2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
/
T
A
L
I
S
M
A
N
M
I
N
I
N
G
L
I
M
I
T
E
D
T
R
O
P
E
R
L
A
U
N
N
A
Historic Millers Shaft at the Blind Calf Prospect (EL 8719)
Corporate Directory
Directors
Mr Kerry Harmanis
Mr Jeremy Kirkwood
Mr Brian Dawes
Mr Peter Benjamin
Company Secretary
Mr Alex Neuling
Non-Executive Chairman
(appointed 15 July 2020)
Non-Executive Director
Non-Executive Director
Non-Executive Director
Registered & Principal Office
Suite 1 Ground Level
33 Colin Street
West Perth, Western Australia 6005
Telephone +61 8 9380 4230
Facsimile +61 8 9382 8200
Website: www.talismanmining.com.au
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth, Western Australia 6000
Telephone +61 8 9227 7500
Facsimile +61 8 9227 7533
Share Registry
Link Market Services
Level 12, QV1 Building
250 St Georges Terrace
Perth, Western Australia 6000
Telephone +61 8 9211 6670
Securities Exchange Listing
Australian Securities Exchange Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth, Western Australia 6000
ASX Code: TLM
1
2021 Annual Report
Table of Contents
Letter from the Chairman
Review of Operations
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Independent Auditors’ Report
Financial Statements
Notes to the Consolidated Financial Statements
Directors’ Declaration
Additional Securities Exchange Information
3
5
15
20
26
27
31
35
59
60
2 Talisman Mining Limited
Letter from
the Chairman
Dear Talisman Shareholder,
I am pleased to present Talisman’s 2021 Annual Report
and to reflect on what has been a year of consolidation,
emerging opportunity, active exploration and, at times,
frustration for our company.
One of the key highlights of the year was the receipt in April
2021 of our first royalty payment from Mineral Resources,
the operator of the Wonmunna iron ore mine in the Pilbara
region, where we are entitled to an uncapped 1% gross
revenue royalty on all metals produced and sold on a
monthly basis.
During the second half of the 2021 financial year, Mineral
Resources ramped up production at Wonmunna to its
currently designed rate of 5 million tonnes per annum. As a
result, Talisman received $1.3 million in royalty payments for
the first three months of sales.
While the amount received under this royalty is sensitive
to iron ore prices, which have fallen recently, the potential
ongoing royalty stream puts Talisman in a unique funding
position for a junior exploration company – with a strong
cash position ($9.9 million at year-end), a streamlined
asset base and an ongoing income stream to underpin our
exploration and growth endeavours.
In my inaugural Chairman’s Letter last year, I outlined a two-
pronged strategy to pursue exploration at our prospective
exploration assets in the Lachlan Fold Belt in NSW in parallel
with a search for new growth opportunities in the gold and
base metals sector.
During the year, our business development team
exhaustively reviewed a wide range of potential acquisition
or farm-in opportunities. However, we have yet to find one
that meets our stringent hurdles in terms of being value-
accretive and delivering genuine long-term returns for our
shareholders. Our team is continuing the search.
In parallel with this, we commissioned an independent
geological review of our Lachlan copper-gold project in
NSW by the highly respected consulting geologist Dr Jon
Hronsky OAM. This confirmed that our Lachlan project is well
positioned within one of the world’s most highly endowed
metallogenic mineral provinces in the Cobar Basin of NSW.
His review resulted in the identification of a number of
compelling new gold and base metal conceptual targets
both on existing tenure and an adjoining vacant ground. As
result, Talisman secured additional ground to cover these
targets, increasing our overall landholding in the region to
approximately 4,000 square kilometres.
During the year, we also simplified the commercial
arrangements relating to the Lachlan copper-gold project
by making a $1.1 million cash payment to a former farm-
in partner to secure 100% ownership of a number of
tenements. Separately, we divested our non-core NSR
royalties over the Springfield copper-gold project and
the Sinclair and Waterloo nickel projects, realising cash
proceeds of $1.75 million.
These transactions have streamlined our asset base and
underlined our focus on our core NSW exploration assets.
Despite the considerable challenges associated with the
escalation and subsequent waves of the COVID-19 pandemic
in Australia – particularly the outbreaks in NSW and Victoria
which resulted in border closures and significant restrictions
on the movement of people and equipment across Australia
– we were able to complete a number of field exploration
programs during the year.
These included geochemical mapping and sampling,
Reverse Circulation (RC) percussion drill programs targeting
gold-in-soil anomalies, follow-up diamond drilling
programs at the Lucknow gold project and down-hole
electromagnetic surveys at our base metal projects.
Unfortunately, due to the significant increase in exploration
activities in NSW (and Australia generally), turnaround times
for assay results have increased significantly across the
industry.
At the time of finalising this report, we were awaiting assay
results from our maiden drilling program to test the large
Cumbine soil anomaly, a new gold target identified by our
exploration team from a ground-up review of historical
and new data. We were also assay awaiting results from
RC drilling at the Noisy Ned copper-lead-zinc prospect and
we had submitted drilling applications for a maiden RC drill
program to test the Carpina North gold prospect.
Elsewhere within the package, we reported results from
limited RC drilling at the Blind Calf copper prospect and
completed down-hole EM surveys (with results awaited)
and completed our maiden diamond drilling program at the
Lucknow gold project.
We will shortly commence an extensive VTEM survey
over our entire tenement package in order to further
evaluate some of the conceptual target areas identified by
Dr Hronsky.
3
2021 Annual Report Thanks to our robust balance sheet and potential ongoing
income stream from the Wonmunna royalty, we are in a solid
position to further accelerate exploration and, in the event of
a discovery, rapidly scale-up our drilling.
In conclusion, I would like to extend my sincere thanks to
Shaun Vokes for his diligent stewardship of the Company
during the year, including the safe execution of our
exploration programs in NSW, the consolidation of our key
assets and the recruitment of additional talented individuals
to our exploration team – including highly experienced
geologist Russell Gregory as Exploration Manager.
The Board was unanimous in endorsing Shaun’s
appointment as Chief Executive Officer on a fixed-term
basis in September, having done a great job as Interim CEO
since September last year.
I would also like to thank my fellow Directors, as well as
the Company’s small but loyal and hard-working team of
employees and contractors for their efforts throughout the
year. My sincere thanks also to my fellow shareholders for
your continued support.
L e t t e r f r o m t h e C h a i r m a n ( C O N T I N U E D )
I am confident Talisman has the quality of tenure and
sufficient cash to make a breakthrough discovery – which
we all know has the potential to deliver outstanding
returns to our shareholders. As the flow of results begins to
increase and the pace of our exploration begins to step-up,
we are all looking forward to making strong progress in the
year ahead.
Yours faithfully,
Kerry Harmanis
Chairman
4 Talisman Mining Limited
Review of
Operations
Overview
During the past financial year, Talisman Mining Limited
(Talisman or the Company) continued to progress
exploration activities at its highly prospective Lachlan
Copper Gold (Lachlan Project) and Lucknow Gold (Lucknow
Project) Projects, both in New South Wales (NSW), despite
the ongoing impacts of the global COVID-19 pandemic.
In addition, the Company’s business development team
continued to review new potential precious and base metals
growth opportunities in Australia.
Talisman maintained rigorous health and safety
protocols across its exploration sites and corporate office
throughout the year to ensure the safety and well-being
of all employees and contractors whist continuing to
undertake exploration activities. In response to the recent
COVID-19 outbreaks on the Australian east coast, Talisman
implemented additional protocols including regular
COVID-19 testing and accommodating and/or sourcing
our site exploration workforce from local regional areas
wherever practicable to minimise any potential COVID-19
impacts to our workforce and our local communities. The
Company continues to monitor the incidence of COVID-19
across Australia with respect to potential impacts on its
current work activities.
During the second half of calendar 2020 the Company
announced several key changes to both its board of
directors and senior management. Kerry Harmanis, one
of Western Australia’s most successful mining executives
and a major shareholder and strong supporter of Talisman
since 2007, succeeded Jeremy Kirkwood as Chairman of
Talisman, with Mr Kirkwood remaining on the board as a
Non-Executive Director. Additionally, in November 2020,
both Karen Gadsby and Dan Madden resigned from the
Talisman board to pursue other interests. Experienced
mining executive Shaun Vokes was appointed Interim Chief
Executive Officer in September 2020 and assumed the Chief
Executive Officer’s role on a permanent fixed-term basis in
July 2021.
In April 2021 the Company announced that it had received
the first royalty payment from the operator of the
Wonmunna Iron Ore Mine (Wonmunna) in the Pilbara region
of Western Australia. Talisman is entitled to an uncapped
1% gross revenue royalty on all metals produced and
sold from Wonmunna monthly. During the last half of the
financial year the operator of Wonmunna progressed iron
ore production to its currently designed 5 million tonnes per
annum rate, and as a result, Talisman’s received $1.3 million
in royalty payments for the first 3 months of iron ore sales.
The potential ongoing Wonmunna royalty revenue stream
places the Company in a unique funding position for a junior
exploration company, allowing Talisman to aggressively
pursue ongoing systematic exploration at its Lachlan and
Lucknow Projects.
Also, during the past financial year, Talisman undertook
to consolidate ownership of tenure associated with its
Lachlan Project and rationalise its non-core asset portfolio
via the sale of three net smelter return (NSR) royalties. The
Company announced in April 2021 that it had simplified its
commercial arrangements on a number of Lachlan Project
tenements by making a $1.1 million cash payment to its farm-
in partner to secure 100% ownership of these tenements.
Separately, the Company also divested its NSR royalties
over the Springfield Copper Gold Project, and the Sinclair
and Waterloo Nickel Projects which realised cash proceeds
of $1.75 million. These transactions allowed the Company to
streamline its asset portfolio, crystallising value from non-
core assets and further strengthening its financial position
while at the same time providing it with a clear exploration
focus at the Lachlan Project.
In May 2021 the Company announced the results of an
independent review of mineral prospectivity within the NSW
Cobar Basin. The review confirmed that Talisman’s Lachlan
Project tenement portfolio is well positioned within what
is a well-endowed metallogenic province and identified
several compelling gold and base metal conceptual targets
on existing tenure. The review also identified a number
of potential opportunities on vacant ground which the
Company subsequently secured. Talisman now has control
of approximately 4,000km2 of exploration tenure in this
highly prospective exploration region.
During the financial year, exploration activities progressed
at the Lachlan Project with several geochemical/mapping
programs completed and a number of reverse circulation
(RC) percussion drill programs undertaken targeting
gold-in-soil anomalies and down-hole electromagnetic
base metals conductors. Unfortunately, due to a significant
increase in exploration activities in NSW (and in Australia
generally) turnaround times for assay results have
significantly increased which has delayed field activities and
follow-up work on several targets.
The Company also completed its maiden drilling program
at the Lucknow Project during the past financial year. Whilst
the drilling intersected low-grade gold mineralisation in
the targeted area, a subsequent structural and geological
interpretation suggested that the ultramafic stratigraphy
and prospective contact has been offset to the north-west
by a sinistral fault. The Company is currently progressing a
review of this interpretation to identify potential future drill
targets at Lucknow targeting this north-western corridor.
5
2021 Annual Report r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
Lachlan Copper-Gold Project
Talisman’s Lachlan Project area covers over 4,000km2 of
exploration tenure (including both granted tenure and
tenure under application) in the highly prospective Cobar
Basin region of NSW (Figure 1). The Cobar Basin is a well-
established mining district with several large gold and base
metal mines including Aurelia Metal’s Peak and Hera Mines,
Glencore’s CSA Mine and CBH’s Endeavour Mine. The area
also hosts Aurelia Metal’s recent Federation polymetallic
discovery and Peel Mining’s Mallee Bull, Wagga Tank and
Southern Nights discoveries.
Talisman’s exploration strategy at the Lachlan Project is
focused on an extensive strike extent along large-scale
regional geological structures which are critical to the
formation of mineral deposits in the Cobar Basin. Proximity
to the margins of major basin faults as well as deep seated
regional basement lineament structures and zones of high
strain (e.g., the eastern Cobar Basin margin) are an important
factor for mineral deposit formation and are considered to be
priority target areas for exploration.
figure 1: Talisman’s Lachlan Cu-Au Project, showing key tenements, nearby mines and prospects and underlying geology.
6 Talisman Mining Limited
r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
Major basement lineaments within the region show a
strong control on mineralisation with numerous deposits
occurring at the intersections of these lineaments with
major structures. It is considered that the area of Talisman’s
Lachlan Project has the potential to host a variety of
deposit types including low sulphation epithermal gold and
base metal deposits (similar to the Mineral Hill deposit),
structurally controlled gold deposits (similar to the Mt Boppy
deposit), structurally controlled copper deposits (similar to
the Blind Calf deposit), Cobar style gold and base metal
deposits, as well as skarn deposits.
The Company has identified multiple gold and base metal
mineralisation exploration targets at its Lachlan Project and
systematic exploration activities including reconnaissance
mapping, soil sampling, RC percussion drilling and
geophysical surveys progressed during the financial year
testing high-priority targets.
Cumbine Prospect (EL8414- Talisman 80%)
The Cumbine Gold Prospect (Cumbine) was initially
identified by Talisman following a review of historical wide-
spaced soil sampling1 and RC percussion drilling conducted
by previous explorers. Historical RC percussion drilling at
Cumbine intersected significant gold mineralisation
(3 metres at 3.2 g/t Au in TMW0051) while more recent RC
percussion drilling by Talisman also intersected significant
gold mineralisation including 7 metres at 1.95 g/t Au from
109m in CURC00032.
During the second quarter of the financial year Talisman
completed a two-hole 488m reconnaissance RC percussion
drilling program at Cumbine to provide further information
on the potential scale of the exploration opportunity.
This drilling intersected fine grained volcaniclastic and
medium grained felsic volcanic lithologies as well as gold
mineralisation in both holes (including 13 meters at 1.11 g/t Au
from 238m in CURC0006)3. The gold mineralisation is hosted
predominantly within a medium grained felsic volcanic
lithology and has a strong association with quartz veining,
pyrite and sericite alteration.
Based on these encouraging results, Talisman subsequently
undertook a mapping and infill soil sampling program the
results of which delineated a coherent +20ppb gold anomaly
covering a total strike extent of 650 metres (Figure 2)4. The
sampling also identified several smaller anomalies to the
east and west of the main central anomaly.
figure 2: Cumbine Gold Prospect showing gold-in-soil anomaly over 1VD magnetic image, historic drilling1,2 and completed RC drilling.
1 NSW DIGS report R00030150
2 Refer Talisman ASX announcement dated 30 November 2018 for full details including JORC tables.
3 Refer Talisman ASX announcement dated 01 December 2020 for full details including JORC tables.
4 Refer Talisman ASX announcement dated 19 April 2021 for full details including JORC tables.
7
2021 Annual Report The size and overall tenor of the Cumbine soil anomaly
together with the results from past drilling, provided
Talisman with sufficient positive data to proceed with a
13-hole 2,424-metre RC percussion drilling programme.
This drill programme was subsequently completed after the
end of the financial year (Figure 2)5. Drilling intersected felsic
volcanic and sedimentary lithologies as well as sericite-silica
alteration, quartz veining and disseminated pyrite in several
holes. This style of alteration is indicative of mineralising
hydrothermal fluids moving through the rock mass. All
samples have been submitted for analysis and assay are
pending.
Noisy Ned Prospect (EL8677)
During the financial year, Talisman completed additional
interpretive work on earlier exploration activities undertaken
at the Noisy Ned Prospect, which had previously identified
a strong base metal anomaly from auger sampling as well
as copper, lead and zinc mineralisation in bedrock from
previous RC percussion drilling2.
As a result of this analysis, Talisman identified a significant
high-priority copper anomaly and subsequent to the end
of the financial year, commenced a 9-hole RC percussion
drilling programme targeting the strongest part of the
copper anomalism and bedrock mineralisation (Figure 3)5.
r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
Carpina North and Plantation Prospects (EL8571)
As part of Talisman’s continued systematic regional
exploration activities, extensive campaigns of soil
geochemical sampling were undertaken during the financial
year over areas mapped as having suitable regolith profiles.
This rapid and cost-effective sampling technique provides
Talisman with an efficient mechanism to assist vectoring of
potential targets suitable for follow-up drilling.
During the financial year, Talisman completed an in-fill
soil sampling program at the Carpina Ridge North Gold
Prospect (Carpina North). The program was undertaken on
a 100m x 50m sample spacing with a total of 185 samples
collected, sieved, and the minus 177-micron fraction
submitted for gold and multi-element analysis using an
aqua regia digest and an ICP-MS finish.
The sample assay results delineated a +20ppb gold anomaly
covering a total area of 1km x1.5km (Figure 4). Given the
significant scale and tenor of this anomaly, subsequent to
the end of the financial year, Talisman submitted a drilling
application to the NSW Resources Regulator for a 20-hole
RC percussion drill program totalling 3,200 metres5 with
drilling to commence in the 2021/22 financial year as soon as
approval is granted.
figure 3: Noisy Ned Cu prospect showing zinc and copper
anomalism, previous RC percussion drilling and proposed RC
percussion drill-hole locations.
figure 4: Carpina North gold prospect showing soil anomaly and
proposed RC percussion drill-hole locations.
In addition to the Carpina North Prospect, during the
financial year Talisman also completed a soil sampling
program at the Plantation Gold Prospect (Plantation)
utilising a 200m x 50m sample spacing. A total of 550
samples were collected, sieved, and the minus 177-micron
fraction submitted for gold and multi-element analysis using
an aqua regia digest and an ICP-MS finish.
5
Refer Talisman ASX announcement dated 28 July 2021 for full details including JORC tables.
8 Talisman Mining Limited
r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
The sampling at Plantation identified two discrete gold-in-soil anomalies (Figure 5) which will require in-fill sampling to better
define the geometry and extent of the anomalies6. It is anticipated that in-fill sampling will be undertaken in the first quarter of
the 2021/22 financial year.
figure 5: Plantation Gold Prospect showing gold-in-soil anomaly over aerial photo.
6 Refer Talisman ASX announcement dated 6 May 2021 for full details including JORC tables.
9
2021 Annual Report r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
Blind Calf Prospect (EL8719)
The Blind Calf Prospect includes several north-south
trending mineralised structures which cover a total strike
extent of 800m. To date, most of the exploration drilling
has been directed towards the Blind Calf and Dunbars
structures, where high-grade copper mineralisation has
been intersected in bedrock drilling.
Structural and alteration mapping completed during 2019
identified three main mineralised corridors at Hilltop, Blind
Calf-Dunbars and Engine – all trending in a north-south
orientation (Figure 6).
Chalcopyrite is the primary copper-bearing sulphide
mineral at the Blind Calf Prospect, with very little pyrite or
other sulphide minerals present. As a result, the grade of
the primary copper mineralisation has a strong correlation
with the chalcopyrite content. While chalcopyrite is a low-
conductance sulphide mineral, down-hole electromagnetic
(EM) surveys are a very effective tool for detecting high-
grade copper mineralisation in proximity to drill holes.
Talisman has previously completed several RC percussion drill
holes targeting the mineralised corridors at Hilltop and Engine
with subsequent down-hole EM surveys detecting conductors
at several locations (Figure 6)7. The EM conductors are
interpreted to represent primary chalcopyrite mineralisation
and four EM conductors were selected for testing, with a four-
hole 652-metre RC percussion drilling program completed
during the financial year8.
Assay results from this drilling confirmed the presence of
mineralisation approximately 100 metres to the south-east
of the Blind Calf/Dunbars copper lode system, below the
historical Engine workings, which has previously returned
significant intervals of high-grade copper mineralisation.
The drilling encountered low-level copper mineralisation
as well as a high-grade copper and gold intersection in
BCRC0035, with assays of:
•
•
1m at 1.03% Cu from 127m; and
2m at 2.42g/t Au from 127m (incl. 1m at 3.97g/t Au)8.
These results, together with recent and historical mining
and drilling results, indicate a prospective NW-SE trending
corridor with extensive copper mineralisation extending
from the Hilltop Shaft to the Windlass Shaft (Figure 7). The
copper mineralisation at the prospect is hosted within a
deformed sequence of Ordovician sedimentary lithologies,
including shale, siltstone, and wacke units. The mineralisation
is structurally controlled and forms an en echelon array of
roughly north-south trending lenses (Figure 7).
Ongoing exploration in the 2021/22 financial year will
include detailed soil sampling as well as geological and
structural mapping with the objective of gaining a better
understanding of the larger mineralising system. Down-hole
EM surveys have been completed on holes BCDD0004, and
BCRC0035 to BCRC0038 and interpretation of the results is
in progress. Results of this analysis will be released as soon
as they are available.
figure 6. Blind Calf Prospect area showing alteration mapping and
DHEM target zones for proposed RC drilling9.
figure 7: Blind Calf Prospect geological interpretation showing recent
drilling, tested down-hole EM (DHEM) conductors and drill holes10
proposed for DHEM surveys.
7 Refer Talisman ASX announcement dated 9 September 2019 for full details including JORC tables.
8 Refer Talisman ASX announcement dated 22 February 2021 for full details including JORC tables.
9 Refer ASX announcements dated 5 July 2018, 30 November 2018 and 9 September 2019 for full details of drill hole intersections.
10 Refer Talisman ASX announcements dated 26 March 2020 and 22 February 2021 for full details including JORC tables.
10 Talisman Mining Limited
The second diamond hole (LUDD0002), which was designed
to test the area to the west of historical stoping in the Darcy
Shaft, was completed at an end-of-hole depth of 471.4m13.
The hole intersected a zone of strong foliation and quartz
veining from 297m to 303m down-hole, which is interpreted
to represent the flat-lying fault that has offset the main lode
controlling stratigraphy.
Below this flat-lying structure, LUDD0002 intersected the
ultramafic/komatiitic unit and the komatiite-andesite
contact at 322.7m and, below that, the footwall andesite unit
to the end of the hole at 471.4m. The hole also intersected
a zone of quartz veining and sulphides from 370.14m to
371.0m, which is interpreted to represent the footwall
extension to the historical Darcy Lode mineralisation
(Figure 8 and Figure 9). The hole returned low grade gold
mineralisation in the interpreted target zone (0.86m at
0.26g/t Au from 370.14m)13.
The Lucknow Project remains prospective for the discovery
of additional gold mineralisation, with the current geological
interpretation suggesting that the prospective contact has
been offset to the north-west by a sinistral fault which is
trending north-west and dipping moderately to the north-
east. This newly interpreted target corridor to the north-
west along the Lucknow Fault shows evidence of gold
mineralisation in areas of minimal previous exploration
(Figure 10) and will be a focus of further geological
interpretation and review to inform potential future drilling.
r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
Lucknow Gold Project
Talisman’s Lucknow Project is located approximately 11kms
southeast of the NSW town of Orange and is centred on the
historic Lucknow Goldfield which was discovered in 1851 and
was one of the earliest goldfields to be mined commercially
in Australia.
In October 2020, Talisman successfully fulfilled its earn-in
obligations under an exploration farm-in agreement with
privately owned Lucknow Gold Ltd (LGL) in relation to the
Lucknow Project and earned a 51% interest in the project11.
As a result, Talisman B Pty Ltd (TLMB), a 100%-owned
subsidiary of Talisman, has formed an unincorporated joint
venture with LGL. TLMB is manager of the joint venture.
Both parties are now required to contribute funds to future
activities on the Lucknow Project based on their percentage
interest (TLMB 51% and LGL 49%) to maintain their respective
interests. Standard dilution clauses apply to the parties’
interests and, should a party’s interest dilute to below 10%, it
will automatically convert to a net smelter royalty of 1.0%.
During the financial year Talisman completed its maiden
two-hole diamond drilling program at the Lucknow Project.
Based on Talisman’s geological interpretation of historical
data, the gold lodes and the ultramafic contact at the
Lucknow Project are interpreted to have been truncated and
offset by a sub-horizontal fault at a depth of approximately
240m below surface. The maiden program was designed
to test the interpreted fault offset position of the historical
gold lodes at the Lucknow Project and represented the first
drilling program by any explorer into this target area.
The first diamond drill hole (LUDD0001) was completed to
a final depth of 621.5m. It intersected a highly fractured
zone which is interpreted to represent the flat-lying fault
that has offset the main lode controlling stratigraphy but did
not intersect the targeted ultramafic contact due to what
appears to be a second cross-cutting fault.
The lower portion of the hole intersected stringer/sulphide
mineralisation in carbonate-rich zones at depth in the
targeted position, to the west of and below the historical
Lucknow Mine workings. These zones are interpreted to
represent the more distal extensions of the main gold lodes,
with significant intersections received including12:
LUDD0001: 0.81m @ 2.34 g/t Au from 467.1m
0.14m @ 4.10 g/t Au from 467.1m
Inc:
0.45m @ 1.34 g/t Au from 491.5m
11 Refer to ASX announcement dated 20 October 2020 for full details.
12 Refer Talisman ASX announcement dated 24 July 2020 for full details including JORC tables.
13 Refer Talisman ASX announcement dated 27 August 2020 for full details including JORC tables.
1 1
2021 Annual Report
r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
figure 8: Long-section view (looking north) through Darcy Lode showing interpreted pierce point of hole LUDD0002.
figure 9: Composite plan view (600mRL), showing interpreted geology and completed TLM drill holes.
12 Talisman Mining Limited
r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
figure 10: Lucknow Project mine shaft locations and simplified geology.
Competent Persons’ Statement
Information in this report that relates to Exploration Results
and Exploration Targets is based on information completed
by Mr Russell Gregory, who is a member of the Australasian
Institute of Geoscientists. Mr Gregory is a full-time employee
of Talisman Mining Limited and has sufficient experience
which is relevant to the style of mineralisation and types
of deposits under consideration and to the activities
undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”.
Mr Gregory consents to the inclusion in this report of the
matters based on information in the form and context in
which it appears.
No new information that is considered material is included
in this document. All information relating to exploration
results has been previously released to the market and is
appropriately referenced in this document. JORC tables are
not considered necessary to accompany this document.
Forward-Looking Statements
This report may include forward-looking statements.
These forward-looking statements are not historical facts
but rather are based on Talisman Mining Limited’s current
expectations, estimates and assumptions about the industry
in which Talisman Mining Limited operates, and beliefs
and assumptions regarding Talisman Mining Limited’s
future performance. Words such as “anticipates”, “expects”,
“intends”, “plans”, “believes”, “seeks”, “estimates”, “potential”
and similar expressions are intended to identify forward-
looking statements. Forward-looking statements are only
predictions and are not guaranteed, and they are subject to
known and unknown risks, uncertainties and assumptions,
some of which are outside the control of Talisman Mining
Limited. Past performance is not necessarily a guide to
future performance and no representation or warranty is
made as to the likelihood of achievement or reasonableness
of any forward-looking statements or other forecast. Actual
values, results or events may be materially different to
those expressed or implied in this presentation. Given these
uncertainties, recipients are cautioned not to place reliance
on forward looking statements. Any forward-looking
statements in this announcement speak only at the date
of issue of this announcement. Subject to any continuing
obligations under applicable law and the ASX Listing Rules,
Talisman Mining Limited does not undertake any obligation
to update or revise any information or any of the forward
looking statements in this announcement or any changes
in events, conditions or circumstances on which any such
forward looking statement is based.
1 3
2021 Annual Report
r e v i e w o f o p e r a t i o n s ( C O N T I N U E D )
TENEMENT SCHEDULE
As at date of report
Project /
Tenement
LACHLAN PROJECT
EL8615
EL8659
EL8677
EL8414
EL8547
EL8571
EL8658
EL8680
EL8719
OTHER
EL8451
EL 8977
LUCKNOW PROJECT
EL6455
Location and
Blocks (Area)
Tenement
Status
Talisman
Equity (%)
Expiry Date
Joint Venture Partner
NSW
(726km2)
(373km2)
(193km2)
(174km2)
(205km2)
(258km2)
(256km2)
(20km2)
(191km2)
NSW
(276km2)
(463km2)
NSW
(29km2)
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
100%
100%
100%
80%
100%
100%
100%
100%
100%
80%
100%
07-07-23
18-10-23
08-12-23
02-12-24
03-04-22
23-05-22
13-10-22
08-12-22
27-03-24
16-07-25
11-05-23
N/A
Peel Mining Ltd
N/A
Peel Mining Ltd
N/A
Granted
51%
28-08-21
Lucknow Gold Ltd
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement can be found on the Company’s website at www.talismanmining.com.au/
about-us/corporate-governance.html under the heading marked “Corporate Governance Statement”.
The following governance-related documents can also be found on the Company’s website:
Company Purpose & Values
Compliance, Controls and Policies
Charters
• Board
• Audit Committee
• Nomination Committee
• Remuneration Committee
• Risk Committee
• Risk Management Policy
• Continuous Disclosure Policy
• Securities Trading Policy
• Diversity Policy
• Remuneration Policy
• Whistleblower Policy
• Anti-Bribery and Anti-Corruption Policy
Constitution
Shareholder Communication
• Constitution of Talisman Mining Limited
• Shareholder Communication and Investor Relations Policy
Board
• Code of Conduct
• Policy and Procedure for the Selection and (Re)
Appointment of Directors
• Process for Performance Evaluation
14 Talisman Mining Limited
Directors’
Report
Your Directors present their report together with the
financial statements of the Group consisting of Talisman
Mining Limited and the entities it controlled for the financial
year ended 30 June 2021. In order to comply with the
provisions of the Corporations Act 2001, the Directors report
as follows:
Daniel Madden
BComACC, ACA, Governance Institute of Australia
Managing Director
1 July 2016 – 1 September 2020
Non-Executive Director
2 September 2020 - 4 November 2020
Directors
The names of Directors who held office during or since
the end of the year and until the date of this report are as
follows. Directors were in office for this entire period unless
otherwise stated.
Kerry Harmanis
Non-Executive Chairman
15 July 2020 - current
Chairman (Non-Executive/Non-Independent)
Kerry Harmanis joined the Talisman board on 15 July
2020 and is one of Western Australia’s most successful
mining executives and investors. Kerry has been a major
shareholder and strong supporter of Talisman since 2007
and currently holds an 18% stake in the Company.
With a career spanning more than 40 years in the Australian
exploration and mining industry, Kerry was the founder and
Executive Chairman of Jubilee Mines NL, a highly successful
West Australian nickel miner which he established in 1987.
Through a combination of exploration success, focused
project development and operational consistency, Jubilee
Mines grew to become one of the most successful mid-tier
miners on the ASX until its acquisition by Xstrata for
A$3.1 billion in October 2007.
During this period, Kerry led a highly successful geological
and operational team which helped Jubilee set new
benchmarks on the ASX for shareholder returns in the
resource sector.
In the 3 years immediately before the end of the financial
year, Kerry did not serve as a Director of any other ASX
listed entities.
Managing Director (Executive/Non-Independent)
Dan Madden was appointed as Managing Director on 1 July
2016 and had been with Talisman since 2009 in his previous
roles as Chief Financial Officer and Company Secretary. Dan
has more than 17 years’ experience in the resource sector,
including Xstrata Nickel Australasia, Jubilee Mines NL and
Perilya Ltd.
He graduated from the University of Birmingham with a
degree in Commerce and Accounting before joining Deloitte
in the UK and Australia. He is an Associate Member of the
Institute of Chartered Accountants of England and Wales
and a member of the Governance Institute of Australia.
Dan resigned as Managing Director on 1 September 2020,
and as a Non-Executive director on 4 November 2020.
Jeremy Kirkwood
BCom ANU
Non-Executive Director
15 July 2020 – current
Non-Executive Chairman
April 2016 – 15 July 2020
Non-Executive Director (Independent)
Jeremy Kirkwood joined Talisman in April 2016 and has
extensive experience in corporate strategy, investment
banking and global capital markets and provides invaluable
strategic input and guidance to the Company’s board and
management team.
Jeremy is a principal of Pilot Advisory Group and was
previously a Managing Director at Credit Suisse, Morgan
Stanley and Austock. He has primarily worked in public
markets, undertaking merger and acquisitions and capital
raisings for companies principally in the metal and mining,
energy and infrastructure sectors.
In the 3 years immediately before the end of the financial
year, Jeremy joined Joyce Corporation Ltd (ASX:JYC) as
a Non-Executive Director on 14 January 2020 and was
appointed Chairman on 1 December 2020. In February 2018
he was appointed as the Chairman of Kin Mining Ltd (ASX:
KIN) where he remained until his resignation on 24 July 2019.
Jeremy is the Chair of the Company’s Audit, Nomination and
Remuneration Committees. With extensive industry experience,
Jeremy is considered qualified to hold these responsibilities.
1 5
2021 Annual Report Brian Dawes
B. Sc. Mining, MAusIMM
Non-Executive Director
17 June 2009 – current
Non-Executive Director (Independent)
Brian is a mining engineer with extensive international
mining industry experience. He holds a BSc in Mining from
the University of Leeds in the United Kingdom and is Member
of the Australasian Institute of Mining and Metallurgy.
Brian’s diverse expertise covers all key industry aspects
from exploration through the discovery, feasibility, funding,
approvals, project construction, commissioning, operations,
optimisation, logistics, marketing, and closure phases. This
includes site management and corporate responsibilities
in a diversity of challenging and successful underground
and open pit operations across many commodities and
geographies; mainly in copper, gold, nickel, zinc and lead,
and iron ore. Prior to joining Talisman, Brian held senior
positions with Jubilee Mines NL, Western Areas, LionOre
Australia, WMC, Normandy Mining, and Aberfoyle.
In the 3 years immediately before the end of the financial
year, Brian has served as a non-executive director of Kin
Mining Ltd (ASX: KIN) since 20 February 2018.
Brian serves on the Company’s Audit, Nomination and
Remuneration Committees. With extensive industry
experience and being financially literate, Brian is considered
qualified to hold these responsibilities.
Karen Gadsby
B. Comm., FCA, MAICD
Non-Executive Director
3 April 2008 – 4 November 2020
Non-Executive Director (Independent)
Karen is a professional Non-Executive Director with over
30 years’ finance and commercial experience across
several sectors.
She worked as an Executive for North Ltd throughout
Australia for 13 years including at Robe River Iron Associates
and Energy Resources of Australia Ltd.
Karen resigned as a Non-Executive Director on 4 November
2020.
D i r e C t o r s ’ re p o r t ( C O N T I N U E D )
Peter Benjamin
B.Sc. (Hons), Grad Dip (Exploration), (Bus Admin),
GAICD, MAusIMM, FAIM
Non-Executive Director
24 July 2019 - current
Non-Executive Director (Independent)
Peter is a geologist with over 40 years’ experience in
senior exploration, project, operational and executive
management roles for both junior and mid-tier resource
companies. These roles have included significant experience
in the development and subsequent operations for open pit
and underground precious, base metal and bulk mineral
mines throughout Australia. Peter has extensive experience
in managing and implementing exploration strategies
which have led to the successful and ongoing discoveries
and delineation of new mineral resources and ore reserves.
Peter has previously held senior management roles at
Iluka Resources Limited, Shaw River Manganese Ltd and
Kalamazoo Resources Limited. Peter is now a consultant for
the resources industry, mainly focusing on gold, base metals
and mineral sands.
In the 3 years immediately before the end of the financial
year, Peter was managing director at Kalamazoo Resources
Ltd (ASX: KZR) from July 2015 until his resignation in July 2018.
He also served as a non-executive director of Capricorn
Resources Limited (ASX: CMM) from November 2018 to
March 2019.
Peter is a member of the Audit, Nomination and
Remuneration Committees. With his extensive geological
and senior exploration management experience, Peter is
considered qualified to hold these responsibilities.
Company Secretary
Alex Neuling
BSc, FCA (ICAEW), FCIS
Company Secretary
1 May 2016 - current
Company Secretary
Alex Neuling is a Chartered Accountant and Chartered
Secretary with extensive corporate and financial experience
including as Director, Chief Financial Officer and / or
Company Secretary of various ASX-listed companies in the
mining, mineral exploration, oil & gas and other sectors.
Prior to those roles, Alex worked at Deloitte in London and
Perth. Alex also holds an honours degree in chemistry
from the University of Leeds in the United Kingdom and is
principal of Erasmus Consulting which provides company
secretarial and financial management consultancy services
to a variety of ASX-listed and other companies.
16 Talisman Mining Limited
D i r e C t o r s ’ re p o r t ( C O N T I N U E D )
Principal activities
The principal activity of Talisman Mining Limited during
the course of the financial year was exploration for base
metals and other minerals, including copper, copper-gold,
gold and nickel.
Review of operations and future
developments
A detailed review of operations during the financial year
and commentary on future developments is set out in the
section titled “Review of Operations” in this Annual Report.
During the financial year the Company completed
royalty sale and purchase agreements with Northern
Star Resources Limited (ASX: NST, Northern Star), for the
purchase of the NSR (net smelter return) royalties over the
Sinclair and Waterloo Nickel Projects in Western Australia
and with Sandfire Resources Limited (ASX: SFR, Sandfire)
for the purchase of the NSR royalty over the Springfield
Copper Gold Project. These two transactions realised cash
consideration of $0.75 million and $1 million respectively.
Financial position
As at 30 June 2021, the Group had net assets of $11.2 million
(2020: $13.3 million) including $9.9 million of cash and cash
equivalents (2020: $12.9 million).
Dividends
The Directors resolved that no dividend be paid for the year.
Subsequent events
Financial performance and
financial position
Financial performance
During the financial year, the Group reported an operating
loss after tax of $2.2 million (2020: loss after tax $4.8 million).
The Group reported an operating loss after tax from
continuing operations of $3.9 million (2020: loss after tax
$7.5 million).
Revenue for the year of $1.4 million (2020: $0.2 million)
consisted primarily of royalty income from an uncapped 1%
gross revenue royalty applicable to all metals produced and
sold from the Wonmunna Iron Ore Mine.
Mr Shaun Vokes was appointed as Chief Executive Officer
of the Company on 2 July 2021 and Mr Russell Gregory
was appointed Exploration Manager commencing on
2 August 2021.
Directors’ meetings
The following table sets out the number of Directors’
meetings (including meetings of committees of Directors)
held during the financial year and the number of meetings
attended by each director (while they were a director or
committee member). During the financial year, eleven
board meetings, two audit committee meetings, one
renumeration committee meeting and one nomination
committee meeting were held.
Board of directors
Audit committee
Remuneration
committee
Nomination committee
Directors
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Kerry Harmanis
10
10
Jeremy Kirkwood
11
11
Daniel Madden
4
4
Brian Dawes
Karen Gadsby
Peter Benjamin
11
11
4
4
11
11
2
2
1
2
1
2
2
2
1
2
1
2
1
1
-
1
-
1
1
1
-
1
-
1
1
1
-
1
-
1
1
1
-
1
-
1
Note: Executive Directors attending committee meetings during the year attended all or part of the meeting by invitation of the
relevant Committee.
1 7
2021 Annual Report
D i r e C t o r s ’ re p o r t ( C O N T I N U E D )
Directors’ shareholdings
The following table sets out each Director’s relevant interest in shares, and options in shares of the Company or a related body
corporate as at the date of this report:
Directors
Kerry Harmanis
Jeremy Kirkwood
Brian Dawes
Peter Benjamin
Share options
Fully paid ordinary shares
Number
Share Options
Number
33,859,138
419,000
353,333
170,058
-
1,666,666
1,166,666
1,166,668
Share options granted to Directors and key management personnel
At the date of this report, share options granted to the Directors and key management personnel of the Company and the
entities it controlled as part of their remuneration are:
Directors and senior management
Number of options granted
Issuing Entity
Number of ordinary shares
under option
Kerry Harmanis
Jeremy Kirkwood
Brian Dawes
Peter Benjamin
-
N/A
1,666,666
Talisman Mining Limited
1,166,666
Talisman Mining Limited
1,166,668
Talisman Mining Limited
-
1,666,666
1,166,666
1,166,668
Details of all unissued shares or interests under option as at the date of this report are:
Issuing entity
Grant Date Expiry date of
options
Number of
shares under
option
Exercise price
of options
Fair Value
Vested Date
Talisman Mining Limited
11-Nov-16
31-Oct-21
Talisman Mining Limited
11-Nov-16
31-Oct-21
40,000
40,000
Talisman Mining Limited
7-May-19
31-Oct-21
2,500,002
Talisman Mining Limited
27-Nov-19
31-Oct-21
194,444
Talisman Mining Limited
7-May-19
31-Oct-21
2,499,999
Talisman Mining Limited
27-Nov-19
31-Oct-21
194,444
Talisman Mining Limited
7-May-19
31-Oct-21
2,499,999
Talisman Mining Limited
27-Nov-19
31-Oct-21
194,444
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,335
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,444
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,331
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,444
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,334
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,448
$0.46
$0.50
$0.14
$0.14
$0.16
$0.16
$0.18
$0.18
$0.14
$0.14
$0.16
$0.16
$0.18
$0.18
$0.32
30-Jun-19
$0.32
30-Jun-20
$0.04
30-Apr-20
$0.03
30-Nov-20
$0.04
30-Apr-20
$0.03
30-Nov-20
$0.04
31-Oct-20
$0.03
30-Nov-20
$0.05
31-Oct-20
$0.04
30-May-21
$0.05
31-Oct-20
$0.04
30-May-21
$0.04
31-Oct-20
$0.04
30-May-21
The holders of these options do not have the right, by virtue of the option, to participate in any share issue or interest issue of
any other body corporate or registered scheme.
18 Talisman Mining Limited
D i r e C t o r s ’ re p o r t ( C O N T I N U E D )
Remuneration Report
Auditor Independence
The Remuneration Report, which forms part of the Directors’
report, outlines the remuneration arrangements in place for
the Key Management Personnel of Talisman Mining Limited
for the financial year ended 30 June 2021 and is included on
page 20.
Section 307C of the Corporations Act 2001 requires our
auditors, HLB Mann Judd, to provide the Directors of the
Company with an Independence Declaration in relation
to the audit of the annual report. This Independence
Declaration is set out on page 26 and forms part of this
Directors’ report for the year ended 30 June 2021.
Proceedings on behalf of the
Company
No person has applied for leave of court to bring
proceedings on behalf of the Company or intervene in
any proceedings to which the Company is a party for the
purpose of taking responsibility on behalf of the Company
for all or any part of those proceedings.
Rounding off of amounts
The Company has applied the relief available to it in ASIC
Legislative Instrument 2016/191, and accordingly certain
amounts included in this report and in the financial report
have been rounded off to the nearest $1,000 (where
rounding is applicable), under the option available to the
Company under ASIC Corporations (Rounding in Financial/
Directors’ Reports) Instrument 2016/191. The Company is an
entity to which this instrument applies.
Environmental regulations
The Group’s environmental obligations are regulated
under both State and Federal legislation. Performance
with respect to environmental obligations is monitored by
the Board of Directors and subjected from time to time
to government agency audits and site inspections. No
significant or material environmental breaches have been
notified by any government agency during the year ended
30 June 2021.
Indemnification and insurance of
officers
The Company has agreed to indemnify all the Directors
of the Company for any liabilities to another person (other
than the Company or related body corporate) that may
arise from their position as Directors of the Company and
its controlled entities, except where the liability arises out of
conduct involving a lack of good faith.
During the financial year the Company paid a premium in
respect of a contract insuring the Directors and officers of
the Company and its controlled entities against any liability
incurred in the course of their duties to the extent permitted
by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the
amount of the premium.
Non-Audit Services
Details of amounts paid or payable to the auditor for non-
audit services provided during the year by the auditor are
outlined in Note 25 to the financial statements. The Directors
are satisfied that the provision of non-audit services is
compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001.
The Directors are of the opinion that the services do
not compromise the auditor’s independence as all non-
audit services have been reviewed to ensure that they
do not impact the impartiality and objectivity of the
auditor and none of the services undermine the general
principles relating to auditor independence as set out in
Code of Conduct APES 110 Code of Ethics for Professional
Accountants issued by the Accounting Professional & Ethical
Standards Board.
19
2021 Annual Report Remuneration
Report
This report, which forms part of the Directors’ report,
outlines the remuneration arrangements in place for the
Key Management Personnel of Talisman Mining Limited for
the year ended 30 June 2021. The information provided in
this remuneration report has been audited as required by
Section 308(3C) of the Corporations Act 2001.
The Remuneration Report details the remuneration
arrangements for Key Management Personnel who are
defined as those persons having authority and responsibility
for planning, directing and controlling the major activities
of the Group, directly or indirectly, including any Director
(whether executive or otherwise) of the Group.
Key Management Personnel details
The key management personnel of Talisman Mining Limited
during the year were:
Directors
Kerry Harmanis
Jeremy Kirkwood
Daniel Madden
Brian Dawes
Karen Gadsby
Non-Executive Chairman
(Appointed 15 July 2020)
Non-Executive Director
(Resigned as Chairman 15 July 2020,
Non-Executive Director from
15 July 2020)
Managing Director
Non-Executive Director
(Resigned as Managing Director on
1 September 2020, resigned as a
Non-Executive Director on
4 November 2020)
Non-Executive Director
Non-Executive Director
(Resigned as Non-Executive Director
on 4 November 2020)
Peter Benjamin
Non-Executive Director
Other Key Management
Anthony Greenaway
Shaun Vokes
Russell Gregory
General Manager – Geology
(Resigned 7 August 2020)
Interim Chief Executive Officer
(Appointed 2 September 2020)
Chief Executive Officer
(Appointed 2 July 2021)
Exploration Manager
(Appointed 2 August 2021)
Except as noted, the named persons held their current
positions for the whole of the financial year and since the
financial year end.
Key Management Personnel
(excluding Non-Executive
Directors)
The Board is responsible for determining the remuneration
policies for the Group, including those affecting Executive
Directors and other key management personnel. The Board
may seek appropriate external advice to assist in its decision
making.
The Company’s remuneration policy for Executive Directors
and key management personnel is designed to promote
superior performance and long-term commitment to the
Group. The main principles of the policy when considering
remuneration are as follows:
• Executive Directors and key management personnel are
motivated to pursue long term growth and success of the
Group within an appropriate control framework;
•
•
interests of key leadership are aligned with the long-
term interests of the Company’s shareholders; and
there is a clear correlation between performance and
remuneration.
The remuneration policy for Executive Directors and other
key management personnel has three main components,
fixed remuneration, long term incentive and a potential
discretionary bonus.
Fixed remuneration
Fixed remuneration is reviewed annually by the
Remuneration Committee. The process consists of a review
of relevant comparative remuneration in the market and
internally and, where appropriate, external advice on
policies and practices. The Remuneration Committee has
access to external, independent advice where necessary.
Executive Directors and other key management personnel
are given the opportunity to receive their fixed (primary)
remuneration in a variety of forms including cash and fringe
benefits such as motor vehicles and expense payment plans.
It is intended that the manner of payment chosen will be
optimal for the recipient without creating undue cost for the
Group. The fixed remuneration component is detailed in the
remuneration for key management personnel tables for the
years ended 30 June 2021 and 30 June 2020.
20 Talisman Mining Limited
r e m u n e r a t i o n r e p o r t ( C O N T I N U E D )
Long term incentives
To align the interests of key management personnel with the
long-term objectives of the Group and its shareholders, the
Group’s policy, having regard to the stage of development
of its assets, is to issue share options under the shareholder
approved ‘Executive and Employee Equity Plan’ (EEEP) and at
the discretion of the Board, subject to shareholder approval
for Directors. The issue of share options as remuneration
represents cost effective consideration to Directors and
key management personnel for their commitment and
contribution to the Group and are used as a strategic tool
to recruit and retain high calibre personnel. Options issued
during the year vest at various periods during the life of
the options and value is only realised by Directors and key
management personnel upon growth at various premiums
to the 5-day volume weighted share of the Company’s share
price from the date of the grant of the options.
General Meeting on 19 May 2008 and re-approved at the
30 June 2016 General Meeting. For the financial year ended
30 June 2021, this pool was utilised to a level of $186,150
(inclusive of superannuation). There was no fee paid for
the 2021 financial year to the Chairman whist each Non-
Executive Director was paid $50,000 per annum (excluding
statutory superannuation).
Key terms of employment contracts
Remuneration and other terms of employment of Directors
and key management personnel are formalised in
an employment contract. The major provisions of the
agreements related to the remuneration are set out below.
Key
Management
Personnel
Term of
Agreement
Key Agreement
Terms
Notice
Period
Vesting conditions relating to the performance of the Group
are not considered appropriate having regard to the stage
of development of the Group’s assets.
Shaun Vokes Three years
(appointed
2 July 2021)
Potential discretionary bonus
A potential discretionary bonus may be paid to Executive
Directors and other key management personnel.
Any potential bonus paid is at the discretion of the
Remuneration Committee and will typically be made in
recognition of contribution to the Group’s performance
and other significant efforts of Executive Directors and key
management personnel in applicable and appropriate
circumstances. For the financial year ended 30 June 2021,
there were no discretionary bonuses paid or recommended
by the Remuneration Committee.
Non-Executive Directors
The Group’s Non-Executive Directors receive fees (including
statutory superannuation) for their services and the
reimbursement of reasonable expenses. The fees paid to the
Group’s Non-Executive Directors reflect the demands on,
and responsibilities of, the Directors. They do not receive any
retirement benefits (other than compulsory superannuation).
The Board decides annually the level of fees to be paid to
Non-Executive Directors with reference to market standards.
Non-Executive Directors may also receive share options
where this is considered appropriate by the Board as
a whole and with regard to the stage of the Group’s
development. Such options vest across the life of the
option and are primarily designed to provide an incentive
to Non-Executive Directors to remain with the Group.
Options issued to Non-Executive Directors are subject to
shareholder approval.
A Non-Executive Directors’ fee pool limit of $300,000 per
annum was originally approved by the shareholders at the
3 months
3 months
Termination benefit
payable on early
termination by
the Group (other
than for gross
misconduct) is
equal to six months’
base salary.
Termination benefit
payable on early
termination by
the Group (other
than for gross
misconduct) is
equal to three
months’ base
salary.
Russell
Gregory
Ongoing
employment
agreement
(appointed
2 August 2021)
Remuneration for Executive Directors and key management
personnel consists of a base salary, superannuation
and performance incentives. Long term performance
incentives may include options granted at the discretion
of the Board subject to obtaining the relevant approvals.
The remuneration of the Chief Executive Officer is
recommended to the Board by the Remuneration
Committee. Remuneration of key management personnel
(excluding Non-Executive Directors) is recommended
annually by the Remuneration Committee in consultation
with the Managing Director or equivalent.
2 1
2021 Annual Report r e m u n e r a t i o n r e p o r t ( C O N T I N U E D )
Remuneration of key management personnel
Details of the nature and amount of each element of the remuneration for key management personnel during the year are set
out in the following tables:
Share-
based
payment
Options (vii)
Total
$
-
$
-
8,786
66,273
Long
service
leave
accrual
$
-
-
57,083
26,360
448,198
6,151
6,151
60,901
25,314
24,200
78,950
% of
compensation
linked to
performance
%
-
13.26%
5.88%
10.10%
24,30%
30.65%
Short-term employee benefits
Post-
employment
benefits
Salary &
fees
Non-
monetary
Super-
annuation
Bonus
2021
Directors
Kerry Harmanis(i)
Jeremy Kirkwood
Daniel Madden(ii)
Brian Dawes
Karen Gadsby(iii)
Peter Benjamin(iv)
Executives
Shaun Vokes(v)
$
-
52,500
333,350
36,950
17,500
50,000
274,323
Anthony Greenaway(vi)
134,192
898,815
73,333
336,428
45,834
45,834
42,625
2020
Directors
Jeremy Kirkwood
Daniel Madden(ii)
Brian Dawes
Karen Gadsby(iii)
Peter Benjamin(iv)
Executives
Shaun Vokes(v)
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
6,468
-
-
-
-
-
$
-
4,987
24,937
17,800
1,663
4,750
26,061
2,679
-
20,200
-
-
-
-
-
6,967
31,961
4,354
4,354
4,049
28,869
25,084
-
-
-
-
-
-
-
-
-
-
6,468
82,877
57,083
80,434
1,125,677
-
300,384
8,786
145,657
-
6.03%
-
67,813
148,113
15,455
203,444
607,488
47,470
47,470
31,016
97,658
97,658
77,690
45.78%
33.49%
48.61%
48.61%
39.92%
Anthony Greenaway(vi)
264,047
-
356,904
25,000
63,456
474,229
67,813
356,944
13.38%
19.00%
1,165,005
25,000
20,200
105,638
15,455
528,482
1,859,780
(i)
Kerry Harmanis was appointed as non-executive Chairman on 15 July 2020. Under the terms of his appointment, Mr Harmanis has elected not to receive a salary or
be issued with any shares in his role.
(ii) Daniel Madden ceased employment as Managing Director on 1 September 2020 and resigned as a non-executive director on 4 November 2020.
(iii) Karen Gadsby resigned as a Non-Executive Director on 4 November 2020.
(iv) Peter Benjamin was appointed as a Non-Executive Director on 24 July 2019.
(v) Ceased employment as Chief Financial Officer and Joint Company Secretary 30 April 2020. Salary and fees for 2020 include termination payments. Appointed as
interim Chief Executive Officer 2 September 2020 and as Chief Executive Officer on 2 July 2021.
(vi) Ceased employment 7 August 2020.
(vii) The value of share-based payments shown in the table are non-cash values based on an accounting valuation calculated under the Black Scholes option pricing
method. The values above represent the accounting expense recorded over the vesting period of the options. The options were granted in the 2019 financial year,
with the exception of options granted to Peter Benjamin in November 2019.
22 Talisman Mining Limited
r e m u n e r a t i o n r e p o r t ( C O N T I N U E D )
Share-based remuneration granted as compensation
No options were granted as renumeration during the current financial year.
Exercised
No options granted as compensation in the current and/or prior year were exercised.
Forfeited / lapsed / cancelled options during the year
Number granted
Jeremy Kirkwood
Daniel Madden
Brian Dawes
Karen Gadsby
Peter Benjamin
Shaun Vokes
Anthony Greenaway
Number forfeited/lapsed/
cancelled during the year
Financial Year Granted
833,334
2,500,000
583,334
583,334
583,332
833,334
833,334
FY18/19
FY18/19
FY18/19
FY18/19
FY18/19
FY18/19
FY18/19
23
2021 Annual Report r e m u n e r a t i o n r e p o r t ( C O N T I N U E D )
Other Information
Shares held by Key Management Personnel
Opening
balance at
1 July
Balance on
appointment
Shares
received on
exercise of
options
Acquired
on-market
Balance on
resignation
Closing
balance at
30 June
Balance
held
nominally
Number
Number
Number
Number
Number
Number
Number
N/A
N/A
33,859,138
419,000
(50,000)
-
-
-
-
N/A
353,333
20,000
-
-
-
-
-
(311,334)
-
68,965
N/A
170,058
308,767
-
N/A
-
308,767
-
-
-
-
-
377,732
(361,334)
35,110,296
20,000
-
-
-
-
101,093
-
-
N/A
N/A
N/A
N/A
N/A
-
N/A
419,000
50,000
-
-
353,333
20,000
311,334
66,667
101,093
-
-
-
-
-
101,093
-
1,234,760
86,667
2021
Directors
Kerry Harmanis
-
33,859,138
Jeremy Kirkwood
Daniel Madden
Brian Dawes
Karen Gadsby
Peter Benjamin
Executives
Shaun Vokes
Anthony Greenaway
2020
Directors
Jeremy Kirkwood
Daniel Madden
Brian Dawes
Karen Gadsby
Peter Benjamin
Executives
Shaun Vokes
Anthony Greenaway
419,000
50,000
353,333
311,334
101,093
-
-
-
-
-
-
-
-
-
1,234,760
33,859,138
419,000
50,000
353,333
311,334
-
-
-
1,133,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24 Talisman Mining Limited
r e m u n e r a t i o n r e p o r t ( C O N T I N U E D )
Options held by Key Management Personnel
Opening
balance at
1 July
Granted as
remuneration
Options
Exercised
Options
Lapsed /
Cancelled /
Forfeited
Balance on
resignation
Closing
balance at
30 June
Vested
but not
exercisable
Vested
during the
year
Vested and
exercisable
at 30 June
Number
Number
Number
Number
Number
Number
Number
Number
Number
2021
Directors
Kerry Harmanis
-
Jeremy Kirkwood
2,500,000
Daniel Madden
7,500,000
Brian Dawes
1,750,000
Karen Gadsby
1,750,000
Peter Benjamin
1,750,000
Executives
Shaun Vokes
1,666,667
Anthony
Greenaway
2,500,000
19,416,667
2020
Directors
Jeremy Kirkwood
2,500,000
Daniel Madden
7,500,000
Brian Dawes
1,750,000
Karen Gadsby
1,750,000
-
-
-
-
-
-
-
-
-
-
-
-
-
Peter Benjamin
-
1,750,000
Executives
Shaun Vokes
2,500,000
Anthony
Greenaway
2,500,000
-
-
18,500,000
1,750,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
N/A
-
(833,334)
N/A
1,666,666
(2,500,000)
(5,000,000)
-
(583,334)
N/A
1,166,666
(583,334)
(1,166,666)
-
(583,332)
N/A
1,166,668
(833,334)
N/A
833,333
(833,334)
(1,666,666)
-
(6,750,002)
(7,833,332)
4,833,333
-
-
-
-
-
-
-
-
-
-
-
833,333
1,666,666
2,500,000
5,000,000
583,333
1,166,666
583,333
1,166,666
583,336
1,166,668
-
833,333
833,333
1,666,666
5,916,668 12,666,665
N/A 2,500,000
-
1,666,667
1,666,667
N/A 7,500,000
- 5,000,000
5,000,000
-
-
-
-
-
N/A
1,750,000
N/A
1,750,000
N/A
1,750,000
-
-
-
-
-
1,166,667
1,166,667
1,166,667
1,166,667
583,332
583,332
1,666,667
1,666,667
1,666,667
1,666,667
(833,333)
(1,666,667)
-
-
N/A 2,500,000
(833,333)
(1,666,667)
17,750,000
-
13,916,667
13,916,667
This Directors’ report is signed in accordance with a resolution of Directors made pursuant to s.298(2) of the Corporations Act 2001.
On behalf of the Directors
Jeremy Kirkwood
Non-Executive Director
Perth, 23 September 2021
25
2021 Annual Report
Auditor’s Indepedendence Declaration
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Talisman Mining Limited for the
year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been
no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
23 September 2021
L Di Giallonardo
Partner
26 Talisman Mining Limited
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
To the members of Talisman Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Talisman Mining Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30
June 2021, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.
27
2021 Annual Report
i n De p e n De n t a u Di t o r ’ s re p o r t ( C O N T I N U E D )
Key Audit Matter
Joint Operations
Refer to Note 20
During the year the Group entered into two joint
arrangements, the 51% jointly controlled Lucknow
Gold Project and the 75% jointly controlled Mt Walton
Project.
These joint arrangements are both joint operations
and the Group proportionately consolidates its
share of the assets, liabilities, revenue and
expenses of the Lucknow Gold Project and the Mt
Walton Project.
This is considered to be a key audit matter as it is
material to the users of the financial statements, the
accounting was complex and it involved the most
communication with management.
How our audit addressed the key audit
matter
Our procedures included but were not
limited to:
- Reviewing the agreements to
understand their key terms;
- Establishing that joint control existed
and considering the type of joint
arrangement in existence;
- Ensuring that the joint arrangements
were accounted for in accordance with
AASB 11 Joint Arrangements;
- Verifying the existence and fair value of
assets and liabilities in the joint
operations on formation; and
- Assessing the appropriateness of the
disclosures included in the financial
report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2021, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
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 Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
28 Talisman Mining Limited
i n De p e n De n t a u Di t o r ’ s re p o r t ( C O N T I N U E D )
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
-
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Talisman Mining Limited for the year ended 30 June
2021 complies with section 300A of the Corporations Act 2001.
29
2021 Annual Report
i n De p e n De n t a u Di t o r ’ s re p o r t ( C O N T I N U E D )
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.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
23 September 2021
L Di Giallonardo
Partner
30 Talisman Mining Limited
f i n a n C i a L p o s i t i o n ( C O N T I N U E D )
C O N S O L I D A T E D S T A T E M E N T O F
Financial Position
A S A T 3 0 J U N E 2 0 2 1
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Other receivables
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Provisions
Lease liabilities
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
The accompanying notes form part of these financial statements.
Note
30 Jun 21
$ `000
30 Jun 20
$ `000
7
8
8
9
10
11
12
13
15
14
16
17
17
9,900
1,333
11,233
13
201
-
19
-
233
12,937
305
13,242
120
282
82
47
-
531
11,466
13,773
304
-
-
304
304
379
56
86
521
521
11,162
13,252
31,966
646
(21,450)
11,162
31,966
765
(19,479)
13,252
3 1
2021 Annual Report
C O N S O L I D A T E D S T A T E M E N T O F
Profit or Loss and Other
Comprehensive Income
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
Note
30 Jun 21
$ `000
30 Jun 20
$ `000
Continuing operations
Revenue
Other income
Exploration expenditure expensed as incurred
Employee benefits expense
Legal and corporate advisory expenses
Administrative expenses
Occupancy expenses
Finance costs
Depreciation and amortisation expense
Loss before income tax expense from continuing operations
Income tax expense
Loss after tax from continuing operations
Discontinued operations
Profit after tax from discontinued operations
Net loss for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Earnings / (loss) per share:
From continuing and discontinued operations:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
From continuing operations:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
The accompanying notes form part of these financial statements.
32 Talisman Mining Limited
2
2
12
2
2
2
3
5
6
6
6
6
28
1,365
(2,858)
(1,279)
(382)
(498)
(65)
(13)
(215)
204
25
(3,860)
(2,004)
(1,010)
(621)
(49)
(6)
(224)
(3,917)
(7,545)
-
-
(3,917)
(7,545)
1,750
2,742
(2,167)
(4,803)
-
-
(2,167)
(4,803)
(1.16)
(1.16)
(2.10)
(2.10)
(2.58)
(2.58)
(4.05)
(4.05)
C O N S O L I D A T E D S T A T E M E N T O F
Cash Flows
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
Cash flows from operating activities
Payments to suppliers and employees
Payments for exploration and evaluation
Finance costs
Recovery of exploration costs on sale of subsidiary
Interest received
Government grants
Royalty receipts
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of entity (net of sale costs)
Proceeds from disposal of royalty rights
Net cash provided by investing activities
Cash flows from financing activities
Repayment of lease liabilities
Net cash used in financing activities
Net (decrease)/increase in cash held
Cash previously classified as available for sale
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The accompanying notes form part of these financial statements.
30 Jun 21
30 Jun 20
$ `000
$ `000
Note
inflows/(outflows)
(2,989)
(3,066)
(13)
-
28
68
1,289
(4,683)
(24)
6
-
1,750
1,732
(86)
(86)
(3,037)
-
12,937
9,900
(2,799)
(5,199)
(6)
390
204
50
-
(7,360)
(115)
4
9,868
-
9,757
(78)
(78)
2,319
27
10,591
12,937
7
5
5
14
7
33
2021 Annual Report
C O N S O L I D A T E D S T A T E M E N T O F
Changes in Equity
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
Balance at 1 July 2020
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Recognition of share-based payments
Unlisted options forfeited
Unlisted options lapsed
Balance at 30 June 2021
Balance at 1 July 2019
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Shares issued during the year
Recognition of share-based payments
Unlisted options forfeited
Unlisted options lapsed
Balance at 30 June 2020
Issued Capital
Accumulated
Losses
Share-based
Payments
Reserve
Total Equity
$ `000
31,966
-
-
-
-
-
-
$ `000
(19,479)
(2,167)
-
(2,167)
-
-
196
31,966
(21,450)
$ `000
765
-
-
-
92
(15)
(196)
646
31,866
(14,753)
240
-
-
-
100
-
-
-
(4,803)
-
(4,803)
-
-
-
77
31,966
(19,479)
-
-
-
-
648
(46)
(77)
765
$ `000
13.252
(2,167)
-
(2,167)
92
(15)
-
11,162
17,353
(4,803)
-
(4,803)
100
648
(46)
-
13,252
The accompanying notes form part of these financial statements.
34 Talisman Mining Limited
Notes to the Consolidated
Financial Statements
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
(b) Adoption of new and revised standards
Standards and Interpretations applicable to 30 June 2021
In the year ended 30 June 2021, the Directors have reviewed
all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to the Group and
effective for the current annual reporting period. As a result
of this review, the Directors have determined that there is
no material impact of the new and revised Standards and
Interpretations on the Group and, therefore, no change is
necessary to Group accounting policies.
Standards and interpretations in issue not yet mandatory or
early adopted
The Directors have also reviewed all of the new and revised
Standards and Interpretations in issue but not yet mandatory
for the year ended 30 June 2021. As a result of this review
the Directors have determined that there is no material
impact of the Standards and Interpretations in issue but not
yet mandatory on the Group and, therefore, no change is
necessary to Group accounting policies.
No other new standards, amendments to standards
and interpretations are expected to affect the Group’s
consolidated financial statements.
(c) Statement of compliance
The financial report was authorised for issue on
23 September 2021.
The financial report complies with Australian Accounting
Standards, which include Australian equivalents to International
Financial Reporting Standards (AIFRS). Compliance with AIFRS
ensures that the financial report, comprising the financial
statements and notes thereto, complies with International
Financial Reporting Standards (IFRS).
Note 1- Statement of Significant
Accounting Policies
Talisman Mining Limited (the Company) is a public company
listed on the Australian Securities Exchange (trading under
the symbol “TLM”) and incorporated and operating in
Australia.
The Company’s Registered Office and its principal place of
business are as follows:
Suite 1 Ground Floor / 33 Colin Street
West Perth
Western Australia 6005
The nature of the operations and principal activities of the
Company are described in the Directors’ Report.
SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
These financial statements are general purpose financial
statements, which have been prepared in accordance with
the requirements of the Corporations Act 2001, Accounting
Standards and Interpretations and comply with other
requirements of the law.
The financial statements comprise the consolidated financial
statements for the Group. For the purposes of preparing the
consolidated financial statements, the Company is a for-
profit entity.
The accounting policies detailed below have been
consistently applied to all of the years presented unless
otherwise stated. The financial statements are for the Group
consisting of Talisman Mining Limited and its subsidiaries.
The financial statements have been prepared on a historical
cost basis. Historical cost is based on the fair values of the
consideration given in exchange for goods and services.
The financial statements are presented in Australian dollars
and all values are rounded to the nearest thousand dollars
($’000) unless otherwise stated as permitted by the option
available to the Company under ASIC Corporations (Rounding
in Financial/Directors’ Reports) Instrument 2016/191. The
Company is an entity to which this instrument applies.
35
2021 Annual Report n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
(d) Significant accounting estimates and
(e) Going concern
judgements
The application of accounting policies requires the use of
judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent
from other sources. The estimates and associated
assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions are recognised in the period in
which the estimate is revised if it affects only that period, or
in the period of the revision and future periods if the revision
affects both current and future periods.
Useful lives of depreciable assets
Management reviews its estimate of the useful lives of
depreciable assets at each reporting date, based on the
expected utility of the assets. Uncertainties in these estimates
relate to technical obsolescence that may change the utility
of certain software and IT equipment.
Share-based payment transactions
The Group measures the cost of equity-settled transactions
with employees and Directors by reference to the fair value
of the equity instruments at the date at which they are
granted. The fair value is determined by utilising a Black
Scholes model, using the assumptions detailed in Note 18.
Ore reserve and resource estimates
The Group estimates its ore reserves and mineral resources
based on information compiled by Competent Persons
(as defined in the 2012 edition of the Australasian Code
for Reporting of Exploration Results, Mineral Resources
and Ore Reserves [the JORC Code]). Reserves determined
in this way are taken into account in the calculation of
depreciation, amortisation, impairment, deferred mining
costs, rehabilitation and environmental expenditure.
In estimating the remaining life of the mine for the purposes
of amortisation and depreciation calculations, due regard is
given, not only to remaining recoverable metals contained
in proved and probable ore reserves, but also to limitations
which could arise from the potential for changes in
technology, demand, and other issues which are inherently
difficult to estimate over a lengthy time frame.
Where a change in estimated recoverable metals contained
in proved and probable ore reserves is made, depreciation
and amortisation is accounted for prospectively.
The determination of ore reserves and remaining mine
life affects the carrying value of a number of the Group’s
assets and liabilities including deferred mining costs and the
provision for rehabilitation.
The financial report has been prepared on the going
concern basis, which contemplates continuity of normal
business activities and the realisation of assets and
settlements of liabilities in the ordinary course of business.
(f) Basis of Consolidation
The consolidated financial statements incorporate the
financial statements of the Company and entities controlled
by the Company and its subsidiaries. Control is achieved
when the Company:
• has power over the investee;
•
is exposed, or has rights, to variable returns from its
involvement with the investee; and
• has the ability to use its power over the investee to affect
its returns.
The Company reassess whether or not it controls an investee
if facts and circumstances indicate that there are changes to
one or more of the three elements listed above.
When the Company has less than a majority of the voting
rights in an investee, it has the power over the investee when
the voting rights are sufficient to give it the practical ability
to direct the relevant activities of the investee unilaterally.
The Company considers all relevant facts and circumstances
in assessing whether or not the Company’s voting rights are
sufficient to give it power, including:
•
the size of the Company’s holding of voting rights relative
to the size and dispersion of holdings of the other vote
holders;
• potential voting rights held by the Company, other
vote holders or other parties; rights arising from other
contractual arrangements; and
• any additional facts and circumstances that indicate that
the Company has, or does not have, the current ability
to direct the relevant activities at the time that decisions
need to be made, including voting patterns at previous
shareholder meetings.
Consolidation of a subsidiary begins when the Company
obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income
and expenses of a subsidiary acquired or disposed of during
the year are included in the consolidated statement of
comprehensive income from the date the Company gains
control until the date when the Company ceases to control
the subsidiary.
36 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 2: Revenue and Expenses
Revenue is measured at the fair value of the consideration
received or receivable. Amounts disclosed as revenue are
net of returns, trade allowances, rebates and amounts
collected on behalf of third parties.
Interest income
Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to the
Group and the amount of revenue can be reliably measured.
Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset to that assets’ net carrying amount on initial
recognition.
Royalty income
Royalty income represents the right to receive revenues from
metals produced and sold by the operator of the mines in
which the Group owns a royalty interest and are generally
structured as a percentage of the gross revenue received
by the producer for metals sold. The Group records revenue
when control of the metals sold pass from the producer to
the purchaser under the producers’ relevant sales contracts.
Government grants
Grants from the government are recognised at their fair
value where there is a reasonable assurance that the grant
will be received, and the Group will comply with all attached
conditions.
Government grants relating to costs are deferred and
recognised in the statement of profit or loss and other
comprehensive income over the period necessary to match
them with the costs that they are intended to compensate.
Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to statement of profit
or loss and other comprehensive income on a straight-line
basis over the expected lives of the related assets.
Government grants are presented as other income in the
statement of profit or loss and other comprehensive income.
Revenue
Bank interest
Other Income
Government grants
Royalty income
Other Income
Other Expenses
Loss for the year includes the following expenses:
Non-cash share based payment expense
Other employee benefits
Operating lease rental expense
Legal and Corporate Advisory Expenses
Corporate advisory fees
Other legal fees
30 Jun 21
$ `000
28
28
30 Jun 20
$ `000
204
204
30 Jun 21
$ `000
30 Jun 20
$ `000
68
1,289
8
1,365
25
-
-
25
30 Jun 21
$ `000
30 Jun 20
$ `000
77
1,202
65
602
1,402
49
30 Jun 21
$ `000
30 Jun 20
$ `000
307
75
382
196
814
1,010
37
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 3: Income tax
The income tax expense or benefit 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.
The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end of
the reporting period in the countries where the Company’s
subsidiaries and associates operate and generate taxable
income. Management periodically evaluates positions taken
in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions
where appropriate on the basis of amounts expected to be
paid to the tax authorities.
Current tax assets and liabilities for the current and prior
periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The
tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the
balance date.
Deferred income tax is provided on all temporary
differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences except:
• when the deferred income tax liability arises from the
initial recognition of an asset or liability in a transaction
that is not a business combination and that, at the time of
the transaction, affects neither the accounting profit nor
taxable profit or loss; or
• when the taxable temporary difference is associated
with investments in subsidiaries, associates or interests
in joint ventures, and the timing of the reversal of
the temporary difference can be controlled and it is
probable that the temporary difference will not reverse
in the foreseeable future.
Deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets
and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible
temporary differences and the carry-forward of unused tax
credits and unused tax losses can be utilised, except:
• when the deferred income tax asset relating to the
deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit or loss; or
• when the deductible temporary difference is associated
with investments in subsidiaries, associates or interests
in joint ventures, in which case a deferred tax asset is
only recognised to the extent that it is probable that the
temporary difference will reverse in the foreseeable future
and taxable profit will be available against which the
temporary difference can be utilised.
The carrying amount of deferred income tax assets is
reviewed at each balance date and reduced to the extent
that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred income tax
asset to be utilised.
Unrecognised deferred income tax assets are reassessed at
each balance date and are recognised to the extent that it
has become probable that future taxable profit will allow the
deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at
the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively
enacted at the balance date.
Income taxes relating to items recognised directly in equity
are recognised in equity and not in profit or loss.
R&D tax rebates are presented with the government grant
approach. The credit will be recognised in profit before tax
over the periods necessary to match the benefit of the credit
with the costs for which it is intended to compensate. These
periods will then depend on whether the R&D costs are
capitalised or expensed as incurred.
Deferred tax assets and deferred tax liabilities are offset
only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax
assets and liabilities relate to the same taxable entity and
the same taxation authority.
30 Jun 21
30 Jun 20
$`000
$`000
The prima facie income tax expense on pre-tax accounting loss from operations reconciles
to the income tax benefit in the financial statements as follows:
Accounting loss before income tax
(2,167)
(4,803)
Income tax expense / (benefit) calculated at 26% (2020: 30%)
Non-deductible expenses
Tax losses and deferred tax balances not recognised
Income tax benefit reported in the statement of comprehensive income
(563)
20
543
-
(1,441)
183
1,258
-
38 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Unrecognised deferred tax balances
Deferred tax assets compromise of:
Tax losses carried forward
Impairment of financial assets
Provisions
Other deferred tax balances
Deferred tax liabilities compromise of:
Exploration expenditure capitalised
Other deferred tax balances
Income Tax expense not recognised directly in equity during the year
30 Jun 21
30 Jun 20
$`000
$`000
4,273
4,288
39
14
-
45
55
25
4,326
4,413
-
-
-
-
-
26
26
-
The Company’s unused tax losses arising in Australia are
available indefinitely for offset against future taxable profits,
subject to the Company passing the regulatory tests for
continued use of the tax losses.
Tax consolidation legislation
The Company and its 100% owned Australian resident
subsidiaries have implemented the tax consolidation
legislation. Current and deferred tax amounts are accounted
for in each individual entity as if each entity continued to act
as a taxpayer on its own.
The Company recognises its own current and deferred tax
amounts and those current tax liabilities, current tax assets
and deferred tax assets arising from unused tax credits and
unused tax losses which it has assumed from its controlled
entities within the tax consolidated Group.
Assets or liabilities arising under tax funding agreements
with the tax consolidated entities are recognised as amounts
payable or receivable from or payable to other entities in the
Group. Any difference between the amounts receivable or
payable under the tax funding agreement are recognised as
a contribution to (or distribution from) controlled entities in
the tax consolidated Group.
Other taxes
Revenues, expenses and assets are recognised net of the
amount of GST except:
• when the GST incurred on a purchase of goods and
services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost of
acquisition of the asset or as part of the expense item as
applicable; and
•
receivables and payables, which are stated with the
amount of GST included.
The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables or
payables in the statement of financial position.
Cash flows are included in the statement of cash flows on
a gross basis and the GST component of cash flows arising
from investing and financing activities, which is recoverable
from, or payable to, the taxation authority are classified as
operating cash flows.
Commitments and contingencies are disclosed net of the
amount of GST recoverable from, or payable to, the taxation
authority.
Note 4: Segment Reporting
Talisman management has determined the operating
segments based on the reports reviewed by the Board
for strategic decision making. The Group operates in one
geographical segment, being Australia and has identified
the following continuing operating segment: Regional
Exploration.
The discontinued operation in the prior period is identified
as the Sinclair operation and represented the Group’s 100%
interest in the Sinclair Nickel Project (Sinclair) until 11 October
2019 when Talisman sold its interest to Saracen Mineral
Holdings Ltd (Saracen). Refer to Note 5.
The Group’s board and Exploration Manager are
responsible for budgets and expenditures relating to the
Group’s Regional Exploration activities. Regional Exploration
activities do not normally derive any income. Should
a project generated by Regional Exploration activities
commence generating income or lead to the development
of a mining operation, that operation would then be
disaggregated from Regional Exploration and become
reportable in a different segment.
39
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Segment Results
Continued
Operations
Discontinued
Operations
Unallocated
Items
Consolidated
Regional
Exploration
Springfield and
Sinclair
$ `000
$ `000
$ `000
$ `000
30 June 2021
Segment revenues / income
-
Segment profit / (loss) before income tax expense
(2,946)
Segment assets
Segment liabilities
30 June 2020
Segment revenues / income
1,070
(189)
-
Segment profit / (loss) before income tax expense
(3,840)
Segment assets
Segment liabilities
512
(48)
1,750
1,750
-
-
-
2,742
-
-
1,393
(971)
10,396
(115)
229
(3,705)
13,260
(472)
3,143
(2,167)
11,466
(304)
229
(4,803)
13,772
(520)
Note 5: Discontinued Operations
and Assets and Liabilities
Classified as Held for Sale
Non-current assets (or disposal groups) are classified as
held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through
continuing use. This condition is regarded as met only when
the asset (or disposal group) is available for immediate sale
in its present condition subject only to terms that are usual
and customary for sales for such asset (or disposal groups)
and the sale is highly probable. Management must be
committed to the sale, which should be expected to qualify
for recognition as a complete sale within one year from the
date of classification.
When the Group is committed to a sale plan involving loss of
control of a subsidiary, all of the assets and liabilities of that
subsidiary are classified as held for sale when the criteria
described above are met, regardless of whether the Group
will retain a non-controlling interest in its former subsidiary,
after the sale.
When the Group is committed to a sale plan involving
disposal of an investment, or a portion of an investment, in
an associate or joint venture, the investment or the portion
of the investment that will be disposed of is classified as
held for sale when the criteria described above are met,
and the Group discontinues the use of the equity method
in relation to the portion that is classified as held for sale.
Any retained portion of an investment in an associate or
joint venture that has not been classified as held for sale
continues to be accounted for using the equity method. The
Group discontinues the use of the equity method at the time
of disposal when the disposal results in the Group losing
significant influence over the associate or joint venture.
After the disposal takes place, the Group accounts for
any retained interest in the associate or joint venture in
accordance with AASB 139 unless the retained interest
continues to be an associate or a joint venture, in which case
the Group uses the equity method.
During the prior year, the Group completed a Share
Sale Agreement with Saracen Nickel Pty Ltd, a wholly
owned subsidiary of Saracen Mineral Holdings Limited
(Saracen), where Saracen acquired Talisman Nickel Pty
Ltd, the subsidiary which held the Company’s interest in the
Sinclair Nickel Project on a debt-free and cash-free basis.
Completion occurred on 11 October 2019. The 30 June 2020
financial report disclosed a profit after tax of $2.742 million
from this discontinued operation. At 30 June 2019, the Group
had assets classified as held for sale of $16.123 million and
liabilities directly associated with assets held for sale of
$9.139 million in relation to Talisman Nickel Pty Ltd.
During the 2021 financial year, the Group completed royalty
sale and purchase agreements with Northern Star Resources
Limited (ASX: NST) for the purchase of the net smelter return
(NSR) royalties over the Sinclair and Waterloo Nickel Projects
in Western Australia and with Sandfire Resources Limited
(ASX: SFR) for the purchase of the NSR royalty over the
Springfield Copper-Gold Project also in Western Australia.
These two transactions realised cash consideration of $0.75
million and $1.0 million respectively.
40 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Profit after tax from discontinued operations
Financial performance of discontinued operations
Gain on disposal of subsidiary
Profit on sale of royalty
Exploration expenditure expensed as incurred
Care and maintenance expenses
Administrative expenses
Unwinding of discount on provisions
Profit before income tax
Income tax
Profit after income tax
Cash flows
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
Net cash flows
Note 6: Earnings/Loss Per Share
Basic earnings/loss per share is calculated as net profit/
loss attributable to members of the parent, adjusted to
exclude any costs of servicing equity (other than dividends)
and preference share dividends, divided by the weighted
average number of ordinary shares, adjusted for any
bonus element.
Diluted earnings per share is calculated as net profit/loss
attributable to members of the parent, adjusted for:
•
costs of servicing equity (other than dividends) and
preference share dividends;
30 Jun 21
$ `000
30 Jun 20
$ `000
-
1,750
-
-
-
-
1,750
-
1,750
3,168
-
(245)
(104)
(1)
(76)
2,742
-
2,742
30 Jun 21
$ `000
30 Jun 20
$ `000
-
1,750
-
1,750
(478)
9,868
451
9,841
•
the after-tax effect of dividends and interest associated
with dilutive potential ordinary shares that have been
recognised as expenses; and
• other non-discretionary changes in revenues or
expenses during the period that would result from the
dilution of potential ordinary shares; divided by the
weighted average number of ordinary shares and dilutive
potential ordinary shares, adjusted for any bonus element.
The Group does not report diluted earnings per share on
incurring an operating loss for the financial year, or in the event
there are no dilutive potential ordinary shares in existence.
4 1
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Basic loss per share
Diluted earnings per share
Basic loss per share from continuing operations
Diluted loss per share from continuing operations
Net loss for the year
Net loss for the year from continuing operations
30 Jun 21
30 Jun 20
cents
(1.16)
(1.16)
(2.10)
(2.10)
$ ’000
(2,167)
(3,917)
cents
(2.58)
(2.58)
(4.05)
(4.05)
$ ‘000
(4,803)
(7,545)
Number
Number
Weighted average number of ordinary shares for the purpose of basic and diluted loss per share
186,628,385
186,318,883
Note 7: Cash and Cash Equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash at bank and on hand
Short-term deposits
30 Jun 21
$ `000
1,160
8,740
9,900
30 Jun 20
$ `000
1,357
11,580
12,937
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying
periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest
at the respective short-term deposit rates.
Reconciliation to the Statement of Cash Flows:
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash on hand and at bank and
investments in money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents as shown in the
statement of cash flows is reconciled to the related items in the statement of financial position as follows:
Profit / (loss) for the year after tax
Adjustments for:
Gain on disposal of royalty rights/business
Working capital adjustment on disposal of business
Depreciation and amortisation
Unwinding discount rate on mine closure provision
Equity settled share-based payments
Unlisted options forfeited
Shares issued for expensed exploration expenditure
Changes in net assets and liabilities
(Increase)/decrease in assets:
Trade and other receivables
Increase/(decrease) in liabilities:
Trade and other payables
Provisions
Net cash used in operating activities
42 Talisman Mining Limited
30 Jun 21
30 Jun 20
$ `000
(2,167)
$ `000
(4,803)
(1,750)
(3,168)
-
216
-
92
(15)
-
390
224
76
648
(46)
100
(925)
35
(78)
(56)
(4,683)
(826)
10
(7,360)
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 8: Trade and Other Receivables
Trade receivables are measured on initial recognition at fair
value and are subsequently measured at amortised cost
using the effective interest rate method, less any allowance
for impairment. Trade receivables are generally due for
settlement within periods ranging from 30 days to 45 days.
There are no receivables at balance date that are past-due.
contractual payments to the Group. The impairment
allowance is set equal to the difference between the
carrying amount of the receivable and the present value
of estimated future cash flows, discounted at the original
effective interest rate. Where receivables are short-term
discounting is not applied in determining the allowance.
Impairment of trade receivables is continually reviewed and
those that are considered to be uncollectible are written
off by reducing the carrying amount directly. An allowance
account is used when there is an expectation that the
Group will not be able to collect all amounts due according
to the original contractual terms. Factors considered by
the Group in making this determination include known
significant financial difficulties of the debtor, review of
financial information and significant delinquency in making
The amount of the impairment loss is recognised in the
statement of comprehensive income within other expenses.
When a trade receivable for which an impairment allowance
had been recognised becomes uncollectible in a subsequent
period, it is written off against the allowance account.
Subsequent recoveries of amounts previously written off are
credited against other expenses in the statement of profit or
loss and other comprehensive income.
Current Assets
Goods and services tax recoverable
Other debtors
Prepayments
Non-Current Assets
Other debtors – security bonds
30 Jun 21
$ `000
30 Jun 20
$ `000
166
1,151
16
1,333
13
13
36
198
71
305
120
120
Note 9: Property, plant and equipment
Plant and equipment is stated at cost less accumulated
depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for
capitalisation when the cost of replacing the parts is incurred.
Similarly, when each major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment
as a replacement only if it is eligible for capitalisation.
Land and buildings are measured at fair value less
accumulated depreciation on buildings and less any
impairment losses recognised after the date of the revaluation.
Depreciation is calculated on a straight-line basis over the
estimated useful life of the assets as follows:
Mine site plant and equipment
Units of Production
Office furniture and equipment
Motor vehicles
Leasehold improvements
2-6 years
8-10 years
10 years
The assets’ residual values, useful lives and amortisation
methods are reviewed, and adjusted if appropriate, at each
financial year end.
Impairment
The carrying values of plant and equipment are reviewed for
impairment at each balance date, with recoverable amount
being estimated when events or changes in circumstances
indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the
higher of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash
inflows, recoverable amount is determined for the cash-
generating unit to which the asset belongs, unless the asset’s
value in use can be estimated to approximate fair value.
An impairment exists when the carrying value of an asset
or cash-generating unit exceeds its estimated recoverable
amount. The asset or cash-generating unit is then written
down to its recoverable amount.
For plant and equipment, impairment losses are recognised
in the statement of comprehensive income. However,
because land and buildings are measured at revalued
amounts, impairment losses on land and buildings are
treated as a revaluation decrement.
Derecognition and disposal
An item of property, plant and equipment is derecognised
upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included
in profit or loss in the year the asset is derecognised.
43
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Year ended 30 June 2021
At 1 July 2020, net of accumulated
depreciation
Additions
Disposals
Depreciation charge for the year
Year ended 30 June 2020
At 1 July 2019, net of accumulated
depreciation
Additions
Depreciation charge for the year
At 30 June 2021
Cost or fair value
Accumulated depreciation
Net carrying amount
At 30 June 2020
Cost or fair value
Accumulated depreciation
Net carrying amount
Consolidated
Office furniture
and equipment
Leasehold
improvements
Plant and
equipment
$ `000
$ `000
$ `000
Motor
vehicles
$ `000
Total
$ `000
135
6
(7)
(50)
84
155
40
(60)
135
843
(759)
84
844
(709)
135
21
-
-
(7)
14
24
4
(7)
21
56
(42)
14
56
(35)
21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
126
-
-
(23)
103
155
-
(29)
126
427
(324)
103
427
(301)
126
282
6
(7)
(80)
201
334
44
(96)
282
1,326
(1,125)
201
1,327
(1,045)
282
The carrying value of plant and equipment held under hire purchase contracts as at 30 June 2021 is nil (2020: nil).
Note 10: Right-of-use Assets
Carrying Value
Cost
Accumulated depreciation
Carrying value at end of financial year
Reconciliation
Opening balance at start of financial year
Recognised on 1 July 2019 on adoption of AASB 16
Depreciation expense
Closing balance at end of financial year
44 Talisman Mining Limited
30 Jun 21
$ `000
164
(164)
-
30 Jun 20
$ `000
164
(82)
82
30 Jun 21
$ `000
30 Jun 20
$ `000
82
-
(82)
-
-
164
(82)
82
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 11: Intangible Assets
Intangible assets acquired separately
Intangible assets acquired separately are recorded at
cost less accumulated amortisation and impairment.
Amortisation is charged on a straight-line basis over
their estimated useful lives. The estimated useful life and
amortisation method is reviewed at the end of each annual
reporting period, with any changes in these accounting
estimates being accounted for on a prospective basis.
Impairment of tangible and intangible assets other than
goodwill
The Group assesses at each balance date whether there
is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for
an asset is required, the Group makes an estimate of the
asset’s recoverable amount. An asset’s recoverable amount
is the higher of its fair value less costs to sell and its value
in use and is determined for an individual asset, unless
the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets
and the asset’s value in use cannot be estimated to be
close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it
belongs. When the carrying amount of an asset or cash-
generating unit exceeds its recoverable amount, the asset or
cash-generating unit is considered impaired and is written
down to its recoverable amount.
Software license
Cost
Accumulated amortisation
Carrying value at end of financial year
Reconciliation
Opening balance at start of financial year
Additions
Amortisation expense
Closing balance at end of financial year
30 Jun 21
30 Jun 20
$ `000
$ `000
168
146
(149)
(99)
19
47
30 Jun 21
30 Jun 20
$ `000
$ `000
47
22
(50)
19
55
36
(44)
47
45
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 12: Deferred exploration and evaluation expenditure
Exploration for and evaluation of mineral resources is the
search for mineral resources after the entity has obtained
legal rights to explore in a specific area, as well as the
determination of the technical feasibility and commercial
viability of extracting the mineral resource.
Exploration and evaluation expenditure is expensed to the
profit or loss as incurred except in the following circumstances
in which case the expenditure may be capitalised:
•
•
the existence of a mineral deposit has been established
however additional expenditure is required to determine
the technical feasibility and commercial viability of
extraction and it is anticipated that future economic
benefits are more likely than not to be generated as a
result of the expenditure; and
the exploration and evaluation activity is within an area
of interest which was acquired as an asset acquisition or
in a business combination and measured at fair value
on acquisition.
A regular review is undertaken of each area of interest
to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest. An
impairment exists when the carrying value of expenditure
exceeds its estimated recoverable amount. The area of
interest is then written down to its recoverable amount
and the impairment losses are recognised in the statement
of comprehensive income. Where an impairment loss
subsequently reverses, the carrying amount of the asset is
increased to the revised estimate of its recoverable amount,
but only to the extent 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 in previous years.
Upon approval for the commercial development of an
area of interest, exploration and evaluation assets are
tested for impairment and transferred to ‘Mine properties
and development’. No amortisation is charged during the
exploration and evaluation phase.
Costs carried forward in respect of areas of interest in the following phases:
Exploration and evaluation phase – at cost
Balance at beginning of year
Expenditure incurred
Exploration expensed as incurred
Carrying value at end of financial year
30 Jun 21
30 Jun 20
$ `000
$ `000
-
2,858
2,858
-
3,860
3,860
(2,858)
(3,860)
-
-
The recoupment of costs carried forward in relation to the areas of interest in the exploration and evaluation phases is
dependent on the successful development and commercial exploitation or the sale of the respective areas.
Life to date
project
expenditure
expensed
Project
Expenditure
expensed in the
period
Life to date
project
expenditure
expensed
Project
Expenditure
expensed in the
period
30 Jun 21
30 Jun 20
$ `000
10,378
1,043
111
11,532
$ `000
2,180
676
2
2,858
$ `000
8,198
367
109
8,674
$ `000
3,474
367
19
3,860
Lachlan Copper
Lucknow
Other Exploration Expenses
46 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 13: Trade and Other Payables
Employee leave benefits
Trade and other payables
Trade payables and other payables are carried at amortised
cost and represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are
unpaid and arise when the Group becomes obliged to make
future payments in respect of the purchase of these goods
and services. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months.
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and
salaries, annual leave, and sick leave expected to be settled
within 12 months of the balance date are recognised in
other payables in respect of employees’ services up to the
balance date. They are measured at the amounts expected
to be paid when the liabilities are settled. Liabilities for non-
accumulating sick leave are recognised when the leave is
taken and are measured at the rates paid or payable.
Liabilities accruing to employees in respect of wages and
salaries, annual leave, and sick leave not expected to be settled
within 12 months of the balance date are recognised in non-
current other payables in respect of employees’ services up to
the balance date. They are measured as the present value of
the estimated future outflows to be made by the Group.
Current
Trade payables
Employee benefits
Other payables
Note 14: Lease liabilities
Current liabilities
Non-current liabilities
Reconciliation
Opening balance
Recognised on 1 July 2019 on adoption of AASB 16
Principal repayments
Closing balance
30 Jun 21
$ `000
30 Jun 20
$ `000
210
53
41
304
202
126
51
379
30 Jun 21
$ `000
30 Jun 20
$ `000
-
-
-
86
-
86
30 Jun 21
$ `000
30 Jun 20
$ `000
86
-
(86)
-
-
164
(78)
86
The Group leases office premises in Perth, Western Australia. The lease term is 3 years, expiring in July 2021.
Underlying assets serve as security for the related lease liabilities.
Lease payments not recognised as a liability
Lease payments expensed during the period and thus not included in the measurement of the lease liability are as follows:
(Note, the lease on office premises in Perth, Western Australia, ended as at the 30 June 2021)
Short term leases
30 Jun 21
$ `000
65
30 Jun 20
$ `000
49
At 30 June 2021 the Group was committed to short-term leases, giving rise to total commitments of $Nil (2020:$88,820) at that
date. Total cash outflow relating to leases for the period ended 30 June 2021 was $ 86,179 (2020:$84,123)
47
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 15: Provisions
Employee benefits
The provision for employee benefits represents vested long service leave entitlements accrued.
The liability for long service leave 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 balance date. Consideration is
given to expected future wage and salary levels, experience of employee departures, and period of service. Expected future
payments are discounted using market yields at the balance date on government bonds with terms to maturity and currencies
that match, as closely as possible, the estimated future cash outflows.
Current
Employee benefits
Reconciliation
Balance at beginning of financial year
Long service leave arising during the year
Long service leave taken during the year
Balance at the end of financial year
Note 16: Issued Capital
Ordinary shares
Issued and fully paid
30 Jun 21
$ `000
30 Jun 20
$ `000
-
-
56
56
30 Jun 21
$ `000
30 Jun 20
$ `000
56
56
1
(57)
-
15
(15)
56
30 Jun 21
30 Jun 20
$
$
31,966,023
31,966,023
30 Jun 21
30 Jun 20
Number
$
Number
$
Movements in ordinary shares on issue
At 1 July
186,628,385
31,966,023
185,699,879
31,866,023
Issue of shares to Lucknow Gold (i)
-
-
928,506
100,000
At 30 June
186,628,385
31,966,023
186,628,385
31,966,023
Fully paid ordinary shares carry one vote per share and carry the right to dividend.
(i) On 30 October 2019 the Company issued 928,506 shares to Lucknow Gold Ltd (‘Lucknow’) in satisfaction of subsidiary Haverford Holdings Pty Ltd’s obligation to
pay the first $100,000 to Lucknow pursuant to a Farm-In Agreement executed on 26 August 2019.
Ordinary shares entitled 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.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
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.
Share Options
The Company has one share-based payment option scheme under which options to subscribe for the Company’s shares have
been granted to certain Directors, other key management personnel and all employees, refer Note 18.
48 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 17: Reserves and Accumulated Losses
Share-based payments reserve
This reserve is used to record the value of equity benefits provided to employees and Directors as part of their remuneration.
Refer to Note 18 for further details of these plans.
Accumulated Losses
Balance at beginning financial year
Net loss for the year
Transfer on unlisted options forfeited
Balance at end of financial year
Reserves
Share-based payment reserve
Balance at end of financial year
30 Jun 21
$ `000
30 Jun 20
$ `000
(19,479)
(2,167)
196
(21,450)
(14,753)
(4,803)
77
(19,479)
646
646
765
765
Movement in this reserve is set out in the Statement of Changes in Equity.
Note 18: Share-Base Payment Plans
Executive and Employee Equity Plan (“EEEP”)
The Group has an Executive and Employee Equity Plan (“EEEP”) for executives and employees of the Group. In accordance with
the provisions of the EEEP, as approved by shareholders at a previous Annual General Meeting, executives and employees may
be granted options at the discretion of the Directors.
Each employee share option converts into one ordinary share of Talisman Mining Limited on exercise. No amounts are paid or
payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may
be exercised at any time from the date of vesting to the date of their expiry.
The number of options granted is at the sole discretion of the Directors subject to the total number of outstanding options being
issued under the EEEP not exceeding 5% of the Company’s issued capital at any one time.
Options issued to Directors are not issued under the EEEP but are subject to approval by shareholders and attach vesting
conditions as appropriate.
The contractual life of each option granted is 2 to 5 years. There are no cash settlement alternatives.
The following options lapsed during the financial year:
Grant Date
07-May-19
07-May-19
07-May-19
27-Nov-19
27-Nov-19
27-Nov-19
Expiry date
of options
Number of shares
under option
Exercise price
of options
Fair Value
Vested Date Number Lapsed
31-Oct-20
2,500,002
31-Oct-20
2,500,001
31-Oct-20
2,499,999
31-Oct-20
31-Oct-20
31-Oct-20
194,444
194,444
194,444
$0.14
$0.16
$0.18
$0.14
$0.16
$0.18
$0.03
$0.03
$0.02
$0.02
$0.02
$0.02
31-Oct-19
(2,500,002)
31-Oct-19
(2,500,001)
31-Oct-19
(2,499,999)
30-May-20
(194,444)
30-May-20
(194,444)
30-May-20
(194,444)
No options were issued during the financial year.
49
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
The following share-based arrangements were in place at the end of the financial year:
Issuing entity
Grant Date
Expiry date
of options
Number of shares
under option
Exercise price
of options
Fair Value
Vested Date
Talisman Mining Limited
11-Nov-16
31-Oct-21
Talisman Mining Limited
11-Nov-16
31-Oct-21
40,000
40,000
Talisman Mining Limited
7-May-19
31-Oct-21
2,500,002
Talisman Mining Limited
27-Nov-19
31-Oct-21
194,444
Talisman Mining Limited
7-May-19
31-Oct-21
2,499,999
Talisman Mining Limited
27-Nov-19
31-Oct-21
194,444
Talisman Mining Limited
7-May-19
31-Oct-21
2,499,999
Talisman Mining Limited
27-Nov-19
31-Oct-21
194,444
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,335
Talisman Mining Limited
27-Nov-19
31-Oct-22
Talisman Mining Limited
7-May-19
31-Oct-22
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,444
2,083,331
194,444
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,334
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,448
$0.46
$0.50
$0.14
$0.14
$0.16
$0.16
$0.18
$0.18
$0.14
$0.14
$0.16
$0.16
$0.18
$0.18
$0.32
30-Jun-19
$0.32
30-Jun-20
$0.04
30-Apr-20
$0.03
30-Nov-20
$0.04
30-Apr-20
$0.03
30-Nov-20
$0.04
31-Oct-20
$0.03
30-Nov-20
$0.05
31-Oct-20
$0.04
30-May-21
$0.05
31-Oct-20
$0.04
30-May-21
$0.04
31-Oct-20
$0.04
30-May-21
The weighted average exercise price of each share option at the end of the financial year was $0.16 (2020: $0.16). The weighted
average remaining contract life of each share option at the end of the financial year was 0.80 years (2020: 1.30 years).
There has been no alteration of the terms and conditions of the above share-based payment arrangements since grant date.
The following options were forfeited during the year:
Issuing entity
Grant Date
Expiry date of
options
Number of shares
under option
Exercise price
of options
Fair Value
Vested Date
Talisman Mining Limited
7-May-19
31-Oct-22
Talisman Mining Limited
7-May-19
31-Oct-22
Talisman Mining Limited
7-May-19
31-Oct-22
111,111
111,111
111,110
$0.14
$0.16
$0.18
$0.05
31-Oct-20
$0.05
31-Oct-20
$0.04
31-Oct-20
30 Jun 21
30 Jun 20
Number
$
Number
$
Movements in options over ordinary shares on issue
At 1 July
23,413,334
764,607
23,120,000
239,783
Directors’ and employees’ remuneration
-
91,856
1,750,000
648,209
Unlisted options forfeited
Unlisted options cancelled
Unlisted options lapsed
At 30 June
(333,332)
(14,544)
(1,166,666)
(46,029)
-
-
-
(8,083,334)
(196,375)
(290,000)
14,996,668
645,544
23,413,334
-
(77,356)
764,607
The fair value of options granted during the year was $Nil (2020: $53,861).
50 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
The fair value of the equity-settled share options granted under the option plan is estimated as at the date of grant using the
Black-Scholes model taking into account the terms and conditions upon which the options were granted.
November 2019 Options
Option Tranche and Series
Inputs into model
Exercise price
1a
1b
1c
2a
2b
2c
3a
3b
3c
$ 0.14
$ 0.16
$ 0.18
$ 0.14
$ 0.16
$ 0.18
$ 0.14
$ 0.16
$ 0.18
Grant date share price (5 day VWAP)
$0.089
$0.089
$0.089
$0.089
$0.089
$0.089
$0.089
$0.089
$0.089
Expected volatility
98%
98%
98%
98%
98%
98%
98%
98%
98%
Risk-free interest rate
0.77%
0.77%
0.77%
0.77%
0.77%
0.77%
0.77%
0.77%
0.77%
Dividend yield (%)
Nil
Nil
Nil
Expected life of options (years)
0.93
0.93
0.93
Nil
1.93
Nil
1.93
Nil
1.93
Nil
Nil
Nil
2.93
2.93
2.93
May 2019 Options
Inputs into model
Exercise price
Option Tranche and Series
1a
1b
1c
2a
2b
2c
3a
3b
3c
$ 0.14
$ 0.16
$ 0.18
$ 0.14
$ 0.16
$ 0.18
$ 0.14
$ 0.16
$ 0.18
Grant date share price (5 day VWAP)
$0.088
$0.088
$0.088
$0.088
$0.088
$0.088
$0.088
$0.088
$0.088
Expected volatility
98%
98%
98%
98%
98%
98%
98%
98%
98%
Risk-free interest rate
1.67%
1.67%
1.67%
1.67%
1.67%
1.67%
1.67%
1.67%
1.67%
Dividend yield (%)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Expected life of options (years)
1.50
1.50
1.50
2.50
2.50
2.50
3.50
3.50
3.50
November 2016 Options
Option Tranche
Inputs into model
Exercise price
Exercise price post capital return (i)
4
$ 0.62
$ 0.46
5
$ 0.66
$ 0.50
Grant date share price (5 day VWAP)
$ 0.425
$ 0.425
Expected volatility
Risk-free interest rate
Dividend yield (%)
113%
1.77%
Nil
113%
1.77%
Nil
Expected life of options (years)
5.00
5.00
(i)
Exercise price adjusted after 15.625 cents per share return of capital on 8 March 2019. The expected life of the options is based on historical data and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome. No other features of options granted were incorporated into the measurement of fair value.
5 1
2021 Annual Report n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 19: Financial Instruments
(a)
Introduction
The Group has exposure to the following risks arising from
financial instruments:
• Credit risk
•
•
Liquidity risk
Interest rate risk
• Capital risk
•
Foreign currency risk
This note presents information about the Group’s exposure
to each of the above risks, their objectives, policies and
processes for measuring and managing risk and the
(b) Categories of financial instruments
management of capital. Further quantitative disclosures are
included throughout this note and the financial report.
The Board of Directors has overall responsibility for the
establishment and oversight of the risk management
framework. Risk management policies are established
to identify and analyse risks faced by the Group, to set
appropriate risk limits and controls and to monitor risks
and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in
market conditions and the Group‘s activities. The Group’s
aim is to develop a disciplined and constructive control
environment in which all employees understand their roles
and obligations.
Financial assets
Cash and cash equivalents
Receivables
Financial liabilities
Trade and other payables
Lease liabilities
30 Jun 21
30 Jun 20
$ `000
$ `000
9,900
1,346
11,246
304
-
304
12,937
425
13,362
379
86
465
Fair value of financial assets and liabilities
The carrying amount of financial assets and financial
liabilities recorded in the financial statements represents
their respective net fair values, determined in accordance
with the accounting policies disclosed in Note 1.
of its counterparties are continuously monitored, and
the aggregate value of transactions concluded is spread
amongst approved counterparties. Credit exposure is
controlled by counterparty limits that are reviewed and
approved by the Risk Management Committee annually.
The Directors consider that the carrying amounts of financial
assets and financial liabilities recorded in the financial
statements approximate their fair value.
(c) Credit risk management
Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in financial loss to
the Group. The Group has adopted a policy of only dealing
with creditworthy counterparties and obtaining sufficient
collateral where appropriate, as a means of mitigating
the risk of financial loss from defaults. The Group only
transacts with entities that are rated the equivalent of
investment grade and above. This information is supplied
by independent rating agencies where available and, if
not available, the Group uses publicly available financial
information and its own trading record to rate its major
customers. The Group’s exposure and the credit ratings
Credit risk in other receivables is managed by the Group
undertaking a regular risk assessment process including
assessing the credit quality of the counterparty, considering
its financial position, past experience and other factors. As
there are a relatively small number of transactions, they are
closely monitored to ensure payments are made on time.
Credit risk arising from royalty receivables is managed by
a contract that stipulates payment terms and penalties for
default. The Group does not have any significant receivables
which are past due or impaired at the reporting date and it
is expected that these amounts will be received when due.
The Group does not hold any collateral in relation to these
receivables.
The carrying amount of financial assets recorded in the
financial statements, net of any allowance for losses,
represents the Group’s maximum exposure to credit risk.
52 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
(d) Liquidity Risk Management
Ultimate responsibility for liquidity risk management rests
with the board of Directors, who have built an appropriate
liquidity risk management framework for the management
of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages
liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities by continuously
monitoring forecast and actual cash flows and matching the
maturity profiles of financial assets and liabilities.
The following table details the Company’s and the Group’s
expected contractual maturity for its non-derivative financial
liabilities. These have been drawn up based on undiscounted
contractual maturities of the financial asset and liabilities
based on the earliest date the Group can be required to repay.
The tables include both interest and principal cash flows.
Less than
1 month
$ `000
1 to 3
months
$ `000
3 months
to 1 year
1 to 5
years
5+
years
No fixed
term
$ `000
$ `000
$ `000
$ `000
Total
$ `000
2021
Financial Assets
Non-interest bearing
Variable interest rate
Fixed interest rate
Financial Liabilities
Non-interest bearing
Fixed interest rate
2020
Financial Assets
Non-interest bearing
Variable interest rate
Fixed interest rate
Financial Liabilities
Non-interest bearing
Fixed interest rate
166
6,820
-
6,986
264
-
264
108
1,357
-
1,465
253
-
253
-
-
3,080
3,080
-
-
-
-
-
11,580
11,580
-
-
-
16
-
120
136
40
-
40
-
-
-
-
126
-
126
-
-
13
13
-
-
-
-
-
120
120
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,031
-
-
1,031
-
-
-
197
-
-
197
-
-
-
1,213
6,820
3,213
11,246
304
-
304
305
1,357
11,700
13,362
379
-
379
(e)
Interest rate risk
(f) Capital risk management
The Group is not exposed to interest rate risk on existing
finance facilities as the Group’s borrowings are at fixed
interest rates for the respective terms of the facilities.
Some of the Group’s assets are subject to interest rate risk
but the Group is not dependent on this income.
Interest rate sensitivity analysis
The sensitivity analysis of the Group’s exposure to interest
rate risk at the reporting date has been determined based
on a change of 50 basis points in interest rates taking place
at the beginning of the financial year and held constant
throughout the year.
At reporting date, if interest rates had been 50 basis points
higher and all other variables were constant, the Group’s net
loss would have reduced by $34,100 (2020: net loss reduced
by $6,778).
The Board’s policy is to maintain a strong capital base so
as to maintain investor, creditor and market confidence and
to sustain future development of the business. The capital
structure of the Group consists of equity only, comprising
issued capital and reserves, net of accumulated losses.
The Group’s policy is to use capital market issues and debt
funding to meet the funding requirements of the Group.
There were no changes in the Group’s approach to capital
management during the year.
The Group is not subject to externally imposed capital
requirements.
53
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
(g) Foreign currency exchange rate risk
management
The Group undertakes certain borrowing transactions
denominated in United States Dollars, hence exposures to
exchange rate fluctuations arises.
The carrying amounts of the Group’s foreign currency
denominated monetary assets and monetary liabilities at
balance date are as follows:
Consolidated
Liabilities
Assets
2021
$’000
-
2020
$’000
-
2021
$’000
1
2020
$’000
1
US Dollars
Foreign currency sensitivity analysis
The sensitivity analysis below details the Group’s sensitivity
to an increase/decrease in the Australian dollar against
the United States dollar. The sensitivity analysis includes
only outstanding foreign currency denominated monetary
items, including external loans within the Group where the
denomination of the loan is in a currency other than the
currency of the lender or the borrower and adjusts their
translation at balance date by a 1% increase in foreign
currency rates.
A 1% increase in the currency rate is the sensitivity rate
used when reporting foreign currency risk internally to
management and represents management’s assessment of
the possible change in foreign exchange rates.
At balance date, if foreign exchange rates had been 1% higher
and all other variables were held constant, the Group’s
• net loss would increase by $11 (2020: net loss increase of
$10) and
• equity reserves would increase/decrease by $Nil
(2020: $Nil).
Note 20: Joint Operations
In November 2017, Haverford Holdings Pty Ltd (“Haverford”),
a 100%-owned subsidiary of Talisman, entered into a Farm-
In Agreement (“FIA”) with Peel Mining Limited (ASX:PEX,
“Peel”) over Peel’s Mt Walton (EL8414) and Michelago
(EL8451) Projects (collectively the Peel Tenements) in the
Cobar Basin region of New South Wales. During the financial
year, and in accordance with the terms of the FIA, Haverford
earned a 75% interest in the Peel Tenements and formed an
unincorporated joint venture (the “Mt Walton JV”) with Peel.
Haverford is the Joint Venture Manager. Subsequent to the
formation of the Mt Walton JV, Peel elected to dilute part of
its participating interest in the joint venture and both parties
are now required to contribute funds to ongoing exploration
activities on the Peel Tenements based on their participating
interest (Haverford 80% and Peel 20%) in order to maintain
their respective interests.
Additionally, in August 2019, Talisman B Pty Ltd (“TLMB”), a
100%-owned subsidiary of Talisman, entered into a Farm-In
Agreement (“Agreement”) with privately-owned Lucknow
Gold Ltd (“LGL”) over LGL’s Lucknow Gold Project (EL6455)
(Lucknow Project) in New South Wales. During the financial
year, and in accordance with the terms of the Agreement,
TLMB earned a 51% interest in the Lucknow Project and
formed an unincorporated joint venture (the “Lucknow
Gold JV”) with LGL. TLMB acts as manager of the joint
venture. Both parties are now required to contribute funds
to future activities on the Lucknow Project based on their
participating interest (TLMB 51% and LGL 49%) in order to
maintain their respective interests.
The Group is entitled to a proportionate share of the income
received and bears a proportionate share of the operation’s
expenses for each joint venture.
The joint operation accounts, which are proportionately
consolidated based on the above equity percentages in the
consolidated financial statements, are disclosed as follows:
Joint
Operation
Operator
Mt Walton JV Haverford
Holdings Pty Ltd
Talisman B Pty Ltd
Lucknow
Gold JV
Jun 2021
Jun 2020
Beneficial
Interest
Beneficial
Interest
80%
51%
-
-
The Group’s interests in the assets/liabilities employed in the
above Joint Operations are detailed below. The amounts are
included in the financial statements under their respective
asset categories.
54 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Mt Walton JV
Assets
Cash and cash equivalents
Trade and other receivables
Total assets
Liabilities
Trade and other payables
Total liabilities
Net assets
Carrying amount of interest in joint venture
Lucknow Gold JV
Assets
Cash and cash equivalents
Trade and other receivables
Total assets
Liabilities
Trade and other payables
Total liabilities
Net assets
Carrying amount of interest in joint venture
30 Jun 21
$’000
30 Jun 20
$’000
461
18
479
126
126
353
353
-
-
-
-
-
-
-
30 Jun 21
$’000
30 Jun 20
$’000
23
1
24
5
5
19
19
-
-
-
-
-
-
-
The Joint Ventures have no contingent liabilities and capital commitments with the exception that in order to maintain current
rights of tenure to exploration tenements, the Joint Ventures are required to perform exploration work to meet the activity
obligation requirements specified by various State governments. These obligations are not provided for in the financial report
and are payable as follows:
Mt Walton JV
Exploration expenditure
Within one year
After one year but not more than five years
Greater than five years
Lucknow Gold JV
Exploration expenditure
Within one year
After one year but not more than five years
Greater than five years
30 Jun 21
$’000
30 Jun 20
$’000
112
-
304
-
-
-
416
-
30 Jun 21
$’000
30 Jun 20
$’000
34
-
138
-
4
-
176
-
55
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Note 21: Commitments and Contingencies
Commitments
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform exploration work to
meet the minimum expenditure requirements specified by various State governments. These obligations are not provided for in
the financial report and are payable as follows:
Exploration expenditure
Within one year
After one year but not more than five years
Greater than five years
30 Jun 21
30 Jun 20
$’000
$’000
1,150
1,599
279
3,028
1,147
2,873
-
4,020
If the Group decides to relinquish certain exploration tenements and/or does not meet these obligations, assets recognised in
the statement of financial position may require review to determine the appropriateness of carrying values. The sale, transfer
or farm-out of exploration rights to third parties will reduce or extinguish these obligations.
Contingencies
There are no material contingent liabilities or assets as at 30 June 2021 and no contingent liabilities or assets were incurred in
the interval between the period end and the date of this financial report.
Note 22: Related Party Disclosures
Other transactions with key management personnel
No member of the key management personnel appointed during the year received a payment as part of his or her
consideration for agreeing to hold the position.
Details of key management personnel
The key management personnel of Talisman Mining Limited during the year were:
Directors
Kerry Harmanis
Non-Executive Chairman
(appointed as Chairman 15 July 2020)
Daniel Madden
Managing Director
Brian Dawes
Non-Executive Director
Karen Gadsby
Non-Executive Director
Peter Benjamin
Non-Executive Director
Jeremy Kirkwood
Non-Executive Director
(resigned as Managing Director on 1 September
2020, resigned as a Non-Executive Director on
4 November 2020)
(resigned as Non-Executive Director on
4 November 2020)
(resigned as Chairman 15 July 2020,
Non-Executive Director from 15 July 2020)
Executives
Shaun Vokes
Chief Financial Officer/ Co-Company Secretary
(resigned 30 April 2020)
Interim Chief Executive Officer
Chief Executive Officer
(appointed 2 September 2020)
(appointed 2 July 2021)
Anthony Greenaway
General Manager – Geology
(resigned 7 August 2020)
Key management personnel compensation is disclosed in the Remuneration Report which forms part of the Directors’ Report
and has been audited.
56 Talisman Mining Limited
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
The total remuneration paid to key management personnel of the Company and the Group during the year was as follows:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Share-based payments(i)
30 Jun 21
30 Jun 20
$
$
905,283
1,210,205
82,877
57,083
80,434
105,638
15,455
528,482
Total key management personnel compensation
1,125,677
1,859,780
(i) The value of share-based payments shown in the table above are non-cash values based on an accounting valuation calculated under the Black Scholes option
pricing method.
Note 23: Interest in Subsidiaries
The consolidated financial statements include the financial statements of Talisman Mining Limited and the subsidiaries listed in
the following table:
Name
Country of
Incorporation
Equity Interest
Investment
2021
%
2020
%
2021
$
2020
$
Haverford Holdings Pty Ltd
Talisman B Pty Ltd
Australia
Australia
100
100
68,000
68,000
100
100
1
1
Talisman Mining Limited is the ultimate parent entity and ultimate parent of the Group.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been
eliminated on consolidation.
Details of transactions between the Group and other related entities are disclosed below.
Note 24: Parent Entity Disclosures
The financial information for the parent entity, Talisman
Mining Limited, has been prepared on the same basis as the
consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture
entities
Investments in subsidiaries, associates and joint venture
entities are accounted for at cost in the parent entity’s
financial statements. Dividends received from associates
are recognised in the parent entity’s profit or loss, rather
than being deducted from the carrying amount of these
investments.
Share-based payments
The grant by the Company of options over its equity
instruments to the employees of subsidiary undertakings
in the Group is treated as a capital contribution to that
subsidiary undertaking. The fair value of employee services
received, measured by reference to the grant date fair
value, is recognised over the vesting period as an increase to
investment in subsidiary undertakings, with a corresponding
credit to equity.
Disclosures as at 30 June 2021 and for the year then ended
in relation to Talisman Mining Limited as a single entity are
noted below.
57
2021 Annual Report
n o t e s t o t h e C o n s o L i D a t e D f i n a n C i a L s t a t e m e n t s ( C O N T I N U E D )
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payment reserve
Accumulated losses
Total equity
Profit/(Loss) for the year
Other comprehensive income
Total comprehensive income
30 Jun 21
30 Jun 20
$ `000
$ `000
10,176
63
10,239
115
115
12,871
298
13,169
392
392
10,124
12,777
31,966
646
(22,488)
10,124
31,966
765
(19,954)
12,777
Year ended
30 Jun 21
30 Jun 20
$ `000
(2,730)
-
(2,730)
$ `000
1,513
-
1,513
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform exploration work to
meet the minimum expenditure requirements specified by various State governments. However, the parent entity itself is not
responsible for any minimum exploration expenditure commitments.
Note 25: Auditor’s Remuneration
The auditor of Talisman Mining Limited is HLB Mann Judd. Remuneration received by the auditors:
Audit or review of the financial report
Other services - preparation of Fringe Benefit Tax Return
Total Remuneration of Auditors
Note 26: Subsequent Events
30 Jun 21
30 Jun 20
$
44,967
-
44,967
$
46,274
1,750
48,024
Mr Shaun Vokes was appointed as Chief Executive Officer of the Company on 2 July 2021 and Mr Russell Gregory was appointed
Exploration Manager commencing on 2 August 2021.
58 Talisman Mining Limited
Directors’
Declaration
Talisman Mining Limited
The Directors of the Company declare that:
1.
the consolidated financial statements, comprising the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows,
Consolidated Statement of Changes in Equity, and accompanying notes are in accordance with the Corporations Act
2001, and:
a. comply with Accounting Standards and the Corporations Regulations 2001; and
b. give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended on
that date of the Group;
2.
the Chief Executive Officer of the Group has declared as required by Section 295A that:
a.
the financial records of the Group for the financial year have been properly maintained in accordance with
Section 286 of the Corporations Act 2001;
b.
the financial statements and notes for the financial year comply with the Accounting Standards; and
c.
the financial statements and notes for the financial year give a true and fair view.
3.
in the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
4. The Group has included in the notes to the financial statements an explicit and unreserved statement of compliance
with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors
Jeremy Kirkwood
23 September 2021
59
2021 Annual Report Additional Securities
Exchange Information
A S A T 2 1 S E P T E M B E R 2 0 2 1
1. Number of Holders of Equity Securities
(a) Distribution of holders of equity securities
Range
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and Over
Total
(b) Voting rights
No. of holders
156
490
415
836
290
2,187
Securities
73,778
1,524,654
3,489,017
32,187,727
149,353,209
186,628,385
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has
one vote on a show of hands.
(c) Less than marketable parcel of shares
The number of shareholders holding less than a marketable parcel is 473 (holding a total of 806,487 shares) given a share value
of $0.135 cents per share.
(d) Substantial Shareholdings
Ordinary Shareholders
Mr Kerry Kyriakos Harmanis
Fully paid ordinary shares
Number
33,859,138
%
18.14
Set out above is an extract from the Company’s register of last substantial shareholder notices as received by the Company
and/or lodged at the ASX. Shareholdings and percentages reported in the table are as reported in the most recent notifications
received, however these may differ from current holdings as substantial holders are required to notify the Company only in
respect of changes which act to increase or decrease their percentage holding by at least 1% of total
voting rights.
2. Company Secretary
The name of the company secretary is Alexander Neuling.
60 Talisman Mining Limited
a D D i t i o n a L s e C u r i t i e s e x C h a n g e i n f o r m a t i o n ( C O N T I N U E D )
3. Registered office and principal administrative office
Registered and principal administrative office:
Suite 1 Ground Floor, 33 Colin Street
West Perth, Western Australia 6005
Telephone +61 8 9380 4230
Registered securities are held at the following address:
Link Market Services Limited
Level 12, QV1 Building
250 St Georges Terrace
Perth, Western Australia 6000
4. Securities exchange listing
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian Securities
Exchange Limited.
5. Restricted securities
There are no restricted securities or securities in voluntary escrow at the date of this report.
6. Twenty largest holders of ordinary shares
Ordinary Shareholders
HARMAN NOMINEES PTY LTD
TYCHE HOLDINGS PTY LTD
HARMANIS HOLDINGS PTY LTD
TYCHE HOLDINGS PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
TYCHE HOLDINGS PTY LTD
HARMANIS HOLDINGS PTY LTD
INVESTMENT HOLDINGS PTY LTD
MR JOHN FORD
GLADIATOR SECURITIES PTY LIMITED
ARGONAUT SECURITIES (NOMINEES) PTY LTD
SIREB PTY LTD
JETOSEA PTY LTD
MR PETER CHARLES WIGHAM
CITICORP NOMINEES PTY LIMITED
REGENT CORPORATION 2001 PTY LTD
MR BRIAN ERNEST ZUCAL & MR STEPHEN BRIAN ZUCAL
SYDNEY FUND MANAGERS LIMITED
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
TYCHE HOLDINGS PTY LTD
Number
11,111,111
6,400,001
4,437,575
3,850,000
3,779,472
3,555,917
3,510,000
3,080,451
2,500,000
2,136,768
2,003,643
2,000,000
1,904,464
1,885,796
1,740,500
1,689,944
1,590,860
1,550,000
1,500,000
1,470,000
%
5.95
3.43
2.38
2.06
2.03
1.91
1.88
1.65
1.34
1.14
1.07
1.07
1.02
1.01
0.93
0.91
0.85
0.83
0.80
0.79
61
2021 Annual Report a D D i t i o n a L s e C u r i t i e s e x C h a n g e i n f o r m a t i o n ( C O N T I N U E D )
7. Unquoted equity securities
Class
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Exercise Price $
Expiry Date
Number
Number of holders
0.46
0.50
0.14
0.16
0.18
0.14
0.16
0.18
31-Oct-21
31-Oct-21
31-Oct-21
31-Oct-21
31-Oct-21
31-Oct-22
31-Oct-22
31-Oct-22
40,000
40,000
2,694,446
2,694,443
2,694,443
2,277,779
2,277,775
2,277,782
3
3
15
15
15
10
10
10
All options have no voting rights.
8. On-market buy back
At the date of this report the Company is not involved in an on-market buy-back.
62 Talisman Mining Limited
This page is intentionally left blank.
This page is intentionally left blank.
Early pastoralists hut, Truganini Pastoral Station south west of the Noisy Ned Prospect (EL 8677)
2
0
2
1
A
N
N
U
A
L
R
E
P
O
R
T
/
T
A
L
I
S
M
A
N
M
I
N
I
N
G
L
I
M
I
T
E
D
Address
Suite 1, Ground Level,
33 Colin Street
West Perth WA 6005
PO Box 349 West Perth 6872 WA, Australia
Phone
+61 8 9380 4230
Fax
+61 8 9382 8200