ANNUAL
REPORT
superiorresources.com.au
Corporate Directory
Directors
Peter Henry Hwang
Carlos Alberto Fernicola
Simon James Pooley
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
William Buck
Level 21, 307 Queen Street
BRISBANE QLD 4000
Telephone: 07 3229 5100
Facsimile: 07 3221 6027
CONTENTS
Chairman and Managing Director’s Review
Highlights
Review of Operations
Directors' Report
Auditor's Independence Declaration
Corporate Governance
Consolidated Statement of Profit or Loss
Consolidated Statement of other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes In Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor’s Report
Shareholder Information
Tenement Schedule
Mineral Resources Statement
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27
28
29
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31
55
56
60
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63
Chairman and Managing
Director’s Review
Dear Fellow Shareholders
Welcome to your company’s 2021 Annual Report.
Superior Resources has enjoyed a year of substantial growth
across our project portfolio, with a tripling of our market
capitalisation during fiscal 2021.
During the past year, our key focus has been on our emerging
Steam Engine Gold Project in north-east Queensland, with the
project showing compelling financial metrics at an early stage of
defining the Mineral Resource.
Steam Engine picks up speed
In July 2020, the Board announced the start of drilling at
Steam Engine, with a first phase, 2,500m RC and diamond
core resource drilling program. The program aimed to support
the completion of a Scoping Study and expand and upgrade
the Mineral Resource at the project located 210km west
of Townsville.
In September 2020, the first assays from the drilling
program were announced and they showed significant gold
mineralisation from both the Steam Engine and Eastern Ridge
Lodes, which supported our confidence in the deposit.
With the positive results continuing at Steam Engine, in
November 2020 the company launched a 3,000m, second
phase RC drilling program to further expand and upgrade the
Mineral Resource.
This led to December’s announcement of a revised Mineral
Resource Estimate, comprising 1.6 million tonnes (Mt) at
2.2 g/t gold for 112,000 oz. The 19% increase in total gold
ounces was very positive, particularly amid high prices for the
precious metal.
Our momentum continued into the new year, with Superior
announcing spectacular results of up to 184 g/t Au from the
phase two assays. Further strong results were reported in
February, highlighting the project’s potential.
In March 2021, Superior again upgraded Steam Engine’s
Mineral Resource estimate to 1.73 Mt @ 2.2 g/t Au for 122,000
oz, with a 31% increase in the JORC Measured and Indicated
Resources and 9% rise in total contained gold.
A Scoping Study released in April 2021 showed a viable
financial and technical case for a near-term, low capex open pit
mining and toll treatment operation, based on mining 65% of the
total estimated Mineral Resource to recover 70,000 oz gold.
Base-case economic modelling indicated that the project could
deliver post-tax, life of mine cash flow of $24.4 million over a
21-month period of mining, based on an assumed gold price
of A$2,200 per oz. At A$2,500 per oz, the post-tax cash flow is
estimated to jump to $41 million.
These positive results led the company to immediately
commence a Feasibility Study, along with further metallurgical
test work and drilling programs aimed at expanding the Mineral
Resource, including a maiden drilling program at the Dinner
Creek Lode.
Importantly, Steam Engine is seen underpinning a greater
Greenvale Project encompassing copper, gold and
nickel, with potential to support a centralised standalone
processing operation.
8,000m drilling program launched at Greenvale
Capitalising on strong market momentum and investor support,
in June 2021 the Board committed to a fully funded, 8,000m
drilling campaign at Greenvale, focused on Steam Engine, the
Bottletree Copper Prospect and Wyandotte Copper Deposit.
Copper has captured market attention in 2021 and it is here
where the Board identifies our greatest potential for value
growth. Together with deep drilling at Bottletree, the company
aims to deliver by calendar year-end up to two JORC compliant
copper Mineral Resource estimates, one at Wyandotte and the
other at the larger Cockie Creek Copper Prospect.
1
1
ANNUAL REPORT 2021 CHAIRMAN & MANAGING DIRECTOR’S REVIEW
Nickel has also found favour with investors thanks to the global
electrification thematic. During the course of 2020, the Board
initiated its nickel strategy by securing Queensland's most
prospective nickel sulphide district. This area happens to be
immediately adjacent to the company's Greenvale Project
tenements and includes our new Dido, Phantom Creek and
Arthur Range tenements.
In 2022, Superior aims to further advance its Big Mag and the
new nickel tenements, which are seen as highly prospective
for Voiseys Bay-style Ni-Cu-PGE magmatic sulphide ore
deposit systems.
Post-balance date, on 17 September the company announced
the commencement of diamond drilling at Bottletree, considered
our most exciting large-scale copper prospect, and located just
5km from Steam Engine.
A two-stage, 2,300m program is planned targeting an untested
core of a large, intense induced polarisation (IP) chargeability
anomaly, with 3-D modelling indicates the potential for a major
copper ore body.
Standout results have also continued at Steam Engine, including
a near-surface intersection of 1m averaging 115.2 g/t Au.
Investor support
Superior’s fully funded drilling campaign would not have been
possible without the support of investors.
In July 2020, the company completed a successful $1.18 million
capital raising comprising both a placement and non-
renounceable rights issue, with the funding primarily supporting
Steam Engine’s development.
Recently, in September 2021 the company completed an
oversubscribed placement raising $1.258 million to fund a
5,000m extension to the original drilling program at Steam
Engine and additional work at Bottletree.
The company thanks both longstanding and newer
shareholders for their support, as we work to deliver more
exciting progress from our project portfolio.
In the near term, with Steam Engine advancing rapidly
both in terms of progress towards mining and expansion
of its Resources, the project is showing promise as being
a foundation to support the development of Greenvale's
copper potential.
Copper is the main event at Greenvale. With potential access
to clean and green power thanks to Genex Power’s Kidston
project, there is an opportunity for Superior to become a
low carbon producer of the minerals needed for the world’s
electrification drive.
Superior has also advanced its marketing activities, with
the launch of a new company website (https://www.
superiorresources.com.au/) and presentations by our Managing
Director to investors at resource industry and other events.
Please subscribe via our homepage for the latest updates from
the company.
As we look ahead to 2022, the opportunities are enormous for
your company and we look forward to maximising value from
successful exploration campaigns.
Finally, thanks to all our shareholders, directors, employees,
contractors and all others associated with the company in what
has been a positive year of advancement for the company. We
look forward to further progress in the year ahead.
Carlos Fernicola
Chairman
Peter Hwang
Managing Director
2
SUPERIOR RESOURCES LIMITED HIGHLIGHTS
Drilling starts at Steam Engine Gold Project,
with spectacular results up to 184 g/t Au
8,000m drilling program launched across
Greenvale Project, including expanded
copper, gold and nickel exploration programs
Investors back Superior with oversubscribed
capital raisings
Base and precious metals prices firm as
world economy recovers from COVID-19
3
ANNUAL REPORT 20211234 Review of
Operations
Superior Resources holds a portfolio of quality Tier 1 potential projects in North
Queensland prospective for zinc-lead-silver, copper, gold, nickel-PGE and uranium.
Figure 1. Location map showing the
Company’s current portfolio of projects.
QLD
Cairns
Greenvale
Townsville
Nicholson
Victor
Mount Isa Mines
4
4
SUPERIOR RESOURCES LIMITED Greenvale Project
Bottletree
The Greenvale Project (SPQ 100%) is highly prospective for
VMS and porphyry copper, orogenic gold, Voiseys Bay style
nickel-copper-PGE and zinc deposits and contains at least ten
significant mineral prospects. The project is located within an
area of notable economic significance, being proximal to the
Kidston, Balcooma, Surveyor and Dry River South deposits and
comprises the following:
Steam Engine Gold Deposit
Big Mag
Galah Dam
Cockie Creek
Potential VMS / porphyry
(copper-gold)
High-grade orogenic lode gold
(gold)
Potential magmatic
Nickel-Copper-PGE sulphide
(nickel-copper)
Potential porphyry / massive
sulphide (copper-gold)
Porphyry copper-gold
(copper-gold)
Wyandotte Copper
High-grade copper
Halls Reward
One Mile/One Mile Dam
Riesling
Cyprus style VMS
(high-grade copper)
VMS / massive sulphide
(copper-zinc-gold)
Broken Hill Style
(zinc-lead-copper)
Lucky Creek
Lateritic Nickel-Cobalt
Figure 1. Greenvale Project tenements and prospects shown over satellite imagery.
5
ANNUAL REPORT 2021 Steam Engine Gold Deposit
The Steam Engine Gold Deposit provides Superior with a
strategic opportunity to realise signficant early cash flow, whilst
also providing large scale deposit potential. This deposit
contains at least two sub-parallel gold-bearing lodes, referred
to as the Steam Engine Lode and the Eastern Ridge Lode. A
third zone of sub-parallel mineralisation exists to the east of
Eastern Ridge Lode (Dinner Creek Lode) and an area of gold
mineralisation comprising multiple lodes (Southern Zone) is
located between, and to the south of the Steam Engine and
Eastern Ridge lodes.
The results of a Scoping Study for the mining and toll treatment
of approximately 65% of the current Resource tonnes was
finalised in April 2021.
The positive financial outcomes indicated by the study enabled
the Company to immediately commence a Feasibility Study and
mining lease application process.
Maiden drilling at the Dinner Creek Zone and Resource
extension drilling at the Steam Engine Lode, totalling
approximately 4,500m, commenced in June 2021.
Scoping Study and Revised Mineral Resource Estimate.
The Scoping Study indicates a viable financial and technical
case for a near-term, low CAPEX, open pit mining and toll
treatment operation (Project), based on mining 65% of the
current Resource tonnage to recover 70,000 ounces Au.
Current total Mineral Resource comprises: 1.73 million
tonnes at 2.2 g/t Au for 122,000 ounces1, including:
• Measured & Indicated: 850,000 tonnes @ 2.5 g/t Au
(approx. 67,000 ounces)
• Inferred: 880,000 tonnes @ 1.9 g/t Au (approx.
55,000 ounces)
Base-case economic modelling indicates that the Project
will deliver robust financial metrics:
• post-tax LOM cash flow of A$24.2M @ A$2,200 per
ounce Au, 21-month period of mining, post-tax LOM cash
flow of A$41.0M @ A$2,500 per ounce Au, 24-month
period of mining;
• NPV7% (post-tax): A$21.2M @ A$2,200/oz Au; A$35.9M
@ A$2,500/oz Au;
• IRR (post-tax): 242% @ A$2,200/oz Au; 410% @
A$2,500/oz Au
The Scoping Study is based on the March 2021 revised
Mineral Resource estimate of 1.73 million tonnes at 2.2 g/t Au
for 122,000 ounces of gold, which incorporated the results of
the 2020 Resource definition drilling programs. An open cut
mining and toll treatment operation was selected for the base
case scenario for the study. Pit optimisation and mine planning
exercises resulted in pit shells which are scheduled to mine
1.1 million tonnes at 2.31 g/t Au to recover 70,000 ounces. This
is equivalent to approximately 65% of the current Resource
tonnage. A stand-alone gold mining and processing scenario
was also examined, which highlighted a significant opportunity
for substantially improved project economics in the event that the
Mineral Resource is expanded.
The key financial outcomes from the Scoping Study are
summarised in Table 1.
1
Total Mineral Resource estimate completed during March 2021; refer ASX Announcement dated 22 March 2021.
Table 1. Key Outcomes – Upside Scenario compared to Base Case Scenario
Parameter
Financial Summary
Overall Cash Flow (post-tax)
NPV7% (post-tax)
Internal Rate of Return (IRR) (post-tax)
All-in Sustaining Costs (AISC)1
Payback Period
Funding
CAPEX (Pre-Production and Closure)
Funding Required2
Return on Capital (post-tax)
Physical Outputs
Life of Mine (LOM) (Construction to Closure)
Total Ore
Ore Grade
Overall Gold Recovery
Gold Produced and Sold
Base Case @ A$2,200 /oz
Upside Case @ A$2,500 /oz
A$24.2M
A$21.2M
242%
A$1,673 /oz
11 months
A$5.1M
A$10.0M
475%
~2.5 years
1.131 Mt
2.31 g/t
84%
70,000 oz
A$41.0M
A$35.9M
410%
A$1,725 /oz
9 months
A$5.1M
A$9.0M
806%
~2.9 years
1.305 Mt
2.24 g/t
84%
79,000 oz
1 AISC calculated in accordance with the 2018 World Gold Council Updated Guidance Note
2
Includes pre-production CAPEX plus operating losses until profits are generated.
A breakeven analysis was conducted on each of the key variables, which provided the levels at which the pre-tax cash flow reduces
to zero when all other parameters remain at base case levels.
6
SUPERIOR RESOURCES LIMITED Table 2. Breakeven Analysis
Parameter
Gold Price
Gold Grade
Gold Recovery – Steam Engine Lode Ore
Breakeven Value
A$1,709 (US$1,299 @ 0.76 AUD/USD)
1.79 g/t
60%
Table 3. Steam Engine Mineral Resource Estimate
A proposed site layout with the required site infrastructure in place was designed for the purpose of the Scoping Study.
Steam Engine Mineral Resource Estimate
Classification
Steam Engine (Main Zone)
Measured
Indicated
Inferred
Steam Engine (Footwall Zone)
Indicated
Inferred
Eastern Ridge
Indicated
Inferred
0.5
0.5
0.5
0.5
0.5
0.5
0.5
240,000
405,000
620,000
60,000
110,000
145,000
150,000
2.6
2.7
2.0
1.8
1.6
2.0
1.9
TOTAL MINERAL RESOURCES @ 0.5 g/t Au cut-off (Steam Engine and Eastern Ridge Lodes)
Measured
Indicated
Inferred
TOTAL MINERAL RESOURCES
240,000
610,000
880,000
1,730,000
2.6
2.4
1.9
2.2
Cut-off Grade (g/t Au)
Tonnes
Grade (g/t Au)
Au (ounces)
20,000
35,000
40,000
3,000
6,000
9,000
9,000
20,000
47,000
55,000
122,000
7
ANNUAL REPORT 2021 Figure 2. Steam Engine Project conceptual site layout.
Dinner Creek Lode
Reconnaissance rock chip sampling of historically reported area
of gold mineralisation during July identified a 1.2 kilometre long
gossanous alteration zone located to the east of the Eastern
Ridge Lode.
Rock chip samples taken from the alteration zone returned 7.6
g/t and 1.9 g/t gold, which complements historically reported
rock chip assays of 4.3 g/t and 3.6 g/t gold.
The alteration zone potentially represents a newly recognised
gold lode (Dinner Creek Lode) that is additional to the Steam
Engine, Eastern Ridge and Southern Zone lodes. It was
previously mapped by Pancontinental Resources during 1993
to 1994.
Field geological observations noted that gold-bearing rock
outcrops at the Dinner Creek Lode appear to be a similar rock
unit with similar alteration style to the Steam Engine Lode. The
Dinner Creek Lode is notably thicker at surface compared to the
Steam Engine and Eastern Creek lodes and is potentially longer
in strike length.
Prior to Superior's drilling program in June, the Dinner Creek
Lode had not been subjected to any modern or historical
drilling, despite appearing at surface to be the longest and
thickest lode zone.
Underground ore shoot system potential
Significant potential for the existence of a high-grade
underground ore shoot system under the lodes was identified
by the Company during the Mineral Resource re-modelling. The
Company considers that such an ore shoot system is likely to be
the feeder system responsible for gold mineralisation within the
currently defined lodes, which in part are exposed at surface.
8
Figure 3. A portion of the Dinner Creek Lode zone showing
mapped surface geology and recent rock chip Au assay results
Exploration Work – 2021 Drilling Programs
An 8,000m drilling campaign commenced in June 2021 with
maiden drilling of the Dinner Creek Zone. The program at the
Steam Engine Project currently comprises:
Dinner Creek:
13 reverse circulation (RC) holes for approximately
1,000m of drilling to confirm whether mineralised gold lode is
developed at depth beneath the mapped gold-bearing lode
at surface. If the results are positive, a follow up program will
comprise an intense drill-out of the lode of up to 54 RC holes
for 3,500m of drilling to define a maiden Mineral Resource
Expansion of the total Mineral Resource:
• Down-dip and along-strike extension of the Steam Engine
Lode – 8 RC holes for 1,275m of drilling; and
• Extension of high-grade ore shoots in Steam Engine
Lode – up to 15 RC holes for approximately 2,000m
of drilling.
The Company’s priority objective at Steam Engine is to fast-
track the Resource expansion drilling programs. Actual drilling
may be expanded, depending on assay results that are received
as drilling progresses.
SUPERIOR RESOURCES LIMITED Wyandotte
Big Mag
The Wyandotte Prospect is a shallow zone of high-grade copper
mineralisation, which is potentially associated with a deeper
intrusion-related or porphyry system.
Historic drilling has targeted the copper mineralisation. However,
there has been insufficient drilling to estimate a reportable
Mineral Resource.
A technical study of the existing data was undertaken
during the year in order to establish an exploration target to
determine whether potential exists for expansion of the copper
mineralisation. Planning of a Resource definition drilling program
was also completed.
Exploration Target
The historic work that has been conducted on the mineralised
zone has been determined by Superior to be sufficient to
enable the estimation of an Exploration Target that meets the
requirements of clauses 17 and 38 of the JORC Code 2012, ASX
Listing Rules 5.7, 5.12 and 5.16 and ASX Listing Rules Guidance
Note 31.
The Company has defined an Exploration Target, expressed as
a tonnage and grade range2.
Big Mag (EPM26751, Twelve Mile Creek) is characterised by a
regionally large high-order magnetic anomaly considered to be
related to the same series of rocks as the old Greenvale nickel
mine. Largely unexplored, it is prospective for magmatic nickel-
cobalt-copper-PGE sulphide mineralisation.
Desktop data review, land access preparations and initial
exploration program planning was conducted during the year on
the Big Mag Prospect as well as the greater Greenvale Project
area for its potential to host magmatic nickel sulphide deposits.
Additionally, two new Exploration Permit for Minerals (EPM)
applications were submitted (Dido and Arthur Range) covering
substantial areas that are prospective for Voisey’s Bay style
magmatic nickel-copper-cobalt-PGE deposits.
The Company is progressing a target generation program on
the Big Mag and Dido prospect areas. This exercise will be
substantially based on high quality aerial VTEM and magnetic
survey datasets.
To date, the exercise has identified several anomalous target
areas, including potentially mineralised magma feeder dykes
and mafic-ultramafic ovoid intrusions identified at Big Mag.
Table 4. Exploration Target
Bottletree
Tonnes
400,000
1,000,000
SG
2.7
3.0
Cu % Cu tonnes
2.2%
1.9%
8,800
19,000
Range
Lower
Upper
Bottletree is a large soil copper anomaly. Previous drilling
confirmed extensive copper mineralisation at depth. The limits
to this large copper mineralised system have not yet been
delineated and it remains open both laterally and at depth.
2021 Drilling Program
A total of 14 drill holes for 1,075m of drilling (30m to 150m drill
hole depths) are designed to test the Exploration Target in the
area of the historical drilling and also the potential for down-dip
extensions of the copper mineralisation to approximately 100m
vertical depth. The proposed holes will include four diamond
core drill holes for up to 200m of diamond core drilling (40m to
50m depths) with the remainder being RC drill holes.
The initial 8,000m Greenvale drilling campaign contemplates
the drilling of all 14 planned holes at Wyandotte for a total of
1,075m. Actual drilling may change as drilling progresses,
depending on observations from recovered drill samples and
assay results.
Geophysical remodelling of MIMDAS IP survey data acquired
over the prospect by Superior in 2018 was completed during the
year. A program of four deep diamond core drill holes targeting
the core of the high chargeability anomaly was planned on the
basis of the remodelled IP data.
2021 Drilling Program
The planned drilling program will target the central, expected
high-grade copper core of the chargeability and resistivity
anomaly with up to three diamond core holes. These holes are
expected to intersect the high chargeability zone at between
150m to 450m down-hole depth. A deeper and more extensive
zone of the anomaly will also be targeted at between 400m and
750m (down-hole depth) with one diamond core drill hole.
The current 8,000m Greenvale drilling campaign contemplates
the drilling of all four planned holes at Bottletree for a total of
2,100 metres. Actual drilling may change as drilling progresses,
depending on observations from recovered core and assay results.
2
Refer ASX Announcement dated 15 June 2021 for further information regarding the Exploration Target.
CAUTIONARY STATEMENT (JORC, 2012)
Exploration Target: The Wyandotte Exploration Target has been calculated using historic drill hole and assay information by a
Competent Person. The Exploration Target is reported in a form comprising a tonnage and copper mineralisation grade range.
The Exploration Target does not constitute a Mineral Resource or Ore Reserve. The potential quantity and grade expressed
by the Exploration Target is conceptual in nature as there has been insufficient exploration information to estimate a Mineral
Resource. Furthermore, it is uncertain whether further exploration work will result in the estimation of a Mineral Resource.
9
ANNUAL REPORT 2021 In addition, the project area also includes the Walford Creek
West Zinc-Lead-Copper-Cobalt Prospect and the Hedleys
Uranium Prospect.
Nicholson Project
8+ Tier 1 potential EM targets Mount Isa Style
(lead-zinc-silver)
Walford Creek West
Mount Isa Style
(sulphide copper-lead-
zinc-cobalt)
Hedleys Uranium
Uranium
Figure 5. Nicholson Project tenements and key prospect
locations overlaid on regional geology
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).
Figure 4. 3-D modelled IP high chargeability and low resistivity
iso-surfaces highlighting the Bottletree IP anomaly, viewed
looking southwest. Proposed 2021 holes also shown.
Cockie Creek
Cockie Creek is a large potential porphyry copper-gold
mineralised system that extends for over 1.2 kilometres. Two
large chargeability anomalies identified beneath the shallower
copper mineralisation are yet to be drill tested. Modelling has
opened up the potential of the area to host a significant porphyry
copper deposit.
Nicholson Project
The Nicholson Project (EPM15670 and EPM18203), together
with the Victor Project is located northwest of Mount Isa and
provides the Company with opportunities to discover similar
Mount Isa style zinc-lead-copper deposits with a portfolio of
drill-ready targets. The projects are located in the Carpentaria
Zinc Province, which contains 20% of the world’s zinc
resource inventory.
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 Nicholson and Victor
projects are located in an equally prospective region that is
relatively unexplored. These are the most likely areas within
Queensland to make the next Mount Isa discovery. 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.
10
SUPERIOR RESOURCES LIMITED 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.
Figure 6. Image of uranium airborne radiometrics showing the
Hedleys Uranium Anomaly (bottom) compared with the Valhalla
Uranium Deposit at the same scale. Valhalla has resources of
25,000 to 30,000 tonnes of contained U3O8.
have caused the airborne uranium anomaly. Refer Figure 7 for the
section location.
Victor Project
The Victor Project comprises four exploration permits for
minerals covering a total area of 438 sq km. 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 Project area. This
area is relatively unexplored.
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, which may be one of the
best methods of targeting prospective areas for Mount Isa
style deposits.
Victor Project
Victor Project
Kingfisher
Mount Isa Style
(lead-zinc-silver)
Copper-cobalt
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.
Figure 9. Diagrammatic representation of the ‘leakage’ concept.
No work was carried out during the year on the Nicholson
and Victor Projects while the Company focussed on the
development of the Greenvale Project.
Figure 8. Hypothetical section through Hedleys Uranium showing
the possible location of the source of the uranium which may
11
ANNUAL REPORT 2021 Superior
Resources
Limited
ABN 72 112 844 407
ANNUAL FINANCIAL REPORT
For the year ended 30 June 2021
CONTENTS
Contents
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance
Consolidated Statement of Profit or Loss
Consolidated Statement of Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Tenement Schedule
Mineral Resources Statement
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SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
Company Background
Superior Resources Limited (Superior or the Company) is a Brisbane based ASX-listed company
(ASX:SPQ) exploring for lead-zinc-silver, copper, gold and nickel sulphide 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 has resulted in Superior holding a first-
class portfolio of properties for these deposits. Superior has an expanding portfolio of volcanogenic
massive sulphide (VMS) and porphyry copper-gold, gold and magmatic nickel sulphide properties in the
Greenvale area of north eastern Queensland with Mineral Resources defined for two properties.
Corporate Philosophy
Superior’s aim is to increase shareholder value through the discovery, development and acquisition of
significant mineral deposits and the Board maintains a strategy consistent with this aim.
Superior targets areas with potential for larger high-grade deposits of copper, lead-zinc-silver, gold and
nickel sulphide. These include the large Mount Isa style projects in northwest Queensland and the high
grade VMS deposits in northeast Queensland. The Company also holds a developing portfolio of gold,
nickel, cobalt and uranium projects within its northwest and northeast Queensland properties.
More recently, Superior has commenced a program of assessment and development of its 100%-owned
Steam Engine Gold Deposit and three advanced copper prospects at Greenvale.
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
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 its search for these types of deposits by
exploring around existing indications of mineralisation.
2
13
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
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
2021 (Report).
DIRECTORS
The following persons were Directors of the Company during the year and up to the date of this Report:
P H Hwang Managing Director
C A Fernicola Chairman and Company Secretary
Non-Executive Director
S J Pooley
PRINCIPAL ACTIVITIES
During the year the principal activity of the Group was the continued evaluation and expansion of the
Steam Engine Gold Deposit. The Group also continued exploration for copper-gold and magmatic nickel
sulphide deposits in northern Queensland, Australia. There were no significant changes in the nature of
the Company’s activities during the year and no significant changes in activity are anticipated.
DIVIDENDS
There were no dividends paid to members during the financial year (2020: $nil).
REVIEW OF OPERATIONS
The loss after tax for the year was $569,583 (2020: loss of $461,100).
Coronavirus (Covid19) Impact
The impact of the Coronavirus (COVID-19) pandemic up to 30 June 2021 has been financially positive
for the Group. The Queensland State and Australian Federal Governments have provided financial
support by suspending the requirement to pay tenement rental fees and providing cash support
(Jobkeeper and Cash Flow Boost) for continued employment of staff.
Summary
The principal activity of the Group during the full year period was exploration for gold, copper-gold and
nickel-copper-PGE deposits in northern Queensland, Australia. There were no significant changes in the
nature of the Group’s activities during the reporting period.
• Greenvale Project (VMS and porphyry copper, gold and nickel-cobalt)
o Developed a revised Mineral Resource Estimate on the Steam Engine Gold Deposit.
o Commenced and completed two drilling programs at the Steam Engine Gold Deposit (Stage 1
and Stage 2 drilling programs).
o Upgraded the Steam Engine Gold Deposit Mineral Resource Estimate, by 30% to 1.73 million
tonnes @ 2.2 g/t Au for 122,000 ounces, comprising 1:
Measured & Indicated: 850,000 tonnes @ 2.5 g/t Au (approx. 67,000 ounces); and
Inferred: 880,000 tonnes @ 1.9 g/t Au (approx. 55,000 ounces).
o Commenced and completed a Scoping Study on the Steam Engine Gold Deposit on the basis of
a mining and toll treatment operation.
o On the basis of a highly positive Scoping Study on the Steam Engine Gold Deposit, the Group
commenced a Feasibility Study to further define the economic models for the mining of the
deposit.
1 Refer to ASX announcement dated 27 April 2021
3
14
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
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
The following persons were Directors of the Company during the year and up to the date of this Report:
2021 (Report).
DIRECTORS
P H Hwang Managing Director
C A Fernicola Chairman and Company Secretary
S J Pooley
Non-Executive Director
PRINCIPAL ACTIVITIES
During the year the principal activity of the Group was the continued evaluation and expansion of the
Steam Engine Gold Deposit. The Group also continued exploration for copper-gold and magmatic nickel
sulphide deposits in northern Queensland, Australia. There were no significant changes in the nature of
the Company’s activities during the year and no significant changes in activity are anticipated.
DIVIDENDS
There were no dividends paid to members during the financial year (2020: $nil).
REVIEW OF OPERATIONS
The loss after tax for the year was $569,583 (2020: loss of $461,100).
Coronavirus (Covid19) Impact
The impact of the Coronavirus (COVID-19) pandemic up to 30 June 2021 has been financially positive
for the Group. The Queensland State and Australian Federal Governments have provided financial
support by suspending the requirement to pay tenement rental fees and providing cash support
(Jobkeeper and Cash Flow Boost) for continued employment of staff.
Summary
The principal activity of the Group during the full year period was exploration for gold, copper-gold and
nickel-copper-PGE deposits in northern Queensland, Australia. There were no significant changes in the
nature of the Group’s activities during the reporting period.
• Greenvale Project (VMS and porphyry copper, gold and nickel-cobalt)
o Developed a revised Mineral Resource Estimate on the Steam Engine Gold Deposit.
o Commenced and completed two drilling programs at the Steam Engine Gold Deposit (Stage 1
and Stage 2 drilling programs).
o Upgraded the Steam Engine Gold Deposit Mineral Resource Estimate, by 30% to 1.73 million
tonnes @ 2.2 g/t Au for 122,000 ounces, comprising 1:
Measured & Indicated: 850,000 tonnes @ 2.5 g/t Au (approx. 67,000 ounces); and
Inferred: 880,000 tonnes @ 1.9 g/t Au (approx. 55,000 ounces).
o Commenced and completed a Scoping Study on the Steam Engine Gold Deposit on the basis of
a mining and toll treatment operation.
o On the basis of a highly positive Scoping Study on the Steam Engine Gold Deposit, the Group
commenced a Feasibility Study to further define the economic models for the mining of the
deposit.
REVIEW OF OPERATIONS – (continued)
o Conducted a detailed field mapping and sampling program on the Dinner Creek Gold Lode at
the Steam Engine Gold Deposit.
o Prepared an 8,000m reverse circulation and diamond core drilling program on the Steam Engine
Gold Deposit, Bottletree Copper Deposit and Wyandotte Copper Deposit.
o Completed modelling of an Exploration Target on the Wyandotte Copper Deposit.
o Commenced modelling of a revised Mineral Resource Estimate for the Cockie Creek Copper
Deposit.
o Conducted 3-D re-modelling of Induced Polarisation (IP) geophysical survey data acquired over
the Bottletree Copper Prospect.
o Conducted data review and geophysical modelling of magnetic and VTEM survey data at the Big
Mag, Dido and Phantom Creek nickel-copper-PGE prospects.
o Conducted a detailed field mapping and sampling program at the Halls Reward copper and nickel
prospect area.
o Applied for three new exploration permits for minerals (EPMs) (Dido, Phantom Creek and Arthur
Range).
CORPORATE and COMMERCIAL
• The Group completed a capital raising campaign which commenced during the second calendar
Quarter of 2020 comprising a two-tranche placement and a non-renounceable rights issue.
Allotment and issue of 122,176,641 shares and 40,725,515 options was completed on 14 July 2020.
On 9 July 2020, 37,270,937 options were issued in relation to the placement of 111,812,810 shares
on 27 May 2020.
The Lead Manager of the share placement and rights issue received 15,000,000 options on 9 July
2020.
• During the year, 59,704,432 options with an exercise price of $0.006 were exercised. This raised
$357,876.
• The Company completed a capital raising via a private placement to sophisticated investors on 17
December 2020. Under the capital raising, 177,840,000 fully paid ordinary shares in the Company
were issued at an issue price of $0.0125 per new share to raise $2,223,000. A further 10,000,000
shares may be issued to certain Directors to raise $125,000, subject to shareholder approval.
CASH CONSERVATION
The Company’s Board continues to maintain the current cash conservation measures with respect to the
Company’s head office and administration.
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
Since the end of the financial year, the Group raised $1,258,090 (before costs) through the issue of
119,818,096 new shares at a value of $0.0105 per share. The new shares will be issued to sophisticated
investors under s.708(8) of the Corporations Act 2001 (Cth) (Corporations Act) and ASX Listing Rule
7.1A.
1 Refer to ASX announcement dated 27 April 2021
3
4
15
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR – (continued)
Other than the above, no matters or circumstances have arisen since 30 June 2021 that have significantly
affected, or may significantly affect:
(a)
(b)
(c)
the Group’s operations in future financial years, or
the results of those operations in future financial years, or
the Group’s state of affairs in future financial years.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive
for the Group up to 30 June 2021, it is not practical to estimate the potential impact, positive or negative,
after the reporting date. The situation is continually developing and is subject to measures imposed by
the Australian State and Federal Governments, such as maintaining social distancing requirements,
quarantine, travel restrictions and any economic stimulus that may be provided.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS FROM OPERATIONS
The Group is currently conducting a Feasibility Study on the prospects for mining and processing of gold
ore from the Steam Engine Gold Deposit. Based on the highly positive results of the recent Scoping
Study and the general gold price forecasts, the Board considers that there are reasonable prospects of
development of the deposit within the next two years.
The likelihood of realising forward gold prices is difficult. The actual price of gold at any point in the future
depends on numerous foreseeable and unforeseeable factors.
Results from exploration activities are difficult to predict in advance and are uncertain.
REGULATORY MATTERS
The Group’s operations are subject to substantial and significant regulatory control under various
Queensland State and Commonwealth legislation. Significant matters that are regulated include mining,
environmental, native title and real property. No matters of material concern have arisen in relation to
regulatory control up to the date of this Report.
INFORMATION ON DIRECTORS
Peter Henry Hwang B.Sc.(Hons), LLB, MAIG, MGSA, MQLS
Managing Director.
Experience and expertise
Mr Hwang has over 10 years’ experience as a gold, base metals and diamond exploration geologist and
20 years’ experience as a solicitor practicing in Queensland and national law firms specialising in
resources, commercial, M&A, infrastructure and native title law. He has extensive experience in advising
on the development and permitting of mining and major infrastructure projects, mining transactions as
well as resource sector mergers and acquisitions transactions.
Other current directorships
None.
Former directorships in last 3 years
None.
Special responsibilities
Managing Director.
Interests in SPQ shares and options
46,796,621 ordinary shares.
3,899,717 options over unissued ordinary shares.
16
5
SUPERIOR RESOURCES LIMITED SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR – (continued)
INFORMATION ON DIRECTORS – (continued)
Other than the above, no matters or circumstances have arisen since 30 June 2021 that have significantly
affected, or may significantly affect:
(a)
(b)
(c)
the Group’s operations in future financial years, or
the results of those operations in future financial years, or
the Group’s state of affairs in future financial years.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive
for the Group up to 30 June 2021, it is not practical to estimate the potential impact, positive or negative,
after the reporting date. The situation is continually developing and is subject to measures imposed by
the Australian State and Federal Governments, such as maintaining social distancing requirements,
quarantine, travel restrictions and any economic stimulus that may be provided.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS FROM OPERATIONS
The Group is currently conducting a Feasibility Study on the prospects for mining and processing of gold
ore from the Steam Engine Gold Deposit. Based on the highly positive results of the recent Scoping
Study and the general gold price forecasts, the Board considers that there are reasonable prospects of
development of the deposit within the next two years.
The likelihood of realising forward gold prices is difficult. The actual price of gold at any point in the future
depends on numerous foreseeable and unforeseeable factors.
Results from exploration activities are difficult to predict in advance and are uncertain.
REGULATORY MATTERS
The Group’s operations are subject to substantial and significant regulatory control under various
Queensland State and Commonwealth legislation. Significant matters that are regulated include mining,
environmental, native title and real property. No matters of material concern have arisen in relation to
regulatory control up to the date of this Report.
INFORMATION ON DIRECTORS
Peter Henry Hwang B.Sc.(Hons), LLB, MAIG, MGSA, MQLS
Managing Director.
Experience and expertise
Mr Hwang has over 10 years’ experience as a gold, base metals and diamond exploration geologist and
20 years’ experience as a solicitor practicing in Queensland and national law firms specialising in
resources, commercial, M&A, infrastructure and native title law. He has extensive experience in advising
on the development and permitting of mining and major infrastructure projects, mining transactions as
well as resource sector mergers and acquisitions transactions.
Other current directorships
Former directorships in last 3 years
None.
None.
Special responsibilities
Managing Director.
Interests in SPQ shares and options
46,796,621 ordinary shares.
3,899,717 options over unissued ordinary shares.
Carlos Alberto Fernicola B.Com., FCA, F Fin FCIS FGIA CTA Graduate Diploma Advanced
Accounting, Graduate Diploma Applied Finance and Investments, Graduate Diploma Corporate
Governance and Graduate Certificate Financial Planning.
Chairman.
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 SPQ shares and options
51,999,998 ordinary shares.
Simon James Pooley B.Sc., MAIM, GAICD
Non-Executive Director.
Experience and expertise
Mr Pooley has 30 years’ experience in mine development, operations and mineral exploration. He has
held senior industry positions that have demonstrated leadership and management of base and precious
metals exploration and mining operations, development of project assessment types including definitive
and bankable feasibility studies and their conversion into mining operations and managed teams
undertaking exploration evaluations and valuations, 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 SPQ shares and options
Nil.
COMPANY SECRETARY
The Company Secretary is Mr Carlos Alberto Fernicola, B.Com, FCA, FFin FCIS FGIA, CTA. 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.
5
6
17
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
The numbers of meetings of the company’s Board of Directors held during the year ended 30 June 2021,
and the numbers of meetings attended by each director were:
Board
Director
PH Hwang
CA Fernicola
SJ Pooley
Audit Committee
Director
CA Fernicola
SJ Pooley
Meetings
Eligible to attend
5
5
5
Meetings
attended
5
5
5
Meetings
eligible to attend
2
2
Meetings
attended
2
2
18
7
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
REMUNERATION REPORT (AUDITED)
The numbers of meetings of the company’s Board of Directors held during the year ended 30 June 2021,
and the numbers of meetings attended by each director were:
Board
Director
PH Hwang
CA Fernicola
SJ Pooley
Audit Committee
Director
CA Fernicola
SJ Pooley
Meetings
Eligible to attend
Meetings
attended
5
5
5
2
2
5
5
5
2
2
Meetings
eligible to attend
Meetings
attended
The Directors are pleased to present your Group’s 2021 remuneration report which sets out remuneration
information for Superior Resources Limited’s non-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 and Superior Resources Limited’s performance
(f) Non-executive director remuneration policy
(g) Voting and comments made at the company’s 2020 Annual General Meeting
(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
(a)
Directors and key management personnel disclosed in this Report
Non-executive and executive Directors
P H Hwang
C A Fernicola
S J Pooley
K J Harvey (retired 28 November 2019)
Other key management personnel
Name
C A Fernicola
(b)
Remuneration governance
The Board is responsible for:
Position
Company Secretary
•
•
the over-arching executive remuneration framework;
the operation of any established incentive plans which may 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.
The objective is to ensure that remuneration policies and structures are fair and competitive and aligned
with the long-term interests of the Group.
(c)
Use of remuneration consultants
The Group has not engaged the services of any remuneration consultants during the current or prior
financial years.
(d)
Executive remuneration policy and framework
The combination of base pay and superannuation make up the executive Directors’ total remuneration.
Base pay for the executive Directors is reviewed annually to ensure the executives’ 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; and
capital management.
7
8
19
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) – (continued)
Long-term incentives
In the event that the Board of Directors proposes to establish any long-term incentives for executive
Directors, the Board will obtain 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)
Relationship between remuneration and Superior Resources Limited’s performance
There is no direct link between remuneration, company performance and shareholder wealth. The
Group’s activities focus 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 those Directors. Non-executive Directors’ fees and payments are reviewed annually
by the Board.
Non-executive Directors’ fees are determined within an aggregate Directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum total pool currently stands at
$250,000 in aggregate plus statutory superannuation.
(g)
Voting and comments made at the company’s 2020 Annual General Meeting
The 2020 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 entitled to be received by the Directors and the
key management personnel of the Group for the current and previous financial year.
Consistent with the Board’s cash conservation measures that applied to the period up to February 2021,
the Directors received between 50% and 65% of their respective remuneration entitlement during the
reporting period.
20
9
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) – (continued)
REMUNERATION REPORT (AUDITED) – (continued)
Long-term incentives
In the event that the Board of Directors proposes to establish any long-term incentives for executive
Directors, the Board will obtain 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)
Relationship between remuneration and Superior Resources Limited’s performance
There is no direct link between remuneration, company performance and shareholder wealth. The
Group’s activities focus 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 those Directors. Non-executive Directors’ fees and payments are reviewed annually
by the Board.
Non-executive Directors’ fees are determined within an aggregate Directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum total pool currently stands at
$250,000 in aggregate plus statutory superannuation.
(g)
Voting and comments made at the company’s 2020 Annual General Meeting
The 2020 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 entitled to be received by the Directors and the
key management personnel of the Group for the current and previous financial year.
Consistent with the Board’s cash conservation measures that applied to the period up to February 2021,
the Directors received between 50% and 65% of their respective remuneration entitlement during the
reporting period.
2021
Name
Non-executive Directors
C A Fernicola
S J Pooley
Other key management
personnel
C A Fernicola (Company
Secretary)
Sub-total non-executive
Directors and other key
management personnel
Executive Directors
P H Hwang - Managing
Director
Totals
2020
Name
Non-executive Directors
C A Fernicola
K J Harvey1
S J Pooley2
Other key management
personnel
C A Fernicola (Company
Secretary)
Sub-total non-executive
Directors and other key
management personnel
Executive Directors
P H Hwang - Managing
Director
Short-term
benefits
Post-
employment
benefits
Share-
based
payments
Cash salary
and fees
$
Superannuation
$
Options
$
34,000
26,484
-
2,516
29,000
-
89,484
2,516
223,083
21,193
312,567
23,709
-
-
-
-
-
-
Short-term
benefits
Post-
employment
benefits
Share-
based
payments
Cash salary
and fees
$
24,000
21,918
12,785
Superannuation
$
Options
$
-
2,082
1,215
24,000
-
82,703
3,297
211,000
20,045
-
-
-
-
-
-
Total
$
34,000
29,000
29,000
92,000
244,276
336,276
Total
$
24,000
24,000
14,000
24,000
86,000
231,045
317,045
Totals
293,703
23,342
1 Retired 28 November 2019
2 Appointed 28 November 2019
9
10
21
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
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.
P H Hwang, Managing Director
• Term of employment agreement – indefinite commencing 22 April 2013.
• Base salary was reviewed in February 2021 and set at $240,000 plus superannuation and is 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 months’ notice in writing.
(j)
Details of share-based compensation and bonuses
There have been no share-based compensation and bonuses 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
Name
P H Hwang
C A Fernicola
S J Pooley
Balance at the
start of the
year
46,796,621
48,000,001
1,250,000
Received on
exercising
options
-
3,999,997
-
Net purchased
/ (sold)
-
-
(1,250,000)
Other changes
-
-
-
Balance at the
end of the year
46,796,621
51,999,998
-
Options Over Unissued Ordinary Shares
Name
P H Hwang
C A Fernicola
S J Pooley
Balance at the
start of the
year
3,899,717
3,999,997
-
Options
Exercised
-
(3,999,997)
-
All options are vested and exercisable.
(l)
Loans to key management personnel
Net purchased
/ (sold)
Other changes
-
-
-
-
-
-
Balance at the
end of the year
3,899,717
-
-
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
22
11
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) – (continued)
SHARES UNDER OPTION
(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.
P H Hwang, Managing Director
• Term of employment agreement – indefinite commencing 22 April 2013.
• Base salary was reviewed in February 2021 and set at $240,000 plus superannuation and is 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 months’ notice in writing.
(j)
Details of share-based compensation and bonuses
There have been no share-based compensation and bonuses 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
Received on
Name
P H Hwang
C A Fernicola
S J Pooley
start of the
year
46,796,621
48,000,001
1,250,000
exercising
options
3,999,997
/ (sold)
(1,250,000)
Net purchased
Other changes
Balance at the
end of the year
46,796,621
51,999,998
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Net purchased
Other changes
Balance at the
/ (sold)
end of the year
3,899,717
Options Over Unissued Ordinary Shares
Balance at the
start of the
Options
Exercised
Name
P H Hwang
C A Fernicola
S J Pooley
year
3,899,717
3,999,997
-
All options are vested and exercisable.
(3,999,997)
(l)
Loans to key management personnel
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.
-
-
-
-
11
92,996,452 options were issued during the year with an exercise price of $0.006 and an expiry date of
31 December 2021.
During the year and since year end, there were 59,704,432 shares issued on the exercise of options
granted.
As at the date of this Report, a total of 86,419,683 options are on issue.
INSURANCE OF OFFICERS
During the year the Group paid a premium of $19,778 to insure the Directors and Secretary of the
Company.
The risks insured include pecuniary orders and legal costs that may result from civil or criminal
proceedings that may be brought against the officers in their capacity as officers and any other payments
arising 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 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.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the Group are important.
Details of amounts paid or payable to the auditor for audit services provided during the year are outlined
in Note 20 to the financial statements. No non-audit services were provided during the year.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations
Act is set out on page 13.
AUDITOR
The auditor of the Group is William Buck (Qld).
This Report is made in accordance with a resolution of the Directors.
End of Remuneration Report
CA Fernicola
Chairman
Brisbane, 27th day of September 2021
12
23
ANNUAL REPORT 2021
AUDITOR’S INDEPENDENCE DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
UNDER S 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 2021, there have been:
-
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
- no contraventions of any applicable code of professional conduct in relation to
the audit.
William Buck (Qld)
ABN 21 559 713 106
Junaide Latif
Director
Brisbane, 27 September 2021
24
13
SUPERIOR RESOURCES LIMITED
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 Group have been adopted. The Board is committed to
administering the policies and procedures with openness and integrity, pursuing the true spirit of
corporate governance commensurate with the Company’s needs.
The Company has reviewed its corporate governance practices against the Corporate Governance
Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council.
A description of the Company’s current corporate governance practices is set out in the Company’s
corporate governance statement. This statement is available on the Company’s website and can be
viewed at www.superiorresources.com.au.
14
25
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2021
Operator fees received
Other income
Accounting and audit fees
Administration expenses
Depreciation and amortisation
Loss on disposal of Carnaby Resources Shares
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
Note
8
2021
$
2020
$
-
101,862
152,345
42,916
(26,116)
(527,967)
(3,790)
-
(15,427)
(98,145)
(27,810)
(417,357)
(2,352)
(37,802)
(15,125)
(155,915)
(569,583)
-
(461,100)
-
(569,583)
(461,100)
Cents
(0.04)
(0.04)
Cents
(0.06)
(0.06)
14
9
25
25
The accompanying notes form part of these financial statements.
26
15
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Operator fees received
Other income
Accounting and audit fees
Administration expenses
Depreciation and amortisation
Loss on disposal of Carnaby Resources Shares
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
Note
8
2021
$
2020
$
-
101,862
152,345
42,916
(27,810)
(417,357)
(2,352)
(37,802)
(15,125)
(155,915)
(26,116)
(527,967)
(3,790)
(15,427)
(98,145)
-
-
(569,583)
(461,100)
-
(569,583)
(461,100)
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share
Cents
(0.04)
(0.04)
Cents
(0.06)
(0.06)
14
9
25
25
Note
2021
$
2020
$
Loss for the year from continuing operations
attributable to owners of Superior Resources Limited
(569,583)
(461,100)
Items that will not be reclassified subsequently to profit or
loss:
Fair value gains / (losses) on financial assets at fair value
through other comprehensive income, net of tax
28,574
(114,497)
Other comprehensive income for the year, net of tax
28,574
(114,497)
Total comprehensive income / (loss) for the year, net
of tax, attributable to owners of Superior Resources
Limited
(541,009)
(575,597)
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
15
16
27
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total Current Assets
Non-Current Assets
Plant and equipment
Exploration expenditure
Other
Note
2021
$
2020
$
10
11
12
13
14
15
1,715,798
46,798
40,059
1,004,061
36,851
11,485
1,802,655
1,052,397
13,018
6,065,340
33,500
8,382
4,457,027
32,500
Total Non-Current Assets
6,111,858
4,497,909
Total Assets
LIABILITIES
Current Liabilities
Payables
Total Current Liabilities
Non-Current Liabilities
Payables
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
7,914,513
5,550,306
16
665,857
532,784
16
17
18
665,857
532,784
-
-
44,666
44,666
665,857
577,450
7,248,656
4,972,856
14,960,308
(3,123,316)
(4,588,336)
12,202,019
(3,210,410)
(4,018,753)
7,248,656
4,972,856
The accompanying notes form part of these financial statements.
28
17
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total
$
Balance at 30 June 2020
12,202,019
(3,210,410)
(4,018,753)
4,972,856
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
-
-
-
-
28,574
(569,583)
-
(569,583)
28,574
28,574
(569,583)
(541,009)
2,758,289
58,520
-
2,816,809
Balance at 30 June 2021
14,960,308
(3,123,316)
(4,588,336)
7,248,656
Total Non-Current Assets
6,111,858
4,497,909
Balance at 30 June 2019
10,975,213
(3,095,913)
(3,557,653)
4,321,647
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
-
-
-
-
(114,497)
(461,100)
-
(461,100)
(114,497)
(114,497)
(461,100)
(575,597)
1,226,806
-
-
1,226,806
Balance at 30 June 2020
12,202,019
(3,210,410)
(4,018,753)
4,972,856
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total Current Assets
Non-Current Assets
Plant and equipment
Exploration expenditure
Other
Total Assets
LIABILITIES
Current Liabilities
Payables
Total Current Liabilities
Non-Current Liabilities
Payables
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Note
2021
$
2020
$
16
665,857
532,784
10
11
12
13
14
15
16
17
18
1,715,798
1,004,061
46,798
40,059
36,851
11,485
1,802,655
1,052,397
13,018
8,382
6,065,340
4,457,027
33,500
32,500
7,914,513
5,550,306
665,857
532,784
-
-
44,666
44,666
665,857
577,450
7,248,656
4,972,856
14,960,308
(3,123,316)
(4,588,336)
12,202,019
(3,210,410)
(4,018,753)
7,248,656
4,972,856
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
17
18
29
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Cash flows from operating activities
Receipts from customers (GST inclusive)
Receipts from Government
Payments to suppliers and employees (GST
inclusive)
Interest received
Net cash inflow (outflow) from operating
activities
Cash flows from investing activities
Proceeds of disposal of investments
Payments for exploration expenditure
Payments for plant and equipment
Payments of security deposits
Net cash inflow (outflow) from investing
activities
Cash flows from financing activities
Share application moneys received
Proceeds on issue of shares
Payment of capital raising costs
Net cash inflow (outflow) from financing
activities
Note
2021
$
2020
$
-
101,725
156,809
42,831
(592,199)
(455,339)
137
85
24
(490,337)
(255,614)
-
(1,558,254)
(8,426)
(1,000)
190,683
(306,480)
(1,404)
(4,000)
(1,567,680)
(121,201)
3,270
2,922,081
(155,597)
50,325
1,272,588
(45,782)
2,769,754
1,277,131
Net increase (decrease) in cash held
Cash at beginning of financial year
Cash at the end of financial year
711,737
1,004,061
1,715,798
900,316
103,745
1,004,061
10
The accompanying notes form part of these financial statements.
30
19
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Net cash inflow (outflow) from operating
24
(490,337)
(255,614)
Cash flows from operating activities
Receipts from customers (GST inclusive)
Receipts from Government
Payments to suppliers and employees (GST
inclusive)
Interest received
activities
Cash flows from investing activities
Proceeds of disposal of investments
Payments for exploration expenditure
Payments for plant and equipment
Payments of security deposits
Net cash inflow (outflow) from investing
activities
Cash flows from financing activities
Share application moneys received
Proceeds on issue of shares
Payment of capital raising costs
Net cash inflow (outflow) from financing
activities
Note
2021
$
2020
$
-
101,725
156,809
42,831
(592,199)
(455,339)
137
85
-
(1,558,254)
(8,426)
(1,000)
190,683
(306,480)
(1,404)
(4,000)
(1,567,680)
(121,201)
3,270
2,922,081
(155,597)
50,325
1,272,588
(45,782)
2,769,754
1,277,131
Net increase (decrease) in cash held
Cash at beginning of financial year
Cash at the end of financial year
711,737
1,004,061
1,715,798
900,316
103,745
1,004,061
10
1. General Information
Superior Resources Limited (Company) is a company limited by shares, incorporated, and domiciled in
Australia. The Company’s shares are listed on the Australian Securities Exchange.
The registered office and principal 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, Australian Accounting Standards and Interpretations of the
Australian Accounting Standard Board and in compliance with International Financial Reporting
Standards (‘IFRS’) as issued by the International Accounting Standards Board. 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 27 September 2021.
(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 26.
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.
The acquisition method of accounting is used to account for business combinations by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated statement of profit or loss, statement of other comprehensive income, statement of changes
in equity and statement of financial position, respectively.
The accompanying notes form part of these financial statements.
19
20
31
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
(d)
Revenue recognition
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).
Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period
necessary to match them with the costs that they are intended to compensate. Government grants are
recognised when there are reasonable assurance that the funding conditions will be complied and the
grants will be received.
(e)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences and 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 utilise 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.
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.
32
21
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
2. Significant Accounting Policies (continued)
(d)
Revenue recognition
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).
Government grants relating to costs are deferred and recognised in profit or loss over the period
necessary to match them with the costs that they are intended to compensate. Government grants are
recognised when there are reasonable assurance that the funding conditions will be complied and the
Government grants
grants will be received.
(e)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences and 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 utilise 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.
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.
(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 financial instrument. Financial assets will be recognised on the date that
the Group becomes contractually bound to the relevant asset purchase or sale transaction (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 a
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.
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; and
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.
21
22
33
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
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 Group’s 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 (i.e. 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.
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.
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 (i.e. no practical ability to make unilateral decision to sell
the asset to a third party).
34
23
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
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 Group’s accounting policy.
Derecognition refers to the removal of a previously recognised financial asset or financial liability from
Derecognition
the statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e. 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.
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.
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 (i.e. no practical ability to make unilateral decision to sell
the asset to a third party).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
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 (e.g. 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.
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 (e.g. 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.
(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.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in the consolidated statement of profit or loss. When revalued assets are sold, it is the Group
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.
23
24
35
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
(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.
(m)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or 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.
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.
36
25
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
(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.
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
(l)
Dividends
date.
(m)
Earnings per share
Basic earnings per share
shares issued during the year.
Diluted earnings per share
Basic earnings per share is calculated by dividing the profit or 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
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.
2. Significant Accounting Policies (continued)
(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 flows.
(o)
Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick
leave, which are expected to be settled within 12 months after the end of the period in which the
employees render the related services, are recognised in respect of employees’ services up to the end
of the reporting period 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.
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 services, 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. Consideration
is given to expected future wage and salary levels, 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.
(p)
Parent entity financial information
The financial information for the parent entity, Superior Resources Limited, disclosed in note 27 has been
prepared on the same basis as the consolidated financial statements.
(q)
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.
25
26
37
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
(r) 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 (i.e. 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.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (i.e. 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 (i.e. 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-financial assets, the fair value measurement also takes into account a market participant’s ability
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.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-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.
(s)
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that a non-
financial 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 asset’s fair value
less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying
amount 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 (for example 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.
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.
38
27
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. Significant Accounting Policies (continued)
(t)
Coronavirus (Covid19)
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic
has had, or may have, on the Group based on known information. This consideration extends to the
nature of the activities of the group including mineral exploration, capital raising, staffing and geographic
regions in which the consolidated entity operates. Other than as addressed in specific notes, there does
not currently appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the Group unfavourably as at the
reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
3. New and Amended Accounting Standards
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
adopted.
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.
4. Financial Risk Management
The Group’s overall risk management plan seeks to minimise potential risks resulting from the
unpredictability of financial markets.
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 are exposed are credit risk,
liquidity risk, market risk and cash flow interest rate risk.
2. Significant Accounting Policies (continued)
(r) 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 (i.e. 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.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (i.e. 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 (i.e. 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-financial assets, the fair value measurement also takes into account a market participant’s ability
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.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-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.
(s)
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that a non-
financial 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 asset’s fair value
less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying
amount 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 (for example 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.
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.
27
28
39
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
4. Financial Risk Management (continued)
The Group holds the following financial assets and liabilities:
Financial assets
Cash and cash equivalents
Other receivables
Financial assets at fair value through other comprehensive
income
Financial liabilities
Trade and other payables
2021
$
2020
$
1,715,798
15,398
40,059
1,771,255
1,004,061
10,771
11,485
1,026,317
574,701
574,701
574,701
574,701
Risk management is carried out by the Group’s finance function under policies and objectives which have
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.
(a)
Credit risk
Credit risk is the risk of loss from a counterparty failing to meet its financial obligations to the Group.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognised financial assets is the carrying amount of those assets, net of any provision for
expected credit loss, as disclosed in the consolidated statement of financial position 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 parties with a minimum rating of ‘A’ are accepted.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference
to external credit ratings (if available).
Trade and other receivables
2021
$
15,398
15,398
2020
$
10,771
10,771
Other than cash and cash equivalents, the most significant 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.
(b)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to meet
obligations when due.
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.
40
29
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
4. Financial Risk Management (continued)
The Group holds the following financial assets and liabilities:
Financial assets
Cash and cash equivalents
Other receivables
Financial assets at fair value through other comprehensive
income
2021
$
2020
$
1,715,798
15,398
40,059
1,771,255
1,004,061
10,771
11,485
1,026,317
574,701
574,701
574,701
574,701
Financial liabilities
Trade and other payables
policies in place.
(a)
Credit risk
Risk management is carried out by the Group’s finance function under policies and objectives which have
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
Credit risk is the risk of loss from a counterparty failing to meet its financial obligations to the Group.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognised financial assets is the carrying amount of those assets, net of any provision for
expected credit loss, as disclosed in the consolidated statement of financial position 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 parties with a minimum rating of ‘A’ are accepted.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference
to external credit ratings (if available).
2021
$
15,398
15,398
2020
$
10,771
10,771
Trade and other receivables
Other than cash and cash equivalents, the most significant 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.
(b)
Liquidity risk
obligations when due.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to meet
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
4. Financial Risk Management (continued)
Maturities of financial liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings.
Contractual maturities of
financial liabilities
At 30 June 2021
Within
1 year
$
Trade and other payables
574,701
574,701
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash flows
Carrying
amount
$
-
-
$
-
-
$
-
-
$
$
574,701
574,701
574,701
574,701
At 30 June 2020
Trade and other payables
416,357
44,666
461,023
461,023
416,357
44,666
-
-
461,023
461,023
(c)
Market risk
The Group is exposed to equity securities price risk. This arises from securities investments held by the
Group in Deep Yellow Limited and classified on the statement of financial position as financial assets.
The Group is not exposed to any commodity price risk.
The table below summaries the impact of increases and decreases in the Deep Yellow Limited share
price on the Group’s total comprehensive income and loss for the year and on equity. The analysis is
based on the assumption that the share price had increased or decreased by 25% (2020: 25%) from
balance date fair value with all other variables held constant.
Impact on post-tax loss
2020
$
2021
$
Impact on reserves
2021
$
2020
$
+25%
-25%
+25%
-25%
+25%
-25%
+25%
-25%
-
-
-
-
10,015
(10,015)
2,871
(2,871)
Investment in
Deep Yellow
Limited
(d)
Cash flow and fair value interest rate risk
As the Group has no significant interest-bearing assets or borrowings, the Group’s income and operating
cash flows are not materially exposed to changes in market interest rates.
(e)
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 the respective carrying values as disclosed in the consolidated statement of financial
position and the notes to the financial statements.
29
30
41
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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.
Critical judgements in applying the entity’s accounting policies
The Group has capitalised non-current exploration expenditure of $6,065,340 (2020: $4,457,027).
This amount includes costs directly associated with exploration. These costs are capitalised as an
intangible asset until assessment of the permit is complete and the results have been evaluated. These
costs include employee remuneration, materials, drilling costs, delay costs, rental payments 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 Group’s interest in the tenements.
42
31
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
5. Critical Accounting Estimates and Judgements
6. Going Concern Principle
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.
Critical judgements in applying the entity’s accounting policies
The Group has capitalised non-current exploration expenditure of $6,065,340 (2020: $4,457,027).
This amount includes costs directly associated with exploration. These costs are capitalised as an
intangible asset until assessment of the permit is complete and the results have been evaluated. These
costs include employee remuneration, materials, drilling costs, delay costs, rental payments 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 Group’s interest in the tenements.
Notwithstanding that the Group incurred an operating loss after tax of $569,583 (2020: loss of $461,100)
and a net cash outflow from operating activities of $490,337 (2020: $255,614) 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 Group to continue as a going concern depends on 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;
cash flows from the sale of any of the Group’s assets; and
obtaining additional funding from capital raising activities.
The Directors acknowledge that to continue the exploration and development of the Group’s exploration
projects, the budgeted cash flows from operating and investing activities for the future will necessitate
further capital raisings.
At the date of this Report and having considered the above factors, the Directors consider 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 would
exist that would cast significant doubt on the Group’s ability to continue as 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
Government grants – Covid:
Jobkeeper
Cash flow boost
2021
$
137
55,800
45,925
101,862
2020
$
85
12,000
30,831
42,916
31
32
43
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
9. Income Tax
(a) Numerical reconciliation of income tax expense / (benefit)
to prima facie tax payable:
Profit (loss) from continuing operations before income
tax expense
Tax at the Australian tax rate of 26% (2020: 27.5%)
Tax effect of permanent differences
Temporary differences not recognised
Income tax expense / (benefit)
(b) Tax losses
2021
$
2020
$
(569,583)
(461,100)
(148,091)
(5,318)
(126,803)
(8,457)
153,409
-
135,260
-
Unused tax losses for which no deferred tax asset has been
recognised
Potential tax benefit @ 26% (2020: 27.5%)
14,771,759
3,840,657
12,424,397
3,416,709
(c) Franking credits
Franking credits available for use in subsequent
financial year
251,146
251,146
44
33
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
9. Income Tax
(a) Numerical reconciliation of income tax expense / (benefit)
to prima facie tax payable:
Profit (loss) from continuing operations before income
tax expense
Tax at the Australian tax rate of 26% (2020: 27.5%)
Tax effect of permanent differences
Temporary differences not recognised
Income tax expense / (benefit)
(b) Tax losses
recognised
Unused tax losses for which no deferred tax asset has been
Potential tax benefit @ 26% (2020: 27.5%)
(c) Franking credits
Franking credits available for use in subsequent
financial year
2021
$
2020
$
(569,583)
(461,100)
(148,091)
(126,803)
(5,318)
(8,457)
153,409
135,260
-
-
14,771,759
12,424,397
3,840,657
3,416,709
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
10. Cash and Cash Equivalents
Cash at bank and on hand
11. Trade and Other Receivables
CURRENT
Other receivables
Prepayments
12. Financial Assets
CURRENT
Deep Yellow Limited1
Investments in listed equity securities designated at fair value through
other comprehensive income
Total financial assets
1 Listed equity securities
2021
$
2020
$
1,715,798
1,004,061
15,398
31,400
46,798
10,771
26,080
36,851
40,059
11,485
40,059
11,485
251,146
251,146
The investment in listed equity securities are stated at fair value. AASB 13 Fair Value Measurement requires disclosure
of fair value measurements by the level of the following fair value measurement hierarchy:
1) Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
2) Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability.
3) Level 3 – Inputs for the asset or liability that are not based on observable market data.
The listed equity securities are traded in an active market, being the Australian Securities Exchange, and consequently
they are measured as a Level 1 instrument on the fair value hierarchy. The quoted market price, used to determine the
value of these securities, is the bid price at balance date.
33
34
45
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
13. Plant and Equipment
NON-CURRENT
Equipment / software – at cost
Accumulated depreciation
Movement in Plant and Equipment
Opening net book amount
Additions
Depreciation charge
Closing net book amount
14. Exploration Expenditure
Exploration phase property costs
Deferred geological, geophysical, drilling and other expenditure –
at cost
Non-current
Total capitalised exploration expenditure
The capitalised exploration expenditure carried forward above has
been determined as follows:
Opening balance
Expenditure incurred during the year
Tenement expenditure written-off
Derecognition of South 32 contributions
Closing balance
* Tenement written off due to surrender of the tenement.
15. Non-Current Assets – Other
Security deposits
2021
$
95,167
(82,149)
13,018
8,382
8,426
(3,790)
13,018
2020
$
86,740
(78,358)
8,382
9,330
1,403
(2,351)
8,832
2021
$
2020
$
6,065,340
6,065,340
4,457,027
4,457,027
4,457,027
1,706,458
(98,145)*
-
6,065,340
4,427,456
1,910,116
(155,915)
(1,724,630)
4,457,027
2021
$
2020
$
33,500
32,500
46
35
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
13. Plant and Equipment
16. Payables
NON-CURRENT
Equipment / software – at cost
Accumulated depreciation
Movement in Plant and Equipment
Opening net book amount
Additions
Depreciation charge
Closing net book amount
14. Exploration Expenditure
Exploration phase property costs
Deferred geological, geophysical, drilling and other expenditure –
at cost
Non-current
Total capitalised exploration expenditure
The capitalised exploration expenditure carried forward above has
been determined as follows:
Opening balance
Expenditure incurred during the year
Tenement expenditure written-off
Derecognition of South 32 contributions
Closing balance
* Tenement written off due to surrender of the tenement.
15. Non-Current Assets – Other
Security deposits
2021
$
95,167
(82,149)
13,018
8,382
8,426
(3,790)
13,018
2020
$
86,740
(78,358)
8,382
9,330
1,403
(2,351)
8,832
2021
$
2020
$
6,065,340
6,065,340
4,457,027
4,457,027
4,457,027
1,706,458
(98,145)*
-
6,065,340
4,427,456
1,910,116
(155,915)
(1,724,630)
4,457,027
2021
$
2020
$
33,500
32,500
Current liabilities
Trade payables and accrued expenses
Other payables – share application monies
Other payables – ATO
Other payables – related party (i)
Employee entitlements
Non-current liabilities
Other payables – related party (ii)
Total Payables
2021
$
2020
$
262,357
3,270
10,688
312,345
77,197
665,857
-
-
665,857
114,154
50,325
7,547
302,203
58,555
532,784
44,666
44,666
577,450
(i) These amounts represent the unpaid Directors’ remuneration that may be called within the next 12
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 Directors’ remuneration for periods to 30 June 2016.
17. Contributed Equity
2021
$
2020
$
1,381,335,791 (2020: 1,016,614,718) ordinary shares fully paid
14,960,308
12,202,019
(a)
Movements in ordinary share capital
Date
At 30 June 2019
31 July 2019
27 May 2020
25 June 2020
30 June 2020
9 July 2020
14 July 2020
13 October 2020
6 November 2020
6 November 2020
15 December 2020
17 December 2020
18 December 2020
19 December 2020
22 December 2020
23 December 2020
19 March 2021
30 June 2021
Details
Balance
Shares issued
Shares issued
Shares issued
Share issue cost
Shares issued
Shares issued
Options exercised
Options exercised
Shares issued
Shares issued
Shares issued
Shares issued
Shares issued
Shares issued
Options exercised
Options exercised
Share issue cost
Number of shares
Issue price
$
688,043,740
57,375,000
111,812,810
159,383,168
1,016,614,718
33,087,190
89,089,451
19,217,713
27,895,010
5,000,000
800,000
3,000,000
22,840,000
80,000,000
71,200,000
8,329,476
4,262,233
1,381,335,791
0.008
0.003
0.003
0.003
0.003
0.006
0.006
0.005
0.0125
0.0125
0.0125
0.0125
0.0125
0.006
0.006
35
36
$
10,975,213
459,000
335,438
478,150
(45,782)
12,202,019
99,262
267,268
114,956
167,370
25,000
10,000
37,500
285,500
1,000,000
890,000
49,977
25,573
(214,117)
14,960,308
47
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
17. Contributed Equity (continued)
(b)
Ordinary shares
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.
(c)
Share options
Date
Details
Balance
At 30 June 2019
Options expired
31 August 2019
Options issued
25 June 2020
Balance
At 30 June 2020
Options issued
9 July 2020
Options issued
9 July 2020
Options issued
9 July 2020
Options issued
14 July 2020
Options exercised
13 October 2020
Options exercised
6 November 2020
23 December 2020 Options exercised
Options exercised
19 March 2021
Balance
At 30 June 2021
Number of
options
113,560,925
(113,560,925)
53,127,663
53,127,663
15,000,000*
37,270,937
11,029,063
29,696,452
(19,217,713)
(27,895,010)
(8,329,476)
(4,262,233)
86,419,683
Weighted Average
Exercise Price
$
0.03
0.03
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
Expiry
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
* The lead manager to the share placement and rights issue undertaken in June 2020 received 15 million
options (during the year), having the same terms as options issued under the placement and rights issue
at no consideration. The total value for the options granted is $58,520.
(d)
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so that it 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. 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 Group.
The Group monitors capital based on cash flow requirements for corporate overheads, exploration and
evaluation expenditure. The Group’s exposure to borrowings as at 30 June 2021 totals $nil (2020: $nil).
The Group will continue to access capital markets and joint venture arrangements to satisfy anticipated
funding requirements.
The Group’s strategy to capital risk management is unchanged from prior years.
18. Reserves
Financial assets revaluation reserve
Share-based payment reserve
Total reserve
At beginning of year
Revaluation increment / (decrement)
Share-based payments
At end of year
48
37
2021
$
(3,181,836)
58,520
(3,123,316)
(3,210,410)
28,574
58,520
(3,123,316)
2020
$
(3,210,410)
-
(3,210,410)
(3,095,913)
(114,497)
-
(3,210,410)
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
(a)
Key management personnel compensation
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.
Short-term employee benefits
Post-employment benefits
19. Key Management Personnel Disclosures
2021
$
312,567
23,709
336,276
2020
$
293,703
23,342
317,045
Detailed remuneration disclosures are provided in the remuneration report on pages 8 to 11.
At 30 June 2021, $312,345 (2020: $346,869) remains payable.
(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 the Company and other key management personnel of the Group, including their related
parties, is set out below.
Balance at the
start of the
year
Options
Exercised
Name
Net purchased
/ (sold)
Other changes
Balance at the
end of the year
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
S J Pooley
3,899,717
3,999,997
-
-
(3,999,997)
-
-
-
-
-
-
-
3,899,717
-
-
All options have vested and are exercisable on or before 31 December 2021.
37
38
49
17. Contributed Equity (continued)
(b)
Ordinary shares
(c)
Share options
Date
Details
At 30 June 2019
Balance
31 August 2019
25 June 2020
Options expired
Options issued
At 30 June 2020
Balance
9 July 2020
9 July 2020
9 July 2020
14 July 2020
Options issued
Options issued
Options issued
Options issued
13 October 2020
6 November 2020
Options exercised
Options exercised
23 December 2020 Options exercised
19 March 2021
Options exercised
At 30 June 2021
Balance
Weighted Average
Exercise Price
Expiry
Number of
options
113,560,925
(113,560,925)
53,127,663
53,127,663
15,000,000*
37,270,937
11,029,063
29,696,452
(19,217,713)
(27,895,010)
(8,329,476)
(4,262,233)
86,419,683
$
0.03
0.03
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
* The lead manager to the share placement and rights issue undertaken in June 2020 received 15 million
options (during the year), having the same terms as options issued under the placement and rights issue
at no consideration. The total value for the options granted is $58,520.
(d)
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so that it 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. 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 Group.
The Group monitors capital based on cash flow requirements for corporate overheads, exploration and
evaluation expenditure. The Group’s exposure to borrowings as at 30 June 2021 totals $nil (2020: $nil).
The Group will continue to access capital markets and joint venture arrangements to satisfy anticipated
The Group’s strategy to capital risk management is unchanged from prior years.
funding requirements.
18. Reserves
Financial assets revaluation reserve
Share-based payment reserve
Total reserve
At beginning of year
Revaluation increment / (decrement)
Share-based payments
At end of year
2020
$
2021
$
58,520
(3,181,836)
(3,210,410)
(3,123,316)
(3,210,410)
(3,210,410)
28,574
58,520
(3,095,913)
(114,497)
(3,123,316)
(3,210,410)
-
-
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
19. Key Management Personnel Disclosures (continued)
(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.
2021
Balance at the
start of the
year
Received on
exercising
options
Name
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
S J Pooley
46,796,621
48,000,001
1,250,000
-
3,999,997
-
2020
Balance at the
start of the
year
Received on
exercising
options
Name
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
K J Harvey1
S J Pooley2
35,097,467
35,624,999
31,193,040
1,250,000
Net purchased
/ (sold)
Other changes
Balance at the
end of the year
-
-
(1,250,000)
-
-
-
46,796,621
51,999,998
-
Net purchased
/ (sold)
Other changes
Balance at the
end of the year
-
-
-
-
11,699,154
12,374,999
10,397,679
-
-
-
-
-
46,796,621
48,000,001
41,509,719
1,250,000
1 Retired 28 November 2019
2 Appointed 28 November 2019
20. 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
William Buck (Qld)
Review of financial report
Audit of financial report
21. Contingencies
2021
$
2020
$
-
17,000
5,000
15,000
20,000
-
15,000
32,000
There are no contingent liabilities affecting the Group as at the date of this Report (2020: nil).
22. Commitments
(a)
Exploration commitments
So as to maintain current rights to tenure of various exploration and mining tenements, the Group is
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 are as follows:
50
39
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
19. Key Management Personnel Disclosures (continued)
22. Commitments (continued)
(iii)
Share holdings
parties, is set out below.
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
2021
Name
Balance at the
Received on
start of the
year
exercising
options
Directors of Superior Resources Limited
Net purchased
Other changes
Balance at the
/ (sold)
end of the year
P H Hwang
C A Fernicola
S J Pooley
46,796,621
48,000,001
1,250,000
3,999,997
-
-
(1,250,000)
46,796,621
51,999,998
-
-
-
-
-
-
-
-
Net purchased
Other changes
Balance at the
/ (sold)
11,699,154
12,374,999
10,397,679
-
end of the year
46,796,621
48,000,001
41,509,719
1,250,000
2020
Name
Balance at the
Received on
start of the
year
exercising
options
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
K J Harvey1
S J Pooley2
35,097,467
35,624,999
31,193,040
1,250,000
1 Retired 28 November 2019
2 Appointed 28 November 2019
20. 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:
2021
$
2020
$
-
17,000
5,000
15,000
20,000
-
15,000
32,000
PKF Brisbane Audit
Audit or review of financial report
William Buck (Qld)
Review of financial report
Audit of financial report
21. Contingencies
22. Commitments
(a)
Exploration commitments
There are no contingent liabilities affecting the Group as at the date of this Report (2020: nil).
So as to maintain current rights to tenure of various exploration and mining tenements, the Group is
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 are as follows:
-
-
-
-
-
-
39
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
2021
$
2020
$
1,360,705
7,437,694
8,798,399
1,171,269
2,428,696
3,599,965
Outlays expressed as “Exploration Expenditure Commitments” 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 $33,500 (2020: $32,500) are currently held by the relevant
governing authorities to ensure compliance with granted tenement conditions.
23. Events Occurring After Balance Date
Since the end of the financial year, the Group raised $1,258,090 (before costs) through the issue of
119,818,096 new shares at a value of $0.0105 per share. The new shares will be issued to sophisticated
investors under s.708(8) of the Corporations Act and ASX Listing Rule 7.1A.
Other than the above, no matters or circumstances have arisen since 30 June 2021 that have significantly
affected, or may significantly affect:
(a)
(b)
(c)
the Group’s operations in future financial years, or
the results of those operations in future financial years, or
the Group’s state of affairs in future financial years.
24. Reconciliation of Loss After Income Tax to Net Cash Flows From Operating Activities
2021
$
2020
$
Loss for the year after income tax
(569,583)
(461,100)
Depreciation and amortisation
Tenement expenditure written off
Loss on disposal of Carnaby Resources Limited shares
Changes in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
(Increase) / decrease in prepayments
Increase/(decrease) in trade payables
Increase/(decrease) in other payables
Increase/(decrease) in employee entitlements
3,790
98,145
-
(4,627)
(5,320)
-
(31,383)
18,642
2,352
155,915
37,802
(10,771)
59,722
(74,512)
21,639
13,339
Net cash outflow from operating activities
(490,337)
(255,614)
40
51
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
25. Earnings (loss) Per Share
(a) Basic earnings (loss) per share
2021
Cents
2020
Cents
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.06)
(b) Diluted earnings (loss) per share
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.06)
2021
$
2020
$
(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
(569,583)
(461,100)
Diluted earnings(loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating diluted earnings per share
(569,583)
(461,100)
2021
Number
2020
Number
(d) Weighted average number of shares used as the
denominator
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
1,268,571,172
753,123,457
-
-
1,268,571,172
753,123,457
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 2021 and 30 June 2020. These shares under
option could potentially dilute basic earnings per share in the future.
52
41
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
25. Earnings (loss) Per Share
(a) Basic earnings (loss) per share
The parent entity within the Group is Superior Resources Limited.
2021
Cents
2020
Cents
26. Related Party Disclosures
(a)
Parent entity
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
(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
2020
2021
Investment
2021
$
2020
$
Subsidiaries
Superior Gold
Pty Ltd
Australia
Australia
100
100
1,000
1,000
(d)
Key management personnel
Disclosures relating to key management personnel are set out in Note 19.
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.06)
(b) Diluted earnings (loss) per share
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.06)
2021
$
2020
$
(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
(569,583)
(461,100)
Diluted earnings(loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating diluted earnings per share
(569,583)
(461,100)
2021
Number
2020
Number
(d) Weighted average number of shares used as the
denominator
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings (loss) per share
1,268,571,172
753,123,457
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
1,268,571,172
753,123,457
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 2021 and 30 June 2020. These shares under
option could potentially dilute basic earnings per share in the future.
41
42
53
ANNUAL REPORT 2021
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
27. Parent Entity Information
(a)
Summary financial information
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
Shareholders’ equity
Issued capital
Reserves
Accumulated losses
2021
$
2020
$
1,787,133
6,112,858
7,899,991
1,037,845
4,498,909
5,536,754
643,276
-
643,276
511,842
44,666
556,508
7,256,715
4,980,246
14,960,308
(3,123,316)
(4,580,277)
12,202,019
(3,210,410)
(4,011,363)
7,256,715
4,980,246
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
(568,914)
28,574
(540,340)
(460,286)
(114,497)
(574,783)
(b)
Contingent liabilities and commitments of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2021 or 30 June 2020.
The commitments of the parent entity are as disclosed at Note 22 for the Group.
54
43
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
27. Parent Entity Information
(a)
Summary financial information
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
Shareholders’ equity
Issued capital
Reserves
Accumulated losses
2021
$
2020
$
1,787,133
6,112,858
7,899,991
1,037,845
4,498,909
5,536,754
643,276
-
643,276
511,842
44,666
556,508
7,256,715
4,980,246
14,960,308
(3,123,316)
(4,580,277)
12,202,019
(3,210,410)
(4,011,363)
7,256,715
4,980,246
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
(568,914)
28,574
(540,340)
(460,286)
(114,497)
(574,783)
(b)
Contingent liabilities and commitments of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2021 or 30 June 2020.
The commitments of the parent entity are as disclosed at Note 22 for the Group.
DIRECTORS’ DECLARATION
In the Directors’ opinion:
1.
the financial statements and notes set out on pages 15 to 43, are in accordance with the
Corporations Act, including:
(a)
(b)
complying with Accounting Standards, the Corporations Regulations 2001 (Cth) and other
mandatory professional reporting requirements, and
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date, and
2.
having regard to note 6 to the financial statements, there are reasonable grounds to believe that
the Group 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 as
required by section 295A of the Corporations Act.
This declaration is made in accordance with a resolution of the Directors.
CA Fernicola
Chairman
Brisbane, 27th September 2021
43
44
55
ANNUAL REPORT 2021
Superior Resources Limited
Independent auditor’s report to the members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Superior Resources Limited (the Company
and its subsidiaries (the Group)), which comprises the consolidated statement of
financial position as at 30 June 2021, the consolidated statement of profit or loss,
consolidated statement of other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information, and the Directors’
declaration.
In our opinion, the accompanying financial report of the Group, is in accordance
with the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June
2021 and of its financial performance for the year 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. Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that
are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 6 in the financial report, which indicates that the Group
incurred a net loss after tax of $569,583 during the year ended 30 June 2021 and
had net cash outflows from operations of $490,337. As stated in Note 6, these events
or conditions, along with other matters as set forth in Note 6, indicate that a material
uncertainty exists that may cast significant doubt on the Group’s ability to continue
as a going concern. Our opinion is not modified in respect of this matter.
56
45
SUPERIOR RESOURCES LIMITED
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.
CARRYING VALUE OF EXPLORATION COSTS
Area of focus
Refer also to note 14
Capitalised exploration and evaluation assets represent
over 77% of the Group’s total assets. The carrying value
of exploration and evaluation assets is impacted by the
Group’s ability, and intention, to continue to explore and
evaluate these assets. The results of these
activities then determine the extent to which it may or
may not be commercially viable to develop and extract
identified reserves.
Judgement is required in evaluating management’s
application of the requirements of AASB 6 Exploration
for and Evaluation of Mineral Resources (“AASB 6”).
AASB 6 is an industry specific accounting standard
requiring the application of significant judgements,
estimates and industry knowledge. This includes
specific requirements for expenditure to be capitalised
as an asset and subsequent requirements which must
be complied with for capitalised expenditure to continue
to be carried as an asset.
Due to the significance of this asset and the subjectivity
involved in determining its carrying value and
recoverable amount, this is a key audit matter.
How our audit addressed it
Our audit procedures included:
— A review of the Directors’ assessment
of the criteria for the capitalisation of
exploration and evaluation expenditure
and their assessment of whether there
are any indicators of impairment to
capitalised costs;
— Test the additions to capitalised
expenditure for the year by agreeing a
sample of recorded expenditure for
consistency to underlying records,
capitalisation requirements of the
Group’s accounting policy and the
requirements of AASB 6;
— Considering the Group’s intention and
ability to continue activities necessary
to support a decision to develop the
exploration and evaluation assets,
which included an assessment of the
Group’s ability to fund such activities
and a review of their future budgets;
— Performing an assessment of whether
any indicators of impairment existed in
line with requirements of Australian
Accounting Standards, including a
review of the integrity of tenement title
status and total commitments value;
and
— We assessed the adequacy of the
Group’s disclosures in respect of the
carrying value of exploration costs.
46
57
ANNUAL REPORT 2021
Other Information
The Directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
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.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the Directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the Directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our independent auditor’s report.
58
47
SUPERIOR RESOURCES LIMITED
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30
June 2021.
In our opinion, the Remuneration Report of Superior Resources Limited, for the year ended 30 June
2021, complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
William Buck (Qld)
ABN 21 559 713 106
Junaide Latif
Director
Brisbane, 27 September 2021
48
59
ANNUAL REPORT 2021
Shareholder Information
The information set out below was applicable at 26 October 2021.
A. DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of equity security holders by size of holding:
Class of security - Ordinary Shares
Number of Holders
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
45
21
81
656
964
1,767
The number of holders holding less than a marketable parcel of ordinary shares was 371 and they held 6,603,566 securities.
B. EQUITY SECURITY HOLDERS
Total of Ordinary Shares on Issue 1,502,852,975.
Twenty largest equity security holders
Holders of fully paid ordinary shares (ASX:SPQ):
Holder
YARRAANDOO PTY LTD
MR GEOFFREY JAMES HARRIS
MR TERRY TAYLOR & MRS LYNDA LOUISE TAYLOR
HBH FAMILY PTY LTD
KJ HARVEY & ASSOCIATES PTY LTD
HAMILTON HAWKES PTY LTD
MR MARTIN JOHN ERIC HOLTMAN
AIHANMI PTY LTD
CHOICE CONSTRUCTIONS PTY LTD
MALACHITE AILURIDAE PTY LTD
JORLYN INVESTMENTS PTY LTD
ALTOR CAPITAL MANAGEMENT PTY
BNP PARIBAS NOMINEES PTY LTD
MR JOHN JOSEPH SCHOLL & MRS PATRICIA JOY SCHOLL
MR CARLOS ALBERTO FERNICOLA & MRS KERRIE ALISON FERNICOLA
BT PORTFOLIO SERVICES LIMITED
MR JOHN JOSEPH SCHOLL & MRS PATRICIA JOY SCHOLL
TERRA SEARCH PTY LTD
CAPITAL FINANCIAL ADVISERS PTY LTD
Ordinary Shares
Number
Percent
53,900,000
51,115,439
42,000,000
38,722,221
37,424,053
36,232,891
32,614,795
30,000,000
25,954,770
24,692,420
24,286,675
22,000,000
21,539,324
20,009,556
19,101,666
17,812,500
17,098,610
16,397,221
14,604,585
3.59
3.40
2.79
2.58
2.49
2.41
2.17
2.00
1.73
1.64
1.62
1.46
1.43
1.33
1.27
1.19
1.14
1.09
0.97
0.94
37.24
MR SIMON DAVID BEAMS & MR RICHARD HUTTON LESH & MR DAVID RANDAL JENKINS
14,194,442
Total
60
559,701,168
SUPERIOR RESOURCES LIMITED Unquoted equity securities
Unquoted Options
Number on issue
Number of Holders
Unlisted $0.006 options exercisable on or before 31 December 2021
84,720,595
139
Holders of greater than 20% of the unlisted equity securities
There are no holders with greater than 20% of the unlisted equity securities of Superior Resources Limited at the date of this report.
C. SUBSTANTIAL HOLDERS
Substantial holders of the Company’s ordinary securities are set out below.
Holder of Relevant Interest
Registered Holder
MR GEOFFREY JAMES HARRIS (6.99%)
YARRAANDOO PTY LTD
MR GEOFFREY JAMES HARRIS
D. VOTING RIGHTS
The voting rights attaching to each class of equity securities are set out below:
a. Ordinary shares
Ordinary Shares
Number
Percent
53,900,000
51,115,439
3.59
3.40
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.
61
ANNUAL REPORT 2021 S UP ERIOR RESOURCES LIMITED
Tenement Schedule
Current interests in tenements held by the Company and its subsidiaries as at 25 October 2021 are set out below.
All tenements are located within Queensland. Exploration Permits for Minerals (EPM) are specified for all minerals other than coal.
Tenement
Name
Project
Date of Grant
Date of Expiry
Area
Holder
Northwest Queensland
EPM15670
EPM18203
EPM19097
EPM19214
EPM26720
Hedleys 2
Hedleys South
Tots Creek
Scrubby Creek
Victor Extended
Northeast Queensland
Nicholson
Nicholson
21 Aug 06
20 Aug 26
29 May 14
28 May 24
Victor
Victor
Victor
27 Nov 14
26 Nov 24
27 Nov 14
26 Nov 24
30 Aug 18
29 Aug 23
186 km2
114 km2
108 km2
90 km2
60 km2
EPM18987
EPM19247
EPM25659
EPM25691
EPM26165
EPM26751
EPM27754
EPM27755
EPM27932
Cockie Creek
Cassidy Creek
Dinner Creek
Wyandotte
Cockie South
Greenvale
Greenvale
Greenvale
Greenvale
Greenvale
25 Sep 13
24 Sep 23
153 km2
28 May 13
27 May 23
48 km2
21 Apr 15
20 Apr 25
192 km2
7 Apr 15
6 Apr 25
30 Jan 17
29 Jan 22
Twelve Mile Creek
Greenvale
28 May 19
27 May 24
Dido
Arthur Range
Greenvale
Greenvale
12 Aug 21
11 Aug 26
12 Aug 21
11 Aug 26
Phantom Creek
Greenvale
Application
90 km2
108 km2
258 km2
300 km2
300 km2
300 km2
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Abbreviations:
SPQ
EPM
Superior Resources Limited
Exploration Permit for Minerals
62
Mineral Resources Statement
Mineral Resources as at 30 June 2021
Project
Steam Engine
Gold Deposit
Notes:
Resource
category
Measured
Indicated
Inferred
Total
Cut-off
grade
(g/t Au)
0.5
0.5
0.5
0.5
Quantity
(tonnes)
Average Grade
(g/t Au)
Au
(ounces)
240,000
610,000
880,000
1,730,000
2.6
2.4
1.9
2.2
20,000
47,000
55,000
122,000
Notes
1, 2
1, 2
1, 2
1, 2
1. Steam Engine Gold Deposit lies 500 metres south of the Gregory Development Road within EPM26165 “Cockie South”,
approximately 210km west northwest of Townsville, Queensland, Australia.
2. Competent person – Mineral Resources, Mr Kevin Richter (MAusIMM).
Steam Engine Prospect
Information in relation to the Steam Engine Gold Deposit Mineral Resource Estimate and related information were originally reported
on the ASX Market Announcements Platform on 22 March 2021 (“Steam Engine revised Mineral Resource Estimate: JORC Measured
and Indicated Resource upgraded by 31%”) and complies with the guidelines of the 2012 JORC Code. Other than drill assay results
received after 22 March 2021, the Company confirms that it is not aware of any new information that materially affects the information
as originally reported. All material assumptions and technical parameters on which the Mineral Resource Estimate is based, continue
to apply and have not materially changed. The effect of drill sample assay results received after 22 March 2021 is a likely increase to
the total Mineral Resources of the Steam Engine Gold Deposit. However, the degree to which the Mineral Resource is increased or
decreased will not be known until a recalculation of the Mineral Resource Estimate is made.
Information contained in this report that relates to the Steam Engine Gold Deposit Mineral Resource Estimate is based on information
compiled by Mr Kevin Richter, an employee of Superior Resources Limited, who is a Member of the Australasian Institute of Mining
and Metallurgy. Mr Richter 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 Richter consents to the inclusion
in this report of the matters based on his information in the form and context in which it appears.
63
ANNUAL REPORT 2021 Mineral Resources comparison 2020 to 2021
Project
Steam Engine
Gold Deposit
Resource
category
Measured
Indicated
Inferred
Total
Quantity
(tonnes)
-
370,000
900,000
1,270,000
2020
Average
grade
(g/t Au)
-
2.5
2.2
2.3
Au
(ounces)
-
30,000
64,000
94,000
Quantity
(tonnes)
240,000
610,000
880,000
1,730,000
2021
Average
grade
(g/t Au)
2.6
2.4
1.9
2.2
Au
(ounces)
20,000
47,000
55,000
122,000
The revised Steam Engine Mineral Resource Estimate, as published on 22 March 2021, resulted in an increase of 240,000 tonnes
of Measured category, an increase of 240,000 tonnes of Indicated category and a decrease of 20,000 tonnes of Inferred category
Resources. The total Resource increased by 460,000 tonnes with a 0.01 g/t Au reduction in average grade.
Mineral Resource and Ore Reserve Governance
The Mineral Resource Estimates as 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 this report has been reviewed by a suitably qualified Competent Person.
Reporting of Exploration Results
The reporting of some exploration results in this report reflects information that was originally reported in market announcements as
referenced in various parts of this report. The Company confirms that it is not aware of any new information or data that materially
affects the information included in the relevant original market announcement.
Other information contained in this report that relates to exploration results is based on information compiled by Mr Kevin Richter,
an employee of Superior Resources Limited, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Richter
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 Richter consents to the inclusion in this report of the matters based on
his information in the form and context in which it appears.
Information contained in this report that relates to Exploration Activities is based on information evaluated by Mr Peter Hwang,
an executive director and shareholder of Superior Resources Limited and a Member of the Australian Institute of Geoscientists.
Mr Hwang has sufficient experience which is relevant to this style of mineralisation and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person under the 2012 edition of the “Australian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr Hwang consents to the inclusion in this report of the matters based on
the information in the form and context in which it appears.
64
SUPERIOR RESOURCES LIMITED 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
T: 07 3847 2887
E: manager@superiorresources.com.au
superiorresources.com.au