Annual Report
2021
ABN 38 126 200 280
1
Viking Mines Annual Report 2021 DIRECTORS
Michael Cox – Interim Non-Executive Chairman
Julian Woodcock – Managing Director and CEO
David Hall – Non-Executive Director
COMPANY SECRETARY
Sarah Wilson
REGISTERED OFFICE AND PRINCIPAL
PLACE OF BUSINESS
15-17 Old Aberdeen Place
West Perth WA 6005
Telephone: +61 8 6245 0870
SHARE REGISTER
Automic Pty Ltd
Level 5, 126 Philip Street
Sydney NSW 2000
Telephone: 1300 288 664 (within Australia)
Telephone: +61 2 9698 5414 (outside Australia)
Email: hello@automic.com.au
AUDITOR
Rothsay Auditing
Level 1, Lincoln House, 4 Ventnor Avenue
West Perth WA 6005
SOLICITORS
Automic Legal Pty Ltd
Level 5, Philip Street
Sydney NSW 2000
STOCK EXCHANGE LISTING
Viking Mines Limited shares are listed on the
Australian Securities Exchange (ASX : VKA)
WEBSITE
www.vikingmines.com
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement
can be found on the Company’s website:
www.vikingmines.com/investor-centre/
corporate-governance/
2
Viking Mines Annual Report 2021
CONTENTS
4
Chairman’s Letter
6
Review of Operations
15
Annual Mineral Resource Statement
19
Directors’ Report
32
Auditors’ Independence Declaration
34
Statement of Profit or Loss and Other
Comprehensive Income
35
Statement of Financial Position
36
Statement of Changes in Equity
37
Statement of Cash Flows
38
Notes to the Financial Statements
64
Independent Auditor’s Report
68
Shareholder Information
Viking Mines Annual Report 2021
3
CHAIRMAN’S LETTER
Dear Shareholders,
The last 12 months have been a transformative period for Viking Mines.
In November, the Company made a move into the Western Australian resources sector
through the strategic acquisition of 100% of the First Hit Gold Project (“First Hit”) from Red
Dirt Mining Pty Ltd.
First Hit is located 45km west of Menzies in the Eastern Goldfields and comprises the First
Hit Mine and numerous advanced exploration targets, each with the potential to be repeats
of the First Hit Mine. Significantly, prior to Viking’s ownership, no mining or exploration had
been undertaken on the project since 2002.
The First Hit mine is a historical underground operation with prospector mining records
stretching back to the 1930s. First Hit was subsequently drilled and developed by Barra
Resources between 2001 and 2002, with production reported to have been limited to
~30,000oz at 7.7g/t Au at a time of depressed gold prices sub-US$320oz.
The First Hit growth strategy has two objectives. Firstly, identify additional resources at the
First Hit mine by extending current mineralisation through successful exploration and
development of additional narrow vein, high-grade shoots. Secondly, project growth will
be delivered through expanding the current portfolio through targeted tenement
expansion and M&A, with a focus on mature assets with a defined development pathway.
Shortly after acquiring First Hit, the Board was delighted to appoint Julian Woodcock as
Chief Executive Officer. Julian is an experienced geologist, with 20 years of exploration and
development experience through previous roles with Evolution Mining and Gold Fields
Australia. Most recently, Julian was Exploration Manager for Gold Road Resources, where
he was responsible for leading a large gold exploration team and successfully discovered
new orebodies, defined 300,000oz of Indicated Resources and converted 1.3Moz from
Inferred to Indicated Resources at the Gruyere Gold Mine. Julian was also appointed
Managing Director in April.
The Company has taken a measured approach to exploration at First Hit, with a key focus
on understanding the geology and mineralisation of both the high-grade shoot at First Hit
and surrounding areas. The Company has completed two drill campaigns, a Diamond Drill
program which tested the historical workings and potential extensions of the deposit, and
an Air Core drill program which tested the tenement package to identify additional targets.
Importantly, both programs were successful in outlining key features of the mineralisation
and potential extensions and prospective targets outside of the current high-grade shoot.
The details from both programs played a key role in shaping a targeted and extensive
follow-up Reverse Circulation drilling programme which is due to commence in Q2 FY22.
This is an exciting programme for the Company and I look forward to its completion and
announcing the results in the coming months.
After having spent several years in litigation in Ghana seeking to obtain payment from the
sale of Akoase, it was pleasing to receive the final installment of US$3 million. However, the
matter is not finished as we await Court judgment and further receipt of a US$2 million
Viking Mines Annual Report 2021
4
4
Chairman’s Letter
royalty payment as well as costs and interest. The funds from the sale of Akoase further
strengthened our balance sheet and we are well placed to advance key exploration
activities well into FY2022.
Activities in Mongolia were discontinued during the year, with the prospect of obtaining
compensation from the Mongolian Government becoming less likely and activity became
more difficult with ongoing travel restrictions in place due to COVID-19. Whilst the same
travel restrictions have seen the exploration activity work in Ghana grind to a halt,
management continues to assess important data on the tenements to determine our next
step in Ghana.
I would like to take the time to thank Charles Thomas (Non-Executive Director) and
Raymond Whitten (Executive Chairman) who both resigned from their roles during the year.
Charles and Raymond were long-term members of the Board and played a critical role in
shaping the bright future of Viking. Charles and Raymond were focused on ensuring that
Viking secured the right long-term project, and a management team which has the
credentials to develop the project and generate long-term value for the Company’s
stakeholders. With First Hit now our flagship project and the management team in place,
Charles and Raymond have achieved what they set out to deliver and leave the Company
in a strong position. I would also like to thank Dean Jagger, who resigned as Company
Secretary to pursue a new opportunity. I, along with the rest of the Board, wish Charles,
Raymond and Dean all the best in their new endeavors and thank them for their tireless
work.
With the move of focus to Western Australia, we have relocated our company operations
to the State Capital City of Perth and have established a fit for purpose exploration office.
With this change, we have brought in several new team members. Dave Hall joins me on
the board as non-Executive Director and brings a wealth of experience in Corporate
Development. Sarah Wilson also joins us as Company Secretary and Colleen Handy as our
accountant. I would like to welcome all the new team members to Viking at this exiting time
in the Company’s development.
Finally, I was honored to be appointed as Non-Executive Chairman following Raymond’s
departure and believe the Company has the right team, asset and strategy in place to
continue its solid growth trajectory and deliver long-term shareholder value.
Yours sincerely,
Michael Cox
Acting Chairman
Viking Mines Annual Report 2021
5
REVIEW OF OPERATIONS
Operations during FY2021 have seen the primary focus of Viking Mines pivot towards
exploration in the Eastern Goldfields of WA and away from Africa and Mongolia. The initial
exploration activity has already yielded some exciting results which provides several key
targets for exploration activity in FY2022. Activities that have occurred over the previous
year at each location have been discussed below.
AUSTRALIA
First Hit Project, Western Australia.
On 26 November 20201, the Company entered into a conditional agreement to acquire
100% of Red Dirt Mining Pty Ltd, the owner of the First Hit high-grade gold project, located
150km north-west from Kalgoorlie in Western Australia (Figure 1). First Hit is in the Eastern
Goldfields of WA, situated along the Mt Ida greenstone belt and northern extensions of the
Zuleika shear zone.
Figure 1; Location map of the First Hit Project in the Eastern Goldfields of Western Australia.
Viking Mines Annual Report 2021
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6
Review of Operations
The acquisition of Red Direct Mining Pty Ltd was subsequently approved by Shareholders
at the extraordinary general meeting held on 29 January 20212.
The First Hit Project encompasses the historical high-grade First Hit gold mine and
numerous exploration targets on the surrounding tenure. Limited bedrock testing has been
completed along strike from the known mineralisation and no significant exploration
activity had been undertaken since operations ceased in December 2002.
CSA Global was engaged to support Viking with the rapid advancement of the First Hit
Project on completion of the acquisition. The Perth-based geosciences team are leading
practitioners in gold geology, structural understanding, and orebody knowledge, as well
as practical exploration knowledge.
Field activities started within 4 weeks of acquiring the project with Diamond Drilling
commencing on 26 February 20213 followed by AC drilling on 17 March 20214.
On 16 June 2021 the Company announced the completion of the diamond drill
programme encompassing 19 holes for 3,924m representing the inaugural diamond
drilling campaign and the first drilling in nearly 20 years to test the First Hit mineralisation.
The drill programme consisted of 2 phases, each with specific objectives. Phase 1 involved
15 holes (including one abandoned hole) for 3,283m, testing immediately in and around
the historical mine workings to expand an understanding of the geology and controls to
mineralisation. From these 15 holes, 11 attained target, testing the lode position. Two holes
hit old workings, one hole deviated above the identified plunge of the lode system and one
hole was abandoned shortly after collaring due to excessive deviation meaning it would
not reach the target zone.
Phase 2 consisted of a further 4 holes to north and south of the historic workings. This phase
drilled 641m with the primary objective of identifying additional mineralised shoots to
demonstrate the continuity of the First Hit structure. From this program, all holes
intersected the targeted structural position with shearing and quartz veining observed.
Both programmes have provided Viking with extensive data to review the project and plan
subsequent follow up drill programmes.
The first assays from the diamond drill programme were announced on 24 June 20215
returning a significant intercept in hole VDD012 grading 1m at 47.05g/t Au from 173m
with associated visible gold in the core. The distribution and tenor of gold grades received
reflected those observed in the historical data sets.
On 9 July 20216 and subsequent to the end of the financial year, the Company announced
visible gold sighted in two drillholes testing below the First Hit mine workings during a
follow up review post sampling (Figure 2). A further announcement was made on 23 July
20217 sighting visible gold in hole VDD016 located 165m north of the historic First Hit Mine
workings (Figure 3).
Viking Mines Annual Report 2021
7
Review of Operations
Figure 2; Visible gold seen in hole VDD015 at 302.8m depth downhole. Red circles denote where visible gold has
been seen. Close up images are of the gold seen in the core. Interval assays 0.5m at 71.64g/t Au from 302.8m8.
Figure 3; Photos of quartz vein with visible gold seen in HQ diamond core from hole VDD016 starting at 57.95m
depth down hole. Interval assays 1m at 13.52g/t Au from 57m. A; 20cm quartz vein (not true width) with visible gold
sighted in red circles, B-E; zoom in images showing gold in core at multiple positions in the vein7.
Viking Mines Annual Report 2021
8
Review of Operations
The remainder of the assay results for the diamond programme were announced on 30
August 20218. Results confirmed that drilling has successfully intersected significant, high-
grade mineralisation at depth including VDD013 delivering 5.0m at 3.67g/t Au including
1.0m at 11.16g/t Au and VDD015 delivering 7.06m at 5.93g/t Au, including 0.5m at
71.64 g/t Au (Figure 4).
The sighting of visible gold in 5 of the 11 holes reaching target, combined with the assay
results received, confirm both the presence of high-grade material remaining in the central
part of the First Hit mine workings (VDD012) and the depth extension potential of both the
Evans (VDD013 & VDD015) and Kylie (VDD009 & VDD014 lodes (Figure 4).
Most significantly is the intercept received in hole VDD016 delivering 1.0m at 13.52g/t Au
located 165m north of the historic mine workings and only 50m below surface. This hole is
outside of the current limits of drilling defining the First Hit mine and could represent an
additional shoot to the North (Figure 4). This result represents one of the key follow up
targets for Viking to pursue in FY2022.
Figure 4; Long section showing historic mine workings at First Hit, location of diamond drillholes completed by
Viking Mines Ltd and historical drill intercepts. Note the intercept in hole VDD016 ~165m north of the historic
mine workings.
On 19 August 2021 the Company announced that all outstanding gold and multielement
results had been received and the geological interpretation completed for the Company’s
Air Core (AC) drill programme undertaken on the First Hit Project. The Phase 1 AC
programme consisted of 328 holes for a total of 5,080m drilled with 2,482 samples
delivered to the laboratory. This programme was completed on time and budget and
Viking Mines Annual Report 2021
9
Review of Operations
achieved the objectives of testing key structures and stratigraphic coverage across the
contiguous tenure of the First Hit Project. Four follow up targets have been identified in
addition to the mineralisation identified along the First Hit trend. The Company will review
these targets for follow up activity in FY2022.
As a result of Viking’s exploration activity, gold mineralisation has been identified, both
along strike of the historical mine workings and at depth beneath the historical mine
workings. The opportunity to identify additional gold mineralisation will continue with
further exploration activity in FY2022, potentially leading to the discovery of new shoots as
part of the First Hit system.
Licencing
On 6 April 20219, the Company announced that the Western Australian Government
Department of Water and Environmental Regulation (DWER) had granted a ‘Licence to Take
Water’ (“the 5C licence” or “the licence”) to the Company under Regulation 5C of the Rights
in Water and Irrigation act of 1914. Securing the licence allows the Company to utilise the
water in the mine workings for specific site-based activities as well as commence the work
required to apply for a works approval to discharge water from the mine into the
environment. This is a key step in the process required to allow the company to move to
dewatering the mine should future activity demonstrate the economic potential of gold
extraction at First Hit.
GHANA
Akoase Gold Project
In June 2015 the Company executed a sale contract for the Akoase Gold Project for an
overall transaction value of USD$10 million, of which USD$8 million was to be paid in cash.
Of the cash component the Company was paid USD$5 million on sale execution. The
remaining USD$3 million was due by 31 December 2017 with a grace period until 31
January 2018 but was not paid by this date.
As announced on 22 October 201810, the Company’s lawyers in Ghana commenced
proceedings against Akoase Resources Limited, BXC Company Ghana Limited and Cheng
Yi. Since that time, the matter has been proceeding through the court process in the High
Court (Commercial Division) in Ghana.
During the reporting period, the case was allocated hearing dates on 5, 6 and 10 May 2021
in the High Court in Ghana. On the 17 June 202111, the Company was subsequently notified
the court had adjourned to hand down its judgement on 28 July 2021.
On 30 July 202112 and subsequent to the end of FY2021, the Company announced that
Viking’s subsidiary company Resolute Amansie Ltd (”RAL”) had confirmed that it received a
bank deposit of USD$3M from BXC Company Ghana Ltd. This amount does not cover the
full amount owed with costs and interest outstanding as well as an ongoing royalty due on
production from the Akoase Gold Project up to a maximum value of USD$2M.
On 11 August 202113, the Company announced that Resolute Amansie Ltd had utilised the
USD$3M received from BXC Company Ghana Ltd to part repay the intercompany loans
Viking Mines Annual Report 2021
10
Review of Operations
owed by RAL to Viking. Viking will continue to support RAL in recovering the outstanding
costs, interest, and royalty.
Akoase sale proceeds summary:
• USD$5 million – paid as at the end of the reporting period;
• USD$3 million – paid subsequent to the end of the reporting period; and
•
a further USD$2 million via royalties from production remain unpaid.
• Costs and interest to be determined by the court.
At the scheduled judgement hearing on 28 July 2021, the judge presiding over the case
deferred the date of judgement to 18 October 2021. The Company is continuing to pursue
its legally entitled costs, interest and royalty from the Akoase Gold Project.
Tumentu Gold Project
No on ground activity took place during the reporting period.
Following on from the drilling campaign that was completed at the project early in 2020,
the Board continues to review the Tumentu gold project to determine the next steps. The
Board will further consider this project in the coming months and will update the market on
its future plans for this project.
Butre Gold Project
No field activities took place during the reporting period.
Butre is located in the Ahanta West region of Ghana. The Company is conducting a review
on the project in consultation with its geological consultants in Ghana. The Board will
further consider this project in the coming months and will update the market on its future
plans for this project.
MONGOLIA
Subsequent to a review of operations in Mongolia, and with consideration to the
Company’s strategic growth and focus on First Hit and Ghana, the Board decided to move
away from the assets in Mongolia and to cease operations in the jurisdiction during the
reporting period.
As of the end of FY2021, the Company has stepped away from all operations in Mongolia.
Berkh Uul Coal Project
No on ground activity took place during the reporting period.
During the reporting period, Viking continued to seek resolution relating to changes to
boundaries of protected areas affecting the Berkh Uul prospecting license, introduced
under Long Name Law in 2010. The Company commenced action against the Mineral
Resources and Petroleum Authority of Mongolia in this regard (MRPAM). During the
reporting period, the Company received the written decision from the judge of the First
Instance Administrative Court. The Court resolved to invalidate the response of MRPAM
which refused to resolve the compensation request of the Company and uphold certain
Viking Mines Annual Report 2021
11
Review of Operations
parts of the Company's claim seeking compensation. MRPAM have appealed this decision
and the matter will be heard in the Appellate Court.
Khonkhor Zag Coal Project
No on ground activity took place during the reporting period.
CORPORATE
Capital Raising
On 26 November 202014, the Company announced it had received firm and binding
commitments in a placement to sophisticated and professional investors, raising $750,000
at $0.01c per fully paid ordinary share. This raising provided working capital to progress
the Red Dirt Mining projects. The shares were issued in two tranches: Tranche 1 was issued
on 7 December 2020; Tranche 2 was issued on 1 February 2021 after being approved at
the extraordinary general meeting held on 29 January 20212.
The Company also undertook a Rights Issue, with the Offer Booklet being dispatched to
Shareholders on 7 December 2020. The Rights Issue provided existing shareholders with
the opportunity to participate in a 1 for 4 (1 new Offer Share for every 4 existing Shares),
non-renounceable pro-rata entitlement offer, at the Issue Price of $0.01 per fully paid
ordinary share (Entitlement Offer). Following the completion of the Entitlement Offer,
including the shortfall, the Company raised a total of $784,294.64 (before costs) via the
issue of 78,429,464 Shares.
On 16 April 202115, the Company announced it had received firm and binding
commitments to raise $4,000,000 (before costs) through a placement of 111,111,111 fully
paid ordinary shares at $0.036 per Share in an oversubscribed offer. All shares were issued
on 22nd April 202116.
Board Changes
On 5 January 202117, Mr Julian Woodcock was appointed as Chief Executive Officer of the
Company.
Mr Woodcock is a highly respected geologist with 2 decades of experience in all aspects
of the extractive and mineral exploration industry and with direct association to notable
multimillion ounce gold discoveries. In his most recent role as Exploration Manager for
Gold Road Resources he led a large gold exploration team to discover new orebodies and
define 300 koz of Indicated Resources and also converted 1.3 Moz from Inferred to
Indicated Resources at the Gruyere gold mine. Previous appointments include Exploration
Manager for Evolution Mining in their Mungari Operations and also for Gold Fields Australia
at the St Ives Gold Mine.
Mr Woodcock has a proven history of successfully leading exploration teams discover and
develop new gold projects. Mr Woodcock has also held various international positions for
Gold Fields Ltd and Kinross Gold.
As announced on 22 April 202118, Mr Julian Woodcock was subsequently appointed to the
Board of the Company as Managing Director and Mr Charles Thomas resigned as Non-
Executive Director of the Company.
Viking Mines Annual Report 2021
12
Review of Operations
Performance Shares
As per the sale agreement made with the vendors of Red Dirt Mining Pty Ltd, 85,000,000
performance shares will vest on the achievement of 1 of 4 performance milestones. At the
date of signing of this report, none of the performance milestones have been achieved.
Corporate events subsequent to 30 June 2021
Board Changes
On 22 July 202119 the Company announced the appointment of Mr David Hall as Non-
Executive director. Mr Hall has 35 years industry experience, most recently working in
corporate development with large mining organisations including Newmont and Northern
Star. Mr Hall brings complimentary skills and experience to the Viking Board to support the
Company’s long-term growth and strategic objectives.
On 3 August 202120, the Company announced that Executive Chairman, Mr Ray Whitten
AM, had resigned effective immediately and current Non-Executive Director, Mr Michael
Cox had been appointed as interim non-executive Chairman, effective immediately. Mr Cox
is well placed to serve as interim Chair for Viking given his time working as a Non-Executive
director on the board. Viking will review the needs of the Company in due course after the
completion of the current and subsequent exploration phases at First Hit and ensure the
board composition retains the right mix of skill sets to ensure the future success of the
Company.
Corporate
On 26 July 202121, the Company announced the appointment of Ms Sarah Wilson as
Company Secretary and a change of Registered Office and Principal Place of Business. At
the same time, Mr Dean Jagger resigned as Company Secretary.
The Company’s new contact details are:
Registered Office: 15-17 Old Aberdeen Place, West Perth, WA 6005
Principal Place of Business: 15-17 Old Aberdeen Place, West Perth, WA 6005
No other material matters have occurred subsequent to the end of the year which requires
reporting on other than those which have been noted above or reported to ASX.
Viking Mines Annual Report 2021
13
Review of Operations
REFERENCES
1.
2.
3.
4.
5.
6.
7.
8.
9.
Refer ASX announcement titled “Acquisition of high-grade gold projects in Eastern Goldfields of Western Australia” on
26 November 2020.
Refer ASX announcement titled “Results of Extraordinary General Meeting” on 29 January 2021.
Refer ASX announcement titled “Viking commences diamond drilling at historic high-grade First Hit gold mine” on 26
February 2021.
Refer ASX announcement titled “Viking commences AC drilling across First Hit project tenements” on 17 March 2021.
Refer ASX announcement titled “Viking receives first diamond results & sights visible gold” on 24 June 2021.
Refer ASX announcement titled “Viking exploration update: visible gold sighted in drilling below mine workings” on 9
July 2021.
Refer ASX announcement titled “Viking sights visible gold in step out hole 165m north of historic First Hit mine workings”
on 23 July 2021.
Refer ASX announcement titled “Viking diamond drilling delivers high-grade results of up to 71g/t & identifies new
target” on 30 August 2021.
Refer ASX announcement titled “Viking advances dewatering strategy and obtains licence to take water from First Hit”
on 6 April 2021.
10. Refer ASX announcement titled “Akoase gold project outstanding payment - Update” on 22 October 2018.
11. Refer ASX announcement titled “Viking obtains judgement date for Ghana Litigation” on 17 June 2021.
12. Refer ASX announcement titled “Viking subsidiary receives payment of USD$3M as part of Ghana litigation” on 30 July
2021.
13. Refer ASX announcement titled “Viking receives USD$3M as part payment of intercompany loans” on 11 August 2021.
14. Refer ASX announcement titled “Acquisition of high-grade gold projects in Eastern Goldfields of Western Australia” on
26 November 2020.
15. Refer ASX announcement titled “Viking receives firm commitments for $4M in capital raise” on 16 April 2021
16. Refer ASX announcement titled “Cleansing Notice under section 708A of the Corporations Act” on 22 April 2021
17. Refer ASX announcement titled “Viking Mines appoints Chief Executive Officer to advance high-grade gold acquisition”
on 5 January 2021
18. Refer ASX announcement titled “Viking Mines appoints CEO Julian Woodcock as Managing Director” on 22 April 2021
19. Refer ASX announcement titled “Viking Mines appoints Non-Executive Director” on 22 July 2021
20. Refer ASX announcement titled “Viking resignation of chairman Ray Whitten AM & appointment of Michael Cox as
Interim Chair” on 22 July 2021
21. Refer ASX announcement titled “Change of Company Secretary and Company address” on 26 July 2021
Viking Mines Annual Report 2021
14
ANNUAL MINERAL RESOURCE STATEMENT
The Mineral Resources Statement for the Company, as at 30 June 2021 is summarised
below.
There has been no change to the Mineral Resource estimates for the Akoase Gold Project
or the Berkh Uul Coal Project compared to the previous financial year. However the
Company notes it has divested the Akoase Gold Project and ceased tenure to the Berkh
Uul Coal Project and will not report the associated Mineral Resource going forward.
AKOASE GOLD PROJECT, SOUTHERN GHANA, (VIKING 0% FOLLOWING
COMPLETION OF SALE)
An Inferred Mineral Resources estimate of 20.6 Mt @ 1.2 g/t Au for 790,000 ounces of
contained gold, at a 0.5 g/t Au cut-off was completed for the Akoase East deposit, as
announced to ASX in September 2013 (Table 1).
The Akoase East Mineral Resource estimate is based on geological, drilling and assay
information up to the end of August 2013. It includes approximately 10,000 metres of
historical Reverse Circulation (RC) drilling data, plus data from approximately 10,000
metres of RC and 3,000 metres of diamond drilling completed by Viking between 2010 and
2013.
Table
Inferred
(September 2013) - 0% interest by Viking following completion of sale
Akoase
(2012)
JORC
East
1:
Mineral
Resource
Estimate
TOTAL
Cut off (g/t Au)
Million tonnes
Au g/t
Oz Au (x 1,000)
0.4
0.5
0.75
1.0
21.6
20.6
16.9
12.0
1.2
1.2
1.3
1.5
BY WEATHERING TYPE
Oxide
800
790
710
570
Cut off (g/t Au)
Million tonnes
Au g/t
Oz Au (x 1,000)
0.4
0.5
0.75
1.0
Fresh
5.9
5.7
4.6
3.2
1.2
1.2
1.3
1.5
220
217
194
156
Cut off (g/t Au)
Million tonnes
Au g/t
Oz Au (x 1,000)
0.4
0.5
0.75
1.0
15.6
14.8
12.3
8.7
1.2
1.2
1.3
1.5
581
570
518
417
Ordinary Kriging whole block estimates using 25mE x 25mN x 10mRL parent block dimensions. Reported using
gold (Au) lower cut-off grades (preferred cut-off is 0.5 g/t Au). Using rounded figures in accordance with the
Australian JORC Code (2012) guidance on Mineral Resource Reporting.
Viking Mines Annual Report 2021
15
15
Annual Mineral Resources Statement
Competent Person
The Akoase East Mineral Resource estimate and associated report was completed by
internationally recognised resource consultants GHD Pty Ltd in September 2013. The
Mineral Resource estimate was reviewed by Mr Peter McMickan. At the time of review,
Mr McMickan was Viking’s Competent Person and was a full-time employee of Viking and
a Member of the Australasian Institute of Mining and Metallurgy, member number
105742.
At the time of review, Mr McMickan was responsible for the Akoase East Mineral
Resource estimation and had sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and for the activity to report a
mineral resource. At the time of review, Mr McMickan approved the Akoase East Mineral
Resource estimation as outlined in this report in accordance with the requirements of the
JORC Code (2012) and ASX Listing Rules.
The Company confirms that it is not aware of any new information or data that materially
affects the information included in the Mineral Resources Statement to the original
market release and, in the case of estimates of Mineral Resources, that all material
assumptions and technical parameters underpinning the estimates in the market
announcement continue to apply and have not materially changed. The Company
confirms that the form and context in which the Competent Person’s findings are
presented have not been materially modified from the original market announcement.
Post the end of the financial year, as announced on 30 July 2021, the Company
completed its divestment of the Akoase Gold Project.
BERKH UUL COAL PROJECT, NORTHERN MONGOLIA,
OWNERSHIP FOLLOWING CESSATION OF TENURE)
(VIKING 0%
An Indicated and Inferred coal Mineral Resource estimate, classified in accordance with
the JORC (2012) Code, for the Berkh Uul coal project was completed in March 2014. The
Mineral Resource estimate was completed by internationally recognised and qualified
consultancy group, RungePincockMinarco Ltd, and totals 38.3 Mt. Of this, 21.4Mt is
classified as Indicated and 16.9Mt classified as Inferred (Table 2). The coal is bituminous
in rank (ASTM classification) with average in situ quality as follows: Total Moisture 19.8%,
Calorific Value 5,323 kcal/kg (air dried basis, adb), Ash 15.5% (adb), and Total Sulphur
0.37% (adb) (Table 3).
Tables 2 and 3: Berkh Uul JORC (2012) Indicated and Inferred Resource Estimate (February 2014) - 0% interest
by Viking following cessation of tenure
Table 2: Berkh Uul JORC (2012) Coal Resource Tonnage (million tonnes in situ)
Resource type
Seam
Open Cut
Underground
1
2
OC subtotal
1
2
UG subtotal
Grand Total
Measured
-
-
-
-
-
-
-
Indicated
Inferred
Total
4.4
2.6
7
8.2
6.2
14.4
21.4
3.5
0.3
3.9
8.3
4.8
13.1
16.9
7.9
3
10.9
16.5
10.9
27.4
38.3
Sum of columns may not equal the total due to rounding
Viking Mines Annual Report 2021
16
Annual Mineral Resources Statement
Table 3: Berkh Uul JORC (2012) Coal Resource Quality
Resource type category Seam
TM
(%)
IM
(%)
Ash
(%
adb)
VM (%
adb)
FC (%
adb)
TS (%
adb)
20.8
21.0
20.9
18.9
20.9
19.1
1
2
subtotal
1
2
subtotal
13.5
13.7
13.6
12.0
13.8
12.1
OC subtotal 20.3 13.1
12.2
13.7
12.8
12.0
13.8
12.6
UG subtotal 19.6 12.7
19.8 12.8
1
2
subtotal
1
2
subtotal
18.9
20.9
19.7
18.7
21
19.6
14.4
9.8
12.7
20.1
10.0
19.2
15.0
18.8
10.3
15.2
19.6
10.6
16.3
15.7
15.5
32.6
34.9
33.4
30.9
34.5
31.2
32.6
31.3
33.9
32.4
31.0
33.8
32.0
32.2
32.3
39.5
41.6
40.3
37.1
41.7
37.5
39.3
37.8
42.0
39.6
37.4
41.8
39.0
39.3
39.3
0.34
0.35
0.34
0.37
0.37
0.37
0.35
0.34
0.42
0.37
0.35
0.43
0.38
0.38
0.37
Open Cut
Ind
Inf
Underground
Ind
Inf
Grand
Total
CV
(kcal/k
g adb)
5373
5693
5493
5011
5684
5066
5342
5110
5681
5355
5050
5657
5272
5313
5323
Rdis
1.35
1.31
1.33
1.39
1.32
1.38
1.35
1.38
1.32
1.35
1.39
1.32
1.36
1.36
1.35
Note: Air Dried Basis(adb); TM- total Moisture; IM-Inherent Moisture; VM-Volatile Matter; FC – Fixed Carbon; TS-
Total Sulphur; CV- Calorific Value; Rdis- in situ Relative Density. Sum of columns may not equal the total due to
rounding.
Competent Person
The competent person of the Berkh Uul Mineral Resource estimate and associated report
is Mr Brendan Stats, who is a professional geologist with over 10 years’ experience in mining
and mineral resource estimation. Mr Stats is a Senior Geologist of RungePincockMinarco
Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy member
number 311313.
Mr Stats is responsible for the Berkh Uul resource estimation and has sufficient experience
that is relevant to the style of mineralisation and type of deposit under consideration and
for the activity to report a mineral resource. Mr Stats has approved the Berkh Uul Mineral
Resource estimation as outlined in this annual report in accordance with the requirements
of the JORC Code (2012) and ASX Listing Rules.
The Company confirms that it is not aware of any new information or data that materially
affects the information included in the Mineral Resources statement released to the market
in an announcement on 13 October 2017 and, in the case of estimates of Mineral
Resources, that all material assumptions and technical parameters underpinning the
estimates in the market announcement continue to apply and have not materially changed.
The Company confirms that the form and context in which the Competent Person’s findings
are presented have not been materially modified from the original market announcement.
Viking Mines Annual Report 2021
17
Annual Mineral Resources Statement
Governance
A summary of the main governance arrangements and internal controls that Viking has put
in place with respect to its estimates of Mineral Resources and the estimation process
include use of industry standard drilling and sub-sampling techniques, a chain of custody
for sample integrity, use of standards, blanks and duplicates in sample analysis, internal
database validation and use of
independent resource
consultants with internal peer review of estimation assumptions and techniques. Should
external review of the resource estimates be required, the Company will engage a
Competent Person.
internationally recognised
The complete range of governance and internal controls for the Mineral Resource estimates
outlined above are included in Table 1 of ASX announcement dated 4 October 2013 for
the Akoase East Mineral Resource estimate, and Table 1 of ASX Announcement dated 17
March 2014 for the Berkh Uul Mineral Resource estimate.
Annual Mineral Resource Competent Person
The information in this report that relates to Mineral Resources is based on, and fairly
reflects, information compiled by Mr Julian Woodcock, a Competent Person, who is a
member of the Australasian Institute of Mining and Metallurgy (MAusIMM), from previous
Competent Persons reports for the respective projects referred to above, as overseeing the
Mineral Resource Estimates. Mr Woodcock is a member of the Australian Institute of Mining
and Metallurgy and is a Shareholder and Director of the Company. Mr Woodcock has
sufficient experience that is relevant to the styles of mineralisation and types of deposits
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 Woodcock consents to the inclusion in
the report of the matters based on his information in the form and context in which it
appears.
Forward Looking Statements: This document may include forward looking statements. Forward looking
statements may include, but are not limited to statements concerning Viking Mines Limited’s planned
exploration programs and other statements that are not historical facts. When used in this document, words
such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are
forward looking statements. Although Viking Mines Limited believes that its expectations reflected in these
forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance
can be given that actual results will be consistent with these forward
Viking Mines Annual Report 2021
18
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Viking Mines Limited (referred to hereafter as the 'Company' or 'parent entity') and the
entities it controlled at the end of, or during, the year ended 30 June 2021.
Directors
The following persons were Directors of Viking Mines Limited during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Michael Cox
Julian Woodcock
David Hall
Charles Thomas
Interim Non-Executive Chairman
Managing Director and CEO (appointed 22 April 2021)
Non-Executive Director (appointed 22 July 2021)
Non-Executive Director (resigned 22 April 2021)
Raymond Whitten AM
Executive Director and Chairman (resigned 3 August 2021)
Principal activities
The principal activity of the consolidated entity during the financial year was investment in mineral exploration projects.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $4,658,604 (30 June 2020: $710,959).
A more detailed review of operations is included in the Operations Report accompanying this annual report.
COVID-19
With the onset of the COVID-19 crisis in late March 2020, and in response to the global economic uncertainty caused by the
pandemic, the Company continues to implement measures to maintain low operational expenditure and reduce costs where
possible. These measures have assisted in mitigating the impact of COVID-19 on the Company’s activities.
COVID-19 has reduced the planned activities for the Company’s operations in Ghana and has impacted the timing of being
able to adequately assess the current projects in Ghana.
Acquisition of Red Dirt Mining Pty Ltd ('RDM')
On 26 November 2020, the Company announced that it had entered into a conditional share sale agreement to acquire 100%
of the issued capital in RDM. The acquisition of RDM was unanimously approved by Shareholders at the Extraordinary General
Meeting held 29 January 2021.
The acquisition of RDM is consistent with the Company's strategy of reviewing farm-in/acquisition opportunities to complement
its existing operations as well as offering the potential to build scale.
As consideration for 100% of the issued capital of RDM, the Company issued the RDM vendors 410 million consideration shares
and 85 million performance shares.
Board and Management
On 4 January 2021, Julian Woodcock was appointed CEO of the Company and on 22 April 2021, Julian Woodcock joined the
Board as Managing Director and CEO.
Charles Thomas resigned as a Non-Executive Director on 22 April 2021.
Capital Raising
In December 2020 to February 2021, the Company raised $1.5 million (less costs) with the issue of 153 million shares.
In April 2021, the Company raised $4.0 million (less costs) with the issue of 111 million shares.
8
19
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' report
30 June 2021
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
Ghana litigation
The Company's Ghanaian subsidiary, Resolute Amansie Ltd ('RAL') received USD 3 million on 29 July 2021 as part settlement
of costs owed from BXC Company Ghana Ltd, a defendant in the legal proceedings against the purchaser of the Akoase Gold
Project in Ghana. Ghana High Court has deferred judgement on the court case until 18 October 2021, however
the Company remains confident of a successful outcome of the case.
Change in Directorships
David Hall appointed Non-Executive Director on 22 July 2021. On 3 August 2021 Ray Whitten AM resigned as Executive
Chairman and Michael Cox was appointed as Interim Non-Executive Chairman.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
The Company continues to identify and evaluate new value-creating opportunities in the mining sector.
The Company continues its review of mineral project farm-in/acquisition opportunities with the objective of acquiring
resource assets that have the potential of being world class.
First Hit Project, Western Australia
The Company continued to progress the development of its First Hit Project during the reporting period. Refer to the detailed
Operations Review on page 6 of the Annual Report for a comprehensive overview.
Tumentu Gold Project, Ghana
The Company continues to assess the results of the drilling program completed, and will consider if any when and further
work will be completed on the project.
Butre Gold Project, Ghana
The Company is assessing if any when and work will be completed on the project.
Litigation Ghana
The Company is proceeding against the Purchaser of the Akoase project and the Guarantors seeking a further USD 2 million
in royalties from production together with interest and costs. The matter is progressing in the High Court of Ghana
(Commercial Division).
Environmental regulation
The consolidated entity is subject to significant environmental legal regulations in respect to its exploration and evaluation
activities in the countries where it holds tenements. There have been no known breaches of these regulations and principles.
9
20
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
Information on Directors
Name:
Title:
Experience and expertise:
Michael Cox
Interim Non-Executive Chairman
Mr Cox holds both a Bachelor of Science (Geology) degree from the University of Sydney
and a Bachelor of Laws degree from University of Technology, Sydney. He has run a
private corporate advisory services firm since 2008.
He commenced his career as a mining analyst for stockbroking firms followed by a role
being responsible for the delineation and grade control of a developing bentonite
deposit. He then moved into various board positions and corporate development roles
with a number of listed and unlisted public companies including NSX Ltd, CEAL Ltd,
Syngas Ltd, Benitec Ltd, Queensland Opals NL and Multi-E-Media Ltd.
Other current Directorships:
Former Directorships (last 3 years):
Interests in shares:
Interests in options:
Nil
Non-Executive Chairman of NSX Limited (ASX:NSX)
Nil
10,000,000
Name:
Title:
Julian Woodcock (appointed 22 April 2021)
Managing Director and CEO
Experience and expertise:
Mr Woodcock joined the Company as CEO on 4 January 2021.
Mr Woodcock is a Geologist and has over 20 years’ experience in all aspects of the
extractive and mineral exploration industry and has been directly associated with notable
multimillion once gold discoveries. In his former role as Exploration Manager for Gold
Road Resources he led a large exploration team to discover new orebodies and define
300 k oz of new Indicated Resources and converted 1.3 M oz from Inferred to Indicated
Resources at the Gruyere gold mine. Previous appointments include Exploration
Manager for Evolution Mining Mungari Operations and for Gold Fields Australia at the St
Ives Gold Mine as well as various international positions for Gold Fields Ltd and Kinross
Gold.
Mr Woodcock has a proven history of leading exploration teams which discover and
develop new gold projects.
Other current Directorships:
Former Directorships (last 3 years):
Interests in shares:
Interests in options:
Nil
Nil
5,000,000 (at date of appointment)
Nil
10
21
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
Name:
Title:
David Hall (appointed 22 July 2021)
Non-Executive Director
Experience and expertise:
Mr Hall is an accomplished Mining Professional with 35 continuous years of experience
in the gold and base metals sector. Notably, across the last 15 years Mr Hall has gained
extensive experience in Corporate Development, with large gold mining organisations,
including Newmont and Northern Star. He has been directly involved with transactions
of major gold deposits, notably Jundee and the Golden Mile in Western Australia and is
very familiar within the jurisdiction within which Viking is focussed.
Through his appointment to the Company as a Non-Executive Director, Mr Hall brings a
wealth of strong gold industry knowledge in the Australian, SE Asian, African and
European regions to Viking and provides additional complimentary skills to support the
direction and contribute to the development of the strategy of the Company.
Other current Directorships:
Former Directorships (last 3 years):
Interests in shares:
Interests in options:
Nil
Nil
Nil
Nil
Name:
Title:
Raymond Whitten AM
Executive Director and Chairman (resigned 3 August 2021)
Experience and expertise:
Mr Whitten was appointed a Director on 29 October 2014. Mr Whitten is an admitted
solicitor with over 48 years’ experience having previously acted as President of the City
of Sydney Law Society.
Mr Whitten holds a Bachelor of Arts and Bachelor of Laws from the University of Sydney,
a Master of Laws from the University of Technology, Sydney, is an accredited specialist in
business law and is a Notary Public.
Mr Whitten is an experienced investor with a wide range of investment interests and has
served as a Director of many private and public companies. In 2005 as Chairman of the
National Stock Exchange of Australia Limited (NSX) he was responsible for its successful
IPO on the ASX in 2005.
Previously, Mr Whitten served as Chairman of Whittens & McKeough, a boutique Sydney
law firm specialising in mergers and acquisitions and corporate law. Mr Whitten was
formerly the Deputy Chairman of the Safety, Return to Work and Support Board (a board
formed under statute responsible for determining the general policies and direction for
the following agencies: WorkCover NSW, Motor Accidents Authority NSW and Lifetime
Care and Support Authority NSW).
Mr Whitten was appointed as a Member of the Order of Australia on 8 June 2020 for
significant service to the law, particularly to legal reform and consumer protection.
Other current Directorships:
Former Directorships (last 3 years):
Interests in shares as at date of
resignation:
Interests in options as at date of
resignation:
Nil
Nil
57,407,881
10,000,000
11
22
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
Name:
Title:
Charles Thomas (resigned 22 April 2021)
Non-Executive Director
Experience and expertise:
Mr Thomas holds a Bachelor of Commerce from UWA majoring in Corporate Finance. Mr
Thomas is an Executive Director and Founding Partner of GTT a leading boutique
corporate advisory firm based in Australia.
Mr Thomas has worked in the financial service industry for more than 15 years and has
extensive experience in capital markets as well as the structuring of corporate
transactions. Mr Thomas has significant experience sitting on numerous ASX boards
spanning the mining, resources and technology space.
Mr Thomas’s previous directorships include among others AVZ Minerals Ltd (ASX:AVZ),
Liberty Resources Ltd (ASX:LBY), Force Commodities Limited (ASX:4CE) and Applabs
Technologies Ltd (ASX:ALA) where he was responsible for the sourcing and funding of
numerous projects. Mr Thomas is currently the Executive Chairman of Marquee
Resources Limited (ASX:MQR) and Non-Executive Director of Chase Mining Corporation
Limited (ASX:CML).
Executive Chairman of Marquee Resources Limited (ASX: MQR) since 2016
Non-Executive Director of Chase Mining Corporation Limited (ASX:CML) since 2018
Nil
55,075,000
10,000,000
Other current Directorships:
Former Directorships (last 3 years):
Interests in shares as at date of
resignation:
Interests in options as at date of
resignation:
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company Secretary
Sarah Wilson (appointed 26 July 2021)
Sarah has over 8 years’ experience in corporate advisory and corporate governance roles which have included managing equity
transactions, IPOs and RTOs, mergers and acquisitions, corporate restructures and due diligence investigations for boards of
ASX listed and unlisted companies. Additionally, Ms Wilson has managed and monitored internal corporate governance and
compliance plans and has a broad knowledge of the ASX Listing Rules and the Corporations Act.
Dean Jagger (resigned 26 July 2021)
Mr Jagger was Company Secretary from the beginning of the period until 23 July 2021.
Mr Jagger worked in the company secretarial division of Automic Group, a company that offers Legal, Registry, Company
Secretarial, Governance, Finance and Insurance services. Mr Jagger provided company secretarial and corporate compliance
services to several listed public and private companies and has over 10 years' experience in the financial services sector.
12
23
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2021, and the
number of meetings attended by each Director were:
Raymond Whitten
Charles Thomas (resigned 22 April 2021)
Michael Cox
Julian Woodcock (appointed 22 April 2021)
Directors' meetings
held
attended
11
10
11
2
11
10
11
2
David Hall was appointed on 22 July 2021, post the end of the financial year.
Held: represents the number of meetings held during the time the Director held office.
Remuneration report (audited)
This report outlines the remuneration arrangements in place for the key management personnel of Viking Mines Limited (the
“Company”) for the financial year ended 30 June 2021. The information provided in this remuneration report in relation to the
current financial year has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for key management personnel (“KMP”) who are defined as
those persons having authority and responsibility for planning, directing and controlling the major activities of the Company
and the consolidated entity, directly or indirectly, including any Director (whether Executive or otherwise) of the Company, and
includes all Executives of the Company and the consolidated entity.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Employment contracts/Consultancy agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the Company’s Executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aims to align executive reward with the creation of value for shareholders.
The key criteria for good reward governance practices adopted by the Board are:
●
●
●
●
●
Competitiveness and reasonableness
Acceptability to shareholders
Performance incentives
Transparency
Capital management
The framework provides a mix of fixed salary, consultancy agreement-based remuneration, and share based incentives.
The broad remuneration policy for determining the nature and amount of emoluments of Board members and senior Executives
of the Company is governed by the full Board. Although there is no separate remuneration committee the Board’s aim is to
ensure the remuneration packages properly reflect Directors and Executives duties and responsibilities. The Board assesses
the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant
employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention and
motivation of a high quality Board and Executive team.
13
24
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
The current remuneration policy adopted is that no element of any Director/Executive package be directly related to the
Company’s financial performance. Indeed there are no elements of any Director or Executive remuneration that are dependent
upon the satisfaction of any specific condition. The overall remuneration policy framework however is structured in an
endeavour to advance/create shareholder wealth.
Non-Executive Directors
Fees and payments to Non-Executive Directors reflect the demands which are made on, and the responsibilities of, the
Directors. Non-Executive Directors’ fees and payments are reviewed annually by the Board and are intended to be in line with
the market.
Directors’ fees
Non-Executive Directors receive a separate fixed fee for their services as Directors. The current Directors' fee pool is $500,000
per annum to be allocated at the discretion of the Board.
Retirement allowances for Directors
Apart from superannuation payments paid on salaries, there are no retirement allowances for Directors.
Executive pay
The Executive pay and reward framework has the following components:
●
●
Base pay and benefits such as superannuation
Long-term incentives through participation in employee equity issues
Base pay
All Executives are either full time employees or consultants that are paid on an agreed basis that have been formalised in
consultancy agreements.
Benefits
Apart from superannuation paid on Executive salaries there are no additional benefits paid to Executives.
Short-term incentives
There are no current short-term incentive remuneration arrangements.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following Directors of Viking Mines Limited:
●
●
●
●
Raymond Whitten
Charles Thomas (resigned 22 April 2021)
Michael Cox
Julian Woodcock (from his appointment as Managing Director and CEO 22 April 2021)
And the following person:
●
Julian Woodcock (appointed CEO on 4 January 2021 until reclassified as Executive Director on 22 April 2021 upon his
appointment as appointed Managing Director and CEO)
14
25
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
Short-term benefits
Post-
employmen
t benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
60,883
50,736
162,268
37,500
78,741
390,128
-
-
-
-
-
-
-
-
-
-
-
-
5,784
4,820
14,315
-
-
-
42,105
108,772
42,105
97,661
42,105
218,688
3,563
717
16,874
58,654
6,988
35,470
1,106
1,823
26,035
169,224
112,870
596,645
2021
Non-Executive Directors:
Michael Cox
Charles Thomas
(resigned 22 Apr 2021)
Executive Directors:
Raymond Whitten ^
Julian Woodcock
(from 22 Apr 2021) * ^
Other Key Management
Personnel:
Julian Woodcock
(from 4 Jan 2021 to 22 Apr
2021) * ^
*
Julian Woodcock is classified as 'Other KMP' from his appointment date as CEO on 4 January 2021 until 22 April 2021. Mr
Woodcock is classified as an Executive Director upon his appointment as Managing Director and CEO from 22 April 2021.
The above table pro-ratas Mr Woodcock's remuneration between his time as Executive Director and his time as Other
KMP.
Mr Woodcock's $42,909 total equity-settled shares relate to amortisation of the expected value of 4,000,000 shares to be
issued, subject to Shareholder approval, upon completion of his continuous employment to 30 November 2021.
^
Cash salary and fees include the movement in annual leave provision and long-service leave provision for all KMPs
excluding Non-Executive Directors.
Short-term benefits
Post-
employmen
t benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
68,583
60,883
164,370
293,836
-
-
-
-
-
-
-
-
5,784
5,784
14,315
25,883
-
-
-
-
-
-
-
-
74,367
66,667
178,685
319,719
2020
Non-Executive Directors:
Michael Cox
Charles Thomas
Executive Directors:
Raymond Whitten ^
^
Raymond Whitten's 30 June 2020 remuneration includes an amount of $165,000 salary (including superannuation) plus
an amount of $13,685 to indicate the movement in his annual leave provision in accordance with the Corporations
Regulations.
15
26
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Michael Cox
Charles Thomas
Executive Directors:
Raymond Whitten
Julian Woodcock (from 22 Apr
2021)
Other Key Management
Personnel:
Julian Woodcock (from 4 Jan
2021 to 22 Apr 2021)
Fixed remuneration
2020
2021
At risk - STI
At risk - LTI
2021
2020
2021
2020
61%
57%
81%
72%
76%
100%
100%
100%
-
-
-
-
-
27%
23%
-
-
-
-
-
39%
43%
19%
1%
1%
-
-
-
-
-
Refer to note 25 for related party transactions.
Employment contracts/Consultancy agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of
these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Raymond Whitten
Executive Director and Chairman
2 October 2018
(a) Remuneration: fixed annual salary $165,000 including employer superannuation
guarantee contribution and any fringe benefit tax payable;
(b) Non-cash benefits: the Executive may also be eligible to receive an annual bonus
upon satisfaction of performance indicators to be agreed between the Board and the
Executive.
(c) Termination: the Company and Mr Raymond Whitten may terminate the Executive
Director and Chairman Agreement without cause by giving the other party one month
notice.
16
27
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
Name:
Title:
Agreement commenced:
Term of agreement:
Julian Woodcock
Managing Director and CEO
4 January 2021
(a) Remuneration: fixed annual salary $225,000 plus employer superannuation guarantee
contribution;
(b) Non-cash benefits:
- Upon completion of continuous employment to 30 November 2021 and subject to
shareholder approval, Mr Woodcock or his nominee will receive 4,000,000 shares in the
Company;
- upon achievement of completion of each performance milestones and subject to
shareholder approval, Mr Woodcock will receive 4,000,000 performance shares in the
Company for each milestone achieved, with the maximum being 20,000,000
performance shares for the five milestone conditions;
(c) Termination: the Company and Mr Woodcock may terminate the employment at any
time by giving 3 months' notice in writing.
Share-based compensation
Issue of shares
Per Julian Woodcock's Executive Service Agreement as Chief Executive Officer commencing 4 January 2021, the following
share tranches are available to Mr Woodcock:
- upon completion of continuous employment to 30 November 2021 and subject to shareholder approval, Mr Woodcock or his
nominee will receive 4,000,000 shares in the Company; and
- upon achievement of completion of each performance milestones and subject to shareholder approval, Mr Woodcock will
receive 4,000,000 performance shares in the Company for each milestone achieved, with the maximum being 20,000,000
performance shares for the five milestone conditions.
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and other key
management personnel in this financial year or future reporting years are as follows:
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
29 November 2018
27 November 2020
06 Dec 2018
15 Dec 2020
06 Dec 2021
15 Dec 2022
$0.030
$0.030
$0.008
$0.008
Fair value
per option
Name
Raymond Whitten
Charles Thomas
Michael Cox
Raymond Whitten
Charles Thomas
Michael Cox
Number of
options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
5,000,000 29 Nov 2018
5,000,000 29 Nov 2018
5,000,000 29 Nov 2018
5,000,000 27 Nov 2020
5,000,000 27 Nov 2020
5,000,000 27 Nov 2020
06 Dec 2018
06 Dec 2018
06 Dec 2018
15 Dec 2020
15 Dec 2020
15 Dec 2020
06 Dec 2021
06 Dec 2021
06 Dec 2021
15 Dec 2022
15 Dec 2022
15 Dec 2022
$0.030
$0.030
$0.030
$0.030
$0.030
$0.030
$0.008
$0.008
$0.008
$0.008
$0.008
$0.008
Options granted carry no dividend or voting rights.
17
28
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
The number of options over ordinary shares granted to and vested by Directors and other key management personnel as part
of compensation during the year ended 30 June 2021 are set out below:
Name
Raymond Whitten
Charles Thomas
Michael Cox
Number of
options
granted
during the
year
2021
Number of
options
granted
during the
year
2020
Number of
options
vested
during the
year
2021
Number of
options
vested
during the
year
2020
5,000,000
5,000,000
5,000,000
-
-
-
5,000,000
5,000,000
5,000,000
-
-
-
Values of options over ordinary shares granted, exercised and lapsed for Directors and other key management personnel as
part of compensation during the year ended 30 June 2021 are set out below:
Name
Raymond Whitten
Charles Thomas
Michael Cox
Value of
options
granted
during the
year
$
Value of
options
exercised
during the
year
$
Value of
options
lapsed
during the
year
$
Remuneration
consisting of
options
for the
year
%
42,105
42,105
42,105
-
-
-
-
-
-
19%
43%
39%
Details of options over ordinary shares granted, vested and lapsed for Directors and other key management personnel as part
of compensation during the year ended 30 June 2021 are set out below:
Name
Grant date
Vesting date
Number of
options
granted
Value of
options
granted
$
Value of Number of
options
vested
$
options
lapsed
Value of
options
lapsed
$
Raymond Whitten 27 Nov 2020
27 Nov 2020
Charles Thomas
27 Nov 2020
Michael Cox
15 Dec 2020
15 Dec 2020
15 Dec 2020
5,000,000
5,000,000
5,000,000
42,105
42,105
42,105
42,105
42,105
42,105
-
-
-
-
-
-
Additional information
The earnings of the consolidated entity for the five years to 30 June 2021 are summarised below:
2021
$
2020
$
2019
$
2018
$
2017
$
Profit/(loss) after income tax
(3,965,419)
(710,959)
(496,472)
1,686,868
(3,481,078)
2021
2020
2019
2018
2017
Share price at financial year end ($)
$0.029
$0.007
$0.010
$0.025
$0.012
2021
2020
2019
2018
2017
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
(0.78)
(0.78)
(0.23)
(0.23)
(0.16)
(0.16)
0.54
0.54
(1.21)
(1.21)
18
29
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each Director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
Raymond Whitten
Charles Thomas (resigned 22 April 2021)*
Michael Cox
Julian Woodcock
Balance at
the start of
the year
Received
as part of
remuneration
45,926,307
9,000,000
-
-
54,926,307
-
-
-
-
-
Additions
11,481,574
46,075,000
-
5,000,000
62,556,574
Disposals/
other
Balance at
the end of
the year
57,407,881
-
55,075,000
-
-
-
-
5,000,000
- 117,482,881
*
The balance at the end of the year represents the balance at date of resignation
Option holding
The number of options over ordinary shares in the Company held during the financial year by each Director and other members
of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Options over ordinary shares
Raymond Whitten
Charles Thomas (resigned 22 April 2021)*
Michael Cox
Julian Woodcock
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
5,000,000
5,000,000
5,000,000
-
15,000,000
5,000,000
5,000,000
5,000,000
-
15,000,000
-
-
-
-
-
-
-
-
-
-
10,000,000
10,000,000
10,000,000
-
30,000,000
*
The balance at the end of the year represents the balance at date of resignation
Options over ordinary shares
Raymond Whitten
Charles Thomas (resigned 22 April 2021)*
Michael Cox
Vested and
exercisable unexercisable
Vested and
Balance at
the end of
the year
10,000,000
10,000,000
10,000,000
30,000,000
-
-
-
-
10,000,000
10,000,000
10,000,000
30,000,000
*
The balance at the end of the year represents the balance at date of resignation
This concludes the remuneration report, which has been audited.
Shares under option
Outstanding share options at the date of this report are as follows:
Grant date
Expiry date
Exercise
price
Number
under option
29 November 2018
27 November 2020
Exercisable on or before 6 December 2021
Exercisable on or before 15 December 2022
$0.030
$0.030
15,000,000
15,000,000
19
30,000,000
30
Viking Mines Annual Report 2021
DIRECTORS’ REPORT
30 June 2021
Viking Mines Limited
Directors' Report
30 June 2021
No option holder has any right under the options to participate in any other share issue of the Company or any other controlled
entity.
Shares issued on the exercise of options
During the current financial year there were no shares issued upon the exercise of options.
Indemnity and insurance of officers
During the financial period the Company has paid premiums in respect of a contract insuring all Directors and officers of the
Company and its controlled entities against liabilities incurred as Directors or officers to the extent permitted by the
Corporations Act 2001. Due to a confidentiality clause in the contract the amount of the premium has not been disclosed.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the Company who are former partners of Rothsay Auditing
There are no officers of the Company who are former partners of Rothsay Auditing.
Auditor's independence and non-audit services
Section 307C of the Corporations Act 2001 requires our auditors, Rothsay Auditing, 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 the
next page and forms part of this Directors’ report for the year ended 30 June 2020.
Auditor
Rothsay Auditing continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Michael Cox
Interim Non-Executive Chairman
30 September 2021
20
31
Viking Mines Annual Report 2021
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Viking Mines Limited for the year ended 30 June 2021, I
declare that, to the best of my knowledge and belief, there have been:
•
•
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Viking Mines Limited and the entities it controlled during
the year.
Rothsay Auditing
Donovan Odendaal
Partner
30 September 2021
Liability limited by a scheme approved under Professional Standards Legislation
ANNUAL FINANCIAL STATEMENTS
CONTENTS
34
Statement of Profit or Loss and Other Comprehensive Income
35
Statement of Financial Position
36
Statement of Changes in Equity
37
Statement of Cash Flows
38
Notes to the Financial Statements
64
Independent Auditor’s Report
68
Shareholder Information
GENERAL INFORMATION
The financial statements cover Viking Mines Limited (‘the Company’) as a consolidated entity
consisting of Viking Mines Limited and the entities it controlled at the end of, or during, the year
(‘the consolidated entity’). The financial statements are presented in Australian dollars, which
is Viking Mines Limited’s functional and presentation currency. The functional currencies of the
Company’s foreign subsidiaries are United States Dollar (‘USD’).
Viking Mines Limited is a listed public Company limited by shares, incorporated and domiciled in
Australia. Its registered office is and principal place of business is:
15-17 Old Aberdeen Place
West Perth WA 6005
A description of the nature of the consolidated entity’s operations and its principal activities are
included in the Directors’ report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on
30 September 2021. The Directors have the power to amend and reissue the financial statements.
Viking Mines Annual Report 2021
33
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
Viking Mines Limited
For the year ended 30 June 2021
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2021
Revenue
Expenses
Audit fees
Consultancy costs
Employee benefits expense
Superannuation expense
Depreciation and amortisation expense
Impairment of other assets
Impairment of exploration and evaluation asset
Foreign exchange gain (loss)
Share-based payment expense
Expenses relating to RDM acquisition
Expenses relating to exploration and evaluation
Other expenses
Loss before income tax expense
Income tax expense
Consolidated
Note
2021
$
2020
$
4
152,375
54,280
21
9
10
18
(201,144)
(238,419)
(405,875)
(35,469)
(2,230)
(10,638)
(694,545)
(112,448)
(169,224)
(356,879)
(2,277,508)
(306,600)
(26,210)
(100,724)
(236,136)
(25,883)
-
-
(299,660)
49,271
-
-
-
(125,897)
(4,658,604)
(710,959)
5
-
-
Loss after income tax expense for the year attributable to the owners of Viking
Mines Limited
16
(4,658,604)
(710,959)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year, net of tax
7,889
(128,923)
7,889
(128,923)
Total comprehensive income for the year attributable to the owners of Viking
Mines Limited
(4,650,715)
(839,882)
Basic earnings per share
Diluted earnings per share
Cents
Cents
31
31
(0.78)
(0.78)
(0.23)
(0.23)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
23
34
Viking Mines Annual Report 2021
STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
Viking Mines Limited
Statement of Financial Position
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Other receivables
Other
Total current assets
Non-current assets
Right-of-use assets
Exploration and evaluation
Other
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Employee benefits
Lease liabilities
Total current liabilities
Non-current liabilities
Employee benefits
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Equity attributable to the owners of Viking Mines Limited
Non-controlling interest
Total equity
Consolidated
Note
2021
$
2020
$
6
7
8
9
10
8
11
12
13
12
13
14
15
16
3,076,877
221,694
54,063
3,352,634
1,417,196
6,199
3,578
1,426,973
185,627
4,100,000
85,667
4,371,294
-
664,340
-
664,340
7,723,928
2,091,313
752,514
44,745
58,380
855,639
2,011
136,118
138,129
150,239
22,378
-
172,617
-
-
-
993,768
172,617
6,730,160
1,918,696
31,830,027
(359,387)
(23,999,255)
7,471,385
(741,225)
22,537,072
(536,500)
(19,340,651)
2,659,921
(741,225)
6,730,160
1,918,696
The above statement of financial position should be read in conjunction with the accompanying notes
24
35
Viking Mines Annual Report 2021
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2021
Viking Mines Limited
Statement of Changes in Equity
For the year ended 30 June 2021
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total equity
$
Balance at 1 July 2019
22,537,072
(407,577)
(18,629,692)
(741,225)
2,758,578
Loss after income tax expense for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income for the year
-
-
-
-
(710,959)
(128,923)
-
(128,923)
(710,959)
-
-
-
(710,959)
(128,923)
(839,882)
Balance at 30 June 2020
22,537,072
(536,500)
(19,340,651)
(741,225)
1,918,696
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Non-
controlling
interest
$
Total equity
$
Balance at 1 July 2020
22,537,072
(536,500)
(19,340,651)
(741,225)
1,918,696
Loss after income tax expense for the year
Other comprehensive income for the year, net
of tax
Total comprehensive income for the year
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
(note 14)
Share-based payments (note 32)
Issue of equity to the vendors of Red Dirt Mining
Pty Ltd (RDM) as consideration for 100% of the
issued share capital of RDM (note 14 and note
30)
-
-
-
-
(4,658,604)
7,889
-
7,889
(4,658,604)
5,192,955
-
-
169,224
4,100,000
-
-
-
-
-
-
-
-
-
-
(4,658,604)
7,889
(4,650,715)
5,192,955
169,224
4,100,000
Balance at 30 June 2021
31,830,027
(359,387)
(23,999,255)
(741,225)
6,730,160
The above statement of changes in equity should be read in conjunction with the accompanying notes
25
36
Viking Mines Annual Report 2021
STATEMENT OF CASH FLOWS
For the year ended 30 June 2021
Viking Mines Limited
Statement of Cash Flows
For the year ended 30 June 2021
Cash flows from operating activities
Payments to suppliers and employees
Interest received
ATO COVID-19 cash flow boost received
ATO fuel rebate received
Consolidated
Note
2021
$
2020
$
(3,324,716)
636
48,965
19,285
(458,288)
21,218
34,975
-
Net cash used in operating activities
29
(3,255,830)
(402,095)
Cash flows from investing activities
Payments for exploration and evaluation
Payments for security deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Net cash from financing activities
10
8
(30,205)
(132,042)
(489,083)
-
(162,247)
(489,083)
14
14
5,534,296
(341,341)
5,192,955
-
-
-
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
1,774,878
1,417,196
(115,197)
(891,178)
2,388,027
(79,653)
Cash and cash equivalents at the end of the financial year
6
3,076,877
1,417,196
The above statement of cash flows should be read in conjunction with the accompanying notes
26
37
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 1. 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.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
The consolidated entity has incurred net losses after tax of $4,658,604 (2020: $710,959) and net cash outflows from operations
of $3,255,830 (2020: $402,095) for the year ended 30 June 2021. At year end, cash and cash equivalents were $3,076,877
(2020: $1,417,196). As the consolidated entity is in the exploration stage and does not generate operating cash inflows,
the consolidated entity is dependent on further capital raises or external financing to maintain operations.
During the period ended 30 June 2021, raised $5.534 million through equity issuances to fund the ongoing exploration
program in Western Australia. While the Company has the ability to reduce costs, this would be at the expense of the
exploration program, and as a result this is not the current intention of the consolidated entity.
The Directors have assessed that the consolidated entity is and will remain a going concern and believes that the going concern
basis of preparation of the accounts is appropriate, however is subject to consolidated entity’s ability to implement the following
potential actions:
●
●
●
●
scale back or deferral of exploration expenditure;
deferral of discretionary operating and capital expenditures if required;
raising equity funds in capital markets, based on a history of successful equity raisings; and
raising of debt funding if required.
Should the consolidated entity not be successful in managing its cashflow through the above means, there may be uncertainty
whether the consolidated entity would continue as a going concern and therefore whether it would realise its assets and
extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The financial report
does not include adjustments relating to the recoverability or classification of the recorded asset amounts or to the amounts or
classification of liabilities that might be necessary should the consolidated entity not be able to continue as a going concern.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued
by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation
of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive
income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management
to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 26.
27
38
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 1. Significant accounting policies (continued)
Basis of consolidation
The consolidated financial statements comprise the financial statements of Viking Mines Limited and its controlled entities as at
30 June 2021 (the consolidated entity).
The financial statements of the controlled entities are prepared for the same reporting period as the Parent, using consistent
accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit
and losses resulting from intercompany transactions have been eliminated in full. Controlled entities are fully consolidated from
the date on which control is transferred to the Company and cease to be consolidated from the date on which control is
transferred out of the Company. Control exists where the Company has the power to govern the financial and operating policies
of an entity so as to obtain benefits from its activities.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when
the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Viking Mines Limited's functional and presentation
currency. The functional currencies of the Company's foreign subsidiaries are United States Dollars ('USD').
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates,
which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are
recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
The consolidated entity recognises revenue as follows:
Interest income
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net
carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
28
39
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 1. Significant accounting policies (continued)
Government grants
Government grant income is recognised when it is received or when the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated
entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months
after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it
is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash
equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial
position.
Trade and other receivables
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end
of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for
any remeasurement of lease liabilities.
29
40
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 1. Significant accounting policies (continued)
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss
as incurred.
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically
recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written
off in the year in which the decision is made.
Exploration and evaluation expenditure
Exploration costs are expensed as incurred.
The costs relating to the Ghana operations were capitalised from 1 July 2018 to 31 December 2020. During this period the
Ghana operations were considered to be active exploration activities. From 1 January 2021 the board has determined that the
Ghana operations have ceased to be considered active exploration activities.
Acquisition costs are accumulated in respect of each separate area of interest. Acquisition costs are carried forward where right
of tenure of the area of interest is current and they are expected to be recouped through the sale or successful development
and exploitation of the area of interest or, where exploration and evaluation activities in the area of interest have not yet reached
a stage that permits reasonable assessment of the existence of economically recoverable reserves.
When an area of interest is abandoned or the Directors’ decide that it is not commercial, any accumulated acquisition costs in
respect of that area are written off in the financial period and accumulated acquisition costs written off to the extent that they
will not be recovered in the future. Amortisation is not charged on acquisition costs carried forward in respect of areas of interest
in the development phase until production commences.
Impairment of deferred exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically
recoverable reserves. Where a project or an area of interest has significant uncertainty regarding its value, the uncertain
recoverability is impaired in the year in which the decision is made.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds
its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating
unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating
unit.
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to
the consolidated entity prior to the end of the financial period that are unpaid and arise when the consolidated entity becomes
obliged to make future payments in respect of the purchase of these goods and services.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
30
41
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 1. Significant accounting policies (continued)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to the
reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or 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 grant 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, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of any
other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to settle
the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are
considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of
the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is
recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is
treated as if they were a modification.
31
42
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 1. Significant accounting policies (continued)
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date; and assumes that the transaction will take place either: in the principal market;
or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best
use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Viking Mines Limited, 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 financial 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.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2021. The consolidated
entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the
consolidated entity, are set out below.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and early
adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new guidance on
measurement that affects several Accounting Standards. Where the consolidated entity has relied on the existing framework in
determining its accounting policies for transactions, events or conditions that are not otherwise dealt with under the Australian
Accounting Standards, the consolidated entity may need to review such policies under the revised framework. At this time, the
application of the Conceptual Framework is not expected to have a material impact on the consolidated entity's financial
statements.
32
43
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 2. Critical accounting judgements, estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events.
The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
certain assets and liabilities within the next annual reporting period are:
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the consolidated entity based on known information. This consideration extends to the nature of the products and services
offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as
addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements
or any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as
at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-
Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of
assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible
assets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may
lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value
less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to
these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
Note 3. Operating segments
The consolidated entity is organised into one operating segment: the resources sector in three geographical locations - Ghana,
Mongolia and Western Australia. These operating segments are based on the internal reports that are reviewed and used by
the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in
determining the allocation of resources. Accordingly, under the management approach outlined only one operating segment
has been identified and no further disclosures are required.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for
internal reporting to the CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
33
44
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the financial statements
30 June 2021
Note 4. Revenue
ATO COVID-19 cash flow boost
ATO fuel rebate
Other income
Interest revenue
Revenue
Note 5. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 26% (2020: 27.5%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Impairment of assets
Share-based payments
Foreign exchange movement
Cash flow boost income not assessable
Other net expenses (deductible)/not deductible for tax purposes
Current year tax losses not recognised
Income tax expense
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 25% (2020: 26%)
Consolidated
2021
$
2020
$
48,965
23,485
79,289
636
34,975
-
-
19,305
152,375
54,280
Consolidated
2021
$
2020
$
(4,658,604)
(710,959)
(1,211,237)
(195,514)
183,928
43,998
42,046
(12,731)
74,077
82,407
-
16,748
(9,618)
(6,430)
(879,919)
879,919
(112,407)
112,407
-
-
Consolidated
2021
$
2020
$
6,179,139
2,794,836
1,544,785
726,657
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.
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Employee benefits
Accrued expenses
Total deferred tax assets not recognised
Consolidated
2021
$
2020
$
12,157
2,600
6,154
4,125
14,757
10,279
34
45
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 5. Income tax expense (continued)
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been recognised in
the statement of financial position as the recovery of this benefit is uncertain.
Note 6. Cash and cash equivalents
Current assets
Cash at bank
Note 7. Other receivables
Current assets
Other receivables
BAS receivable
Note 8. Other
Current assets
Prepayments
Security deposits
Non-current assets
Security deposits
Consolidated
2021
$
2020
$
3,076,877
1,417,196
Consolidated
2021
$
2020
$
613
221,081
1,147
5,052
221,694
6,199
Consolidated
2021
$
2020
$
7,688
46,375
3,578
-
54,063
3,578
85,667
-
139,730
3,578
35
46
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 9. Right-of-use assets
Non-current assets
Lease contract - right-of-use asset
Less: Accumulated depreciation
The lease contract relates to the Perth office principal place of business.
Note 10. Exploration and evaluation
Non-current assets
Exploration and evaluation capitalised asset
Less: Accumulated amortisation
Less: Impairment
Exploration and evaluation acquired WA tenement assets
Consolidated
2021
$
2020
$
187,857
(2,230)
185,627
-
-
-
Consolidated
2021
$
2020
$
3,244,205
(2,250,000)
(994,205)
-
3,214,000
(2,250,000)
(299,660)
664,340
4,100,000
-
4,100,000
664,340
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Western
Australia
Mongolia –
Khonkhor Zag
Gold Project Coal Project Coal Project Gold Project Gold Project
$
Mongolia -
Berkh Uul
Ghana –
Tumentu
Ghana –
Akoase
$
$
$
$
Total
$
Consolidated
Balance at 1 July 2019
Additions
Impairment charge
Balance at 30 June 2020
Additions through purchase of
WA tenement assets *
Impairment charge
-
-
-
-
4,100,000
Balance at 30 June 2021
4,100,000
288,874
-
(288,874)
10,786
-
(10,786)
-
-
-
-
-
-
36
-
-
-
-
-
-
175,257
489,083
-
474,917
489,083
(299,660)
664,340
664,340
30,205
(694,545)
4,130,205
(694,545)
-
4,100,000
47
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 10. Exploration and evaluation (continued)
* WA tenement assets
On 26 November 2020, the Company announced that it had entered into a conditional share sale agreement to acquire
100% of the issued capital in Red Dirt Mining Pty Ltd ('RDM'). The acquisition of RDM was unanimously approved by
Shareholders at the Extraordinary General Meeting held 29 January 2021.
As consideration for 100% of the issued capital of RDM, the Company issued the RDM vendors 410million consideration
shares and 85 million performance shares.
The 85 million performance shares shall vest and convert into VKA company shares on a one-for-one basis subject to the
achievement of one of the four agreed milestones within five years from their date of issue. Management have assessed
the probability of the agreed milestones to be 0% as at 30 June 2021. Accordingly, the performance share value has not
been recognised in the acquisition value of WA tenement assets.
The acquisition of the WA tenement assets is consistent with the Company's strategy of reviewing farm-in/acquisition
opportunities to complement its existing operations as well as offering the potential to build scale.
The recoupment of exploration project acquisition costs carried forward is dependent upon the recoupment of costs through
successful development and commercial exploitation, or alternatively by sale of the respective areas.
The Mongolian assets were impaired to nil in the year ended 30 June 2020. There continues to be no acceptable offers for the
project during the reporting period and no expectation of any change in this position.
Note 11. Trade and other payables
Current liabilities
Trade payables
Accrued expenses
Other payables
Refer to note 19 for further information on financial instruments.
Note 12. Employee benefits
Current liabilities
Employee benefits
Non-current liabilities
Employee benefits
Consolidated
2021
$
2020
$
292,100
437,538
22,876
95,162
39,790
15,287
752,514
150,239
Consolidated
2021
$
2020
$
44,745
22,378
2,011
-
46,756
22,378
Provision for employee benefits represents amounts accrued for annual leave and long service leave.
37
48
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 12. Employee benefits (continued)
The current portion of this provision includes the total amount accrued for annual leave entitlements; the amounts accrued for
long service leave entitlements that have vested due to employees having completed the required period of service; and also
those where employees are entitled to long service leave pro-rata payments in certain circumstances.
Provision for non-current employee benefits represents amounts accrued for long service leave entitlements that have not
vested due to employees not having completed the required period of service.
Based on past experience, the consolidated entity does not expect the full amount of annual leave or long service leave
balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as
current liabilities since the consolidated entity does not have an unconditional right to defer the settlement of these amounts in
the event employees wish to use their leave entitlement.
Note 13. Lease liabilities
Current liabilities
Lease liability - lease contract
Non-current liabilities
Lease liability - lease contract
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous financial
year are set out below:
Opening balance
Additions to lease borrowings 18 June 2021
Repayment of lease liabilities
Closing balance
The lease liability relates to the Perth office principal place of business.
Refer to note 19 for further information on financial instruments.
Note 14. Issued capital
Consolidated
2021
$
2020
$
58,380
136,118
194,498
-
194,498
-
194,498
-
-
-
-
-
-
-
Ordinary shares - fully paid
1,021,258,431 313,717,856
31,830,027
22,537,072
Consolidated
2021
Shares
2020
Shares
2021
$
2020
$
38
49
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 14. Issued capital (continued)
Movements in ordinary share capital
Details
Balance
Balance
Ordinary Shares issued - placement
Ordinary Shares issued - placement
Ordinary Shares issued - placement
Ordinary Shares issued - placement
Ordinary shares issued to the vendors of Red Dirt
Mining Pty Ltd (RDM) as consideration for 100% of the
issued share capital of RDM
Ordinary shares issued to broker
Share issue costs - share based payment to broker
Ordinary Shares issued - placement
Share issue costs
Date
Number of
Shares
Issue price
$
1 July 2019
313,717,856
30 June 2020
7 December 2020
23 December 2020
24 December 2020
1 February 2021
313,717,856
47,057,678
56,478,496
21,950,968
27,942,322
1 February 2021
1 February 2021
1 February 2021
22 April 2021
410,000,000
33,000,000
-
111,111,111
-
22,537,072
22,537,072
470,577
564,785
219,510
279,424
4,100,000
330,000
(330,000)
4,000,000
(341,341)
$0.010
$0.010
$0.010
$0.010
$0.010
$0.010
$0.036
Balance
30 June 2021
1,021,258,431
31,830,027
Movements in options
Details
Balance
Expiry of Unlisted Options issued to advisor
Balance
Unlisted Options issued to Directors
Balance
Movements in performance shares
Details
Balance
Balance
Date
1 July 2019
30 June 2020
Number of
Options
27,000,000
(12,000,000)
30 June 2020
27 November 2020
15,000,000
15,000,000
30 June 2021
30,000,000
Date
1 July 2019
30 June 2020
Number of
Performance
Shares
-
-
Performance Shares issued to the vendors of Red Dirt Mining Pty Ltd
(RDM) as consideration for 100% of the issued share capital of RDM
1 February 2021
85,000,000
Balance
30 June 2021
85,000,000
Ordinary shares
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share
at shareholders’ meetings. In the event of winding up of the parent entity, ordinary shareholders rank after all creditors and are
fully entitled to any proceeds on liquidation.
39
50
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 14. Issued capital (continued)
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Options
15,000,000 Unlisted Remuneration Options were issued to Directors, each with an exercise price of $0.0300 per option, vesting
immediately on issue date 6 December 2018, and expiring on 6 December 2021.
15,000,000 Unlisted Remuneration Options were issued to Directors, each with an exercise price of $0.0300 per option, vesting
immediately on issue date 27 November 2020, and expiring on 15 December 2022.
Performance Shares
85,000,000 Performance Shares were issued to the vendors of Red Dirt Mining Pty Ltd (RDM) on 1 February 2021 as
consideration for 100% of the issued shares of RDM. These are convertible into one share at nil consideration, subject to
satisfaction of any one of the following vesting conditions:
(i)
200kozs inferred resource (gold) at above 4g/t underground or 2g/t open pit combined calculated (for both underground
or open pit combined) at a cut-off of 0.5g/t;
(ii)
undertaking 5,000 metres of drilling on the project with 6 holes or more than 8g/t over 3 metres each;
(iii) establishment of a toll treatment or ore production agreement with a mill within 180km of project; and
(iv) completion of a feasibility study with a net present value of not less than $50 million using a discount rate of 10%.
The milestone must be achieved by 1 February 2026. On conversion, each of the Shares will rank equally in all aspects with all
existing Shares previously issued by the Company.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it
can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce
the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as
total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or Company was seen as value
adding relative to the current Company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.
Note 15. Reserves
Foreign currency reserve
Share-based payments reserve
Consolidated
2021
$
2020
$
(892,431)
533,044
(900,320)
363,820
(359,387)
(536,500)
40
51
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the financial statements
30 June 2021
Note 15. Reserves (continued)
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Share-based payments 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.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2019
Foreign currency translation
Balance at 30 June 2020
Foreign currency translation
Share-based payments, note 32
Balance at 30 June 2021
Note 16. Accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Accumulated losses at the end of the financial year
Note 17. Dividends
Foreign
currency
reserve
$
Share-based
payments
reserve
$
(771,397)
(128,923)
(900,320)
7,889
-
363,820
-
363,820
-
169,224
Total
$
(407,577)
(128,923)
(536,500)
7,889
169,224
(892,431)
533,044
(359,387)
Consolidated
2021
$
2020
$
(19,340,651)
(4,658,604)
(18,629,692)
(710,959)
(23,999,255)
(19,340,651)
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 18. Share-based payments
Options
41
52
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 18. Share-based payments (continued)
Options
Class
Unlisted Director Options, issued as part of
share-based compensation for remuneration
Vested on 6 December 2018
Expiring on 6 December 2021
Unlisted Director Options, issued as part of
share-based compensation for remuneration
Vested on 15 December 2020
Expiring on 15 December 2022
Refer to note 32 for details on valuation model inputs to determine fair value.
Equity incentive shares
Exercise price
Number
under option
$0.0300
15,000,000
$0.0300
15,000,000
30,000,000
Per Julian Woodcock's service agreement as Chief Executive Officer commencing 4 January 2021, 4,000,000 shares are to be
issued subject to Shareholder approval upon completion of continuous employment to 30 November 2021.
Performance shares
Per Julian Woodcock's service agreement as Chief Executive Officer commencing 4 January 2021, the following performance
share tranches are available subject to achievement of the milestones:
(a) 4,000,000 performance shares upon achievement of performance milestone - resource target - attainment of 200koz;
(b) 4,000,000 performance shares - upon achievement of performance milestone - project acquisition - delivery M&A to achieve
one of the hurdles: 1. >50koz ; 2. >$2m acq costs; 3. >$2m JV earn in spend;
(c) 4,000,000 performance shares - upon achievement of performance milestone - share price tranche 1 $0.10;
(d) 4,000,000 performance shares - upon achievement of performance milestone - share price tranche 2 $0.15; and
(e) 4,000,000 performance shares - upon achievement of performance milestone - share price tranche 3 $0.20
Share-based payments expense
Amortisation of share based payment options based on vesting conditions above
Amortisation of share based payments for CEO equity incentive shares, non-vested
Consolidated
2021
$
2020
$
126,315
42,909
169,224
-
-
-
Note 19. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
consolidated entity. The consolidated entity uses derivative financial instruments such as forward foreign exchange contracts
to hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading or other speculative
instruments. The consolidated entity uses different methods to measure different types of risk to which it is exposed. These
methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit
risk and beta analysis in respect of investment portfolios to determine market risk.
Risk management is carried out by senior finance executives ('Finance') under policies approved by the Board of Directors ('the
Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate
procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated entity's
operating units. Finance reports to the Board on a monthly basis.
42
53
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 19. Financial instruments (continued)
Market risk
Foreign currency risk
The consolidated entity 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. As each of the individual entity within the group primarily
transact in their own respective functional currency, foreign currency risk is deemed to be minimal.
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
Interest rate risk is deemed to be minimal as the consolidated entity exposure on interest risk mainly on its cash at bank.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the
financial statements. The consolidated entity does not hold any collateral.
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables
through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered
representative across all customers of the consolidated entity based on recent sales experience, historical collection rates and
forward-looking information that is available.
Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the
failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments
for a period greater than 1 year.
The consolidated entity deemed its credit risk to be minimal as its financial assets are mainly cash held at financial institutions.
Liquidity risk
The consolidated entity is not exposed to any significant liquidity risk.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
43
54
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 19. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2021
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing - variable
Lease liability
Total non-derivatives
Consolidated - 2020
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Total non-derivatives
Weighted
average
interest rate 1 year or less
%
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
-
292,100
461,774
-
-
-
-
5.00%
66,852
820,726
72,100
72,100
71,126
71,126
-
-
-
-
292,100
461,774
210,078
963,952
Weighted
average
interest rate 1 year or less
%
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
-
95,162
55,077
150,239
-
-
-
-
-
-
-
-
-
95,162
55,077
150,239
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 20. Key management personnel disclosures
Directors
The following persons were Directors of Viking Mines Limited during the financial year:
Raymond Whitten
Charles Thomas
Michael Cox
Julian Woodcock
Resigned as Director on 22 April 2021
Appointed Director on 22 April 2021
Other key management personnel
The following person also had the authority and responsibility for planning, directing and controlling the major activities of the
consolidated entity, directly or indirectly, during the financial year:
Julian Woodcock
Appointed CEO on 5 January 2021
44
55
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 20. Key management personnel disclosures (continued)
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Note 21. Remuneration of auditors
Consolidated
2021
$
2020
$
393,488
35,470
1,823
169,224
293,836
25,883
-
-
600,005
319,719
During the financial year the following fees were paid or payable for services provided by Rothsay Auditing, the auditor of the
Company, and unrelated firms:
Audit services - Rothsay Auditing
Audit or review of the financial statements
Audit services - unrelated firms
Audit or review of the financial statements
Consolidated
2021
$
2020
$
39,000
24,000
162,144
-
During the year ended 30 June 2021, USD 13,230 (A$18,693 equivalent) was paid to Veritas Associates (Ghana) for the audit
of the subsidiary entity Resolute Amansie Limited (Ghana) for the year ended 30 June 2016.
During the year ended 30 June 2021, USD 112,115 (A$143,451 equivalent) was paid to PricewaterhouseCoopers (Ghana) for
the audit of the subsidiary entity Resolute Amansie Limited (Ghana) for the years ended 30 June 2017, 30 June 2018, 30 June
2019 and 30 June 2020.
Note 22. Contingent assets
Ghana litigation
In relation to the June 2015 sale of Akoase gold project in Ghana, the Company received a payment of USD3m on 29 July 2021
as part settlement owed by BXC Company Ghana Ltd and is pursuing a further USD 2 million in royalties from production,
interest and costs. Ghana High Court judgement is expected 18 October 2021 and the Board remain confident that the
Company will receive a positive judgement for this case.
Note 23. Contingent liabilities
Ghana litigation
The lawyers in Ghana have indicated the consolidated entity's legal fees owing to be in the order of USD 155k. These have not
been expensed in the profit and loss of the consolidated entity and will be included in costs claimed from the defendant in the
legal proceedings in relation to the Akoase gold project sale.
45
56
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 24. Commitments
Exploration expenditure commitments
Minimum exploration expenditure commitments do not apply in either Ghana or Mongolia as those governments do not
impose a minimum spend per licence. The exploration expenditure commitment is based on a work program system, whereby
at the time for each renewal of a licence, the Company provides an outline of work planned and expected expenditure.
Note 25. Related party transactions
Parent entity
Viking Mines Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 27.
Key management personnel
Disclosures relating to key management personnel are set out in note 20 and the remuneration report included in the Directors'
report.
Transactions with related parties
The following transactions occurred with related parties:
Payment for other expenses:
Consulting fees paid to GTT Ventures Pty Ltd, a Company related to Charles Thomas, for
professional and consulting fees relating to capital raising services
Wages paid to administration staff, an employee related to Julian Woodcock
Other transactions:
33,000,000 Shares valued at $0.01 per share issued to GTT Ventures Pty Ltd, a Company
related to Charles Thomas, as a broker fee
Consolidated
2021
$
2020
$
305,625
943
330,000
-
-
-
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 26. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive income
Parent
2021
$
2020
$
(4,572,025)
(397,051)
(4,572,025)
(397,051)
46
57
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 26. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
Parent
2021
$
2020
$
3,297,234
1,393,866
18,805,002
13,242,532
815,548
58,594
951,666
58,594
31,830,027
533,044
(14,509,735)
22,537,072
363,820
(9,716,954)
17,853,336
13,183,938
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021 and 30 June 2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June 2020.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except
for the following:
●
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
47
58
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the financial statements
30 June 2021
Note 27. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:
Name
Associated Gold Fields Pty Ltd
Bold Resources Pty Ltd
BRX LLC
Auminco Coal LLC
Khonkhor Zag Coal LLC
Salkhit Altai LLC
Ghana Mining Investments Pty Ltd
Kiwi International Resources Pty Ltd
Resolute Amansie Ltd*
Red Dirt Mining Pty Ltd
*
100% of rights to profits
Principal place of business /
Country of incorporation
Australia
Australia
Mongolia
Mongolia
Mongolia
Mongolia
Australia
Australia
Ghana
Australia
Ownership interest
2020
2021
%
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.00%
-
The only transactions between Viking Mines Limited and its controlled entities during this financial year consisted of loans
between Viking Mines Limited and its controlled entities.
Note 28. Events after the reporting period
Ghana litigation
The Company's Ghanaian subsidiary Resolute Amansie Ltd ('RAL') received USD 3 million on 29 July 2021 from BXC Company
Ghana Ltd, a defendant in the legal proceedings against the purchaser of the Akoase Gold Project in Ghana. Ghana High Court
has deferred judgement on the court case until 18 October 2021. The Company remains confident of a successful outcome of
the case.
Change in Directorships
David Hall appointed Non-Executive Director on 22 July 2021. On 3 August 2021, Ray Whitten AM resigned as Executive
Chairman and Michael Cox was appointed as Interim Non-Executive Chairman.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
48
59
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the financial statements
30 June 2021
Note 29. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(4,658,604)
(710,959)
Consolidated
2021
$
2020
$
Adjustments for:
Depreciation and amortisation
Impairment of non-current assets
Share-based payments
Foreign exchange differences
Other non-cash items
Change in operating assets and liabilities:
Decrease/(increase) in other receivables
Increase in prepayments
Increase in trade and other payables
Increase in employee benefits
2,230
705,183
169,224
112,448
6,641
(214,882)
(4,723)
602,275
24,378
-
299,660
-
(49,271)
-
5,148
(2,391)
42,033
13,685
Net cash used in operating activities
(3,255,830)
(402,095)
Note 30. Non-cash investing and financing activities
Additions to the right-of-use assets
410,000,000 ordinary shares issued to the vendors of Red Dirt Mining Pty Ltd (RDM) as
consideration for 100% of the issued share capital of RDM, see note 10 'Exploration and
evaluation'
33,000,000 ordinary shares issued to broker GTT Ventures Pty Ltd, an entity associated with
Charles Thomas, a Director of the Company, in relation to capital raising costs, see note 14
'Issued capital' and note 25 'Related party transactions'
Consolidated
2021
$
2020
$
187,857
4,100,000
330,000
4,617,857
-
-
-
-
49
60
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the financial statements
30 June 2021
Note 31. Earnings per share
Loss after income tax attributable to the owners of Viking Mines Limited
(4,658,604)
(710,959)
Consolidated
2021
$
2020
$
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.78)
(0.78)
(0.23)
(0.23)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
595,889,513 313,717,856
Weighted average number of ordinary shares used in calculating diluted earnings per share
595,889,513 313,717,856
The diluted loss per share is not reflected as the result is anti-dilutive.
Note 32. Options
Options outstanding at the end of the financial period have the following expiry date and exercise prices:
Option
Class
Unlisted Director Options, issued as part of
share-based compensation for remuneration
Vested on 6 December 2018
Expiring on 6 December 2021
Unlisted Director Options, issued as part of
share-based compensation for remuneration
Vested on 15 December 2020
Expiring on 15 December 2022
Exercise price
Number
under option
$0.0300
15,000,000
$0.0300
15,000,000
30,000,000
A share option plan has been established by the consolidated entity and approved by shareholders at a general meeting,
whereby the consolidated entity may, at the discretion of the Nomination and Remuneration Committee, grant options over
ordinary shares in the Company to certain key management personnel of the consolidated entity. The options are issued for nil
consideration and are granted in accordance with performance guidelines established by the Nomination and Remuneration
Committee.
Set out below are summaries of options granted under the plan:
Outstanding at the beginning of the financial year
Granted
Expired
Number of
options
2021
15,000,000
15,000,000
-
Weighted
average
exercise price
2021
Number of
options
2020
Weighted
average
exercise price
2020
$0.030
$0.030
$0.000
27,000,000
-
(12,000,000)
$0.037
$0.000
$0.046
Outstanding at the end of the financial year
30,000,000
$0.030
15,000,000
$0.030
Exercisable at the end of the financial year
30,000,000
$0.030
15,000,000
$0.030
50
61
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Notes to the Financial Statements
30 June 2021
Note 32. Options (continued)
2021
Grant date
Expiry date
06/12/2018
27/11/2020
06/12/2201
15/12/2022
Exercise
price
Balance at
the start of
the year
Granted
Expired/
forfeited/
other
Balance at
the end of
the year
Exercised
$0.030
$0.030
15,000,000
-
15,000,000
-
15,000,000
15,000,000
-
-
-
-
-
-
15,000,000
15,000,000
30,000,000
Weighted average exercise price
$0.030
$0.030
$0.030
$0.030
$0.030
2020
Grant date
Expiry date
04/07/2017
06/12/2018
30/06/2020
06/12/2201
Balance at
Exercise
price
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
$0.046
$0.030
12,000,000
15,000,000
27,000,000
-
-
-
-
-
-
(12,000,000)
-
(12,000,000)
-
15,000,000
15,000,000
Weighted average exercise price
$0.037
$0.000
$0.000
$0.046
$0.030
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
06/12/2018
27/11/2020
06/12/2021
15/12/2022
2021
2020
Number
Number
15,000,000
15,000,000
15,000,000
-
30,000,000
15,000,000
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
27/11/2020
15/12/2020
$0.023
$0.030
90.00%
-
0.14%
$0.008
51
62
Viking Mines Annual Report 2021
NOTES TO THE FINANCIAL STATEMENTS
30 June 2021
Viking Mines Limited
Directors' Declaration
30 June 2021
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30
June 2021 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Michael Cox
Interim Non-Executive Chairman
30 September 2021
52
63
Viking Mines Annual Report 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Viking Mines Limited (“the Company”) and its controlled entities
(“the Group”) which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended on that date and
notes to the financial statements, including a summary of significant accounting policies and the directors’
declaration of the Company.
In our opinion the financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (Including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
Viking Mines Limited (continued)
Key Audit Matter – Cash and cash equivalents
How our Audit Addressed the Key Audit Matter
The Group’s cash and cash equivalents make up 37%
of total assets by value and are considered to be the
key driver of the Group’s operations.
Our procedures over the existence and valuation of
the Group’s cash and cash equivalents included but
were not limited to:
We do not consider cash and cash equivalents to be
at a high risk of significant misstatement or to be
subject to a significant level of judgement.
However due to their materiality in the context of
the financial statements as a whole, they are
considered to be the area which had an effect on
our overall strategy and allocation of resources in
planning and completing our audit.
•
•
•
Documenting and assessing the processes and
controls in place to record cash transactions;
Testing a sample of cash payments to
determine they were bona fide payments,
were properly authorised and recorded in the
general ledger; and
Agreeing
equivalents to independent confirmations.
significant
cash
and
cash
Key Audit Matter – Exploration and evaluation
expenditure
The Group continues to capitalise a significant
amount of exploration and evaluation expenditure.
The balance at year end makes up 57% of the total
asset base.
We do not consider exploration and evaluation
expenditure to be at a high risk of significant
misstatement, or to be subject to a significant level
of judgement.
However due to the materiality in the context of
the financial statements as a whole, this is
considered to be an area which had an effect on our
overall strategy and allocation of resources in
planning and completing our audit.
We have also assessed the appropriateness of the
disclosures included in the financial report.
How our Audit Addressed the Key Audit Matter
Our procedures in assessing exploration and
evaluation expenditure included but were not
limited to the following:
• We assessed exploration and evaluation
expenditure with reference to AASB 6
Exploration for and Evaluation of Mineral
Resources.
• We tested a sample of exploration and
evaluation expenditure to supporting
documentation to ensure they were bona
fide payments; and
• We documented and assessed the processes
and controls in place to record exploration
and evaluation transactions.
We have also assessed the appropriateness of the
disclosures included in the financial report.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED (CONTINUED)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable, related safeguards.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED (CONTINUED)
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe those matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communications.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2021.
In our opinion the remuneration report of Viking Mines Limited for the year ended 30 June 2021 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Auditing
Dated 30 September 2021
Donovan Odendaal
Partner
SHAREHOLDER INFORMATION
30 June 2021
Viking Mines Limited
Shareholder Information
30 June 2021
The shareholder information set out below was applicable as at 23 August 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Options over ordinary
shares
% of total
Number
of holders
shares
issued
Number
of holders
options
issued
Number
of holders
Performance shares
% of total
performance
shares
issued
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
43
16
55
769
651
-
0.01
0.05
3.14
96.80
1,534
100.00
Holding less than a marketable
parcel
328
0.38
Equity security holders
-
-
-
-
3
3
-
-
-
-
-
100.00
100.00
-
-
-
-
-
8
8
-
-
-
-
-
100.00
100.00
-
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Number held
% of total
shares
issued
VANGUARD SUPERANNUATION PTY LTD [VANGUARD INVESTMENT A/C]
ING INVESTMENT FUND PTY LTD [ING INVESTMENT FUND A/C]
MCNEIL NOMINEES PTY LIMITED
BARBARY COAST INVESTMENTS PTY LTD [WHITTEN SUPER FUND A/C]
SYRACUSE CAPITAL PTY LTD [THE ROCCO TASSONE S/F A/C]
CITYSCAPE ASSET PTY LTD [CITYSCAPE FAMILY A/C]
SYRACUSE CAPITAL PTY LTD [TENACITY A/C]
TRIBECA NOMINEES PTY LTD
FARADAY NOMINEES PTY LIMITED [BRONTE INVESTMENT A/C]
GTT GLOBAL OPPORTUNITIES PTY LTD
CITICORP NOMINEES PTY LIMITED
ALISSA BELLA PTY LTD [THE C&A TASSONE SUPER A/C]
MR STEVEN WANG
TOPSFIELD PTY LTD [THE JOHN BOND INVESTMENT A/C]
BROWN BRICKS PTY LTD [HM A/C]
MR OWEN JOHN COOTE & MRS MONIQUE RENEE COOTE [PLATONIC SUPER FUND A/C]
SUNSET CAPITAL MANAGEMENT PTY LTD [SUNSET SUPERFUND A/C]
TORONA PTY LTD [ANYWHERE TRAVEL A/C]
FOREST INVESTMENT CORPORATION PTY LTD
ALISSA BELLA PTY LTD [THE C&A TASSONE SF NO 2 A/C]
101,500,000
91,300,000
39,744,176
38,638,655
32,638,889
30,000,000
26,117,405
23,000,000
20,000,000
19,420,000
14,198,240
13,702,407
13,250,000
12,550,000
12,000,000
11,133,843
10,000,000
10,000,000
8,359,858
8,000,000
9.94
8.94
3.89
3.78
3.20
2.94
2.56
2.25
1.96
1.90
1.39
1.34
1.30
1.23
1.18
1.09
0.98
0.98
0.82
0.78
535,553,473
52.45
57
68
Viking Mines Annual Report 2021
SHAREHOLDER INFORMATION
30 June 2021
Viking Mines Limited
Shareholder Information
30 June 2021
Twenty largest unquoted equity security holders
The names of the twenty largest security holders of unquoted equity securities are listed below:
CHAOXS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD
BARBARY COAST INVESTMENTS PTY LTD
VANGUARD SUPERANNUATION PTY LTD [VANGUARD INVESTMENT A/C]
ING INVESTMENT FUND PTY LTD [ING INVESTMENT FUND A/C]
ADVANTAGE VENTURES PTY LTD [THE ADVANTAGE VENTURES A/C]
TRIBECA NOMINEES PTY LTD
PRINCIPAL GLOBAL INVESTMENTS PTY LTD [PRINCIPAL GLOBAL SF A/C]
TITUS INVESTMENT (WA) PTY LTD [THE ARGENT A/C]
LILKA ENTERPRISES PTY LTD [LILKA A/C]
JANATAR PTY LTD [THE JANATAR A/C]
Unquoted equity securities
Options over ordinary
shares
Number held
10,000,000
10,000,000
10,000,000
30,000,000
% of total
options
issued
33.33
33.33
33.33
99.99
Performance shares
% of total
performance
shares
issued
Number held
17,595,000
17,595,000
10,710,000
8,500,000
7,650,000
7,650,000
7,650,000
7,650,000
20.70
20.70
12.60
10.00
9.00
9.00
9.00
9.00
85,000,000
100.00
Number
on issue
Number
of holders
Options over ordinary shares issued:
Unlisted options issued 29 November 2018, exercisable at $0.03 on or before 06 December
2021
Unlisted options issued 27 November 2020, exercisable at $0.03 on or before 15 December
2022
Performance shares issued:
Performance shares issued 1 February 2021, expiring 1 February 2026
15,000,000
15,000,000
85,000,000
3
3
8
The following persons hold 20% or more of unquoted equity securities:
Name
Class
Number held
Options over ordinary shares issued
CHAOXS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD
BARBARY COAST INVESTMENTS PTY LTD
Performance shares issued
VANGUARD SUPERANNUATION PTY LTD
[VANGUARD INVESTMENT A/C]
ING INVESTMENT FUND PTY LTD [ING INVESTMENT
FUND A/C]
58
-
10,000,000
10,000,000
10,000,000
-
17,595,000
17,595,000
69
Viking Mines Annual Report 2021
SHAREHOLDER INFORMATION
30 June 2021
Viking Mines Limited
Shareholder Information
30 June 2021
Substantial holders
Substantial holders in the Company are set out below:
VANGUARD SUPERANNUATION PTY LTD [VANGUARD INVESTMENT A/C]
ING INVESTMENT FUND PTY LTD [ING INVESTMENT FUND A/C]
101,500,000
91,300,000
9.94
8.94
Ordinary shares
% of total
Number held
shares
issued
CHAOXS PTY LTD
MOUNTS BAY INVESTMENTS PTY LTD
BARBARY COAST INVESTMENTS PTY LTD
ING INVESTMENT FUND PTY LTD [ING INVESTMENT FUND A/C]
VANGUARD SUPERANNUATION PTY LTD [VANGUARD INVESTMENT A/C]
ADVANTAGE VENTURES PTY LTD [THE ADVANTAGE VENTURES A/C
TRIBECA NOMINEES PTY LTD
PRINCIPAL GLOBAL INVESTMENTS PTY LTD [PRINCIPAL GLOBAL SF A/C]
JANATAR PTY LTD [THE JANATAR A/C]
TITUS INVESTMENT (WA) PTY LTD [THE ARGENT A/C]
LILKA ENTERPRISES PTY LTD [LILKA A/C]
Voting rights
Voting rights are set out below:
Options over ordinary
shares
% of total
options
issued
Number held
10,000,000
10,000,000
10,000,000
33.33
33.33
33.33
Performance shares
% of total
performance
shares
issued
Number held
17,595,000
17,595,000
10,710,000
8,500,000
7,650,000
7,650,000
7,650,000
7,650,000
20.70
20.70
12.60
10.00
9.00
9.00
9.00
9.00
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share
shall have one vote.
Options
All quoted and unquoted options do not carry any voting rights.
Performance shares
All quoted and unquoted performance shares do not carry any voting rights.
There are no other classes of equity securities.
59
70
Viking Mines Annual Report 2021
SHAREHOLDER INFORMATION
30 June 2021
Viking Mines Limited
Shareholder Information
30 June 2021
Tenement schedule
Licence name,
Licence type
Akoase West,
Prospecting licence
Akoase East,
Prospecting licence
Akoase South-East,
Prospecting licence
Tumentu,
Prospecting licence
Butre,
Prospecting licence
Berkh Uul,
Exploration licence
Khonkhor Zag,
Mining lease
M30/0091
Mining licence
M30/0099
Mining licence
P30/1125
Prospecting licence
P30/1126
Prospecting licence
P30/1137
Prospecting licence
P30/1144
Prospecting licence
E30/0529
Exploration licence
Location
Licence Holder / JV Partners* Viking Mines Ownership
Southern Ghana
Resolute Amansie Ltd
Southern Ghana
Resolute Amansie Ltd
Southern Ghana
Resolute Amansie Ltd
100% (reducing to zero %
upon sale completion)
100% (reducing to zero %
upon sale completion)
100% (reducing to zero %
upon sale completion)
Southern Ghana
Resolute Amansie Ltd
100%
Ahanta West, Ghana
Resolute Amansie Ltd
100%
Selenge province, Mongolia
BRX LLC
Govi Altai province, Mongolia Salkhit Altai LLC
0%
0%
Western Australia
Red Dirt Mining Pty Ltd
100%
Western Australia
Red Dirt Mining Pty Ltd
100%
Western Australia
Red Dirt Mining Pty Ltd
100%
Western Australia
Australian Emerald Menzies
Pty Ltd
100% (pending completion of
transfer to VKA)
Western Australia
Red Dirt Mining Pty Ltd
100%
Western Australia
Red Dirt Mining Pty Ltd
100%
Western Australia
Red Dirt Mining Pty Ltd
100%
* Resolute Amansie Ltd (Ghana) is a 100% owned subsidiary of Viking Mines Limited
BRX LLC and Salkhit Altai LLC (Mongolia) are 100% owned subsidiaries of Viking Mines Limited
Red Dirt Mining Pty Ltd (Australia) is a 100% owned subsidiary of Viking Mines Limited
60
71
Viking Mines Annual Report 2021
REGISTERED OFFICE
15-17 Old Aberdeen Place
West Perth 6005 WA
E contact@vikingmines.com
VIKINGMINES.COM | ASX:VKA
72
Viking Mines Annual Report 2021