the system is continually reviewed
by management and at least annually by the Board.
The financial receivables and payables of the Consolidated Entity in the table below are due or payable within 30
days. The Consolidated Entity holds the following financial assets and liabilities:
ANNUAL REPORT | 44
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
8.
FINANCIAL RISK MANAGEMENT (continued)
Cash and cash equivalents
Financial assets at fair value through profit or loss
Receivables
Payables
Net financial assets
(a) Market risk
Note
7
10
14
2022
$
2021
$
4,206,548
6,449,512
864
1,220,039
5,427,451
238,061
207,242
6,894,815
(2,345,591)
(2,037,490)
3,081,860
4,857,325
Market risk is the risk that the fair value and/or future cash flows from a financial
instrument or asset will
fluctuate as a result of changes in market factors. Market risk comprises of foreign exchange risk from
fluctuations in foreign currencies and interest rate risk from fluctuations in market interest rates.
(i) Commodity price risk
iron ore), driven by market
The Consolidated Entity is exposed to commodity price risk whereby fluctuations in the prices of
commodities (i.e.
its financial performance. Volatile
fluctuations in commodity prices creates significant business challenges that affects credit availability,
production costs and product pricing. This price volatility creates an imperative for the Consolidated
Entity to manage the impact of commodity price fluctuations across its value chain to effectively manage
its financial performance and profitability.
factors, can affect
(ii) Foreign exchange risk
The Consolidated Entity operates internationally and is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the US dollar and Peruvian Nuevo Soles. Foreign
exchange risk arises from future commercial
transactions and recognised assets and liabilities
denominated in a currency that is not the Consolidated Entity's functional currency. The risk is measured
using sensitivity analysis and cash flow forecasting. The Consolidated Entity has a policy of generally
not hedging foreign exchange risk and therefore has not entered into any hedging against movements in
foreign currencies against the Australian dollar, including forward exchange contracts, as at the reporting
date and is currently fully exposed to foreign exchange risk. The Consolidated Entity's exposure to
foreign exchange risk expressed in US dollars at the reporting date are as follows:
Cash and cash equivalents
Loan from third party
Payables
Net financial assets/(liabilities)
2022
USD
2,545,620
(5,053,822)
(107,465)
(2,615,667)
2021
USD
975,041
-
(97,008)
878,033
The Consolidated Entity has performed a sensitivity analysis on its exposure to exchange risk.
Management's assessment is based upon an analysis of current and future market positions. The
analysis (below) demonstrates the effect on the current year results and equity if the Australian dollar
strengthened or declined by 10% against the foreign currency detailed above.
ANNUAL REPORT | 45
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
8.
FINANCIAL RISK MANAGEMENT (continued)
(ii) Foreign exchange risk (continued)
Increase 10%
Decrease 10%
Impact on post-tax profit
Impact on equity
2022
$
(261,567)
261,567
2021
$
87,803
(87,803)
2022
$
(261,567)
261,567
2021
$
87,803
(87,803)
(iii)
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market
interest rates. The Consolidated Entity's exposure to market risk for changes in interest rates relate
primarily to investments held in interest bearing instruments. The weighted average interest rate of the
cash at bank for the year for the table below is 0.1% (2021: 0.1%).
The table (below) illustrates the sensitivity of profit and equity to a reasonably possible change in interest
rates based on observation of current market conditions. The calculations are based on a change in the
average market interest rate and the financial instruments that are sensitive to changes in interest rates.
Increase by 25bps
Decrease by 25bps
Impact on post-tax profit
Impact on equity
2022
$
10,516
(10,516)
2021
$
16,124
(16,124)
2022
$
10,516
(10,516)
2021
$
16,124
(16,124)
(b)
Liquidity risk
Liquidity risk is the risk that the Consolidated Entity will encounter difficulty in meeting obligations associated
with financial liabilities. The Consolidated Entity has a loan with a third party (refer to Note 14) which has a
maturity obligation of more than 12 months. The Consolidated Entity's non-cash assets can be realised to
meet trade and other payables arising in the normal course of business. The financial liabilities disclosed in
the table above have a maturity obligation of not more than 30 days.
(c) Credit risk
Credit risk refers to the risk that a counterparty under a financial instrument will default (in whole or in part) on
its contractual obligations resulting in financial loss to the Consolidated Entity. Credit risk arises from cash
and cash equivalents and deposits with banks and financial institutions, including outstanding receivables and
committed transactions. Concentrations of credit risk are minimised primarily by management carrying out all
market transactions through recognised and creditworthy brokers and the monitoring of receivable balances.
The Consolidated Entity's business activities do not necessitate the requirement for collateral as a means of
mitigating the risk of financial loss from defaults.
The credit quality of the financial assets are neither past due nor impaired and can be assessed by reference
to external credit ratings or to historical information about counterparty default rates. The maximum exposure
to credit risk at reporting date is the carrying amount of the financial assets as summarised below:
ANNUAL REPORT | 46
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
8.
FINANCIAL RISK MANAGEMENT (continued)
(c) Credit Risk (continued)
Cash and cash equivalents
AA-
No external credit rating available
Receivables (due within 30 days)
No external credit rating available
2022
$
4,149,288
57,260
4,206,548
2021
$
6,197,897
250,238
6,448,135
1,220,039
207,242
9.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
Fair value hierarchy
AASB 13 (Fair Value Measurement) requires disclosure of fair value measurements by level of the following fair
value measurement hierarchy:
(i)
(ii)
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices); and
(iii)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Financial assets at fair value through
profit or loss:
Level 1
Level 2
Level 3
Listed securities at fair value
2022
2021
$
864
238,061
$
-
-
$
Total
$
-
-
864
238,061
There have been no transfers between the levels of the fair value hierarchy during the financial year.
(a) Valuation techniques
The fair value of the listed securities traded in active markets is based on closing bid prices at the end of the
reporting period. These investments are included in Level 1.
The fair value of any assets that are not traded in an active market are determined using certain valuation
techniques. The valuation techniques maximise the use of observable market data where it is available, or
independent valuation and rely as little as possible on entity specific estimates. If all significant inputs required
to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the
significant inputs is not based on observable market data, the instrument is included in Level 3.
(b) Fair values of other financial assets and liabilities
Cash and cash equivalents
Receivables
Payables
Note
7
10
14
2022
$
4,206,548
1,220,039
5,426,587
2021
$
6,449,512
207,242
6,656,754
(2,345,591)
(2,037,490)
3,080,996
4,619,264
Due to their short-term nature, the carrying amounts of cash, current receivables and current payables is
assumed to approximate their fair value.
ANNUAL REPORT | 47
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
10. RECEIVABLES
Deposits
Other receivables
Risk exposure
2022
$
460,766
759,273
1,220,039
2021
$
-
207,242
207,242
The Consolidated Entity’s exposure to credit and interest rate risks is discussed in Note 8.
Accounting policy
AASB 9 (Financial Instruments) requires the expected credit loss (ECL) impairment model that requires the
Consolidated Entity to adopt an ECL position across the Consolidated Entity’s financial assets. The Consolidated
Entity’s receivables balance comprises deposits, GST refunds from the Australian Tax Office.
At each reporting date, the Consolidated Entity reviews the carrying value of its financial assets based on the ECL
model under AASB 9, which proposes three approaches in assessing impairment:
(i)
(ii)
the simplified approach (which will be applied to most trade receivables) which requires the recognition of
lifetime ECLs by considering forward-looking assumptions and information regarding expected future
conditions affecting historical customer default rates;
the general approach (which will be applied to most loans and debt securities) whereby ECL is recognised in
two stages. For credit exposures for which there has not been a significant increase in credit risk since initial
recognition, the Consolidated Entity will provide for credit losses that result from default events that are
possible within the next 12 months. For those credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss allowance will arise for credit losses expected over the
remaining life of exposure, irrespective of the timing of the default; and
(iii)
For purchased or originated credit-impaired receivables, the fair value at initial recognition already takes into
account lifetime expected losses. At each reporting date, the Consolidated Entity updates its estimated cash
flows and adjusts the loss allowance accordingly.
The loss allowances for financial assets are based on the assumptions about risk of default and expected loss
rates. The Consolidated Entity uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on the Consolidated Entity’s past history, existing market conditions as well as
forward looking estimates at the end of each reporting period. The Consolidated Entity has not recognised any
additional impairment to its current receivables or non-current receivables as a result of the application of AASB 9.
This is due to the fact that the Consolidated Entity does not consider that there are any further ECL to the current
carrying values of its current receivables or its non-current receivables.
11.
INVENTORY
Iron ore
2022
$
2021
$
95,543
1,353,363
Iron ore represents stockpiles of iron ore (and ancillary supplies) that has been mined and is available for further
processing or sale.
ANNUAL REPORT | 48
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
11.
INVENTORY (continued)
Accounting policy
Recognition and measurement
Ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable value. Cost
is determined on a weighted average basis and comprises mining costs, direct materials, direct labour, haulage,
depreciation and an appropriate proportion of overhead expenditure, the latter being allocated on the basis of
normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to effect the sale.
No provision was required to write down Inventory to their recoverable value as at the reporting date. At the
reporting date, all Inventory on hand is valued at cost.
Inventory valuation
Accounting for Inventory involves the use of judgements and estimates, particularly related to the measurement
and valuation of inventory on hand within the production process. Certain estimates, including expected metal
recoveries and work in progress volumes, are calculated by appropriately qualified and experienced personnel
using available industry and technical data. Estimates used are periodically reassessed by the Consolidated Entity
after considering technical analysis and historical performance. Changes in estimates are adjusted for on a
prospective basis.
Net realisable value and classification of Inventory
The assessment of the net realisable value and classification of Inventory involves significant judgements and
estimates in relation to timing and cost of processing, commodity prices, recoveries and the likely timing of sale of
the inventory. A change in any of these assumptions will alter the estimated net realisable value and may therefore
impact the carrying amount of Inventory.
12. MINE DEVELOPMENT
Exploration and evaluation expenditure
Mine development expenditure
Movements in Exploration and evaluation expenditure
Opening balance
Exploration and evaluation expenditure costs
Reclassification to Mine development
Impairment loss/(reversal)
Closing balance
Movements in Mine development expenditure
Opening balance
Reclassification from Exploration and evaluation expenditure
Mine development costs
Closing balance
2022
$
-
9,890,168
9,890,168
3,438,629
878,896
(4,317,525)
-
-
-
4,317,525
5,572,643
9,890,168
2021
$
3,438,629
-
3,438,629
1,016,713
1,786,004
-
635,912
3,438,629
-
-
-
-
ANNUAL REPORT | 49
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
12. MINE DEVELOPMENT (continued)
During the financial year, the Consolidated Entity reclassified capitalised Exploration and evaluation expenditure
pertaining to the Paulsens East Iron Ore Project (located in Western Australia) to capitalised Mine development
expenditure, after the Consolidated Entity had completed a feasibility study, secured project finance and made an
investment decision to proceed to commencement of Stage 1 Production (involving the mining of surface detritals
materials and export at the rate of 200,000 tonnes per annum). A further reclassification to Mining properties will
be considered after an investment decision is made to commence mining the Paulsens East hematite ridge for
export (at the rate of up to approximately 1.8 million tonnes per annum).
Accounting policy
Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is initially capitalised in respect of each identifiable area of interest
where the Consolidated Entity has right of tenure. These costs are only carried forward to the extent that they are
expected to be recouped through the successful development of the area or where activities in the area have not
yet reached a stage that permits reasonable assessment of the existence or otherwise of economically-recoverable
reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in
which the decision to abandon the area is made.
Under AASB 6 (Exploration for and Evaluation of Mineral Resources), if facts and circumstances suggest that the
carrying amount of any recognised exploration and evaluation assets may be impaired, the Consolidated Entity
must perform impairment tests on those assets and measure any impairment in accordance with AASB 136
(Impairment of Assets). Any impairment loss is to be recognised as an expense. A regular review is undertaken of
each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of
interest.
Reclassification to Mine development
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest
are demonstrable and a management decision to invest further has been made, exploration and evaluation assets
attributable to that area of interest are first tested for impairment and then reclassified to mining property under
development (Mine development).
Mine development
Mine development represents the costs incurred in preparing mines for production and includes plant and
equipment under construction and operating costs incurred before production commences. Pre-production
revenues are offset against capitalised pre-production costs.
Future Reclassification to Mining property and Units of production method of amortisation
Once production commences,
these costs are transferred to mining properties (under property, plant and
equipment), and are amortised using the units of production method. As the useful life of a mining property asset is
directly linked to the extraction of ore from the mine, the amortisation charges are proportional to the depletion of
the estimated economically recoverable resource pertaining to the mine. The unit of account used in the calculation
is tonnes of ore. The mining property is written-off if the mine is abandoned.
13. PROPERTY, PLANT AND EQUIPMENT
2022
At cost
Accumulated depreciation
2021
At cost
Accumulated depreciation
Office Plant & Mining Plant &
Equipment
Equipment
$
49,107
(23,578)
25,529
34,735
(8,223)
26,512
$
576,044
(318,017)
258,027
384,183
(8,044)
376,139
Total
$
625,151
(341,595)
283,556
418,918
(16,267)
402,651
ANNUAL REPORT | 50
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
13. PROPERTY, PLANT AND EQUIPMENT (continued)
Office Plant & Mining Plant &
Equipment
Equipment
Movements in carrying amounts
At 1 Jul 2020
Additions
Depreciation expense
At 30 Jun 2021
Additions
Disposal
Depreciation expense
At 30 Jun 2022
$
2,871
25,931
(2,290)
26,512
18,761
(4,377)
(15,365)
25,531
$
1,287
381,610
(6,758)
376,139
191,861
-
(309,975)
258,025
Total
$
4,158
407,541
(9,048)
402,651
210,622
(4,377)
(325,340)
283,556
Accounting policy
All
impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
items of property, plant and equipment are stated at historical cost
less accumulated depreciation and
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash
flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows
have been discounted to their present value in determining recoverable amount.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Consolidated Entity
and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or
loss during the financial period in which they are incurred. The depreciation rates used for each class of
depreciable assets are:
Class of Fixed Asset
Rate
Office plant and equipment
Mining plant and equipment
20% - 100%
20% - 66.67%
Method
Diminishing Value
Diminishing Value
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in the profit or loss.
14. PAYABLES
Current Payables
Trade payables
Deferred revenue
Loan from third party
Directors' short term incentive benefit
Other creditors and accruals
Borrowings
Loan from third party
2022
$
2021
$
1,836,451
-
76,543
214,500
218,097
2,345,591
384,090
1,428,250
-
-
225,150
2,037,490
6,974,052
-
ANNUAL REPORT | 51
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
14. PAYABLES (continued)
Loan from third party
The Consolidated Entity has entered into a loan agreement to borrow US$7.2 million (~A$10 million) to fund the
Stage 1 Production of the Paulsens East Iron Ore Mine (located in Western Australia). As at reporting date, US$5
million (A$6.97 million) has been drawn-down; the balance of US$2.2 million (~A$3.1 million) was drawn-down in
August 2022. The loan accrues interest at the rate of 10% p.a. (payable quarterly) with 50% of the loan repayable
in October 2023 and the balance repayable in April 2024. The loan is secured over the Paulsens East project
assets. The accrued interest on the loan has been recognised as a Current liability and the principal component of
the loan has been recognised as a Non-Current liability, as at balance date.
Accounting policy
These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of
the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the
reporting date. They are recognised initially at their fair value and subsequently measured at amortised cost using
the effective interest method.
15.
ISSUED CAPITAL
2022
$
2021
$
270,000,000 (2021: 270,000,000) fully paid ordinary shares
159,420,982
159,420,982
Movement in fully paid ordinary shares
Date of issue
At 1 July 2020
Issue of shares at 10 cents
Issue of shares at 10 cents
Cost of share issue
Issue of shares at 22 cents
Cost of share issue
At 30 June 2021
Number
of shares
$
207,134,268
151,049,893
25-Nov-20
10,000,000
1-Dec-20
30,000,000
1,000,000
3,000,000
(270,579)
4-Jun-21
22,865,732
5,030,461
270,000,000
159,420,982
(388,793)
There is no movement during the current financial year.
Accounting policy
Ordinary shares are classified as equity. Fully paid ordinary shares carry one vote per share and the right to
dividends.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net
of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the
acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration.
16. RESERVES
Profits reserve
Share-based payments reserve
Foreign currency translation reserve
2022
$
2021
$
24,402,692
6,585,022
13,402,658
13,402,658
1,907,821
1,670,147
39,713,171
21,657,827
ANNUAL REPORT | 52
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
16. RESERVES (continued)
Movement in share-based payments reserve
Opening balance
Executive Options issued by Lithium Energy Limited (ASX:LEL)
Expensing of LEL Executive Options on de-consolidation of LEL
Consideration received on issue of options
Valuation of options issued (refer Note 17)
Closing balance
(a) Share-based payments reserve
2022
$
2021
$
13,402,658
13,233,026
-
-
-
-
761,502
(761,502)
33
169,599
13,402,658
13,402,658
The Share-based payments reserve recognises the consideration (net of expenses) received by the Company
on the issue of options. In relation to options issued to Directors and personnel for nil consideration, the fair
value of these options (refer Note 17) are recognised in the Share-based payments reserve.
(b) Profits reserve
An increase in the Profits reserve will arise when the Company or its subsidiaries generates a net profit (after
tax) for a relevant financial period (i.e. half year or full year) which the Board determines to credit to the
company’s Profits reserve. Dividends may be paid out of (and debited from) a company’s Profits reserve,
from time to time.
(c) Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entities are recognised in the Foreign
currency translation reserve as described in the accounting policy note below and accumulates in a separate
reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is
disposed of.
(d) Lithium Energy Limited - Executive Options
The fair value of Executive Options issued (for nil consideration) by Lithium Energy (then a part of the
Consolidated Entity) were included in the Share-based payments reserve (as per (a) above) but were
expensed to profit or loss upon Lithium Energy ceasing to be a controlled entity of the Company on 7 May
2021.
17. SHARE-BASED PAYMENTS
The Consolidated Entity has the following share-based payment arrangements:
Grant
date
Expiry
date
01-Dec-20
30-Nov-23
04-Dec-20
03-Dec-23
24-Dec-20
23-Dec-23
04-Jun-21
03-Jun-24
15-Feb-22
14-Feb-25
Fair value
at grant
Exercise
Opening
During the period
Vested and
exercisable
Closing
date ($)
price ($)
balance
Granted Exercised
Cancelled
balance at period end
0.066
0.063
0.066
0.104
0.115
0.150
0.185
0.210
0.330
0.185
1,000,000
12,000,000
1,500,000
1,000,000
-
15,500,000
-
-
-
-
3,100,000
3,100,000
-
-
-
-
-
-
-
-
1,000,000
1,000,000
12,000,000
(1,500,000)
-
-
-
(1,500,000)
1,000,000
1,000,000
3,100,000
17,100,000
2,000,000
-
-
Weighted average exercise price
0.19
0.19
-
0.21
0.19
ANNUAL REPORT | 53
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
17. SHARE-BASED PAYMENTS (continued)
The following options were issued during the financial year:
(a)
On 15 February 2022, 3,100,000 SIP Options (each with an exercise price of $0.185 and a term expiring on
14 February 2025) were granted to participants under the Company's Securities Incentive Plan (SIP). The
vesting conditions for these options are as follows (which have not occurred as at balance date):
(i)
(ii)
two-thirds of the options will vest upon the attainment of Milestone 1 - being the receipt of proceeds of
sale from the shipment of the first 100,000 tonnes of iron ore mined from the Consolidated Entity's
Paulsens East Iron Ore Project.
one-third of the options will vest upon the attainment of Milestone 2 - being the receipt of proceeds of
sale from the shipment of the first 1,000,000 tonnes of iron ore mined from the Consolidated Entity's
Paulsens East Iron Ore Project.
The fair value of the options issued was calculated using an options valuation model which assumes (as at the date
of grant) an underlying Company share price of $0.115, a risk-free rate of 1.51% (based on the 3 year Australian
bond yield rate) and a volatility rate of 90% for the underlying shares in the Company.
The following options lapsed during the financial year:
(a)
On 6 August 2021, 1,500,000 SIP options (each with an exercise price of $0.21 and a term expiring on 23
December 2023) lapsed pursuant to their terms of issue.
Accounting policy
Shared-based compensation benefits provided to personnel are accounted in accordance with AASB 2 (Share-
based Payment).
The fair value of options granted are recognised as an employee benefits expense with a corresponding increase
in equity. The total amount expensed are determined by reference to the fair value of the options granted, which
takes into account market performance conditions, and the impact of non-vesting conditions (if any) but excludes
the impact of any service or non-market performance vesting conditions (if any).
Non-market vesting conditions (if any) are included in assumptions about the number of options that are expected
to vest. Total expense is recognised over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each reporting period, the Consolidated Entity will revise its
estimates of the number of options that are expected to vest based on applicable non-marketing vesting conditions.
The Consolidated Entity will also recognise the impact of any revisions to the original estimates in profit or loss with
a corresponding adjustment to equity.
18. CAPITAL RISK MANAGEMENT
The Company's objectives when managing its capital are to safeguard its ability to continue as a going concern, so
that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain a
capital structure balancing the interests of all shareholders.
The Board will consider capital management initiatives as is appropriate and in the best interests of the Company
and shareholders from time to time, including undertaking capital raisings, share buy-backs, capital reductions and
selling assets to reduce debt.
ANNUAL REPORT | 54
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
19. PARENT ENTITY INFORMATION
The following information provided relates to the Company, Strike Resources
Limited, as at 30 June 2022.
Statement of profit or loss and other comprehensive income
Profit/(Loss) for the year
Other comprehensive income
Total comprehensive income/(loss) for the year
2022
$
2021
$
(2,808,508)
385,761
-
-
(2,808,508)
385,761
Statement of financial position
Current assets
Cash and cash equivalents
Financial assets at fair value through profit or loss
Other
Non current assets
Total assets
Current liabilities
Non-Current liabilities
Total liabilities
Net assets
Issued capital
Profits reserve
Options reserve
Accumulated losses
Equity
20.
INVESTMENT IN CONTROLLED ENTITIES
Investment in controlled entities
Paulsens East Iron Ore Pty Ltd
Strike Finance Pty Ltd
Strike Iron Ore Holdings Pty Ltd (incorporated 11 Feb 22)
Strike Resources Peru S.A.C.
Apurimac Ferrum S.A.C.
Ferrum Trading S.A.C
Incorporated
Australia
Australia
Australia
Peru
Peru
Peru
4,026,913
6,136,455
864
639,514
22,213,571
26,880,862
238,061
109,338
11,265,549
17,749,403
530,187
1,763,533
6,974,052
7,504,239
-
1,763,533
19,376,623
15,985,870
159,420,982
159,420,982
24,402,692
6,585,022
13,402,658
13,402,658
(177,849,709)
(163,422,792)
19,376,623
15,985,870
Ownership interest
2022
100%
100%
100%
100%
100%
100%
2021
100%
100%
0%
100%
100%
100%
ANNUAL REPORT | 55
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
20.
INVESTMENT IN CONTROLLED ENTITIES (continued)
Accounting policy
Subsidiaries are all entities (including structured entities) over which the Consolidated Entity has control. The
Consolidated Entity controls an entity when the group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the activities of the
entity. Subsidiaries are fully consolidated from the date on which control
is transferred to the group. They are
deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Consolidated Entity.
Intercompany transactions, balances and unrealised gains on transactions in the Consolidated Entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
assets transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency
with the policies adopted by the Consolidated Entity.
21.
INVESTMENT IN ASSOCIATE ENTITY
Ownership interest
Lithium Energy Limited (ASX:LEL)
2022
43%
2021
43%
2022
$
2021
$
5,540,968
6,532,439
Lithium Energy was a spin-out of the battery minerals assets formerly held by the Consolidated Entity - Lithium
Energy (ASX Code : LEL), was admitted to the Official List of ASX on 17 May 2021 and commenced quotation on
19 May 2021, after the successful completion of a $9 million (at $0.20 per share) initial public offering (IPO) under a
Prospectus (dated 30 March 2021).
Critical accounting judgement and estimate
The Consolidated Entity has assessed that Lithium Energy is not considered a subsidiary in accordance with AASB
10 (Consolidated Financial Statements). The Directors have considered the required elements of control prescribed
under AASB 10 and do not consider that the Company controls Lithium Energy. Rather, in accordance with AASB
128 (Investments in Associates and Joint Ventures), the Company is considered to have significant influence over
Lithium Energy (as prescribed under AASB 128) and accordingly, has applied the equity method in accounting for
its investment in Lithium Energy (as an Associate entity).
Movements in carrying amounts
Opening balance
Acquisition of shares
Transfer of subsidiaries to Lithium Energy
Share of net loss after tax
2022
$
6,532,439
-
-
(991,471)
5,540,968
2021
$
-
2,500
6,880,000
(350,061)
6,532,439
Fair value (at market price on ASX) of investment in Associate entity
21,678,300
12,731,700
Net asset value of investment
6,058,178
6,453,120
ANNUAL REPORT | 56
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
21.
INVESTMENT IN ASSOCIATE ENTITY (continued)
Summarised statement of profit or loss and other comprehensive income
Revenue
Expenses
Loss before income tax
Income tax expense
Loss after income tax
Other comprehensive income
Total comprehensive income
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
2022
$
2021
$
102,746
38,309
(2,408,112)
(1,166,670)
(2,305,366)
(1,128,361)
-
-
(2,305,366)
(1,128,361)
19,046
60,572
(2,286,320)
(1,067,789)
6,892,745
7,360,522
8,151,258
7,041,137
14,253,267
15,192,395
166,814
166,814
187,624
187,624
14,086,453
15,004,771
Accounting policy
Associates are all entities over which the Consolidated Entity has presumed significant influence but not control or
joint control, generally accompanying a shareholding of between approximately 20% and 50% of the voting rights.
Investments in Associates in the consolidated financial statements are accounted for using the equity method of
accounting. On initial recognition investments in associates are recognised at cost; for investments which were
classified as fair value through profit or loss, any gains or losses previously recognised are reversed through profit
or loss. Under the equity method, the Consolidated Entity’s share of the post-acquisition profits or losses of
Associates are recognised in profit or loss, and its share of post-acquisition movements in reserves is recognised
in Other Comprehensive Income. The cumulative post-acquisition movements are adjusted against the carrying
amount of the investment in the Associate entity.
A share of an Associate entity's net gain increases the investment (and a share of net loss decreases the
investment) and dividend income received from an Associate entity decreases the investment. When the
Consolidated Entity’s share of losses in an Associate equals or exceeds its interest in the Associate, including any
other unsecured long-term receivables, the Consolidated Entity does not recognise further losses, unless it has
incurred obligations or made payments on behalf of the Associate.
Where applicable, unrealised gains on transactions between the Consolidated Entity and its Associates are
eliminated to the extent of
in the Associates. Unrealised losses are also
eliminated unless the transaction provides evidence of an impairment of the asset transferred. The accounting
policies of Associates are aligned to ensure consistency with the policies adopted by the Consolidated Entity,
where practicable.
the Consolidated Entity’s interest
ANNUAL REPORT | 57
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
22. RELATED PARTY TRANSACTIONS
(a) Transactions with key management personnel
Refer to the Remuneration Report contained in the Directors' Report for details of the remuneration paid or
payable to each member of the Consolidated Entity's KMP for the year ended 30 June 2022. The total
remuneration paid to KMP of the Consolidated Entity during the year is as follows:
Directors
Short-term employee benefits
Post-employment benefits
2022
$
927,500
88,250
1,015,750
2021
$
576,500
51,917
628,417
(b) Transactions with other related parties
No other related party transactions have been identified other than those disclosed above.
23. AUDITOR'S REMUNERATION
During the year the following fees were paid for services provided by the auditor of the parent entity, its related
practices and non-related audit firms:
Review of financial statements
Rothsay Auditing
Audit of financial statements
Rothsay Audit & Assurance Pty Ltd
2022
$
2021
$
11,000
26,000
20,000
31,000
-
26,000
ANNUAL REPORT | 58
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2022
24.
COMMITMENTS
(a)
Lease Commitments
The Company has entered into a non-cancellable operating lease agreement for office premises.
The lease is for a period of 12 months with options to extend for two further 12 month periods. The
office accommodation is shared with other companies, who have agreed to share payment of the
lease costs (including outgoings).
Exceptions to lease accounting
The Consolidated Entity has elected to apply the exceptions to lease accounting for both short-term
leases (i.e. leases with a term of less than or equal to 12 months) and leases of low-value assets.
The Consolidated Entity recognises the payments associated with these leases as an expense on a
straight-line basis over the lease term.
(b) Mining Tenements/Concessions – Annual Fees and Expenditure Commitments
(i)
Australian Tenements
The Consolidated Entity is required to pay rates, rent and other annual fees to relevant
Regulatory Authorities of the State (and Local) Government in respect of its granted Australian
tenements. The total amount of these commitments will depend upon the number and area
of granted tenements held/retained.
(ii)
Peruvian Mineral Concessions
The Consolidated Entity is required to pay annual licence fees to the Peruvian Government in
respect of its granted Peruvian mineral concessions. The total amount of this commitment
will depend upon the number and area of concessions held/retained and the length of time of
each concession held.
25.
CONTINGENCIES
(a)
Directors' Deeds
The Company has entered into Access, Indemnity and Insurance Deeds with the Directors
which, inter alia, indemnify them against liability incurred in discharging their duties as officers. As at
the reporting date, no claims have been made under any such indemnities and, accordingly, it is not
possible to quantify the potential financial obligation of the Consolidated Entity under these
indemnities.
(b)
Paulsens East Tenement - Royalty
The Consolidated Entity has a liability to pay Orion Equities Limited (ASX:OEQ) a royalty of 2% of
gross revenues (exclusive of GST) from any commercial exploitation of any minerals from the
Paulsens East Iron Ore Project tenements (which includes Mining Lease M47/1583) in Western
Australia. This royalty entitlement stems from the Consolidated Entity’s acquisition of a portfolio of
tenements (including the Paulsens East tenements) from Orion in September 2005.
(c)
Government Royalties
The Consolidated Entity is liable to pay royalties to Government on production obtained from its
mineral tenements/concessions.
ANNUAL REPORT | 59
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2022
25.
CONTINGENCIES (continued)
(d)
Native Title Mining Agreement
On 14 August 2020, the Consolidated Entity entered into a Native Title Mining Agreement (Native
Title Agreement) with the PKKP Aboriginal Corporation RNTBC (PKKPAC). The PKKPAC holds
native title on trust for the benefit of the Puutu Kunti Kurrama and Pinikura People (PKKP), the
traditional owners of the land on which the Consolidated Entity’s Paulsens East Iron Ore Project is
located in the West Pilbara region of Western Australia. The Native Title Agreement provides an
agreed framework for Strike to undertake its mining activities (that minimises the impact on Aboriginal
Cultural Heritage with safeguards for the care and protection of the lands and rights of the PKKP)
and includes a package of financial and business development related benefits for the PKKP,
including upfront and milestone payments, a production payment based on the value of iron ore sales,
an annual training and development allowance and opportunities for PKKP members to contract for
the provision of certain support operations related to the Paulsens East Iron Ore Project.
(e)
Deferred Payments from Settlement Agreement Relating to Apurimac Ferrum SAC
Pursuant to a settlement agreement dated 30 December 2012 whereby the Consolidated Entity
acquired the (50%) balance of equity interest in Apurimac Ferrum SAC (AF) (the holder of the
Apurimac and Cusco Projects) from D&C Pesca SAC, the Consolidated Entity has a series of
deferred payment obligations as outlined below.
The Consolidated Entity has payment obligations if certain milestones are achieved as follows:
(i)
(ii)
(iii)
Resource Milestone Payment: US$2 million on the delineation of at least 500 Mt of JORC
Mineral Resources at an average grade of at least 55% Fe with at least 275 Mt of contained
iron having an average grade of at least 52.5% Fe, on the Apurimac Project mineral
concessions.
Approvals Milestone Payment: Up to US$3 million on AF receiving all formal government
environmental and community approvals for the construction and operation of an iron ore mine
and required infrastructure with a design capacity of at least 10Mtpa of iron ore product,
relating to the Apurimac Project mineral concessions.
Construction Milestone Payment: Up to US$5 million on formal approval of the AF Board
to commence construction of an iron ore project or the commencement of bulk earthworks for
an iron ore mine or processing plant, in either case with a design capacity of at least 10Mtpa
of iron ore product, relating to the Apurimac Project mineral concessions.
The Consolidated Entity has royalty payment obligations as follows:
(i)
(ii)
1.5% of the net profits from sales of iron ore mined and iron ore products produced from the
Apurimac Project mineral concessions.
2% of the proceeds of sales of other metals (on a net smelter return basis) mined from the
Apurimac Project mineral concessions.
Due to the inherent uncertainty surrounding the achievement and timing of the above
milestones/royalty triggers, the Consolidated Entity regards these future payment obligations as
contingencies.
For further background details, refer also to Strike’s ASX Announcement dated 31 December 2012:
Strike Moves to 100% Ownership of AF.
(f)
Legal Disputes Over Peru Mineral Concessions
The Consolidated Entity has successfully defended against a number of legal actions and claims
made by several Peruvian parties (that have had a contractual relationship with AF) relating to the
Consolidated Entity’s mineral concessions in Peru. Whilst there still remain some outstanding claims
and appeals, the Consolidated Entity believes that they will all eventually be dismissed, consistent
with previous decisions by the relevant Peruvian authorities.
For further background details, refer also to Strike’s ASX Announcement dated 1 May 2014: Strike
Wins Millenium Arbitration Case in Peru.
ANNUAL REPORT | 60
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
for the year ended 30 June 2022
26.
EVENTS OCCURRING AFTER THE REPORTING PERIOD
(a)
(b)
Subsequent to balance date, the Company has drawn down the final third tranche of US$2.2 million
(~A$3.1 million) under the project finance loan facility provided by Good Importing International Pty
Limited, to fund the Stage 1 Production at the Paulsens East Iron Ore Mine in Western Australia.
In September 2022, the Consolidated Entity completed its first export shipment of 66,618 tonnes of
Paulsens East Lump iron ore from Port Hedland, Western Australia to China. This maiden shipment
has been sold to a Hong Kong based buyer, with the terms of the sale agreement including market
reflective pricing referenced to a benchmark base price and lump premium, with market-typical
impurity penalties and a freight differential adjustment, on a Cost and Freight (CFR) basis for delivery
into China. The Consolidated Entity has drawn down a provisional amount of US$6.33 million
(~A$9.3 million) under a Letter of Credit, with the final invoice to be settled in November 2022.
No other matter or circumstance has arisen since the end of the financial year that significantly affected, or
may significantly affect, the operations of the Consolidated Entity, the results of those operations, or the
state of affairs of the Consolidated Entity in future financial periods.
ANNUAL REPORT | 61
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
(1)
The financial statements, comprising the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of
Cash Flows, Consolidated Statement of Changes in Equity, and accompanying notes as set out on
pages 33 to 61 are in accordance with the Corporations Act 2001 (Cth) and:
(a)
(b)
comply with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting; and
give a true and fair view of the Consolidated Entity’s financial position as at 30 June 2022 and
of their performance for the year ended on that date;
(2)
(3)
In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they become due and payable;
The Directors have been given the declarations required by section 295A of the Corporations Act 2001
(Cth) by the Managing Director (the person who, in the opinion of the Directors, performs the Chief
Executive Officer function) and Company Secretary (the person who, in the opinion of the Directors,
performs the Chief Financial Officer function); and
(4)
The Company has included in the notes to the Financial Statements an explicit and unreserved
statement of compliance with the International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Directors made pursuant to section 295(5) of
the Corporations Act 2001 (Cth).
Farooq Khan
Executive Chairman
29 September 2022
William Johnson
Managing Director
ANNUAL REPORT | 62
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
STRIKE RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Strike Resources Limited (“the Company”) and its controlled entities
(“the Group”) which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended on that date and
notes to the financial statements, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year ended on that date; 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 these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this 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 (including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
We have determined the following key audit matters to communicate in our report:
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
STRIKE RESOURCES LIMITED (continued)
Key Audit Matter – Capitalised Mine
Development
How our Audit Addressed the Key Audit Matter
As disclosed in Note 12 to the financial
statements, the Group’s has capitalised mine
development expenditure of $9,890,168.
Our procedures
in assessing mine development
expenditure included but were not limited to the
following:
The recognition and recoverability of mine
development was considered a key audit matter
due to the following:
•
•
the carrying value represents a significant
asset to the Group. Therefore, we
considered it necessary to assess whether
facts and circumstances existed to suggest
that an impairment to the value of the
asset is required; and
significant management judgement is
involved in determining whether
impairment indicators exist.
• We reviewed the ownership rights to the
tenements, against which the expenditure is
capitalised, their expiry dates and if required
commitments were met;
• We assessed the reasonableness of capitalising
mine development expenditure in accordance
with Australian Accounting Standards;
• We tested a sample of mine development
expenditure items to supporting documentation
to ensure they were bona fide payments;
• We assessed
the
the
management’s assessment for the existence of
impairment indicators; and
reasonableness of
• We reviewed the appropriateness of the related
disclosures in Note 12.
Our procedures did not result in any significant findings
surrounding the accounting for the transaction.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2022, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
STRIKE RESOURCES LIMITED (continued)
Directors’ Responsibility 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 the 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 cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibility 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 Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst 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.
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 the key audit matters.
We describe those 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 communications.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
STRIKE RESOURCES LIMITED (continued)
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2022.
In our opinion the remuneration report of Strike Resources Limited for the year ended 30 June 2022 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Audit & Assurance Pty Ltd
Daniel Dalla
Director
Dated 29 September 2022
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
LIST OF MINERAL CONCESSIONS
The following mineral concessions were held as at the end of the financial year (30 June 2022) and as at the date of
this report:
Paulsens East Iron Ore Project (Western Australia)
(Strike – 100%)
Tenement Type and No.
Mining Lease M 47/1583
Misc. Licence L 47/927
Misc. Licence L 47/938
Misc. Licence L 08/195
Misc. Licence L 08/190
Misc. Licence L 47/934
Misc. Licence L 47/980
Misc. Licence L 47/981
Grant Date
Expiry Date
Area (Ha)
Area (km²)
4/9/2020
12/11/2020
10/12/2020
7/1/2021
15/7/2021
15/7/2021
15/7/2021
3/9/2041
11/11/2041
9/12/2041
6/1/2042
14/7/2024
14/7/2024
14/7/2024
16//7/2021
15//7/2024
381.87
78.74
95.97
22.44
199.60
357.09
62.60
465.04
~3.82
~0.79
~0.96
~0.22
~2
~3.57
~0.63
~46.5
Apurimac Iron Ore Project (Peru)
(Strike – 100%)
Concession Name
Opaban I
Opaban III
Cristoforo 22
Ferrum 31
Wanka 01
Title
Code
Area
(Ha) Province
999 Andahuaylas 5006349X01 No 8625-94/RPM Dec 16, 1994
990 Andahuaylas 5006351X01 No 8623-94/RPM Dec 16, 1994
379 Andahuaylas 010165602 RP2849-2007-INGEMMET/PCD/PM Dec 13, 2007
327 Andahuaylas 010552807 RP 1266-2008-INGEMMET/PCD/PM May 12, 2008
100 Andahuaylas 010208110 RP 3445-2010-INGEMMET/PCD/PM Oct 18,2010
File No
20001465
20001464
11067786
11076509
11102187
ANNUAL REPORT | 67
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
ANNUAL MINERAL RESOURCES
STATEMENT
The following JORC Code (2012 Edition) compliant Mineral Resources estimates are as at the end of the financial
year (30 June 2022) and as at the date of this report:
Paulsens East Iron Ore Project (Australia)
(Strike – 100%)
The Paulsens East Iron Ore Project has a JORC Code (2012 Edition) compliant Mineral Resource:
Mineral Resources
Category
Indicated
Fe%
Cut-Off Grade
>58
Million
Tonnes
9.6
Fe% SIO2% AL2O3% P% S% LOI%
61.1
0.08 0.01
3.6
6.0
2.1
Refer Strike’s ASX Announcement dated: 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated
Category at Paulsens East Iron Ore Project
Part of the JORC Indicated Mineral Resource has been converted to a JORC Probable Ore Reserve:
Ore Reserves Category
Probable
Fe%
Cut-Off Grade
>55
Million
Tonnes
6.2
Fe%
59.9
SIO2%
7.43
AL2O3%
3.77
P%
0.086
Refer Strike’s ASX Announcement dated 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow
Generation and Financial Returns
Apurimac Iron Ore Project (Peru)
The Apurimac Project has a JORC Code (2012 Edition) compliant Mineral Resource:
(Strike – 100%)
Category
Indicated
Indicated
Inferred
Total Indicated and Inferred
Concession
Opaban 1
Opaban 3 *
Opaban 1
Density t/m3
4
4
4
Mt
133.71
8.53
127.19
269.4
Fe%
57.57
62.08
56.7
57.3
SiO2%
9.46
4.58
9.66
9.4
Al2O3%
2.54
1.37
2.7
2.56
P%
0.04
0.07
0.04
0.04
S%
0.12
0.25
0.2
0.16
Refer Strike’s ASX Announcement dated 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard.
*
The Opaban 3 Mineral Resource has been diminished by production and sales of 50,095 tonnes of lump iron ore grading
65.78% Fe, 2.42% SiO2, 0.72% Al2O3, 0.057% P and 0.09% S.
Compliance Notes
• The Mineral Resources estimate and Ore Reserves estimate in respect of the Paulsens East Iron Ore Project (above)
have not changed since reported in last year’s (2021) Annual Report.
• The Mineral Resources estimate in respect of the Apurimac Iron Ore Project (above) have not changed since reported
in last year’s (2021) Annual Report. The Company notes that production at the Opaban 3 concession was undertaken
during calendar 2021 with two shipments totalling ~50,000 tonne shipment of Lump direct-shipping iron ore (DSO)
completed in August and October 2021.
• The Mineral Resources estimates in this Annual Mineral Resources Statement are based on, and fairly represents,
information and supporting documentation prepared by a Competent Person (recognised under the JORC Code (2012
Edition)).
• The Annual Mineral Resources Statement as a whole (in respect of each of the Apurimac Iron Ore Project and
Paulsens East Iron Ore Project) has been approved by the Competent Persons named in the JORC Code Competent
Persons’ Statements section of this Annual Report (at page 69) where further information concerning their
qualifications and professional memberships are also disclosed.
• Due to the nature, stage and size of the Company’s existing operations, Strike believes there would be no efficiencies
gained by establishing a separate Mineral Reserves/Resources Committee responsible for reviewing and monitoring
the Company’s processes for estimating Mineral Reserves/Resources. The Board as a whole has responsibility in this
regard (with assistance from external advisers as appropriate) including ensuring that appropriate internal controls are
applied to such calculations.
• The Company ensures that any Mineral Reserve/Resource estimations are prepared by Competent Persons and
where appropriate, reviewed independently and verified (including estimation methodology, sampling, analytical and
test data).
• The Company will report any future Mineral Reserves/Resources estimates in accordance with the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code (2012
Edition)), or any updated version of the same that may be applicable at the time of the relevant Mineral
Reserve/Resource estimation.
ANNUAL REPORT | 68
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
JORC CODE COMPETENT PERSONS’
COMPLIANCE STATEMENTS
JORC Code (2012) Competent Persons’ Compliance Statements - Paulsens East Iron Ore Project
(Western Australia)
(a)
(b)
(c)
The information in this document that relates to Mineral Resources and related Exploration Results1 is
based on information compiled by Mr Philip Jones (BAppSc (Geol), MAIG, MAusIMM), who is a Member of
the Australian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists
(AIG). Mr Jones is an independent contractor to Strike Resources Limited. Mr Jones 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’ (the JORC Code). Mr
Jones consents to the inclusion in this document of the matters based on his information in the form and
context in which it appears.
The information in this document that relates to Ore Reserves2 is based on information compiled by Mr
Harry Warries (MSc – Mine Engineering, FAusIMM), who is a Fellow of AusIMM. Mr Warries is the Principal
of Mining Focus Consultants Pty Ltd, a Consultant to Strike Resources Limited. Mr Warries 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 JORC
Code. Mr Warries consents to the inclusion in this document of the matters based on his information in the
form and context in which it appears.
The information in this document that relates to Other Exploration Results3 is based on information
compiled by Mr Hem Shanker Madan (Honours and Masters Science degrees in Applied Science), who is a
Member of AusIMM. Mr Madan is an independent contractor to Strike Resources Limited and was formerly
the Managing Director (September 2005 to March 2010) and Chairman (March 2010 to February 2011) of
Strike Resources Limited. Mr Madan 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 JORC Code. Mr Madan consents to the inclusion in this
document of the matters based on his information in the form and context in which it appears.
JORC Code (2012) Competent Person’s Compliance Statement - Apurimac Iron Ore Project (Peru)
The information in this document that relates to Mineral Resources4 is based on information compiled by Mr Ken
Hellsten, B.Sc. (Geology), who is a Fellow of AusIMM. Mr Hellsten was a principal consultant to Strike Resources
Limited and was also formerly the Managing Director of Strike Resources Limited (between 24 March 2010 and 19
January 2013). Mr Hellsten has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined
in the 2012 Edition of the JORC Code. Mr Hellsten consents to the inclusion in this document of the matters based
on his information in the form and context in which it appears.
Strike’s ASX Announcements may be viewed and downloaded
www.strikeresources.com.au or the ASX website: www.asx.com.au under ASX code “SRK”.
from
the Company’s website:
1 Also refer Strike ASX Announcements dated 4 September 2019: Significant Upgrade of JORC Mineral Resource into Indicated
Category at Paulsens East Iron Ore Project, 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow
Generation and Financial Returns and 4 February 2022: Updated Paulsens East Feasibility Study – Optimised Staged Production and
Lower Capex and Opex Costs
2 Also refer Strike ASX Announcements dated 30 October 2020: Paulsens East Feasibility Study Demonstrates Significant Cashflow
Generation and Financial Returns and 4 February 2022: Updated Paulsens East Feasibility Study – Optimised Staged Production and
Lower Capex and Opex Costs
3 Also refer Strike ASX Announcements dated 14 October 2020: Discovery of High Grade Iron Rich Detritals at Surface at Paulsens
East, 15 July 2020: High-Grade Rock Chip Samples Confirm Resource Upside Potential at Paulsens East Iron Ore Project and 4
December 2019: High Grade Results Located 1.6km from 9.6Mt Resource at Paulsens East
4 Also refer Strike ASX Announcement dated 20 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard
ANNUAL REPORT | 69
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
FORWARD LOOKING STATEMENTS
This document contains “forward-looking statements” and “forward-looking information”, including statements and
forecasts which include without limitation, expectations regarding future performance, costs, production levels or
rates, mineral reserves and resources, the financial position of Strike, industry growth and other trend projections.
Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”,
“is expected”, “is expecting”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”,
or variations (including negative variations) of such words and phrases, or state that certain actions, events or
results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. Such information is based on
assumptions and judgements of management regarding future events and results. The purpose of forward-looking
information is to provide the audience with information about management’s expectations and plans. Readers are
cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of Strike and/or its subsidiaries to be materially different
from any future results, performance or achievements expressed or implied by the forward-looking information.
Such factors include, among others, changes in market conditions, future prices of minerals/commodities, the actual
results of current production, development and/or exploration activities, changes in project parameters as plans
continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of
cost overruns.
Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and
opinions of management made in light of its experience and its perception of trends, current conditions and expected
developments, as well as other factors that management believes to be relevant and reasonable in the
circumstances at the date such statements are made, but which may prove to be incorrect. Strike believes that the
assumptions and expectations reflected in such forward-looking statements and information are reasonable.
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been
used. Strike does not undertake to update any forward-looking information or statements, except in accordance
with applicable securities laws.
ANNUAL REPORT | 70
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
ADDITIONAL ASX INFORMATION
as at 14 October 2022
CORPORATE GOVERNANCE STATEMENT
The Company has adopted the Corporate Governance Principles and Recommendations (4th Edition, 27 February
2019) issued by the ASX Corporate Governance Council in respect of the financial year ended 30 June 2022.
Pursuant to ASX Listing Rules 4.7.3 and 4.10.3, the Company’s 2022 Corporate Governance Statement (dated on
or about 17 October 2022) and ASX Appendix 4G (Key to Disclosures of Corporate Governance Principles and
Recommendations) can be found at the following URL on the Company’s Internet website:
www.strikeresources.com.au/corporate/corporate-governance/
VOTING RIGHTS
Subject to any rights or restrictions for the time being attached to any class or classes of shares (at present there
are none), at meetings of shareholders of the Company:
• Each shareholder entitled to vote may vote in person or by proxy or by power of attorney or, in the case of a
shareholder which is a corporation, by representative;
• Every person who is present in the capacity of shareholder or the representative of a corporate shareholder
shall, on a show of hands, have one vote;
• Every shareholder who is present in person, by proxy, by power of attorney or by corporate representative
shall, on a poll, have one vote in respect of every fully paid share held by them;
• Optionholders have no entitlement to vote.
UNLISTED OPTIONS
(1) DIRECTORS’ OPTIONS ($0.185, 3 DECEMBER 2023)9
Holders
William Johnson
Farooq Khan
Victor Ho
Malcolm Richmond
Matthew Hammond
Total
№ of Options
4,500,000
3,750,000
2,250,000
750,000
750,000
12,000,000
Grant Date
4 December 2020
4 December 2020
4 December 2020
4 December 2020
4 December 2020
Exercise Price
$0.185
$0.185
$0.185
$0.185
$0.185
Expiry Date
3 December 2023
3 December 2023
3 December 2023
3 December 2023
3 December 2023
Distribution Schedule1
Spread of Holdings
1
1,001
5,001
10,001
100,001
TOTAL
- 1,000
- 5,000
- 10,000
- 100,000
- and over
Number of Holders
-
-
-
-
5
5
Number of Options % of Total Issued Options
-
-
-
-
100.00
100.00%
-
-
-
-
12,000,000
12,000,000
1 As required pursuant to ASX Listing Rule 4.10.7
ANNUAL REPORT | 71
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
ADDITIONAL ASX INFORMATION
as at 14 October 2022
(2) BROKER’S OPTIONS ($0.15, 30 NOVEMBER 2023)8
Holder
CG Nominees
(Australia) Pty Ltd
№ of Options
1,000,000
Issue Date
1 December 2020
Exercise Price
$0.15
Expiry Date
30 November 2023
Distribution Schedule1
Spread of Holdings
1
1,001
5,001
10,001
100,001
TOTAL
- 1,000
- 5,000
- 10,000
- 100,000
- and over
Number of Holders
-
-
-
-
1
1
Number of Options % of Total Issued Options
-
-
-
-
100.00
100.00%
-
-
-
-
1,000,000
1,000,000
(3) BROKER’S OPTIONS ($0.31, 3 JUNE 2024)10
Holder
CG Nominees
(Australia) Pty Ltd
№ of Options
1,000,000
Issue Date
4 June 2021
Exercise Price
$0.33
Expiry Date
3 June 2024
Distribution Schedule1
Spread of Holdings
1
1,001
5,001
10,001
100,001
TOTAL
- 1,000
- 5,000
- 10,000
- 100,000
- and over
Number of Holders
-
-
-
-
1
1
Number of Options % of Total Issued Options
-
-
-
-
100.00
100.00%
-
-
-
-
1,000,000
1,000,000
(4)
SECURITIES INCENTIVE PLAN (SIP)11 OPTIONS ($0.185, 14 FEBRUARY 2025)12
Holders2
SIP Participant 1
SIP Participant 2
SIP Participant 3
SIP Participant 4
Total
№ of Options
1,250,000
1,000,000
750,000
100,000
3,100,000
Issue Date
15 February 2022
15 February 2022
15 February 2022
15 February 2022
Exercise Price
$0.185
$0.185
$0.185
$0.185
Expiry Date
14 February 2025
14 February 2025
14 February 2025
14 February 2025
Distribution Schedule1
Spread of Holdings
1
1,001
5,001
10,001
100,001
TOTAL
- 1,000
- 5,000
- 10,000
- 100,000
- and over
Number of Holders
-
-
-
1
3
4
Number of Options % of Total Issued Options
-
-
-
3.23
96.77
100.00%
-
-
-
100,000
3,000,000
3,100,000
2 Not required to be named as securities were issued under an ‘employee incentive scheme’, pursuant to ASX Listing Rule 4.10.16
ANNUAL REPORT | 72
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
ADDITIONAL ASX INFORMATION
as at 14 October 2022
DISTRIBUTION OF FULLY PAID ORDINARY SHARES
Spread of Holdings
1
1,001
5,001
10,001
100,001
TOTAL
- 1,000
- 5,000
- 10,000
- 100,000
- and over
Number of
Holders
357
817
509
1,048
299
3,030
UNMARKETABLE PARCELS
Spread of Holdings
-
-
5,208
over
1
5,209
TOTAL
Number of
Holders
1,184
1,846
3,030
Number of
Shares
137,154
2,616,211
4,103,710
40,345,648
222,797,277
270,000,000
Number of
Shares
2,804,658
267,195,342
270,000,000
% of Total
Issued Capital
0.05%
0.97%
1.52%
14.94%
82.52%
100.00%
% of Total
Issued Capital
1.04%
98.96%
100.01%
An unmarketable parcel is considered, for the purposes of the above table, to be a shareholding of 5,208 shares or less
(being a value of $500 or less in total), based upon the Company’s closing share price of $0.096 on 13 October 2022.
SUBSTANTIAL SHAREHOLDERS
Substantial Shareholders
Bentley Capital Limited (ASX:BEL)3
Windfel Properties Limited
and Associates 4
Good Importing International Pty Ltd
and Associates5
Registered Shareholder
Bentley Capital Limited
HSBC Custody Nominees
(Australia) Limited
Mr Zhoufeng Zhang
Ms Hong Xu
Shares
Held
53,689,857
%
Voting
Power
19.89%
25.825.000
9.56%
1,239,556
601,873
5.26%
Good Importing International Pty Ltd
12,350,910
Orion Equities Limited (ASX:OEQ) 6
Orion Equities Limited
Bentley Capital Limited
Queste Communications Ltd (ASX:QUE)7 Orion Equities Limited
Bentley Capital Limited
10,000,000
53,689,857
10,000,000
53,689,857
23.59%
23.59%
3 Refer Bentley’s ASX Announcement dated 9 June 2021: Notice of Change in Interests of Substantial Holder in SRK
4 Refer Notice of Change in Interests of Substantial Holder (Windfel Properties Limited) dated 3 December 2020 (updated to reflect
current percentage voting power)
5 Refer Notice of Initial Substantial Holder filed by Good Importing International Pty Ltd and Associates dated 27 May 2021 (updated to
reflect current registered shareholdings and percentage voting power)
6 Refer Orion’s ASX Announcement dated 9 June 2021: Notice of Change in Interests of Substantial Holder in SRK
7 Refer Queste’s ASX announcement dated 9 June 2021: Notice of Change in Interests of Substantial Holder in SRK; Orion is the
registered holder of Strike shares and Queste is taken under section 608(3)(b) of the Corporations Act to have a relevant interest in
securities in which Orion has a relevant interest by reason of having control of Orion
ANNUAL REPORT | 73
30 JUNE 2022
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
ADDITIONAL ASX INFORMATION
as at 14 October 2022
SECURITIES ON ISSUE
Class of Security
Fully paid ordinary shares
Broker’s Options ($0.15, 30 November 2023)8
Directors’ Options ($0.185, 3 December 2023)9
Broker’s Options ($0.33, 3 June 2024)10
Securities Incentive Plan (SIP) 11 Options ($0.185, 14 February 2025)12
Quoted on ASX
270,000,000
--
-
Unlisted
-
1,000,000
12,000,000
1,000,000
3,100,000
Total
270,000,000
17,100,000
TOP TWENTY, ORDINARY FULLY PAID SHAREHOLDERS
Rank Holder name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BENTLEY CAPITAL LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
GOOD IMPORTING INTERNATIONAL PTY LTD
MR ZHOUFENG ZHANG
MS HONG XU
12,350,910
1,239,556
601,873
Sub-total
ORION EQUITIES LIMITED
MRS AMBREEN CHAUDHRI
IRIS SYDNEY HOLDINGS PTY LTD
MR STEVEN JAMES CLUNE + MRS LISA MICHELLE CLUNE
O'SHEA & BROWN PTY LTD
MR HONGWEI YAO
MR RICHARD DAVID SIMPSON
LAVISH LIMOUSINES PTY LTD
DOLMAT PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
MR FAROOQ KHAN & MS ROSANNA DECAMPO
CHETAN ENTERPRISES PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
MR DAVID JOHN DWYER + MRS LYNETTE MAREE DWYER
MR BENJAMIN MOK
MR IANAKI SEMERDZIEV
Shares Held
53,689,857
26,795,416
% Issued
Capital
19.89
9.92
14,192,339
10,000,000
10,000,000
4,700,000
3,282,273
3,000,000
2,671,798
2,535,169
2,217,762
1,944,611
1,853,394
1,838,665
1,813,231
1,800,000
1,777,129
1,641,435
1,308,261
1,200,000
5.26
3.70
3.70
1.74
1.22
1.11
0.99
0.94
0.82
0.72
0.69
0.68
0.67
0.67
0.66
0.61
0.48
0.44
TOTAL
148,261,340
54.91%
8 Refer SRK ASX Announcement dated 25 November 2020: Proposed Issue of Securities
9 Refer Strike’s Notice of Annual General Meeting and Explanatory Statement (Resolutions 6 to 10) dated 20 October 2020 and released
on ASX on 4 November 2020 and SRK ASX Announcements dated 4 December 2020: Results of 2020 Annual General Meeting and
4 December 2020: Proposed Issue of Securities
10 Refer SRK ASX Announcement dated 4 June 2021: Appendix 3G – Notification of Issue of 1M Broker Options
11 The SIP was approved by shareholders at the Company’s AGM held on 4 December 2020; a summary of the SIP is in Annexure A to
Strike's Notice of AGM and Explanatory Statement dated 20 October 2020 and released on ASX on 4 November 2020
12 Refer SRK ASX Announcement dated 18 February 2022: Notification regarding unquoted securities - SRK
ANNUAL REPORT | 74
STRIKE RESOURCES LIMITED
A.B.N. 94 088 488 724
ASX Code : SRK
W | www.strikeresources.com.au
REGISTERED OFFICE
Suite 1, Level 1, 680 Murray Street
West Perth, Western Australia 6005
T | +61 8 9214 9700 F | +61 8 9214 9701
E | info@strikeresources.com.au
SHARE REGISTRY
Advanced Share Registry
Main Office
110 Stirling Highway
Nedlands, Western Australia 6009
Local T | 1300 113 258
T | +61 8 9389 8033
F | +61 8 6370 4203
E | admin@advancedshare.com.au
Sydney Office
Suite 8H, 325 Pitt Street
Sydney, New South Wales 2000
T | +61 2 8096 3502
W | www.advancedshare.com.au