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ANNUAL REPORT 2019
2019
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Corporate Directory
Directors
Peter Henry Hwang
Carlos Alberto Fernicola
Kenneth James Harvey
Corporate Secretary
Carlos Alberto Fernicola
Stock Exchange
ASX LIMITED
ASX Code: SPQ
Company
SUPERIOR RESOURCES LIMITED
ABN 72 112 844 407
Registered Office
Unit 8, 61 Holdsworth Street
COORPAROO QLD 4151
Principal Office
Unit 8, 61 Holdsworth Street
COORPAROO QLD 4151
Telephone: 07 3847 2887
Email: manager@superiorresources.com.au
Internet Address
www.superiorresources.com.au
Postal Address
PO Box 189
COORPAROO QLD 4151
Share Registry
LINK MARKET SERVICES LIMITED
Level 21, 10 Eagle Street
BRISBANE QLD 4000
Postal Address
Locked Bag A14
SYDNEY SOUTH NSW 1235
Telephone: 1300 554 474
Facsimile: 02 9287 0303
Email: registrars@linkmarketservices.com.au
Auditor
PKF Hacketts Audit
Level 6, 10 Eagle Street
BRISBANE QLD 4000
Telephone: 07 3839 9733
Facsimile: 07 3832 1407
ANNUAL REPORT
2019
Contents
Chairman’s Review 2019
Strategy
Operations Report
Corporate Review
Directors' Report
1
2
3
32
33
Auditor's Independence Declaration
44
Corporate Governance Statement
Financial Report
Directors' Declaration
Independent Auditor’s Report
Shareholder Information
Tenement Schedule
Mineral Resources Statement
45
46
82
83
88
90
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CHAIRMAN’S REVIEW
Chairman’s Review 2019
Dear Fellow Shareholders,
On behalf of the Board of Directors, I take pleasure in presenting the Superior Resources Limited 2019
Annual Report.
The past 12 months has been an eventful year that has resulted in the formation of an earn-in and joint
venture relationship with South32 Group Operations Pty Ltd on the Nicholson Project after a long
period of negotiation.
The joint venture represents a significant milestone for the company as it validates the potential of the
project to host a world-class base metals deposit and has enabled a substantial amount of exploration
to be carried out. The Nicholson Project lies within an important part of the globally significant
Carpentaria Zinc Province. The significance of the exploration investment that we have planned for the
project cannot be underestimated. Superior and South32 have wasted no time in commencing an
intense drilling program early in the second half year, which has been progressing towards the end of
this year’s field season.
Planning for follow-up and initial exploration programs have also continued in respect of the Company’s
large Bottletree copper Project and the recently granted Big Mag Project.
At Bottletree, we recognise the potential for the discovery of a major copper deposit to be made in the
next diamond drilling program. Exploration drilling conducted during the second half of last year
returned nearly 300 metres of copper mineralisation with an average grade of 0.22% copper and an
18.7m high grade zone averaging 1.12% copper. This significant interval of copper mineralisation
coincides with a large IP chargeability anomaly that is at least one kilometre in length with increasing
size at depth. We are very excited about the potential that Bottletree presents.
We are also pleased to have been granted a new tenement covering the 5km by 5km sized Big Mag
magnetic feature, which is largely unexplored and shows potential for nickel-cobalt mineralisation.
Preparations are underway to enable exploration work to commence as soon as possible.
Consistent with previous years, the Company has continued its strict controls on overhead expenses
and cashflow management, which include the deferral of payment of fifty percent of all Directors’
services fees.
I take this opportunity to sincerely thank the shareholders for their continued support and also the
Company’s staff and fellow Directors for their professionalism and dedication during the year.
Carlos Fernicola
Chairman
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Strategy
TO DISCOVER:
a large Mount Isa Style lead-zinc-copper deposit
a large VMS / porphyry copper-gold deposit
A PROJECT PORTFOLIO TO MAXIMISE VALUE GROWTH POTENTIAL:
Tier 1 exploration projects – Nicholson / Victor
Drill-ready targets in Carpentaria Zinc Province
Partner with “Majors”
Inlier of Macquarie Arc – Greenvale
World-class porphyry copper-gold region
Remnant of NSW Ordovician porphyry belt (Cadia, N Parkes)
Underexplored
More than 10 significant targets
SPQ holds most of the Greenvale Ordovician terrane
Battery Metals – Future Focused
Nickel – Cobalt
3 high impact projects
Globally growing markets
ENSURE EXPERIENCED, FOCUSSED BOARD AND MANAGEMENT
TO DELIVER VALUE GROWTH TO SHAREHOLDERS
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Project Portfolio
As at October 2019, Superior maintained a portfolio of zinc-lead, copper, gold, nickel-cobalt
and uranium projects (Figure 1).
The Company’s current portfolio of projects is as follows:
Nicholson Project
• 8+ Tier 1 potential EM targets
• Walford Creek West
Mount Isa Style
(lead-zinc-silver)
Mount Isa Style
(sulphide copper-lead-zinc-cobalt)
• Hedleys Uranium
Uranium
Victor Project
• Victor Project
• Kingfisher
Greenvale Project
• Bottletree
• Steam Engine Gold Deposit
• Galah Dam
• Cockie Creek
• Wyandotte Copper
• Halls Reward
• One Mile/One Mile Dam
• Riesling
• Lucky Creek
• Big Mag
Mount Isa Style
(lead-zinc-silver)
Copper-cobalt
Potential VMS / porphyry
(copper-gold)
High-grade lode gold
(gold)
Potential porphyry / massive
sulphide (copper-gold)
Potential porphyry
(copper-gold)
High-grade copper
Cyprus style VMS
(high-grade copper)
VMS / massive sulphide
(copper-zinc-gold)
Broken Hill Style
(zinc-lead-copper)
Lateritic Nickel-Cobalt
(nickel-cobalt)
Lateritic Nickel-Cobalt
(nickel-cobalt)
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
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Figure 1. Location of Superior’s projects.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Nicholson Project
Mount Isa Style Lead-Zinc-Silver / Copper / Cobalt / Uranium
“TIER 1” LEAD-ZINC PROJECT LOCATED WITHIN THE CARPENTARIA ZINC PROVINCE, NORTH
WEST QUEENSLAND. AN INDUSTRY-LEADING OPPORTUNITY TO DISCOVER A WORLD-CLASS
MOUNT ISA STYLE ZINC-LEAD-COPPER DEPOSIT. THE CARPENTARIA ZINC PROVINCE CONTAINS
20% OF THE WORLD’S ZINC RESOURCE INVENTORY.
The Nicholson Project, together with the Victor Project (refer to next section), presents “Tier 1”
potential zinc-lead-silver exploration projects that provide the Company with industry-leading
opportunities to discover a world-class Mount Isa Style Zinc-Lead-Copper deposit. The projects are
located in the Carpentaria Zinc Province, which contains 20% of the world’s zinc resource inventory
(Figure 2).
In the region immediately surrounding Mount Isa, rocks prospective for Mount Isa Style deposits are
exposed at or close to surface and as a consequence, have been intensely explored. In contrast, the
Company’s Victor Project, located about 150km northwest of Mount Isa, is in an equally prospective
region that is relatively unexplored. In this region the prospective rock sequences are covered by
varying depths of younger sediments. This is the most likely area within Queensland to make the next
Mount Isa discovery.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
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Figure 2. The Carpentaria Zinc Province
Regional setting
The Nicholson Project (EPM15670 and EPM18203), located near the Walford Creek lead-zinc-silver-
copper deposit, is considered to have potential to contain sediment-hosted lead-zinc-silver massive
sulphide deposits, similar to the Mount Isa and McArthur River deposits.
The project is located within a sequence of prospective Proterozoic sediments within the east-northeast
trending Hedleys Graben. This graben is bounded by the Fish River Fault on its northern side and the
Nicholson River Fault on its southern side (Figure 3).
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Sediments of the Fickling Group within the Hedleys Graben are equivalent in age to sediments that host
large base metal mineral deposits at Mount Isa and Macarthur River. In particular, the Mount Les
Siltstone has potential for large stratiform base metal deposits. The Doomadgee Formation which
unconformably overlies the Mount Les Siltstone is also thought to be of similar age to the part of the
Lawn Hill Formation which contains the large stratiform Century lead-zinc-silver deposit. All of these
formations are target horizons in the Nicholson Project area.
Figure 3. Nicholson Project tenements and key prospect locations overlaid on regional geology.
Exploration work completed to date has identified at least eight large high priority geophysical targets,
each of which have potential to be caused by Tier 1 – sized stratiform base metal deposits (Figure 3).
In addition, the project area also includes the Walford Creek West Zinc-Lead-Copper-Cobalt Prospect
and the Hedleys Uranium Prospect (described further below).
Drilling program – South32 joint venture
The Company entered into an earn-in and joint venture agreement with a wholly-owned subsidiary of
South32 Limited during May 2019 to advance the exploration of the Nicholson Project.
The initial exploration program under the joint venture includes the drilling of up to 11 diamond core
holes to systematically test up to eight large high priority geophysical conductivity targets. Drilling
commenced during late July 2019 and is fully funded by South32.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Under the joint venture agreement, South32 may earn a 70% interest in the project by completing Stage
1 and Stage 2 obligations. Under Stage 1, South32 must fully fund an initial $2 million or 4,000 metres
of drilling (whichever comes first) within the first 12 months of operations. After completion of Stage
1, South32 may elect to proceed to Stage 2 by sole-funding a further $4 million on exploration within
the next four years. Superior is appointed the Operator of the joint venture during Stages 1 and 2.
After completion of Stages 1 and 2, South32 may elect to earn an additional 10% interest by completing
a feasibility study.
By late September 2019, approximately 2,500 metres of drilling over three core holes had been
completed. Two of the holes were drilled into the Nicholson West target and one hole into the
Kingfisher East target (Figure 3). The drilling confirmed the presence of the prospective Mount Les
Siltstone of up to 340 metres thick containing multiple horizons of stratiform sulphide (pyrite and
sphalerite) mineralisation. Drilling during 2019 has been focussed on the Nicholson West prospect area.
Assay results are expected to be received during December 2019. Drilling will continue until the end of
the 2019 field season.
High priority EM conductivity anomalies
An airborne VTEM (Versatile Time Domain EM) survey over 260-line kilometres of part of the Nicholson
Project was completed by Geotech Airborne Pty Ltd in 2007. The original data was remodelled during
late 2018 and interpreted by geophysical consultants – Aarhus Geophysics. The applied Aarhus method
is designed for detection and delineation of subsurface contrasts in conductivity and resistivity. In
particular, the responses can be interpreted from the collected data to detect sub surface
accumulations of massive sulphide deposits.
The conductivity remodelling significantly improved the quality of modelled data at depth and also
improved the vertical resolution of conductive formations. In particular, the results have upgraded the
Company’s original high priority Nicholson West conductivity target as well as identified new high
priority and highly conductive targets adjacent to the Nicholson River (Figure 4), both of which are
located within the same geological strata.
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Figure 4. VTEM Aarhus modelled conductivity sections on lines 184,000E and 187,000E showing the Nicholson
West and Nicholson River conductivity anomalies and interpreted major southwest-trending fault.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
The Nicholson River and Nicholson West targets are interpreted to dip shallowly to the south (parallel
to the regional stratigraphy), which is consistent with field observations made to the north of the
prospect area (Figures 4 and 5). A southwest-northeast trending fault structure is interpreted to be
developed between the two anomalies.
Importantly, the Nicholson River and Nicholson West targets can be interpreted in vertical conductivity
sections to be coincident with the Mount Les Siltstone, which is the prospective mineralisation host
that is known in the region to host Sedimentary Exhalative (SEDEX) style deposits.
Most of the conductivity targets that are planned to be drilled in the South32 joint venture program
are of sufficient size to be similar to a McArthur or Century-sized deposit.
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Figure 5. Nicholson West Prospect – VTEM stacked conductivity sections showing interpreted conductivity
anomaly on lines 183,000E, 184,000E, 185,000E and possibly 186,000E.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Walford Creek West
Walford Creek West lies within EPM18203 and is the western extension of the Fish River zinc-lead-
copper-cobalt mineralised zone and part of Aeon Metals Limited’s Walford Creek Project (Figure 3).
Recent drilling located 3.6 kilometres from the boundary of EPM18203 by Aeon Metals, reported
copper, cobalt, lead and silver mineralisation from the Mount Les Siltstone.
Walford Creek West forms part of the Company’s battery metals portfolio of projects.
Hedleys Uranium
Hedleys Uranium is a strong, localised airborne uranium radiometric anomaly (Figure 6) associated with
a major fault (Figure 7). The anomaly has previously been considered to be an anomaly related to radon
gas dissolved in spring waters and has not previously been drilled.
Superior’s work indicates that the source of the anomaly lies approximately 100 to 150m above the
major unconformity between the sandstones and siltstones of the South Nicholson Group and the
underlying carbonaceous siltstones of the Doomadgee Formation and the Mt Les Siltstone (Figure 8).
A number of major uranium deposits in the Athabasca Basin of Canada and the Alligator River Region
of Australia lie on or close to similar unconformities (between Proterozoic reduced crystalline rocks and
overlying sandstones). Hedleys Uranium therefore warrants further work.
20
15
10
5
0
eUranium
(ppm)
8,020,000 mN
8,018,000 mN
E
m
0
0
0
,
4
0
2
Hedleys
E
m
0
0
0
,
6
0
2
E
m
0
0
0
,
8
0
2
8,016,000 mN
Figure 6. Image of uranium airborne radiometrics showing the Hedleys Uranium Anomaly.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
205,000 mE
205,500 mE
206,000 mE
206,500 mE
207,000 mE
207,500 mE
208,000 mE
Alluvium
Sandstone
over
Siltstone
8,018,000 mN
8,017,500 mN
8,017,000 mN
8,016,500 mN
F a ult
Springs
Sandstone
(South Nicholson Group)
S
e
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t
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0
metres
500
Includes copyrighted material of Digital Globe, Inc., All Rights Reserved
Hedleys Uranium Prospect
Quick Bird Imagery
8,018,000 mN
8,017,500 mN
8,017,000 mN
eUranium
Contours
(ppm)
35
30
8,016,500 mN
25
20
15
10
5
205,000 mE
205,500 mE
206,000 mE
206,500 mE
207,000 mE
207,500 mE
208,000 mE
Figure 7. Satellite image of Hedleys Uranium showing the association of the uranium anomaly with a major
fault. Note the position of the section in Figure 8.
Airborne Radiometrics Uranium Profile
South
Nicholson
Group
Doomadgee
Formation
(Carbonaceous
Siltstones)
0 mRL
-200 mRL
-400 mRL
Siltstone
Sandstone
Siltstone
Sandstone
Radon Gas
Unconformity
Strong ‘eUranium’ Anomaly
Radon Gas
Anomaly
g
n
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p
S
South
Nicholson
Group
Possible
Uranium
Deposit
Unconformity
Doomadgee
Formation
(Carbonaceous
Siltstones)
eU
(ppm)
40
30
20
10
Sandstone
Siltstone
0 mRL
Sandstone
-200 mRL
-400 mRL
-600 mRL
Mt Les Siltstone
(Carbonaceous
Shales)
Mt Les Siltstone
(Carbonaceous
Shales)
Hedleys Uranium Prospect
Diagrammatic Section
Illustrating Possible Source
for
Airborne Uranium Anomaly
0
metres
200
-600 mRL
m
0
0
4
m
0
0
6
m
0
0
8
m
0
0
0
1
m
0
0
2
1
m
0
0
4
1
m
0
0
6
1
Figure 8. Hypothetical section through Hedleys Uranium showing the possible location of the source of the
uranium which may have caused the airborne uranium anomaly. Refer Figure 7 for the section location.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Victor Project
Mount Isa Style Lead-Zinc-Silver / Copper
SUPERIOR’S “NEXT MOUNT ISA” PROJECT COMPRISING SIX EXPLORATION PERMITS, COVERING
A TOTAL AREA OF 717KM2. “TIER 1” LEAD-ZINC PROJECT LOCATED WITHIN THE CARPENTARIA
ZINC PROVINCE, NORTH WEST QUEENSLAND. AN INDUSTRY SECTOR-LEADING OPPORTUNITY
TO DISCOVER A WORLD-CLASS MOUNT ISA STYLE ZINC-LEAD-COPPER DEPOSIT.
The Victor Project represents the Company’s “Next Mount Isa” project and comprises six exploration
permits for minerals (EPM) covering a combined total area of 717 km2.
Work conducted by the Company indicates that stratigraphy prospective for the discovery of Mount Isa
Style deposits is likely to be present under moderate sedimentary cover within the Victor Project area.
This area is relatively un-explored.
Superior’s exploration strategy is based on the mechanism of geochemical “leakage” of key metals
(lead, zinc and copper) from a deeper Proterozoic mineralised source into the younger sediments
overlying the Proterozoic (Figure 9).
Figure 9. Diagrammatic representation of the ‘leakage’ concept. Superior believes that ‘leakage’ from Proterozoic
deposits into the overlying cover rocks may be one of the best methods of targeting prospective areas for Mount
Isa Style deposits under younger sediments.
Geochemical Leakage into Surrounding Rocks and Overlying Cover
Superior understands that there are two important types of “leakage”:
1.
the formation of major metal deposits is accompanied by “leakage” of metals at the time of
formation into the surrounding area resulting in “halo” anomalies/mineralisation. At Mount Isa a
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
subtle lead anomaly extends along the faults/stratigraphy well beyond the ore bodies. These
anomalies are recognisable in regional geochemical images; and
2.
it is apparent that lead and zinc (and probably copper) are remobilized into rocks above deposits,
post deposit formation. The lead-zinc within Cambrian cover sediments at Century and Grevillea
support this statement. The large lead-zinc anomaly at the Victor Project make this an area
potentially hosting large Proterozoic deposits below the Cambrian cover in which the anomaly is
developed (Figures 10 and 11).
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Figure 10. Imaging of historical stream and soil geochemical values highlight the Victor Project area because of
strong lead and zinc anomalies. This image shows that zinc anomalies are associated with other areas of
significant mineralisation including Mount Isa, Lady Loretta, Century and Grevillea. The size and intensity of the
Victor Project lead and zinc anomaly is similar to that at Mount Isa.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Historical Airborne Surveys
The north-west Queensland area is blessed by almost complete coverage by airborne magnetics and
radiometrics (Figure 11). In addition to this coverage there are numerous historical airborne EM surveys
available which are largely ignored by explorers. Superior has acquired most of the EM surveys in digital
form and processed a number of surveys to produce conductivity sections. Many of the surveys contain
anomalies over conductive graphitic sediments which makes interpretation for mineralisation difficult.
However, the surveys provide a view of the stratigraphy in covered areas. As mineralisation is often
associated with graphitic sediments the location of these conductive units can assist the delineation of
prospective areas.
Figure 11. Soil lead geochemical anomalies coincident with deeper large basement structures.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Greenvale Project
Porphyry and VMS Copper-Gold / Nickel-Cobalt / Gold
HIGHLY MINERALISED LUCKY CREEK CORRIDOR, WHICH IS HELD ENTIRELY BY THE COMPANY,
IS RETURNING SUCCESS FOR THE COMPANY AT MULTIPLE LEVELS.
THE GREENVALE PROJECT COVERS A REGION OF VOLCANIC AND INTRUSIVE ROCKS OF
ORDOVICIAN AGE THAT ARE SIMILAR IN TYPE AND AGE TO THE PORPHYRY COPPER BELT IN
NEW SOUTH WALES. THE NEW SOUTH WALES BELT OF ROCKS HOST THE LARGE CADIA AND
NORTH PARKES PORPHYRY COPPER MINES. THE SEQUENCE OF ROCKS IN THE GREENVALE
AREA ARE LIKELY TO BE THE NORTHERN-MOST EXTENSION OF THE REMNANT NEW SOUTH
WALES ORDOVICIAN MACQUARIE ARC ROCKS (FIGURE 12).
Superior’s Greenvale Project is highly prospective for VMS and porphyry copper, gold, zinc and silver
deposits and contains at least ten mineral prospects (Figures 13 and 14). The project is located within
an area of notable economic significance, being proximal to the Kidston, Balcooma, Surveyor and Dry
River South deposits.
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Figure 12. A reconstruction of the Macquarie Arc across eastern Australia showing the development of the
Greenvale Province and other provinces including the Charters Towers Province.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Figure 13. Greenvale Project tenement location map showing locations of key prospects.
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Figure 14. Airborne magnetics (RTP) processed image over the Greenvale Project area and surrounds, showing
the key prospects within the Greenvale Project.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Bottletree
COPPER-GOLD
BOTTLETREE IS A LARGE (2KM X 1KM) SOIL COPPER ANOMALY (FIGURE 15), WITH A
COINCIDENT LARGE AND HIGH ORDER CHARGEABILITY ANOMALY. RC AND DIAMOND
DRILLING DURING 2017 AND 2018 CONFIRMED EXTENSIVE COPPER MINERALISATION
EXTENDING TO DEPTHS IN EXCESS OF 300 METRES. DIAMOND DRILLING DURING 2018
DISCOVERED HIGH GRADE COPPER MINERALISATION AT DEPTH. NEW 3D MODELLING
INDICATES THAT A LARGE COPPER TARGET LIES AT DEPTH AND IMMEDIATELY SOUTH OF 2018
DIAMOND DRILLING. DELINEATION AND DEFINITION DRILLING HAS ONLY JUST COMMENCED.
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Figure 15. Copper-in-soil processed image showing the large scale Bottletree copper in soil anomaly.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
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Figure 16. Bottletree MIMDAS IP survey line locations plotted over soil copper geochemistry, showing drill holes
SBTRD005 and SBTRD006. Also shown are cross section line 2400N and long section 3180E.
Following on from a four-hole, 528 metre RC drilling program completed during July 2017, the Company
completed a MIMDAS IP geophysical survey in 2018 (Figure 16) and the first deep diamond drilling
program at Bottletree1. Two holes (650 metres and 450 metres) were drilled into a large MIMDAS
induced polarisation (IP) chargeability anomaly coincident with near surface copper mineralisation.
Significant broad intervals of extensive visible coarse-grained chalcopyrite, pyrite and pyrrhotite
mineralisation were intersected in hole SBTRD006 with copper grades ranging from less than 0.1% to
greater than 1% copper. Assay results returned the following average grades2:
•
•
292m @ 0.22% copper (from 148m to 440m)3;
including 18.7m @ 1.12% copper (from 328m to 346.7m)4.
Advanced 3D modelling of the MIMDAS survey results indicate a close correlation between the copper
grades and chargeability. A cross section generated along survey line 2400N and a long section along
3180E indicate that the drilling to date has penetrated the edges of the main IP target zone (Figures 17
and 18). Based on the correlation between the IP data and the drill hole assay results, higher grade
copper mineralisation is expected to be encountered within the main chargeable target zone, which is
located to the south of SBTRD006 and also at deeper levels.
The limits to this large copper mineralised system have not yet been delineated and it remains open
both laterally and at depth.
1 MIMDAS IP survey completed during May 2018, diamond drilling program completed late August 2018.
2 Assay results were received during October 2018 (refer ASX announcement 25 October 2018).
3 Cut-off of grade of 0.1% Cu but with some narrow intervals of less than 0.1% Cu included.
3 Cut-off of grade of 0.5% Cu including narrow intervals of less than 0.5% Cu.
19
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
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Figure 17. Bottletree long-section 3180E through hole SBTRD006 and other holes showing average copper
intersections on a background image of chargeability from 3D modelling of MIMDAS IP survey data.
Drill holes 2018
Figure 18. 3D modelling of Bottletree MIMDAS IP survey results presented in wireframe, showing locations of
2018 drill holes SBTRD005 and SBTRD006.
20
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
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Figure 19. Bottletree SBTRD006 core: Top and middle photographs showing Trays 37 and 38 containing drill
core from down hole depths 337m – 341.5m (approx.) and 341m – 344.5m (approx.) respectively, showing
strong chalcopyrite and pyrite mineralisation. Bottom photograph shows close-up view of drill core from 343m
(approx.).
21
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Big Mag
NICKEL-COBALT / COPPER-GOLD / ZINC
CHARACTERISED BY A REGIONALLY LARGE HIGH-ORDER MAGNETIC ANOMALY OF
APPROXIMATELY 25KM2 IN AREA (FIGURES 20 AND 21). CONSIDERED TO BE RELATED TO THE
SAME SERIES OF ROCKS AS THE GREENVALE NICKEL MINE (SCONI). LARGELY UNEXPLORED
WITH ONLY MINOR SHALLOW DRILLING ON THE NORTHERN MARGINS. EXISTING DRILLING
IDENTIFIED LATERITE AND TERTIARY SEDIMENTS OVERLYING MAFIC TO ULTRAMAFIC
INTRUSIVE ROCKS, INDICATING HIGH POTENTIAL FOR NICKEL-COBALT MINERALISATION.
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Figure 20. Airborne magnetics (RTP) processed image over the Greenvale Project area and surrounds. Big Mag
is shown relative to other Greenvale Project prospects.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
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Figure 21. Airborne magnetics (RTP 1VD) processed image with the Big Mag feature visible in the southern part
of the image.
23
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Steam Engine Gold Deposit
GOLD
EXTENSIVE HIGH GRADE GOLD LODES DEVELOPED IN SHEAR ZONES WITH OVER 2.5
KILOMETRES OF STRIKE LENGTH IDENTIFIED AT SURFACE. MAIDEN JORC INFERRED MINERAL
RESOURCE ESTIMATE BASED ON 400 METRES OF LODE STRIKE LENGTH. MINERALISATION
OPEN AT DEPTH AND ALONG STRIKE.
The Steam Engine Gold Deposit contains at least two sub-parallel gold bearing lodes, referred to as the
Steam Engine Lode and the Eastern Ridge Lode, which are separated by about 600 metres (Figure 22).
9
0
0
0
LEGEND
m
E
Geology
11400 mN
Gold Bearing Lode
Feldspar Porphyry
Andesite
Metagranodiorite
Metadiorite
Metatonalite
Chert
11000 mN
Metabasalt with Chert
Metabasalt
Metadacite
Metasediments
2
6
2
,
0
0
0
E
10600 mN
10200 mN
9800 mN
9400 mN
2
6
1
,
5
0
0
E
EPM25659
(SPQ)
Geology after
Noranda Australia Limited
7 , 8 9 7 , 0 0 0 N
9
4
0
0
m
E
Local Grid Translation to MGA Z55:
10000E, 10000N = 262773.07E, 7895414.27N
Local Grid North = 17.95 Degrees MGA
d
a
a l R o
n t
p m e
e l o
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G r
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E
m
a
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t
S
Section 10350N
Section 10250N
9
8
0
0
m
E
1
0
2
0
0
m
E
e
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o
L
e
g
d
i
R
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t
s
a
E
2
6
3
,
5
0
0
E
11400 mN
7 , 8 9 6 , 5 0 0 N
11000 mN
7 , 8 9 6 , 0 0 0 N
10600 mN
EPM25659
(SPQ)
7 , 8 9 5 , 5 0 0 N
10200 mN
EPM26165
(SPQ)
9800 mN
7 , 8 9 5 , 0 0 0 N
2
6
3
,
0
0
0
E
9400 mN
Old Working
Southern Zone
E
Lodes
m
0
0
4
9
Drill Hole
E
m
0
0
8
9
7 , 8 9 4 , 5 0 0 N
2
6
2
,
5
0
0
E
E
m
0
0
2
0
1
9000 mN
0
metres
200
Figure 22. Steam Engine Gold Deposit – Interpreted geology showing the gold-bearing lodes (in red), drill holes
and soil gold geochemistry (over the Eastern Ridge Lode and Southern Zone).
24
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
The lodes are north-north-east trending, west-dipping lodes and are essentially mineralised shear zones
comprising pyrite-quartz-muscovite-carbonate schist within amphibolite, metasediment and/or
metatonalite. An area of gold mineralisation comprising multiple lodes (Southern Zone) is located
between and to the south of these two lodes.
Maiden JORC Inferred Mineral Resource Estimate – Steam Engine Lode
Based on the Company’s RC drilling during July 2017 and historical drill holes, a maiden inferred mineral
resource estimate was developed on an approximate 400m section of the Steam Engine Lode:
•
1.0Mt @ 2.5g/t gold (1.0 g/t cut-off) for a total of 85,000 ounces gold (Inferred)
2017 drilling of Steam Engine Lode and Eastern Ridge Lode
Six RC holes totalling 510 metres were drilled at the Steam Engine Gold Project. Each of the holes
intersected gold mineralisation. The successful drilling program extends the mineralised envelope
along strike and at depth at the Steam Engine Lode and extends the depth extent of a portion of the
Eastern Ridge Lode.
At the Steam Engine Lode, two holes were drilled to the north of the main area of historical resource
drilling. There is good potential for additional gold resources on the Steam Engine Lode to the north of
the area of detailed drilling (Figure 23). Summary results of the drilling at the Steam Engine Lode are
set out in Table 1.
Table 1. Gold intersections from the 2017 drilling of the Steam Engine Lode
Hole
Name
SSERC005
SSERC006
SSERC006
To
(m)
72
68
94
# Drill hole intersections have been calculated using a cut-off of 1g/t with no included material below the cut-off. True widths
of intersections are approximately 0.9 times the intersection lengths shown in the table.
Gold
(g/t Au)
1.90
2.79
2.34
Length
(m)
2
2
4
From
(m)
70
66
90
At the Eastern Ridge Lode, four shallow holes were drilled in a part of the lode where earlier historical
drilling had shown the best gold results (Figure 24). All four holes intersected the Eastern Ridge Lode
structure. Summary results of the drilling at the Eastern Ridge Lode are set out in Table 2.
The strong results from the Eastern Ridge Lode confirm the potential to extend the lode at depth and
also the possibility of delineating multiple parallel mineralised lodes. Multiple zones of mineralisation
were intersected in two of the four holes drilled at the Eastern Ridge Lode.
Table 2. Gold intersections from the recent drilling of the Eastern Ridge Lode.
Hole
Name
SSERC001
SSERC001
SSERC001*
SSERC002*
SSERC003
SSERC003*
SSERC004
SSERC004*
From
(m)
10
16
45
33
36
54
42
50
Length
(m)
2
2
3
1
4
2
1
3
Gold
(g/t Au)
2.24
2.14
3.09
5.28
2.47
4.73
4.67
3.81
To
(m)
12
18
48
34
40
56
43
53
25
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
9
2
0
0
m
E
Local Grid Translation to MGA Z55:
10000E, 10000N = 262773.07E, 7895414.27N
Local Grid North = 17.95 Degrees MGA
Dam
10600 mN
10400 mN
3
0
0
D
D
S
L
7 , 8 9 6 , 0 0 0 N
2
6
2
,
0
0
0
E
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10200 mN
r
o
Au (g/t)F
LEGEND
1.0 to 2.0
2 to 3
3 to 5
5 to 100
4
3
0
C
R
S
L
0
1
P
S
L
6
0
P
S
L
7
0
P
S
L
8
0
P
S
L
9
0
P
S
L
10600 mN
5
2
0
C
R
S
L
10400 mN
3
3
0
C
R
S
L
4
0
P
S
L
3
0
P
S
L
2
0
P
S
L
1
0
P
S
L
4
6
0
C
R
S
L
e
d
o
L
e
n
i
g
n
E
m
a
e
t
S
9
4
0
0
m
E
6
0
0
C
R
E
S
S
New SPQ
Drill Holes
5
0
0
C
R
E
S
S
2
3
0
C
R
S
L
3
6
0
C
R
S
L
1
3
0
C
R
S
L
3
0
0
C
R
S
L
9
1
0
C
R
S
1L
6
0
C
R
S
L
9
5
0
C
R
S
L
6
5
0
C
R
S
L
2
6
0
C
R
S
L
0
6
0
C
R
S
L
7
5
0
C
R
S
L
0
5
0
C
R
S
L
4
5
0
C
R
S
L
4
0
0
C
R
E
S
3
5
0
C
R
S
L
4
0
0
D
D
S
L
5
0
0
D
D
S
L
1
0
0
D
D
S
L
5
5
0
C
R
S
2
L
5
0
C
R
S
L
2
0
0
C
R
S
L
8
5
0
C
R
S
2
L
1
0
C
R
S
L
9
4
0
C
R
S
L
1
5
0
C
R
S
L
6
4
0
C
R
S
L
3
4
0
C
R
S
L
8
4
0
C
R
S
L
5
4
0
C
R
S
L
2
4
0
C
R
S
L
9
0
0
C
R
S
L
0
4
0
C
R
S
L
9
3
0
C
R
S
L
7
3
0
C
R
S
L
8
3
0
C
R
S
L
7
4
0
C
R
S
L
4
4
0
C
R
S
L
1
4
0
C
R
S
L
1
0
0
C
R
S
L
10200 mN
8
1
0
C
R
S
L
1
1
0
D
D
S
L
6
0
0
D
D
S
L
0
3
0
C
R
S
L
7
0
0
D
D
S
L
1
0
0
C
R
E
S
8
0
0
D
D
S
L
9
0
0
D
D
S
L
2
0
0
C
R
E
S
0
1
0
D
D
S
L
2
0
0
D
D
S
L
2
1
0
D
D
S
L
3
0
0
C
R
E
S
E
m
0
0
2
9
E
m
0
0
4
9
Figure 23. Steam Engine Lode – Gold bearing lodes and drill holes.
26
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
6
1
0
C
R
S
L
8
0
0
C
R
E
S
8
2
0
C
R
S
L
5
0
0
C
R
S
L
2
0
0
C
R
E
S
4
9
1
0
0
C
R
E
S
4
9
e
d
o
L
e
g
d
i
R
n
r
e
t
s
a
E
4
0
0
C
R
E
S
S
7
2
0
C
R
S
L
New SPQ
Drill Holes
1
0
0
C
R
E
S
S
6
0
0
C
R
S
L
3
0
0
C
R
E
S
S
2
0
0
C
R
E
S
S
9
0
0
C
R
E
S
1
1
0
C
R
S
L
7
0
0
C
R
S
L
3
1
0
C
R
S
L
2
6
2
,
5
0
0
E
Local Grid Translation to MGA Z55:
10000E, 10000N = 262773.07E, 7895414.27N
Local Grid North = 17.95 Degrees MGA
7 , 8 9 5 , 5 0 0 N
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Au (g/t)F
LEGEND
1.0 to 2.0
2 to 3
3 to 5
5 to 100
7 , 8 9 5 , 0 0 0 N
Figure 24. Part of the Eastern Ridge Lode showing historic drill holes and recent Superior drill holes.
27
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Cockie Creek
COPPER-GOLD
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COCKIE CREEK IS A LARGE POTENTIAL PORPHYRY COPPER-GOLD MINERALISED SYSTEM THAT
EXTENDS FOR OVER 1.2 KILOMETRES.
At Cockie Creek, disseminated copper mineralisation with some gold and molybdenum occurs
associated with a quartz-biotite-hornblende schist unit enclosed within a metamorphosed basic
volcanics sequence. The quartz- biotite-hornblende schist unit is interpreted as a metamorphosed
altered tonalite intrusive unit. The copper mineralisation, with a true width up to 60 metres, extends
over 1.2 kilometres and dips grid easterly at -80° (Figure 25).
Historical drilling comprises a total of 63 drill holes for 6,638 metres. Selected drill hole intersections
are shown in Table 3.
Table 3: Cockie Creek - Selected Drill Hole Intersections.
Hole
CRC002
CRC009
CRC010
CRC011
CRC014
CRC017
CRC023
CRC026
D1
D3
P11
P12
P16
EastMGA NorthMGA
7904295
7904243
7904283
7904295
7904155
7904226
7904120
7904137
7904183
7904227
7904244
7904345
7904307
267380
267356
267353
267320
267019
267378
267037
266995
267448
267075
267403
267339
267370
From
(m)
0
66
11
1
15
121
53
11
180
56
50
50
0
To
(m)
68
163
85
80
56
215
141
84
216
104
108
100
40
Length
(m)
Cu
(%)
68
97
74
79
41
94
88
73
36
48
58
50
40
0.74
0.48
0.42
0.45
0.50
0.53
0.43
0.44
0.57
0.48
0.64
0.44
0.75
Au
(g/t)
0.12
0.07
0.08
0.06
0.10
0.08
0.06
0.05
0.10
0.10
0.07
0.07
0.13
Mo
(ppm)
92
114
78
76
48
99
49
22
28
94
-
-
-
JORC 2004 Inferred Mineral Resource Estimate
A resource estimation in accordance with the 2004 JORC Code and based on historical drilling was
developed for global inferred resources down to an RL of 300 metres (approximately 250m depth):
•
13Mt @ 0.42% copper.
Insufficient assay data exists for reliable estimations of gold and molybdenum to be made.
Also of interest is an intersection of 3m @ 9.0 g/t Au between 80 and 83m in drill hole CRC003(B03)
drilled through the central zone of copper mineralisation.
Geophysical modelling
Superior completed three-dimensional (3D) computer modelling of existing IP geophysical survey data.
The modelling produced at least two pronounced chargeable sources located beneath shallower
disseminated copper mineralisation and also indicated potential for the existence of a large porphyry
copper mineralised system beneath the near-surface mineralisation (Figures 26 and 27).
As a result, the modelling has opened up the potential of the Cockie Creek area to host a significant
porphyry copper deposit.
28
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2000 mN
1800 mN
1600 mN
1400 mN
1200 mN
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
E
m
0
0
0
2
E
m
0
0
2
2
E
m
0
0
4
2
9
2
B
E
m
0
0
6
2
5
1
B
6
1
B
2200 mN
Copper
Soil Contours
(ppm)
2000
1500
1000
500
200
2200 mN
8
P
7
P
0
2
B
4
0
B
4
1
P
5
0
3B
1
P
6
0
B
1
0
B
7
0
B
5
1
P
8
0
B
6
P
2
0
B
0
1
B
9
1
B
8
1
B
7
1
B
1
D
4
D
8
2
B
1
1
B
2
1
B
7
1
P
3
0
B
7
2
B
9
0
B
2
D
1
2
B
2
2
B
0
1
P
3
2
B
1800 mN
1600 mN
5
D
Geology
Soil and alluvium cover
Quartz-biotite-hornblende schist
Quartz-amphibole-biotite gneiss
Massive and layered amphibolite
2
1
P
5
P
8
1
P
0
2
P
9
1
P
3
D
3
1
B
4
P
1
2
P
2
2
P
4
1
B
6
2
B
4
2
P
3
2
P
5
2
P
Central
Zone of
Copper
Mineralisation
2
P
7
2
P
6
2
P
9
2
P
8
2
P
1
1
P
5
2
B
4
2
B
9
P
6
D
Quartz vein
1400 mN
Gossan
Fault
Cockie Creek Copper Prospect
Geology
Mineralisation
Drill Holes
E
m
0
0
0
2
E
m
0
0
2
2
E
m
0
0
4
2
E
m
0
0
6
2
1200 mN
1000 mN
Figure 25. Cockie Creek Copper Prospect - Geology showing all drill holes, soil copper geochemistry and the
Central Zone of Copper Mineralisation.
29
2200 mN
2000 mN
1800 mN
1600 mN
1400 mN
1200 mN
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
E
m
0
0
0
2
E
m
0
0
2
2
E
m
0
0
4
2
9
2
B
E
m
0
0
6
2
5
1
B
6
1
B
CRC015(B15) 13-65
52m @ 0.16% Cu
CRC003(B03) 3-74
71m @ 0.29% Cu
incl 37-65 28m @ 0.44 % Cu
80-83 3m @ 9.0g/t Au
Western
Chargeable
Source
(Untested)
Section 1700N
2200 mN
4
D
0
2
B
CRC020(B20) 0-69
69m @ 0.19% Cu
8
P
7
P
4
0
B
4
1
P
5
0
3B
1
P
6
0
B
9
1
B
8
1
B
CRC002(B02) 0-68
68m @ 0.74% Cu
1
D
7
1
B
CRC017(B17) 121-215
94m @ 0.53% Cu
9
0
B
CRC009(B09) 66-163
97m @ 0.48% Cu
2
D
D2 122-156
34m @ 0.46% Cu
2
1
P
5
P
8
1
P
0
2
P
9
1
P
1
0
B
7
0
B
5
1
P
8
0
B
6
P
2
0
B
0
1
B
8
2
B
1
1
B
2
1
B
7
1
P
3
0
B
7
2
B
1
2
B
2
2
B
3
D
3
1
B
4
P
1
2
P
2
2
P
4
1
B
6
2
B
4
2
P
3
2
P
5
2
P
5
D
0
1
P
P10 122-200
78m @ 0.28% Cu
3
2
B
CRC023(B23) 53-141
88m @ 0.43% Cu
CRC026(B26) 11-84
73m @ 0.44% Cu
Eastern
Chargeable
Source
1800 mN
Central
Zone of
Copper
Mineralisation
1600 mN
P2 0-40
40m @ 0.15% Cu
2
P
7
2
P
6
2
P
P28 0-34
34m @ 0.31% Cu
P27 2-40
38m @ 0.26% Cu
D6 218-286
68m @ 0.23% Cu
9
P
6
D
1400 mN
9
2
P
8
2
P
1
1
P
5
2
B
4
2
B
Chargeability
Contours
35
30
25
20
15
10
Cockie Creek Copper Prospect
3D Chargeability Model
Plan Section at 450RL
Drill Hole Intersections
E
m
0
0
0
2
E
m
0
0
2
2
E
m
0
0
4
2
E
m
0
0
6
2
1200 mN
1000 mN
Figure 26. Cockie Creek Copper Prospect – Plan section of 3D chargeability model at 450RL (100m below surface)
showing the main mineralised area on the eastern side and the new untested chargeable source on the western
side. The selected drill hole copper intersections shown indicate the spread of the copper mineralisation.
30
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
OPERATIONS REPORT
Figure 27. Cockie Creek Copper Prospect – Vertical cross section through the 3D chargeability model at 1700N
showing the main mineralised area with drill hole copper intersections on the eastern side and the new untested
chargeable source on the western side. Proposed drill hole 1 is also shown.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CORPORATE REVIEW
Company Background
Superior Resources Limited (Superior or the Company) is a Brisbane based ASX-listed company (ASX
code: SPQ) exploring for lead-zinc-silver, copper, gold and nickel-cobalt deposits in Australia.
Superior currently holds a number of exploration permits and exploration permit applications in northern
Queensland.
In northwest Queensland, exploration for Mount Isa style deposits over the last six years has resulted in
Superior holding a first-class portfolio of properties for these deposits. Superior has an expanding
portfolio of volcanogenic massive sulphide, porphyry copper-gold and gold properties in the Greenvale
area of north eastern Queensland with inferred resources defined for two properties.
Corporate Philosophy
Supe
mineral deposits and the Board maintains a strategy consistent with this aim.
and acquisition of significant
Superior targets areas with potential for larger high-grade deposits of copper, lead-zinc-silver and gold.
These include the large Mount Isa style projects in northwest Queensland and the more moderate but
high grade volcanogenic massive sulphide (VMS) deposits in northeast Queensland. The Company also
holds a developing portfolio of battery metals nickel and cobalt projects within its north west and north
east Queensland properties.
Superior has adopted a conceptual approach in its search for Mount Isa style deposits which identifies
permissive environments for these deposits and then explores these areas. Models, derived from the
existing large mineral deposits, are an integral part of this approach. Once a permissive environment is
identified, Superior uses advanced exploration methods (particularly geophysics) with modern computer
modelling of data to identify targets for further testing.
While a conceptual approach is also appropriate to a search for Proterozoic gold and VMS copper-gold
deposits, Superior has adopted the more traditional approach in this search of exploring around existing
indications of mineralisation.
part of the search for Mount Isa style deposits and drilling around and beneath existing mineralisation
part of the search for gold and copper-gold deposits.
Superior continues to utilise experienced explorers in its exploration as they offer the best chance for
discovery of resources.
Your Directors present their report on the consolidated entity (referred to in this Report as the Group)
consisting of Superior Resources Limited and the entities it controlled during the year ended 30 June
2019.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS
The following persons were Directors of the Company during the year and up to the date of this report:
P H Hwang
C A Fernicola
K J Harvey
(Managing Director)
(Chairman and Company Secretary)
(Non-executive Director)
PRINCIPAL ACTIVITIES
During the year the principal activity of the Group was exploration for base metals, copper-gold and
nickel-cobalt deposits in northern Queensland, Australia. There were no significant changes in the nature
during the year and no significant changes in activity are anticipated.
DIVIDENDS
There were no dividends paid to members during the financial year.
REVIEW OF OPERATIONS
The loss after tax for the year was $549,373 (2018: loss of $485,087).
activities during the full year period were focused on the following:
Nicholson Project (zinc-lead-silver)
the Company entered into an earn-in and joint venture agreement with South32
Group Operations Pty Ltd on 28 May 2019;
the Company as the operator, commenced exploration operations in accordance
first stage of commitments under the earn-in and joint venture
agreement;
Greenvale Project (VMS and porphyry copper, gold and nickel-cobalt)
a two-hole deep diamond drilling program totalling 1,102 metres was completed
during August 2018;
high grade copper mineralisation intersected in SBTRD006 of 18.7m @ 1.12%
copper (328.0m to 346.7m) was returned from assay results. A broad zone of
copper mineralisation intersected in SBTRD006 totalling 292m @ 0.22% copper
(148.0m to 440.0m);
new tenement EPM26751 Twelve Mile Creek
an addition to the Greenvale Project;
28 May 2019 as
Victor Project (zinc-lead-silver)
new tenement EPM26720 Victor Extended
;
Corporate
Commercial
the Company entered into a binding Heads of Agreement to sell its interest in the
Tick Hill Gold Project to Berkut Minerals Limited;
the sale transaction completed on 24 April 2019 with the Company receiving the
following consideration (excluding GST):
2,403,846 fully paid ordinary shares in Berkut Minerals Limited (name
changed to Carnaby Resources Limited) at a deemed value of $0.078 per
share; and
$33,911.20 cash consideration for project holding costs.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
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REVIEW OF OPERATIONS (continued)
NORTH WEST QUEENSLAND NICHOLSON PROJECT
The Nicholson Project (EPM15670 and EPM18203), located near the Walford Creek lead-zinc-silver-
copper deposit, is considered to have the potential to contain sediment-hosted lead-zinc-silver massive
sulphide deposits, similar to the Mount Isa and McArthur River deposits.
The Company entered into an earn-in and joint venture agreement (JVA) with South32 Group Operations
Pty Ltd on 28 May 2019 (South32) in respect of the Nicholson Project. Under the terms of the JVA,
South32 may earn an interest of up to 80% in the Project by satisfying the following requirements:
-
-
-
Stage 1: South32 must sole-fund an initial $2,000,000 or 4,000m of drilling (whichever comes
first) within the first 12 months of operations;
Stage 2: provided South32 completes Stage 1, it will have a right to elect to proceed to Stage 2
to earn a 70% interest in the Project by sole-funding an additional $4,000,000 on exploration
within a further four years; and
Stage 3: provided South32 completes Stage 2, it will have a right to earn an additional 10%
interest in the Project by sole-funding a feasibility study.
Superior will be the JV operator during Stages 1 and 2 of joint venture operations. Drilling of the first
diamond core hole commenced on 27 July 2019.
CORPORATE and COMMERCIAL
TICK HILL GOLD PROJECT
On 11 March 2019 the Company entered into a binding Heads of Agreement (HOA) with Carnaby
Resources Limited (formerly as Berkut Minerals Limited (BMT))
the Tick Hill Gold Project.
Under the HOA, subject to satisfaction of conditions precedent, the Company agreed to the sale of its
interest in the Exploration Farm-in and Joint Venture Agreement between the Company and Diatreme
Resources Limited (JVA
d a right to earn a 50% interest
The sale interest under the HOA was agreed between the Company and Diatreme to be a 25% beneficial
interest in the Tick Hill Gold Project.
The sale transaction completed on 24 April 2019 with the Company receiving the following consideration
(excluding GST):
-
-
2,403,846 fully paid ordinary shares in Berkut Minerals Limited at a deemed value of $0.078 per
share; and
$33,911.20 cash consideration for project holding costs.
Subsequent to completion of the transaction, BMT changed its name to Carnaby Resources Limited
(CNB). The minimum ASX-traded price of CNB shares on 12 March 2019 was $0.092 and $0.135 on
28 June 2019.
The CNB shares are not subject to any period of escrow.
34
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CASH CONSERVATION
ontinues to maintain the current cash conservation measures with respect to the
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There are no significant changes in the state of affairs of the Group during the financial year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Subsequent to balance date, the Group has raised $494,000 through the issue of 61,750,000 shares at
value of $0.008 per share, which includes $35,000 from the Directors which will be subject to
shareholders approval at the Annual General Meeting. 57,375,000 shares were issued on 15 August
2019.
Apart from the above, there are no matters or circumstances that have arisen since 30 June 2019 that
have significantly affected, or may significantly affect:
(a)
(b)
(c)
the results of those operations in future financial years, or
LIKELY DEVELOPMENTS AND EXPECTED RESULTS FROM OPERATIONS
Results from exploration are difficult to predict in advance so expected results are uncertain.
ENVIRONMENTAL REGULATION
The Group
commonwealth and state.
INFORMATION ON DIRECTORS
Peter Henry Hwang B.Sc(Hons), LLB, MAIG, MGSA, MQLS Managing director. Age 50
Experience and expertise
Originally a gold, base metals and diamond exploration geologist, Mr Hwang worked as a solicitor for
18 years in national and Queensland law firms specialising in resources, commercial and native title
law. He has extensive experience in advising on the development of mining and major infrastructure
projects as well as resource mergers and acquisitions. Mr Hwang is a member of the Australian
Government Attorney-
of the Government of Western Australia Native Title Taskforce on Mineral Tenement and Land Title
Applications.
Other current directorships
None.
Former directorships in last 3 years
None.
Special responsibilities
Managing Director.
Interests in shares and options
35,097,467 ordinary shares in Superior Resources Limited.
3,332,246 options over unissued ordinary shares in Superior Resources Limited.
35
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
INFORMATION ON DIRECTORS (continued)
Carlos Alberto Fernicola B.Com, FCA, F Fin FCIS FGIA Chairman. Age 57
Graduate Diploma Advanced Accounting, Graduate Diploma Applied Finance and Investments,
Graduate Diploma Corporate Governance and Graduate Certificate Financial Planning.
Experience and expertise
Mr Fernicola is the Principal of Carlos Fernicola & Co., Chartered Accountants. Mr Fernicola is a Fellow
of the Institute of Chartered Accountants in Australia, Fellow of the Governance Institute of Australia
and Fellow of the Financial Services Institute of Australia. He has over 30 years of experience in
accounting, taxation, audit and the financial services industry.
Other current directorships
None.
Former directorships in last 3 years
None.
Special responsibilities
Chairman and Company Secretary.
Member of the Audit Committee.
Interests in shares and options
35,624,999 ordinary shares in Superior Resources Limited.
3,562,499 options over unissued ordinary shares in Superior Resources Limited.
Kenneth James Harvey M.Sc, MAIG, MSEG, MGSA. Non-executive Director. Age 74
Experience and expertise
Mr Harvey has 49 years experience in mineral exploration, project evaluation, resource estimation and
exploration management.
Other current directorships
None.
Former directorships in last 3 years
None.
Special responsibilities
Member of the Audit Committee.
Interests in shares and options
31,193,040 ordinary shares in Superior Resources Limited.
3,119,304 options over unissued ordinary shares in Superior Resources Limited.
Company Secretary
The Company Secretary is Mr Carlos Alberto Fernicola B.Com, FCA, FFin FCIS FGIA. Graduate Diploma
Advanced Accounting, Graduate Diploma Applied Finance and Investments, Graduate Diploma
Corporate Governance and Graduate Certificate Financial Planning. Mr Fernicola was appointed to the
position of Company Secretary on 11 November 2010.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
MEETINGS OF DIRECTORS
and the numbers of meetings attended by each director were:
Directors held during the year ended 30 June 2019,
Board
Director
PH Hwang
CA Fernicola
KJ Harvey
Audit Committee
Director
CA Fernicola
KJ Harvey
Meetings
Eligible to attend
4
4
4
Meetings
attended
4
4
4
Meetings
eligible to attend
2
2
Meetings
attended
2
2
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
REMUNERATION REPORT (AUDITED)
The Directors are pleased to present your Group 2019 remuneration report which sets out remuneration
-executive directors, executive directors, and other key
management personnel.
The report contains the following sections:
(a) Directors and key management personnel disclosed in this report
(b) Remuneration governance
(c) Use of remuneration consultants
(d) Executive remuneration policy and framework
(e) Relationship between remuneration an
(f) Non-executive director remuneration policy
(g)
(h) Details of remuneration
(i) Service agreements
(j) Details of share-based compensation and bonuses
(k) Equity instruments held by key management personnel
(l) Loans to key management personnel
(m) Other transactions with key management personnel
2018 Annual General Meeting
(a)
Directors and key management personnel disclosed in this report
Non-executive and executive directors (see pages 4 to 5 for details about each director)
PH Hwang
CA Fernicola
KJ Harvey
Other key management personnel
Name
CA Fernicola
(b)
Remuneration governance
The board is responsible for:
Position
Company Secretary
the over-arching executive remuneration framework
operation of the incentive plans which apply to the executive team, including key performance
indicators and performance hurdles
remuneration levels of executive directors and other key management personnel, and
non-executive directors fees
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The objective is to ensure that remuneration policies and structures are fair and competitive and aligned
with the long-term interests of the Group.
Use of remuneration consultants
The Group has not engaged the services of any remuneration consultants during the current or prior
r
o
financial years. F
(c)
38
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
REMUNERATION REPORT (AUDITED) (continued)
(d)
Executive remuneration policy and framework
total remuneration.
The combination of base pay and superannuation make up the executive
Base pay for the executive directors is reviewed annually to ensure the executive pay is competitive
with the market. The board ensures that executive reward satisfies the following key criteria for good
reward governance practices:
competitiveness and reasonableness
acceptability to shareholders
transparency
capital management
Long-term incentives
Long-term incentives are provided to executive directors by obtaining approval at a general meeting of
shareholders. Any issue of options to executive directors is designed to focus executives on delivering
long-term shareholder returns.
(e)
There is no direct link between remuneration, company performance and shareholder wealth. The
Group
ocus on the objective of delivery of long term shareholder returns.
(f)
Non-executive director remuneration policy
Fees and payments to non-executive directors reflect the demands which are made on, and the
responsibilities of, the directors. Non-execut
the Board.
Non-
periodically recommended for approval by shareholders. The maximum currently stands at $250,000 in
aggregate plus statutory superannuation.
(g)
Voting and com
2018 Annual General Meeting
The 2018 remuneration report was passed by a show of hands and had less than 25% proxy votes cast
against it. The company did not receive any feedback at the AGM or throughout the year on its
remuneration practices.
(h)
Details of remuneration
The following tables show details of the remuneration received by the directors and the key management
personnel of the Group for the current and previous financial year.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
REMUNERATION REPORT (AUDITED) (continued)
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2019
Name
Non-executive directors
CA Fernicola
KJ Harvey
Other key management
personnel
CA Fernicola (Company
Secretary)
Sub-total non-executive
directors and other key
management personnel
Executive directors
PH Hwang - Managing
Director
Totals
2018
Name
Non-executive directors
CA Fernicola
KJ Harvey
Other key management
personnel
CA Fernicola (Company
Secretary)
Sub-total non-executive
directors and other key
management personnel
Executive directors
PH Hwang - Managing
Director
Short-term
benefits
Post-
employment
benefits
Share-
based
payments
Cash salary
and fees
$
Superannuation
$
Options
$
24,000
35,616
-
3,384
24,000
-
83,616
3,384
211,000
20,045
294,616
23,429
-
-
-
-
-
-
Short-term
benefits
Post-
employment
benefits
Share-
based
payments
Cash salary
and fees
$
Superannuation
$
Options
$
24,000
39,726
-
3,774
24,000
-
87,726
3,774
211,000
20,045
-
-
-
-
-
-
Total
$
24,000
39,000
24,000
87,000
231,045
318,045
Total
$
24,000
43,500
24,000
91,500
231,045
322,545
Totals
298,726
23,819
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
REMUNERATION REPORT (AUDITED) (continued)
(i)
Service agreements
Remuneration and other terms of employment of the Managing Director are formalised in an agreement.
The major provisions of the agreement relating to remuneration are set out below.
PH Hwang, Managing Director
indefinite commencing 22 April 2013.
Term of employment agreement
Base salary, inclusive of superannuation, for the year ended 30 June 2019 of $231,045, to be
reviewed at least annually by the Board.
Payment of a termination benefit on early termination by the company, other than for gross
misconduct, equal to six months remuneration.
Agreement may be terminated by employee giving six
in writing.
(j)
Details of share based compensation and bonuses
There have been no options granted affecting remuneration in the current or a future reporting period.
(k)
Equity instruments held by key management personnel
The tables below show the number of shares and options in the company that were held during the
financial year by key management personnel of the Group, including their close family members and
entities related to them.
Ordinary Shares
Balance at the
start of the
year
Received on
exercising
options
Name
Directors of Superior Resources Limited
PH Hwang
CA Fernicola
KJ Harvey
35,097,467
35,624,999
31,193,040
-
-
-
Options Over Unissued Ordinary Shares
Balance at the
start of the
year
Options
Exercised
Name
Directors of Superior Resources Limited
PH Hwang
CA Fernicola
KJ Harvey
7,759,746
7,312,499
3,119,304
-
-
-
All options are vested and exercisable.
(l)
Loans to key management personnel
Net purchased
/ (sold)
Other changes Balance at the
end of the year
-
-
-
-
-
-
35,097,467
35,624,999
31,193,040
Net purchased
/ (sold)
Other changes Balance at the
end of the year
-
-
-
(4,427,500)
(3,750,000)
-
3,332,246
3,562,499
3,119,304
There were no loans to key management personnel during the financial period.
(m)
Other transactions with key management personnel and/or their related parties
There were no other transactions with key management personnel or their related parties.
End of Remuneration Report
41
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
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SHARES UNDER OPTION
During the year, 10,000,000 options were issued to the lead manager to the share placement and right
issue undertaken in January to March 2018. These options expired on 31 August 2019.
There were no options outstanding at the date of this report.
During the year ended 30 June 2019, and since year end, there were no shares issued on the exercise
of options granted.
INSURANCE OF OFFICERS
During the financial year the Group paid a premium of $27,250 to insure the Directors and Secretary of
the company.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that
may be brought against the officers in their capacity as officers and any other payments arising from
liabilities incurred by the officers in connection with such proceedings. This does not include such
liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by
the officers of their position or of information to gain advantage for themselves or someone else or to
cause detriment to the company. It is not possible to apportion the premium between amounts relating
to the insurance against legal costs and those relating to other liabilities.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to any Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company or to 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 part of those proceedings.
No proceedings have been brought or intervened in or on behalf of the Company with leave of the Court
under section 237 of the Corporations Act 2001.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit duties
Details of amounts paid or payable to the auditor for audit and non-audit services provided during the
year are outlined in Note 25 to the financial statements.
The Board of Directors has considered the position and, in accordance with the advice received from the
audit committee is satisfied that the provision of the non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied
that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
all non-audit services have been reviewed by the audit committee to ensure they do not impact
the impartiality and objectivity of the auditor, and
none of the services undermine the general principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional Accountants.
42
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
Act 2001 is set out on page 13.
AUDITOR
Corporations
PKF Brisbane Audit continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of Directors.
CA Fernicola
Chairman
Brisbane, 26th day of September 2019
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UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF SUPERIOR RESOURCES LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2019, there
have been no contraventions of:
(a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
PKF BRISBANE AUDIT
LIAM MURPHY
PARTNER
DATED THIS 26TH DAY OF SEPTEMBER 2019
BRISBANE
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CORPORATE GOVERNANCE
Corporate Governance practices that form the basis of a comprehensive system of control and
accountability for the administration of the Company have been adopted. The Board is committed to
administering the policies and procedures with openness and integrity, pursuing the true spirit of
corporate governance commensurat
The Company has reviewed its corporate governance practices against the Corporate Governance
Principles and Recommendations (3rd edition) published by the ASX Corporate Governance Council.
A description of the
corporate governance statement. This statement is available on the C
viewed at www.superiorresources.com.au.
current corporate governance practices is set out in the
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2019
Other income
8
712
678
Note
2019
$
2018
$
Accounting and audit fees
Administration expenses
Depreciation and amortisation
Impairment of exploration expenditure
Loss on disposal of Tick Hill tenement
Office rent and outgoings
Tenement expenditure written off
Loss before income tax
Income tax (expense) / benefit
Loss after tax for the year from continuing
operations attributable to owners of Superior
Resources Limited
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share
(42,980)
(293,886)
(3,469)
-
(226,282)
(14,076)
(10,377)
(590,358)
40,985
(36,353)
(385,543)
(3,422)
(22,939)
-
(14,150)
(29,133)
(490,862)
5,775
(549,373)
(485,087)
Cents
(0.08)
(0.08)
Cents
(0.08)
(0.08)
14
14
14
9
30
30
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The accompanying notes form part of these financial statements.
46
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
AS AT 30 JUNE 2019
Loss for the year from continuing operations
attributable to owners of Superior Resources Limited
(549,373)
(485,087)
Note
2019
$
2018
$
Items that will not be reclassified subsequently to profit
or loss:
Fair value gains on financial assets at fair value through
other comprehensive income, net of tax
Other comprehensive income for the year, net of tax
Total comprehensive income/(loss) for the year, net
of tax, attributable to owners of Superior Resources
Limited
135,112
135,112
15,225
15,225
(414,261)
(469,862)
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The accompanying notes form part of these financial statements.
47
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
Note
2019
$
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ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Assets classified as held for sale
Total Current Assets
Non-Current Assets
Financial assets
Plant and equipment
Exploration expenditure
Other
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Payables
Total Current Liabilities
Non-Current Liabilities
Payables
Liabilities for restrictions over assets
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
10
11
12
14
12
13
14
16
17
17
22
19
20
21
2018
$
Restated
886,368
89,529
119,000
375,000
103,745
85,802
17,929
-
207,476
1,469,897
1,280,393
9,330
4,427,456
28,500
-
12,482
3,588,615
28,000
5,745,679
3,629,097
5,953,155
5,098,994
586,842
586,842
44,666
1,000,000
1,044,666
318,420
318,420
44,666
-
44,666
1,631,508
363,086
4,321,647
4,735,908
10,975,213
(3,095,913)
(3,557,653)
10,975,213
(3,231,025)
(3,008,280)
4,321,647
4,735,908
The accompanying notes form part of these financial statements.
48
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Balance at 1 July 2017
Loss for the year
Other comprehensive income /
(loss)
Total comprehensive income
for the year
Transactions with owners in
their capacity as owners:
Contributions of equity, net of
transaction costs
Balance at 30 June 2018
(previously reported)
Retrospective adjustment upon
change in accounting policy
(AASB 9) (Note 3a)
Balance at 30 June 2018
(restated)
Loss for the year
Other comprehensive income /
(loss)
Total comprehensive income
for the year
Transactions with owners in
their capacity as owners:
Contributions of equity, net of
transaction costs
Issued capital
$
9,031,677
Reserves
$
Accumulated
losses
$
Total
$
50,750
(5,820,193)
3,262,234
-
-
-
(485,087)
(485,087)
15,225
-
15,225
15,225
(485,087)
(469,862)
1,943,536
-
-
1,943,536
10,975,213
65,975
(6,305,280)
4,735,908
-
(3,297,000)
3,297,000
-
10,975,213
(3,231,025)
(3,008,280)
4,735,908
-
-
-
(549,373)
(549,373)
135,112
-
135,112
10,975,213
135,112
(549,373)
(414,261)
-
-
-
-
Balance at 30 June 2019
10,975,213
(3,095,913)
(3,557,653)
4,321,647
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The accompanying notes form part of these financial statements
49
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Note
2019
$
2018
$
Cash flows from operating activities
Receipts from customers (GST inclusive)
Payments to suppliers and employees (GST inclusive)
Interest received
29,878
(173,209)
401
40,373
(550,945)
678
Net cash inflow (outflow) from operating activities
29
(142,930)
(509,894)
Cash flows from investing activities
Payments for exploration expenditure
Proceeds of disposal of investments
Proceeds of disposal of plant and equipment
Payments for plant and equipment
Refunds (payments) of security deposits
(800,918)
162,042
1,888
(2,205)
(500)
(825,994)
-
-
(2,880)
(500)
Net cash inflow (outflow) from investing activities
(639,693)
(829,374)
Cash flows from financing activities
Proceeds on issue of shares
Payment of capital raising costs
Net cash inflow (outflow) from financing activities
-
-
-
Net increase (decrease) in cash held
Cash at beginning of financial year
Cash at the end of financial year
(782,623)
886,368
103,745
10
1,864,198
(83,569)
1,780,629
441,361
445,007
886,368
Restricted cash
Restricted cash is excluded from cash and cash equivalents for the consolidated statement of cash
flows.
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The accompanying notes form part of these financial statements
50
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 30 JUNE 2019
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1. General Information
Superior Resources Limited (the Company) is a company limited by shares, incorporated and domiciled
in Australia.
shares are listed on the Australian Securities Exchange.
The registered office and principle place of business of the Company is:
Unit 8, 61 Holdsworth Street
Coorparoo QLD 4151
Ph 07 3847 2887
The financial statements are for the Group consisting of Superior Resources Limited and its subsidiaries
(the consolidated entity or the Group).
2. Significant Accounting Policies
(a)
Statement of compliance
These financial statements are general purpose financial statements which have been prepared in
accordance with the Corporations Act 2001, Australian Accounting Standards and Interpretations of the
Australian Accounting Standard Board and in compliance with International Financial Reporting
The Group is a for-profit
entity for financial reporting purposes under Australian Accounting Standards. Material accounting
policies adopted in the preparation of these financial statements are presented below and have been
consistently applied unless stated otherwise.
The financial statements were authorised for issue by the Directors on 26th September 2019.
(b)
Basis of preparation
Except for cash flow information, the financial statements have been prepared on an accrual basis and
are based on historical costs, modified, where applicable, by the measurement at fair value of selected
non-current assets, financial assets and financial liabilities.
(c)
Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the Parent
(Superior Resources Limited) and all of the subsidiaries (including any structured entities). Subsidiaries
are entities the Parent controls. The Parent controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. A list of the subsidiaries or controlled operations is provided in Note 31b.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of
the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised
gains or losses on transactions between Group entities are fully eliminated on consolidation. Accounting
policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity
of the accounting policies adopted by the Group.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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2. Significant Accounting Policies (continued)
(c)
Principles of consolidation (continued)
The acquisition method of accounting is used to account for business combination by the Group (refer to
Note 2(o)).
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated income statement and statement of comprehensive income, statement of changes in equity
and balance sheet respectively.
(d)
Revenue recognition
No impact is shown for AASB 15 as the directors, after applying the five-step model per AASB 15,
assessed that there is no material difference in the result of the Group between applying AASB 118 and
AASB 15.
Revenue is recognised to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for the goods or
services. Revenue is recognised when the performance obligations of a contract are satisfied.
Interest revenue is recognised using the effective interest rate method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of
the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is
established.
All revenue is stated net of the amount of goods and services tax (GST).
(e)
Income Tax
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 to unused tax losses.
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 financial statements.
However, the deferred income tax is 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 substantially enacted by the reporting date and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.
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 utilize those temporary differences and losses.
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 assets and settle the liability simultaneously.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2. Significant Accounting Policies (continued)
(e)
Income Tax (continued)
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.
(f)
Cash and cash equivalents
For the consolidated statement of cash flows presentation purposes, cash and cash equivalents includes
cash on hand and deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Restricted cash
Restricted cash represents cash and cash equivalents where the Group operates the bank accounts and
holds cash on behalf of external parties. These funds relate specifically to moneys held with banks and
registered in the name of the Group. However these funds are not legal designated trust accounts.
Restricted cash is excluded from cash and cash equivalents for the consolidated statement of cash flows
presentation.
(g)
Financial instruments
Initial Recognition and Measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the
Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction
costs, except where the instrument is classified "at fair value through profit or loss", in which case
transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active
market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain
significant financing component or if the practical expedient was applied as specified in paragraph 63 of
AASB 15: Revenue from Contracts with Customers.
Classification and Subsequent Measurement
Financial assets
Financial assets are subsequently measured at:
amortised cost;
fair value through other comprehensive income; or
fair value through profit and loss.
Measurement is on the basis of the two primary criteria, being:
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding on specified dates.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2. Significant Accounting Policies (continued)
(g)
Financial instruments (continued)
Classification and Subsequent Measurement (continued)
A financial asset that meets the following conditions is subsequently measured at fair value through other
comprehensive income:
the contractual terms within the financial asset give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding on specified dates;
the business model for managing the financial assets comprises both contractual cash flows
collection and the selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and
fair value through other comprehensive income are subsequently measured at fair value through profit
or loss.
Financial liabilities
Financial liabilities are subsequently measured at:
amortised cost; or
fair value through profit and loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
a contingent consideration of an acquirer in a business combination to which AASB 3 Business
Combinations applies;
held for trading; or
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest
method.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent
consideration recognised by an acquirer in a business combination to which AASB 3 applies, the Group
made an irrevocable election to measure any subsequent changes in fair value of the equity instruments
in other comprehensive income, while the dividend revenue received on underlying equity instruments
investment will still be recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement
date in accordance with the
accounting policy.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from
the statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially
modified terms, or a substantial modification to the terms of a financial liability, is treated as an
extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit
or loss.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2. Significant Accounting Policies (continued)
(g)
Financial instruments (continued)
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the
asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
Derecognition (continued)
All the following criteria need to be satisfied for derecognition of financial assets:
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset (ie no practical ability to make unilateral decision to sell
the asset to a third party).
Impairment
The Group recognises a loss allowance for expected credit losses on:
financial assets that are measured at amortised cost or fair value through other comprehensive
income;
lease receivables;
contract assets (eg amount due from customers under construction contracts);
loan commitments that are not measured at fair value through profit or loss; and
financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
financial assets measured at fair value through profit or loss; or
equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a
financial instrument. A credit loss is the difference between all contractual cash flows that are due and
all cash flows expected to be received, all discounted at the original effective interest rate of the financial
instrument.
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain
or loss in the statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating
to that asset.
Assets measured at fair value through other comprehensive income are recognised at fair value, with
changes in fair value recognised in other comprehensive income. Amounts in relation to change in credit
risk are transferred from other comprehensive income to profit or loss at every reporting period.
For financial assets that are unrecognised (eg loan commitments yet to be drawn, financial guarantees),
a provision for loss allowance is created in the statement of financial position to recognise the loss
allowance.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2. Significant Accounting Policies (continued)
(h)
Plant and equipment
Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values,
over their estimated useful lives, as follows:
Equipment / Software 3 5 years
The asset s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance
date.
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 income statement. When revalued assets are sold, it is company policy to transfer the
amounts included in other reserves in respect of those assets to retained earnings.
(i)
Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of
the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
(j)
Exploration expenditure
Expenditure is accumulated separately for each area of interest until such time as the area is abandoned
or sold. The realisation of the value of the expenditure carried forward depends on any commercial
results that may be obtained through successful development and exploitation of the area of interest or
alternatively by its sale. If an area of interest is abandoned or is considered to be of no further commercial
interest the accumulated exploration costs relating to the area are written off against income in the year
of abandonment. Some exploration expenditure may also be written off where areas of interest are partly
relinquished and in cases where uncertainty exists as to the value, provisions for possible diminution in
value are established.
When production commences, the accumulated costs for the relevant area of interest are amortised over
the life of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
capitalise costs in relation to that area.
(k)
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
(l)
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the financial year but not distributed at balance
date.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2. Significant Accounting Policies (continued)
(m)
Earnings per share
(i)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the
Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
(ii)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary shares.
(n)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included with other receivables
or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing
or financing activities which are recoverable from, or payable to the taxation authority, are presented as
operating cash flow.
(o)
Business combinations
The acquisition method of accounting is used to account for all business combinations, regardless of
whether equity instruments or other assets are acquired. The consideration transferred for the
acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and
the equity interests issued by the Group. The consideration transferred also includes the fair value of
any asset or liability resulting from a contingent consideration arrangement and the fair value of any pre-
existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business combination are, with
limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-
acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or
at the non-
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree
over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are
less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of
all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain
purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the
incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit
or loss.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2. Significant Accounting Policies (continued)
(p)
(i)
Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick
leave expected to be settled within 12 months after the end of the period in which the employees render
the related serv
and are measured at the amounts expected to be paid when the liabilities are settled. The liability for
annual leave is recognised in the provision for employee benefits. All other short-term employee benefit
obligations are presented as payables.
(ii)
Other long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within 12 months
after the end of the period in which the employees render the related service is recognised in the provision
for employee benefits and measured as the present value of expected future payments to be made in
respect of services provided by employees up to the end of the reporting period using the projected unit
credit method. Consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using market yields at the
end of the reporting period on government bonds with terms and currencies that match, as closely as
possible, the estimated future cash outflows.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of
when the actual settlement is expected to occur.
(q)
Parent entity financial information
The financial information for the parent entity, Superior Resources Limited, disclosed in note 31 has been
prepared on the same basis as the consolidated financial statements.
(r)
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes
in presentation for the current financial year.
Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or
reclassifies items in its financial statements, an additional (third) statement of financial position as at the
beginning of the preceding period in addition to the minimum comparative financial statements is
presented.
(s)
Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability
in an orderly (ie unforced) transaction between independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is
used to determine fair value. Adjustments to market values may be made having regard to the
characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded
in an active market are determined using one or more valuation techniques. These valuation techniques
maximise, to the extent possible, the use of observable market data.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
2. Significant Accounting Policies (continued)
(s)
Fair Value of Assets and Liabilities (continued)
To the extent possible, market information is extracted from either the principal market for the asset or
liability (ie the market with the greatest volume and level of activity for the asset or liability) or, in the
absence of such a market, the most advantageous market available to the entity at the end of the
reporting period (ie the market that maximises the receipts from the sale of the asset or minimises the
payments made to transfer the liability, after taking into account transaction costs and transport costs).
For non-
to use the asset in its highest and best use or to sell it to another market participant that would use the
asset in its highest and best use.
-based
payment arrangements) may be valued, where there is no observable market price in relation to the
transfer of such financial instruments, by reference to observable market information where such
instruments are held as assets. Where this information is not available, other valuation techniques are
adopted and, where significant, are detailed in the respective note to the financial statements.
(t)
Non-current Assets Held for Sale
Non-current assets are classified as held for sale and generally measured at the lower of carrying amount
and fair value less costs to sell, where the carrying amount will be recovered principally through sale as
opposed to continued use.
the sale is expected to occur within one year from the date of classification; and active marketing of the
asset has commenced. Such assets are classified as current assets.
Impairment losses are recognised for any initial or subsequent write-down of an asset classified as held
for sale to fair value less costs to sell. Any reversal of impairment recognised on classification as held
for sale or prior to such classification is recognised as a gain in profit or loss in the period in which it
occurs.
(u)
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset
may be impaired. The assessment will include the consideration of external and internal sources of
information including dividends received from subsidiaries, associates or joint ventures deemed to be
out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset
by comparing the recoverable amount of the asset, being the higher of the as
over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a
revalued amount in accordance with another Standard (eg in accordance with the revaluation model in
AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a
revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
59
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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2. Significant Accounting Policies (continued)
(u)
Impairment of Assets (continued)
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible
assets not yet available for use.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss
is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in
which case the reversal of the impairment loss is treated as a revaluation increase.
(v)
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will result and that outflow can be
reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the
end of the reporting period.
3. New and Amended Accounting Standards
(a) New and Amended Accounting Policies Adopted by the Group
The Group has implemented two new Accounting Standards that have come into effect, which is included
in the results.
Initial application of AASB 9: Financial Instruments
The Group has adopted AASB 9: Financial Instruments with an initial application date of 1 July 2018. As
a result, the Group has changed its financial instruments accounting policies. Refer to Note 2(g) for
details.
Considering the initial application of AASB 9 during the financial period, financial statements line items
have been affected for the current and prior periods. The following tables summarise the adjustments
made to the affected financial statements line items.
As at 30 June 2018
Previously
reported
$
AASB 9
adjustments
$
As restated
$
65,975
(6,305,280)
(3,297,000)
3,297,000
(3,231,025)
(3,008,280)
Equity
Reserves
Accumulated losses
60
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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3. New and Amended Accounting Standards
(a) New and Amended Accounting Policies Adopted by the Group (continued)
AASB 9 requires retrospective application with some exceptions (ie when applying the effective interest
method, impairment measurement requirements, and hedge accounting in terms of the Standard).
There were no financial assets/liabilities which the Group had previously designated as fair value through
profit or loss under AASB 139 that were subject to reclassification/elected reclassification upon the
application of AASB 9: Financial Instruments. There were no financial assets/liabilities which the Group
has elected to designate as at fair value through profit or loss at the date of initial application of AASB 9.
The Group has applied AASB 9: Financial Instruments (as revised in July 2014) and the related
consequential amendments to other Standards. New requirements have been introduced for the
classification and measurement of financial assets and financial liabilities, as well as for impairment and
general hedge accounting.
The date of initial application was 1 July 2018. The Group has applied AASB 9 to instruments that have
not been derecognised as at 1 July 2018 and has not applied AASB 9 to instruments that have already
been derecognised as at 1 July 2018. Comparative amounts in relation to instruments that have not been
derecognised as at 1 July 2018 have been restated where appropriate.
Financial assets in terms of AASB 9 need to be measured subsequently at either amortised cost or fair
-
-
-
debt investments that are held within a business model whose goal is to collect the contractual
cash flows, and that have contractual cash flows that are solely payments of principal and interest
on the principal amount outstanding, are subsequently measured at amortised cost;
debt investments that are held within a business model whose goal is both to collect contractual
cash flows and to sell it, and that have contractual cash flows that are purely payments of
principal and interest on the principal amount outstanding, are subsequently measured at fair
value through other comprehensive income; and
all other debt investments and equity investments are measured at fair value through profit or
loss.
Despite the issues mentioned, the Group may make the following irrevocable elections at initial
recognition of a financial asset:
-
-
The Group may choose to present in other comprehensive income subsequent changes in the
fair value of an equity investment that is not held for trading and is not a contingent consideration
in a business combination.
The Group may choose to present a debt investment that meets the amortised cost or fair value
through other comprehensive income criteria as measured at fair value through profit or loss if
this choice significantly reduces an accounting mismatch
When an equity investment at fair value through other comprehensive income has a gain or loss
previously recognised in other comprehensive income, it is not reclassified to profit or loss. However,
when a debt investment at fair value through other comprehensive income is derecognised, the gain or
loss recognised in other comprehensive income is reclassified from equity to profit or loss as a
reclassification adjustment.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
3. New and Amended Accounting Standards (continued)
(a) New and Amended Accounting Policies Adopted by the Group (continued)
The directors of the Group determined the existing financial assets as at 1 July 2018 based on the facts
and circumstances that were present, and determined that the initial application of AASB 9 had the
following effect:
The Group's investments in equity instruments not held for trading that were previously
classified as available-for-sale financial assets and were measured at fair value have been
designated as at fair value through other comprehensive income. The movement in fair value
on these equity instruments is accumulated in the financial assets reserve.
Financial assets as held-to-maturity and loans and receivables that were measured at
amortised cost continue to be measured at amortised cost under AASB 9, as they are held to
collect contractual cash flows and these cash flows consist solely of payments of principal and
interest on the principal amount outstanding.
Impairment
As per AASB 9, an expected credit loss model is applied, not an incurred credit loss model as per the
previous Standard applicable (AASB 139). To reflect changes in credit risk, this expected credit loss
model requires the Group to account for expected credit loss since initial recognition
AASB 9 also determines that a loss allowance for expected credit loss be recognised on debt investments
subsequently measured at amortised cost or at fair value through other comprehensive income, lease
receivables, contract assets, loan commitments and financial guarantee contracts as the impairment
provision would apply to them.
If the credit risk on a financial instrument has not shown significant change since initial recognition, an
expected credit loss amount equal to 12-month expected credit loss is used. However, a loss allowance
is recognised at an amount equal to the lifetime expected credit loss if the credit risk on that financial
instrument has increased significantly since initial recognition, or if the instrument is an acquired credit-
impaired financial asset.
A simple approach is followed in relation to trade receivables, as the loss allowance is measured at
lifetime expected credit loss.
The Group reviewed and assessed the existing financial assets on 1 July 2018. The assessment was
made to test the impairment of these financial assets using reasonable and supportable information that
is available to determine the credit risk of the respective items at the date they were initially recognised,
and to compare that to the credit risk as at 1 July 2017 and 1 July 2018. The assessment was performed
without undue cost or effort, in accordance with AASB 9.
Classification and measurement of financial liabilities
AASB 9 determines that the measurement of financial liabilities and also the classification relate to
changes in the fair value designated as at fair value through profit or loss attributable to changes in the
credit risk.
AASB 9 further states that the movement in the fair value of financial liabilities that is attributable to
changes in the credit risk of that liability needs to be shown in other comprehensive income, unless the
effect of the recognition constitutes accounting mismatch in profit or loss. Changes in fair value in relation
to the financial liability's credit risk are transferred to retained earnings when the financial liability is
derecognised and not reclassified through profit or loss. AASB 139 requires the fair value amount of the
change of the financial liability designated as at fair value through profit or loss to be presented in profit
or loss.
The application of the AASB 9 hedge accounting requirements has had no impact on the results and
financial position of the Group for the current year.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
3. New and Amended Accounting Standards (continued)
(a) New and Amended Accounting Policies Adopted by the Group (continued)
AASB 15: Revenue from Contracts with Customers
AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue
is recognised. It replaced AASB 118 Revenue and related interpretations. The consolidated entity has
adopted AASB 15 using the cumulative effect method, with the effect of initially applying this standard
recognised at the date of initial application (i.e. 1 July 2018). Accordingly, the information presented for
comparative periods has not been restated.
Under AASB 15, revenue is recognised when a customer obtains control of the goods or services.
Determining the timing of the transfer of control
at a point in time or over time
requires judgement.
(i)
(ii)
(i)
Financial impact on adoption
Initial application of the new revenue standard had an immaterial impact on the opening
balance of the consolidated entity in the current reporting period. As such, no adjustment
was made to opening balances to account for the change in accounting policy.
Changes in revenue recognition policy
No impact is shown for AASB 15 as the directors, after applying the five-step model per
AASB 15, assessed that there is no material difference in the result of the Group between
applying AASB 118 and AASB 15.
Transition
As the adoption of AASB 15 had an immaterial impact on financial information of the
Group, changes in accounting policies were applied prospectively with no adjustments
made to opening balances as at 1 July 2018.
The consolidated entity has adopted all of the new, revised or amending Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the
current reporting period. Any new, revised or amending Accounting Standards or Interpretations that
are not yet mandatory have not been early adopted.
(b) Standards and Interpretations in issue not yet adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the consolidated entity for the annual report year
ended 30 June 2019.
AASB 16 Leases
AASB 16 was issued in February 2016. It will result in almost all leases being recognised on the balance
sheet, as the distinction between operating and finance leases is removed. Under the new standard, an
asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only
exceptions are short-term and low-value leases. The accounting for lessors will not significantly change.
AASB 16 will not apply to leases to explore for or use minerals, oil, natural gas and similar non-
regenerative resources.
Management has assessed the effects of applying the new standard and as the Company does not
currently have any long-term leases, there will be no impact.
There are no other standards that are not yet effective and that are expected to have a material impact
on the consolidated entity in the current or future reporting periods and on foreseeable future
transactions.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
4. Financial risk management
The Group
unpredictability of financial markets.
rse effects due to the
The Group does not actively engage in the trading of financial assets for speculative purposes nor does
it write options. The most significant financial risks to which the Group is exposed are credit risk, liquidity
risk, market risk and cash flow interest rate risk.
The Group holds the following financial asset and liabilities:
Financial assets
Cash and cash equivalents
Financial assets
Trade and other receivables
Available for sale financial assets
Financial assets at fair value through other comprehensive
income
restricted cash
Financial liabilities
Trade and other payables
2019
$
2018
$
103,745
943,855
85,802
-
886,368
-
89,529
119,000
354,467
1,487,869
-
1,094,897
631,508
631,508
363,086
363,086
Risk management is carried out by the Group
been approved by the Board of Directors. The Managing Director has been delegated the authority for
designing and implementing processes which follow the objectives and policies.
The Board receives monthly reports which provide details of the effectiveness of the processes and
policies in place.
Credit risk
Credit risk is the risk of loss from a counter-party failing to meet its financial obligations to the Company.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognized financial assets is the carrying amount of those assets, net of any provision for
doubtful debts, as disclosed in the balance sheet and notes to the financial statements.
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions. For
bank and financial institutions, only independently rated par
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference
to external credit ratings (if available).
Cash at bank and short-term bank deposits
Financial assets
restricted cash
2019
$
2018
$
103,745
943,855
1,047,600
886,368
-
886,368
Other than cash and cash equivalents, the most significant other financial assets are trade and other
receivables. The Group does not have any material credit risk exposure to any single debtor or Group
of debtors under financial instruments entered into by the Group. There were no past due debts at
balance date requiring consideration of impairment provisions.
64
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
4. Financial risk management (continued)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to meet
obligations when due. At the end of the reporting period the Group held deposits at call of $4 (2018: $4)
that are expected to readily generate cash inflows for managing liquidity risk.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows. No finance
facilities were available to the Group at the end of the reporting period.
Maturities of financial liabilities
The table below analyses the Group
Contractual
maturities of
financial liabilities
At 30 June 2019
Trade and other
payables
At 30 June 2018
Trade and other
payables
Less
than 6
months
$
6 12
months
$
Between
1 and 2
years
$
Between
2 and 5
years
$
Over 5
years
$
Total
contractual
cash flows
$
Carrying
amount
$
541,626
45,216
44,666
541,626
45,216
44,666
283,876
34,544
44,666
283,876
34,544
44,666
-
-
-
-
-
-
-
-
631,508
631,508
631,508
631,508
363,086
363,086
363,086
363,086
Market risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group in
Deep Yellow Limited and Carnaby Resources Limited and classified on the statement of financial position
as available-for-sale financial assets. The Group is not exposed to commodity price risk.
The table below summaries the impact of increases/decreases in the Deep Yellow Limited and Carnaby
Resources Limited share price on the Group
equity. The analysis is based on the assumption that the share price had increased/decreased by 25%
(2018: 25%) from balance date fair value with all other variables held constant.
Impact on post-tax loss
2018
2019
$
$
Impact on reserves
2019
$
2018
$
+25%
-25%
+25%
-25%
+25%
-25%
+25%
-25%
1,233
(1,233)
8,181
(8,181)
3,250
(3,250)
21,569
(21,569)
23,137
(23,137)
-
-
60,998
(60,998)
-
-
Investment in
Deep Yellow
Limited
Investment in
Carnaby
Resources
Limited
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Cash flow and fair value interest rate risk
As the Group has no significant interest-bearing assets or borrowings, the Group
cash flows are not materially exposed to changes in market interest rates.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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4. Financial risk management (continued)
Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes. The net fair value of financial assets and financial liabilities
approximates their carrying values as disclosed in the consolidated statement of financial position and
notes to the financial statements.
5. Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the entity and that
are believed to be reasonable under the circumstances.
The Group has capitalised non-current exploration expenditure of $4,427,456 (2018: $3,588,615). This
amount includes costs directly associated with exploration. These costs are capitalised as an intangible
asset until assessment and/or drilling of the permit is complete and the results have been evaluated.
These costs include employee remuneration, materials, rig costs, delay rentals and payments to
contractors. The expenditure is carried forward until such a time as the asset moves into the
development phase, is abandoned or sold. Given exploration activities have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of recoverable resources and the
difficulty in forecasting cash flows to assess the fair value of exploration expenditure there is uncertainty
as to the carrying value of exploration expenditure. The ultimate recovery of the carrying value of
exploration expenditure is dependent upon the successful development and commercial exploitation or,
alternatively, sale of the interest in the tenements.
The Group undertakes a number of business activities through legal agreements with other parties. In
assessing the classification of these agreements for accounting purposes the Group must first assess
whether it has gained control, joint control or significant influence in the agreement. A joint arrangement
is an arrangement over which two or more parties have joint control. Joint control is the contractually
agreed sharing of control over an arrangement which exists only when the decisions about the relevant
activities (being those that significantly affect the returns of the arrangement) require the unanimous
consent of the parties sharing control. Judgement is required to determine when the Group has control,
which requires an assessment of the relevant activities and when the decisions in relation to those
activities require unanimous consent. The Group has determined that the relevant activities for its joint
arrangements relate to the operating and capital decisions of the arrangement, such as: the approval the
capital expenditure programme for each year, and appointing, remunerating and terminating the key
management personnel of, or service providers to, the joint arrangement. The considerations made in
determining joint control are similar to those necessary to determine control over subsidiaries.
Judgement is also required to classify a joint arrangement as either a joint operation or a joint venture.
Classifying the arrangement requires the Group to assess their rights and obligations arising from the
arrangement. This assessment often requires significant judgement, and a different conclusion on joint
control and also whether the arrangement is a Joint Operation or a Joint Venture, may materially
impact the accounting.
The Group has announced an Earn-in and Joint Venture Agreement with South32 Group Operations Pty
Ltd which is structured through an unincorporated arrangement in accordance with the terms of the Joint
Venture Agreement. In assessing the facts and circumstances relating to this arrangement the Group
assessed that the arrangement is currently in the earn-in stage and as such the Joint Venture has not
yet been formed. Therefore, the arrangement has been accounted for considering the individual rights
and obligations of transactions that have occurred under the agreement. This has resulted in restricted
assets and liabilities for restrictions over assets being recognised in accordance with policy Note 2(f) for
the amounts shown in Note 12 and Note 22.
66
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
6. Going concern principle
Notwithstanding that the Group incurred an operating loss after tax of $549,373 (2018: loss of $485,087)
these financial statements have been prepared on a going concern basis which assumes continuity of
normal business activities and the realisation of assets and the settlement of liabilities in the ordinary
course of business.
The ability of the consolidated entity to continue as a going concern is dependent upon one or more of
the following:
achieving sufficient future cash flows from operations to enable its obligations to be met;
the success of cost saving initiatives, which include entering into Joint Venture arrangements
and reducing tenement areas, so as to reduce the carrying and expenditure costs for tenements;
and
obtaining additional funding from capital raising activities.
The Directors acknowledge that to contin
projects, the budgeted cash flows from operating and investing activities for the future will necessitate
further capital raisings. In addition, the Directors have agreed to retain 50% of their salary payments in
the interests of facilitating the consolidated entity to continue as a going concern.
At the date of this report and having considered the above factors, the Directors are confident that the
Group will be able to continue as a going concern and will be able to pay its debts as and when they fall
due and payable.
In the event that the Group is unable to satisfy future funding requirements, a material uncertainty exists
that casts
a going concern with the result that the
Group may be required to realise its assets at amounts different from those currently recognised, settle
liabilities other than in the ordinary course of business and make provisions for costs which may arise as
a result of cessation or curtailment of normal business operations.
7. Segment information
The Group operates solely within one segment, being the mineral exploration industry in Australia.
8. Other income
Interest
Insurance claim
2019
$
2018
$
401
311
712
678
-
678
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
9. Income tax
(a)
Numerical reconciliation of income tax expense / (benefit)
to prima facie tax payable
2019
$
2018
$
Loss from continuing operations before income tax expense
(590,358)
(490,862)
Tax at the Australian tax rate of 27.5% (2018: 27.5%)
Tax effect of non-deductible impairment loss
Recognition of deferred tax assets not previously recognised
Adjustment to deferred tax assets and liabilities for tax losses and
temporary differences not recognised
Income tax expense / (benefit)
(162,348)
26,963
-
94,400
(40,985)
(134,987)
6,308
(5,775)
128,679
(5,775)
(b)
Tax adjustment relating to items of other comprehensive
income
Financial assets at fair value through other comprehensive income
fair value adjustment
(c)
Tax losses
(40,985)
(5,775)
Unused tax losses for which no deferred tax asset has been
recognised
Potential tax benefit at 27.5% (Note 15)
7,612,563
2,093,455
7,249,931
1,993,731
(d)
Franking credits
Franking credits available for use in subsequent financial years
based on a tax rate of 27.5%
251,146
251,146
2019
$
2018
$
10. Cash and cash equivalents
Cash at bank and on hand
103,745
886,368
11. Trade and other receivables
CURRENT
Other receivables
Prepayments
-
85,802
85,802
25,604
63,925
89,529
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
12. Financial assets
CURRENT
Deep Yellow Limited1
Investments in listed equity securities designed at fair value
through other comprehensive income
NON-CURRENT
Carnaby Resources Limited2
Investments in listed equity securities designed at fair value
through other comprehensive income
Restricted Cash
Prepaid contributions from earn-in participant3
Total financial assets
17,929
119,000
336,538
943,855
1,280,393
1,298,322
-
-
-
119,000
1During the year, the Group disposed 293,974 shares in Deep Yellow Limited for a total consideration
of $128,129.
2During the year, the Group disposed of its interest in the Tick Hill Gold Project for a consideration of
$221,411. Consideration paid to the Group comprises 2,403,843 ordinary shares at deemed value of
$0.078 per share in Carnaby Resources Limited and cash reimbursement of $33,911.
The Group has $943,855 (2018: nil) in restricted cash held as a result of its role as the Operator under
the Earn-in and Joint Venture Agreement (JVA) with South32 Group Operations Pty Ltd (South32) on 28
May 2019 as described in Note 22.
In accordance with the first stage of commitment, South32 must sole-fund an initial $2 million or 4,000m
of drilling within the first 12 months of operations. As at 30 June 2019, South32 had prepaid $1 million to
the Company as the Operator under the JVA, to fund the planned exploration operations in accordance
s.
This prepaid amount is held solely for the benefit of South32 in meeting their obligations under the JVA,
in accordance with the policy described in Note 2(f), it is held as restricted cash as it is not available to
-to-day operations and therefore has been excluded from cash and cash
equivalents for the purposes of the statement of cash flows. It has been disclosed as a non-current asset.
An offsetting liability has been recognised representing the obligation of the Company, as the Operator
under the JVA to South32 to meet their first stage of exploration commitments. Refer to Note 22 for
further information.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
13. Plant and equipment
NON-CURRENT
Equipment / software
Accumulated depreciation
at cost
Year ended 30 June 2019
Opening net book amount
Additions
Depreciation charge
Closing net book amount
Year ended 30 June 2018
Opening net book amount
Additions
Depreciation charge
Closing net book amount
14. Exploration expenditure
2019
$
2018
$
85,337
(76,007)
9,330
85,337
(72,855)
12,482
Equipment /
Software
$
12,482
-
(3,152)
9,330
13,024
2,880
(3,422)
12,482
Exploration phase property costs
Deferred geological, geophysical, drilling and other expenditure
at cost
Current
Non-current
Total capitalised exploration expenditure
assets classified as held for sale (i)
The capitalised exploration expenditure carried forward above has
been determined as follows:
Opening balance
Expenditure incurred during the year (ii)
Impairment of exploration expenditure
Disposal of assets classified as held for sale (i)
Exploration abandoned
Closing balance
2019
$
2018
$
-
4,427,456
4,427,456
375,000
3,588,615
3,963,615
3,963,615
921,912
-
(447,694)
(10,377)
4,427,456
3,116,578
899,109
(22,939)
-
(29,133)
3,963,615
(i) Capitalised exploration expenditure relating to the Tick Hill Gold Project of $447,694 (including
exploration expenditure of $72,694 capitalised during the year) disposed during the year for a
consideration of $221,412, resulting a loss on disposal of $226,282.
(ii) Exploration expenditure incurred during year includes an amount of $120,994 contributed by the Joint
Venture participant, South32 Group Operations Pty Ltd in relation to the Nicholson Project under the
Earn-in and Joint Venture Agreement, dated 28 May 2019. Refer to Note 22 for further information.
70
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
15. Non-current assets Deferred tax assets
Deferred tax assets
The balance comprises temporary differences attributable to:
Amounts recognised in profit or loss
Accruals
Employee entitlements
Business capital costs
Tax losses
Amounts recognised in equity
Business capital costs
Tax losses
Total deferred tax assets
Set-off of deferred tax assets/liabilities pursuant to set-off
provisions (Note 18)
Net adjustment to deferred tax assets for tax losses not
recognised
Net deferred tax assets
2019
$
-
2018
$
-
14,831
12,434
30,543
3,218,843
14,454
9,500
27,071
2,996,249
19,446
66,316
3,362,413
28,204
57,558
3,133,036
(1,268,958)
(1,139,305)
(2,093,455)
-
(1,993,731)
-
At 30 June 2017
(Charged)/credited to
profit or loss
(Charged)/credited to
contributed equity
At 30 June 2018
(Charged)/credited to
profit or loss
(Charged)/credited to
contributed equity
At 30 June 2019
Accruals
$
Employee
entitlements
$
17,395
(2,941)
-
14,454
6,320
3,180
-
9,500
Business
capital
costs
$
50,563
Tax
losses
incurred
$
Total
$
2,667,085 2,741,363
1,500
370,223
371,962
3,212
55,275
16,499
19,711
3,053,807 3,133,036
377
14,831
2,934
12,434
(5,286)
49,989
231,352
229,377
3,285,159 3,362,413
2019
$
2018
$
16. Non-current assets Other
Security deposits
28,500
28,000
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
17. Payables
Current liabilities
Trade payables
Other payables
Other payables related party (i)
Employee entitlements
Non-current liabilities
Other payables related party (ii)
Total Payables
2019
$
2018
$
253,515
43,571
244,540
45,216
586,842
44,666
44,666
631,508
93,355
45,622
144,899
34,544
318,420
44,666
44,666
363,086
(i) These amounts represent the unpaid d
months. The liability is unsecured and no decision has been made by the directors on the timing or nature
of the consideration to be provided in settlement.
(ii) These amounts represent the unpaid d
directors have agreed that they will not call upon the payment of this balance outstanding for a period of
not less than 12 months from the date of this report.
18. Non-current liabilities Deferred tax liabilities
2019
$
2018
$
Deferred tax liabilities
-
-
The balance comprises temporary differences attributable to:
Amounts recognised in profit or loss
Exploration expenditure
Prepayments
Plant and equipment
1,184,277
20,625
221
1,096,303
17,579
2,573
Amounts recognised in other comprehensive income
Financial assets at fair value through other comprehensive
income
Total deferred tax liabilities
Set-off of deferred tax assets/liabilities pursuant to set-off
provisions (Note 15)
Net deferred tax liabilities
63,835
1,268,958
22,850
1,139,305
(1,268,958)
-
(1,139,305)
-
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
18. Non-current liabilities Deferred tax liabilities (continued)
2019
$
2018
$
Financial
assets at fair
value through
other
comprehensive
income
$
Prepayments
$
17,075
13,542
Exploration
expenditure
$
857,059
Plant and
equipment
$
2,573
Total
$
890,249
243,281
239,244
-
4,037
-
-
1,096,303
5,775
22,850
-
17,579
-
2,573
5,775
1,139,305
-
-
-
-
-
87,974
1,184,277
40,985
63,835
3,046
20,625
(2,352)
221
129,653
1,268,958
2019
$
2018
$
At 30 June 2017
Charged/(credited) to
profit or loss
Charged /(credited)
to other
comprehensive
income
At 30 June 2018
Charged/(credited) to
profit or loss
Charged /(credited)
to other
comprehensive
income
At 30 June 2019
19. Contributed equity
688,043,740 (2018: 688,043,740) ordinary shares fully paid
10,975,213
10,975,213
(a) Movements in ordinary share capital
Details
Balance
Date
At 30 June 2017
14 December 2017 Shares issued
Shares issued
22 January 2018
Shares issued
16 March 2018
Shares issued
27 March 2018
Share issue expenses
Balance
At 30 June 2018
At 30 June 2019
Balance
(b) Ordinary shares
Number of
shares
463,421,804
17,500,000
69,513,224
106,234,248
31,374,464
688,043,740
688,043,740
Issue price
$
0.0086
0.0090
0.0090
0.0090
$
9,031,677
151,116
625,619
956,108
282,370
(71,677)
10,975,213
10,975,213
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting, in person or by proxy, is
entitled to one vote, and upon a poll each share is entitled to one vote.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
19. Contributed equity (continued)
(c) Share options
Date
Details
At 30 June 2017
22 January 2018
16 March 2018
27 March 2018
At 30 June 2018
17 October 2018
30 June 2019
At 30 June 2019
Balance
Options issued
Options issued
Options issued
Balance
Options issued
Options expired
Balance
Number of options
37,375,000
34,756,609
53,117,101
15,687,215
140,935,925
10,000,000
(37,375,000)
113,560,925
Weighted
Average Exercise
Price
$
0.030
0.016
0.016
0.016
0.020
0.030
0.030
0.030
Expiry
30 Jun-19
31 Aug-19
31 Aug-19
31 Aug-19
31 Aug-19
The lead manager to the share placement and rights issue undertaken in January to March 2018 received
10 million options, having the same terms as options issued under the placement and rights issue for a
consideration of $100 for the issue of these options.
(d) Capital risk management
The Group
its ability to continue as a going concern,
so that they can continue to provide returns for shareholders, benefits for other stakeholders and to
maintain an optimal capital structure to reduce the cost of capital.
The capital structure of the Group includes cash and cash equivalents, equity attributable to equity
holders, comprising of contributed equity, reserves and accumulated losses. In order to maintain or
adjust the capital structure, the Group may issue new shares, sell assets to reduce debt or adjust the
level of activities undertaken by the company.
The Group monitors capital on the basis of cash flow requirements for operational, and exploration and
evaluation expenditure. The Group
2019 totals $nil (2018: $nil).
The Group will continue to use capital market issues and joint venture participant funding contributions
to satisfy anticipated funding requirements.
The Group
20. Reserves
2019
$
2018
$
Restated
Financial assets revaluation reserve
(3,095,913)
(3,231,025)
At beginning of year
Realised gains on disposals
Revaluation increment
Income tax @ 27.5%
At end of year
(3,231,025)
28,180
147,917
(40,985)
(3,095,913)
(3,246,250)
-
21,000
(5,775)
(3,231,025)
74
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
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21. Accumulated losses
Accumulated losses
At beginning of year
Net loss for the year
At end of year
2019
$
2018
$
Restated
(3,557,653)
(3,008,280)
(3,008,280)
(549,373)
(3,557,653)
(2,523,193)
(485,087)
(3,008,280)
22. Liabilities for restrictions over assets
Contribution received from South32
1,000,000
-
Liabilities for restrictions over assets represents contributions in advance from earn-in participant
South32, representing part of their first stage commitment under the Earn-in and Joint Venture
Agreement (JVA) to sole fund the planned exploration operations in respect of the Nicholson Project.
The liabilities for restrictions over assets will be settled by the Company with the divestment of 70% of
its interest in the Project should South32 complete stage 1 and satisfy all the exploration commitments
under stage 2. An explanation of the Nicholson Project and exploration commitments under the JVA are
set out below.
Nicholson Project
The Company entered into an earn-in and joint venture agreement (JVA) with South32 Group Operations
Pty Ltd on 28 May 2019 (South32) in respect of the Nicholson Project. Under the terms of the JVA,
South32 may earn an interest of up to 80% in the Project by satisfying the following requirements:
-
-
-
Stage 1: South32 must sole-fund an initial $2,000,000 or 4,000m of drilling (whichever comes
first) within the first 12 months of operations;
Stage 2: provided South32 completes Stage 1, it will have a right to elect to proceed to Stage 2
to earn a 70% interest in the Project by sole-funding an additional $4,000,000 on exploration
within a further four years; and
Stage 3: provided South32 completes Stage 2, it will have a right to earn an additional 10%
interest in the Project by sole-funding a feasibility study.
The Company will be the JV operator during Stages 1 and 2 of joint venture operations which commenced
with the drilling of the first diamond core hole on 27 July 2019. As Operator, the Company will receive
contributions from South32 to fund the exploration commitments under the JVA. Exploration expenditure
incurred on behalf of South32 will be capitalised to the Nicholson Project tenements and any unspent
funds will be held as Restricted Cash and separated from cash flow from operations of the Company. As
at 30 June 2019, the contributions received to date and expended on exploration of the Nicholson Project
tenements and the related liabilities for restrictions over assets are summarised in the table below.
prepaid contributions from South32
Restricted cash
Exploration expenditure by South32 - capitalised
JVA creditors
Liabilities for restrictions over assets Total
contribution form South32
Note
12
14
2019
$
943,855
120,994
(64,849)
1,000,000
2018
$
-
-
-
75
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
23. Joint venture entities
Tick Hill Gold Project (THGP)
On 17 June 2013, the consolidated entity entered into an Exploration Farm-In and Joint Venture
Agreement (JVA) over the THGP with Diatreme Resources Limited (DRX). Under the JVA the
consolidated entity had the right to earn a 50% interest in the THGP by spending a minimum of $750,000
on exploration, paying DRX $100,000 and paying DRX an amount equal to 50% of the government
security bond on the mining leases. The original Earn-in Period ended on 31 December 2016 and was
extended by mutual agreement until 31 December 2017.
The consolidated entity has not met its earn-in requirements to date. As a result of expenditure incurred
to date the consolidated entity holds a 50% interest in the surface gold, comprising mainly the residual
gold in the Tick Hill tailings ponds.
On 11 March 2019, the Company entered into a binding Heads of Agreement (HOA) with Berkut Minerals
Limited (B
THGP. For
interest in the THGP is deemed to be a 25% beneficial interest,
the purposes of the HOA the
100% legal interest and a 75% beneficial interest.
The sale transaction completed on 24 April 2019 with the Company receiving the following consideration
(excluding GST):
-
-
2,403,846 fully paid ordinary shares in Berkut Minerals Limited at a deemed value of $0.078 per
share; and
$33,911 cash consideration for project holding costs.
Subsequent to completion of the transaction, BMT changed its name to Carnaby Resources Limited
(CNB). The minimum ASX-traded price of CNB shares on 12 March 2019 was $0.092 and $0.135 on
28 June 2019.
The CNB shares are not subject to any period of escrow.
24. Key Management Personnel disclosures
(a)
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
2019
$
294,616
23,429
318,045
2018
$
298,726
23,819
322,545
Detailed remuneration disclosures are provided in the remuneration report on pages 7 to 10.
At 30 June 2019 $359,222 (2018: $210,840) remains payable.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
24. Key Management Personnel disclosures (continued)
(b)
Equity instrument disclosures relating to key management personnel
(i)
Options provided as remuneration and shares issued on exercise of such options
There have been no options granted affecting remuneration in the current or a future reporting period.
(ii)
Option holdings
The numbers of options over ordinary shares in the company held during the financial year by each
Director of Superior Resources Limited and other key management personnel of the Group, including
their personally related parties, is set out below.
Balance at the
start of the
year
Options
Exercised
Name
Directors of Superior Resources Limited
PH Hwang
CA Fernicola
KJ Harvey
7,759,746
7,312,499
3,119,304
-
-
-
Net purchased
/ (sold)
Other changes Balance at the
end of the year
-
-
-
(4,427,500)
(3,750,000)
-
3,332,346
3,562,499
3,119,304
All options are vested and exercisable.
(iii)
Share holdings
The number of ordinary shares in the company held during the financial year by each Director of Superior
Resources Limited and other key management personnel of the Group, including their personally related
parties, is set out below.
2019
Balance at the
start of the
year
Received on
exercising
options
Name
Directors of Superior Resources Limited
PH Hwang
CA Fernicola
KJ Harvey
35,097,467
35,624,999
31,193,040
2018
Balance at the
start of the
year
Received on
exercising
options
Name
Directors of Superior Resources Limited
PH Hwang
CA Fernicola
KJ Harvey
18,077,974
23,500,000
22,454,432
Net purchased
/ (sold)
Other changes Balance at the
end of the year
-
-
-
-
-
-
-
-
-
35,097,467
35,624,999
31,193,040
Net purchased
/ (sold)
Other changes Balance at the
end of the year
-
-
-
17,019,493
12,124,999
8,738,608
-
-
-
35,097,467
35,624,999
31,193,040
25. Remuneration of auditors
During the year the following fees were paid or payable for
services provided by the auditor, its related practices and non-
related audit firms:
PKF Brisbane Audit
Audit or review of financial report
77
2019
$
2018
$
40,500
40,500
30,500
30,500
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
26. Contingencies
There are no contingent liabilities affecting the Group as at the date of this report.
27. Commitments
Exploration commitments
So as to maintain current rights to tenure of various exploration and mining tenements, the company will
be required to outlay amounts in respect of tenement rent to the relevant governing authorities and to
meet certain annual exploration expenditure commitments. These outlays (exploration expenditure and
rent), which arise in relation to granted tenements, inclusive of tenement applications granted subsequent
to 30 June 2019, are as follows:
Exploration expenditure commitments
Commitments for payments under exploration permits for minerals
in existence at the reporting date but not recognised as liabilities
payable is as follows:
Payable within one year
Payable between one and five years
2019
$
2018
$
1,118,970
1,962,518
3,081,488
831,861
1,779,132
2,610,993
Outlays may be varied from time to time, subject to approval of the relevant government departments,
and may be relieved if a tenement is relinquished or certain contractual arrangements are entered into
with third parties (e.g. a farm-in or joint venture arrangement). Cash security bonds totalling $28,500
(2018: $28,000) are currently held by the relevant governing authorities to ensure compliance with
granted tenement conditions.
28. Events occurring after the balance date
Since the end of the financial year, the Group has raised $494,000 through the issue of 61,750,000
shares at value of $0.008 per share, which includes $35,000 from the Directors which will be subject to
shareholders approval at the Annual General Meeting. 57,375,000 shares were issued on 15 August
2019.
No other matters or circumstances have arisen since the end of the financial year which have significantly
affected or may significantly affect the operations of the company, the results of the operations or the
state of affairs of the company in financial years subsequent to 30 June 2019.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
29. Reconciliation of loss after income tax to net cash flows from operating activities
2019
$
2018
$
Loss for the year after income tax
(549,373)
(485,087)
Depreciation and amortisation
Loss on disposal of tenement
Exploration abandoned
Impairment of exploration expenditure
Income tax
Changes in operating assets and liabilities:
(Increase)/decrease in other receivables
(Increase) / decrease in prepayments
Increase/(decrease) in trade payables
Increase/(decrease) in other payables - current
Increase/(decrease) in employee entitlements
3,469
226,282
-
10,377
(40,985)
-
(21,877)
77,102
141,403
10,672
3,422
-
29,133
22,939
(5,775)
(14,786)
(6,006)
(30,884)
(34,411)
11,561
Net cash outflow from operating activities
(142,930)
(509,894)
30. Earnings (loss) per share
(a) Basic earnings (loss) per share
2019
Cents
2018
Cents
Profit (loss) attributable to the ordinary equity holders of the
company
(0.08)
(0.08)
(b) Diluted earnings (loss) per share
Profit (loss) attributable to the ordinary equity holders of the
company
(0.08)
2019
$
(0.08)
2018
$
(c) Reconciliations of earnings (loss) used in calculating
earnings per share
Basic earnings (loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating basic earnings per share
(549,373)
(485,087)
Diluted earnings(loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating diluted earnings per share
(549,373)
(485,087)
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
30. Earnings (loss) per share (continued)
(d) Weighted average number of shares used as the
denominator
2019
Number
2018
Number
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings (loss) per share
Adjustments for calculation of diluted earnings (loss) per share:
Options
Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
earnings (loss) per share
688,043,740
614,721,016
-
-
688,043,740
614,721,016
Unissued ordinary shares under option are not included in the calculation of diluted earnings per
share because they are antidilutive for the years ended 30 June 2019 and 30 June 2018. These
shares under option could potentially dilute basic earnings per share in the future.
31. Related party disclosures
(a) Parent entity
The parent entity within the Group is Superior Resources Limited.
(b) Subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary shares which are held
directly by the Group. The % ownership interests held equals the voting rights held by the Group.:
Country of
incorporation
Principal Place
of Business
% ownership interest
Held by the Group
2018
2019
Investment
2019
$
2018
$
Australia
Australia
100
100
1,000
1,000
Subsidiaries
Superior Gold
Pty Ltd
(c) Joint Agreement
Country of
incorporation
Principal Place
of Business
% ownership interest
Held by the Group
2018
2019
Investment
2019
$
2018
$
Unincorporated
Australia
100
-
-
-
Hedleys Joint
Venture
(Nicholson
Project)
(d) Key management personnel
Disclosures relating to key management personnel are set out in Note 24.
80
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
32. Parent entity information
Summary financial information
(a)
The individual financial statements for the parent entity show the following aggregate amounts:
Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
2019
$
2018
$
Restated
227,200
4,702,153
4,929,353
1,454,878
3,649,431
5,104,309
556,464
44,666
601,130
318,420
44,666
363,086
4,328,223
4,741,223
10,975,213
(3,095,913)
(3,551,077)
10,975,213
(3,231,025)
(3,002,965)
4,328,223
4,741,223
Statement of profit or loss and other Comprehensive Income
Loss for the year
Other comprehensive income/(loss) net of tax
Total comprehensive income/(loss) for the year
(548,112)
135,112
(413,000)
(483,906)
15,225
(468,681)
Contingent liabilities and commitments of the parent entity
(b)
The parent entity did not have any contingent liabilities as at 30 June 2019 or 30 June 2018.
The commitments of the parent entity are as disclosed at Note 27 for the Group.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
In the D
1.
the financial statements and notes set out on pages 15 to 50, are in accordance with the
Corporations Act 2001, including:
(a)
(b)
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
and of its performance for the financial year ended on that date, and
2019
2.
having regard to note 6 to the financial statements, there are reasonable grounds to believe that
the company will be able to pay its debts as and when they become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the chief executive officer/chief financial officer
required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
CA Fernicola
Chairman
Brisbane, 26th September 2019
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TO THE MEMBERS OF SUPERIOR RESOURCES LIMITED
Report on the Financial Report
Opinion
which comprises the consolidated statement of financial position as at 30 June 2019 the consolidated
income statement, consolidated statement of comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, notes comprising a
declaration of the company and the consolidated entity comprising the company and the entities it
In our opinion the financial report of Superior Resources Limited is in accordance with the Corporations
Act 2001, including:
a)
b)
2019 and of its performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those standards require that
we comply with relevant ethical requirements relating to audit engagements and plan and perform the
audit to obtain reasonable assurance about whether the financial report is free from material
Responsibility section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion
.
Emphasis of matter
Without modifying our opinion, we draw attention to Note 6 of the financial statements which indicates
that the consolidated entity incurred losses of $549,373 and operating and investing cash outflows of
$782,623 for the year ended 30 June 2019. These conditions, indicate the existence of a material
concern and therefore, the consolidated entity may be unable to realise its assets and discharge its
liabilities in the normal course of business
Independence
We are independent of the consolidated entity in accordance with the Corporations Act 2001 and the
Code of
Ethics for Professional Accountants (the code) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
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. For each matter below, our description of how our audit addressed
the matter is provided in that context.
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Carrying value of capitalised exploration expenditure
Why significant
As at 30 June 2019 the carrying value of
exploration and evaluation assets was
$4,427,456 (2018: $3,588,615), as disclosed in
Note 14. This represents 74% of total assets of
the consolidated entity.
The
accounting policy in
respect
evaluation
expenditure is outlined in Note 2 (j). Significant
judgement is required:
exploration
and
of
facts and
in determining whether
circumstances
the
that
indicate
exploration and evaluation assets
should be tested for impairment in
accordance with Australian Accounting
Standard AASB 6 Exploration for and
Evaluation of Mineral Resources
in determining
treatment of
the
exploration and evaluation expenditure
in accordance with AASB 6, and the
accounting policy.
In particular:
whether the particular areas of
interest meet the recognition
conditions for an asset; and
which elements of exploration
and evaluation expenditures
qualify
for
each area of interest.
for capitalisation
How our audit addressed the key audit
matter
Our work included, but was not limited to, the
following procedures:
to assess whether there are indicators of
impairment:
assessing whether the rights to
tenure of the areas of interest
remained current at balance date
as well as confirming that rights to
tenure are expected to be renewed
for tenements that will expire in the
near future;
holding discussions with
for
the
directors and management as to
the status of ongoing exploration
programmes
the areas of
interest, as well as assessing if
there was evidence that a decision
had been made to discontinue
activities in any specific areas of
interest; and
obtaining and assessing evidence
of the consolidat
future
intention for the areas of interest,
including reviewing future budgeted
related work
expenditure and
programmes;
considering
exploration
whether
activities for the areas of interest had
reached a stage where a reasonable
assessment
economically
of
recoverable reserves existed;
testing, on a sample basis, exploration
and evaluation expenditure
incurred
during the year for compliance with
AASB 6 and the
accounting policy; and
assessing the appropriateness of the
related disclosures in Note 2 (j) and 14.
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Other Information
The Directors are responsible for the other information. The other information comprises the information
financial report and our
Our opinion on the financial report does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
The Directors of the company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the Directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error. In Note 1, the Directors also state, in accordance with Australian Accounting Standard AASB 101
Presentation of Financial Statements, that the financial report complies with International Financial
Reporting Standards.
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using a going concern basis of accounting unless the Directors either intend to liquidate the consolidated
entity or to cease operations, or have no realistic alternative but to do so.
Audit
Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are
to obtain reasonable assurance about whether the financial report as a whole is free from material
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, individual or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report.
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material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant
report that gives a true and fair view in order to design audit procedures that are appropriate in the
internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall
presentation of the financial report.
We conclude on the appropriateness
based on the audit evidence obtained, whether a material uncertainty exists related to events or
as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the consolidated entity to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the audit. We remain solely responsible for
our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore key audit matters.
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
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Report on the Remuneration Report
2019. 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.
Opinion
In our opinion, the Remuneration Report of Superior Resources Limited for the year ended 30 June 2019
complies with section 300A of the Corporations Act 2001.
PKF HACKETTS AUDIT
LIAM MURPHY
PARTNER
DATED THIS 26TH DAY OF SEPTEMBER 2019
BRISBANE
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SHAREHOLDER INFORMATION
Shareholder Information
The information set out below was applicable at 7 October 2019.
A. DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of equity security holders by size of holding:
Class of security - Ordinary Shares
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Number of Holders
27
14
87
284
443
855
The number of holders holding less than a marketable parcel of ordinary shares was 332 and they held
7,550,127 securities.
B. EQUITY SECURITY HOLDERS
Total of Ordinary Shares on Issue 745,418,740.
Twenty largest equity security holders
Holders of fully paid ordinary shares (ASX:SPQ):
Name
Ordinary Shares
YARRAANDOO PTY LTD
HBH FAMILY PTY LTD
KJ HARVEY & ASSOCIATES PTY LTD
MR TERRY TAYLOR & MRS LYNDA LOUISE TAYLOR
JORLYN INVESTMENTS PTY LTD
BT PORTFOLIO SERVICES LIMITED
AIHANMI PTY LTD
HAMILTON HAWKES PTY LTD
BT PORTFOLIO SERVICES LIMITED
MR GEOFFREY JAMES HARRIS
TERRA SEARCH PTY LTD
MR JOHN JOSEPH SCHOLL & MRS PATRICIA JOY SCHOLL
MR SIMON DAVID BEAMS & MR RICHARD HUTTON LESH & MR DAVID RANDAL JENKINS
CAPITAL FINANCIAL ADVISERS PTY LTD
MR SIMON DAVID BEAMS
MR CARLOS ALBERTO FERNICOLA & MRS KERRIE ALISON FERNICOLA
TRANQUIL PLUS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CALM HOLDINGS PTY LTD
SWEET AS DEVELOPMENTS PTY LTD
Number
37,425,000
29,041,666
28,068,040
22,000,000
18,215,005
17,812,500
15,443,000
13,174,558
12,968,750
12,500,000
12,297,916
10,937,500
10,645,832
10,110,866
9,500,000
8,076,250
7,104,166
7,057,556
6,500,000
6,300,000
Percent
5.02
3.90
3.77
2.95
2.44
2.39
2.07
1.77
1.74
1.68
1.65
1.47
1.43
1.36
1.27
1.08
0.95
0.95
0.87
0.85
Total
295,178,605
39.60
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SHAREHOLDER INFORMATION
Unquoted equity securities
There are no unlisted equity securities of Superior Resources Limited at the date of this report.
Holders of greater than 20% of the unlisted equity securities
There are no holders of unlisted equity securities of Superior Resources Limited at the date of this
report.
C. SUBSTANTIAL HOLDERS
Substantial holders of the company’s securities are set out below:
Shareholder
Ordinary Shares
Simon David Beams
Yarraandoo Pty Ltd
D. VOTING RIGHTS
Number Held
40,902,083
37,425,000
Percentage of Issued Shares
5.49
5.02
The voting rights attaching to each class of equity securities are set out below:
(a) Ordinary shares
On a show of hands each member present at a meeting in person or by proxy shall have
one vote and on a poll each share shall have one vote.
(b) Options
No voting rights
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
TENEMENT SCHEDULE
Tenement Schedule
Current interests in tenements held by Superior Resources Limited and its subsidiaries as at
7 October 2019 are set out below.
All tenements are located within Queensland. Exploration Permits for Minerals held are for all minerals
other than coal.
Tenement
Name
Project
Date of Grant
Date of
Expiry
Area
Holder
SPQ
Interest
Northwest Queensland
EPM156701
EPM182031
Hedleys 2
Hedleys South
Nicholson
Nicholson
21 Aug 06
29 May 14
20 Aug 21
28 May 24
186 km2
126 km2
Harris Creek
Tots Creek
Scrubby Creek
Tomahawk Creek
EPM18840
EPM19097
EPM19214
EPM25264
EPM25843 W Creek
EPM26720
Victor Extended
Northeast Queensland
Cockie Creek
Cassidy Creek
Dinner Creek
EPM18987
EPM19247
EPM25659
EPM25691 Wyandotte
EPM26165
EPM26751
Cockie South
Twelve Mile
Creek
Victor
Victor
Victor
Victor
Victor
Victor
Greenvale
Greenvale
Greenvale
Greenvale
Greenvale
Greenvale
9 May 12
27 Nov 14
27 Nov 14
24 Dec 15
24 Dec 15
30 Aug 18
8 May 20
26 Nov 19
26 Nov 19
23 Dec 20
23 Dec 20
29 Aug 23
25 Sep 13
28 May 13
21 Apr 15
7 Apr 15
30 Jan 17
28 May 19
24 Sep 23
27 May 23
20 Apr 20
6 Apr 20
29 Jan 22
27 May 24
39 km2
213 km2
180 km2
180 km2
45 km2
60 km2
153 km2
48 km2
192 km2
90 km2
108 km2
300 km2
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Notes
1. Subject to a Farm-in and Joint Venture Agreement between South32 and Superior Resources Limited
in respect of EPM15670 and EPM18203, as announced to the ASX on 29 May 2019.
Abbreviations:
SPQ
EPM
ML
Superior Resources Limited
Exploration Permit for Minerals
Mining Lease
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
MINERAL RESOURCES STATEMENT
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Mineral Resources Statement
Mineral Resources at 30 June 2019
Project
Resource
category
Cut-off
grade
Quantity
tonnes
Average
grade
Notes
Cockie Creek Copper
Inferred
0.25% Cu
13,000,000
0.42% Cu
1, 2
Steam Engine Gold
Inferred
1.0g/t Au
1,000,000
2.5g/t Au
3, 4
Notes:
1. The Cockie Creek Copper Prospect is within granted EPM18987 “Cockie Creek” approximately
210km west northwest of Townsville, Queensland, Australia.
2. Competent person – Mineral Resources, Mr Ken Harvey (MAIG).
3. Steam Engine Gold Prospect lies approximately 1.5km south of the Gregory Development Road
within an area under application to add excluded land to granted EPM26165 “Cockie South”
and is located 210km west northwest of Townsville, Queensland, Australia.
4. Competent person – Mineral Resources, Mr Ken Harvey (MAIG).
Cockie Creek Prospect
The information in relation to the Cockie Creek Copper Prospect Mineral Resources has been reported
in an announcement to the ASX on 27 March 2013 “Cockie Creek Copper Prospect Inferred Resource”
which complies with the guidelines of the 2004 JORC Code. It has not been updated since to comply
with the JORC Code 2012 on the basis that the information has not materially changed since it was last
reported.
The information in this report that relates to the Cockie Creek Prospect Mineral Resources and
Exploration Results is based on information compiled by Mr Ken Harvey, a director and shareholder of
the Company and a member of the Australian Institute of Geoscientists at the time of compilation. Mr
Harvey 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 ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Harvey consents to the inclusion in this report of the matters based
on his information in the form and context in which it appears.
Steam Engine Prospect
The information in relation to the Steam Engine Prospect Mineral Resources has been reported in an
announcement to the ASX on 19 October 2017 “Maiden JORC Inferred Mineral Resource Estimate
Steam Engine Gold Deposit (Steam Engine Lode)” which complies with the guidelines of the 2012 JORC
Code. It has not been updated since on the basis that the information has not materially changed since
it was last reported.
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SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
MINERAL RESOURCES STATEMENT
The information in this report that relates to the Steam Engine Prospect Mineral Resources and
Exploration Results is based on information compiled by Mr Ken Harvey, a director and shareholder of
the Company and a Member of the Australian Institute of Geoscientists at the time of compilation. Mr
Harvey 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 ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Harvey consents to the inclusion in this report of the matters based
on his information in the form and context in which it appears.
Mineral Resource and Ore Reserve Governance
The Mineral Resources reported have been generated by a suitably qualified person using industry
standard best practice modelling and estimation methods.
Unless stated otherwise, Mineral Resources and Ore Reserves are compiled in accordance with the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code) 2012 Edition.
The Mineral Resources Statement included in the annual report is reviewed by a suitably qualified
Competent Person.
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Telephone: 07 3847 2887
Email: manager@superiorresources.com.au
www.superiorresources.com.au