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Viking Mines Annual Report 2022 CONTENTS
4
Review of Operations
22
Directors’ Report
35
Auditors’ Independence Declaration
37
Statement of Profit or Loss and Other
Comprehensive Income
38
Statement of Financial Position
39
Statement of Changes in Equity
40
Statement of Cash Flows
41
Notes to the Financial Statements
67
Independent Auditor’s Report
71
Shareholder Information
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
REVIEW OF OPERATIONS
Operations during FY2022 have seen the primary focus of the Company remain on
exploration and drilling at the First Hit high-grade gold project (First Hit), located in
Western Australia. Exploration activity completed during the year yielded some exciting
results which provides several key targets for future exploration activity. Activities that have
occurred over the reporting year are discussed below.
AUSTRALIA
First Hit Project, Western Australia
The Company continued to actively explore the First Hit Project throughout FY22. During
H1 FY22, assay results from the Diamond and Air-Core (AC) drill programmes (which were
undertaken in FY21) were received. After assessing and interpreting the results, the
Company undertook a 6,723m 71-hole Reverse Circulation (RC) drill programme to test
follow up targets1. Results were received throughout H2 FY22 and there remains significant
potential at First Hit with multiple drill ready follow up targets warranting further
investigation, namely;
1. First Hit North - Camp 1 Shoot; Newly discovered shoot located 720m north of the
historic high grade First Hit mine with results up to 2m at 9.67g/t Au3.
2. First Hit North - Hilton Shoot; Newly discovered shoot located 220m north of the
historic high grade First Hit mine with results up to 1m at 13.52g/t Au2.
3. Jana’s Reward; two mineralised positions of 1m at 36.49g/t Au and 1m at
17.84g/t Au respectively drilled in an area with no prior bedrock testing4.
4. First Hit South; 1m at 7.66g/t located 480m south of the historic high-grade First
Hit gold mine1.
Further discussion on the First Hit Project development throughout FY22 is given below.
First Hit Project Diamond Drilling Results
In the September Quarter FY22, the Company received assay results from its Phase 1 and
Phase 2 diamond drill program (18 holes for ~3,924m) which concluded in the June
Quarter FY21. The results confirmed that drilling successfully intersected high-grade
mineralisation at depth below and along strike from the historic mine workings. Significant
results included:
• VDD013:
• VDD015:
• VDD016:
5.0m at 3.67g/t Au inc.
1.0m at 11.16g/t Au (Figure 1)2;
7.06m at 5.93g/t Au, inc.
0.5m at 71.64 g/t Au (Figure 1 & Figure 2)2;
1.0m at 13.52g/t Au (Figure 1 & Figure 3)2.
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ASX:VKA
vikingmines.com
15-17 Old Aberdeen Place
West Perth, WA, 6005
P +61 8 6245 0870
info@vikingmines.com
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Viking Mines Annual Report 2022
Figure 1; Long section of the First Hit historic gold mine showing the results from the FY21 Diamond Drilling programme, the FY22 RC
drilling programme and historical drilling results. (Refer ASX Announcements 24 June 2021, 23 July 2021 and 30 August 2021).
Holes VDD013 & VDD015 are located below the historical limits of mining. The results
confirmed the presence of high-grade narrow vein mineralisation and, importantly, there is
no drilling located down plunge and to the south of hole VDD013 confirming that
mineralisation remains open at depth (Figure 1).
Hole VDD016 is located 165m north of the mine workings which is outside the current limits
of drilling defining the First Hit mine, potentially representing a previously unrecognised
mineralised shoot (Figure 1). This result represented one of the priority targets to be drilled
in the subsequent Reverse Circulation (RC) drilling program, which commenced in the
December quarter of FY22 (discussion below).
In addition to the assay results received, visible gold was sighted in 6 diamond drillholes
out of the 18 drillhole programme. Gold was observed in 5 out of the 11 drillholes reaching
targeted depth in and around the historic First Hit mine workings and also observed in 1 of
the 4 step out holes drilled to test the continuity of the First Hit structure outside of the
defined mine limits to the north and south of the historic mine workings.
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
Figure 3;Visible gold seen in hole VDD015 at 300.2m depth downhole. Red circles denote where visible gold has
been seen. Close up images are of the gold seen in the core. (Refer ASX Announcement 24 June 2021)
Figure 2; Photos of quartz vein with visible gold seen in HQ diamond core from hole VDD016 starting at 57.95m depth down hole.
A; 20cm quartz vein (not true width) with visible gold sighted in red circles, B-D; zoom in images showing gold and pyrite. (Refer to
ASX Announcement 23 July 2021)
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Viking Mines Annual Report 2022
The observation of visible gold in multiple holes, combined with assay results received
confirm:
1. Presence of high-grade material remaining in the central part of the First Hit mine
workings (VDD012)
2. Depth extension potential of the Evans lode (VDD013 & VDD015)
3. Depth extension potential of the Kylie lode (VDD009 & VDD014) and;
4. A new potential shoot position 165m north of the historic mine workings (VDD016)
First Hit Project AC Drilling Results
In the September Quarter FY22, the Company reported the results from the H2 FY21 Air
Core (AC) drilling programme which concluded in the June Quarter FY21 (Figure 4).
Through observations of key features in the data and completing a thorough interpretation
process, four follow up target areas were identified for further follow up exploration activity
(Figure 4).
1. Twin Peaks: Broad +300m >15ppb gold in regolith anomaly5 with 2 >40ppb
peaks associated with a significant interpreted NE striking structure and weak to
moderate level pathfinder element association.
2. Jana’s Reward: 5 x >20ppb gold in regolith targets5 spread over a 1,000m x 400m
area, in an area of structural complexity and supported by higher value pathfinder
element association and historic auger sampling.
3. Lady Bailey: 3 x >15ppb gold in regolith targets5 spread across 2 AC traverses
and proximal to a significant interpreted NE trending structure with weak associated
pathfinder element association.
4. Toby’s Find: High level pathfinder element association over an 800m x 150m area
over 3 x AC traverses with coincident >20ppb gold in regolith over 1 AC traverse5.
These target areas were in addition to further indicators received from the AC drilling to
follow up immediately North and South from the historic high-grade First Hit gold mine
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
Figure 4; Map showing maximum ppb gold in Archean basement obtained in AC drilling results with 4 primary follow up
target areas outlined in yellow boxes and mineralised trends North and South from First Hit in blue boxes.
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Viking Mines Annual Report 2022
First Hit Project RC Drill Programme FY22
On receipt of the results from the FY21 AC and DD programmes, the Company completed
the interpretation of the data and a comprehensive targeting exercise. A follow up RC drill
programme was subsequently designed and approved by the board to test for further
mineralisation and extensions along the First Hit structure with 2 primary objectives:
1. To test the First Hit structure along strike from the known mineralisation at First Hit,
with a primary focus on discovering additional high-grade shoots similar to that
mined at the historic First Hit gold mine which produced ~30koz ounces of gold at
an average grade of ~7.7g/t Au.
2. Test additional parallel target positions at the Jana’s Reward and Twin Peaks
prospects.
The RC drilling programme was undertaken in the December Quarter FY22 (Figure 5) and
comprised of 71 holes for 6,723m. There were significant delays in assay result turnaround
due to industry wide pressures on the laboratories which were outside of the Company’s
control.
Assay results were reported between December 2021 to April 2022 with gold intersected
in all 4 target areas tested and visible gold identified in 5 of the 71 drill holes.
A summary of each of the target areas tested are presented for discussion below.
Figure 5; RC drilling in the December Quarter FY22 at the First Hit Project.
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
First Hit North Target
RC Drilling tested the First Hit structure for ~1,100m along strike to the NNW from the
historical First Hit mine workings with 25 holes for 3,091 metres (Figure 6). The drill
programme was successful in both confirming the presence of the First Hit structure and
encountering gold mineralisation in two potential lode positions, subsequently named the
Hilton and Camp 1 shoots respectively.
Camp 1 Shoot
The Camp 1 shoot is located ~800m North of the historic mine workings and occurs over
~125m strike length and has been effectively tested to a depth of ~70m from surface
(Figure 7). Drilling has confirmed the presence of a continuously mineralised zone with
demonstrated capability to generate high-grade gold intercepts with visible gold.
Results from the FY22 RC drill programme which define the shoot are:
• VKRC0023: 2m at 9.67g/t Au from 26m3
• VKRC0021: 2m at 4.1g/t Au from 15m6
• VKRC0066: 2m at 4.26g/t Au from 75m3
• VKRC0021A: 6m at 0.64g/t from 26m including;
1m at 1.01g/t from 26m; and
1m at 1.56g/t from 29m6
Upon review of the drilling data, the mineralised zone appears steeper in cross section than
predicted prior to drilling. This, combined with drillholes steepening due to excessive
deviation whilst drilling, has resulted in 4 holes (VKRC0020, VKRC0022, VKRC0024 &
VKRC0026) potentially not reaching the mineralised position (Figure 6 & Figure 7). This is
of significance as is means the shoot has not been effectively tested downdip from the
intersected mineralisation in the shallower holes6.
Further drilling is required to test the down dip potential of this shoot.
Hilton Shoot
The Hilton shoot (which was initially discovered as part of the 2021 Diamond drilling
programme) is located ~175m North of the historic mine workings, has now been
encountered over ~110m strike length and to a depth of ~90m from surface (Figure 7).
Results from the FY22 RC drill programme and the FY21 Diamond drill programme which
define the shoot are:
1m at 13.52g/t Au from 57m2
• VDD016:
• VKRC0004: 1m at 5.97 g/t Au from 36m6
• VKRC0008: 1m at 4.56g/t Au from 64m3
• VKRC0009: 2m at 2.55g/t Au from 98m3
Further drilling is required to test the down dip potential of this shoot.
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Viking Mines Annual Report 2022
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Viking Mines Annual Report 2022 REVIEW OF OPERATIONS
Figure 7; Long section of First Hit North target area showing assay results received during FY22. Two shoot positions outlined are
located 22m and 720m north of the historic mine workings. Note the 4 drillholes in the Camp 1 shoot which are interpreted to have
not reached the mineralised position due to steepening of the mineralised zone and the deviation of the RC drillholes.
First Hit South Target
RC Drilling tested the First Hit structure ~420m along strike to the SSW of the historical First
Hit mine workings with 14 holes for 1,669 metres completed. The drill programme was
successful in confirming the presence of the First hit structure along the length tested with
anomalous ppb level gold returned. Higher grade gold was returned in two intersections,
immediately adjacent to the historical workings and in the final drill section 420m to the
south (Figure 8). Results are shown below.
• VKRC0041: 1m at 7.66 g/t Au from 45m1
• VKRC0028: 1m at 1.02 g/t Au from 133m;
1m at 1.03 g/t from 143m1; and
2m at 4.49 g/t Au from 147m1
Due to the limited drilling completed, the Company is unable to determine at this time if a
new shoot has been discovered, however based on the results received to date, further
work is warranted.
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Viking Mines Annual Report 2022
Figure 8; Long section showing the First Hit South target area with the location of the FY22 RC drilling pierce points. Note the 1m at
7.66g/t Au Intersected in hole VKRC0041 which is open to the south and downdip.1
Figure 9; Pegmatite intervals encountered in hole VKRC0030 from 61 to 72m. Top image shows the chip tray with the light-
coloured intervals of pegmatite. Photo A: rock chip collected from 70-71m downhole composed of lepidolite, quartz and
plagioclase. Photo B: Zoomed in image of the rock chip clearly demonstrating the deep lilac/purple colouration of lepidolite.
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
In addition to the gold mineralisation encountered, drilling also intersected a pegmatite in
hole VKRC0030 from 61 – 72m downhole, with the occurrence of lilac-coloured minerals
interpreted to lepidolite (Figure 9)7.
Follow up petrological testwork positively identified 5 lithium bearing mineral species;
lepidolite, zinnwaldite, eucryptite, petalite and trilithionite. Whilst the Company’s primary
focus is targeting high-grade narrow vein gold, the identification of these minerals
highlights the potential for lithium to occur on the First Hit Project tenure.
Jana’s Reward Target
RC drilling tested the Jana’s Reward target located 1.5km to the NNW of the historical First
Hit mine. The target was identified through the interpretation of the results from the FY21
AC programme and the magnetic geophysical data. It was determined to have high
potential to host a parallel mineralised position to the First Hit structure and subsequently
recommended for drilling. 11 RC drillholes for 990m were drilled in a heel to toe
configuration to effectively test the target as a first pass drill programme. Drilling proved
successful and delivered high grade gold intercepts over 2 separate positions within a
much larger 15ppb gold halo (Figure 10).
The high-grade results from the FY22 RC drill programme are:
• VKRC0057: 1m at 36.49g/t Au from 17m4
• VKRC0053: 1m at 17.83g/t Au from 16m4
Due to being an early-stage drill programme with initial drill intercepts received, further
field work is required to advance this target. The tenor of the grades retuned demonstrate
the potential for this target to develop into the discovery of a second mineralised structure
at the First Hit Project.
Twin Peaks Target
RC drilling targeted a >220m long geological contact between mafic and ultramafic rocks
with abundant historical workings, striking in a N-S direction. 10 holes for 903m tested the
contact. Results confirmed the presence of gold mineralisation and include:
• VKRC0043: 2m at 3.71 g/t Au from 53m1
• VKRC0042: 2m at 1.65 g/t Au from 21m; and
1m at 0.88g/t Au from 25m1
• VKRC0047: 2m at 1.29 g/t Au from 0m; and
1m at 1.68 g/t Au from 39m1
The results from the RC drill programme have confirmed the identification of a continuous
N-S striking gold bearing structure that extends >300m along the full length of Vikings
tenure which is open at depth (Figure 11). Whilst low grade, the shallow nature of the
mineralisation could make it a potential future open pit target.
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Viking Mines Annual Report 2022
Figure 10; Cross section at the Jana’s Reward target (looking north) with high-grade intercepts annotated. Note the variable
interpreted geology with mineralisation occurring near contacts or shear zones. >15ppb halos have been identified in the drilling
which is of significance given the low tenor halo observed at First Hit adjacent to high grade mineralisation in the historic mine.
Figure 11; Cross section through the Twin Peaks target showing the results received within two recent Viking RC holes (VKRC0042
& 43) and historic hole (TCR006) with the interpreted >100ppb gold contour. Note shallow mineralisation open at depth.
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
Additional Tenement Acquisitions
The Company has sought to expand the footprint of the First Hit Project with opportunistic
tenement acquisitions and transactions with existing tenement holders.
Throughout FY22 the company has grown the First Hit Project tenure with the grant of
exploration licences E29/1133 and E29/529. In addition, the company signed an option
agreement with Encounter Resources (ASX:ENR) covering 39km2 of tenure due east of the
historic First Hit mine8. With these tenement acquisitions, the Company has now
established a 270km2 land position in the Eastern Goldfields with a core land position
covering 25km strike of the prospective Zuleika Shear corridor (Figure 12).
Initial data searches of historical exploration reports on the 100% Viking owned exploration
licence E30/529 identified historical drilling with high-grade intercepts which have not
been captured in the Western Australia government historical drillholes database
(WAMEX). Significant intercepts identified include:
• RSR65
• RSR231
• RSRC9
4m at 5.1g/t Au from 12-16m (drilled in 1986)9
8m at 1.45g/t Au from 32m (drilled in 1987)9
4m at 4.88g/t Au from 38m (drilled in 1988)9
The drillhole results all lie within the same mafic stratigraphy which is known to host multiple
deposits totalling >700koz (Lights of Israel, Makai & Golden Eagle) adjacent to the
Davyhurst Mill ~23km to the south.
The Company sees further potential for significant gold deposits to be hosted on the tenure
which we are exploring.
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Viking Mines Annual Report 2022
Figure 12; Map showing Viking's exploration tenure with the ground acquisitions which occurred throughout FY22 and the
location of regionally significant projects. Note the trend of the Zuleika Shear Zone which falls on the newly acquired tenure.
Background image is magnetics image reduced to pole (RTP) 1st Vertical Derivative (1VD) map sheet 1057 (Menzies) - freely
available from the WA DMIRS
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
GHANA
Akoase Gold Project (VKA 100% - reducing to 0% upon completion of sale)
During the reporting period, the Company continued to pursue the unpaid proceeds of the
sale of the Akoase gold project through the High Court in Ghana.
On 29 July 2021, the Company’s subsidiary, Resolute Amansie Ltd (RAL), received US$3
million from BXC Company Ghana Ltd as part payment from the sale contract for the
Akoase Gold Project. The proceeds were utilised by RAL to part repay the intercompany
loans owed by RAL to Viking.
At a subsequent hearing on 18 October 2021, judgement was given by the High Court in
Ghana (commercial division) in favour of Viking’s subsidiary company RAL, in respect of all
aspects of the claim against the defendants for payment of the outstanding balance of
purchase price, legal costs, interest and royalty.
The US$3 million received are deemed by the company to contribute towards to
outstanding balance of the sale payment and accrued interest (amount yet to be
determined by the court) and as such does not complete the contracted sale. In addition to
this, the remaining payments outstanding are as follows:
• US$120k transfer fees;
• A royalty on any mining completed on the Akoase project (US$40/ounce
mined up to a maximum of US$2M);
Interest and on each of the above amounts; and
•
• Legal costs
The judge ordered that the defendants must provide to the court accounts in respect of the
royalty to determine the amount payable. The matter was subsequently adjourned until 17
November 2021, at which time the defendants did not appear in court and failed to provide
to the Court accounts in respect of the royalty as instructed.
On 7 February 2022, at the request of the Company, the High Court in Ghana appointed
an independent expert, internationally renowned mining experts SRK Consulting, to assess
the extent of mining undertaken by purchasers of the Akoase Project, namely Akoase
Resources Limited, BXC Company Ghana Limited and Cheng Yi, at the Akoase Project.
During the June Quarter of FY22, SRK Consulting completed their site visit of the Akoase
Project. A representative for the Company who attended the site visit provided
photographic evidence of mining activity being undertaken by the defendants (refer to ASX
announcement on 16 June 2022).
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Viking Mines Annual Report 2022
Events occurring after the reporting period
As announced to the market on 29 July 2022, SRK Consulting’s report was formally
presented to the court on 4 July 2022.
At a hearing on 22 July 2022, the judge commenced with questioning of the Expert who
testified the following key points:
• 33,000 ounces of in-situ gold has been depleted from the block (resource) model
due to mining;
• Mining is currently being undertaken at the Project and the Defendants are mining
to a mine plan;
• Mineralisation seen in the mine workings is consistent with gold bearing
mineralisation; and
• Mining of gold is taking place outside of the modelled mineralisation.
Based on the findings of the Expert, Viking is seeking royalty payments on the 33,000
ounces (plus interest on the royalty and outstanding sums). In addition, any further ounces
mined will be subject to the royalty agreement up to a royalty cap of 50,000 ounces total.
The Company is also seeking punitive legal costs which we believe will be significant.
Tumentu Gold Project (VKA 100%)
No on ground activity took place during the reporting period.
Butre Gold Project (VKA 100%)
No on ground activity took place during the reporting period.
CORPORATE
Board Changes
On 22 July 2021 the Company announced the appointment of Mr David Hall as Non-
Executive director.
On 3 August 2021, Mr Ray Whitten resigned as Executive Chairman. Non-Executive
Director, Mr Michael Cox was appointed as Interim Chairman.
On 20 April 2022, Mr Charles Thomas was appointed as Non-Executive Chairman,
replacing Mr Michael Cox as Interim Chair. Mr Cox remains a Non-Executive Director of the
Company.
On 19 May 2022, the Company announced the resignation of Mr David Hall as a Non-
Executive Director and that director fees for the Non-Executive Chairman and Non-
Executive Director had been reduced to $48,000 and $36,000 per annum respectively as
part of the Company’s strategy to reduce overheads.
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Viking Mines Annual Report 2022
REVIEW OF OPERATIONS
Securities
During the reporting period the Company issued 4,000,000 Shares and 20,000,000
Performance Rights to Bedrock Investment Group Pty Ltd, a company associated with Mr
Julian Woodcock. The Shares and Performance Rights were issued following shareholder
approval on 25 November 2021.
On 6 December 2021, the Company issued a total 5,000,000 Unlisted Options, exercisable
at $0.03 each and expiring 30 November 2023, as a long term incentive to Non-Executive
Director, Mr David Hall. The Unlisted Options were issued following shareholder approval
on 25 November 2021
During the reporting period, the Company advised of the cessation of 15,000,000 Options,
exercisable at $0.03 and expiring 6 December 2021.
Company Administration
On 26 July 2021, 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.
Business Risk
The Company continuously assesses, evaluates and manages risks to the business through
a company risk register which is reviewed by the Board. Specific business risks are
identified, assessed and rated using a risk matrix on their inherent risk. Residual risk is
subsequently determined after business controls are put into place. The Company
considers risks with residual risk rating which rate ‘High’ to ‘Very High’ as areas which
warrant continual monitoring. Material risks to the business which reside in these categories
are detailed below.
Risk
Description
Residual
Risk
Rating
Controls
Exploration
risk
Project
Acquisitions
Exploration and resource
development incorporates a high
degree of technical and
geological risk. The natural
endowment of the ground being
explored is the limiting factor and
there always remains a risk of
insufficient natural endowment to
make an economic discovery.
Project acquisitions come with
inherent risks associated with the
technical and commercial viability
of the project. This has the
potential to result in significant
costs and/or loss to the Company
through investment of financial
resources and time.
High
High
Detailed planning of exploration programmes
with external consultant input where required
ensures the highest quality exploration targets
are tested. The board approves all exploration
programmes and budgets to achieve outcomes
in the Company’s (and shareholders) best
interests. Regular reporting to the board of the
results of exploration programmes. Ongoing
Business Development activity to source
complimentary projects for the Company with a
high potential for exploration success.
The Company undertakes a detailed and
thorough due diligence process on any projects
using a project evaluation matrix. This addresses
many aspects of the project including technical,
legal, environmental and financial factors
associated with it. The Board sign off on the due
diligence process and review the project
evaluation matrix on any project assessment
before any investment decisions are made.
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Viking Mines Annual Report 2022
Risk
Description
Supplier Risk
Loss of key
management
personnel
Occupational
Health and
Safety
Current economic climate has
impacted both the cost and
availability of key suppliers (drill
contractors, analytical
laboratories, labour hire,
consultants etc) to allow the
Company to conduct exploration
activity in a timely manner.
The resources sector is currently
highly competitive with significant
cost escalation and wage growth.
The loss of key management
personnel would impact the
Company’s ability to undertake
activity in a timely manner.
Work related injuries have the
potential to impact the Company
to undertake its business through
suspension of field work due to
employees or contractors unable
to carry out their duties;
Employee
productivity
&
engagement
The impact of COVID-19 and
industry competitiveness for
skilled and unskilled labour may
result in reduced employee
productivity and subsequently
effect the business due to the
inability to meet Company targets
Residual
Risk
Rating
Controls
High
High
High
High
Maintain contact with multiple suppliers for
services; Plan activity ahead of time with
exploration budget process to provide sufficient
notice for drilling and field work; Seek early
board approvals for programmes; Board signoff
for key contracts.
The Board maintain regular contact with the
Company’s Executive and Management
personnel to ensure the Board is fully aware of all
business issues. The Company undertakes
annual reviews and benchmarking for key roles
to ensure competitive contracts are in place and
has contractual notice periods in place to
minimise business disruption.
The Company undertakes a health and safety
review of contracting companies to ensure
sufficient policies and procedures are in place for
the activities being carried out. Field work is
undertaken with industry best practices and all
legally required insurances are always held by
the company.
The Company follows all government guidelines
with respect to managing COVID-19 and the
impacts on the Company’s employees and
contractors. The Company provides role
descriptions for employees to ensure they are
aware of all role responsibilities and undertakes
annual performance reviews to ensure
employees are appropriately skilled and
engaged to meet the Company objectives.
1 - ASX Announcement 19 April 2022 -Viking receives final assays for first hit project RC drill programme.
2 - ASX Announcement 30 August 2021 – Viking diamond drilling delivers high-grade results of up to 71g/t Au & identifies new target
3 - ASX Announcement 22 December 2021 – Viking receives high-grade results in first assays from 72 hole programme.
4 - ASX Announcement 3 March 2022 – Viking intersects bonanza grades up to 36 g/t Au in first bedrock drilling at Jana’s Reward
5- ASX Announcement 19 August 2021 - Viking identifies multiple follow up targets from AC drill programme
6 – ASX Announcement 14 February 2022 - Viking receives remaining assays for first hit north target
7 – ASX Announcement 1 March 2022 – Viking identifies lithium minerals in pegmatite at First Hit
8 – ASX Announcement 4 March 2022 – Viking adds highly prospective gold & lithium tenure
9 – ASX Announcement 25 March 2022 – Viking finds 4m at 5.15/t Au in historical data on new tenure
Competent Persons Statement
Information in this annual report that relates to Exploration Results on the Western Australian
projects is based on information compiled and/or reviewed by Mr Ian Stockton, who is a Member of
the Australian Institute of Mining and Metallurgy (AusIMM). Mr Stockton is a full-time employee of
CSA Global. Mt Stockton is engaged by Viking Mines Ltd as an independent consultant. Mr Stockton
has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves’. The Company confirms that it is not aware of any new information or data that
information and all material assumptions and technical parameters
materially affects the
underpinning the estimates continue to apply and have not materially changed. The Company
confirms that the form and context in which the Competent Persons’ findings are presented have not
been materially modified from the original releases.
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Viking Mines Annual Report 2022
DIRECTORS’ REPORT
Viking Mines Limited
30 June 2022
Directors' Report
30 June 2022
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 2022.
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:
Charles Thomas
Julian Woodcock
Michael Cox
David Hall
Non-Executive Chairman (appointed 19 April 2022)
Managing Director and CEO
Non-Executive Director
Non-Executive Director (appointed 22 July 2021, resigned
18 May 2022)
Raymond Whitten AM
Executive Director and Chairman (resigned 2 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 profit for the consolidated entity after providing for income tax amounted to $1,389,400 (30 June 2021: loss
$4,658,604).
A more detailed review of operations is included in the Operations Report accompanying this annual report.
COVID-19
With the onset of the Coronavirus (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.
Board and Management
Charles Thomas was appointed as a Non-Executive Chairman on 19 April 2022.
David Hall was appointed as Non-Executive Director on 22 July 2021 and resigned 18 May 2022.
Raymond Whitten resigned on 2 August 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.
Ghana litigation
During the reporting period, the Company continued to pursue the unpaid proceeds of the sale of the Akoase Gold
Project through the High Court in Ghana.
22
3
Viking Mines Annual Report 2022
Viking Mines Limited
Directors' report
30 June 2021
Matters subsequent to the end of the financial year
The impact of the COVID-19 pandemic is ongoing and while it has been financially positive for the consolidated entity
up to 30 June 2022, it is not practicable to estimate the potential impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
No other matter or circumstance has arisen since 30 June 2022 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 and resources 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 pages 4 to 21 of the Annual Report for a comprehensive overview.
Tumentu Gold Project, Ghana
In September 2022, the Tumentu licence expired at the end of its 3-year term. The Company did not seek to extend it
for a subsequent term.
Butre Gold Project, Ghana
The Company is assessing if and when any work will be completed on the project.
Litigation Ghana
During the reporting period, the Company continued to pursue the unpaid proceeds of the sale of the Akoase Gold
Project through the High Court in Ghana. Refer to the detailed Operations Review on page 18 of the Annual Report for
a comprehensive overview.
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.
4
23
Viking Mines Annual Report 2022
DIRECTORS’ REPORT
Viking Mines Limited
30 June 2022
Directors' Report
30 June 2022
Information on Directors
Name:
Title:
Experience and expertise:
Charles Thomas (appointed 19 April 2022)
Non-Executive Chairman
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).
Other current ASX Listed
Directorships:
Executive Chairman of Marquee Resources Limited (ASX: MQR) since 2016
Non-Executive Director of Chase Mining Corporation Limited (ASX:CML) since 2018
Former Directorships
(last 3 years):
Nil
Interests in shares:
15,000,000
Interests in unquoted
securities:
5,000,000 Options
Name:
Title:
Julian Woodcock
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 ASX Listed
Directorships:
Former Directorships
(last 3 years):
Nil
Nil
Interests in shares:
9,000,000
Interests in unquoted
securities:
20,000,000 Performance Rights
24
Viking Mines Annual Report 2022
Viking Mines Limited
Directors' Report
30 June 2022
Name:
Title:
Michael Cox
Non-Executive Director
Experience and expertise: 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.
Nil
Non-Executive Chairman of NSX Limited (ASX:NSX) until February 2020.
Nil
5,000,000 Options
Other current ASX Listed
Directorships:
Former Directorships (last
3 years):
Interests in shares:
Interests in unquoted
securities:
Name:
Title:
David Hall (appointed 22 July 2021, resigned 18 May 2022)
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.
Other current ASX Listed
Directorships:
Former Directorships (last
3 years):
Interests in shares as at
date of resignation:
Interests in unquoted
securities (as at date of
resignation):
Nil
Nil
500,000
5,000,000 Options
Name:
Title:
Raymond Whitten AM
Executive Director and Chairman (resigned 2 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 is now
Special Counsel to that firm. Mr Whitten was formerly the Deputy Chairman of the Safety,
Return to Work and Support Board (a board formed under statute responsible for
6
25
Viking Mines Annual Report 2022
Viking Mines Limited
Directors' Report
30 June 2022
Name:
Title:
Michael Cox
Non-Executive Director
Experience and expertise: 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.
Former Directorships (last
Non-Executive Chairman of NSX Limited (ASX:NSX) until February 2020.
Other current ASX Listed
Nil
Directorships:
3 years):
Interests in shares:
Interests in unquoted
securities:
Nil
5,000,000 Options
Name:
Title:
David Hall (appointed 22 July 2021, resigned 18 May 2022)
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.
Nil
Nil
Other current ASX Listed
Directorships:
Former Directorships (last
3 years):
Interests in shares as at
date of resignation:
DIRECTORS’ REPORT
Interests in unquoted
30 June 2022
securities (as at date of
resignation):
5,000,000 Options
500,000
Name:
Title:
Raymond Whitten AM
Executive Director and Chairman (resigned 2 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 is now
Special Counsel to that firm. 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).
6
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.
Nil
Nil
57,407,881
10,000,000 Options (5,000,000 lapsed in December 2021)
Viking Mines Limited
Directors' Report
30 June 2022
Other current ASX Listed
Directorships:
Former Directorships (last 3
years):
Interests in shares as at
date of resignation:
Interests in unquoted
securities (as at date of
resignation):
'
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)
Ms Wilson has over 10 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. She is a Company Secretary at national corporate advisory firm, Emerson CoSec and acts as Company
Secretary to a number of ASX listed companies.
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.
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2022,
and the number of meetings attended by each Director were:
26
Charles Thomas (appointed 19 April 2022)
Julian Woodcock
Michael Cox
David Hall (resigned 18 May 2022)
Raymond Whitten (resigned 2 August 2021)
Held: represents the number of meetings held during the time the Director held office.
7
Directors' meetings
held
attended
2
5
5
4
0
2
5
5
4
0
Viking Mines Annual Report 2022
Viking Mines Limited
Directors' Report
30 June 2022
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 ASX Listed
Nil
Directorships:
Former Directorships (last 3
Nil
years):
Interests in shares as at
date of resignation:
Interests in unquoted
securities (as at date of
resignation):
57,407,881
10,000,000 Options (5,000,000 lapsed in December 2021)
'
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)
Ms Wilson has over 10 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. She is a Company Secretary at national corporate advisory firm, Emerson CoSec and acts as Company
Secretary to a number of ASX listed companies.
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.
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2022,
and the number of meetings attended by each Director were:
Charles Thomas (appointed 19 April 2022)
Julian Woodcock
Michael Cox
David Hall (resigned 18 May 2022)
Raymond Whitten (resigned 2 August 2021)
Held: represents the number of meetings held during the time the Director held office.
Directors' meetings
held
attended
2
5
5
4
0
2
5
5
4
0
7
27
Viking Mines Annual Report 2022
DIRECTORS’ REPORT
Viking Mines Limited
30 June 2022
Directors' report
30 June 2021
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 2022. 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.
The current remuneration policy adopted is that no element of any Director/Executive package be directly related to the
Company’s financial performance. 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:
8
28
Viking Mines Annual Report 2022
Viking Mines Limited
Directors' Report
30 June 2022
●
●
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:
●
●
●
●
●
Charles Thomas (appointed 19 April 2022)
Julian Woodcock
Michael Cox
David Hall (appointed 22 July 2021, resigned 18 May 2022)
Raymond Whitten (resigned 2 August 2021)
Short-term
benefits
Post-employment
benefits
Share-based payments
Cash
salary
and
fees
$
57,717
10,257
50,965
44,797
2022
Non-Executive Directors:
Michael Cox
Charles Thomas
(Appointed 19 Apr
2022)
David Hall (appointed
22 July 2021, resigned
18 May 2022)
Executive Directors:
Raymond Whitten
(resigned 2 August
2021)
Julian Woodcock * ^
245,000
408,736
Other
fees
Super
annuation
Long
Service
Leave
Equity
based
Performance
Rights
Total
$
$
$
$
$
$
-
-
-
-
-
-
5,772
1,026
5,303
4,480
-
-
-
-
-
-
25,000
-
-
-
-
-
63,489
11,283
81,268
49,277
24,500
6,566
72,000
64,600
412,666
41,081
6,566
72,000
64,600
617,983
9
29
Viking Mines Annual Report 2022
DIRECTORS’ REPORT
30 June 2022
30
Viking Mines Annual Report 2022 Viking Mines Limited
Directors' report
30 June 2022
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:
Julian Woodcock
Managing Director and CEO
4 January 2021
(a) Remuneration: fixed annual salary $265,000 (effective from 1 January 2022) plus
employer superannuation guarantee contribution;
(b) Termination: the Company and Mr Woodcock may terminate the employment at
any time by giving 3 months’ notice in writing. The Company may terminate Mr
Woodcock’s employment at any time by giving 6 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 were available to Mr Woodcock:
- upon completion of continuous employment to 30 November 2021 and subject to shareholder approval, Mr Woodcock
or his nominee received 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
27 November 2020
30 November 2021
15 Dec 2020
15 Dec 2021
15 Dec 2022
15 Dec 2022
$0.030
$0.030
$0.008
$0.005
Name
Number of
options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Fair value
per option
Exercise price at grant date
Raymond Whitten
Charles Thomas
Michael Cox
David Hall
5,000,000 27 Nov 2020
5,000,000 27 Nov 2020
5,000,000 27 Nov 2020
5,000,000 30 Nov 2021
15 Dec 2020
15 Dec 2020
15 Dec 2020
15 Dec 2021
15 Dec 2022
15 Dec 2022
15 Dec 2022
15 Dec 2023
$0.030
$0.030
$0.030
$0.030
$0.008
$0.008
$0.008
$0.005
Options granted carry no dividend or voting rights.
11
31
Viking Mines Annual Report 2022
DIRECTORS’ REPORT
Viking Mines Limited
30 June 2022
Directors' Report
30 June 2022
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 2022 are set out below:
Name
Raymond Whitten
Charles Thomas
Michael Cox
David Hall
Number of Number of Number of Number of
options
granted
options
granted
options
vested
options
vested
during the
during the
during the
during the
year
2022
year
2021
year
2022
year
2021
-
-
-
5,000,000
5,000,000
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 2022 are set out below:
Name
Raymond Whitten
Charles Thomas
Michael Cox
David Hall
Value of
options
granted
during the
Value of
options
exercised
during the
Value of
options
lapsed
during the
year
$
year
$
year
$
Remuneration
consisting of
options
for the
year
%
-
-
-
25,000
-
-
-
-
121,273
121,273
121,273
-
-
-
-
-
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 2022 are set out below:
Name
Grant date
Vesting date
Number of Value of
options
options
granted
granted
$
Value of
options
vested
$
Number of Value of
options
options
lapsed
lapsed
$
Raymond Whitten 27 Nov 2020
27 Nov 2020
Charles Thomas
27 Nov 2020
Michael Cox
30 Nov 2021
David Hall
6 Dec 2021
6 Dec 2021
6 Dec 2021
15 Dec 2021
5,000,000
5,000,000
5,000,000
5,000,000
-
-
-
25,000
- 5,000,000
- 5,000,000
- 5,000,000
-
25,000
121,273
121,273
121,273
-
Additional information
The earnings of the consolidated entity for the five years to 30 June 2022 are summarised below:
2022
$
2021
$
2020
$
2019
$
2018
$
Profit/(loss) after income tax
1,389,400
(4,650,715)
(710,959)
(496,472)
1,686,868
2022
2021
2020
2019
2018
Share price at financial year end ($)
$0.006
$0.029
$0.007
$0.010
$0.025
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
0.14
0.14
(0.78)
(0.78)
(0.23)
(0.23)
(0.16)
(0.16)
0.54
0.54
2022
2021
2020
2019
2018
32
Viking Mines Annual Report 2022
Viking Mines Limited
Directors' report
30 June 2022
*
**
The balance at the end of the year represents the balance at date of resignation
The balance as at date of appointment, 19 April 2022
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:
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
Options over ordinary shares
Raymond Whitten (resigned 2 August 2021)* 10,000,000
10,000,000
Charles Thomas
10,000,000
Michael Cox
Julian Woodcock
-
David Hall (resigned 18 May 2022)*
30,000,000
-
-
-
-
5,000,000
5,000,000
5,000,000
5,000,000
-
5,000,000
5,000,000
-
5,000,000
5,000,000
-
-
-
-
-
5,000,000
-
- 15,000,000 20,000,000
*
The balance at the end of the year represents the balance at date of resignation
Options over ordinary shares
Raymond Whitten (resigned 2 August 2021)*
Charles Thomas
Michael Cox
David Hall (resigned 18 May 2022)*
Vested and Vested and
exercisable unexercisable
Balance at
the end of
the year
5,000,000
5,000,000
5,000,000
5,000,000
20,000,000
-
5,000,000
-
5,000,000
-
5,000,000
5,000,000
-
- 20,000,000
*
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
27 November 2020
30 November 2021
Exercisable on or before 15 December 2022
Exercisable on or before 15 December 2023
$0.030 15,000,000
5,000,000
$0.030
20,000,000
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.
13
33
Viking Mines Annual Report 2022
DIRECTORS’ REPORT
Viking Mines Limited
30 June 2022
Directors' report
30 June 2021
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 Audit & Assurance Pty Ltd
There are no officers of the Company who are former partners of Rothsay Audit & Assurance Pty Ltd.
Auditor's independence and non-audit services
Section 307C of the Corporations Act 2001 requires our auditors, Rothsay Audit & Assurance Pty Ltd, to provide the
Directors of the Company with an Independence Declaration in relation to the audit of the annual report. This
Independence Declaration is set out on the next page and forms part of this Directors’ report for the year ended 30 June
2022.
Auditor
On 13 September 2022 Rothsay Audit & Assurance Pty Ltd were appointed the Company’s Auditor, following resignation
of the firm of “Rothsay Auditing” and receipt of ASIC’s consent to that resignation1.
Rothsay Auditing completed the review of Viking Mines Limited for the half-year ended 31 December 2021. Rothsay
Audit & Assurance Pty Ltd completed the audit of Viking Mines Limited for the financial year ended 30 June 2022.
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
___________________________
Charles Thomas
Non-Executive Chairman
30 September 2022
1 Refer VKA ASX Announcement dated 13 September 2022: Change of Auditors
14
34
Viking Mines Annual Report 2022
AUDITOR’S INDEPENDENCE DECLARATON
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 2022, 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 Audit & Assurance Pty Ltd
Donovan Odendaal
Director
30 September 2022
35
Viking Mines Annual Report 2022 ANNUAL FINANCIAL STATEMENTS
CONTENTS
37
Statement of Profit or Loss and Other Comprehensive Income
38
Statement of Financial Position
39
Statement of Changes in Equity
40
Statement of Cash Flows
41
Notes to the Financial Statements
67
Independent Auditor’s Report
71
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 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 2022. The Directors have the power to amend and reissue the financial
statements.
36
Viking Mines Annual Report 2022
STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
Viking Mines Limited
For the year ended 30 June 2022
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2022
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
Profit/(loss) before income tax expense
Note
Consolidated
2022
$
2021
$
4
4,155,806
152,375
21
9
10
18
(24,000)
(199,127)
(689,573)
(63,642)
(62,619)
-
--
279,712
(161,600)
-
(1,188,755)
(656,802)
(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)
1,389,400
(4,658,604)
Income tax expense
5
-
-
Profit/(loss) after income tax expense for the year attributable to the owners
of Viking Mines Limited
16
1,389,400
(4,658,604)
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
7,889
Total comprehensive income for the year attributable to the owners of Viking
Mines Limited
1,389,400
(4,650,715)
Basic earnings per share
Diluted earnings per share
Cents
Cents
31
31
0.14
0.14
(0.78)
(0.78)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
Viking Mines Annual Report 2022
37
STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
Viking Mines Limited
Statement of Financial Position
As at 30 June 2022
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
Note
Consolidated
2022
$
2021
$
6
7
8
4,445,411
22,282
43,731
4,511,424
3,076,877
221,694
54,063
3,352,634
9
10
8
123,008
4,100,000
12,727
4,235,735
185,627
4,100,000
85,667
4,371,294
8,747,159
7,723,928
11
12
13
12
13
383,425
29,463
66,811
479,699
752,514
44,745
58,380
855,639
7,245
69,306
76,551
2,011
136,118
138,129
556,251
993,768
8,190,908
6,730,160
14
15
16
31,902,027 31,830,027
(359,387)
(23,999,255)
7,471,385
(741,225)
(723,859)
(22,987,260)
8,190,908
-
8,190,908
6,730,160
The above statement of financial position should be read in conjunction with the accompanying notes
38
Viking Mines Annual Report 2022
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022
39
Viking Mines Annual Report 2022 STATEMENT OF CASH FLOWS
Viking Mines Limited
For the year ended 30 June 2022
Statement of Cash Flows
For the year ended 30 June 2022
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Other income
ATO COVID-19 cash flow boost received
ATO fuel rebate received
Interest expense
Proceeds from legal dispute
Note
Consolidated
2022
$
2021
$
(2,997,664) (3,324,716)
636
-
48,965
19,285
-
-
336
450
-
25,850
(8,472)
4,017,140
Net cash used in operating activities
29
1,037,640
(3,255,830)
Cash flows from investing activities
Payments for exploration and evaluation
Payments for plant & equipment
Payments for security deposits
10
8
- (30,205)
-
(132,042)
(12,727)
96,311
Net cash used in investing activities
83,584
(162,247)
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Repayment of lease liabilities
Net cash from financing activities
14
14
- 5,534,296
(341,341)
-
-
(58,380)
(58,380)
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
1,062,844 1,774,878
1,417,196
3,076,877
(115,197)
305,690
Cash and cash equivalents at the end of the financial year
6
4,445,411
3,076,877
The above statement of cash flows should be read in conjunction with the accompanying notes
40
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
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 profit after tax of $1,389,400 (2021: Loss $(4,658,604)) and net cash inflow from
operations of $1,037,640 (2021: outflow $3,255,830) for the year ended 30 June 2022. At year end, cash and cash
equivalents were $4,445,411 (2021: $3,076,877). 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.
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.
21
41
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
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 2022 (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.
42
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 1. Significant accounting policies (continued)
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
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.
43
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 1. Significant accounting policies (continued)
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.
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.
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.
44
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 1. Significant accounting policies (continued)
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.
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.
45
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 1. Significant accounting policies (continued)
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.
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.
46
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 1. Significant accounting policies (continued)
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 2022.
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.
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.
47
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Exploration and evaluation costs
Exploration and evaluation costs which 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 which costs are to be capitalised and includes determining
expenditures which are 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 two geographical locations –
Ghana 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.
Note 4. Revenue
NOTE 4. REVENUE
ATO COVID-19 cash flow boost
ATO fuel rebate
Other income
Interest revenue
Revenue
Consolidated
2022
$
2021
$
-
21,650
4,133,820
336
48,965
23,485
79,289
636
4,155,806
152,375
28
48
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
NOTE 5. INCOME TAX EXPENSE
Numerical reconciliation of income tax expense and tax at the statutory rate
Tax at the statutory tax rate of 25% (2021: 26%)
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 profits covered by losses
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% (2021: 26%)
Consolidated
2022
$
2021
$
1,389,400
(4,658,604)
347,350
(1,211,237)
15,655
40,400
(98,040)
-
(25,726)
183,928
43,998
42,046
(12,731)
75,377
279,639
(279,639)
-
(878,619)
-
878,619
-
-
Consolidated
2022
$
2021
$
5,843,825
6,179,139
1,460,956
1,544,785
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
2022
$
2021
$
9,177
-
12,157
2,600
9,177
14,757
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.
29
49
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
NOTE 6. CASH AND CASH EQUIVALENTS
Consolidated
2022
$
2021
$
4,445,411
3,076,877
Consolidated
2022
$
2021
$
-
22,282
613
221,081
22,282
221,694
Consolidated
2022
$
2021
$
8,000
35,731
7,688
46,375
43,731
54,063
12,727
85,667
56,458
139,730
Consolidated
2022
$
2021
$
185,627
(62,619)
187,857
(2,230)
123,008
185,627
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
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.
30
50
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
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
2022
$
2021
$
-
-
-
-
3,244,205
(2,250,000)
(994,205)
-
4,100,000
4,100,000
4,100,000
4,100,000
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2020
WA tenement assets*
Impairment charge
Balance at 30 June 2021
Additions through purchase of
WA tenement assets *
Impairment charge
Western
Australia
Ghana –
Akoase
Gold Project Gold Project Gold Project
$
Ghana –
Tumentu
$
$
Total
$
-
4,100,000
-
4,100,000
-
-
-
-
-
-
-
-
-
664,340
30,205
(694,545)
664,340
4,130,205
(694,545)
-
4,100,000
-
-
-
-
-
4,100,000
Balance at 30 June 2022
4,100,000
*
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 2022. 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.
31
51
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
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
2022
$
2021
$
14,963
341,316
27,146
292,100
437,538
22,876
383,425
752,514
Consolidated
2022
$
2021
$
29,463
44,745
7,245
2,011
36,708
46,756
Provision for employee benefits represents amounts accrued for annual leave and long service leave.
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.
32
52
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
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
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
2022
$
2021
$
66,811
58,380
69,306
136,118
136,118
194,498
194,498
-
58,380
-
194,498
-
136,118
194,498
Ordinary shares - fully paid
1,102,258,431 1,021,258,431
31,902,027
31,830,027
Consolidated
2022
Shares
2021
Shares
2022
$
2021
$
33
53
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
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
Balance
Date
Shares
Issue price
$
Number of
1 July 2020
313,717,856
22,537,072
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
22,537,072
470,577
564,785
219,510
279,424
$0.010
$0.010
$0.010
$0.010
1 February 2021
1 February 2021
1 February 2021
22 April 2021
30 June 2021
410,000,000
33,000,000
-
111,111,111
-
1,021,258,431
$0.010
$0.010
$0.036
4,100,000
330,000
(330,000)
4,000,000
(341,341)
31,830,027
72,000
Ordinary shares issued
30 November 2021
4,000,000
Balance
30 June 2022
1,025,258,431
31,902,027
Movements in options
Details
Balance
Unlisted Options issued to Directors
Balance
Unlisted Options issued to Directors
Expired
Balance
Movements in performance shares
Details
Balance
Performance Shares issued to the vendors of Red Dirt Mining Pty
Ltd (RDM) as consideration for 100% of the issued share capital of
RDM
Balance
Balance
54
Date
Number of
Options
1 July 2020
27 November 2020
15,000,000
15,000,000
30 June 2021
30 November 2021
15 December 2021
30,000,000
5,000,000
(15,000,000)
30 June 2022
20,000,000
Date
Number of
Performance
Shares
1 July 2020
-
1 February 2021
85,000,000
30 June 2021
85,000,000
30 June 2022
85,000,000
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 14. Issued capital (continued)
Movements in performance rights
Details
Date
Number of
Performance
Shares
Balance
Issue of performance rights to Julian Woodcock
30 June 2021
30 November 2021
-
20,000,000
Balance
30 June 2022
20,000,000
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.
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 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.
5,000,000 Unlisted Options were issued to a Director, each with an exercise price of $0.0300 per option, vesting
immediately on issue date 30 November 2021, and expiring on 15 December 2023.
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)
200koz 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;
undertaking 5,000 metres of drilling on the project with 6 holes of more than 8g/t over 3 metres each;
(ii)
(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.
55
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2021
NOTE 15. RESERVES
Foreign currency reserve
Share-based payments reserve
Consolidated
2022
$
2021
$
(982,683)
258,824
(892,431)
533,044
(723,859)
(359,387)
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 2020
Foreign currency translation
Share-based payments, note 32
Balance at 30 June 2021
Foreign currency translation
Share-based payments, note 32
Balance at 30 June 2022
NOTE 16. ACCUMULATED LOSSES
Accumulated losses at the beginning of the financial year
Profit/(loss) after income tax expense for the year
Adjustments for share based payment and non-controlling interest
Accumulated losses at the end of the financial year
Foreign
currency
reserve
$
Share-based
payments
reserve
$
(900,320)
7,889
-
363,820
-
169,224
(892,431)
(90,252)
-
533,044
-
(274,220)
Total
$
(536,500)
7,889
169,224
(359,387)
(90,252)
(274,220)
(982,683)
258,824
(723,859)
Consolidated
2022
$
2021
$
(23,999,255)
1,389,400
(377,405)
(19,340,651)
(4,658,604)
-
(22,987,260)
(23,999,255)
NOTE 17. DIVIDENDS
There were no dividends paid, recommended or declared during the current or previous financial year.
36
56
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
NOTE 18. SHARE-BASED PAYMENTS
Options
Options
Class
Exercise price
Number
under option
Unlisted Director Options, issued as part of
share-based compensation for remuneration
Vested on 15 December 2020
Expiring on 6 December 2022
Unlisted Director Options, issued as part of
share-based compensation for remuneration
Vested on 15 December 2021
Expiring on 15 December 2023
$0.0300
15,000,000
$0.0300
5,000,000
20,000,000
Refer to note 32 for details on valuation model inputs to determine fair value.
Equity incentive shares
Per Julian Woodcock's service agreement as Chief Executive Officer commencing 4 January 2021, 4,000,000 Shares were
approved by Shareholders on 25 November 2021 and subsequently issued on 30 November 2021.
Performance Rights
Per Julian Woodcock's service agreement as Chief Executive Officer commencing 4 January 2021, the following
performance right tranches are available subject to achievement of the milestones:
(a) 4,000,000 performance rights upon achievement of performance milestone - resource target - attainment of 200koz;
(b) 4,000,000 performance rights - 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 rights - upon achievement of performance milestone - share price tranche 1 $0.10;
(d) 4,000,000 performance rights - upon achievement of performance milestone - share price tranche 2 $0.15; and
(e) 4,000,000 performance rights - 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 rights, 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.
37
57
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 19. Financial instruments (continued)
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.
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.
38
58
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
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 - 2022
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing - variable
Lease liability
Total non-derivatives
Consolidated - 2021
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Interest-bearing - variable
Lease liability
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
$
-
-
14,963
368,462
-
-
5.00%
66,811
450,236
72,100
72,100
-
-
-
-
-
-
-
-
14,963
368,462
138,911
522,336
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
461,7747
210,078
963,952
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:
Charles Thomas
Michael Cox
Julian Woodcock
David Hall
Raymond Whitten
Appointed as Non-Executive Chairman 19 April 2022
Appointed 22 July 2021, resigned 18 May 2022
Resigned 2 August 2021
39
59
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
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
Consolidated
2022
$
2021
$
408,736
41,081
6,566
161,600
393,488
35,470
1,823
169,224
617,983
600,005
NOTE 21. REMUNERATION OF AUDITORS
During the financial year the following fees were paid or payable for services provided by Rothsay Audit & Assurance Pty
Ltd, the auditor of the Company, and unrelated firms:
Audit or review of the financial statements
Audit services - Rothsay Auditing
Audit services - Rothsay Audit & Assurance Pty Ltd
Audit services - unrelated firms
Audit or review of the financial statements
Consolidated
2022
$
2021
$
9,000
15,000
39,000
-
-
162,144
NOTE 22. CONTINGENT ASSETS
Ghana litigation
The Company received a payment of USD 3 million on 29 July 2021 as part settlement owed by BXC Company Ghana
Ltd and Cheng Yi, towards the uncompleted sale of the Akoase Gold Project in Ghana. The High Court of Ghana
(Commercial Division) is yet to rule on the amount to be awarded to the Company in relation to the expected USD 2
million in royalties from production, costs and interest associated with the claim. The USD 3 million received to date is
considered by the Company to be a component of the, yet to be determined, total settlement and that the sale remains
uncompleted. The Board remains confident that the Company will receive a positive judgement for this claim.
NOTE 23. CONTINGENT LIABILITIES
During the year a claim was made against the Company seeking an amount of US$71,500 regarding alleged success
fees to a corporate advisory firm for the uncompleted sale of the Akoase Gold Project which commenced in 2015. The
Company is legally represented, denies it is liable to pay the amount and intends to defend the claim vigorously.
NOTE 24. COMMITMENTS
The Company had no capital commitments as at 30 June 2022 and 30 June 2021.
60
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2021
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:
Consolidated
2022
$
2021
$
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
50,000
586
305,625
943
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
-
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
2022
$
2021
$
(2,289,902)
(4,572,025)
(2,289,902)
(4,572,025)
41
61
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
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
2022
$
2021
$
4,466,386
3,297,234
20,341,629 18,805,002
455,666
815,548
533,485
951,666
31,902,027 31,830,027
533,044
(14,509,735)
258,824
(12,352,707)
19,808,144 17,853,336
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 2022 and 30 June 2021.
Contingent liabilities
During the year a claim was made against the Company seeking an amount of US$71,500 regarding alleged success fees
to a corporate advisory firm for the uncompleted sale of the Akoase Gold Project which commenced in 2015. The
Company is legally represented, denies it is liable to pay the amount and intends to defend the claim vigorously. The
parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 and 30 June 2021.
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.
42
62
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the financial statements
30 June 2022
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
Ownership interest
2021
%
2022
%
Australia
Australia
Mongolia
Mongolia
Mongolia
Mongolia
Australia
Australia
Ghana
Australia
100%
0%
0%
0%
0%
0%
100%
0%
100%
100%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
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
No other matter or circumstance has arisen since 30 June 2022 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.
NOTE 29. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH USED IN OPERATING ACTIVITIES
Profit/(loss) after income tax expense for the year
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
Net cash used in operating activities
43
Consolidated
2022
$
2021
$
1,389,400
(4,658,604)
62,619
-
161,600
(279,712)
(116,230)
2,230
705,183
169,224
112,448
6,641
198,799
301
(369,089)
(10,048)
(214,882)
(4,723)
602,275
24,378
1,037,640
(3,255,830)
63
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
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'
NOTE 31. EARNINGS PER SHARE
Consolidated
2022
$
2021
$
-
187,857
-
-
4,100,000
330,000
-
4,617,857
Consolidated
2022
$
2021
$
Profit/(loss) after income tax attributable to the owners of Viking Mines Limited
1,389,400
(4,658,604)
Basic earnings per share
Diluted earnings per share
Cents
Cents
0.14
0.14
(0.15)
(0.15)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
1,021,258,431 595,889,513
Weighted average number of ordinary shares used in calculating diluted earnings per share 1,021,258,431 595,889,513
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 2020
Expiring on 6 December 2022
Unlisted Director Options, issued as part of
share-based compensation for remuneration
Vested on 15 December 2021
Expiring on 15 December 2023
Exercise price
Number
under option
$0.0300
15,000,000
$0.0300
5,000,000
20,000,000
44
64
Viking Mines Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
Viking Mines Limited
30 June 2022
Notes to the Financial Statements
30 June 2022
Note 32. Options (continued)
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:
Number of
options
2022
Weighted
average
exercise price
2022
Number of
options
2021
Weighted
average
exercise price
2021
Outstanding at the beginning of the financial year
Granted
Expired
30,000,000
5,000,000
15,000,000
$0.030 15,000,000
$0.030 15,000,000
-
$0.000
$0.030
$0.030
$0.000
Outstanding at the end of the financial year
20,000,000
$0.030 30,000,000
$0.030
Exercisable at the end of the financial year
20,000,000
$0.030 30,000,000
$0.030
2022
Grant date
Expiry date
06/12/2018
27/11/2020
30/11/2021
06/12/2021
15/12/2022
15/12/2023
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
$0.030 15,000,000
$0.030 15,000,000
$0.030
30,000,000
-
5,000,000
5,000,000
-
- (15,000,000)
- 15,000,000
-
-
5,000,000
- (15,000,000) 20,000,000
Weighted average exercise price
$0.030
$0.030
$0.030
$0.030
$0.030
2021
Grant date
Expiry date
04/07/2017
06/12/2018
30/06/2020
06/12/2021
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
$0.046 12,000,000
$0.030 15,000,000
27,000,000
-
-
-
-
-
-
(12,000,000)
-
- 15,000,000
(12,000,000) 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
30/11/2021
06/12/2021
15/12/2022
15/12/2023
2022
2021
Number
Number
- 15,000,000
15,000,000 15,000,000
-
5,000,000
20,000,000 30,000,000
45
65
Viking Mines Annual Report 2022
DIRECTORS’ DECLARATION
Viking Mines Limited
30 June 2022
Directors' Declaration
30 June 2022
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 2022 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
___________________________
Charles Thomas
Non-Executive Chairman
30 September 2022
47
66
Viking Mines Annual Report 2022
INDEPENDENT AUDITOR’S REPORT
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 2022, 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.
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 2022 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.
67
Viking Mines Annual Report 2022
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED (continued)
Key Audit Matter – Exploration and Evaluation
Expenditure
How our Audit Addressed the Key Audit Matter
The Group continues to capitalise the cost of
tenements acquired from Red Dirt Mining in 2021
financial year. The balance at 30 June 2022 year
end makes up 47% 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.
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.
Key Audit Matter - Share-Based Payments
How our Audit Addressed the Key Audit Matter
The Group recorded share-based payments in the
current year of $161,600.
Share based payments are considered to be a key
audit matter due to:
•
•
the complexities involved in the
recognition and measurement of these
instruments; and
the judgement involved in determining
the inputs used in the valuations.
Management used the Black-Scholes option
valuation model to determine the fair value of
the options issued, as well as binomial valuation
model to determine the fair value of the
performance rights granted. In both cases the
process involved estimations and judgements to
determine the fair value of the equity
instruments granted.
Our procedures over the existence of the Group’s
share-based payments included but were not limited
to:
• Assessing the amount recognised during the
year in accordance with the vesting
conditions of the agreements;
• Reviewing management’s valuation of
share-based payments; and
• Reviewing the compliance of accounting
treatment of the share-based payments with
AASB 2 Share-based Payment.
We have also assessed the appropriateness of the
disclosures included in the financial report.
68
Viking Mines Annual Report 2022
INDEPENDENT AUDITOR’S 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 2022, 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.
69
Viking Mines Annual Report 2022
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
VIKING MINES LIMITED (continued)
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.
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 2022.
In our opinion the remuneration report of Viking Mines Limited for the year ended 30 June 2022 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 Audit & Assurance Pty Ltd
Dated 30 September 2022
Donovan Odendaal
Director
70
Viking Mines Annual Report 2022 Viking Mines Limited
Shareholder Information
30 June 2022
SHAREHOLDER INFORMATION
30 June 2022
The following additional information is required by the Australian Securities Exchange in respect of ASX
listed public companies and is current as at 31 August 2022.
Fully Paid Ordinary Shares
The Company has 1,025,258,431 ordinary fully paid shares on issue, held by 1,461 shareholders. Each
ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting
or by proxy has one vote on a show of hands.
Distribution of Shareholders
Category (size of holding)
Total Holders
Number
Ordinary
% Held of Issued
Ordinary Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Unmarketable Parcels
42
15
49
707
648
9,751
57,372
447,167
33,357,156
991,386,985
1,461
1,025,258,431
0.00
0.01
0.04
3.25
96.70
100.00
Number of Shares
18,889,325
Holders
650
As at 31 August 2022, there were 650 shareholders holding less than a marketable parcel of shares.
Performance Shares
The Company has 85,000,000 Performance Shares on issue. Performance Shares do not entitle the
holders to vote in respect of that Performance Share, nor participate in dividends, when declared, until
such time as the Performance Shares vest and are subsequently registered as ordinary shares.
Performance Shares (expiring on 1 February 2026)
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
81
8
-
-
-
-
-
-
-
-
85,000,000
85,000,000
100.00
100.00
1. Vanguard Superannuation Pty Ltd holds 17,595,000 performance shares comprising
20.70% of this class; ING Investment Fund Pty Ltd holds 17,595,000 performance
shares comprising 20.70% of this class.
Performance Rights
The Company has 20,000,000 Performance Rights on issue. Performance Rights do not entitle the holders
to vote in respect of that performance right, nor participate in dividends, when declared, until such time
as the performance rights vest and are subsequently registered as ordinary shares.
52
71
Viking Mines Annual Report 2022
Viking Mines Limited
Shareholder Information
30 June 2022
SHAREHOLDER INFORMATION
30 June 2022
Performance Rights (expiring on 30 November 2026)
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
11
1
-
-
-
-
-
-
-
-
20,000,000
20,000,000
100.00
100.00
Options
The Company has 20,000,000 unlisted options on issue, as set out below. Options do not entitle the
holders to vote in respect of that option, nor participate in dividends, when declared, until such time as
the options are exercised and subsequently registered as ordinary shares.
Unlisted Options exercisable at $0.03 on or before 15 December 2022
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
31
3
-
-
-
-
-
-
-
-
15,000,000
15,000,000
100.00
100.00
1. Barbary Coast Investments Pty Ltd holds 5,000,000 options comprising 33.33% of this class; Mounts Bay
Investments Pty Ltd holds 5,000,000 options comprising 33.33% of this class; Chaoxs Pty
Ltd holds 5,000,000 options comprising 33.33% of this class.
Unlisted Options exercisable at $0.03 on or before 30 November 2023
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
11
1
-
-
-
-
-
-
-
-
5,000,000
5,000,000
100.00
100.00
1. David James Hall & Trudi Suzanne Hall holds 5,000,000 options comprising 100.00%
of this class.
Restricted Securities
The Company has no restricted securities on issue.
Substantial Shareholders
Number of Ordinary Fully Paid Shares Held
Vanguard Superannuation Pty Ltd1
ING Investment Fund Pty Ltd2
1. As released on ASX on 22 April 2021
2. As released on ASX on 10 May 2021
101,500,000
91,300,000
% Held of Issued Ordinary
Capital
9.94%
8.93%
72
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Viking Mines Annual Report 2022
Viking Mines Limited
Shareholder Information
30 June 2022
SHAREHOLDER INFORMATION
30 June 2022
20 Largest Shareholders — Ordinary Shares as at 31 August 2022
Rank / Name
Number of Ordinary
Fully Paid Shares
Held
% Held of
Issued
Ordinary
Capital
VANGUARD SUPERANNUATION PTY LTD
ING INVESTMENT FUND PTY LTD
SYRACUSE CAPITAL PTY LTD
1.
2.
3.
4.
BARBARY COAST INVESTMENTS PTY LTD
CITYSCAPE ASSET PTY LTD
LESAMOURAI PTY LTD
MR ANTHONY KEITH AVOTINS
CITICORP NOMINEES PTY LIMITED
SYRACUSE CAPITAL PTY LTD
5.
6.
7.
8.
9.
10. GTT GLOBAL OPPORTUNITIES PTY LTD
11. BNP PARIBAS NOMINEES PTY LTD BARCLAYS
12. ALISSA BELLA PTY LTD
13. TWO TOPS PTY LTD
14. BROWN BRICKS PTY LTD
15. CELTIC CAPITAL PTY LTD
16. BEDROCK INVESTMENT GROUP PTY LTD
17. SIMWISE DEVELOPMENTS PTY LTD
18. TORONA PTY LTD
19. MAZZA RESOURCES PTY LTD
20.
PRINCIPAL GLOBAL INVESTMENTS PTY LTD
TOTAL
On-market Buy-Back
There is no current on-market buy-back.
91,500,000
81,300,000
41,000,000
38,638,655
30,000,000
27,954,121
25,000,000
24,784,675
17,593,252
15,000,000
13,566,667
12,550,000
12,550,000
12,000,000
10,000,000
9,000,000
8,500,000
8,359,858
8,000,000
7,833,028
8.92
7.93
4.00
3.77
2.93
2.73
2.44
2.42
1.72
1.46
1.32
1.22
1.22
1.17
0.98
0.88
0.83
0.82
0.78
0.76
495,130,256
48.29%
Corporate Governance Statement
The Company’s Corporate Governance Statement for the 2022 financial year is available from the
Company’s website at https://vikingmines.com/corporate-governance/
54
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Viking Mines Annual Report 2022
Viking Mines Limited
Shareholder Information
SHAREHOLDER INFORMATION
30 June 2022
30 June 2022
Tenement schedule
Licence name,
Licence type
Location
Licence Holder / JV
Partners*
Viking Mines
Ownership
M30/0091
Mining licence
M30/0099
Mining licence
P30/1125
Prospecting licence
P30/1126
Prospecting licence
P30/1137
Prospecting licence
P30/1144
Prospecting licence
E29/1133
Exploration licence
E30/0529
Exploration licence
E29/1131
Exploration licence
E29/1169
Exploration licence
P29/2652
Prospecting licence
P30/1160
Prospecting licence
^ under application
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
Viking Mines Ltd
100%
Western Australia
Red Dirt Mining Pty Ltd
100%
Western Australia
Red Dirt Mining Pty Ltd
100%
Western Australia
Viking Mines Ltd
Western Australia
Viking Mines Ltd
100%
100%
Western Australia
Viking Mines Ltd
100%^
Western Australia
Red Dirt Mining Pty Ltd
100%^
Western Australia
Viking Mines Ltd
100%^
Western Australia
Red Dirt Mining Pty Ltd
100%^
55
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Viking Mines Annual Report 2022
Viking Mines Annual Report 2022