ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2020
CONTENTS
Corporate Directory
Chairman's Message
Review of Operations
Directors' Report
Auditor's Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Auditor's Report
ASX Additional Information
PAGE
2
3
4 - 25
26 - 37
38
39
40
41
42
43 - 73
74
75 - 78
79 - 82
1
CORPORATE DIRECTORY
Board of Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Company Secretary
Matthew Foy
Non-executive Chairman
Managing Director
Executive Director
Non-executive Director
Non-executive Director
Registered Office
Level 3, 88 William Street
Perth WA 6000
Telephone: + 61 8 9486 4036
Facsimile: +61 8 9486 4799
Compliance Manager
FT Corporate Pty Ltd
104 Colin St
West Perth WA 6005
Australian Solicitors to the Company
Allion Partners Pty Limited
Level 9, 863 Hay Street
Perth WA 6000
ASX ticker code
TIE
Website: www.tietto.com
Share Registry
Automic Pty Ltd
Level 5
126 Phillip Street
Sydney NSW 2000
Auditor
BDO Audit (WA) Pty Ltd
38 Station St
Subiaco WA 6008
2
CHAIRMAN’S MESSAGE
Dear Fellow Shareholder,
Tietto’s management has moved rapidly over the last 12 months to advance the Abujar Project to its
third resource upgrade set for October 2020 and to be close to the release of a Pre-Feasibility Study
for the development of a major gold project.
Investors have begun to recognize both the potential scale of Abujar and the quality and execution
speed of Tietto’s management team led by CEO Caigen Wang. This new interest led Tietto to raise
$56.6 million in equity funds in July 2020, giving Tietto a cash balance of over $60 million.
Subject to the delivery of a Definitive Feasibility Study, we believe that we have now raised the large
majority of any equity requirement for project development, well ahead of its likely deployment in
2021.
Tietto’s highly successful strategy of owning and operating its drilling fleet now numbering 7 diamond
rigs has enabled Tietto to consistently report over 2,000 drilling metres per week (or more than
100,000 metres per year) at a cost of less than US$35 per metre compared to contractor rates
exceeding US$200 per metre. This has resulted in extraordinarily low annual drilling costs and a very
low cost of discovery per gold ounce. Tietto intends to accelerate drilling at both the Abujar Project
and its other exploration licences as we begin the search for a second gold deposit of Abujar AG
Deposit size.
The management of Tietto at all levels is of the highest quality: our brilliant Ivorian geological team led
by Yaya Ouattara and Rock Senouvo have been successful in continuously growing gold ounce
resources, with assistance from Tietto directors Caigen Wang, Mark Strizek and Dr Paul Kitto.
We are very proud of our in-country management team led by our Country Manager Mr Fred Yao
Nkanza who has been operating and managing the Ivorian team so efficiently and professionally.
Other key members include our drilling team comprised of Chinese nationals and Ivorian nationals
ably led by our Abujar Project management team have been integral to Tietto’s rapid execution and
efficient addition of resource ounces including the recent program of deep diamond drilling at Abujar
in all conditions, year-round and during the COVID-19 pandemic.
Finally, we are very grateful to our long-standing Ivorian joint venture partners who have been working
with Caigen from Tietto’s earliest days in 2012 and have been critical for project acquisition and new
projects in West Africa. These partners have been brilliant in helping Tietto acquire exploration
ground, work with local land-holders in demanding circumstances, and other key stakeholders
including the Ivorian Government at all levels. Tietto shareholders are indebted to these gentlemen.
Other vital team members are director Hanjing Xu, company secretary Matt Foy and IR specialist
Nathan Ryan.
Tietto is an owner-operated company with the Board holding close to 10% of the capital and is
dedicated to maximizing the per-share value of Tietto.
We look forward to delivering more good news for shareholders regularly as we expedite feasibility
studies while accelerating our exploration diamond drilling program throughout 2021.
Francis Harper
3
REVIEW OF OPERATIONS
West African gold developer and explorer Tietto Minerals Limited (ASX: TIE) (Tietto) is pleased to
report on its activities for the 2020 financial year. The principal activities of the Group during the
period were gold exploration in West Africa, specifically in Côte d'Ivoire, where it is developing the
Abujar Gold Project. Tietto also has projects in Liberia.
Exploration
Resource Definition Drilling
During FY2020, Tietto completed a total of 54,232m diamond drilling with our company owned rigs
that increased in number over the period from 2 to 5rigs. The drill campaign commenced in October
2019 to infill and extend the Abujar Gold Project at depth and along strike, where the Company
believed considerable potential existed for further resource growth.
Monthly diamond drilling meters during 2019-2020
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Jul-19
Aug-19 Sep-19 Oct-19 Nov-19 Dec-19
Jan-20
Feb-20 Mar-20 Apr-20 May-20 Jun-20
Figure 1: Diamond drilling performance during the reporting year with 2 to 4 sets of diamond
drill rigs
The addition of new rigs to the company owned fleet allows Tietto to operate four rigs day/night and
keep one rig on stand‐by as a backup. In July 2020, Tietto purchased its 6th diamond drill rig, a more
powerful rig capable of drilling 1000m deep holes for the purpose of testing and defining gold
resources as part of the AG depth extension.
Tietto’s diamond drill rigs focused on multiple targets to drive resource growth:
- AG – Extending high‐grade core (19.3Mt @ 2.2 g/t Au for 1.38Moz)
- AG South – Shallow high‐grade gold mineralisation directly south of AG
- APG – Extension to shallow oxide resource 7km south of AG
- GGL (from AG to Gamina) – Directly north of AG with extensive artisanal workings.
Post year-end, the Company reported it had completed more than 61,000 drill metres, continuing with
additional programs of work until the resource cut‐off date at the end of August 2020 ahead of a
resource update announced in mid-October 2020.
4
REVIEW OF OPERATIONS (CONTINUED)
AG Deposit
Tietto’s ongoing diamond drilling program at AG is testing the extension of the resources high‐grade
core (19.3Mt @ 2.2 g/t Au for 1.38Moz). Tietto received many high to exceptionally high-grade assay
results from diamond drilling (DD) during the year, with the Company reporting nearly 40 high‐grade
gold intercepts over 50 gold gram metres within the high‐grade core at AG.
In February, Tietto intersected shallow high‐grade gold mineralisation in extensional diamond drilling
at AG, with results including:
-
-
-
-
-
13m @ 3.10 g/t Au from 10m
1m @ 30.81 g/t Au from 106m
1m @ 18.37 g/t Au from 66m
1m @ 18.28 g/t Au from 76m
1m @ 17.99 g/t Au from 98m
These were followed by further high‐grade results on 10 March, 24 March and 2 April 2020:
-
-
-
-
-
6m @ 17.52 g/t Au from 34m
10m @ 12.09 g/t Au from 286m incl. 4m @ 29.65 g/t Au
6m @ 9.35 g/t Au from 317m incl. 4m @ 13.85 g/t Au (Figure 2)
7m @ 9.38 g/t Au from 259m incl. 1m @ 53.49 g/t Au
4m @ 5.06 g/t Au from 318m.
Results from the AG deposit extended gold mineralisation up to 100m below existing resource model,
with mineralisation remaining open both along strike and down dip.
In May 2020, Tietto reported results from AG that extended gold mineralisation more than 100m
below the existing Resource model, with mineralisation intersected down to 460m below surface.
Results from AG continue to demonstrate it is a large high‐grade gold system which remains open
both along strike and down dip.
Results reported in May-July included:
-
-
-
-
-
-
5m @ 14.24 g/t Au from 401m incl. 2m @ 34.7 g/t Au (Figure 2)
8m @ 3.12 g/t Au from 276m
12m @ 7.54 g/t Au from 370m incl. 5m @ 17.22 g/t Au (Figure 3)
6m @ 2.63 g/t Au from 312m
7m @ 8.16 g/t Au from 440m; incl. 3m @ 17.16 g/t Au
2m @ 15.91 g/t Au from 233m.
5
REVIEW OF OPERATIONS (CONTINUED)
Figure 2: Oblique cross section showing latest deep drill results at AG
6
REVIEW OF OPERATIONS (CONTINUED)
Figure 3: Oblique cross section showing latest deep drill results at AG
This led the Company to plan five 650m long diamond holes to test the depth extents of the AG
system 550 metres below surface over a 650m strike length. Drilling on these holes commenced after
year-end in July 2020. First results from these holes included:
-
-
3m @ 10.78 g/t Au from 537m; incl. 1m @ 25.94 g/t Au (Figure 4)
6m @ 4.47 g/t Au from 553m; incl. 2m @ 11.64 g/t Au.
7
REVIEW OF OPERATIONS (CONTINUED)
Figure 4: Oblique cross section showing latest deep drill results at AG
High‐grade gold mineralisation at AG remains open along strike and at depth. Tietto plans to drill
more holes along strike at AG, as well as further step‐back drilling to test the depth limits of this large
high‐grade gold system. As of this reporting date, Tietto has reported 40 high-grade gold intercepts
over 50 gold gram metres within the high-grade core at AG.
8
REVIEW OF OPERATIONS (CONTINUED)
Table 1: Previously reported assay intervals greater than 50 gold gram metres1 at the AG
deposit
Hole id
ZDD035
ZDD084
ZDD095
ZDD043
ZDD082
ZDD028
ZRC171
ZDD333
ZDD027
ZRC172
ZDD180
ZDD058
ZDD061
ZRC188
ZDD074
ZDD232
ZRC164A
ZDD096
ZDD081
ARC17
ZDD029
ZRC047A
ZDD212
ZDD043
ZDD092
ZRC187
ZDD096
ZDD187
ZRC169B
ZRC037
ZDD104
ZRC044
ZRD104
ZDD235
ZDD180
ZRC188
ZDD058
ZDD093
ZDD080
ZRC174
From
76.0
55.0
215.0
111.0
83.0
39.0
238.0
173.0
70.0
108.0
286.0
179.0
254.0
70.0
174.0
370.0
268.0
173.0
78.0
48.0
91.0
208.0
401.0
177.0
147.0
100.0
122.0
259.0
186.0
66.0
364.0
74.0
245.0
440.0
317.0
252.0
194.0
0.0
54.0
240.0
To
83.0
62.0
236.0
127.0
85.0
57.0
244.0
194.0
88.0
128.0
296.0
186.0
255.0
72.0
176.0
382.0
286.0
178.0
94.0
58.0
97.0
218.0
406.0
178.0
153.0
106.0
124.0
267.0
192.0
68.0
370.0
76.0
251.0
447.0
323.0
254.0
198.0
2.0
56.0
250.0
Length g/t Au
7.0
7.0
21.0
16.0
2.0
18.0
6.0
21.0
57.79
41.76
13.02
16.31
113.30
11.72
34.17
8.73
18.0
20.0
10.0
7.0
1.0
2.0
2.0
12.0
18.0
5.0
16.0
10.0
6.0
10.0
5.0
1.0
6.0
6.0
2.0
8.0
6.0
2.0
6.0
2.0
6.0
7.0
6.0
2.0
4.0
2.0
2.0
10.0
8.37
6.56
12.09
15.50
103.90
51.14
50.65
7.54
4.90
17.27
4.75
7.46
12.07
7.16
14.23
70.35
11.49
11.37
33.53
8.26
10.52
31.10
9.91
29.50
9.60
8.16
9.35
27.70
13.63
26.33
26.05
5.00
Includes2
4.0m @ 100.73 g/t Au
4.0m @ 72.87 g/t Au
7.0m @ 38.08 g/t Au
9.0m @ 28.67 g/t Au
2.0m @ 113.3 g/t Au
1.0m @ 194.93 g/t Au
6.0m @ 34.17 g/t Au
4m @ 42.35 g/t Au
4.0m @ 34.93 g/t Au
6.0m @ 20.58 g/t Au
4.0m @ 29.65 g/t Au
7.0m @ 15.5 g/t Au
1.0m @ 103.9 g/t Au
2.0m @ 51.14 g/t Au
1.0m @ 100.39 g/t Au
5m @ 17.22 g/t Au
12.0m @ 6.92 g/t Au
4.0m @ 21.45 g/t Au
6.0m @ 8.44 g/t Au
8.0m @ 9.21 g/t Au
6.0m @ 12.07 g/t Au
6.0m @ 11.66 g/t Au
2.0m @ 34.7 g/t Au
1.0m @ 70.35 g/t Au
6.0m @ 11.49 g/t Au
4.0m @ 16.69 g/t Au
2.0m @ 33.53 g/t Au
7.0m @ 9.38 g/t Au
6.0m @ 10.52 g/t Au
2.0m @ 31.1 g/t Au
1.0m @ 55.28 g/t Au
2.0m @ 29.5 g/t Au
5.0m @ 11.44 g/t Au
3m @ 17.16 g/t Au
4.0m @ 13.85 g/t Au
2.0m @ 27.7 g/t Au
4.0m @ 13.63 g/t Au
1.0m @ 52.25 g/t Au
2.0m @ 26.05 g/t Au
10.0m @ 5.0 g/t Au
Depth Section
66
43
195
103
70
40
212
145
26B
24B
23B
28
26
28B
20
25B
70
103
253
158
218
62
141
325
249
144
71
37
80
167
350
152
126
88
100
225
156
48
336
56
221
381
278
222
169
1
47
210
29
19B
20B
25
22
20B
22B
24B
19
23B
25
17B
27B
23
20B
28
23B
19B
23B
24B
21B
25
16
24
19
24B
20B
20B
25
23B
26B
16B
1 0.4 g/t Au cut off used with max 3m internal dilution and no top cut applied
2 1.0 g/t Au cut off used with max 3m internal dilution and no top cut applied
9
REVIEW OF OPERATIONS (CONTINUED)
Figure 5: Plan view showing drill results at AG
10
REVIEW OF OPERATIONS (CONTINUED)
Figure 6: Oblique long section showing latest drill results at AG
AG South
Tietto’s diamond drilling at AG South, as part of its 50,000m campaign, is testing the strike and depth
extensions 1.5km south of the high‐grade AG core.
In June 2020 Tietto reported several high-grade intersections including:
-
8m at 8.30 g/t Au including 1m @ 64.30 g/t Au (Figure 7)
11
REVIEW OF OPERATIONS (CONTINUED)
Figure 7: Oblique cross section showing latest drill results at AG South
These results built on previous results reported by Tietto in February and March 2020 which included
1m @ 30.81 g/t Au and 2m @ 9.44 g/t Au inc. 1m @ 18.28 g/t Au.
High-grade gold mineralisation at AG South remains open along strike and at depth. Tietto plans to
drill more holes along strike as well as further step‐back drilling at AG South to test the depth limits.
APG Deposit
In January 2020, Tietto reported shallow high‐grade results from diamond drilling at the Abujar‐
Pischon-Golikro (APG) deposit, which is 7km south of the Abujar‐Gludehi (AG) deposit. APG is a wide
gold mineralised system, with best results of:
-
-
-
-
14m @ 2.45 g/t Au from 50m (Figure 9)
28.5m @ 1.04 g/t Au from 22m
9m @ 2.32 g/t Au from 160m including 4.92m @ 3.80 g/t Au
14.24m @ 1.0 g/t Au from 34m.
Tietto has progressed drilling within the three areas (Figure 8). Approximately 1.5km of combined
strike length lays undrilled within the 5km strike that hosts the APG Mineral Resource (Inferred JORC
Mineral Resource of 11.2Mt at 1.0 g/t Au for 0.35Moz).
12
REVIEW OF OPERATIONS (CONTINUED)
Figure 8: Plan view showing drill results at APG
Diamond drilling in the second half of the year continued to extend gold mineralisation along strike
and down dip at APG. Results have confirmed gold mineralisation over a 900m strike length that is
exclusive of the current Resource model of 350Koz @ 1.0g/t which has joined into a contiguous
3,500m zone, open to the north and south.
Results reported during the June quarter included:
-
-
6m @ 4.55 g/t Au from 229m incl. 1m @ 24.38 g/t Au (ZDD221) (Figure 9)
6m @ 2.67 g/t Au from 83m.
13
REVIEW OF OPERATIONS (CONTINUED)
Figure 9: Oblique Cross Section view showing drill results at APG
The gold system at APG remains open at depth – up to 280m below surface – and recent holes such
as ZDD221 confirm the presence of high-grade gold shoots. Tietto expects its drilling at APG will
deliver resource growth, enhancing its potential to provide shallow open-pittable gold ounces that
would complement a potential high-grade open-pit operation at AG.
Air Core drilling over three Abujar Tenements
Tietto engaged a contractor to commence a campaign of 26,000m of Air Core (AC) drilling over the
three Abujar tenements where gold-in-soil anomalism associated with geological structures has been
defined:
• 15,000m AC drilling was undertaken on the western most gold‐in‐soil anomaly in the Abujar
Middle tenement. Field work was completed in July 2020 and assay results are pending.
• 6,000m AC drilling was undertaken on the Abujar South tenement. Field work is ongoing and
expected to complete in August 2020.
• 5,000m AC drilling was planned on the Abujar North tenement. Field work is expected to
commence in September 2020.
14
REVIEW OF OPERATIONS (CONTINUED)
Mineral Resources Statement
Introduction
Mineral Resources can be defined as the concentration of material of economic interest in or on the
earth’s crust, whereas Ore Reserves are the parts of a Mineral Resource that can at present be
economically mined.
Mineral Resources and Ore Reserves are reported as tonnes and grade (quality) above a minimum
value (cut-off). We report estimates of our Mineral Resources and Ore Reserves on an annual basis,
but new discoveries of Mineral Resources can be estimated at any time.
Our estimates of Mineral Resources and Ore Reserves are undertaken by a team of highly skilled
technical personnel including geologists, mining engineers and metallurgist that qualify as Competent
Persons under the JORC Code.
The JORC Code is a framework for classifying Mineral Resource and Ore Reserve estimates. Mineral
Resources can be classified as Measured, Indicated and Inferred, according to the level of geological
knowledge and confidence. Ore Reserves can be classified as Proved or Probable on the basis of the
Mineral Resource classification and consideration of all JORC modifying factors.
The figures included in our Mineral Resources statement are estimates only and not precise
calculations, therefore appropriate rounding according to JORC guidelines has been applied.
The Mineral Resource tables in this report provide a detailed breakdown of the estimates, which have
been prepared according to the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’ (the JORC Code).
Annual Review
Tietto conducts an annual review of its Mineral Resources and Ore Reserves. This process is
managed by the Executive Director of Tietto. The governance arrangements and internal controls in
place with respect to its estimates of mineral resources and the estimation process include oversight
of the competent person by the Executive Director and review by the Board. No mining has
commenced and no additional mining studies have been completed.
Abujar Gold Project Mineral Resource Update – 30 June 2020
The 2020 Mineral Resources for Abujar Gold Project remain unchanged from the 2019 estimate. This
information was prepared and first disclosed under the 2012 JORC Code. There has not been any
material change since it was last reported.
Tietto announced an upgrade to the Mineral Resource Estimate for its Abujar Gold Project in central
Côte d’Ivoire in November 2019, with the estimate increasing by 24% to 45.5Mt @ 1.5 g/t Au for 2.15
million ounces of contained gold (Table 2).
Table 2: Statement of Mineral Resources by Deposit as at 11 November, 2019 Reported at 0.4
g/t Au cut off within pit shells; and 0.8 g/t Au cut off below the pit shells for AG, and 0.4 g/t to a
depth of 40m and 0.8 g/t below 40m for APG.
Area Class
AG
Indicated
Inferred
Total
APG Inferred
Grand Total
Oxide
Au
(g/t)
2
1.5
1.6
0.7
1
Quantity
(Mt)
0.08
0.44
0.53
1.24
1.77
Transition
Au
(MOz)
0.01
0.02
0.03
0.03
0.06
Quantity
(Mt)
0.3
1.21
1.51
3.43
4.95
Au
(g/t)
1.6
1.3
1.3
0.8
1
Au
(MOz)
0.02
0.05
0.06
0.09
0.15
Fresh
Au
(g/t)
1.8
1.5
1.7
1.1
1.6
Quantity
(Mt)
14.19
18.02
32.22
6.56
38.78
Total
Au
(MOz)
0.84
0.88
1.72
0.23
1.94
Quantity
(Mt)
14.58
19.68
34.26
11.24
45.49
Au
(g/t)
1.8
1.5
1.6
1
1.5
Au
(MOz
0.86
0.95
1.81
0.35
2.15
15
REVIEW OF OPERATIONS (CONTINUED)
Note:
1. The Mineral Resources has been compiled under the supervision of Mr. Jeremy Clark who is
a full-time employee of RPM and a Registered Member of the Australian Institute of Mining
and Metallurgy. Mr. Clark has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity that he has
undertaken to qualify as a Competent Person as defined in the JORC Code.
2. All Mineral Resources figures reported in the table above represent estimates at 12
November 2019. Mineral Resource estimates are not precise calculations, being dependent
on the interpretation of limited information on the location, shape and continuity of the
occurrence and on the available sampling results. The totals contained in the above table
have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause
some computational discrepancies.
3. Mineral Resources are reported in accordance with the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves
Committee Code – JORC 2012 Edition).
4. The Mineral Resources have been reported at a 100% equity stake and not factored for
ownership proportions.
This includes a shallow high-grade core of 1.4Moz at 2.2 g/t Au over a 1.4km zone at the Abujar-
Gludehi (AG) deposit. The upgrade also de-risked the AG deposit with the new drilling delivering
Indicated Resources of 0.86Moz at 1.8 g/t Au including 9.6Mt at 2.5g/t Au for 0.76Moz from surface at
AG.
Tietto’s updated AG Mineral Resource totals 34.3Mt at 1.6g/t Au for 1.81 Moz reported at 0.4 g/t Au
cut-off within pit shells; and 0.8 g/t Au cut-off below the pit shell. This increase came from 20,000m of
step-out and down dip extensional drilling at AG since the April 2019 resource upgrade.
The total resource at AG reported at varying cut-off grades is provided in Table 3 below and shows a
significant amount of higher-grade mineralisation within the overall resource. However, RPM
recommends that the Mineral Resource is reported using 0.4 g/t Au cut-off above the pit shell and 0.8
g/t Au cut-off below, as presented in Table 2.
Table 3: AG Indicated and Inferred Mineral Resource at varying cut off grades
Moz
MTonnes
1.09
1.07
1.02
0.96
0.89
0.83
0.78
0.74
0.70
0.67
0.64
0.60
0.58
0.55
0.50
0.48
0.46
0.37
0.29
44.0
40.9
36.5
31.4
26.8
23.3
20.4
18.3
16.3
14.7
13.3
12.1
11.1
10.0
8.6
7.9
7.4
5.2
3.8
Total
Au g/t
1.4
1.5
1.6
1.8
2.0
2.1
2.3
2.5
2.6
2.8
3.0
3.1
3.3
3.5
3.8
3.9
4.1
4.9
5.7
Moz
1.97
1.93
1.87
1.78
1.68
1.60
1.52
1.45
1.39
1.33
1.27
1.22
1.17
1.12
1.04
1.00
0.97
0.81
0.69
COG
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.8
1.9
2
2.5
3
MTonnes
16.1
15.1
13.7
12.3
10.9
9.7
8.7
7.8
7.1
6.4
5.9
5.3
4.9
4.5
3.9
3.6
3.3
2.4
1.9
Indicated
Au g/t
1.7
1.8
1.9
2.1
2.3
2.5
2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
4.4
4.6
4.8
5.7
6.5
Moz
MTonnes
0.88
0.87
0.85
0.82
0.79
0.76
0.74
0.71
0.69
0.66
0.64
0.62
0.60
0.58
0.54
0.52
0.51
0.45
0.40
27.9
25.8
22.8
19.1
15.9
13.6
11.7
10.4
9.3
8.3
7.5
6.8
6.2
5.5
4.7
4.4
4.1
2.7
1.9
Inferred
Au g/t
1.2
1.3
1.4
1.6
1.7
1.9
2.1
2.2
2.4
2.5
2.6
2.8
2.9
3.1
3.3
3.4
3.5
4.2
4.8
16
REVIEW OF OPERATIONS (CONTINUED)
Abujar Mining Licence application
Tietto Minerals, through its 90%‐owned subsidiary Tiebaya Gold Sarl, applied for a gold mineral
mining licence within the Abujar Middle Tenement; part of the Abujar Project. The mining tenement
application over 120.36km2 is shown in the Ivorian Mining Ministry’s cadastral map, see figure 10
below.
As of the end of the reporting year, the mining licence application has progressed well. Presentations
to government authorities (Figure 11) at various levels were delivered in June/July 2020.
Community gatherings for land ownership declarations were held in July 2020 (Figure 12).
Figure 10 - Plan view showing location of Abujar mining licence in application.
17
REVIEW OF OPERATIONS (CONTINUED)
Figure 11: Presentation to government authority in mining licence approval process
Figure 12: Community meetings during mining licence approval process
Metallurgical Testwork
Mintrex Pty Ltd in Perth is contracted to manage detailed metallurgical testing programs for the Abujar
feasibility study. Its work advanced grind size establishment, gravity recovery and cyanide leach
optimisation, building on preliminary work completed in 2016 which demonstrated exceptional gravity
gold recovery of over 80% and CIL gold recoveries above 98%.
Tietto reported detailed results from this program during the June quarter, which demonstrated highly
favourable characteristics for low‐cost processing including:
- Free milling ores ‐ very high gravity gold and CIL gold recoveries delivering up to 98‐99% overall
gold recoveries.
- High gold recovery at coarse grind sizes ranging from 96% (180 µm) to 98% (106 µm) for fresh
ore.
- Notable low energy and low reagent requirements
- Simple flowsheet ‐ single‐stage crusher with SAG mill circuit (SSAG) with gravity and CIL for gold
recovery.
- Testwork completed on representative samples from the Abujar‐Gludehi deposit (AG) which hosts
Abujar’s high‐grade core of 19.3Mt @ 2.2 g/t Au for 1.38Moz.
Tietto subsequently engaged Mintrex to manage metallurgy and plant design for the Abujar Feasibility
Studies.
18
REVIEW OF OPERATIONS (CONTINUED)
Metallurgical Samples
Samples were divided into nine composites on the basis of their ore type (oxide, transitional and fresh
ores) and their proximity. Table 4 identifies the nine composites.
Sample ID
Fresh 1
Fresh 2
Fresh 3
Table 4 - Sample identification
Metallurgical Drill Hole ID
ZDD028, ZDD080, ZDD082
ZDD028
ZDD043
Variability Fresh 1
ZDD029, ZDD035
Variability Fresh 2
ZDD081, ZDD090
Variability Fresh 3
ZDD038, ZDD085
Transitional
ZDD090
Variability Trans
ZDD075, ZDD084, ZDD088, ZDD091, ZDD093
Oxide
ZDD087, ZDD088, ZDD090, ZDD093
Physical Testwork
The physical properties of the Abujar ores allow Tietto to consider a lower cost, simple flowsheet
utilising single‐stage crushing with SAG mill circuit (SSAG) given the high gold recoveries obtained at
coarser grind sizes (>106 µm) and excellent physical testwork results (), demonstrating gold
mineralisation at AG is not abrasive and is of medium to moderate hardness:
- Bond Abrasion Index (Ai) – average results were 0.28 for fresh ore and 0.06 for transitional
ore
- Bond Rod Mill Work Index (RWi) – average results were 13.2 kWh/t for fresh ore and 8.5 kWh/t
for transitional ore
- Bond Ball Mill Work Index (BWi) – average results were 12.0 kWh/t for fresh ore and 9.0 kWh/t
for transitional ore.
Process
Material
AG Deposit3
- Table 5: Physical properties
Bond Abrasion Index (Ai)
Bond Rod Mill Work Index (RWi)
Bond Ball Mill Work Index (BWi)
A*b Index
*To be tested, too soft to evaluate at this stage
Oxide
Trans
Fresh
Oxide
Trans
Fresh
Oxide
Trans
Fresh
Oxide
Trans
Fresh
0.02
0.06
0.28
*
8.5
13.17
*
8.95
12.02
*
135
48.5
Other
Projects4
0.003 - 0.08
0.17 - 0.28
0.24 - 0.46
3.7 – 8.63
16.6 – 19.1
19.4 – 22.1
5.4 – 6.1
14.7 – 16.23
17.78 – 18.9
3 ASX release 9 April 2020
4 Various NI 43-101 FS 2015 – 2019 (CDV, PRU, WAF)
19
REVIEW OF OPERATIONS (CONTINUED)
Grind Size Testwork
Gravity amalgamation testwork established significant gravity gold in almost all composites (including
Fresh 1 and Variability Fresh 2, the two samples for the optimisation testwork). The samples were
quite “spotty”, having particles of free gold throughout; meaning the grade of the composites was
quite variable. This led to the addition of a gravity recovery step which was added before each leach
optimisation test.
The selected composites (Fresh 1 and Var Fresh 2) were ground to four particle sizes – 180 µm, 150
µm, 106 µm and 75 µm. Subsequently, samples were gravity separated, the concentrate measured
and the tails leached under standard cyanidation conditions. Results are shown in
. Overall recovery after 24 hours was broadly between 94‐99%.
Table 6: Grind size optimisation results
Sample ID
Fresh 1
Fresh 1
Fresh 1
Fresh 1
Var Fresh 2
Var Fresh 2
Var Fresh 2
Var Fresh 2
Grind Size
P80 (µm)
180
150
106
75
180
150
106
75
Gravity Recovery (%) Total Recovery after 24h (%)
82.2
88.3
80.7
82.4
56.2
61.7
72.5
54.2
96.0
97.7
97.5
98.8
94.2
94.3
97.0
98.0
The gravity concentrate was subjected to intensive leach testwork and the results show that for the
Fresh‐1 composite, about 86% of the gold was recovered to the gravity concentrate, of which >99%
was extracted in the intensive leach. About 78% of the gold in the VAR Fresh‐2 was recovered to the
gravity concentrate, with >99% extracted in the intensive leach.
Leach Optimisation Testwork
This stage of testwork focused on optimising the conditions for leaching the gold from the ore by
cyanidation including detailed gravity separation testwork. The effect of various conditions and
parameters on gold recovery during leaching were then examined using the selected samples.
Leaching optimisation tests on two fresh samples found that the leaching process was relatively
simple and robust:
- Optimum Grind size ‐ size between 106 µm and 150 µm.
- Use of air or oxygen sparging (ore is not an oxygen consumer).
- Oxygen uptake rate ‐consumption of oxygen by the reaction is minimal and thus the ore is a
very low oxygen consumer.
- Addition of lead nitrate was not necessary.
-
Inclusion of carbon in the leaching vessel has a minor positive effect on total gold recovery ‐
calculated head grade and assay grade matched well for these tests, which indicates that the
composites do not have any significant preg‐robbing characteristics.
- The optimised leaching process consumed of 0.2‐0.3 kg/t of cyanide. Lime consumption was
around 0.2 kg/t for the fresh domain, 0.6 kg/t for the transitional sample and 2.7 kg/t for the
oxide.
- The total gold recovery including gravity and leaching was between 95.5‐99%.
20
REVIEW OF OPERATIONS (CONTINUED)
Environment and social impact studies
Tietto appointed RPMGlobal to provide specialist ESG advice for the Abujar project, and Ivorian
environment specialist EnviTec to undertake an environmental and social impact study (ESIA) work in
April 2020.
The ESIA aims to identify the potential social and environmental impacts of developing Abujar and
outline any proposed mitigation measures. Once the ESIA is completed, expected to be late this year,
Tietto will submit it to the Ivoirian Environment Minister for review and approval as a necessary step
for the issuance of the mining license.
Field baseline survey studies were completed by the contractors and the Company is reviewing these
reports.
- General meeting to take place in July between government and local communities to promote
the Abujar Gold Project for mine development; and
- Public opinion poll on environmental study to be carried out in Q3 2020.
Figure 13: Environment baseline study and community meeting on social impact
COVID-19
Tietto was early to implement comprehensive and extensive hygiene and self‐isolation policies to
protect its workforce and mitigate any potential impact from COVID-19 in Côte d’Ivoire.
The Company began adopting quarantine protocols in early February and progressively strengthened
site safeguards. All steps in Tietto’s control were taken to ensure the wellbeing of its people at site
and mitigate the spread of COVID-19. There have been no cases of COVID-19 infection reported by
any of the Company's employees. Tietto imposed strict measures to restrict the movement of people
to site to prevent the spread of COVID-19.
Freight was exempt from government lockdown measures and regular shipments of supplies and fuel
were received at site. Tietto is however prepared for any interruption in freight movement, having
begun stockpiling supplies, fuel and drilling consumables during February in case of COVID-19
reaching Côte d’Ivoire.
The Company, through its subsidiary has been working closely with local communities in fighting the
COVID-19 pandemic and made a 5,000,000XOF (~A$12,300) donation to an Ivorian food bank in
June. The Company also donated general supplies such as rice, cooking oils and sanitizers to the
villages within the Abujar project area.
21
REVIEW OF OPERATIONS (CONTINUED)
Figure 14: Tietto supports Ivorian food bank and local communities
Safety
Tietto celebrated 500 LTI free days (lost time injury) in March 2020 since commencing diamond
drilling with company owned drill rigs. Tietto through its 90% owned subsidiary Tiebaya Gold Sarl held
a series of programs to celebrate this important milestone and half day safety training and then an
afternoon soccer game.
Rising Ivorian national flag in early morning
Safety training section in the morning
Practical safety training
Afternoon soccer game
Figure 15: Tietto celebrated 500 days lost time injury free
22
REVIEW OF OPERATIONS (CONTINUED)
Community Gathering
Tietto held its 5th Annual Community Gathering to celebrate the harmonious collaboration between
Tietto and local communities and landowners within the Abujar Project areas, attended by local
communities, government officials, senior police officers, representatives of the Ministry of Mines and
the Company staff. Each year for the past five years, Tietto has celebrated the smooth cooperation
with local communities and officials. During the celebration, representatives from each stakeholder
expressed their gratitude and appreciation to the other parties.
Figure 16: Tietto celebrated its 5th harmonious community collaboration on 10th March 2020
Reconstruction of 47km internal access roads
Tietto appointed an external construction company for a three-month reconstruction of 47km of
access roads within the Abujar Middle Tenement early in the year. The successful completion of the
road reconstruction assisted the smooth and consistent delivery of the DD drilling campaign over the
entire wet season with excellent road safety records.
Camp Expansion
Tietto completed expansion of the Abujar exploration camp capable of accommodating 50 people with
additional building units for office, kitchens and six sheds for workshops and core storage etc.
Figure 17: Abujar exploration camp capable of accommodation 50 people
23
REVIEW OF OPERATIONS (CONTINUED)
CORPORATE
Appointment of Executive Director
In December 2019 Tietto announced the appointment of Mark Strizek as its Executive Director,
effective 1 January 2020.
Mr Strizek was a Non-Executive Director of Tietto since July 2017 and instrumental in assisting with
the technical development and marketing of the 2.2Moz Abujar Gold Project. He has more than 25
years’ experience in gold exploration, resource development and operations of open pit and
underground projects.
In his role as Executive Director, Mr Strizek is driving the growth of the Company’s gold resources
across its projects including the high-grade Abujar Gold Project.
Capital Raising
In November 2019, Tietto announced it had received binding commitments for a placement to raise
A$17.0 million (before costs) through the placement of approximately 65.4 million fully paid ordinary
shares at A$0.26 per share (November Placement).
The Company issued 65,280,719 fully paid ordinary shares at an issue price of A$0.26 to institutional
and sophisticated investors in Australia and overseas, raising approximately A$17.0 million before
costs.
Settlement of the November Placement occurred in two tranches, with Tranche 1 of 29,000,000
shares issued on 26 November and Tranche 2 following Shareholder approval on 9 January 2020.
In addition, two Tietto Directors sought shareholder approval to participate in the November
Placement; Non-executive Director Mr Hanjing Xu subscribed for approximately $200,000 and Non-
executive Director Mr Mark Strizek subscribed for $30,000 in the November Placement.
The November Placement broadened the share register through the introduction of new international
and Australian institutional investors and received strong support from existing shareholders.
Post year-end, in August 2020, the Company issued 91 million shares pursuant to a Share Placement
and Share Purchase Plan at an issue price of $0.62 per share raising approximately $56.6 million
total gross proceeds.
Hartleys Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Managers to the
Placement and Underwriters to the underwritten $45.0 million component of the Placement. The
Placement was strongly subscribed by both domestic and international existing and new institutional
investors.
Proceeds of the Placement will be used to continue delivering growth in resources through resource
and exploration drilling at Abujar, fully fund both the Pre‐Feasibility Study and Definitive Feasibility
Study for Abujar, provide capital for long lead time items associated with the proposed mine
development, and for working capital.
On 10 September 2020, the shareholders approved the issue of 500,000 Class D Performance Rights
to Mark Strizek.
24
REVIEW OF OPERATIONS (CONTINUED)
Release of Escrowed Securities
The following securities were released from escrow on 18 January 2020:
-
-
-
-
94,017,497 fully paid ordinary shares;
11,500,000 options exercisable at 20¢ expiring 31 December 2021;
25,808,480 options exercisable at 25¢ expiring 31 December 2021; and
14,625,000 performance rights expiring 18 January 2022.
Appendix A – Schedule of Tenements as at 30 June 2020
Tenement ID
Status
Interest at
beginning of
Year
Interest acquired
or disposed
Interest at end of
Year
Côte d’Ivoire
Abujar North1
(Zahibo License)
Abujar Middle2
(Zoukougbeu License)
Abujar South
(Issia License)
Bongouanou North
Bongouanou South
Granted
Granted
Granted
Granted
Granted
15%
90%
100%
50%
50%
0%
0%
0%
0%
0%
Two Boundiali tenements
In application
1.
2.
Tietto has the right to acquire up to a 80% interest in the Abujar North Exploration License.
Tietto has 90% share capital of Tiebaya Gold which holds 100% interest of the Abujar Middle Exploration License
Liberia
Dude South
Cestos Project
Granted
Granted
100%
100%
0%
0%
15%
90%
100%
50%
50%
100%
100%
Competent Persons’ Statements
The information in this report that relates to Exploration Results is based on information compiled by Mr Mark
Strizek, a Competent Person who is a Member or The Australasian Institute of Mining and Metallurgy. Mr Strizek
is an executive director of the Company. Mr Strizek has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaking to qualify as a
Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves”. Mr Strizek consents to the inclusion in the announcement of the matters
based on his information in the form and context in which it appears. Additionally, Mr Strizek confirms that the
entity is not aware of any new information or data that materially affects the information contained in the ASX
releases referred to in this report.
The information in this report that relates to Mineral Resources is based on information evaluated by Mr Jeremy
Clark who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Clark is an employee of RPMGlobal
Asia Limited and he consents to the inclusion of the estimates in the report of the Mineral Resource in the form
and context in which they appear. Additionally, Mr Clark confirms that the entity is not aware of any new
information or data that materially affects the information contained in the ASX releases referred to in this report.
Compliance Statement
This report contains information extracted from ASX market announcements reported in accordance with the
2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves" ("2012 JORC Code") and available for viewing at www. tietto.com. Includes results reported previously
and published on ASX platform, 16 January 2018, 27 March 2018, 23 April 2018, 8 May 2018, 7 June 2018, 4
October 2018, 1 November 2018, 28 November 2018, 31 January 2019, 26 February 2019, 12 March 2019, 9
April 2019, 9 May, 2019, 30 May 2019, 9 July 2019, 26 July 2019, 20 August 2019 and 27 August 2019. The
Company confirms that it is not aware of any new information or data that materially affects the information
included in the previous announcements.
25
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020
The directors of Tietto Minerals Limited herewith submit the annual financial report of the Company consisting of Tietto
Minerals Limited ("Tietto or the Company") and its controlled entities ("the Group") for the financial year ended 30 June
2020. In order to comply with the provisions of the Corporations Act 2001 , the Directors' Report as follows:
DIRECTORS
The names of the directors of the Company who have held office during and since the end of the financial year and until
the date of this report are noted below. Directors were in office during and since the end of the financial year unless
otherwise noted.
Francis Harper (appointed 19 July 2017)
Caigen Wang (appointed on 5 May 2010)
Mark Strizek (appointed 19 July 2017)
Hanjing Xu (appointed 4 August 2017)
Paul Kitto (appointed 22 January 2019)
Non-Executive Chairman
Managing Director
Executive Director
Non-Executive Director
Non-Executive Director
INFORMATION ABOUT DIRECTORS AND COMPANY SECRETARY
Francis Harper, Non-Executive Chairman (appointed on 19 July 2017)
Mr Harper is the chairman of Tietto. He has been a director of Blackwood Capital since 2002 and prior to that spent 15
years with NM Rothschild in the US, UK and Australia in M&A and resources finance. Blackwood Capital has raised over
$1 billion for small caps since inception. Mr Harper (through Blackwood Capital) financed West African Resources (ASX:
WAF) and was chairman from 2009 to 2015. Mr Harper is currently a non-executive Chairman of Vital Metals Limited.
Caigen Wang, Managing Director (appointed on 5 May 2010)
Dr Wang founded Tietto in 2010 following a long career as a mining engineer and mine manager in Australia and China,
and, early in his career, 2 years at University of Alberta, Canada, 5 years at the Western Australian School of Mines in
Kalgoorlie and 7 years before that at China University of Mining and Technology. Dr Wang is a fellow of AusIMM.
From 2009 to 2011 Dr Wang was CEO of ASX listed Ishine Resources, which had multiple Australian exploration projects,
and from 2008 to 2009 Dr Wang was Mine Manager/General Manager of Hunan Westralian, managing five small
producing and three development gold mines in China. From 2007 to 2008 Dr Wang was Senior Mine Planning Engineer
at St Barbara’s Southern Cross Operations. From 2004 to 2007 Dr Wang was Senior Geomechanics Engineer for BHP at
its Leinster Nickel Operations (Nickel West). From 2003 to 2004 Dr Wang was Senior Geotechnical Engineer at Sons of
Gwalia’s Southern Cross Operations.
Dr Wang has been responsible for all of Tietto’s project acquisition, daily operations of the Company’s business and
project development.
Mark Strizek, Non-Executive Director (appointed on 19 July 2017), Executive Director (appointed 1 January 2020)
Mr Strizek is a resource industry professional with over 20 years in the industry with experience in gold, base and
technology metal projects. Mr Strizek has worked as an executive with management and Board responsibilities in
exploration, feasibility, finance and development ready assets across Australia, West Africa, Asia and Europe. Mr Strizek
was Managing Director of Vital Metals Limited, an ASX listed company from 2011 to 2019.
Hanjing Xu, Non-Executive Director (appointed on 4 August 2017)
Mr Xu has enjoyed a successful career in the natural resources industry over the last 25 years.
The unique characteristic of his career is that he has been a top decision making executive in both Chinese state-owned
conglomerates and internationally listed mining companies. Examples include his roles as President of the Australian
Branch of China National Nonferrous Metals and Export Corporation (CNIEC), President of CNIEC, Director of Foreign
Affairs Bureau, China National Nonferrous Metals Industry Corporation (CNNC), Executive Director of Sino Gold Mining
Ltd and Managing Director of Eldorado Gold China. His knowledge of China was instrumental to the success of Sino
Gold.
26
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
INFORMATION ABOUT DIRECTORS AND COMPANY SECRETARY (CONTINUED)
Hanjing Xu, Non-Executive Director (appointed on 4 August 2017) (Continued)
Mr Xu has a university graduation certificate in English from Chengdu University of Electronic Science and Technology.
Prior to joining CNNC Hanjing worked as a teacher of English and editor of China Greater Encyclopedia Publishing
House.
Mr Xu led China and CNNC in its launch into the international resource industry with a number of first breakthroughs in
Chinese mining industry, including first trade investment in alumina of Alcoa, first international project finance for mining in
China and first international company mining in China. He was a keynote speaker at the opening session of Prospectors
and Developers Association of Canada 2010 in Canada. He is now actively involved in research on Chinese mining
reform and regarded as a leading authority in this area.
In November 2012, Mr Xu successfully published a book in Chinese, "Mining And The World". The book sets a growth
theory of mining which in turn illustrates the growth history of world economies, politics and cultures. He is now a visiting
professor of China Mining and Geology University and a Fellow Member of Specialist Committee of China Nonferrous
Metals Association.
Paul Kitto, Non-Executive Director (appointed on 22 January 2019)
Dr Kitto has more than thirty years experience within the mining industry serving on a number of Board of Directors and
holding senior management positions in various countries around the world predominantly in Australasia and Africa.
Dr Kitto has been Exploration Manager, West Africa for Newcrest Mining Ltd since 2015, and prior to that was CEO of
Ampella Mining Ltd from 2008 until 2014 when Ampella was acquired by Centamin PLC. Dr Kitto led Ampella in
discovering and growing the 3.25 million oz Konkera resource at the Batie West Project in Burkina Faso.
Dr Kitto has also led or been part of the exploration teams whose research resulted in the discovery of numerous multi-
millions of ounces of gold in Africa, Australia and Papua New Guinea. Dr Kitto has extensive experience associated with a
wide range of deposit types predominantly associated with gold and base metal deposits.
Matthew Foy, Company Secretary
Mr Foy is an experienced company secretary and active member of the WA State Governance Council of the Governance
Institute Australia (GIA). He spent four years at the ASX facilitating the listing and compliance of companies and
possesses core competencies in publicly listed company secretarial, operational and governance disciplines.
PRINCIPAL ACTIVITIES
The principal activities of the Group are gold explorations in West Africa, specifically in Côte d'Ivoire and Liberia.
REVIEW OF OPERATIONS
A review of the Group’s exploration projects and activities during the year is discussed in the Operations Review included
in this Annual Report.
The loss of the Group after income tax for the year was $12,508,320 (2019: $9,879,759).
DIVIDENDS
No dividends were paid or declared since the start of the financial year. No recommendation for the payment of dividends
has been made.
27
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
DIRECTORS' SHAREHOLDINGS
The following table sets out each director’s relevant interest in shares, debentures, and rights or options in shares or
debentures of the Company or a related body corporate as at the date of this report.
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Notes
Ordinary
Shares
Number
Share
options
Number
Performance rights
Class
Number
1, 6
10,893,030
6,625,000
812,500
Tranche C
2, 3, 6
15,790,017
9,885,260
3,250,000
Tranche C
4, 6
6
4, 6
5, 6
1,659,135
1,625,000
487,500
500,000
Tranche C
Class D
3,166,058
1,625,000
487,500
Tranche C
2,000,000
2,000,000
2,500,000
Tranche C
Notes:
1.
Share options comprise 4,125,000 options exercisable at $0.20 on or before 31 December 2021 and 2,500,000
options exercisable at $0.1725 on or before 28 August 2022.
2. Caigen Wang's relevant interest in ordinary shares is held directly and indirectly through the following parties:
a. 5,898,480 held directly by Caigen Wang;
b. 5,381,820 held by Mrs Jian Zhao (spouse); and
c. 4,509,717 held indirectly through Multiple Resources Pty Ltd, an entity controlled by Dr. Wang.
3.
4.
5.
6.
9,885,260 options exercisable at $0.25 on expiring 31 December 2021.
1,625,000 options exercisable at $0.20 expiring 31 December 2021.
Share options comprise 1,000,000 options exercisable at $0.25 on or before 21 January 2022 and 1,000,000 options
exercisable at $0.30 on or before 22 January 2023.
Tranche C Performance Rights vest upon achieving in respect of the Projects, an aggregate of at least 3.0M oz with
cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell.
250,000 of Class D Performance Rights vest upon achieving an aggregate of at least 3.0M oz with cut-off grade of at
least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell and another 250,000 Class D Performance Rights will
vest upon achieving a positive pre-feasibility study on the Abujar Gold Project.
REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL
Information about the remuneration of directors and key management personnel is set out in the Remuneration Report of
this Directors’ Report.
SHARE OPTIONS GRANTED TO DIRECTORS AND KEY MANAGEMENT PERSONNEL
There were no share options or performance rights issued to any Key Management Personnel of the Group as part of
their remuneration since the end of the financial year.
28
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
CHANGES IN STATE OF AFFAIRS
On 4 June 2019, the Group entered into a new subscription agreement ("new agreement") with Hongkong Ausino
Investment Limited ("Ausino"). Under the new agreement, Ausino agreed to pay the Group's expenses for a total of up to
AUD 2,000,000, within 18 months of 4 June 2019. For each of Ausino's payments, the amount paid will be converted into
fully paid ordinary shares in the Company, based on a deemed subscription price of AUD 0.15 per share.
During the financial year 30 June 2020, Ausino paid AUD 784,086 in settlement of debt on behalf of the Group. The debt
was converted into 5,227,240 ordinary shares at $0.15 per share and 5,000,000 options exercisable at $0.20 on or before
16 January 2023 on 17 January 2020.
In August/September 2019, the Company successfully completed Tranche 2 of the share placement which started in April
2019. Tranche 2 comprised the issue of 4,133,335 shares at an issue price of $0.15 per share raising $620,000 before
costs.
During the year, the Company further raised $17 million before costs through the placement of 65,280,719 fully paid
ordinary shares at A$0.26 per share to accelerate the Group’s drill-out of the rapidly expanding Abujar Gold Project.
There were no other significant changes in the state of affairs of the Group during the year.
EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to year end, the Company issued 91 million shares pursuant to a Share Placement and Share Purchase Plan
at an issue price of $0.62 per share raising approximately $56.6 million total gross proceeds.
On 10 September 2020, the shareholders approved the issue of 500,000 Class D Performance Rights to Mark Strizek.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while there has been no negative impact for the
Group up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting
date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
There has not been any other matter or circumstance occurring subsequent to the end of the financial year that has
significantly affected, or may significantly affect the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Disclosure of information regarding the likely developments in the operations of the Group in future financial years and the
expected results of
this
information has not been disclosed in this report.
in unreasonable prejudice to the Group. Accordingly,
those operations is likely to result
SAFETY AND ENVIRONMENTAL REGULATIONS
The Group is aware of its occupational health and safety and environmental obligations with regard to its exploration
activities and ensures that it complies with all regulations including compliance with the National Greenhouse and Energy
Reporting (NGER) Act 2007 when carrying out exploration work.
PROCEEDINGS ON BEHALF OF THE GROUP
No persons have applied for leave pursuant to section 237 of the Corporation Act 2001 to bring, or intervene in,
proceedings on behalf of the Group.
29
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
SHARE OPTIONS
Share options outstanding at the date of this report:
Type
Number
Grant date
Expiry date
Exercise
$
Fair value at
grant date $
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
5,125,000
5,000,000
39,530,203
7,000,000
1,000,000
1,000,000
1,000,000
2,500,000
11,500,000
5,000,000
78,655,203
31/10/2017
29/12/2017
29/12/2017
27/07/2018
18/10/2018
13/08/2019
13/08/2019
13/08/2019
28/08/2019
4/6/2019
31/12/2021
31/12/2021
31/12/2021
22/01/2023
22/01/2022
22/01/2022
22/01/2023
28/08/2022
28/08/2022
16/1/2023
0.20
0.20
0.25
0.30
0.25
0.25
0.30
0.1725
0.1725
0.20
0.112
0.113
Nil (free-attaching)
0.058
0.034
0.147
0.161
0.174
0.148
Nil (free-attaching)
The holders of such options do not have the right, by virtue of the option, to participate in any share or other interest issue
of any other body corporate or registered scheme.
Shares issued on the exercise of options
During the year, 262,000 ordinary shares were issued on the exercise of 262,000 options at $0.25 per share.
Share options that expired/lapsed
1,000,000 share options exercisable at $0.30 expiring 22 January 2023 were cancelled following the cessation of an
employee's employment. No other share options expired or lapsed during or since the end of the financial year.
PERFORMANCE RIGHTS
Performance rights outstanding at the date of this report:
Class
Number
Grant date
Expiry date
Exercise
$
Fair value at
grant date $
Tranche C
Tranche C
Class D
5,037,500
2,500,000
500,000
8,037,500
31/10/2017
13/08/2019
10/9/2020
18/01/2022
18/01/2022
21/9/2024
Nil
Nil
Nil
0.15
0.24
0.5650
The holders of the performance rights do not hold any voting rights or rights to participate in dividends unless the rights
have vested and were converted to fully paid ordinary shares.
Shares issued on vesting of performance rights
15,837,500 shares were issued during the year upon the vesting of performance rights. Refer to Note 14 of the Notes to
the Consolidated Financial Statements for further details on the shares issued.
Performance rights that expired/lapsed
1,500,000 Class C Performance Rights were cancelled following the cessation of an employee's employment. No other
performance rights expired or lapsed during or since the end of the financial year.
30
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
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).
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Directors' Meetings
Eligible to
attend
Attended
8
8
8
8
8
8
8
8
6
6
INDEMNIFICATION OF DIRECTORS AND AUDITORS
During or since the end of the financial year the Company has given an indemnity or entered into an agreement to
indemnify, or paid or agreed to pay insurance premiums as follows:
-
except as may be prohibited by the Corporations Act 2001 a Director or Officer of the Company shall be indemnified
out of the property of the Company against any liability incurred by him in his capacity as Director or officer of the
Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in
defending any proceedings, whether civil or criminal.
Since the beginning of the financial year the Company has paid insurance premiums of $20,151 (2019: $19,370) in
respect of directors and officers liability and corporate reimbursement, for directors and officers in the Company. The
insurance premiums relate to:
-
costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and
whatever the outcome; and
other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of duty.
-
NON-AUDIT SERVICES
During the years ended 30 June 2020 and 30 June 2019 there were no non-audit services provided by the Company’s
external auditor BDO Audit (WA) Pty Ltd.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, BDO Audit (WA) Pty Ltd, 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 38 and forms part of this Directors’ Report for the year ended 30 June 2020.
31
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED)
This report, which forms part of the Directors’ Report, outlines the remuneration arrangements in place for the key
management personnel of Tietto Minerals Limited (the “Company”) for the financial year ended 30 June 2020.
The information provided in this remuneration report has been audited as required by Section 308(3C) of
Corporations Act 2001 .
the
The Remuneration Report details the remuneration arrangements for key management personnel (“KMP”) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities of
the Company and the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent
Company.
The prescribed details for each person covered by this report are detailed below under the following headings:
-
-
-
-
-
-
-
key management personnel details;
remuneration policy and relationship between the remuneration policy and Company performance;
key terms of employment contracts;
remuneration of key management personnel;
key management personnel equity holdings;
transactions with related parties; and
loans with related parties.
Key management personnel details
The key management personnel of Tietto Minerals Limited during the year or since the end of the year were:
Francis Harper (appointed 19 July 2017)
Caigen Wang (appointed on 5 May 2010)
Mark Strizek (appointed 19 July 2017)
Hanjing Xu (appointed 4 August 2017)
Paul Kitto (appointed 22 January 2019)
Non-Executive Chairman
Managing Director
Executive Director
Non-Executive Director
Non-Executive Director
Remuneration policy and relationship between the remuneration policy and Company performance
The Board policy for determining remuneration is based on the principle of remunerating directors and senior executives
on their ability to add value to the Company (taking into account the Company’s strategic plan and operations) whilst also
considering market remuneration packages for similar positions within the industry. No external consultants were engaged
during the current or prior financial years to review the Company's existing remuneration policies.
The Board appreciates the interrelationship between this policy and Company performance. It acknowledges that it is in
the best interests of shareholders to provide challenging but achievable incentives to reward senior executives for
reaching the Company’s stated goals. The Board will discuss these issues internally and with candidates prior to engaging
additional directors or senior executives in the future.
The Remuneration Committee is responsible for determining the remuneration policies for the Group, including those
affecting executive directors and other key management personnel. The Committee may seek appropriate external
advice to assist in its decision making. Remuneration policies and practices are directed primarily at attracting, motivating
and retaining key management personnel.
The remuneration policy for directors and other key management personnel has the following key elements:
Fixed remuneration
Fixed remuneration includes base salaries received, payments made to superannuation funds, the taxable value of non-
monetary benefits received and any once-off payments such bonuses or termination benefits, see 'Remuneration of key
management personnel' table for details.
32
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Remuneration policy and relationship between the remuneration policy and Company performance (continued)
Short-term incentives
There were no bonuses which were awarded to key management personnel in relation to FY 2019 which were paid in FY
2020.
A Non-Executive Directors' fee pool limit is $250,000 per annum.
Long-term incentives
The value of options granted and vested during the current and previous financial years was determined using the Black-
Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the
share price at valuation date and expected price volatility of the underlying share, the expected dividend yield and the risk-
free interest rate for the term of the option. 6,500,000 options were granted on 31 October 2017 and 2,000,000 options
were granted on 22 January 2019 to the directors.
The value of performance rights was determined using the spot share price at grant date of respective performance rights
and taking into account the terms and conditions upon which the instruments were granted. 17,875,000 performance
rights were granted on 31 October 2017 and 4,500,000 performance rights were granted on 13 August 2019.
Statutory performance indicators
We aim to align our executive remuneration to our strategic and business objectives and the creation of shareholder
wealth. The table below shows measures of the Group’s financial performance over the last five years as required by the
Corporations Act 2001 . However, these are not necessarily consistent with the measures used in determining the variable
amounts of remuneration to be awarded to key management personnel. As a consequence, there may not always be a
direct correlation between the statutory key performance measures and the variable remuneration awarded.
Statutory performance indicators of the Group over the last five years
Loss for the year attributable to
owners of Tietto Minerals Limited ($)
Loss per share (cents)
Share price at beginning of year ($)
Share price at listing ($)
Share price at end of year ($)
2020
2019
2018
2017
2016
(12,495,098)
(4.02)
0.17
N/A
0.49
(9,899,430)
(4.32)
0.12
N/A
0.17
(5,529,451)
(3.28)
N/A
0.20
0.12
(1,095,008)
(0.89)
N/A
N/A
N/A
(2,087,396)
(2.75)
N/A
N/A
N/A
Key terms of executive employment contract
Remuneration and other terms of employment
consultancy agreement with Multiple Resources Pty Ltd. Major provisions of this agreement are set out below:
-
for the Managing Director, Dr Caigen Wang are formalised in a
Effective from the date the Company successfully lists on the ASX (18 January 2018) until the agreement is validly
terminated by either party in accordance with the terms of the Consultancy Agreement.
Monthly consultancy fee of $23,125 (excluding GST) for the provision of at least 230 days per year. The fee was
increased to $33,333 (excluding GST) from 1 June 2020. Multiple Resources Pty Ltd and Dr Wang are not entitled
payment by the Company of salary, holiday pay, sick pay, severance pay, long service leave or any other entitlement
which an employee has in respect of his employment.
At the Company’s discretion and subject to obtaining applicable regulatory approvals, Multiple Resources Pty Ltd is
entitled to a performance-based bonus over and above the consultancy fee. Multiple Resources Pty Ltd is also
entitled to reimbursement of reasonable expenses and expenditure.
The Company may also terminate the Consultancy Agreement by giving 6 months’ written notice. Multiple
Resources Pty Ltd may also terminate the Consultancy Agreement without cause.
-
-
-
33
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Key terms of executive employment contract (continued)
Remuneration and other terms of employment for the Executive Director, Mr. Mark Strizek are set out below:
- Base salary of $251,141.55 per year effective from 1 January 2020.
-
Mr Strizek is entitled to payment by the Company of salary, holiday pay, sick pay, severance pay, long service leave
or any other entitlement which an employee has in respect of his employment.
The Company shall continue to employ the Mr. Strizek as an Executive Director for an intial term of 24 months to 31
December 2021.
The Agreement may be terminated by the employee by giving the Company 6 weeks written notice. The Company
may also terminate at any time by giving the employee one month's written notice and 3 months' salary.
-
-
Remuneration of key management personnel
Fixed Remuneration
Salary and
fees
$
Super-
annuation
$
Home office
and private car
usage
$
Variable
Remuneration
Share-based
payments1
$
Total
$
Performance
related
$
%
Performance
related
Directors
2020
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
80,000
287,708
149,571
54,000
79,500
650,779
8,800
-
16,453
5,940
-
31,193
-
8,400
-
-
-
8,400
130,750
489,024
79,016
79,016
672,633
1,450,439
219,550
785,132
245,040
138,956
752,133
2,140,811
130,750
489,024
79,016
79,016
672,633
1,450,439
60%
62%
32%
57%
89%
1
relates to 8,125,000 Tranche B and Tranche C Performance Rights issued on 31 October 2017 to Messrs Harper,
Wang, Strizek and Xu, and 4,000,000 Tranche B and Tranche C Performance Rights issued to Dr Kitto on 28 August
2019 (granted on 22 January 2019) under the Company's Long Term Incentive Plan.
Fixed Remuneration
Salary and
fees
$
Super-
annuation
$
Others
$
Variable
Remuneration
Share-based
payments2
$
Total
$
Performance
related
$
%
Performance
related
60,000
277,500
48,000
48,000
45,000
478,500
6,600
-
5,280
5,280
-
17,160
-
-
-
-
-
-
318,598
1,162,122
168,655
168,655
603,217
2,421,247
385,198
1,439,622
221,935
221,935
648,217
2,916,907
318,598
1,162,122
168,655
168,655
603,217
2,421,247
83%
81%
76%
76%
93%
Directors
2019
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto1
1
2
appointed on 22 January 2019
relates to 17,875,000 performance rights issued on 31 October 2017 to Messrs Harper, Wang, Strizek and Xu, and
4,500,000 performance rights issued to Dr Kitto on 28 August 2019 (granted on 22 January 2019) under the
Company's Long Term Incentive Plan.
34
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Remuneration of key management personnel (Continued)
Terms and conditions of share-based payment arrangements - Performance Rights ("PR")
The terms and conditions for each grant of performance rights affecting remuneration in the current or a future reporting
period are as follows:
Number
Grant date
Expiry date
Exercise price
8,125,000
4,000,000
31 Oct 2017 with
various vesting
conditions as below
13 Aug 2019 with
various vesting
conditions as below
18/01/2022
18/01/2022
-
-
Value per
PR at
grant date
Total value
at grant
date
%
vested
$0.15
$1,218,750
38.00%
$0.24
$960,000
37.50%
On 31 October 2017, the Company approved the issue of 8,125,000 Tranche B and Tranche C Performance Rights to
directors under the Company's Long Term Incentive Plan. Each performance right issued under the plan converts into
one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the
performance right. Performance rights neither carry rights to dividends nor voting rights.
The 8,125,000 performance rights are subject to the following vesting conditions:
-
3,087,500 Tranche B Performance Rights, upon achieving in respect of the Projects, an aggregate of at least 2.0M
oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell;
5,037,500 Tranche C Performance Rights, upon achieving in respect of the Projects, an aggregate of at least 3.0M
oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell.
-
On 13 August 2019, the Company's shareholders approved the issue of 4,000,000 Tranche B and Trance C performance
rights to Dr Paul Kitto under the Company's Long Term Incentive Plan. Each performance right issued under the plan
converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt
of the performance right. Performance rights neither carry rights to dividends nor voting rights.
The 4,000,000 Tranche B and Tranche C Performance Rights are subject to the following vesting conditions:
-
1,500,000 Tranche B Performance Rights, upon achieving in respect of the Projects, an aggregate of at least 2.0M
oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell;
2,500,000 Tranche C Performance Rights, upon achieving in respect of the Projects, an aggregate of at least 3.0M
oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell.
-
The milestone for Tranche B was achieved during the year and hence the value attributable to Tranche B performance
rights which vested has been expensed during the year and included the Directors' share-based payment received during
the year ended 30 June 2020 (as disclosed in the "Remuneration of key management personnel" table).
In addition, as at reporting date, the achievement for Tranche C has been assessed as probable, hence a value has been
attributed to the performance rights related to Tranche C. The probability is assessed again at each reporting date. The
performance rights lapse if the directors leave the Company (subject to good leaver/bad leaver provisions).
The vesting date for Dr Kitto's performance rights has been calculated by reference to his appointment as director of the
Company on 22 January 2019 as the starting point and hence the value of Tranche A and Tranche B performance rights
has been included in Dr Kitto's share-based payment received during the year ended 30 June 2019 (as disclosed in the
"Remuneration of key management personnel" table).
Voting and comments made at the Company's 2019 Annual General Meeting
At
shareholders.
the 2019 Annual General Meeting the Company remuneration report was passed by the requisite majority of
35
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Remuneration of key management personnel (Continued)
Key management personnel equity holdings
Fully paid ordinary shares of Tietto Minerals Limited
Directors
2020
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Balance at
1 July 2019
No.
Exercised of
Performance
Rights1
No.
Granted on
compensation
No.
Purchased
during the year 2
No.
Balance on
resignation
No.
Balance at 30
June 2020
No.
7,182,546
11,040,377
325,000
-
-
18,547,923
2,275,000
8,125,000
1,218,750
1,218,750
2,000,000
14,837,500
-
-
-
-
-
-
1,000,000
-
115,385
769,888
-
1,885,273
-
-
-
-
-
-
10,457,546
19,165,377
1,659,135
1,988,638
2,000,000
35,270,696
1
2
Conversion of Tranche A and Tranche B Performance Rights into fully paid ordinary shares which vested and
exercised during the year.
Participation in Placement during the year.
Options of Tietto Minerals Limited
Directors
2020
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Balance at
1 July 2019
No.
Granted on
compensation1
No.
Exercised
No.
Net other
change
No.
Balance at 30
June 2020
No.
Vested and
exercisable at
30 June 2020
No.
4,125,000
11,510,260
1,625,000
1,625,000
2,000,000
20,885,260
2,500,000
-
-
-
-
2,500,000
-
-
-
-
-
-
-
-
-
-
-
-
6,625,000
11,510,260
1,625,000
1,625,000
2,000,000
23,385,260
6,625,000
11,510,260
1,625,000
1,625,000
2,000,000
23,385,260
1
On 28 August 2019, the Company issued 2,500,000 unlisted options to Francis Harper valued at $435,241 as
capital raising fee. The options which vest immediately, expire on 28 August 2022 and have an exercise price of
17c.
36
DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Key management personnel equity holdings (Continued)
Performance rights of Tietto Minerals Limited
Directors
2020
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Balance at
1 July 2019
No.
Granted on
compensation
No.
Exercised1
No.
Net other
change
No.
Balance at 30
June 2020
No.
Vested and
exercisable at
30 June 2020
No.
3,087,500
11,375,000
1,706,250
1,706,250
4,500,000
22,375,000
-
-
-
-
-
-
(2,275,000)
(8,125,000)
(1,218,750)
(1,218,750)
(2,000,000)
(14,837,500)
-
-
-
-
-
-
812,500
3,250,000
487,500
487,500
2,500,000
7,537,500
-
-
-
-
-
-
1
Conversion of Tranche A and Tranche B Performance Rights into fully paid ordinary shares which vested and
exercised during the year.
Transactions with related parties
During the year ended 30 June 2020, Blackwood Capital, a company associated with the Company's chairman, Mr
Francis Harper received cash payment of $235,840 (inclusive of GST) for capital raising fees.
On 28 August 2019, the Company issued 2,500,000 unlisted options to the Company's chairman, Francis Harper valued
at $435,241 as capital raising fee. The options expire on 28 August 2022 and have an exercise price of $0.1725.
During the year ended 30 June 2020, Hopeview Investments Pty Ltd, a company associated with Mr Francis Harper
received cash payment of $31,000 (inclusive of GST) for capital raising fees.
All related party transactions are on arm's length terms. There were no other transactions with related parties during the
2019 and 2020 financial years.
Loans with related parties
There were no other loans with related parties during the 2019 and 2020 financial years.
(END OF AUDITED REMUNERATION REPORT)
The Directors’ Report is signed in accordance with a resolution of directors made pursuant to section 298(2) of the
Corporations Act 2001 .
On behalf of the Directors
Caigen Wang
Director
Dated at Perth this 29th day of September 2020
37
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF TIETTO MINERALS
LIMITED
As lead auditor of Tietto Minerals Limited for the year ended 30 June 2020, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Tietto Minerals Limited and the entities it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth, 29 September 2020
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Interest income
Other income
Exploration expenses
Depreciation
Amortisation
Directors' remuneration
Salaries and wages
Rental expenses
Travel, meals and accomodations
Business registration and compliance fees
Share-based payments
Professional and consultants fees
Net foreign exchange losses
Loss on settlement of liability
Interest expense
Other expenses
Loss before income tax
Income tax benefit
Notes
2020
$
2019
$
4
5
9
11
18
16(e)
14(h)
11
91,702
103,788
57,861
10,268
(7,848,010)
(131,861)
(24,181)
(690,372)
(648,324)
(20,205)
(173,162)
(141,787)
(1,565,969)
(523,275)
(115,821)
(189,621)
(6,693)
(624,529)
(5,452,200)
(11,692)
-
(495,660)
(406,533)
(35,028)
(100,482)
(93,402)
(2,893,833)
(202,004)
(8,820)
-
-
(248,234)
(12,508,320)
(9,879,759)
6
-
-
Loss after income tax for the year
(12,508,320)
(9,879,759)
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss:
Revaluation gain/(loss) of financial assets at fair value through
other comprehensive income/(loss)
Foreign currency translation reserve
Income tax relating to comprehensive income/(loss)
Total other comprehensive income/(loss)
13,000
555,218
-
568,218
(169,000)
(203,002)
-
(372,002)
Total comprehensive loss for the year
(11,940,102)
(10,251,761)
Loss for the year is attributable to:
Owners of the parent
Non-controlling interest
Total comprehensive loss for the year is attributable to:
Owners of the parent
Non-controlling interest
Loss per share for the year attributable to the
owners of Tietto Minerals Limited:
Basic loss per share (cents per share)
(12,495,098)
(13,222)
(12,508,320)
(9,899,430)
19,671
(9,879,759)
(11,927,744)
(12,358)
(11,940,102)
(10,271,826)
20,065
(10,251,761)
26
(4.02)
(4.32)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
39
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
NON-CURRENT ASSETS
Plant and equipment
Financial assets at fair value through other comprehensive income
Right-of-use of asset
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liability
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Total equity attributable to members of the company
Non-controlling interests
TOTAL EQUITY
Notes
2020
$
2019
$
7
8
9
10
11
12
11
14
15
11,419,259
104,710
11,523,969
4,872,768
67,975
4,940,743
1,089,595
39,000
19,493
1,148,088
125,478
26,000
-
151,478
12,672,057
5,092,221
591,643
19,582
611,225
433,573
-
433,573
611,225
433,573
12,060,832
4,658,648
41,705,488
7,368,569
(37,032,225)
12,041,832
19,000
12,060,832
25,981,324
3,183,093
(24,537,127)
4,627,290
31,358
4,658,648
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
40
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Note
Issued
capital
$
Reserves
$
Other
equity
$
Accumulated
losses
$
Owners of
the parent
$
Non-
controlling
interest
$
Total
$
At 1 July 2019
25,981,324
3,183,093
Net loss for the year
Other comprehensive income/(loss) for the year
Total comprehensive income/(loss)
Transactions with owners in their capacity as owners:
Issue of share capital (net of costs)
Issue of share options
Share-based payments
At 30 June 2020
At 1 July 2018
Net loss for the year
Other comprehensive income for the year
Total comprehensive income/(loss)
Transactions with owners in their capacity as owners:
Issue of share capital (net of costs)
Issue of share options
Share-based payments
14
15
14
15
-
-
-
15,724,164
-
-
15,724,164
-
567,354
567,354
-
-
3,618,122
3,618,122
41,705,488
7,368,569
-
-
-
-
-
-
-
-
-
(24,537,127)
4,627,290
31,358
4,658,648
(12,495,098)
-
(12,495,098)
(12,495,098)
567,354
(11,927,744)
(13,222)
864
(12,358)
(12,508,320)
568,218
(11,940,102)
-
-
-
-
15,724,164
-
3,618,122
19,342,286
-
-
-
-
15,724,164
-
3,618,122
19,342,286
(37,032,225)
12,041,832
19,000
12,060,832
19,958,624
869,781
258,000
(14,845,822)
6,240,583
11,293
6,251,876
-
-
-
-
(580,521)
(580,521)
-
-
-
(9,899,430)
208,125
(9,691,305)
(9,899,430)
(372,396)
(10,271,826)
19,671
394
20,065
(9,879,759)
(372,002)
(10,251,761)
6,022,700
-
-
6,022,700
-
-
2,893,833
2,893,833
(258,000)
-
-
(258,000)
-
-
-
-
5,764,700
-
2,893,833
8,658,533
-
-
-
-
5,764,700
-
2,893,833
8,658,533
At 30 June 2019
25,981,324
3,183,093
-
(24,537,127)
4,627,290
31,358
4,658,648
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
41
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration expenses
Interest received
COVID-19 cash flow boost received
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Proceed from sale of investment in listed entity
Net cash (used in)/generated from investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Issue of share capital (net of costs)
Exercise of options
Payment of lease liability
Net cash generated from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Effect of foreign exchange
Cash and cash equivalents at end of the year
Notes
2020
$
2019
$
(2,811,944)
(6,299,140)
86,733
50,000
(8,974,351)
(1,570,908)
(3,809,064)
57,861
-
(5,322,111)
(882,776)
-
(882,776)
(41,134)
44,045
2,911
16,365,110
65,500
(25,435)
16,405,175
6,548,048
4,872,768
(1,557)
11,419,259
4,226,707
-
4,226,707
(1,092,493)
5,962,611
2,650
4,872,768
25
9
27
7
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
1. GENERAL INFORMATION
The financial report covers Tietto Minerals Limited as a consolidated entity consisting of Tietto Minerals Limited and the
entities it controlled during the year (“the Group”). The financial report consists of the financial statements, notes to the
financial statements and the directors' declaration. Tietto Minerals Limited is a listed public company limited by shares,
incorporated and domiciled in Australia. The Company was listed on the Australian Securities Exchange on 18 January
2018.
The Company’s registered office and its principal place of business are as follows:
Australia
C/- Nexia Perth Pty Ltd
Level 3, 88 William Street
Perth WA 6000
West Africa
11 BP 776 Abidjian 11
Cody Les II PLATEAUX 7ieme Tranche
Republique De Cote D'lvoire
The Group is principally engaged in the exploration for gold in West Africa, specifically in the Republic of Côte d'Ivoire
and in the Republic of Liberia.
2.
BASIS OF PREPARATION
The financial statements comprise the consolidated financial statements for the Group. For the purpose of preparing
the consolidated financial statements, the Company is a for-profit entity.
(a) Statement of Compliance
The financial report is a general purpose financial report which has been prepared in accordance with the
Corporations Act 2001 , Accounting Standards and Interpretations, and complies with other requirements of the
law. Accounting Standards include Australian equivalents to International Financial Reporting Standards
("AIFRS"). Compliance with AIFRS ensures that the financial statements and notes of the Company and the
Group comply with International Financial Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board.
The financial statements were authorised for issue by the Directors on 25 September 2020.
(b) Basis of Measurement
The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non-
current assets and financial instruments. Cost is based on the fair value of the consideration given in exchange
for assets.
(c) Functional and Presentation Currency
The functional currency of the Company is Australian dollars (AUD). The functional currency of the subsidiaries
are:
Tietto Minerals (Liberia) Limited
Tietto Minerals (Côte d'Ivoire) Limited
Bamba & Fred Minerals SARL
Tietto Minerals Austar Pty Ltd
Tiebaya Gold SARL
US Dollars (USD)
West African CFA Franc (XOF)
West African CFA Franc (XOF)
Australian Dollars (AUD)
West African CFA Franc (XOF)
The presentation currency of the Group is Australian dollars (AUD).
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.
BASIS OF PREPARATION (CONTINUED)
(d) Significant Accounting Judgments and Key Estimates
The preparation of financial statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised
and in any future years affected.
Information about estimates and judgments made in applying accounting policies that have the most significant
effect on the amounts recognised in the financial statements are:
(i)
(ii)
(iii)
(iv)
(v)
The fair value of share-based payments as discussed in Note 16 (Share-Based Payments). The fair values
of options are determined using the Black Scholes Option Pricing Model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at valuation date and expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the
option;
The probability and timing of achieving milestones related to the performance rights as discussed in Note 15
(Reserves) and Note 16 (Share-Based Payments); and
The disclosure of the loan from LGL Australian Holdings Pty Ltd as a contingent liability as discussed in Note
13 (Borrowings) and Note 20 (Contingent Liabilities).
The disclosure of the payment to shareholders of Bamba & Fred Minerals Sarl (other than Tietto Minerals) as
a contingent liability as discussed in Note 20 (Contingent Liabilities).
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the Group based on known information. This consideration extends to staffing and
geographic regions in which the consolidated entity operates. There does not currently appear to be either
any significant impact upon the financial statements or any significant uncertainties with respect to events or
conditions which may impact the consolidated entity unfavourably as at the reporting date or subsequently
as a result of the COVID-19 pandemic.
(e) Going concern
The financial statements have been approved by the Directors on a going concern basis. In determining the
appropriateness of the basis of preparation, the Directors have considered the impact of the COVID19 pandemic
on the position of the Group at 30 June 2020 and its operations in future periods.
3.
SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Principles of Consolidation and Equity Accounting
(i) Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group
is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to or obtained by the Group. They are deconsolidated from the
date on which the Group ceases or loses control.
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Principles of Consolidation and Equity Accounting (Continued)
(i) Subsidiaries (continued)
The acquisition method of accounting is used to account for business combinations by the Group. The cost
of an acquisition is measured as the aggregate of the consideration transferred, which is measured at
acquisition date fair value, and the amount of any non-controlling interests in the acquiree. Acquisition-
related costs are expensed as incurred and included in administrative expenses.
Intercompany transactions, balances and unrealised gains on transactions between group entities are
eliminated in full on consolidation. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss and other comprehensive income, statement of changes in equity and statement
of financial position respectively.
(b) Financial Instruments
Financial assets and financial
becomes a party to the contractual provisions of the instrument.
liabilities are recognised in the statement of financial position when the Group
(i)
Financial assets
Except for certain trade receivables the Group initially measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit or loss, transaction costs. Financial assets are
subsequently measured at fair value through profit or loss ("FVPL"), amortised cost, or fair value through
other comprehensive income ("FVOCI"). The classification is based on two criteria: the Group’s business
model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely
payments of principal and interest’ on the principal amount outstanding (the "SPPI criterion").
Financial assets with embedded derivatives are considered in their entirety when determining whether their
cash flows meet the SPPI criterion.
Debt and other instruments at amortised cost
This category of financial assets are held within a business model with the objective to hold the financial
assets in order to collect contractual cash flows that meet the SPPI criterion. It includes the Group’s trade
and other receivables and cash and cash equivalents. Subsequent to initial recognition, trade and other
receivables are measured at amortised cost using the effective interest method, less any impairment losses
based on lifetime expected credit losses.
Cash and cash equivalents comprise cash balances and call deposits with original maturities of three
months or less. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash
and cash equivalents as defined above, net of any outstanding bank overdrafts.
Other receivables are held in order to collect the contractual cash flows and accordingly are measured at
initial recognition at fair value, which ordinarily equates to cost and are subsequently measured at cost less
impairment due to their short term nature. A provision for impairment is established based on 12-month
expected credit losses unless there has been a significant increase in credit risk when lifetime expected
credit losses are recognised. The amount of any provision is recognised in profit or loss.
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Financial Instruments (Continued)
(i)
Financial assets (continued)
Equity instruments at FVOCI
This category of financial assets has no recycling of gains or losses to profit or loss on derecognition, and
only includes equity instruments which are not held-for-trading and which the Group has irrevocably elected
to so classify upon initial recognition or transition. Equity instruments at FVOCI are not subject to an
impairment assessment under AASB 9. For this category there is no subsequent reclassification of fair value
gains and losses to profit or loss following the derecognition of
the investment. Dividends from such
investments continue to be recognised in profit or loss as other income when the group’s right to receive
its quoted equity
payments is established. The Group has irrevocably elected to classify some of
instruments as equity instruments at FVOCI.
(ii) Financial liabilities
Financial
substance of the contractual arrangements entered into and the definitions of a financial
equity instrument.
liabilities and equity instruments issued by the Group are classified in accordance with the
liability and an
The Group initially recognises debt securities issued and subordinated liabilities on the date that they are
originated. The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled or expire.
Financial liabilities comprise loans and borrowings and trade and other payables. Loans that are repayable
in the equity of the Company where the number of shares to be issued is variable is classified as liability.
All loans and borrowings are initially recorded at fair value, which is ordinarily equal to the proceeds received
net of transaction costs. These liabilities are subsequently measured at amortised cost, using the effective
interest rate method. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the loans or borrowings using the effective interest
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to
the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of
the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised
over the period of the facility to which it relates.
Loans and borrowings are removed from the statement of financial position when the obligation specified in
the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another party and the consideration paid, including any
non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance
costs.
Trade and other payables represent liabilities for goods and services provided to the entity prior to the end of
the financial year and which are unpaid. Trade and other payables are initially recognised at fair value plus
any directly attributable transaction costs. Subsequent to initial recognition, trade and other payables are
measured at amortised cost using the effective interest rate method.
All loans, borrowings and payables are classified as current liabilities unless the Group has an unconditional
right to defer settlement of the liability for at least 12 months after the reporting period.
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Financial Instruments (Continued)
(iii) Equity
An equity instrument is any contract that evidences a residual
interest in the assets of the Group after
deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds
received, net of direct issue costs.
The Group's equity includes ordinary shares, for which incremental costs directly attributable to their issue
are recognised as a deduction from equity, net of any tax effects. Dividends are recognised as a liability in
the year in which they are declared.
(iv) Effective interest rate method
The effective interest rate method is a method of calculating the amortised cost of a financial asset or liability
and allocating interest income or expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash flows through the expected life of the financial asset or liability, or,
where appropriate, a shorter period, to the net carrying amount on initial recognition.
(v)
Impairment of Financial Instruments
The Group assesses on a forward looking basis the expected credit losses ("ECLs") associated with its debt
instruments carried at amortised cost. ECLs are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is
then discounted at an approximation to the asset’s original effective interest rate.
For trade receivables, the Group has applied the standard’s simplified approach and has calculated ECLs
based on lifetime expected credit losses. The Group has established a provision matrix that is based on the
Group’s historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.
For other debt financial assets, the ECL is based on either the 12-month or lifetime ECL. The 12-month ECL
is the portion of lifetime ECLs that results from default events on a financial instrument that are possible
within 12 months after the reporting date. When there has been a significant increase in credit risk since
origination, the allowance will be based on the lifetime ECL.
In all cases, the Group considers that there has
been a significant increase in credit risk when contractual payments are more than 30 days past due.
The Group considers a financial asset in default when contractual payment are 90 days past due. However,
in certain cases, the Group may also consider a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before
taking into account any credit enhancements held by the Group.
(c)
Impairment of Other Financial Assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is
impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events
have had a negative effect on the estimated future cash flows of that asset. Financial assets are tested for
impairment on an individual basis.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the original
effective interest rate. An impairment loss in respect of an available for sale financial asset is calculated by
reference to its fair value.
All impairment losses are recognised in profit or loss. Any cumulative loss in respect of an available for sale
financial asset recognised previously in equity is transferred to profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment
loss was recognised. For financial assets measured at amortised cost and available for sale financial assets that
are debt securities, the reversal is recognised in profit or loss. For available for sale financial assets that are
equity securities, the reversal is recognised directly in equity.
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d) Foreign Currency
(i)
Foreign Currency Transactions
Transactions in foreign currencies are translated at foreign exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the
functional currency at the foreign exchange rate at that date. The foreign currency gain or loss on monetary
items is the difference between amortised cost in the functional currency at the beginning of the year,
adjusted for effective interest and payments during the year, and the amortised cost in foreign currency
translated at the exchange rate at the end of the year.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences
arising on the retranslation of available-for-sale equity instruments or qualifying cash flow hedges, which are
recognised directly in equity.
(ii) Foreign Operations
The assets and liabilities of foreign operations are translated to the presentation currency at exchange rates
at the reporting date. The income and expenses of foreign operations are translated to Australian dollars at
the average exchange rates for the year.
Foreign currency differences are recognised in other comprehensive income, and presented in the foreign
currency translation reserve in equity.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned
nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are
considered to form part of a net
in a foreign operation and are recognised in other
comprehensive income, and are presented in the translation reserve in equity.
investment
(e) Project Development and Exploration Expenditure
Project development and exploration expenditure, including the costs of acquiring licences, are expensed as
exploration and evaluation expenditure as incurred.
(f)
Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end. Depreciation is calculated on a diminishing value basis over the estimated useful life of
the assets as follows:
id
d dj
h d
d if
l li
d
d
h
i
i
i
i
'
l
Plant and equipment - 2 years
Motor vehicles - 4 years
f
l
(g) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows at a pre tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability.
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h) Goods and Service Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where
the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from,
or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position.
Cash flows are included in the statements of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as
operating cash flows.
(i)
Income Tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except
to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised on the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit.
In addition, deferred tax is not
recognised for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is
measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate
to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(j) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current year.
(k) Share-Based Payments
Equity-settled share-based payments to directors, employees, consultants and others providing similar services
are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant
date of the equity-settled share-based payments is expensed immediately where they vest immediately or on a
straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually
vest, with a corresponding increase in equity. For options with non-market based vesting conditions, at each
reporting date, the Company revises its estimate of the number of equity instruments expected to vest. The
impact of the revision of the original estimates, if any, is recognised in profit or loss over the remaining vesting
period, with a corresponding adjustment to the option reserve.
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(l)
Earnings per Share
Basic Earnings per share
Basic earnings per share is determined by dividing the net profit after income tax attributable to members of the
Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation
to dilutive potential ordinary shares.
(m) Segment Reporting
AASB 8 requires a ‘management approach’ under which segment information is presented on the same basis as
that used for internal reporting purposes.
Operating segments are now reported in a manner that is consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision-maker has been identified as the Board of Directors
of Tietto Minerals Limited.
(n)
Income recognition
Interest income is recognised using the effective interest method.
COVID-19 income is recognised when it is received or when the right to receive payment is established.
(n) New and Revised Accounting Standards and Interpretations Adopted
From 1 July 2019 the following standard and amendments are effective in the Group’s financial statements:
AASB 16 Leases
AASB 16 replaces the provisions of AASB 117 Leases that relate to the recognition, classification and
measurement of leases. This note explains the impact of the adoption of AASB 16 Leases on the Company’s
financial statements and discloses the new accounting policies that have been applied from 1 July 2019.
On 1 July 2019, the Company held the office lease based in Cote d'Ivoire. The Company assessed which
business model applied to the lease and classified its lease into the appropriate AASB 16 category.
The Company has elected to apply AASB 16 utilising the modified retrospective approach from 1 July 2019, and
therefore has not restated comparatives for the 2019 reporting period, as permitted under the specific transitional
provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are
therefore recognised in the opening balance sheet on 1 July 2019.
Reclassification from administration expense to a lease liability and right-of-use (“ROU”) asset
The office lease was reclassified from an operating lease which was recorded as an administrative expense in the
consolidated statement of profit or loss, as payments were made each month under the previous AASB 117, to
recognising a lease liability and a ROU asset in its balance sheet under the new AASB 16. The lease payments
are discounted using the Company’s incremental borrowing rate of 4.5%. See Note 11 for further details.
(o) New and Revised Accounting Standards and Interpretations on Issue but not yet Adopted
There are no standards that are not yet effective and that would be expected to have a material impact on the
Group in the current or future reporting periods and on foreseeable future transactions.
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
4. OTHER INCOME
COVID-19 cash flow boost income
Sale of investment in a listed entity
Insurance claim payout
Other income
5.
EXPLORATION EXPENSES
Exploration expenses - Liberia
Exploration expenses - Côte d'Ivoire
Exploration expenses - Others
6.
INCOME TAX EXPENSE
Tax expense comprises:
Current tax expense
Deferred tax expense/(income)
Total tax expense
2020
$
100,000
-
3,768
20
103,788
2020
$
515,486
7,312,039
20,485
7,848,010
2019
$
-
10,268
-
-
10,268
2019
$
369,163
4,932,508
150,529
5,452,200
2020
$
2019
$
-
-
-
-
-
-
Numerical reconciliation of income tax expense and tax at the statutory rate:
Loss before income tax expense
Tax at the statutory tax rate of 27.5% (2019: 27.5%)
Effect of tax rates in foreign jurisdiction*
Effect of net expenses that are not deductible in determining taxable profit
Effect of changes in unrecognised temporary differences
Effect of unused tax losses not recognised as deferred
Income tax expense
(12,508,320)
(9,879,759)
(3,439,788)
133,246
430,641
(9,777)
2,885,678
-
(2,716,934)
145,840
795,804
138,793
1,636,497
-
The tax rate used in the above reconciliation is the corporate tax rate of 27.5% (2019: 27.5%) payable by Australian
corporate entities on taxable profits under Australian tax law.
*The income tax rate applicable to profit income of the subsidiaries in Côte d'Ivoire and Liberia is 25% (2019: 25%).
Unrecognised deferred tax assets and liabilities
The following deferred tax assets and (liabilities) have not been brought to account:
Tax losses - revenue
Other temporary differences
At tax rate of 25% (2019: 27.5%)
12,955,562
400,093
13,355,655
3,338,914
11,318,335
435,644
11,753,979
3,232,344
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax
losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business
test is passed.
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
7.
CASH AND CASH EQUIVALENTS
Cash at bank
2020
$
2019
$
11,419,259
11,419,259
4,872,768
4,872,768
The Group’s exposure to interest rate risk and the effective weighted average interest rate for bank balances is
disclosed in Note 17.
8.
TRADE AND OTHER RECEIVABLES
Deposits
Prepayments
GST paid
Interest receivable
COVID-19 cash flow boost receivable
Other debtors and advances
There are no trade and other receivables that are past due but not impaired.
9.
PLANT AND EQUIPMENT
Construction of camp
Less: Accumulated depreciation of camp
Motor vehicles (at cost)
Less: Accumulated depreciation of motor vehicles
Plant and equipment (at cost)
Less: Accumulated depreciation of plant and equipment
Leasehold improvements (at cost)
Less: Accumulated depreciation of leasehold improvements
Carrying amount
2020
$
2019
$
5,452
13,897
24,697
4,969
50,000
5,695
104,710
2020
$
65,424
(7,905)
323,720
(37,930)
882,205
(135,919)
30,010
(30,010)
1,089,595
5,414
10,280
49,032
-
-
3,249
67,975
2019
$
64,972
(7,851)
-
-
109,616
(41,259)
30,010
(30,010)
125,478
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
Consolidated
Balance at 1 July 2018
Acquired through acquisition of a subsidiary
Depreciation expense
Foreign exchange movement
Balance at 30 June 2019
Balance at 1 July 2019
Additions*
Depreciation expense
Foreign exchange movement
Balance at 30 June 2020
*Additions during the year:
Cash payment per Consolidated Statement of Cash Flows
Accrued at year end
52
Total
$
97,224
41,134
(11,692)
(1,188)
125,478
125,478
1,096,761
(131,861)
(783)
1,089,595
882,776
213,985
1,096,761
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
10. FINANCIAL ASSETS AT FAIR VALUE THROUGH
OTHER COMPREHENSIVE INCOME
Shares in Taruga Gold Limited (at cost)
Revaluation loss
Less: Impairment loss
2020
$
2019
$
125,000
(86,000)
-
39,000
125,000
(99,000)
-
26,000
As at 30 June 2019 and 30 June 2020, the shares in Taruga Gold Limited were classified as financial assets at fair
value through other comprehensive income in accordance with AASB 9 Financial Instruments .
11. LEASES
(a) Amounts recognised in the balance sheet
Rights-of-use asset
Right-of-use assets recognised as at 1 July
Less: Accumulated amortisation
Closing balance
Lease liabilities
Lease liabilities recognised as at 1 July
Add: Interest
Less: Payments
Closing balance
(b) Amounts recognised in the consolidated statement of profit or loss
Amortisation of right-of-use asset
Interest expense on lease liabilities
2020
$
2019
$
43,674
(24,181)
19,493
43,674
1,343
(25,435)
19,582
24,181
1,343
-
-
-
-
-
-
-
-
-
(c) Leasing Activities
The Company leases the office property in Cote d'Ivoire. The lease of the property commenced on 10 May 2019 and
remains in force until 10 April 2021.
The lease is recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is
available for use by the Company. Each lease payment is allocated between the liability and finance cost. The finance
cost is charged to profit or loss over the lease period as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period. The right-ofuse asset is amortised over the shorter of the asset’s useful life and
the lease term on a straight-line basis.
Initial measurement
Assets and liabilities from a lease are initially measured on a present value basis. The lease liability includes the
present value of the fixed payments and variable lease payments that depend on an index, initially measured using the
index as at the commencement date (reconciled and adjusted for actual index each year). The lease payments are
discounted using the Company’s incremental borrowing rate of 4.50%.
The right-of-use asset is measured at cost comprising of the initial measurement of the lease liability.
Subsequent measurement
The right-of-use asset is subsequently measured at cost less any accumulated amortisation and any accumulated
impairment losses and adjusted for any re-measurement of the lease liability.
The lease liability is subsequently measured to reflect the interest on the lease liability, the lease payments made and
any reassessment of the variable payments.
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
12. TRADE AND OTHER PAYABLES
Trade payables
Other payables
Accrued expenses
Accrued drilling expenses
13. BORROWINGS
2020
$
108,867
77,832
314,093
90,851
591,643
2019
$
84,161
12,768
79,243
257,401
433,573
(a)
Interest-free loan facility agreement with Hongkong Ausino Investment Limited ("Ausino")
On 8 June 2018, the Group entered into an interest-free loan facility agreement with Ausino, for Ausino to pay the
Group's expenses for a total of up to RMB 7,300,000 (or AUD 1,500,000 based on an exchange rate of AUD 1 to
RMB 4.8667), within 12 months of 8 June 2018. Under the agreement, for each of Ausino's payments in RMB, the
amount paid in RMB will be converted into fully paid ordinary shares in the Company, based on the Company's
volume-weighted share price over 20 days and capped at AUD 0.21 per share.
On 4 June 2019, the above agreement ("old agreement") was terminated and the Group entered into a new
subscription agreement ("new agreement") with Ausino. Under the new agreement, Ausino agreed to pay the
Group's expenses for a total of up to AUD 2,000,000, within 18 months of 4 June 2019. For each of Ausino's
payments, the amount paid will be converted into fully paid ordinary shares in the Company, based on a deemed
subscription price of AUD 0.15 per share.
During the financial year 30 June 2019, Ausino paid AUD 912,847 of expenses on behalf of the Group under the
old agreement and AUD 605,585 under the new agreement. These amounts were converted into 15,859,685 fully
paid ordinary shares in the Company (see Notes 14(b) and 14(d) for more details). A further AUD 784,086 was
paid by Ausino on behalf of the Group for drilling related costs during the year 30 June 2020 which were
converted into 5,227,240 shares and 5,000,000 unlisted options on 17 January 2020. Refer Note 16(b)(iii) for
futher details.
The subscription agreement was terminated on 5 December 2019.
(b) Amount payable to LGL Australian Holdings Pty Ltd ("LGL")
The loan payable amount above does not include the amount payable from the Company to LGL of USD
1,500,000 (AUD 2,180,955), as the repayment of the loan to LGL is contingent upon the Group commencing
commercial production of areas specifically under the licence area. The amount payable to LGL has instead been
recognised as a contingent liability. See Note 20 for further details.
14.
ISSUED CAPITAL
Ordinary shares - fully paid
Less: Capital raising costs
2020
Number
2019
Number
2020
$
2019
$
356,664,454
264,038,358
46,850,113
(5,144,625)
41,705,488
27,773,419
(1,792,095)
25,981,324
Ordinary shares carry one vote per share and participate in dividends and the proceeds on winding up of the Company
in proportion to the number of shares held.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 200
14.
ISSUED CAPITAL (CONTINUED)
Movements in fully paid ordinary shares:
Number
$
On issue at 30 June 2018
216,424,928
19,958,624
Issue of shares in consideration for retention of interest in subsidiary (a)
Issue of shares at $0.077 for payment of loan on 26 September 2018 (b)
Issue of shares at $0.078 for payment of loan on 2 November 2018 (b)
Issue of shares at $0.071 for payment of loan on 2 January 2019 (b)
Issue of shares at $0.080 for payment of loan on 22 February 2019 (b)
Issue of shares under Trache 1 Capital Raising Placement on 30 April 2019
Issue of shares for payment of loan on 30 April 2019 (c)
Issue of shares at $0.132 for payment of loan on 13 June 2019 (b)
Issue of shares at $0.150 for payment of loan on 13 June 2019 (d)
On issue at 30 June 2019
Less: Capital raising costs
Issued capital at 30 June 2019
Tranche 2 Capital Raising Placement on 28 Aug 2019 (e)
Conversion of Tranche A Performance Rights into Ordinary Shares on 28 Aug 2019
(Note 16(c)(iv))
Issue of employee incentive shares on 28 Aug 2019 (Note 16(a)(i))
Tranche 2 Capital Raising Placement on 2 Sep 2019
Exercise of Options during the year
Tranche 1 Capital Raising Placement on 26 Nov 2019 (f)
Tranche 2 Capital Raising Placement on 17 Jan 2020 (g)
Issue of shares for payment of loan on 17 Jan 2020 (Note 16(b)(iii))
Conversion of Tranche B Performance Rights into Ordinary Shares on 31 Jan 2020
(Note 16(c)(iv))
Completion of Tranche 2 Placement Shares on 19 Feb 2020 (g)
Conversion of Tranche A and Tranche B Performance Rights into Ordinary Shares
on 11 Mar 2020 (Note 16(c)(iv))
Issued to non-controlling interests in lieu of a JV milestone payment (h)
On issue at 30 June 2020
Less: Capital raising costs
Issued capital at 30 June 2020
1,290,000
1,505,511
2,965,418
4,313,763
2,741,327
30,333,337
130,408
296,436
4,037,230
258,000
115,716
231,247
307,877
218,785
4,550,001
19,561
39,222
605,585
264,038,358
-
264,038,358
26,304,618
(323,294)
25,981,324
4,000,002
600,000
3,750,000
500,000
133,333
262,000
29,000,000
28,973,026
5,227,240
-
80,000
20,000
65,500
7,540,000
7,532,987
784,086
3,962,500
7,307,693
-
1,900,000
8,125,000
1,385,302
356,664,454
-
356,664,454
-
554,121
45,058,018
(3,352,530)
41,705,488
(a)
(b)
These shares were issued on 2 July 2018 in consideration for the Company to retain its 50% interest in Bamba &
Fred Minerals SARL. The shares were issued at a share price of $0.20. A reduction in Other Equity of $258,000
was recognised as at 2 July 2018 as a result of this share issue.
These shares were issued in consideration for the loan payable to Ausino under the ''old agreement''. A reduction
in loan payable of $912,847 was recognised as a result these shares issued. See Note 13(a) for further details on
the loan agreement between the Group and Ausino.
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
14.
ISSUED CAPITAL (CONTINUED)
Movements in fully paid ordinary shares (continued)
(c)
(d)
(e)
(f)
(g)
(h)
These shares were issued in consideration for the loan payable to Inner Mongolia Geological & Minerals
Exploration Pty Ltd. A reduction in amount payable of $19,561 was recognised as a result of these shares issued.
These shares were issued in consideration for the loan payable to Ausino under the ''new agreement''. A
reduction in loan payable of $605,585 was recognised as a result of these shares issued. See Note 13(a) for
further details on the loan agreement between the Group and Ausino.
Completion of Tranche 2 of the $7 million capital raising announced on 1 May 2019. The Tranche 2 placement
comprised the issue of 4,000,002 shares at an issue price of 15c per share to raise $600,000 before costs. This
placement has been made following a general meeting of shareholders held on 13 August 2019 where the $7
million placement was approved.
Completion of Tranche 1 of the $17 million capital raising announced on 18 November 2019. The Tranche 1
placement comprised the issue of 29,000,000 shares at an issue price of 26c per share raising $7,540,000 before
costs as approved by shareholders on 9 January 2020.
Completion of Tranche 2 of the $17 million capital raising announced on 18 November 2019. The Tranche 2
placement comprised the issue of 36,280,719 shares at an issue price of 26c per share raising $9,432,987 before
costs as approved by shareholders on 9 January 2020.
On 12 June 2020, the Company issued 1,385,302 ordinary shares at an issue price of 26c per share to joint
venture partner, being the shareholders of B&F Minerals Sarl (other than Tietto Minerals), in satisfaction of a
US$250,000 milestone cash payment made pursuant to the joint venture agreement over the Abujar Middle
Tenement. The fair value of the ordinary shares was $554,121 based on the share price of 40c per share on 12
June 2020. The loss on settlement of the liability of $189,621 was taken to the profit or loss.
15. RESERVES
Revaluation reserve for financial assets at fair value through other
comprehensive income (a)
Foreign exchange reserve (b)
Share-based payment reserve (d) (e)
Other reserve (c)
2020
$
2019
$
(86,000)
548,664
7,836,007
(930,102)
7,368,569
(99,000)
(5,690)
4,217,885
(930,102)
3,183,093
(a)
Revaluation reserve for financial assets at fair value through other comprehensive income
The revaluation reserve comprises the cumulative net change in the fair value of financial assets at fair value
through other comprehensive income (in accordance with AASB 9 Financial Instruments ), until the investments
are derecognised or impaired.
(b) Foreign exchange reserve
The foreign exchange reserve comprises all foreign currency differences arising from the translation of the
financial statements of foreign operations.
(c) Other reserve
The other reserve relates to transactions with non-controlling interests.
(d) Share-based payment reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
15. RESERVES (CONTINUED)
(e) Movement in share-based payment reserve
Number of
Unlisted
Options
Number of
Performance
Rights
$
On issue at 30 June 2018
51,828,830
17,875,000
1,324,052
Recognition of share-based payment vesting expenses
for performance rights issued on 31 Oct 2017 (Note 16(c)(i))
Recognition of share-based payment vesting expenses
for options to be issued to Ausino under IP services
agreement (Note 16(b)(i))
Recognition of share-based payment vesting expenses for options
and performance rights granted on 18 Oct 2018 (Note 16(c)(ii))
Recognition of share-based payment vesting expenses for options
and performance rights granted on 13 Aug 2019 (Note 16(c)(iii))
-
-
-
-
-
-
-
-
1,818,030
404,338
68,248
603,217
On issue at 30 June 2019
51,828,830
17,875,000
4,217,885
Issue of unlisted options on 28 Aug 2019 (Note 16(b)(i))
Issue of unlisted options on 28 Aug 2019 (Note 16(b)(ii))
Recognition of share-based payment vesting expenses for
performance rights issued on 31 Oct 2017 (Note 16(c)(i))
Conversion of performance rights on 28 Aug 2019
(Note 16(c)(iv))
Recognition of share-based payment vesting expenses for
unlisted options and performance rights granted on 18 Oct 2018
but issued on 28 Aug 2019 (Note 16(c)(ii))
Recognition of share-based payment vesting expenses
for options and performance rights granted on 13 Aug 2019
(Note 16(c)(iii)), issued on 28 Aug 2019
Issue of unlisted options granted on 22 Jan 2019
but issued on 28 Aug 2019 (Note 16(c)(iii))
Exercise of unlisted options at $0.25 per share during the year
Issue of unlisted options on 17 Jan 2020 (Note 16(b)(iii))
Conversion of performance rights on 31 January 2020
(Note 16(c)(iv))
Conversion of performance rights on 11 March 2020
(Note 16(c)(iv))
Cancellation of options and performance rights on
9 April 2020 (Note 16(c)(ii))
7,000,000
14,000,000
-
-
-
-
-
-
2,132,153
777,807
(3,750,000)
-
2,000,000
2,500,000
54,778
-
4,500,000
672,633
2,000,000
(262,000)
5,000,000
-
-
-
-
-
(3,962,500)
(8,125,000)
-
-
-
-
-
(1,000,000)
(1,500,000)
(19,249)
On issue at 30 June 2020
80,566,830
7,537,500
7,836,007
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS
(a)
Ordinary shares
(i)
500,000 fully paid ordinary shares to employees based in Cote d'Ivoire
On 28 August 2019, the Company issued 500,000 fully paid ordinary shares to employees based in Cote
d'Ivoire. The fair value of the shares issued was determined to be $0.16 per share, based on the Company's
share price at 1 July 2019 (the date the shares were originally granted). The value of the shares issued of
$80,000 was recognised as share-based payment expense in the consolidated statement of profit or loss
and other comprehensive income for the year ended 30 June 2020.
(b) Unlisted options not under Long Term Incentive Plan
(i) Unlisted options issued to Ausino
On 27 July 2018, the Company entered into an IP services agreement with Ausino, where Ausino is to
provide two sets of IP survey equipment, and six IP surveyors, to conduct the IP survey on the Group's
project sites in Côte d'Ivoire. In addition to the monthly and other payment terms for the Group to cover the
IP survey costs, the Company agreed to issue Ausino 7 million options in two tranches comprising:
•
•
The options will have an exercise price of AUD 0.30 each and a time of expiry of four years from the date of
issue. Vesting expenses on these options have been calculated and recognised during the year ended 30
June 2019, by reference to the grant date of 27 July 2018. The options were issued on 28 August 2019.
3.5 million options at the end of the first 6 months; and
3.5 million options at the end of the second 6 months of the 12 month IP survey period.
The fair value of the options issued was calculated at $0.058 as at 27 July 2018 and was determined using
the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the
impact of dilution, the share price at valuation date and expected price volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the option. The options vest over the
term of the agreement (as detailed above) and the value of the options to be issued of $404,338 was
recognised as share-based payment expense in the statement of profit or loss and comprehensive income
for the year ended 30 June 2019.
(ii)
14,000,000 unlisted options issued to the lead manager and co-lead manager
On 28 August 2019,
the Company issued 14,000,000 unlisted options (2,500,000 to Francis Harper,
2,500,000 to a director of Blackwood Capital and 9,000,000 to the co-lead manager) as capital raising fee.
The options hold no voting rights and are not transferable.
The fair value of the options issued was determined using the Black-Scholes option pricing model as the fair
value of the services received can't be reliably measured using another method. The Black-Scholes option
pricing model takes into account the exercise price, the term of the option, the share price at valuation date
and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest
rate for the term of the option (refer Note 16(d)). The options vested immediately and the value of the options
of $2,132,153 was recognised as capital raising costs in equity during the year ended 30 June 2020.
(iii) Shares and unlisted options issued to Ausino
On 4 June 2019, the Company entered into a share subscription agreement with Ausino to place up to $2
million of Tietto Shares (Subscription Agreement) in consideration for Ausino in satisfaction of operational
costs incurred by Ausino on the Company’s projects.
On 17 January 2020, the Tietto securities issued to Ausino under the Subscription Agreement include:
•
•
5,227,240 of Tietto Shares at a deemed issue price of $0.15 per Tietto Share; and
5,000,000 of Tietto Unlisted Options exercisable at $0.20 on or before 16 January 2023
equal
satisfaction of those payments of $784,086.
to outstanding drilling related payments made by Ausino on the Company’s behalf,
in full
At initial recognition, the accrual of the $784,086 payment was recorded in a convertible note reserve as the
conversion features meet the fixed for fixed criteria under AASB 132 Financial Instruments: Presentation.
The convertible note was subsequently converted into shares and options on 17 January 2020 as detailed
above. On conversion, the 5,227,240 shares were issued at a deemed value of $784,086 with the 5,000,000
free-attaching options deemed at nil value. No gain or loss was recognised on conversion of the payment.
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS (CONTINUED)
(c) Long Term Incentive Plan
(i) Options and performance rights issued to directors and company secretary
On 31 October 2017, the Company approved the issue of 6,750,000 options and 17,875,000 performance
rights to directors and the company secretary under the Company's Long Term Incentive Plan. Further
details can be found in the Annual Reports of the Group for the years ended 30 June 2019 and 30 June
2018.
The 17,875,000 performance rights were issued in three tranches and subject to the following vesting
conditions:
•
•
•
9,750,000 Tranche A Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 1.5M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell;
3,087,500 Tranche B Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 2.0M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell; and
5,037,500 Tranche C Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 3.0M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell.
The fair value per performance right is $0.15 which is the fair value of shares at grant date. The milestone for
Tranche A was achieved in the year ended 30 June 2019. The milestone for Tranche B was achieved during
the year. As at reporting date, the values attributable to Tranche A and Tranche B Performance Rights which
vested have been expensed in the statement of profit or loss and comprehensive income as follows:
Tranche A Performance Rights
Tranche B Performance Rights
Vested
100.00%
100.00%
Value
Attributed
1,462,500
463,124
1,925,624
$
$
$
Value
Expensed at
30 June 2019
$
1,462,500
$
355,530
$
1,818,030
Value
Expensed at
30 June 2020
$
-
$
107,594
$
107,594
As at reporting date, the probability of the achievement of the milestone and the value attributed for Tranche
C as a result has been assessed as follows:
Tranche C Performance Rights
Probability
100.00%
Estimated
Achievement
Date
1 Nov 2020
Value
Attributed
755,625
755,625
$
$
Value
Expensed at
30 June 2020
$
670,213
$
670,213
The probability of achievement of the milestones is reassessed at each reporting date. The performance
rights lapse if the directors leave the Company (subject to good leaver/bad leaver provisions).
See Note 16(c)(iv) for the conversion of Tranche A and Tranche B Performance Rights into fully paid
ordinary shares during the year.
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS (CONTINUED)
(c) Long Term Incentive Plan (continued)
(ii) Options and performance rights granted on 18 October 2018
On 18 October 2018, the Company also granted 2,000,000 options and 2,500,000 performance rights to one
of its employees under the Company's Long Term Incentive Plan. Each option and performance right issued
under the plan converts into one ordinary share of the Company on exercise. No amounts were paid or
payable by the recipient on receipt of the options and performance rights. The options and performance
rights neither carry rights to dividends nor voting rights. The options may be exercised at any time from the
date of vesting to the date of their expiry. The performance rights are subject to various vesting conditions.
The fair value of the 2,000,000 options issued was determined using the Black-Scholes option pricing model
that takes into account the exercise price, the term of the option, the impact of dilution, the share price at
valuation date and expected price volatility of the underlying share, the expected dividend yield and the risk-
free interest rate for the term of
these options vest after one year of continuous
employment and the other half vest after two years of continuous employment. $27,587 was recognised as
share-based payment expense in the statement of profit or loss and comprehensive income during the year
ended 30 June 2019. The other 1,000,000 options were cancelled on 9 April 2020 on termination of the
employee's employment.
the option. Half of
The 2,500,000 performance rights were issued in two tranches and subject
conditions:
•
•
1,000,000 Tranche B Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 2.0M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell; and
1,500,000 Tranche C Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 3.0M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell.
to the following vesting
The fair value per performance right is $0.07 which is the fair value of the underlying shares at grant date.
The milestone for Tranche B was achieved during the year and the values attributable to the options and
Tranche B Performance Rights which vested have been expensed in the statement of profit or loss and other
comprehensive income as follows:
2,000,000 options
Tranche B Performance Rights
Vested
50.00%
100.00%
Value
Attributed
33,778
70,000
$
$
Value
Expensed at
30 June 2019
$
27,587
$
40,661
$
68,248
Value
Expensed at
30 June 2020
$
6,190
$
29,339
$
35,529
The 1,500,000 Tranche C Performance Rights were cancelled on 9 April 2020 following the termination of
the employee's employment and accordingly $19,249 was reversed from the statement of profit or loss and
other comprehensive income.
(iii) Options and performance rights granted on 13 August 2019
the shareholders of
On 13 August 2019,
the Company approved the issue of 2,000,000 options and
4,500,000 performance rights for Paul Kitto under the Company's Long Term Incentive Plan. Each option
and performance right issued under the plan converts into one ordinary share of the Company on exercise.
No amounts were paid or payable by the recipient on receipt of the options and performance rights. The
options and performance rights neither carry rights to dividends nor voting rights. The options may be
exercised at any time from the date of vesting to the date of their expiry. The performance rights are subject
to various vesting conditions.
Although the options and performance rights issued to Paul Kitto were granted on 13 August 2019, they
relate to Dr Kitto's services provided as a director from the time of his appointment on 22 January 2019 and
hence the value expensed for his options and performance rights have been calculated by reference to Dr
Kitto's appointment date.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS (CONTINUED)
(c) Long Term Incentive Plan (continued)
(iii) Options and performance rights granted on 13 August 2019 (continued)
The fair value of the 2,000,000 options issued was determined using the Black-Scholes option pricing model
that takes into account the exercise price, the term of the option, the impact of dilution, the share price at
valuation date (being the grant date at 13 August 2019) and expected price volatility of the underlying share,
the expected dividend yield and the risk-free interest rate for the term of the option. These options vested
immediately and the value of the options of $307,730 was recognised as share-based payment expense in
the statement of profit or loss and comprehensive income during the year ended 30 June 2019.
The 4,500,000 performance rights were issued in three tranches and subject
conditions:
•
•
•
500,000 Tranche A Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 1.5M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell;
1,500,000 Tranche B Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 2.0M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell; and
2,500,000 Tranche C Performance Rights, upon achieving in respect of the Projects, an aggregate of at
least 3.0M oz with cut-off grade of at least 0.4g/t within pit shell and at least 0.8g/t beyond pit shell.
to the following vesting
The fair value per performance right is $0.24 which is the fair value of shares at grant date on 13 August
2019. The milestone for Tranche A was achieved in the year ended 30 June 2019. The milestone for
Tranche B was achieved during the year. As at reporting date, the values attributable to the options, the
Tranche A and Tranche B Performance Rights which vested have been expensed in the statement of profit
or loss and comprehensive income as follows:
2,000,000 options
Tranche A Performance Rights
Tranche B Performance Rights
Vested
100.00%
100.00%
100.00%
Value
Attributed
307,730
120,000
360,000
$
$
$
Value
Expensed at
30 June 2019
$
307,730
$
120,000
$
175,487
$
603,217
Value
Expensed at
30 June 2020
$
-
$
-
$
184,513
$
184,513
As at reporting date, the probability of the achievement of the milestone and the value attributed for Tranche
C as a result has been assessed as follows:
Tranche C Performance Rights
Probability
100.00%
Estimate
Achievement
Date
1 Nov 2020
Value
Attributed
600,000
600,000
$
$
Value
Expensed at
30 June 2020
$
488,120
$
488,120
The probability of achievement of the milestones is reassessed at each reporting date. The performance
rights lapse if the director leaves the Company (subject to good leaver/bad leaver provisions).
See Note 16(c)(iv) for the conversion of Tranche A and Tranche B Performance Rights into fully paid
ordinary shares during the year.
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS (CONTINUED)
(c) Long Term Incentive Plan (continued)
(iv)
Exercised of options and performance rights
There were no options issued as share based payments, exercised for the years ended 30 June 2020 and
30 June 2019.
There were no performance rights exercised for the year ended 30 June 2019.
The following performance rights were exercised and converted into fully paid ordinary shares to the
following directors and employee during the year ended 30 June 2020:
Performance Rights issued to directors and employees on:
18-Oct-18
13-Aug-19
31-Oct-17
Note 16(c)(i)
No.
Tranche A Performance Rights
converted on 28 August 2019:
Francis Harper
Hanjing Xu
Mark Strizek
Paul Kitto
Total converted on 28 August 2019
Tranche B Performance Rights
converted on 31 January 2020:
Francis Harper
Hanjing Xu
Mark Strizek
Paul Kitto
Employee
Total converted on 31 January 2020
Tranche A and B Performance Rights
converted on 11 March 2020:
Caigen Wang
Tranche A
Tranche B
Total converted on 11 March 2020
1,625,000
812,500
812,500
-
3,250,000
650,000
406,250
406,250
-
-
1,462,500
6,500,000
1,625,000
8,125,000
Note 16(c)(ii) Note 16(c)(ii)
No.
No.
Total
No.
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
-
-
-
500,000
500,000
-
-
-
1,500,000
-
1,500,000
1,625,000
812,500
812,500
500,000
3,750,000
650,000
406,250
406,250
1,500,000
1,000,000
3,962,500
-
-
-
-
-
-
6,500,000
1,625,000
8,125,000
Total conversion
12,837,500
1,000,000
2,000,000
15,837,500
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS (CONTINUED)
(d) Share-based payment arrangements in existence
The following share-based payment arrangements were granted during the year ended 30 June 2020:
Number
500,000
11,500,000
2,500,000
5,000,000
Type
Shares
Options
Options
Options
Grant date
1-Jul-19
28-Aug-19
13-Aug-19
4-Jun-19
Expiry date
N/A
28-Aug-22
28-Aug-22
16-Jan-23
Exercise
$
-
0.1725
0.1725
0.20
Fair value at
grant date $
0.160
0.148
0.174
Nil*
*Free-attaching options deemed at nil value. Refer Note 16(b)(iii) for more details.
The table below summarises the model inputs for the shares granted and the options granted during the period.
The options were valued using the Black-Scholes option pricing model.
Inputs into the model
Grant date
Grant date share price
Exercise price
Expected volatility
Life of options / performance rights
Dividend yield
Risk-free interest rate
Remaining number at reporting date
500,000
shares
1-Jul-19
$0.16
-
N/A
N/A
N/A
N/A
N/A
11,500,000
options
28-Aug-19
$0.21
$0.1725
111.84%
3 years
-
0.69%
11,500,000
2,500,000
options
13-Aug-19
$0.24
$0.1725
111.84%
3 years
-
0.69%
2,500,000
(e) Summary of expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year were as follows:
Shares issued to employees
Unlisted options issued to brokers as capital raising costs*
Performance rights issued to directors on 31 Oct 2017
Unlisted options granted to Ausino
Options granted to employee on 18 Oct 2018 (issued on 28 Aug 2019)
Performance rights granted to employee on 18 Oct 2018 (issued on 28 Aug 2019)
Options granted to director on 22 Jan 2019 (issued on 28 Aug 2019)
Performance rights granted to director on 22 Jan 2019 (issued on 28 Aug 2019)
Options and performance rights cancelled on termination of an employee
2020
$
80,000
-
777,807
-
25,439
29,339
-
672,633
(19,249)
1,565,969
2019
$
-
1,818,030
404,338
27,587
40,661
307,730
295,487
-
2,893,833
* $2,132,153 was recognised as part of capital raising costs (recognised in equity) during the year ended 30 June
2020.
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS (CONTINUED)
(f) Reconciliation of movements of share-based payments in existence
Options
Grant Date
Issue Date Expiry Date
31 Oct 2017 31 Oct 2017 31 Dec 2021
29 Dec 2017 29 Dec 2017 31 Dec 2021
27 Jul 2018 28 Aug 2019 22 Jan 2023
18 Oct 2018 28 Aug 2019 22 Jan 2022
18 Oct 2018 28 Aug 2019 22 Jan 2023
22 Jan 2019 28 Aug 2019 22 Jan 2022
22 Jan 2019 28 Aug 2019 22 Jan 2023
28 Aug 2019 28 Aug 2019 28 Aug 2022
13 Aug 2019 28 Aug 2019 28 Aug 2022
17 Jun 2020 17 Jun 2020 16 Jan 2023
Exercise
Price
$
0.20
0.20
0.30
0.25
0.30
0.25
0.30
0.1725
0.1725
0.20
Weighted average exercise price
Weighted average remaining contractual life is 2 years
Grant Date
Issue Date Expiry Date
31 Oct 2017 31 Oct 2017 31 Dec 2021
29 Dec 2017 29 Dec 2017 31 Dec 2021
27 Jul 2018 28 Aug 2019 22 Jan 2023
18 Oct 2018 28 Aug 2019 22 Jan 2022
18 Oct 2018 28 Aug 2019 22 Jan 2023
22 Jan 2019 28 Aug 2019 22 Jan 2022
22 Jan 2019 28 Aug 2019 22 Jan 2023
Exercise
Price
$
0.20
0.20
0.30
0.25
0.30
0.25
0.30
Weighted average exercise price
Weighted average remaining contractual life is 2.9 years
Balance at
1 July 2019
No
6,750,000
5,000,000
7,000,000
1,000,000
1,000,000
1,000,000
1,000,000
-
-
-
22,750,000
$0.24
Balance at
1 July 2018
No
6,750,000
5,000,000
-
-
-
-
-
11,750,000
$0.20
Granted
No
Exercised
No
Expired /
Forfeited
No
Balance at
30 June 2020
No
-
-
-
-
-
-
-
11,500,000
2,500,000
5,000,000
19,000,000
$0.18
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,000,000)
-
-
-
-
-
$
-
(1,000,000)
$0.30
6,750,000
5,000,000
7,000,000
1,000,000
-
1,000,000
1,000,000
11,500,000
2,500,000
5,000,000
40,750,000
$0.21
Vested and
Exercisable at 30
June 2020
No
6,750,000
5,000,000
7,000,000
1,000,000
-
1,000,000
1,000,000
11,500,000
2,500,000
5,000,000
40,750,000
$0.21
Granted
No
Exercised
No
-
-
7,000,000
1,000,000
1,000,000
1,000,000
1,000,000
11,000,000
$0.29
-
-
-
-
-
-
-
-
$
-
Expired /
Forfeited
No
-
-
-
-
-
-
-
-
$
-
Vested and
Exercisable at 30
June 2019
No
6,750,000
5,000,000
7,000,000
-
-
-
-
18,750,000
$0.24
Balance at
30 June 2019
No
6,750,000
5,000,000
7,000,000
1,000,000
1,000,000
1,000,000
1,000,000
22,750,000
$0.24
1,070
Vested and
unexercisable at
30 June 2020
No
-
-
-
-
-
-
-
-
-
-
-
$
-
Vested and
unexercisable at
30 June 2019
No
-
-
-
-
-
1,000,000
1,000,000
2,000,000
$0.28
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16. SHARE-BASED PAYMENTS (CONTINUED)
(f) Reconciliation of movements of share-based payments in existence (continued)
Performance Rights
Grant Date
Issue Date Expiry Date
31 Oct 2017 31 Oct 2017 18 Jan 2022
18 Oct 2018 28 Aug 2019 18 Jan 2022
22 Jan 2019 28 Aug 2019 18 Jan 2022
Balance at
1 July 2019
No
17,875,000
2,500,000
4,500,000
24,875,000
Granted
No
-
-
-
-
Exercised
No
(12,837,500)
(1,000,000)
(2,000,000)
(15,837,500)
Expired /
Forfeited
No
Balance at
30 June 2020
No
-
5,037,500
(1,500,000)
-
(1,500,000)
-
2,500,000
7,537,500
Vested and
Exercisable at
30 June 2020
No
Vested and
unexercisable at
30 June 2020
No
-
-
-
-
-
-
-
-
Weighted average remaining contractual life is 1.5 years
Grant Date
Issue Date Expiry Date
31 Oct 2017 31 Oct 2017 18 Jan 2022
18 Oct 2018 28 Aug 2019 18 Jan 2022
22 Jan 2019 28 Aug 2019 18 Jan 2022
Balance at
1 July 2018
No
17,875,000
-
-
17,875,000
Granted
No
-
2,500,000
4,500,000
7,000,000
Exercised
No
Expired /
Forfeited
No
Balance at
30 June 2019
No
Vested and
Exercisable at
30 June 2019
No
Vested and
unexercisable at
30 June 2019
No
-
-
-
-
-
-
-
-
17,875,000
2,500,000
4,500,000
24,875,000
9,750,000
-
-
9,750,000
-
-
500,000
500,000
Weighted average remaining contractual life is 2.5 years
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
17.
FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group has exposure to the following risks from its use of financial instruments:
-
-
-
-
Foreign currency risk
Liquidity risk
Interest rate risk
Capital management
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 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 the 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 aims to
in which all employees understand their roles and
develop a disciplined and constructive control environment
obligations.
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial
transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity
analysis and cash flow forecasting.
The carrying amount of the Group's foreign currency denominated financial assets and financial
reporting date, expressed in Australian dollars, was as follows:
liabilities at the
UK pound sterling
Euro
US dollars
Chinese Yuan Renminbi
West African CFA franc
Assets
Liabilities
2020
$
4,504
83,114
160,744
-
29,274
277,636
2019
$
9,212
-
6,142
-
89,131
104,485
2020
$
-
-
-
(219,335)
-
(219,335)
2019
$
-
-
(257,401)
-
-
(257,401)
Foreign currency sensitivity analysis
The sensitivity analyses of the Group’s exposure to foreign currency risk at the reporting date has been determined
based on a change of 10% in the value of the Australian dollar against the relevant foreign currencies. The sensitivity
analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the
period end for a 10% change in foreign currency rates.
At reporting date, if the Australian dollar was 10% stronger and all other variables were constant, the Group’s net loss
would have increased by $5,142 (2019: net loss would have decreased by $36,189) with a corresponding decrease in
equity. Where the Australian dollar weakened, there would be an equal and opposite impact on the loss after tax and
equity.
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
17.
FINANCIAL INSTRUMENTS (CONTINUED)
Price risk
The Group is not exposed to any significant price risk.
Interest rate risk
The Group is exposed to movements in market interest rates on bank balances.
The Group’s exposure to interest rate risk and the effective weighted average interest rate for bank balances is set out
in the following table:
Financial assets
Cash at bank
Weighted Average
Effective Interest Rate
2020
2019
%
%
Variable Interest Rate
2020
2019
$
$
0.77
1.41
1,349,772
1,349,772
1,363,462
1,363,462
Interest rate sensitivity analysis
The sensitivity analyses of the Group’s exposure to interest rate risk at the reporting date has been determined based
on a change of 100 basis points in interest rates.
At reporting date, if interest rates had been 100 basis points higher and all other variables were constant, the Group’s
net loss after tax would have decreased by $13,498 (2019: $13,635) with a corresponding increase in equity. Where
interest rates decreased, there would be an equal and opposite impact on the loss after tax and equity.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when they fall due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Group’s reputation.
Liquidity risk management is the responsibility of the Board of Directors, who have built an appropriate liquidity risk
management framework for the management of the Company’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, identifying when further capital raising initiatives are required.
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial assets and
liabilities and have been prepared on the following basis:
-
Financial assets - based on the undiscounted contractual maturities including interest that will be earned on those
assets except where the Group anticipates that the cash flow will occur in a different period; and
Financial liabilities - based on undiscounted cash flows on the earliest date on which the Group can be required to
pay, including both interest and principal cash flows.
-
2020
Financial assets
Non-interest bearing
Variable interest rate
Fixed interest rate
Financial liabilities
Non-interest bearing
Fixed interest rate
Carrying
amount
$
Less than 1
month
$
1 month
to 1 year
$
> 1 year
$
Total
$
129,813
1,349,772
10,069,487
11,549,072
90,813
1,349,772
-
1,440,585
-
-
10,069,487
10,069,487
39,000
-
-
39,000
129,813
1,349,772
10,069,487
11,549,072
(206,281)
-
(206,281)
(186,699)
-
(186,699)
(19,582)
-
(19,582)
-
-
-
(206,281)
-
(206,281)
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
17.
FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk (continued)
2019
Financial assets
Non-interest bearing
Variable interest rate
Fixed interest rate
Financial liabilities
Non-interest bearing
Fixed interest rate
Carrying
amount
$
Less than 1
month
$
1 month
to 1 year
$
> 1 year
$
Total
$
83,695
1,363,462
3,509,306
4,956,463
57,695
1,363,462
-
1,421,157
-
-
3,509,306
3,509,306
26,000
-
-
26,000
83,695
1,363,462
3,509,306
4,956,463
(96,929)
-
(96,929)
(96,929)
-
(96,929)
-
-
-
-
-
-
(96,929)
-
(96,929)
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 3. The directors
consider that the carrying amount of financial assets and other financial liabilities recorded in the financial statements
approximate their net fair values.
Fair value hierarchy
The table below analyses financial
different levels have been defined as follows:
•
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included with Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derives from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
•
instruments carried at fair value by the levels in the fair value hierarchy. The
2020
Financial assets at fair value through other
comprehensive income
2019
Financial assets at fair value through other
comprehensive income
Level 1
Level 2
Level 3
Total
39,000
-
-
39,000
26,000
-
-
26,000
Capital management
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 to meet the
funding requirements of the Group.
There were no changes in the Group’s approach to capital management during the year. Neither the Company nor any
of its subsidiaries are subject to externally imposed capital requirements.
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
18.
KEY MANAGEMENT PERSONNEL DISCLOSURES
Details of key management personnel compensation are disclosed in the Remuneration Report which forms part of the
is
Directors’ Report and has been audited. The aggregate compensation of
summarised below:
the key management personnel
Short term employee benefits
Post employment benefits
Other benefits
Directors' remuneration
Share-based payments - performance rights
Share-based payments - unlisted options
Total remuneration
19.
REMUNERATION OF AUDITORS
2020
$
2019
$
650,779
31,193
8,400
690,372
478,500
17,160
-
495,660
1,450,439
-
2,140,811
2,113,517
307,730
2,916,907
During the financial year the following fees were paid or payable for services provided by the auditor of the Company:
2020
$
2019
$
Audit and review of the financial statements
48,763
42,520
20. CONTINGENT LIABILITIES
The Group had contingent liability of USD 1,500,000 as at 30 June 2020 and as at 30 June 2019 (AUD as at 30 June
2020 and AUD 2,180,955 as at 30 June 2019). This amount resulted from the termination a loan agreement between
LGL Australian Holdings Pty Ltd and the Group, due to the farm-in agreement for the Abujar project not being
executed.
Under the termination agreement, the Group will only be required to settle the USD 1,500,000 within 12 months from
the commencement of commercial production from any part of the area underlying the relevant licence under the
agreement.
Further details of the original
loan agreement with LGL Australian Holdings Pty Ltd, and details of the gain on
derecognition of the loan from LGL Australian Holdings Pty Ltd, are in the Company's Annual Report for the year ended
30 June 2018.
In accordance with the Partnership Agreement between the Group and Bamba & Fred Minerals Sarl ("B&F"), the Group
has obligation to pay the shareholders of B&F (other than Tietto Minerals) USD$250,000 upon each discovery of
500,000 ounces of gold to a maximum USD$1,500,000 upon the discovery of total 3,000,000 ounces of gold, as
defined by the standard "indicated" category of the JORC code. USD$250,000 has been paid via issue of shares
during the year (refer to Note 14(h)). The remaining contingent obligation at 30 June 2020 is USD$1,250,000.
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
21. SEGMENT INFORMATION
Operating segments are reported in a manner that is consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision-maker has been identified as the Board of Directors of Tietto
Minerals Limited.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to
have similar economic characteristics. The Group operates as three segments which is mineral exploration within
Australia, Liberia and Côte d'Ivoire. The Group is domiciled in Australia.
The following table presents the revenue and results information regarding the segment information provided to the
Board of Directors for the year ended 30 June 2020.
Continuing Operations
2020
Segment income
Segment expenditure
Net loss after tax
Administration
Australia
$
Exploration
Liberia
$
Exploration
Côte
D'Ivoire
$
Intersegment
Eliminations
$
Total
$
195,490
(8,471,093)
(8,275,603)
-
(766,155)
(766,155)
-
(8,100,910)
(8,100,910)
-
4,634,348
4,634,348
195,490
(12,703,810)
(12,508,320)
Depreciation
Exploration expenditure
(122,448)
(20,485)
-
(515,486)
(9,413)
(7,312,039)
-
-
(131,861)
(7,848,010)
Non-current assets
Segment assets
Segment liabilities
2019
Segment income
Segment expenditure
Net loss after tax
1,045,003
16,013,383
(419,542)
-
9,723
(4,053,899)
151,049
185,775
(19,102,177)
(47,964)
(3,536,824)
22,964,393
1,148,088
12,672,057
(611,225)
68,129
(8,279,877)
(8,211,748)
-
(447,609)
(447,609)
-
(5,386,004)
(5,386,004)
-
4,165,602
4,165,602
68,129
(9,947,888)
(9,879,759)
Depreciation
Exploration expenditure
(1,189)
(150,529)
-
(369,163)
(10,503)
(4,932,508)
-
-
(11,692)
(5,452,200)
Non-current assets
Segment assets
Segment liabilities
77,911
6,800,455
(361,099)
-
2,647
(3,232,891)
121,531
213,630
(13,646,242)
(47,964)
(1,924,511)
16,806,659
151,478
5,092,221
(433,573)
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
22. COMMITMENTS
Committed at reporting date but not recognised as liabilities, payable:
Within one year
After one year but not more than five years
Lease commitments - operating
Committed at reporting date but not recognised as liabilities, payable:
Within one year
After one year but not more than five years
23. RELATED PARTIES
Transactions with related parties
2020
$
2019
$
-
-
-
-
-
-
-
-
-
32,536
-
32,536
During the year ended 30 June 2020, Blackwood Capital, a company associated with the Company's chairman, Mr
Francis Harper received cash payment of $235,840 (inclusive of GST) for capital raising fees.
On 28 August 2019, the Company issued 2,500,000 unlisted options to the Company's chairman, Francis Harper
valued at $435,241 as capital raising fee. The options expire on 28 August 2022 and have an exercise price of
During the year ended 30 June 2020, Hopeview Investments Pty Ltd, a company associated with Mr Francis Harper
received cash payment of $31,000 (inclusive of GST) for capital raising fees.
All related party transactions are on arm's length terms. There were no other transactions with related parties during
the 2019 and 2020 financial years.
Loans with related parties
There were no loans with related parties during the 2019 and 2020 financial years.
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
24.
PARENT ENTITY INFORMATION
Investment in controlled entities
Name
Tietto Minerals (Liberia) Limited
Tietto Minerals (Côte d'Ivoire) Limited
Tietto Minerals Austar Pty Ltd
Bamba & Fred Minerals SARL
Tiebaya Gold SARL
Principal
Activities
Country of
incorporation
Exploration
Exploration
Exploration
Exploration
Exploration
Liberia
Ivory Coast
Australia
Ivory Coast
Ivory Coast
Ownership of interest
2020
2019
%
%
100
100
100
100
100
100
50
50
90
90
As at, and throughout the financial years ending 30 June 2020 and 30 June 2019, the parent entity of the Group was
Tietto Minerals Limited.
Result of parent entity
Loss for the year
Other comprehensive gain/(loss)
Total comprehensive loss for the year
Financial position of parent entity at year end
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Share capital
Revaluation reserve
Options reserve
Other reserve
Accumulated losses
Total equity
2020
$
2019
$
(11,812,848)
13,000
(11,799,848)
(10,136,947)
(169,000)
(10,305,947)
11,480,050
997,139
12,477,189
419,542
-
419,542
4,846,260
30,047
4,876,307
361,099
-
361,099
12,057,647
4,515,208
41,705,488
(86,000)
7,836,007
(644,910)
(36,752,938)
12,057,647
25,981,324
(99,000)
4,217,885
(644,910)
(24,940,091)
4,515,208
Parent entity capital commitments for acquisition for property, plant and equipment
There are no contracted capital commitments of the parent entity at year end.
Parent entity guarantees in respect of the debts of its subsidiaries
There are no parent entity guarantees in respect of the debts of its subsidiaries at year end.
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
25. CASH FLOW INFORMATION
2020
$
2019
$
Reconciliation of cash flows used in operating activities with loss after tax is as follows:
Loss after tax
(12,508,320)
(9,879,759)
Adjustment for:
Foreign currency exchange differences
Depreciation
Amortisation
Share-based payments
Exploration expenditure not paid via cash
Loss on settlement of liability
Interest expense in investing and financing activities
Gain on sale of investment in a listed entity
Operating loss before working capital changes
(Increase)/Decrease in receivables
(Decrease)/Increase in trade and other payables
Net cash used in operating activities
572,059
131,861
24,181
1,565,969
1,149,086
189,621
6,693
-
(8,868,850)
(36,735)
(68,766)
(8,974,351)
(204,464)
11,692
-
2,893,833
1,537,993
-
-
(10,268)
(5,650,973)
14,612
314,250
(5,322,111)
Non-cash investing activities during the current or prior financial years are as disclosed in the above. Non-cash
financing transactions during the current and prior financial years are detailed in Note 14 and Notes 16(a) 16(b).
26. LOSS PER SHARE
Basic loss per share (cents per share)
2020
2019
(4.02)
(4.32)
$
$
Loss after income tax attributable to the owners of Tietto Minerals Limited
(12,495,098)
(9,899,430)
Weighted average number of ordinary shares
Number
Number
310,561,902
229,170,163
Diluted loss per share has not been calculated as the result does not increase loss per share.
27. EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to year end, the Company issued 91 million shares pursuant to a Share Placement and Share Purchase
Plan at an issue price of $0.62 per share raising approximately $56.6 million total gross proceeds.
On 10 September 2020, the shareholders approved the issue of 500,000 Class D Performance Rights to Mark Strizek.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while there has been no negative impact for the
consolidated entity up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after
the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions
and any economic stimulus that may be provided.
There has not been any other matter or circumstance occurring subsequent to the end of the financial year that has
significantly affected, or may significantly affect the operations of the Group, the results of those operations, or the
state of affairs of the Group in future financial years.
73
DIRECTORS' DECLARATION
The directors of the Company declare that:
1.
the attached financial statements notes thereto comply with the Corporations Act 2001, the Australian Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
a)
b)
comply with International Financial Reporting Standards as issued by the International Accounting Standards
Board as described in Notes 2 and 3 to the financial statements;
give a true and fair view of the Group's financial position as at 30 June 2020 and of its performance for the
financial year ended on that date; and
2.
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due
and payable.
3.
The directors have been given the declarations required by section 295A of the Corporations Act 2001 .
Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001 .
On behalf of the Directors
Caigen Wang
Managing Director
Dated at Perth this 29th day of September 2020
74
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Tietto Minerals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Tietto Minerals Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2020, 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 report, 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:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
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.
Accounting for share-based payments
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 16 to the financial report, the
Our procedures included, but were not limited to the
Group has granted a number of equity instruments
following:
which have been accounted for as share-based
payments in accordance with AASB 2 Share-based
Payment.
Refer to Note 2(d) of the financial report for a
description on the significant estimates and
judgements applied to these arrangements.
(cid:127)
(cid:127)
Holding discussions with management to
understand the share-based payment
arrangements in place;
Reviewing relevant supporting documentation to
obtain an understanding of the contractual nature
and terms and conditions of the share-based
Share-based payments are a complex accounting area
payment arrangements;
and due to the complex and judgemental estimates
used in determining the fair value of financial
instruments and how the share-based payments should
be recognised, therefore we consider the accounting of
the share-based payments to be a key audit matter.
(cid:127)
Reviewing management’s determination of the fair
value of the share-based payments granted,
considering the appropriateness of the valuation
models used and assessing the valuation inputs;
(cid:127)
(cid:127)
(cid:127)
(cid:127)
Assessing the reasonableness of the valuation
assumptions and inputs using our valuation
specialists where deemed necessary;
Evaluating management’s assessment of the
probability and timing of achieving non-market
performance conditions relating to performance
rights;
Assessing the allocation of the share-based
payment expense over the expected vesting
periods; and
Assessing the adequacy and completeness of the
related disclosures in Note 2(d) and Note 16 to the
financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2020, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 32 to 37 of the directors’ report for the
year ended 30 June 2020.
In our opinion, the Remuneration Report of Tietto Minerals Limited, for the year ended 30 June 2020,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth, 29 September 2020
ASX ADDITIONAL INFORMATION
Information as at 25 September 2020
(a) Distribution of Shareholders
Category (size of holding)
Holders
Number of Shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
74
252
209
708
313
1,556
31,647
760,845
1,766,706
28,690,382
418,620,876
449,870,456
Total
The number of shareholdings held in less than marketable parcels is 64.
(b) Voting rights
The voting rights attached to each class of equity security are as follows:
Ordinary Shares
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.
Options
There are no voting rights attached to any class of options that are on issue.
Performance Rights
There are no voting rights attached to any class of Performance Rights that are on issue.
79
ASX ADDITIONAL INFORMATION (CONTINUED)
(c)
20 Largest Shareholders — Ordinary Shares as at 25 September 2020
Rank Name
HONGKONG AUSINO INVESTMENT LTD
Ordinary
Shares Held
% of
Issued
Capital
44,418,059
9.87%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
39,162,653
8.71%
5013423 ONTARIO CORP
INNER MONGOLIA GEOLOGICAL & MINERALS EXPLORATION PTY
LTD
26,269,690
5.84%
23,448,312
5.21%
HONG KONG GONDWANA RESOURCES HOLDINGS LIMITED
21,247,501
4.72%
1
2
3
4
5
6
8
9
Phillip Perry
7 MR QIXIAN WU
Dr Caigen Wang
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
14,939,963
3.32%
10 CITICORP NOMINEES PTY LIMITED
11 Francis Harper
12 GOLDLAND MINERALS (AUSTRALIA) PTY LTD
13
14
15
CS THIRD NOMINEES PTY LIMITED
JSR NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
16 HAYES INVESTMENTS CO PTY LTD
17 MS JIAN ZHAO
18
MANDEL PTY LTD
19 BAMBA TAHI HENRI
19 YAO N'KANZA
20
WESTBURY HOLDINGS (NSW) PTY LTD
18,105,802
4.02%
16,871,269
3.75%
10,408,557
2.31%
10,218,593
2.27%
9,457,546
2.10%
8,022,983
1.78%
6,940,251
1.54%
6,548,245
1.46%
6,137,767
1.36%
5,641,934
1.25%
5,381,820
1.20%
3,700,000
0.82%
3,420,986
0.76%
3,420,986
0.76%
3,405,090
0.76%
Total
287,168,007
63.83%
Balance of register
162,702,449
36.17%
Grand total
449,870,456 100.00%
80
ASX ADDITIONAL INFORMATION (CONTINUED)
(d)
Securities Subject to Escrow
No securities are currently subject to any escrow provisions
(e) On-market Buy-Back
Currently there is no on-market buy-back of the Company’s securities.
(f)
Substantial Shareholders
Shareholders who hold 5% or more of the issued capital of the Company as per substantial shareholder
notices lodged with ASX are listed below.
Name
HONGKONG AUSINO INVESTMENT LTD
1832 ASSET MANAGEMENT LP
5013423 ONTARIO CORP
INNER MONGOLIA GEOLOGICAL & MINERALS
EXPLORATION PTY LTD
Number of Shares
Held
Percentage
Held
44,418,059
32,258,065
26,269,690
23,448,312
9.87%
7.17%
5.84%
5.21%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
21,549,305
5.47%
(g) Unquoted Equity Security Holders with Greater than 20% of an Individual Class
As at 25 September 2020 the following classes of unquoted securities had holders with greater than 20% of
the class on issue.
Options exercisable at 17.25¢ on or before 28 August 2022
Zenix Nominees Pty Ltd
Options exercisable at 20¢ on or before 31 December 2021
Francis Harper Pty Ltd
JSR Nominees Pty Ltd
Options exercisable at 25¢ on or before 31 December 2021
Caigen Wang
Options exercisable at 25¢ on or before 22 January 2022
Precambrian Pty Ltd
Mathieu Ageneau
Options exercisable at 30¢ on or before 22 January 2023
Hongkong Ausino Investment Ltd
Options exercisable at 20¢ on or before 16 January 2023
Hongkong Ausino Investment Ltd
Class C Performance Rights
Caigen Wang
Paul Kitto
81
% Interest
64.29%
40.74%
24.69%
21.38%
50.00%
50.00%
87.50%
100.00%
43.12%
33.17%
ASX ADDITIONAL INFORMATION (CONTINUED)
Corporate Governance
Pursuant to the ASX Listing Rules, the Company’s Corporate Governance Statement will be released in
conjunction with this report. The Company’s Corporate Governance Statement is available on the
Company’s website at: http://tietto.com/corporate-governance/
Appendix A – Schedule of Tenements as at 25 September 2020
Tenement ID
Status
Interest at
beginning of
quarter
Interest acquired
or disposed
Interest at end of
quarter
Côte d’Ivoire
Abujar North1
(Zahibo License)
Abujar Middle2
(Zoukougbeu License)
Abujar South
(Issia License)
Bongouanou North in
Cote D'Ivoire
Bongouanou South in
Cote D'Ivoire
Two Boundiali
tenements
Granted
Granted
15%
90%
Granted
100%
Granted
Granted
50%
50%
0%
0%
0%
0%
0%
In application
15%
90%
100%
50%
50%
1. Tietto has the right to acquire up to a 80% interest in the Abujar North Exploration License.
2. Tietto has 90% share capital of Tiebaya Gold which holds 100% interest of the Abujar Middle
Exploration License
Liberia
Dude South
Cestos Project
Granted
Granted
100%
100%
0%
0%
100%
100%
82