ANNUAL REPORT
For the year ended 30 June 2020
VOLT RESOURCES LTD
ANNUAL REPORT
For the year ended 30 June 2020
Contents
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional ASX Information
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VOLT RESOURCES LTD
ANNUAL REPORT
For the year ended 30 June 2020
Corporate Directory
Non-Executive Chairman
Managing Director
Non-Executive Director
Directors
Mr. Asimwe Kabunga
Mr. Trevor Matthews
Mr. Giacomo Fazio
Company Secretary
Ms Susan Hunter
Registered Office
Level 25
108 St Georges Terrace
Perth WA 6000
Telephone: +61 8 9486 7788
Business Offices
Level 25
108 St Georges Terrace
Perth WA 6000
Volt Graphite Tanzania Plc
C/- Level 1, Golden Heights Building, Wing B
Plot No 1826/17 Chole Road
Msasani Peninisula, Masaki
PO Box 80003
Dar es Salaam, Tanzania
Website and Email
www.voltresources.com
info@voltresources.com
Share Registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
Telephone: +61 8 9389 8033
Facsimile: +61 8 9262 3723
Auditors
HLB Mann Judd (WA Partnership)
Level 4
130 Stirling Street
Perth WA 6000
Securities Exchange
ASX:VRC
3
VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
Your Directors submit the financial report of Volt Resources Limited (the Company) and its Controlled Entities
(Consolidated Entity) for the year ended 30 June 2020.
DIRECTORS
The names of Directors who held office during or since the end of the year:
Asimwe Kabunga
Stephen Hunt
Giacomo Fazio
Non-Executive Chairman
Non-Executive Director (resigned 1 May 2020)
Non-Executive Director (appointed 1 July 2019)
Trevor Matthews Managing Director (appointed 1 May 2020)
PRINCIPAL ACTIVITIES
The principal activity of the Consolidated Entity during the financial year was graphite exploration and evaluation
activities in Tanzania.
RESULTS
The loss after tax for the year ended 30 June 2020 was $3,134,096 (2019: $3,483,275).
REVIEW OF OPERATIONS
Overview
Key operational highlights during the 2020 financial year included:
Gold
The June quarter saw activity in relation to Volt’s progression in establishing a new gold business whilst
continuing with the development of its Bunyu Graphite Project in Tanzania.
The creation of a new gold business provides Volt shareholders with the opportunity to participate in the
potential value accretion from gold exploration and development activities at a time when gold prices are at
historical record levels, particularly through leveraging the Company’s existing extensive networks in Africa.
Gold Projects Guinea
During May 2020 Volt entered into an agreement to acquire three highly prospective gold projects located in
Guinea, Africa. The projects comprise six permits (“Permits”) with a total area of 388km2 in the prolific Siguiri
Basin which forms part of the richly mineralised West African Birimian Gold Belt.
The Company is to acquire all of the issued capital of Gold Republic Pty Ltd. Gold Republic is the legal and
beneficial holder of all of the issued share capital in each of Norsk Gold Pte. Ltd, (a registered Singapore entity
which in turn is the legal and beneficial holder of all of the issued share capital in Novo Mines Sarlu) and KB Gold
Sarlu. Novo Mines and KB Gold hold 100% of the legal and beneficial interests in the Permits.
Completion of the acquisition occurred subsequent to the year end following shareholder approval at a general
meeting held on 20 July 2020.
Guinea Projects and Permits
Volt has six permits and has formed them into three projects – the Kouroussa Project, Mandiana Project and
Konsolon Project. See Figure 2 below for the project and permit locations.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
The Kouroussa Project is formed by three permits, the Kouroussa, Kouroussa West and Fadougou permits. The
Kouroussa and Kouroussa West permits border PDI’s Kaninko Project which was the subject of a recently
announced discovery of high-grade gold mineralization.
The Konsolon Project constitutes one large permit named Konsolon. The permit has a NW-SE trending soil
geochemical anomaly identified by previous explorers.
The Mandiana Project is formed by the Nzima and Monebo permits. The Nzima permit area surrounds the Nzima
gold deposit which is operated by small scale miners.
Figure 2. The Permits located in the Suguiri Basin which forms part of the richly mineralised West African
Birimian Gold Belt.
Konsolon Project
Historical data compilation of the Konsolon Permit has identified multiple "gold in soil" anomalies between 1 to
2.5km in length. This project is located ~20km West from Nordgold's Lefa Gold Mine which has resources and
reserves of over 6 million ounces.
The company has undertaken additional review of the Konsolon legacy soil geochemistry. Multiple gold in soil
anomalies were identified between 1.0km and 2.5km in length across this permit.
Review of soil samples in this dataset has identified high grade gold including 20.25g/t, 12.87g/t, 5.12g/t, 4.97g/t
and 3.21g/t.
Volt plans to collect grab samples across prospective zones prior to undertaking an auger geochemistry program
in Q4 2020 to refine drill targets.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
Kouroussa Project
The desktop studies and initial site visits have identified the presence of Birimian greenstone sequences in all
Kouroussa Project permits. The geology is similar to the nearby Kouroussa and Kiniero Gold Projects currently in
development.
In the Kouroussa area, significant artisanal workings have been mapped along a NE interpreted structural trend
through the Kouroussa and Fadougou permits. Gold panning of material from one of the artisanal pits produced
visible gold. This structural trend hosts the Predictive Discovery and Cassidy Gold Projects.
Volt has extended its Kouroussa West permit area to the south, doubling its size. Active small scale gold mining
has been identified 1.5km south of the permit area.
Mandiana Project
Volt's in-country geology team commenced field activities in its Monebo and Nzima permits. The Nzima permit
is in close proximity to the Nzima large artisanal mining operation. Work completed includes:
•
•
•
Geological mapping of artisanal workings and collection of grab samples.
Numerous active artisanal workings have been mapped across both permits.
A total of 90 grab samples have been collected in Monebo (11 grab samples) and Nzima (79 grab
samples) permits. The samples have been despatched to SGS Mali for analysis.
Luiri Hill Gold Project - Zambia
On 21 May 2020, the Company announced it had entered into an agreement to acquire an 85% interest in the
Luiri Hill Gold Project (“Luiri Project”) located in south-central Zambia, 120km west-northwest of the Zambian
capital of Lusaka.
Shareholder approval for the issue of shares to acquire the Luiri Project was obtained at a general meeting held
on 20 July 2020. The negotiations with the project vendors to finalise the Share Sale Deed and supplementary
agreements have been extended and difficult to finalise. In addition, issues identified in the due diligence
process in relation to the corporate entities holding the licences and other matters has raised concerns in
relation to completing the acquisition.
Graphite
The Company remains focused on development of its wholly-owned Bunyu Graphite Project in Tanzania. The
Bunyu Graphite Project is ideally located near to critical infrastructure with sealed roads running through the
project area and ready access to the deep-water port of Mtwara 140km to the south east.
Bunyu Stage 1 Note Issue Developments
Volt’s 100% owned Tanzanian subsidiary Volt Graphite Tanzania Plc (“VGT”) is undertaking a private placement
of Notes that will be listed on the Development and Enterprise Market (“DEM”) of the Stock Exchange of
Mauritius (“SEM”). The Note offer is seeking to raise US$15,000,000 through the issue of Senior Notes – with a
greenshoe option of up to US$15,000,000 – to raise up to US$30,000,000. In December, VGT’s application for
the listing of Notes was approved by the Stock Exchange of Mauritius’ listing executive committee.
The Company and its advisor, Alphier Capital (formerly Exotix Capital) along with local brokers, commenced
investor meetings from 27 January 2020 as part of a roadshow to market the Notes to sophisticated investors.
Due to the widespread impact of the COVID-19 pandemic on financial markets and the associated delays as
institutions and investment groups changed their work arrangements leading to delays in conducting due
diligence and the deferral of investment decisions, the Company provided potential investors with additional
time to complete these processes.
The Mauritian Note offer was extended to close on 30 June 2020 and prior to the year end was further extended
to 30 September 2020.
A number of alternative funding proposals were presented to the Company as result of the engagement with
numerous investment groups as part of the Note offer marketing process with some of these currently being
progressed in parallel with the Note Offer process.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
The purpose of progressing with the Mauritian Note offer and alternative funding proposals is to enable the
Company to:
(a)
(b)
commence the development of the Stage 1 Bunyu Graphite Project in Southern Tanzania including
the construction of a 400,000tpa concentration plant and associated infrastructure; and
fund the resettlement costs of people currently farming and/or living within the project development
area.
Bunyu Metallurgical Testwork
During the March quarter the Company commenced the first stage of a testwork program on graphite ore from
the Bunyu Graphite Project in Tanzania. The testwork program was undertaken by highly respected technical
group, American Energy Technologies Co. (“AETC”) which is headquartered and operates research and
laboratory facilities in Chicago, Illinois.
In January 2020, Volt commissioned AETC to undertake a testwork program using a representative sample from
drilling completed as part of the Stage 1 Feasibility Study at the Company’s Bunyu Graphite Project. A graphite
product from the Bunyu ore sample was prepared and analysed for certain physical, chemical and processing
properties to provide information for its suitability for several value-added graphite market applications
including as anode feedstock for Li-ion battery cells.
Below is a table with the Stage 1 product size distribution compared with the product distribution from the AETC
graphite product from the testwork program.
There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent
reduction mainly in the lower priced fine graphite flake. With further testwork and analysis, this could have
major economic benefits for both the Stage 1 and Stage 2 Bunyu project.
Size (µm)
Size (#)
% Distribution
% Distribution
Stage 1 FS
AETC Testwork
+500
+300
+180
+150
-150
+30
+50
+80
+100
-100
Total
1
11
27
15
46
100
7
32
25
8
28
100
If through further testwork the benefits in flake size distribution continue, the next step would be to consider
the incorporation into the Stage 1 feasibility study and flowsheet design. The operating and capital cost changes
to the current Stage 1 plant are expected to be minimal and more than offset by the substantial increase in sales
revenue.
Offtake Agreement Extended
The binding sales agreement (“Agreement”) between VGT and Qingdao Tianshengda Graphite Co. Ltd.
(“Tianshengda”) for 9,000 tonnes per annum of Bunyu Graphite Product over five years was executed on 1
August 2018.
The Agreement is conditional upon VGT confirming that it has completed the construction and commissioning
of the Stage 1 Project for mine development and upon completion of the processing plant for the treatment of
sufficient ore from the Project within defined milestone dates. The milestone dates were due to expire in the
March 2020 quarter.
In December 2019 the Company and Tianshengda executed an amendment to the Agreement extending these
milestone dates by a further 2 years. This is a strong show of support and confidence by Volt’s offtake partner,
Tianshengda, and reflects not only the quality of Volt’s graphite products but the expected strong increase in
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
flake graphite demand in coming years from Electric Vehicle and grid energy storage, flame retardant building
materials and other new industrial applications.
The Tianshengda Offtake Agreement is one of two binding offtake agreements entered into by VGT and there is
a further offtake agreement in draft that is to be executed once development funding is obtained. The combined
offtake quantities under the existing and planned offtake agreements has completed the sale of product forecast
to be available from Stage 1 production.
Community Relations Overview
The Company’s 100% owned subsidiary VGT continued to strengthen relationships with local communities even
though project development activities are deferred while development funding is being progressed. VGT
maintained strong communication through update reports, Resettlement Working Group meetings and
meetings with the district government, ward and village leaders.
Furthermore, VGT continued to make local financial contributions as part of its social investment program which
includes the continued payment of a monthly allowance to Nursery School teachers at Utimbula village and
financial contributions for a new ward office and school classroom facilities.
Corporate Overview
In July 2019, the maturity date for the loan note facility with RiverFort Global Capital and Yorkville Advisors was
extended by two months, from 14 July 2019 to 14 September 2019.
Volt launched a Share Purchase Plan (“SPP”) in July 2019, which closed oversubscribed during August to raise a
total of $1,299,000. In addition, a further $250,000 was raised via a top-up placement of new shares to
sophisticated and professional investors at the same issue price as the SPP and $100,000 requiring shareholder
approval at the 2019 AGM, taking the total amount raised to $1,649,000.
On 23 August 2019 based on an issue price of $0.012 per share, 108,250,081 shares were issued under the Share
Purchase Plan and a further 20,833,335 shares were issued in relation to the $250,000 top-up placement.
Funds raised under the SPP and Placement were used to repay the outstanding loan notes due to Riverfort
Global Capital and Yorkville Advisors, which was due on 14 September 2019, and for general working capital and
corporate purposes.
In the December 2019 quarter, the Company undertook a 1 for 12.9 non-renounceable Rights Issue (“Rights
Issue”) of ordinary shares, which closed in December, raising $1,251,000 following the underwriting and
placement of all shortfall shares. Funds raised from the Rights Issue were used to progress the DEM listed Note
issue, discussions with other development funding sources and for general corporate and working capital.
On 8 January, the Company announced that it received $638,055 from the issue of 63,805,449 shares following
the underwriting and placement of the shortfall shares from the recently closed Rights Issue
On 14 May 2020, the Company announced it had successfully raised $800,000 (before costs) to assist with
funding the initial exploration programs on the Guinea gold project and to provide working capital for Volt’s
Tanzanian graphite project and meet corporate costs. The capital raising was completed through the placement
of 160,000,000 new fully paid ordinary shares at A$0.005 per share (Placement) plus 80,000,000 unlisted options
with an exercise price of A$0.01 and a maturity date 24 months from the date of issue (with each investor to
receive one option for every two shares subscribed for under the Placement).
General Meetings
The AGM was held on 20 November 2019 and all resolutions were passed.
Board and Management Changes
On 1 July 2019, the Company appointed Mr Giacomo (Jack) Fazio as Non-Executive Director, following the
resignation of Mr Alwyn Vorster.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
On 30 April 2020, Mr Trevor Matthews resigned as CEO.
On 1 May 2020, the Company appointed Mr Trevor Matthews as Managing Director, following the resignation
of Mr Stephen Hunt.
DIRECTOR AND COMPANY SECRETARY INFORMATION
Mr Asimwe Kabunga | Non Executive Chairman
From 4 August 2017, appointed 5 April 2017
Qualifications: Bachelor of Science Mathematics and Physics.
Other current directorships of Listed Public Companies: Lindian Resources Limited (Chairman).
Former directorships of Listed Public Companies in last three years: Strandline Resources Limited.
Interests in Shares and Options over Shares in the Company: 342,350,874 fully paid ordinary shares.
Mr Kabunga is a Tanzanian born Australian entrepreneur who has over 20 years technical and commercial
experience in Tanzania, the United States and Australia. Mr Kabunga has extensive experience in the mining
industry, logistics, land access, tenure negotiation and acquisition, as well as a developer of technology
businesses. Mr Kabunga has been instrumental in establishing the Tanzania Community of Western Australia
Inc, and served as its first President. Mr Kabunga was also a founding member of Rafiki Surgical Missions and
Safina Foundation, both NGOs dedicated to helping children in Tanzania.
Mr Trevor Matthews | Managing Director
Appointed 1 May 2020
Qualifications: Bachelor of Commerce, Post Graduate Diploma in Applied Finance and Investment.
Other current directorships of Listed Public Companies: nil.
Former directorships of Listed Public Companies in last three years: nil.
Interests in Shares and Options over Shares in the Company: 1,580,043 fully paid ordinary shares.
Mr Matthews has an accounting and finance background with over 25 years experience in the resources industry
including roles with North and WMC Resources in executive-level positions. More recently, his last two roles
were as MD for MZI Resources (2012-16) and Murchison Metals (2005-11). During his career Mr Matthews has
gained considerable experience managing a number of nascent resource projects through to production.
Consequently, he has extensive executive management experience of
feasibility studies, project
planning/development, coordination and leveraging capital markets effectively to secure the appropriate mix of
debt/equity funding, to successfully complete a mining project.
Mr Giacomo (Jack) Fazio | Non-Executive Director
Appointed 1 July 2019
Qualifications: Diploma in Geometry, Associate Diploma in Civil Engineering, Graduate Certificate in Project
Management.
Other current directorships of Listed Public Companies: Lindian Resources Limited (Non-Executive Director).
Former directorships of Listed Public Companies in last three years: nil.
Interests in Shares and Options over Shares in the Company: 915,892 fully paid ordinary shares.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
Mr Fazio is a highly experienced project, construction and contract/commercial management professional
having held senior project management roles with Primero Group Limited, Laing O’Rourke and Forge Group Ltd.
His experience ranges from feasibility studies through to engineering, procurement, construction, and
commissioning of diverse mining resources, infrastructure, oil & gas and energy projects.
Mr Stephen Hunt | Non-Executive Director
Resigned 1 May 2020
Qualifications: Bachelor of Business (Maj. Marketing), AICD member.
Other current directorships of Listed Public Companies: American Pacific Borate and Lithium Limited.
Former directorships of Listed Public Companies in last three years: nil.
Mr Hunt has more than 25 years of experience in the marketing of steel and mineral products worldwide. His
career includes 15 years at BHP Billiton Ltd, where he spent 5 years in the London office marketing minerals to
European and Middle Eastern customers. Stephen has built on his extensive network and developed his own
minerals trading company, which has a strong Chinese focus. He brings along with him 15 years of cumulative
board experience with ASX limited companies and was a founding director of Magnis Resources Limited.
Ms Susan Hunter| Company Secretary
Appointed 1 August 2017
Ms Hunter has over 25 years’ experience in the corporate finance industry and has extensive experience in
Company Secretarial and Non-Executive Director roles on ASX, AIM and TSX listed companies. She is founder
and Managing Director of consulting firm Hunter Corporate Pty Ltd, which specialises in the provision of
corporate governance and company secretarial advice to ASX, AIM and TSX listed companies. She has previously
held senior management roles at Ernst & Young, PricewaterhouseCoopers and Bankwest, both in Perth and
Sydney. Ms Hunter holds a Bachelor of Commerce degree majoring in accounting and finance, is a Chartered
Accountant, a Fellow of the Financial Services Institute of Australasia, a Fellow of the Institute of Chartered
Secretaries and Administrators and a Graduate Member of the Australian Institute of Company Directors.
MEETINGS OF DIRECTORS
The following table sets out the number of meetings of the Company’s Directors (and committees of directors)
held during the year ended 30 June 2020, and the number of meetings attended by each Director.
Directors
Mr. Asimwe Kabunga
Mr. Trevor Matthews2
Mr. Giacomo Fazio3
Mr. Stephen Hunt1
Number of Meetings
Eligible to Attend
Number of Meetings
Attended
6
1
6
5
6
1
6
5
Notes:
1.
2.
S. Hunt resigned on 1 May 2020.
T. Matthews was appointed as Managing Director on 1 May 2020. T. Matthews attended all Board meeting held during the year
prior to his appointment as Managing Director in the capacity of CEO.
3. G. Fazio was appointed on 30 June 2019.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
SHARE OPTIONS
At the date of this report the following options have been granted over unissued capital.
Grant Date
Details
Expiry Date
Exercise
Price
Balance 30
June 2020
25 Jun 2019
Unlisted options
23 Dec 2020
15 May 2020
Unlisted options
15 May 2022
$0.04
$0.01
25,536,000
80,000,000
105,536,000
PERFORMANCE RIGHTS
During the 2020 financial year no performance rights have been issued and 10,000,000 performance rights have
been cancelled or lapsed. A balance of 10,000,000 performance rights remain outstanding at balance date and
at the date of this report.
REMUNERATION REPORT
The “Remuneration Report” which forms part of the Director’s Report, outlines the remuneration arrangements
in place for the Key Management Personnel of Volt Resources Limited for the year ended 30 June 2020 and is
included from page 13.
EVENTS SUBSEQUENT TO REPORTING DATE
No matters or circumstances have arisen since the end of the year which will significantly affect, or may No
matters or circumstances have arisen since the end of the year which will significantly affect, or may significantly
affect, the state of affairs or operations of the Consolidated Entity in future financial periods other than the
following:
On 20 July 2020, the Company held a General Meeting of shareholders, the following resolutions voted on and
passed.
•
•
•
•
Ratification of the prior issue of 160,000,000 shares and 80,000,000 options issued on 15 May 2020.
Approval for the issue of 121,718,576 shares to Kabunga Holdings Pty Ltd.
Approval for the issue of $3.75million in shares to the vendors on the Luiri Project.
Approval for the issue of 10,000,000 Performance Rights to Mr Hashimu Millanga.
On 28 July 2020, the Company announced the completion of the acquisition of the Guinea Gold Project via the
acquisition of all of the issued shares in Gold Republic Pty Ltd (“Gold Republic”). Gold Republic holds the permits
for three gold projects (Mandiana, Konsolon and Kouroussa) located in Guinea, Africa. The projects comprise six
permits located in the prolific Suiguri Basin with a total area of 388km2.
LIKELY DEVELOPMENTS
The Consolidated Entity intends to continue its exploration activities on its existing tenements, assess the
viability of existing tenements and to acquire further suitable tenements for exploration and/or development as
opportunities arise.
The Consolidated Entity is progressing options, including the Senior Note Offer to be listed on issue on the
Mauritian DEM, to raise development funding, initially for the Stage 1 Bunyu Graphite Project to allow directors
to make a Final Investment Decision (FID) based on the Stage 1 Feasibility Study completed in July 2018.
Subsequent to development funding and resulting positive FID for Stage 1, the Company would then be in a
position to commence resettlement of affected landowners, upgrade of access roads and water supply,
preparation of the plant site and commencement of construction works.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
ENVIRONMENTAL REGULATION
The Consolidated Entity has a policy of exceeding or at least complying with its environmental obligations.
During the financial year, the Consolidated Entity did not materially breach any particular or significant
regulation in respect to environmental management in any of the jurisdictions in which it operates.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the group to the date of this report.
DIVIDENDS
No dividends have been declared, provided for or paid in respect of the financial year ended 30 June 2020 (2019:
nil).
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has agreed to indemnify all the Directors and Officers of the Company for any liabilities to another
person (other than the Company or related body corporate) that may arise from their position as Directors or
Officers of the Company and its controlled entities, except where the liability arises out of conduct involving a
lack of good faith.
During the financial year the Company paid a premium in respect of a contract insuring the Directors and Officers
of the Company and its controlled entities against any liability incurred in the course of their duties to the extent
permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the
liability and the amount of the premium.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Consolidated Entity or intervene
in any proceeding to which the Consolidated Entity is a party for the purpose of taking responsibility on behalf
of the Company for all or any part of those proceedings. The Consolidated Entity was not a party to any such
proceedings during the year.
CORPORATE GOVERNANCE
A copy of Volt’s 2020 Corporate Governance Statement, which provides detailed information about governance,
and a copy of Volt’s Appendix 4G which sets out the Company’s compliance with the recommendations in the
fourth edition of the ASX Corporate Governance Council’s Principles and Recommendations is available on the
corporate governance section of the Company’s website at https://voltresources.com/.
NON-AUDIT SERVICES
No fees for non-audit services were paid or payable to the external auditor of the Parent Entity during the year
ended 30 June 2020 (2019: nil).
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2020, which forms a part of the directors’
report has been received and is included within this annual report at page 18.
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
REMUNERATION REPORT (Audited)
This remuneration report outlines the key management personnel remuneration arrangements of the
Consolidated Entity in accordance with the requirements of the Corporations Act 2001 and its Regulations. For
the purposes of this report, key management personnel (KMP) of the Group are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Consolidated Entity,
directly or indirectly, including any director (whether executive or otherwise) of the parent company, and
includes the specified executives. For the purposes of this report, the term 'executive' encompasses the chief
executive, senior executives and secretaries of the Parent and the Consolidated Entity.
Remuneration Committee
The Company is not of a sufficient size to justify the establishment of a remuneration committee and so the
Board of Directors of the Company fulfils this obligation and is responsible for determining and reviewing
remuneration arrangements for the directors and executives. The Board of Directors assesses the
appropriateness of the nature and amount of remuneration of executives on a periodic basis by reference to
relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit
from the retention of a high quality, high performing director and executive team.
Remuneration Philosophy
The performance of the Company depends upon the quality of its directors and executives. To prosper, the
Company must attract, motivate and retain highly skilled directors and executives. To this end, the charter
adopted by the remuneration committee aims to align rewards with achievement of strategic objectives. The
remuneration framework applied provides for a mixture of fixed and variable pay and a blend of short and long
term incentives as appropriate.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and executive
remuneration is separate and distinct.
Non-Executive Directors
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by
shareholders at General Meeting and was capped at $360,000 in November 2018. The Company’s policy is to
remunerate non-executive directors at market rates (for comparable companies) for time, commitment and
responsibilities. Fees for non-executive directors are not linked to the performance of the Company, however
to align directors’ interests with shareholders’ interests, directors are encouraged to hold shares in the
Company, and subject to approval by shareholders, are permitted to participate in the Employee Share Option
Plan.
Retirement Benefits and Allowances
No retirement benefits or allowances are paid or payable to directors of the Company (other than statutory or
mandatory superannuation contributions, where applicable).
Performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board have regarded the
following indices in respect of the current and previous four financial years:
EPS loss (cents)
Net profit / loss ($’000)
Exploration
expenditure ($’000)
Share price ($)
and
Evaluation
2020
(0.20)
(3,134)
355
0.024
2019
(0.24)
(3,483)
603
0.020
2018
(0.27)
(3,079)
4,863
0.021
2017
(0.32)
(3,102)
6,167
0.029
2016
(0.57)
(3,807)
3,114
0.105
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VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
Executives
Base Pay
Executives are offered a competitive level of base pay which comprises the fixed (unrisked) component of their
pay and rewards. Base pay for senior executives is reviewed annually to ensure market competitiveness. There
are no guaranteed base pay increases included in any senior executives’ contracts.
Short Term Incentives
Payment of short-term incentives is dependent on the achievement of key performance milestones as
determined by the Board of Directors. No bonuses have been paid or are payable in respect of the year to 30
June 2020. There have been no forfeitures of bonuses by key management personnel during the current or prior
periods and no cash bonuses remained unvested at year-end.
Long Term Incentives - Share-Based Compensation
Both performance rights and share options have been issued to Directors and executives as part of their
remuneration. Share-based compensation instruments are not issued based on performance criteria, however,
they are issued with vesting conditions and exercise prices set specifically to increase goal congruence between
Directors, executives and shareholders. Performance rights and options granted carry no dividend or voting
rights. The Company currently has no policy in place to limit an individual’s risk exposure in relation to the issue
of company securities as remuneration.
Service Agreements
In late November 2016, the Company entered into an agreement with Mr Trevor Matthews, in his capacity as
Chief-Executive Officer commencing 1 January 2017 with a base package inclusive of statutory superannuation
and before incentives of $300,000 per annum, plus a company provided car parking bay at its corporate office
or payment in lieu.
Under an established Performance Rights Plan approved by shareholders, Mr Matthews was issued 35,000,000
Performance Rights during the prior year in the following tranches subject to vesting conditions:
•
•
•
Tranche A – 15,000,000 Performance Rights vest on the Company raising a minimum of US$30 million
for the development of the Bunyu Stage 1 Project by 31 March 2019.
Tranche B – 10,000,000 Performance Rights vest on the receipt of first sales revenue from product
produced from the Binyu Stage 1 Project evidenced by the receipt of cash proceeds in a Volt Group
Company’s bank account by 30 June 2020.
Tranche C – 10,000,000 Performance Rights vest on the achieving a 20 business day VWAP equal to or
exceeding 15 cents per share for the Company within 3 years of grant date.
The condition for Tranche A was not achieved by 31 March 2019 resulting in the 15,000,000 performance rights
lapsing, the condition for Tranche B was not achieved by 30 June 2020 resulting in 10,000,000 performance
rights lapsing.
On 1 May 2020, Mr Trevor Matthews resigned his position as CEO and was appointed Managing Director.
As Managing Director, Mr Matthews will receive a monthly retainer of $3,000 with additional hours charged at
a consulting rate of $200 per hour. Mr Matthews has a one-month notice period by either party without cause
and Immediate termination by the company with cause. Performance rights are to be agreed by the Volt Board
and approved by shareholders.
Use of Remuneration Consultants
The Board is satisfied that the recommendations of remuneration consultants (if utilised) were made free from
undue influence from any member of Key Management Personnel. No remuneration consultants were utilised
during the 2020 financial year.
14
VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
Remuneration of Directors and Key Management Personnel
2020
Short term
Performance
rights
Post
employment
Directors
Asimwe Kabunga
Giacomo Fazio1
Trevor Matthews3
Stephen Hunt2
KMP
Trevor Matthews3
Mark Hoffmann4
Base salary
& annual
leave Director fees
$
$
-
-
-
-
-
321,655
148,485
470,140
470,140
123,559
47,800
6,000
43,800
221,159
-
-
-
221,159
Consulting
fees
$
Share based
payments
$
Super-
annuation
$
Performance
related
%
Total
$
28,000
-
62,000
-
90,000
-
-
-
90,000
-
-
-
-
-
-
-
-
-
-
(72,449)
-
(72,449)
(72,449)
25,000
11,749
36,749
36,749
151,559
47,800
68,000
43,800
311,159
274,206
160,234
434,440
745,599
-
-
-
-
(26.4)
(16.7)
(9.7)
Giacomo Fazio was appointed 1 July 2019.
Stephen Hunt resigned 1 May 2020.
Trevor Matthews resigned as Chief Executive Officer and was appointed Managing Director 1 May 2020.
1.
2.
3.
4. Mark Hoffmann was made redundant 5 February 2020.
2019
Directors
Asimwe Kabunga
Stephen Hunt
Alwyn Vorster2
Matthew Bull1
KMP
Trevor Matthews
Mark Hoffmann
Short term
Leave and
other
entitlements
$
Cash salary
and fees
$
133,071
52,560
52,560
1,000
239,191
270,000
209,331
479,331
718,522
-
-
-
-
-
2,923
953
3,876
3,876
Performance
rights
Post
employment
Consulting
fees
$
Share based
payments
$
Super-
annuation
$
Performance
related
%
Total
$
-
-
-
-
-
-
-
-
-
-
-
-
591,582
591,582
591,582
-
-
-
95
95
30,000
19,886
49,886
49,981
133,071
52,560
52,560
1,095
239,286
894,505
230,170
1,124,675
1,363,961
-
-
-
-
-
66.1
-
52.6
43.4
1. Matthew Bull resigned 9 July 2018.
2.
Alwyn Vorster resigned 30 June 2019.
15
VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
Share Based Compensation
Options
There were no options granted, exercised or lapsed during the financial year, in relation to key management
personnel’s remuneration.
Performance Rights
The conditions for Tranche B were not achieved resulting in 10,000,000 performance rights lapsing.
The fair value of the performance rights granted is estimated as at the date of grant using the black scholes
model (except Tranche C) and trinomial option model (Tranche C) taking into account the following inputs:
Black Scholes
Option Model
Tranche B
Performance Rights
expiring
30-Jun-2020
n/a
80%
2.025%
1.69 years
nil
$0.021
$0.021
Trinomial Option
Model
Tranche C3
Performance
Rights expiring 22-
Oct-2021
$0.15
70%
2.09%
3 years
nil
$0.021
$0.004
Details
Share price barrier
Expected volatility
Risk free interest rate
Expected life
Exercise price
Grant date share price
Fair value per right
Shares
Exercise of
Options /
Conversion of
Perf. Rights
Net Other
Change*
Balance at End
of Year
Issued as
Remuneration
Balance at
Beginning of
Year
160,142,017
-
125,935
12,687,026
300,000
173,254,978
Key Management
Personnel
2020
Asimwe Kabunga
Giacomo Fazio
Trevor Matthews
Stephen Hunt2
Mark Hoffmann3
Total
2019
Asimwe Kabunga
Stephen Hunt
Matthew Bull
Alwyn Vorster1
Trevor Matthews
Mark Hoffmann
Total
1.
2.
3. Mark Hoffmann was made redundant 5 February 2020.
160,142,017
12,687,026
4,088,885
6,229,437
72,920
300,000
183,520,285
Alwyn Vorster resigned 30 June 2019.
Stephen Hunt resigned 1 May 2020.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
60,490,281
915,892
1,454,108
(12,687,026)
(300,000)
49,873,255
-
-
(4,088,885)
(6,229,437)
53,015
-
(10,265,307)
220,632,298
915,892
1,580,043
-
-
223,128,233
160,142,017
12,687,026
-
-
125,935
300,000
173,254,978
16
VOLT RESOURCES LTD
DIRECTORS’ REPORT
For the year ended 30 June 2020
Performance rights
Key Management
Personnel
2020
Balance at
Beginning of
Year
Granted as
Remuneration
Vested and
converted into
ordinary
shares
Lapsed as
hurdle not
achieved /
cancelled
Balance at End
of Year
-
-
-
-
-
-
-
-
20,000,000
-
-
20,000,000
Asimwe Kabunga
Giacomo Fazio
Trevor Matthews
Stephen Hunt2
Mark Hoffmann3
Total
2019
Asimwe Kabunga
Stephen Hunt
Matthew Bull
Alwyn Vorster1
Trevor Matthews
Mark Hoffmann
Total
1.
2.
3. Mark Hoffmann was made redundant 5 February 2020.
-
2,500,000
-
2,000,000
15,000,000
-
19,500,000
Alwyn Vorster resigned 30 June 2019.
Stephen Hunt resigned 1 May 2020.
-
-
-
-
35,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(10,000,000)
-
-
(10,000,000)
-
(2,500,000)
-
(2,000,000)
(30,000,000)
-
(34,500,000)
-
-
10,000,000
-
-
10,000,000
-
-
-
-
20,000,000
-
20,000,000
No employee share option were granted as remuneration during the 2020 and 2019 financial years. Performance
rights have been the preferred method of remuneration in recent years.
Other Transactions with Key Management Personnel of the Consolidated Entity
Entities associated with Mr Stephen Hunt and Mr Asimwe Kabunga both provided unsecured short-term loans
of $50,000 each. The loans have a 10% interest rate per annum payable at maturity and a maturity date of 15
July 2019 or earlier at the Company’s discretion. These loans were repaid in full on 1 July 2019.
On 14 November 2019 Mr Asimwe Kabunga and Mr Trevor Matthews both provided unsecured short-term loans
of $50,000. The loans have a 10% interest rate per annum payable at maturity and an initial maturity date of 31
December 2019 or earlier at the Company’s discretion. The loan from Mr Kabunga was repaid on 9 January 2020
by issue of shares at $0.01. On 8 April 2020, a further $20,000 was lent by Mr Trevor Matthews, the balance of
$73,595 including capitalised interest remains unpaid at 30 June 2020.
During the 2020 financial year, there were no other transactions with Key Management Personnel.
Signed in accordance with a resolution of directors.
End of Remuneration Report
Asimwe Kabunga
Non-Executive Chairman
30 September 2020
17
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Volt Resources Limited for the
year ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been
no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 September 2020
B G McVeigh
Partner
18
VOLT RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2020
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the year ended 30 June 2020
2
2
3
Revenue
Interest income
Other income
Expenses
Corporate compliance fees
Corporate management costs
Foreign exchange gain (loss)
Marketing and investor relations costs
Occupancy expenses
Share based payments
Finance costs
Other expenses
Loss before income tax
Income tax (expense)/benefit
Loss after income tax
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or
loss
Exchange differences on translation of foreign
operations
Other comprehensive loss for the year, net of income
tax
Total comprehensive loss for the year
Loss attributable to:
Owners of Volt Resources Limited
Non-controlling interests
Total comprehensive loss attributable to:
Owners of Volt Resources Limited
Non-controlling interests
2020
$
580
41,685
(401,755)
(1,524,291)
290
(205,945)
(46,364)
72,449
(765,662)
(350,582)
(3,179,595)
45,499
(3,134,096)
2019
$
4,071
-
(534,882)
(1,840,920)
38,222
(202,064)
(156,427)
(591,582)
(233,280)
(607,586)
(4,124,448)
641,173
(3,483,275)
1,161,504
(61,075)
1,161,504
(1,972,592)
(61,075)
(3,544,350)
(3,139,173)
5,077
(3,134,096)
(3,493,873)
10,598
(3,483,275)
(1,973,390)
798
(1,972,592)
(3,554,948)
10,598
(3,544,350)
Loss per share attributable to owners of Volt Resources
Limited
Basic and diluted loss per share (cents per share)
4
(0.19)
(0.24)
The accompanying notes form part of these financial statements.
19
VOLT RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2020
Consolidated Statement of Financial Position
As at 30 June 2020
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total current assets
Non-current Assets
Trade and other receivables
Other financial assets
Property, plant and equipment
Deferred exploration and evaluation expenditure
Total non-current assets
Total assets
Current Liabilities
Trade and other payables
Provisions
Borrowings
Total current liabilities
Non-current Liabilities
Borrowings
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Parent entity interest
Non-controlling interests
Total equity
Note
5
6
8
9
10
12
12
13
14
2020
$
264,449
129,281
39,465
433,195
-
-
40,846
23,959,210
24,000,056
24,433,251
679,635
-
1,543,299
2,222,934
-
-
2,222,934
22,210,317
2019
$
1,171,421
41,748
40,413
1,253,582
3,900
30,000
45,676
22,394,753
22,474,329
23,727,911
347,354
62,260
1,523,709
1,933,323
1,004,648
1,004,648
2,937,971
20,789,940
67,880,852
1,113,436
(46,574,311)
22,419,977
(209,660)
22,210,317
64,415,434
20,102
(43,435,138)
21,000,398
(210,458)
20,789,940
The accompanying notes form part of these financial statements.
20
VOLT RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2020
Consolidated Statement of Changes in Equity
For the year ended 30 June 2020
Share capital
$
Reserves
$
Accumulated
losses
$
Parent entity
interest
$
Non-controlling
interests
$
At 1 July 2018
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners in their capacity as
owners
Shares issued
Cost of share issue
Equity exercised/expired
Share based payments
At 30 June 2019
At 1 July 2019
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners in their capacity as
owners
Shares issued
Cost of share issue
Share based payments
At 30 June 2020
63,973,234
-
-
-
434,747
7,453
-
-
64,415,434
64,415,434
-
-
-
3,699,963
(234,545)
-
67,880,852
The accompanying notes form part of these financial statements.
163,204
-
(61,075)
(61,075)
-
-
(673,609)
591,582
20,102
20,102
-
1,165,783
1,165,783
-
-
(72,449)
1,113,436
(40,614,874)
(3,554,948)
61,075
(3,493,873)
-
-
673,609
-
(43,435,138)
(43,435,138)
(3,139,173)
-
(3,139,173)
-
-
-
(46,574,311)
23,521,564
(3,554,948)
-
(3,554,948)
434,747
7,453
-
591,582
21,000,398
21,000,398
(3,139,173)
1,165,783
(1,973,390)
3,699,063
(234,545)
(72,449)
22,419,977
(221,056)
10,598
-
10,598
-
-
-
-
(210,458)
(210,458)
5077
(4,279)
798
-
-
-
(209,660)
Total equity
$
23,300,508
(3,544,350)
-
(3,544,350)
434,747
7,453
-
591,582
20,789,940
20,789,940
(3,134,096)
1,161,504
(1,972,592)
3,699,963
(234,545)
(72,449)
22,210,317
21
VOLT RESOURCES LTD
FINANCIAL STATEMENTS
For the year ended 30 June 2020
Consolidated Statement of Cash Flows
For the year ended 30 June 2020
Cashflows from Operating Activities
Government incentive received
Research and development tax credit received
Payments to suppliers and employees
Interest received
Finance costs
Net cash used in operating activities
Cashflows from Investing Activities
Payments for exploration expenditure
Proceeds from disposal of plant and equipment
Refund of rental bond
Net cash (used in) / from investing activities
Cashflows from Financing Activities
Proceeds from issue of shares
Proceeds from borrowings
Repayment of borrowings
Payments of share issue costs
Costs of loan financing
Net cash from financing activities
Net decrease in cash held
Cash and cash equivalents at beginning of period
Cash and cash equivalents as at year end
2020
$
2019
$
33,348
-
(2,252,585)
580
(120,514)
(2,339,171)
(355,195)
-
-
(355,195)
3,380,155
132,208
(1,526,424)
(198,545)
-
1,787,394
(906,972)
1,171,421
264,449
-
641,173
(3,831,464)
5,320
(19,210)
(3,204,181)
-
609
59,088
59,697
429,825
2,435,218
(491,625)
39,812
(289,602)
2,123,628
(1,020,856)
2,192,277
1,171,421
5
5
The accompanying notes form part of these financial statements.
22
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Notes to the Consolidated Financial Statements
Statement of significant accounting policies
Basis of preparation
1.
(a)
These financial statements are general purpose financial statements, which have been prepared in accordance
with the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and comply with
other requirements of the law. The accounting policies detailed below have been consistently applied to all of
the years presented unless otherwise stated. The financial statements are for the Consolidated Entity consisting
of Volt Resources Limited and its subsidiaries. The financial statements have also been prepared on a historical
cost basis. Cost is based on the fair values of the consideration given in exchange for assets. The Company is a
listed public company, incorporated in Australia. The entity’s principal activities are graphite exploration
activities in Tanzania.
Going Concern
(b)
The financial report has been prepared on a going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and the settlement of liabilities in the normal course of business.
At 30 June 2020 the Consolidated Entity had cash of $264,449 and net assets of $22,210,317 primarily
represented by deferred exploration expenditure of $23,959,210 on its Graphite prospecting tenements in
Tanzania. During the year, net cash outflows from operating activities totalled $2,339,171 primarily in relation
to corporate compliance, management, marketing and investor relations costs of the listed parent entity.
The Directors are of the opinion that the Consolidated Entity is a going concern due to the following factors:
(i) The Consolidated Entity is progressing a Senior Note Offer and listing on the Stock Exchange of Mauritius
and other funding options. Assuming a successful Note issue and the sourcing of supplementary
funding, all expenditures relating to the Bunyu Graphite project and Tanzanian activities will be met out
of these funds in Tanzania. The corporate costs to be incurred in Australia are expected to approximate
A$2.5 million per annum;
(ii) The Company has the ability to raise additional working capital in the shorter term from:
a. a capital raising;
b.
issue of convertible securities; and
(iii) The Company has the ability to sell assets, or an interest in assets.
Whilst the Directors are confident that the above initiatives will generate sufficient funds to enable the
Consolidated Entity to continue as a going concern for at least the period of 12 months from the date of signing
this financial report, should these initiatives be unsuccessful, there exists a material uncertainty that may cast
significant doubt on the ability of the Consolidated Entity to- continue as a going concern and, therefore, whether
it will be able to realise its assets and extinguish its liabilities in the normal course of business and at the amounts
stated in the financial report.
Adoption of new and revised standards
(c)
In the year ended 30 June 2020, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Consolidated Entity and effective for the current
annual reporting periods beginning on or after 1 July 2019. As a result of this review, the Directors have
determined that there is no material impact of the new and revised Standards and Interpretations on the
Consolidated Entity and therefore no material change is necessary to the Consolidated Entity’s accounting
policies.
23
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
The new Standards effective and adopted are documented below:
AASB 16 Leases
If a lessee has significant operating leases outstanding at the date of initial application, right-of-use assets will
be recognised for the amount of the unamortised portion of the useful life, and lease liabilities will be recognised
at the present value of the outstanding lease payments.
This will increase EBITDA as operating leases that were previously expensed will be amortised as a right-of-use
asset, and an interest expense on the lease liability. However, there will be an overall reduction in net profit
before tax in the early years of a lease because the amortisation and interest charges will exceed the current
straight-line expense incurred under the existing standard. This trend will reverse in the later years.
There will be no change to the accounting treatment for short-term leases less than 12 months and leases of low
value items, which will continue to be expensed on a straight-line basis.
The Consolidated Entity has considered this standard and identified there has been no impact on the financial
statements as the Consolidated Entity does not have any lease contracts in place.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet
adopted that are relevant to the Consolidated Entity and effective for the half-year reporting periods beginning
on or after 1 January 2019. As a result of this review, the Directors have determined that there is no material
impact of the new and revised Standards and Interpretations in issue not yet adopted on the Consolidated Entity
and therefore no material change is necessary to the Consolidated Entity’s accounting policies.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
Statement of compliance
(d)
The financial report was authorised for issue on 30 September 2020. The financial report complies with
Australian Accounting Standards, which include Australian equivalents to International Financial Reporting
Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements
and notes thereto, complies with International Financial Reporting Standards (IFRS).
Basis of consolidation
(e)
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company and its subsidiaries. Control is achieved when the Company:
•
•
•
has power over the investee;
is exposed, or has rights, to variable returns from its involvement in with the investee; and
has the ability within its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements listed above. Consolidation of a subsidiary begins when the
Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary.
Specifically income and expenses of a subsidiary acquired or disposed of during the year are included in the
consolidated statement of profit or loss from the date the Company gains control until the date when the
Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income
are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income
of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results
in the controlling interest having a deficit balance. When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies in line with the Consolidated Entity’s accounting
policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members are eliminated in full on consolidation.
24
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Critical accounting judgements and key sources of estimation uncertainty
(f)
The application of accounting policies requires the use of judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions are recognised in the period in which the estimate is revised if it affects only that period, or in
the period of the revision and future periods if the revision affects both current and future periods.
Share-based payment transactions:
The Consolidated Entity measures the cost of equity-settled transactions by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined using either the Black
and Scholes or Trinomial Options formula taking into account the terms and conditions upon which the
instruments were granted.
Exploration and evaluation expenditure:
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgment
in determining whether it is likely that future economic benefits are likely either from future exploitation or sale
or where activities have not reached a stage which permits a reasonable assessment of the existence of reserves.
The determination of a Joint Ore Reserves Committee (JORC) resource is itself an estimation process that
requires varying degrees of uncertainty depending on sub-classification and these estimates directly impact the
point of deferral of exploration and evaluation expenditure.
The deferral policy requires management to make certain estimates and assumptions about future events or
circumstances, in particular whether an economically viable extraction operation can be established. Estimates
and assumptions made may change if new information becomes available.
2.
Revenue and expenses
Other income
Cashflow boost
2020
$
41,685
41,685
2019
$
-
-
Expenses include:
Share based payments - Performance rights
(72,449)
591,582
Other expenses
Corporate advisors and brokers, including business development
Depreciation
Travel and accommodation
Other
Total other expenses
1,667
9,029
29,785
310,101
350,582
113,939
50,729
118,470
324,448
607,586
Accounting policy: revenue recognition
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected
to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer,
the consolidated entity: identifies the contract with a customer; identifies the performance obligations in the
contract; determines the transaction price which takes into account estimates of variable consideration and the
time value of money; allocates the transaction price to the separate performance obligations on the basis of the
25
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when
or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods
or services promised.
Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
financial asset.
3.
Income tax
A reconciliation between tax expense and the product of
accounting loss before income tax multiplied by the
Group’s applicable tax rate is as follows:
Total loss before income tax expense
2020
$
2019
$
(3,179,595)
(4,124,448)
Tax at the group rate of 30% (2019: 30%)
Share based payments
Non-deductible expenses
Non-assessable income
Capital raising costs deductible
Income tax losses not brought to account
Profit and loss proportion of research and development tax credit
Income tax benefit
953,879
21,735
(635,584)
12,506
29,196
(381,732)
45,499
45,499
1,237,334
(177,475)
(795,288)
-
34,376
(298,947)
641,173
641,173
The tax rates used in the above reconciliation are the corporate tax rates of Australia 30% and Tanzania 30%
(2019: Australia 30%, Tanzania 30%). The 27.5% tax rate on taxable profits for small businesses does not apply
to Australian corporate entities under Australian tax law if greater than 80% passive income is expected. The
Consolidated Entity has tax losses arising in Australia of $20,339,592 (2019: $19,251,419) that are available
indefinitely for offset against future taxable profits of the companies in which the losses arose. The availability
of these losses is subject to the satisfaction of either the same business or continuity of ownership tests. Tax on
losses arising in Tanzania to 30 June 2019 totalled A$1.649 million equivalent. The Tanzania tax losses for the
year ended 30 June 2020 are yet to be determined. Deferred tax assets have not been recognised in respect of
these items because it is not sufficiently probable that future taxable profit will be available against which the
Consolidated Entity can utilise the benefits thereof.
Accounting policy: income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the reporting date. Deferred income tax is provided on all
temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary
differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which
26
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be
utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each reporting date
and are recognised to the extent that it has become probable that future taxable profit will allow the deferred
tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are
expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity
and the same taxation authority.
Tax consolidation legislation
Volt Resources Limited and its 100% owned Australian resident subsidiary have implemented the tax
consolidation legislation. Current and deferred tax amounts are accounted for in each individual entity as if each
entity continued to act as a taxpayer on its own. Volt Resources Limited recognises both its own current and
deferred tax amounts and those current tax liabilities, current tax assets and deferred tax assets arising from
unused tax credits and unused tax losses which it has assumed from its controlled entities within the tax
consolidated group. Assets or liabilities arising under tax funding agreements with the tax consolidated entities
are recognised as amounts payable or receivable from or payable to other entities in the Consolidated Entity.
Any difference between the amounts receivable or payable under the tax funding agreement are recognised as
a contribution to (or distribution from) controlled entities in the tax consolidated group.
Accounting policy: other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
•
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the statement of financial position. Cash flows are included in the statement of cash flows on a
gross basis and the GST component of cash flows arising from investing and financing activities, which is
recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments and
contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
4.
Loss per share
2020
$
2019
$
Loss attributable to owners of Volt Resources Limited
used in calculating basic and dilutive EPS
(3,139,173)
(3,483,275)
27
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Weighted average number of ordinary shares used in
calculating basic and diluted earnings / (loss) per share (*):
Basic / diluted loss per share
2020
Number
2019
number
1,677,153,454
1,455,635,268
Cents per share
Cents per share
(0.19)
(0.24)
*As the Consolidated Entity is loss making in both 2020 and 2019, no potential ordinary shares are considered
to be dilutive as they would act to decrease the loss per share. The options on issue (Note 13) represent potential
ordinary shares but are not dilutive and accordingly have been excluded from the weighted average number of
ordinary shares and potential ordinary shares used in the calculation of diluted loss per share.
Accounting policy: earnings/loss per share
Basic earnings/loss per share is calculated as net profit or loss attributable to members of the parent, adjusted
to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the
weighted average number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is
calculated as net profit or loss attributable to members of the parent, adjusted for:
•
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and
dilutive potential ordinary shares, adjusted for any bonus element.
5.
Cash and cash equivalents
Reconciliation of operating loss after tax to the net cash
flows from operations:
Loss after tax
Non-cash items
Depreciation and impairment charges
Foreign currency (gain)/loss
Share based payments
Capitalised interest
Debt establishment fees
Change in assets and liabilities
Trade and other receivables
Prepayments
Trade and other payables
Provisions
Net cash outflow from operating activities
Reconciliation of cash:
Cash at bank and on hand
2020
$
2019
$
(3,134,096)
(3,483,275)
9,029
(3,910)
(72,449)
454,926
189,994
(53,633)
948
332,280
(62,260)
(2,339,171)
50,728
(38,222)
591,582
-
-
112,485
6,917
(447,789)
3,393
(3,204,181)
264,449
264,449
1,171,421
1,171,421
28
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Accounting policy: cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash at bank earns interest at floating rates based on daily bank deposit rates.
6.
Trade and other receivables
Current
GST receivable
Cashflow boost receivable
Other receivable
Non-current
Rental bond
2020
$
23,426
16,674
89,181
129,281
-
-
2019
$
15,562
-
26,186
41,748
3,900
3,900
Accounting policy: trade and other receivables
Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised
cost using the effective interest rate method, less any allowance for expected credit losses. Trade receivables
are generally due for settlement within periods ranging from 15 days to 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a
lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped
based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
7.
Other financial asset
Term deposit
2020
$
-
-
2019
$
30,000
30,000
Accounting policy: financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part
of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification is
determined based on both the business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is
no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i)
held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making
29
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements
are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised
is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of
the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or
loss.
8.
Plant and equipment
Plant and equipment – at cost
Accumulated depreciation
Net book amount
Balance at the beginning of the year
Acquisitions
Depreciation expense
Disposal
Foreign currency translation
Balance at the end of the year
2020
$
158,378
(117,532)
40,846
45,676
-
(9,029)
-
4,199
40,846
2019
$
148,617
(102,941)
45,676
100,480
-
(50,729)
(4,075)
-
45,676
Accounting policy: property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
•
Plant and equipment – over 3 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value
may be impaired. The recoverable amount of plant and equipment is the higher of fair value less costs to sell
30
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. For an asset that does not generate largely independent cash inflows, recoverable amount
is determined for the cash-generating unit to which the asset belongs, unless the asset's value in use can be
estimated to be close to its fair value. An impairment exists when the carrying value of an asset or cash-
generating units exceeds its estimated recoverable amount. The asset or cash-generating unit is then written
down to its recoverable amount. For plant and equipment, impairment losses are recognised in profit or loss for
the year as a separate line item.
Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit
or loss in the year the asset is derecognised.
9.
Deferred exploration and evaluation expenditure
Exploration and evaluation phase – at cost
At beginning of the year
Exploration expenditure during the year
Foreign currency translation
Total exploration and evaluation
2020
$
2019
$
22,394,753
355,195
1,209,262
23,959,210
21,786,559
602,879
5,315
22,394,753
Accounting policy: exploration and evaluation
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
a)
b)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
(i)
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(ii) exploration and evaluation activities in the area of interest have not at the reporting date reached
a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortised of assets used in exploration and evaluation activities. General and administrative costs are only
included in the measurement of exploration and evaluation costs where they are related directly to operational
activities in a particular area of interest. Exploration and evaluation assets are assessed for impairment when
facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its
recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating
unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine
the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount
of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in previous years. Where a decision has been made to proceed
with development in respect of a particular area of interest, the relevant exploration and evaluation asset is
tested for impairment and the balance is then reclassified to development. Capitalised exploration and
evaluation expenditure represents the accumulated cost of acquisition and subsequent cost of exploration and
evaluation of the properties.
31
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Ultimate recoupment of these costs is dependent on the successful development and commercial exploitation,
or alternatively, sale, of the respective areas of interest.
Accounting policy: impairment of assets
The Consolidated Entity assesses at each reporting date whether there is an indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required, the
Consolidated Entity makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the
higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or groups of assets
and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or
cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired
and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are
recognised in those expense categories consistent with the function of the impaired asset unless the asset is
carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease). An
assessment is also made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount
is estimated.
A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the
carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised
for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued
amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation
charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a
systematic basis over its remaining useful life.
10.
Trade and other payables
Trade payables and accruals
2020
$
679,635
679,635
2019
$
347,354
347,354
Accounting policy: trade and other payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services
provided to the Consolidated Entity prior to the end of the financial year 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. Trade and other payables are presented as current liabilities unless payment is not due within 12
months. Trade payables are non-interest bearing and are normally settled on 30-day terms.
11.
Provisions
Employee entitlements
2020
$
-
-
2019
$
62,260
62,260
32
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
12.
Borrowings
Current
Directors’ loansa),d)
Short-term loanb)
Insurance premium funding
Non-current
18 month US$ loanc)
Total borrowings
Movement in borrowings:
2020
Opening balance
Proceeds from borrowings
Repayment of borrowings
Non-cash repayments
Interest paid
Interest and borrowing costs expensed
Forex movement on USD loans
2019
Opening balance
Proceeds from borrowings
Repayment of borrowings
Interest paid
Capitalised interest
Interest and borrowing costs expensed
Forex movement on USD loans
2020
$
2019
$
73,595
1,461,159
8,545
1,543,299
-
-
1,543,299
100,948
1,422,761
-
1,523,709
1,004,648
1,004,648
2,528,357
Other loans
$
Lars bader
loan
$
Working
capital
$
Insurance
premium
funding
$
Total
$
1,422,761
1,004,648
-
(1,422,761)
-
-
-
-
(13,236)
(102,186)
13,236
540,902
17,795
-
-
100,948
120,000
(100,000)
(50,329)
(948)
3,924
-
-
2,528,357
12,208
132,208
(3,663)
(1,526,424)
-
(50,329)
(201)
201
-
(116,571)
558,263
17,795
1,461,159
73,595
8,545
1,543,299
Other loans
$
Lars bader
loan
$
Working
capital
$
Convertible
loan
$
Total
$
-
-
-
399,844
399,844
1,339,286
995,932
100,000
-
2,435,218
(91,781)
(10,329)
-
160,714
24,871
-
-
3,274
5,442
-
-
-
948
-
-
1,422,761
1,004,648
100,948
(399,844)
(491,625)
-
-
-
-
-
(10,329)
4,222
166,156
24,871
2,528,357
a) On the 27 May 2019 Volt Director’s Mr Hunt and Mr Kabunga provided unsecured loans of $50,000
each on commercial terms or better at 10.0% per annum repayable by 15 July 2019 or earlier at the
Company’s election. These were repaid in full on 1 July 2019.
b) The Company entered into a secured funding agreement on 14 January 2019 to provide a short-term
loan for six months with a face value equivalent to A$1.5 million (US$1.0 million) and principal
repayments totalling approximately A$0.1 million during the April to June 2019 quarter, the loan is
33
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
denominated in US$ and the proceeds totalled the equivalent of A$1,339,286. Subsequent to year’s
end the loan maturity was extended from 14 July 2019 to 14 September 2019. This loan was paid during
the year.
c) On the 24 June 2019 as part of US$1.0 million in funding from a European based high net worth investor,
Volt received US$700,000 in unsecured loan funds with the full amount due at maturity in 18-months.
The total amount payable at maturity includes a deferred establishment fee of US$350,000. On 26 June
2020, interest payable of US$70,000 was capitalised to the loan balance bringing to total loan to
US$770,000. The interest rate applicable for the remainder of the loan term increased to 30% per
annum.
d) On 14 November 2019 Mr Asimwe Kabunga and Mr Trevor Matthews both provided unsecured short-
term loans of $50,000. The loans have a 10% interest rate per annum payable at maturity and an initial
maturity date of 31 December 2019 or earlier at the Company’s discretion. The loan from Mr Kabunga
was repaid on 9 January 2020 by issue of shares at $0.01. On 8 April 2020, a further $20,000 was lent
by Mr Trevor Matthews, the balance of $73,595 including capitalised interest remains unpaid at 30 June
2020.
13.
Issued capital
a) Share capital
Ordinary shares fully paid
2020
$
2019
$
67,880,852
67,880,852
64,415,434
64,415,434
b) Movement in shares on issue
2020
number
2020
$
2019
number
2019
$
Balance at the beginning of the year
Share placements
Shares issued in lieu of interest
Share purchase plan
Rights issue
Share issue costs
Balance at the end of the year
1,476,323,875
168,333,334
-
129,083,416
125,096,172
1,898,836,797
64,415,434 1,455,379,711
20,845,714
98,450
-
-
-
67,880,852 1,476,323,875
900,000
-
1,549,000
1,250,963
(234,545)
63,973,234
429,824
4,923
-
-
7,453
64,415,434
c) Share options
Grant Date
Details
Expiry Date
Exercise
Price
Balance 30
June 2019
Movement
during the
year
Balance 30
June 2020
25 Jun 2019
Unlisted options
23 Dec 2020
15 May 2020
Unlisted options
15 May 2022
$0.04
$0.01
25,536,000
-
-
80,000,000
25,536,000
80,000,000
25,536,000
80,000,000
105,536,000
The options granted during the 2020 financial year were free attaching to the May 2020 placement. The options
granted during the 2019 financial year were free attaching to the June 2019 placement
34
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
d) Performance rights
Milestone
Expiry Date
Tranche
Receipt of the first sales revenue
from product produced from the
Bunyu Stage 1 project
Achieving a VRC 20-day VWAP of
15 cents per share
30 Jun 2020
Within 3 yrs
of grant
B
C
Balance 30
June 2019
Expired
during the
year
Balance 30
June 2020
10,000,000
(10,000,000)
-
10,000,000
-
10,000,000
20,000,000
(10,000,000)
10,000,000
The vesting conditions for the Trance B performance rights were not met prior to the expiry date.
Tranche C rights contain market based vesting conditions and have been valued using an up and in single barrier
share option pricing model with a Parisian barrier adjustment. The model takes into consideration that the
Tranche C Rights will vest at any time during the performance period, given that the VWAP exceeds the
determined barrier over the specified number of days. The model incorporates a trinomial option pricing model.
Accounting policy: 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.
14.
Reserves
Share based payments reserve
Foreign currency translation reserve
Movement in reserves;
Share based payments reserve
Balance at the beginning of the year
Share based payment
Transfer to accumulated losses on expiry of options and
lapse of performance rights
Balance at the end of the year
Foreign currency translation reserve
Balance at the beginning of the year
Currency translation differences
Balance at the end of the year
Total reserves
2020
$
22,393
1,091,043
1,113,436
2020
$
94,842
(72,449)
-
22,393
(74,740)
1,165,783
1,091,043
1,113,436
2019
$
94,842
(74,740)
20,102
2019
$
176,869
591,582
(673,609)
94,842
(13,665)
(61,075)
(74,740)
20,102
35
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Accounting policy: foreign currency translation
Both the functional and presentation currency of Volt Resources Limited and its Australian subsidiaries is
Australian dollars. Each entity in the Consolidated Entity determines its own functional currency and items
included in the financial statements of each entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the rate of exchange ruling at the reporting date. All exchange differences in the consolidated
financial report are taken to profit or loss. Non-monetary items that are measured in terms of historical cost in
a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary
items measured at fair value in a foreign currency are translated using the exchange rates at the date when the
fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as
part of the fair value gain or loss. The functional currency of foreign operations through Dugal Resources Lda
and Xiluva Mozambi Lda, is Mozambique New Metical (MZN) The functional currency of foreign operations
through Volt Graphite Tanzania Limited is Tanzanian Shillings (TZS) and US Dollars (USD).
As at the reporting date the assets and liabilities of these subsidiaries are translated into the presentation
currency of Volt Resources Limited at the rate of exchange ruling at the reporting date and their statements of
comprehensive income are translated at the weighted average exchange rate for the year. The exchange
differences arising on the translation are taken directly to a separate component of equity, being recognised in
the foreign currency translation reserve. On disposal of a foreign entity, the deferred cumulative amount
recognised in equity relating to that particular foreign operation is recognised in profit or loss.
Share based payments
15.
Vesting expense of $137,551 was recognised during the year in relation to the Tranche B and C performance
rights on issue to Trevor Matthews. A $210,000 reversal of amounts previously expensed has also been
recognised as a result of the vesting conditions attached to the Tranche B rights not being met upon their expiry.
The fair value of the equity settled performance rights granted is estimated as at the date of grant using the
Trinomial Option model (Tranche C Performance Rights) taking into account the terms and conditions upon
which the options were granted:
Details
Tranche
Expiry
Share price barrier
Expected volatility
Risk free interest rate
Expected life
Exercise price
Grant date share price
Fair value per right/option
Performance
Rights
C
22 Oct 2021
$0.15
70%
2.09%
3 years
nil
$0.021
$0.004
Accounting policy: share-based payment transactions
Equity settled transactions:
The Consolidated Entity provides benefits to employees (including senior executives) of the Consolidated Entity
in the form of share-based payments, whereby employees render services in exchange for shares or rights over
shares (equity-settled transactions). The cost of these equity-settled transactions with employees is measured
by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is
determined by an external valuer using a Black-Scholes model. In valuing equity-settled transactions, no account
is taken of any performance conditions, other than conditions linked to the price of the shares of Volt Resources
Limited (market conditions) if applicable. The cost of equity-settled transactions is recognised, together with a
corresponding increase in equity, over the period in which the performance and/or service conditions are
36
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting
period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects
a)
b)
the extent to which the vesting period has expired; and
the Consolidated Entity’s best estimate of the number of equity instruments that will ultimately vest.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date. The consolidated statement of profit or
loss and other comprehensive income charge or credit for a period represents the movement in cumulative
expense recognised as at the beginning and end of that period. No expense is recognised for awards that do not
ultimately vest, except for awards where vesting is only conditional upon a market condition. If the terms of an
equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified.
In addition, an expense is recognised for any modification that increases the total fair value of the share-based
payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is substituted for the
cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new
award are treated as if they were a modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of
earnings/loss per share (see Note 4).
16.
Financial instruments
a) Capital risk management
The Consolidated Entity manages its capital to ensure that entities in the Consolidated Entity will be able to
continue as a going concern while maximising the return to stakeholders through the optimisation of the debt
and equity balance. The Consolidated Entity’s overall strategy remains unchanged from 2018. The capital
structure of the Consolidated Entity consists of debt, cash and cash equivalents and equity attributable to equity
holders of the parent, comprising issued capital, reserves and retained earnings. None of the entities are subject
to externally imposed capital requirements. Operating cash flows are used to maintain and expand operations,
as well as to make routine expenditures such as tax, and general administrative outgoings. Gearing levels are
reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the risks
associated with each class of capital.
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Financial liabilities
Trade and other payables
Borrowings
2020
$
264,449
129,281
-
393,730
679,635
1,543,299
2,222,934
2019
$
1,171,421
45,648
30,000
1,247,069
347,354
2,528,357
2,875,711
b) Financial risk management objectives
The Consolidated Entity is exposed to market risk (including currency risk, fair value interest rate risk and price
risk), credit risk, liquidity risk and cash flow interest rate risk. The Consolidated Entity seeks to minimise the
37
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
effect of these risks, by using derivative financial instruments to hedge these risk exposures where appropriate.
The use of financial derivatives is governed by the Consolidated Entity’s policies approved by the board of
directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of
financial derivatives and non-derivative financial instruments, and the investment of excess liquidity.
Compliance with policies and exposure limits is reviewed by management on a continuous basis. The
Consolidated Entity does not enter into or trade financial instruments, including derivative financial instruments,
for speculative purposes.
c) Market risk
The Consolidated Entity’s activities expose it primarily to the financial risks of changes in foreign currency
exchange rates, commodity prices and exchange rates. There has been no change to the Consolidated Entity’s
exposure to market risks or the manner in which it manages and measures the risk from the previous period.
d) Foreign currency risk management
The Consolidated Entity undertakes certain transactions denominated in foreign currencies, hence exposures to
exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters. No
forward contracts or other hedging instruments have been used during the current or prior year as the
Consolidated Entity’s foreign exchange exposure is not considered to be sufficiently material to justify such
activities. The carrying amounts of the Consolidated Entity’s foreign currency denominated monetary assets and
monetary liabilities at the balance date expressed in Australian dollars are as follows:
Assets
Liabilities
2020
2019
2020
2019
US dollars
Tanzanian shillings
7,574
1,024
1,012,701
691
1,461,159
-
2,348,088
-
Foreign currency sensitivity analysis
The Consolidated Entity is exposed to US Dollar (USD) and Tanzanian shillings (TZS) currency fluctuations. The
following table details the Consolidated Entity’s sensitivity to a 10% increase and decrease in the Australian dollar
against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk
internally to key management personnel and represents management’s assessment of the possible change in
foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A
positive number indicates a weakening against the respective currency. For a strengthening of the Australian
Dollar against the respective currency there would be an equal and opposite impact on the result and other
equity and the balances below would be negative.
USD impact
Result for the year
TZS impact
Result for the year
e)
Interest rate risk
2020
$
2019
$
(145,359)
(133,539)
102
69
As at and during the year ended on reporting date the Consolidated Entity had no significant interest-bearing
assets or liabilities, other than liquid funds on deposit and various loans. As such, the Consolidated Entity’s
income and operating cash flows (other than interest income from funds on deposit and interest expense on the
loans) are substantially independent of changes in market interest rates.
38
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
The Consolidated Entity’s exposure to interest rate risk for each class of financial assets and liabilities is set out
below:
Financial assets
Cash and cash equivalents
Financial liabilities
Borrowings
2020
$
2019
$
Floating
264,449
1,171,421
Fixed
1,543,299
2,528,357
Consolidated Entity and Parent Company sensitivity
The sensitivity analyses below have been determined based on the exposure to interest rates at the balance
date and the stipulated change taking place at the beginning of the financial year and held constant through the
reporting period. At balance date, if interest rates had been 80 basis points higher or lower and all other
variables were held constant, the Consolidated Entity’s net result would increase or decrease by $2,116 (2019:
$9,371). This is mainly attributable to the Consolidated Entity’s exposure to interest rates on its variable rate
cash holdings.
f) Credit risk
The Consolidated Entity seeks to trade only with recognised, trustworthy third parties and it is the Group’s policy
to perform credit verification procedures in relation to any customers wishing to trade on credit terms with the
Consolidated Entity. The Consolidated Entity has no significant concentrations of credit risk.
g) Liquidity risk
Prudent liquidity management involves the maintenance of sufficient cash, marketable securities, committed
credit facilities and access to capital markets. It is the policy of the Board to ensure that the Consolidated Entity
is able to meet its financial obligations and maintain the flexibility to pursue attractive investment opportunities
through keeping committed credit lines available where possible, ensuring the Consolidated Entity has sufficient
working capital and preserving the 15% share issue limit available to the Company under the ASX Listing Rules.
h) Net fair value
The carrying amount of financial assets and liabilities recorded in the financial statements approximate their fair
value as at 30 June 2020.
Accounting policy: investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part
of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification is
determined based on both the business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is
no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i)
held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making
a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements
are recognised in profit or loss.
39
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised
is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of
the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or
loss.
17.
Commitments and contingencies
Within one year - exploration
Within one year – office lease
One to five years - exploration
2020
$
49,888
-
-
49,888
2019
$
148,027
1,950
349,157
499,134
There are no contingent liabilities as at the date of this report, other than for the Resettlement Action Plan
totalling US$3.5 million where commencement of resettlements and any commitments are contingent on the
consolidated entity making a Financial Investment Decision (FID) to develop the Bunyu Graphite project which is
contingent on an appropriate level of development funding being sourced.
On production and sale of graphite products from the Bunyu Graphite project, the previous owners are entitled
to a 3% net smelter royalty on the sale of dried concentrate. At the Company’s election, at any stage in the future
the Company may pay US$2.0 million to reduce the royalty rate to 1.5%.
Changes to the legal framework governing the natural resources sector in Tanzania were passed by the Tanzanian
Parliament in early July 2017 and the Company advised the ASX of the impact of the new legislation on 7 July
2017. One impact was the Tanzanian Government would have a 16% non-dilutable free carried interest in Volt’s
Tanzanian subsidiary which increases from a current interest of nil. The 16% interest is to apply to mining
operations under a mining licence or a special mining licence. The Company is not aware of any further guidance
or application of this change to date. The Consolidated entity currently retains a 100% interest in Volt’s Tanzanian
subsidiary which holds the Bunyu Graphite Project.
40
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Financial reporting by segments
18.
AASB 8 requires operating segments to be identified on the basis of internal reports about components of the
Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the
segment and to assess its performance.
The function of the chief operating decision maker is performed by the Board collectively. Information reported
to the Board for the purposes of resource allocation and assessment of performance is focused broadly on the
Group’s diversified activities across different sectors.
The Group’s reportable segments under AASB 8 are Corporate and Graphite.
2020
Revenue
Interest received
Total segment revenue
Expenditure
Corporate compliance fees
Corporate management costs
Foreign exchange gain (loss)
Marketing and investor relations costs
Occupancy expenses
Share based payments
Finance costs
Other expenses
Total segment expenditure
Loss before income tax
SEGMENT ASSETS
Segment operating assets
Total segment assets
SEGMENT LIABILITIES
Segment operating liabilities
Total segment liabilities
2019
Revenue
Interest received
Total segment revenue
Corporate
$
Graphite
$
41,685
580
42,265
(321,000)
(1,186,612)
(40,721)
(204,818)
(45,362)
72,449
(756,889)
(327,046)
(2,809,999)
(2,767,734)
-
-
-
(80,755)
(337,679)
41,011
(1,127)
(1,002)
-
(8,773)
(23,536)
(411,861)
(411,861)
Total
$
41,685
580
42,265
(401,755)
(1,524,291)
290
(205,945)
(46,364)
72,449
(765,662)
(350,582)
(3,221,860)
(3,179,595)
400,382
400,382
24,032,869
24,032,869
24,433,251
24,433,251
2,222,934
2,222,934
-
-
2,222,934
2,222,934
Corporate
$
Graphite
$
4,071
4,071
-
-
Total
$
4,071
4,071
41
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Expenditure
Corporate compliance fees
Corporate management costs
Foreign exchange gain (loss)
Marketing and investor relations costs
Occupancy expenses
Share based payments
Finance costs
Other expenses
Total segment expenditure
Loss before income tax
SEGMENT ASSETS
Segment operating assets
Total segment assets
SEGMENT LIABILITIES
Segment operating liabilities
Total segment liabilities
Corporate
$
Graphite
$
Total
$
(528,472)
(1,380,719)
33,793
(201,730)
(111,243)
(591,582)
(233,280)
(346,588)
(3,359,821)
(3,355,750)
(6,410)
(460,201)
4,429
(334)
(45,184)
-
-
(260,998)
(768,698)
(768,698)
(534,882)
(1,840,920)
38,222
(202,064)
(156,427)
(591,582)
(233,280)
(607,586)
(4,128,519)
(4,124,448)
2,038,498
2,038,498
22,394,753
22,394,753
24,433,251
24,433,251
2,937,971
2,937,971
-
-
2,937,971
2,937,971
Accounting policy: segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors of Volt Resources
Limited.
Subsidiaries
19.
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries:
Volt Graphite Tanzania Plc
Mozambi Graphite Pty Ltd
Mozambi Resource Investments Pty Ltd
Dugal Pty Ltd
Dugal Resources Lda
Mozambi Ventures Lda
Xiluva Mozambi Lda
Country of
Incorporation
Tanzania
Australia
Australia
Australia
Mozambique
Mozambique
Mozambique
2020
%
100
100
100
100
70
80
80
2019
%
100
100
100
100
70
80
80
The Company’s intention is to wind up or liquidate the three Mozambique subsidiaries and Dugal Pty Ltd.
42
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
20.
Auditors remuneration
Amounts received or due and receivable by the auditor for:
Amounts received or due and receivable by HLB Mann Judd for
an audit or review of the financial report
33,900
39,927
2020
$
2019
$
Amounts received or due and receivable by other auditors:
Amounts received or due and receivable by Innovex in
Tanzania for the audit of Volt Graphite Tanzania Ltd
21.
Key management personnel remuneration
Short term employee benefits
Share based payments
Post-employment benefits (superannuation)
Total remuneration
11,950
45,850
2020
$
781,299
(72,449)
36,749
745,599
6,410
46,337
2019
$
722,398
591,582
49,981
1,363,961
Parent entity information
22.
The following details information related to the parent entity, Volt Resources Limited, as at 30 June 2020. The
information presented here has been prepared using consistent accounting policies as presented in Note 1.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets/(liabilities)
Issued capital
Reserves
Accumulated losses
Total equity
Loss for the year
Other comprehensive income for the year
Total comprehensive loss for the year
2020
$
2019
$
398,954
23,659,953
24,058,907
2,228,505
-
2,228,505
21,830,402
67,880,852
22,033
(46,072,483)
21,830,402
(2,743,631)
-
(2,743,631)
1,219,906
22,880,951
24,100,857
391,436
2,528,357
2,919,793
21,181,064
64,415,434
94,482
(43,328,852)
21,181,064
(2,775,654)
-
(2,775,654)
43
VOLT RESOURCES LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
Commitments
Within one year
One to five years
2020
$
-
-
-
2019
$
1,950
-
1,950
Accounting policy: parent entity financial information
The financial information for the parent entity, Volt Resources Limited, disclosed in this note has been prepared
on the same basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial
statements of Volt Resources Limited. Dividends received from associates are recognised in the parent entity’s
profit or loss, rather than being deducted from the carrying amount of these investments.
Share-based payments
The 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 using a Black-
Scholes model.
Events subsequent to year end
23.
No matters or circumstances have arisen since the end of the year which will significantly affect, or may
significantly affect, the state of affairs or operations of the Consolidated Entity in future financial periods other
than the following:
On 20 July 2020, the Company held a General Meeting of shareholders, the following resolutions voted on and
passed.
• Ratification of the prior issue of 160,000,000 shares and 80,000,000 options issued on 15 May 2020.
• Approval for the issue of 121,718,576 shares to Kabunga Holdings Pty Ltd.
• Approval for the issue of $3.75million in shares to the vendors on the Luiri Project.
• Approval for the issue of 10,000,000 Performance Rights to Mr Hashimu Millanga.
On 28 July 2020, the Company announced the completion of the acquisition of the Guinea Gold Project via the
acquisition of all of the issued shares in Gold Republic Pty Ltd (“Gold Republic”). Gold Republic holds the permits
for three gold projects (Mandiana, Konsolon and Kouroussa) located in Guinea, Africa. The projects comprise six
permits located in the prolific Suiguri Basin with a total area of 388km2.
44
VOLT RESOURCES LTD
DIRECTORS’ DECLARATION
For the year ended 30 June 2020
1)
In the opinion of the directors of Volt Resources Limited (the ‘Company’):
a.
the accompanying financial statements and notes and the additional disclosures are in
accordance with the Corporations Act 2001 including:
i. giving a true and fair view of the Consolidated Entity’s financial position as at 30 June
2020 and of its performance for the year then ended; and
ii.
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations regulations 2001; and
b.
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
2)
3)
The financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.
This declaration is signed in accordance with a resolution of the Board of Directors.
Asimwe Kabunga
Non-Executive Chairman
30 September 2020
45
INDEPENDENT AUDITOR’S REPORT
To the members of Volt Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Volt Resources Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30
June 2020, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a)
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(b) in the financial report, which indicates that a material uncertainty
exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our
opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. In addition to the matter described in the Material
Uncertainty Related to Going Concern section above, we have determined the matters described
below to be the key audit matters to be communicated in our report.
46
Key Audit Matter
How our audit addressed the key audit matter
Exploration and evaluation
asset
Refer to Note 9
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group has
capitalised the acquisition costs and all
exploration and evaluation expenditure for its
graphite project in Tanzania. The Group has
applied the cost model after recognition.
Our audit focused on the Group’s impairment
assessment of the carrying amount of the
capitalised exploration and evaluation asset, as
this is the most significant asset of the Group. We
planned our work to address the audit risk that
the capitalised expenditure may no longer meet
the recognition criteria of the standard. In
addition, we considered it necessary to assess
whether facts and circumstances existed to
suggest that the carrying amount of the
exploration and evaluation asset may exceed its
recoverable amount.
Our procedures included but were not limited to
the following:
• We obtained an understanding of the key
processes associated with management’s
review of the carrying values of each area
of interest;
• We considered the Directors’ assessment of
potential indicators of impairment;
• We obtained evidence that the Group has
current rights to tenure of its areas of
interest;
• We examined the exploration budget for the
year ending 30 June 2021 and discussed
with management the nature of planned
ongoing activities;
• We enquired with management, reviewed
ASX announcements and reviewed minutes
of Directors’ meetings to ensure that the
Group had not resolved to discontinue
exploration and evaluation at any of its
areas of interest; and
• We examined the disclosures made in the
financial report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s consolidated annual report for the year ended 30 June 2020,
but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
47
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
-
-
-
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
48
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2020.
In our opinion, the Remuneration Report of Volt Resources Limited for the year ended 30 June
2020 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
30 September 2020
B G McVeigh
Partner
49
VOLT RESOURCES LTD
ADDITIONAL ASX INFORMATION
For the year ended 30 June 2020
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report is
as follows. The information is current at 22 September 2020.
Number of Shareholders and Option Holders
Shares
As at 22 September 2020, there were 3,750 shareholders holding a total of 20,020,555,373 fully paid ordinary
shares.
Options
As at 22 September 2020, there were 25,536,000 un-quoted Options exercisable at $0.04 on or before 31
December 2020 and 80,000,000 un-quoted Options exercisable at $0.01 on or before 15 May 2022.
Distribution of Equity Securities
Ordinary Shares
Unlisted Options
1 - 1000
1001 - 5000
5001 - 10,000
10,001 - 100,000
100,001 and above
Total
There were 1,279 holders totalling 16,497,163 ordinary shares holding less than a marketable parcel.
Number of Shares Number of Holders
-
-
-
-
8
8
Number of Holders
255
194
149
1,595
1,557
3,750
83,457
535,832
1,193,688
74,581,887
1,944,160,509
2,020,555,373
Number of Shares
-
-
-
-
105,536,000
105,536,000
Top Twenty Share Holders
Shareholder name
KABUNGA HOLDINGS PTY LTD
VEN CAPITAL PTY LTD
MR PETER RAYMOND NOTMAN + MR ELAINE NOTMAN
BOSSWHAT PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
LITTLEJOHN EMBREY ENGINEERING PTY LTD
CHATA HOLDINGS PTY LTD
BNP PARIBAS NOMS PTY LTD GROUP
ROPA INVESTMENTS (GIBRALTAR) LIMITED
1
2
3
4
5
6
7
8
9
10
11 MR LESLIE THOMAS KING + MRS HEATHER KING
HAJ CORPORATE & FINANCIAL SERVICES PTY LTD
12
13 MR SCOTT WILLIAMS
14 MR ROHAN PATNAIK
15 MR RICHARD HIM SIM VOM
16 MR KEVIN BRADY
17
18
19 MR STEPHEN MARK YOUNG + MRS LILIBETH VILLAMIN YOUNG
ENDJUA PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
20 MR PAUL JOHN ANSTEE + MR RODNEY MICHAEL SMITH
Ordinary shares held
number
342,350,874
75,085,000
57,680,802
35,000,000
33,808,575
30,592,493
29,362,556
27,464,286
21,201,624
21,000,000
20,000,000
19,780,000
18,810,470
16,250,000
12,258,657
12,165,724
11,023,427
10,937,947
10,157,272
10,130,000
%
16.94
3.72
2.85
1.73
1.67
1.51
1.45
1.36
1.05
1.04
0.99
0.98
0.93
0.8
0.61
0.6
0.55
0.54
0.5
0.5
815,059,707
40.34
50
VOLT RESOURCES LTD
ADDITIONAL ASX INFORMATION
For the year ended 30 June 2020
Substantial Share Holders
The names of substantial shareholders pursuant to the Company’s share register are as follows:
Shareholder name
1
KABUNGA HOLDINGS PTY LTD
Ordinary shares held
number
342,350,874
342,350,874
%
16.94
16.94
Voting Rights
All ordinary shares carry one vote per share without restriction.
Tenement Listing
Project
Country
Region
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Tanzania
Masasi District
Masasi District
Nachingwea, Ruangwa & Masasi
Districts
Ruangwa & Masasi Districts
Newala & Masasi Districts
Newala, Ruangwa & Masasi
Districts
Ruangwa & Lindi Districts
Masasi District
Masasi District
Masasi District
e
t
i
h
p
a
r
G
a
n
a
z
n
a
T
i
Licence Number
Status
ML 591/2018
ML 592/2018
Live
Live
PL 10643/2015
Renewal
PL 10644/2015
PL 10667/2015
Renewal
Renewal
PL 10668/2015
Renewal
PL 10717/2015
PL 10788/2016
PL 13207/2018
PL 13208/2018
Renewal
Renewal
Application
Application
Beneficial
Interest
100%
100%
100%
100%
100%
100%
100%
100%
#
#
# Prospecting Licence Applications PL 13207/2018 and PL 13208/2018 are for 100% of the remaining area covered by PL 10718/2015 which
ceased on the granting of the two Mining Licenses over a portion of the previously held prospecting license tenement area.
Summary of results of the entity’s annual review of its Mineral Resources and Ore
Reserves.
The Company carries out an annual review of its Mineral Resources and Ore Reserves as required by the ASX
Listing Rules. The review was carried out as at 30 June 2020. The estimates for Ore Reserves and Mineral
Resources were prepared and disclosed under the JORC Code 2012.
As of the 30 June 2020, the Company reviewed the Mineral Resource and Ore Reserve inventories and found:
•
•
•
All Mineral Resource and Ore Reserve statements follow JORC 2012 guidelines.
Opportunities for the Company to convert lower classified Mineral Resources into higher classification,
and
Opportunities to convert appropriate Mineral Resources into Ore Reserves,
with follow up exploratory work including but not limited to infill drilling and further metallurgical test work.
The Company is not aware of any new information or data that materially affects the information included in
the Annual Statement about Mineral Resources or Ore Reserves and confirms that all material assumptions and
technical parameters underpinning the estimates continue to apply and have not materially changed as of 30
June 2020.
Mineral Resource and Ore Reserve Statements
All Mineral Resources and Ore Reserves announced by Volt Resources Ltd are within the Republic of Tanzania.
Volt Resources the consolidated entity, is targeting Graphite mineralisation within the Republic of Tanzania.
51
VOLT RESOURCES LTD
ADDITIONAL ASX INFORMATION
For the year ended 30 June 2020
As of the 30 June 2020, the Graphite Mineral Resources for Volt Resources were:
Bunyu Project
Mt
TGC (%)
Measured
Namangale North (now Bunyu 1)
Total Measured
Indicated
Namangale North (now Bunyu 1)
Namangale South (now Bunyu 2 & 3)
Total Indicated
Inferred
Namangale North (now Bunyu 1)
Namangale South (now Bunyu 2 & 3)
Total Inferred
Total Resource
20
20
122
33
155
264
23
286
461
5.3
5.3
5.2
4.3
5.0
5.0
3.6
4.9
4.9
Note:
The Mineral Resource is inclusive of the Ore Reserves.
Inconsistencies in totals are due to rounding.
Refer to announcement “Pre-Feasibility Study Completed” dated 15 December 2016.
This Mineral Resource statement has been compiled in accordance with the guidelines of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (The JORC Code – 2012 Edition).
Mineral Resources were based on cut-off grades of 2.5% TGC for Namangale North and 4% TGC for Namangale South.
As per clause 49 of the JORC 2012 Code, to detail the specifications of the minerals reported above:
Size
µm
Label
500 Super Jumbo
Jumbo
300
180
Large
150 Medium
75 Small
Fine
-75
Namangale 1 (now
Bunyu 1)
%
1
13
29
12
27
18
Namangale 2 (now
Bunyu 2)
%
9
29
29
8
16
9
Namangale 3 (now
Bunyu 3)
%
5
26
30
10
19
11
Note:
Inconsistencies in totals are due to rounding.
Refer to announcement “Pre-Feasibility Study Completed” dated 15 December 2016.
As of the 30 June 2020, the Graphite Ore Reserves for Volt Resources were:
Ore Reserve Classification
Ore (Mt)
TGC (%)
Contained
Graphite (Mt)
Namangale 1 North (now Bunyu 1)
Namangale 2 South (now Bunyu 2)
Namangale 3 South (now Bunyu 3)
Subtotal - Proved
Namangale 1 North (now Bunyu 1)
Namangale 2 South (now Bunyu 2)
Namangale 3 South (now Bunyu 3)
Subtotal - Probable
Total Ore Reserve
Proved
Probable
19.3
-
-
19.3
95.8
6.4
5.8
108.1
127.4
4.32
-
-
4.32
4.4
5.11
3.05
4.37
4.36
0.8
-
-
0.8
4.2
0.3
0.2
4.7
5.6
52
VOLT RESOURCES LTD
ADDITIONAL ASX INFORMATION
For the year ended 30 June 2020
Note:
Inconsistencies in totals are due to rounding.
Refer to announcement “Pre-Feasibility Study Completed” dated 15 December 2016.
This Ore Reserve statement has been compiled in accordance with the guidelines of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (The JORC Code – 2012 Edition).
Ore Reserves are based on the following processing cut-off that varied between deposits: 1.29% TGC for Namangale 1, 1.52% for
Namangale 2, and 1.76% for Namangale 3.
Material changes in Mineral Resources and Ore Reserve Holdings from the previous financial year
The material changes in the Graphite Mineral Resources from the 2019 financial year to the 2020 financial year:
There were no material changes to Mineral Resources or Ore Reserves during the year ended 30 June 2020. An
updated subset of the Mineral Resources and Ore Reserves relating to the Stage 1 higher grade portion of the
Bunyu 1 deposit was announced on 31 July 2018 and is further detailed below.
Governance Arrangements and Internal Controls with respect to Mineral Resource and Ore Reserve Estimates
The Company ensures that all Mineral Resource and Ore Reserve calculations are subject to appropriate levels
of governance and internal controls.
Exploration Results are collected and managed by competent qualified geologists and metallurgists. All data
collection activities are conducted to industry standards based on a framework of quality assurance and quality
control protocols covering all aspects of sample collection, topographical and geophysical surveys, drilling,
sample preparation, physical and chemical analysis and data and sample management.
Mineral Resource and Ore Reserve estimates are prepared by qualified independent Competent Persons. If
there is a material change in the estimate of a Mineral Resource, the modifying factors for the preparation of
Ore Reserves, or reporting an inaugural Mineral Resource or Ore Reserve, the estimate and supporting
documentation in question are reviewed by a suitably qualified independent Competent Person.
The Company reports its Mineral Resources and Ore Reserves on an annual basis in accordance with the JORC
Code 2012 Edition.
The Ore Reserves and Mineral Resources Statement is based on and fairly represents information and supporting
documentation prepared by competent and qualified independent external professionals.
The Mineral Resources Statement has been approved by a Competent Person, Mr Mark Biggs of ROM Resources
Ltd, a member of the Australasian Institute.
The Ore Reserves Statement has been approved by Mr Andrew Law of Optiro Pty Ltd, a Competent Person who
is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Law, Mr Biggs and Mr Bull have consented
to the inclusion of the Statement in the form and context in which it appears in this Annual Statement or Report.
Competent Person’s Statements
The information above is extracted from the announcement dated 15 December 2016. The Company confirms
that it is not aware of any new information or data that materially affects the information included in the original
market announcement and, in the case of estimates of Mineral Resources and Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in the relevant market announcements
continue to apply and have not materially changed.
On 31 July 2018, the Company announced an updated subset of the Mineral Resources and Ore Reserves
relating to the Stage 1 higher grade portion of the Bunyu 1 deposit. The subset is further detailed in a separate
section with separate competent person statements below.
The Company confirms that the form and context in which the Competent Person’s findings are presented have
not been materially modified from the original market announcement. Nevertheless, for ease of access, please
see the relevant Competent Person’s statements below:
53
VOLT RESOURCES LTD
ADDITIONAL ASX INFORMATION
For the year ended 30 June 2020
The information in this report that relates to Mineral Resources is based on information compiled by Mr Mark
Biggs, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy. Mr Biggs is
a Director of ROM Resources Pty Ltd. Mr Biggs has sufficient experience that 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’. Mr Biggs consents to the inclusion in the report of the matters based on
his information in the form and context in which it appears.
The information in this report that relates to Ore Reserves is based on information compiled Mr Andrew Law, a
Competent Person who is a Fellow and Chartered Professional of the Australasian Institute of Mining and
Metallurgy. Mr Law was previously a Director of Optiro. Mr Law has sufficient experience that 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’. Mr Law consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
In accord with the Stage 1 Feasibility Study for the Bunyu Graphite Project Tanzania dated 30 July 2018 – The
Bunyu 1 (Stage 1): Mineral Resources & Ore Reserves tables below, relate to the Stage 1 higher grade portion
of the Bunyu 1 deposit, not the entire Bunyu 1 deposit as detailed above.
The July 2018 resource model was developed for investigation of the Stage 1 pit designs. The global Mineral
Resource for Bunyu 1 reported with the 2016 Pre-feasibility Study results, on 15 December 2016 has not been
re-estimated. The July 2018 model is restricted to above 240 mRL and includes only the top two layers of
mineralisation within the southern area and the top four layers of mineralisation within the northern area.
Geological interpretation has identified additional mineralised layers that are not included in the July 2018
resource model: seven within the northern area, eight within the south area and two within the eastern area.
The Mineral Resources have been reported for the July 2018 model at a 2.93% TGC cut-off grade and are
included in the Table below. This cut-off grade was determined from technical and economic assessment of the
mineralisation within the Stage 1 Feasibility Study (FS) pits by Orelogy. This resource tabulation is not a
resource statement for the entire Bunyu 1 project and is presented for validation of the July 2018 resource
model which has been used as the basis of the July 2018 Stage 1 FS pit designs.
Bunyu 1 (Stage 1): Mineral Resources (restricted above the base of model surface and above 240 mRL)
reported above a cut-off grade of 2.93% TGC
Classification
Measured
Indicated
Inferred
Total
Mt
8.0
31.9
36.9
76.8
TGC (%)
5.8
5.6
5.1
5.4
Note: this update does not cover the global Mineral Resources at Bunyu 1
The July 2018 mineral resource model was used to determine the Bunyu 1 Stage 1 FS Ore Reserve and associated
mine production schedule. The selected mining scenario, based on the outcomes of an open pit optimisation,
was for three pits to be developed over 7 years with a total of 2.8Mt of mill feed being mined.
The scope of the Stage 1 FS was to develop a project plan for a relatively small component of the Bunyu 1 deposit.
The Bunyu Stage 1 FS Ore Reserve is considered a subset of the 2016 Namangale 1 Ore Reserve released by Volt
54
VOLT RESOURCES LTD
ADDITIONAL ASX INFORMATION
For the year ended 30 June 2020
Resources 15 December 2016 as part of the 2016 Namangale Pre-Feasibility Study. It therefore does not replace
or update this reserve and is for the purposes of underpinning the Stage 1 FS. The overall Ore Reserve for Bunyu
(previously Namangale) will be updated as part of the Bunyu Stage 2 DFS which will be based on the whole of
the Bunyu 1 deposit.
The specifications of the minerals reported above:
Size
µm
Label
500 Super Jumbo
Jumbo
300
Large
180
150 Medium
-150
Small to Fine
Bunyu 1 (Stage 1)
%
1
11
27
15
46
Note:
Inconsistencies in totals are due to rounding.
Refer to announcement “Positive Stage 1 Feasibility Study Bunyu Graphite Project, Tanzania” dated 30 July 2018.
The Bunyu 1 (Stage 1): Ore Reserves (not the entire Bunyu 1 deposit)
Material
Ore
Location
North
Central
South
Starter
South
Main
TOTAL
Classification
Proved
Probable
Subtotal
Proved
Probable
Subtotal
Proved
Probable
Subtotal
Proved
Probable
Subtotal
Proved
Probable
Total
kt
833
60
892
472
343
815
399
399
709
709
1,305
1,511
2,815
TGC %
6.1%
5.1%
6.0%
6.2%
5.6%
5.9%
0.0%
6.8%
6.8%
0.0%
6.6%
6.6%
6.1%
6.4%
6.3%
Waste
kt
Total
kt
Strip
Ratio
109
1,001
0.12
593
1,408
0.73
916
1,315
2.30
649
1,358
0.91
2,267
5,082
0.81
The Bunyu Stage 1 FS Ore Reserve comprises 46% Proved and 54% Probable Ore Reserves. Both the Stage 1 Ore
Reserve and Mineral Resource underpinning it have been prepared by competent persons in accordance with
JORC requirements.
The Bunyu Stage 1 FS mining schedule was designed to generate a minimum 400,000tpa of plant feed annually,
for seven years, resulting in an average feed grade of 6.26% TGC.
Competent Person’s Statements
The information in the Stage 1 Feasibility Study for the Bunyu Graphite Project Tanzania dated 30 July 2018 that
relates to Mineral Resources is based upon information compiled by Mrs Christine Standing who is a Member of
the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of
Geoscientists. Mrs Standing is an employee of Optiro Pty Ltd and has sufficient experience relevant to the style
of mineralisation, the type of deposit under consideration and to the activity undertaken to qualify as a
Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results,
55
VOLT RESOURCES LTD
ADDITIONAL ASX INFORMATION
For the year ended 30 June 2020
Mineral Resources and Ore Reserves. Mrs Standing consents to the inclusion in this annual statement of a
summary based upon her information in the form and context in which it appears.
The information in the Stage 1 Feasibility Study for the Bunyu Graphite Project Tanzania dated 30 July 2018 that
relates to Ore Reserves was compiled by Mr Ross Cheyne who is a Fellow of the Australasian Institute of Mining
and Metallurgy. Mr Cheyne is a Director of Orelogy Consulting Pty Ltd and has sufficient experience relevant to
the style of mineralisation, the type of deposit under consideration and to the activity undertaken to qualify as
a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. Mr Cheyne consents to the inclusion in this annual statement of a
summary based upon his information in the form and context in which it appears.
56