West Wits Mining Limited
ABN 89 124 894 060
Annual Report
For the year ended
30 June 2022
West Wits Mining Limited
Contents
30 June 2022
Corporate directory
Chairman's Letter
Review of operations
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of West Wits Mining Limited
Shareholder information
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West Wits Mining Limited
Corporate directory
30 June 2022
Directors
Mr Michael Quinert, Non-Executive Chairman
Mr Jac van Heerden, Managing Director
Mr Hulme Scholes, Non-Executive Director
Mr Peter O’Malley, Non-Executive Director
Mr Timothy Chapman, Non-Executive Director
Joint Company Secretaries
Mr Simon Whyte
Mr Paul Godfrey (appointed 6th September 2021)
Notice of annual general meeting
The details of the annual general meeting of West Wits Mining Limited are:
Registered office
Principal place of business
Share register
Auditor
Solicitors
Bankers
Level 6, 400 Collins Street
Melbourne VIC 3000
Australia
Unit 8A, Sifon Industrial Park
285 Sifon St, Robertville
Roodepoort 1709
South Africa
Automic Pty Ltd
Level 5 126 Phillip Street
Sydney NSW 2000
+61 2 9698 5414
William Buck
Level 20, 181 William Street
Melbourne VIC 3000
QR Lawyers
Level 6, 400 Collins Street
Melbourne VIC 3000
National Australia Bank
Level 2, 330 Collins Street
Melbourne VIC 3000
Stock exchange listing
West Wits Mining Limited shares are listed on the Australian Securities Exchange
(ASX code: WWI)
Website
https://westwitsmining.com/
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West Wits Mining Limited
Chairman's Letter
30 June 2022
Chairman’s Letter
Dear Fellow Shareholders,
On behalf of the Board of Directors, I am pleased to present the 2022 Annual Report for West Wits Mining Limited (“ASX:
WWI”; “OTCQB: WMWWF”).
Over the past twelve months the Company has increased its flagship Witwatersrand Basin Project (“WBP”) mineral resource
by 724, 000oz Au, updated the project’s Scoping Study and improved Phase 1 Qala Shallows’ Definitive Feasibility Study
(“DFS”). The Company has also undertaken significant capital works to establish the WBP mine site, including surface
infrastructure and the refurbished decline shaft. In Western Australia, our Mt Cecelia Project is now managed under a A$10M
Farm-In/JV Agreement with Rio Tinto to earn up to 80% interest in the project. The initial maiden drilling campaign at Mt
Cecelia is due to commence in October 2022.
The WBP is positioned to facilitate tremendous growth for the Company. It is a well understood and robust project close to
essential infrastructure in South Africa’s well-established gold producing area around Johannesburg. The WBP will deliver a
27-year Life-of-Mine with an estimated 16.1M tonnes of ore. Average gold production run at 65 000 oz Au per annum, peaking
at up to 92 500oz per annum by the sixth year.
The recently updated DFS for Qala Shallows shows that even with recent inflation and increased costs, especially diesel, the
optimisation of our mine plan still yields robust results, confirming our view of having a long-term, de-risked project. Indeed,
the updated DFS indicates an increased production build-up and materially improved financial results. This Phase 1 of our
four-phased approach comprises an initial declared ore reserve of 290 000oz Au and a peak steady-state production of
55 000oz per annum for ten years. We have already completed critical infrastructure to facilitate the commencement of Qala
Shallows. It is important to note that West Wits is not simply re-opening an old mine. Although we are using some refurbished
access shafts, we are in reality developing a new resource based on historical geological data and results from our drilling
campaign using a proven mining method.
The revised DFS has also opened the pathway to pursue Project 200. Project 200 aims to investigate and resolve the technical
challenges involved in leveraging this large resource to increase production at WBP to 200 000oz Au per annum. Our technical
team, together with independent consultants, have conducted encouraging preliminary work which has advanced Project 200
to a point where we believe there is merit in embarking on a new Scoping Study process. We hope to deliver more positive
updates on Project 200 as our work progresses over the coming year.
On the exploration front, we have identified areas for new exploration work at the WBP designed to increase the size and
quality of the existing resource. We are also applying for the extension of our rights beyond the existing Mining Right to
recapture ground lost in the conversion from the original Prospecting Right to the current footprint. We are optimistic that these
initiatives will lead to further positive news with respect to our already strong resource inventory.
The WBP also has significant potential for uranium production. West Wits has embarked on its Phase 1 Uranium Drilling
Program in September 2022, the first of a three-phased diamond drilling initiative which aims to convert the declared JORC
Uranium Exploration Target of 12 to 16mbls into an Inferred Mineral Resource at Bird Reef Central. These uranium prospects
are near existing gold resources which are not currently within the WBP mine plan. As such, the possibility of mining gold
concurrently with uranium is something which merits investigation.
Our dual listing on the OTCQB market commenced this year providing us with better access into the North American
investment communities. Our ongoing meetings with institutional and sophisticated investors, as well as financiers, have been
very positive. When people are looking for a long-term, sustainable and financially robust gold project, we can deliver.
I know that our team, particularly within the African context, have the in-depth understanding and experience of the regulatory
and operational issues to deliver on the promise of WBP. Our engagement with the relevant governmental departments is
positive and our local economic development initiatives with surrounding communities are on-track.
I would like to thank our shareholders for your support in entrusting our team to develop this exciting project. We are all working
very hard to ensure that this faith and support are fully vindicated by the success of the Company.
Michael Quinert
Chairman
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West Wits Mining Limited
Review of operations
30 June 2022
2022 ANNUAL REPORT - REVIEW OF OPERATIONS
HIGHLIGHTS
Witwatersrand Basin Project (“WBP”), South Africa
➢ Updated global JORC Mineral Resource Estimate (“MRE”) stands at 4.28Moz at 4.58g/t Au (2g/t cut-off)1
➢ Maiden Ore Reserve declared, currently 3.2MT at 2.81g/t for 290 000oz Gold2
➢ Scoping Study results3 demonstrate the WBP’s potential to be WWI’s cornerstone project as the Company aims to
become a mid-tier gold producer
•
•
•
•
•
➢
➢
➢
65,000oz pa – 25 Years - Average ROM Gold Production (max 92,000oz - Year 6)
Financial Modelling Results at US$ 1,750 Gold Price highlighted by:
▪
Free Cashflow of US$ 511m
▪ NPV7.5 – Pre-tax of US$ 227m and Post-tax of US$ 160m
▪
IRR – Pre-tax of 33% & Post-tax of 29%
Definitive Feasibility Study (“DFS”) of Qala Shallows (Stage 1 of the WBP) confirmed project, updated DFS results
released post year end increased production build-up and provided improved financial results2:
All-In-Sustaining-Cost (“AISC"): US$ 1,093/oz Gold with a steady-state US$ 962/oz
Steady-state production at 55 000oz per annum for 10-years
Project Financials: Pre-tax NPV7.5 to US$ 180m
Bird Reef Central Uranium Exploration Program outlined and aimed at converting the significant uranium Exploration
Target4 to a JORC compliant MRE. Exploration drilling commenced in August 2022
Commencement of Project 200 technical studies which aim to explore the potential to increase production capacity
at the WBP up to 200,000oz per annum
Mt Cecelia Project, Western Australia
➢ Rio Tinto Exploration to explore Mt Cecelia project under a A$10M Farm-In and Joint Venture Agreement to up to
80%
➢ Mt Cecelia MLTEM data5 provides robust first-pass exploration drill targets with initial minimum 800m drill program to
start in October 2022
SOUTH AFRICA
Witwatersrand Basin Project (“WBP”); Central Rand (WWI: 66.6%), Gauteng Province
The WBP is set to deliver a significant 1,615,000oz of Gold over a 27-year Life-of-Mine (“LoM”) with an estimated 16.1M tonnes at a Run
of Mine (“ROM”) grade of 3.11g/t Au Gold from mining Stages 1-42. The WBP is revitalising a well-known ore body using a modern mining
approach in a region steeped in gold mining tradition and expertise. The result is that the WBP business model is uniquely streamlined and
geared for rapid production ramp-up.
An Early Works Program at the Qala Shallows presented an opportunity to establish a small-scale mining operation, with the objective to
proof the designed mining method to mine areas already exposed at WBP which was completed during the reporting period with successful
installation of critical infrastructure and rehabilitation of the box cut and decline which provides immediate access to the ore body.
Image 1 showcases Qala Shallows’ advanced infrastructure established to date.
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West Wits Mining Limited
Review of operations
30 June 2022
IMAGE 1: COMPLETED INFRASTRUCTURE AT QALA SHALLOWS
WBP JORC Mineral Resource Update
Image 2 showcases the extend of the WBP’s vital resource which stands at 4.28Moz at 4.58g/t Au (2g/t cut-off)1.
IMAGE 2: THE WITWATERSRAND BASIN PROJECT
On 2 December 2021, the Company announced a Mineral Resource update1 for the WBP which significantly grew the Company’s global
Mineral Resource Estimate (“MRE”) by 724,000oz (20%) and increasing the grade with 0.32g/t Au for the combined Bird Reef, Main Reef
Leader and Main Reef. Table 1 outlines the current WBP Global Mineral Resource Estimate.
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TABLE 1: UPDATED GLOBAL MRE FOR THE WITWATERSRAND BASIN PROJECT AT 2.0G/T CUT-OFF1
Category
Measured
Indicated
Measured & Indicated
Inferred
Tonnes (M)
Grade (g/t Au)
Ounces
8.81
11.26
21.06
7.98
4.60
4.19
4.38
5.10
1,449,000
1,517,000
2,967,000
1,309,000
29.05
Notes: Global MRE is set at a 2.0g/t Au cut-off and reported in accordance with the JORC Code of 2012. Number differences may occur due to rounding errors. The MRE
is inclusive of declared Ore Reserves2.
Total
4,276,000
4.58
The previously announced (23 July 2021) MRE as reported in the Annual Report End June 2021, was updated for exploration and Mineral
Resource modelling on the Main Reef package and Bird Reef East, extending the previous Mineral Resource to a depth of 1,000m below
surface in these areas. The geological modelling and resource estimation of the previous MRE was extended only to a maximum depth of
~400m below surface for these Reef areas. Only the MRE for the Kimberley Reefs were previously extended below 400m, having a
maximum depth of 1,500m.
The MRE increase prompted West Wits to review its August 2021 WBP Scoping Study which was outlined in the 2021 Annual Report. The
updated geological information was worked into the Scoping Study’s mine plan by Bara Consulting Pty Ltd (“Bara”), which resulted in an
updated and improved production target and financial modelling.
Updated WBP Scoping Study
In March 2022, the Company released the results of its updated Scoping Study for the WBP3. It confirmed West Wits’ clear strategy to
advance the WBP into a significant, long-term gold production operation. Results from Bara’s financial modelling confirmed Scenario 4
(chosen from four phased scenarios) as the optimal development model. Table 2 outlines the key production metrics.
TABLE 2: WBP’S KEY PRODUCTION METRICS3
WBP – SCOPING STUDY – PRODUCTION DATA
LOM (Construction to Relinquishment)
SCENARIO 4
27 Years
Total Years of Production1
Total Production (Ore Tonnes)
Max Production Rate (Ore Tonnes)
ROM - Grade Au (Average)
ROM - LOM Gold Produced
Metallurgical Recovery Au (Overall)
Average Annual Gold Production1
Max Gold Production (Year 6)
25 Years
16,150,000
890,000tpa
3.11g/t Au
1,615,000oz
92%
65,000oz
92,500oz
WBP’s financial analysis framed the financial feasibility of investment for each of the target areas in the WBP as follows3:
• Qala Shallows (Stage 1)
Qala Shallows had a projected steady state ROM production at a rate of 55,000oz Au per annum for approximately 10 years and
total production of 663,000oz Au over a 17-year LOM. (The Qala Shallows was advanced to a DFS during FY2022 with revised
DFS results released on 4th August 2022 which are outlined in the Annual Report)
• Main Reef Package (Stage 2)
Estimated to provide 593,000t at a ROM grade of 3.36g/t Au for 64,000oz of additional production over years 4 to 7 combined.
• Bird Reef East (Stage 3)
Estimated to provide 897,000t at a ROM grade of 3.34g/t Au for 96,000oz of additional production over years 6 to 12 combined.
• Qala Deeps (Stage 4)
Estimated to provide 7.3Mt at a ROM grade of 3.11g/t Au for 732,000oz of additional production over years 13 to 27 combined.
• Bird Reef Central (Stage 5) was excluded from the analysis due to its lower recovered grade profile and standalone infrastructure
costs. The Bird Reef Central & West has a declared JORC gold MRE of 1.38Mt Ore at 2.66g/t for 118,000oz Au6. The restatement
of the Company’s Uranium Exploration Target under JORC (2012) 4 sits within the Bird Reef Central area.
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West Wits Mining Limited
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Image 3 depicts the WBP’s staged mining approach as outlined in its Scoping Study.
IMAGE 3: STAGED WBP MINE DEVELOPMENT
Image 4 provides a graphical representation of the WBP’s production profile and incremental contributions of each development stage
identified by the Scoping Study.
IMAGE 4: THE WBP SCOPING STUDY’S ROM PRODUCTION SCHEDULE IN ANNUAL OUNCES OF GOLD BY STAGE OVER THE
WBP’S 27-YEAR LOM3
The Scoping Study’s financial evaluation of the WBP was undertaken using a discount cashflow analysis. The evaluation used a gold price
of US$ 1,750 per ounce and a rate of exchange of R 15/US$.
At a low gold price of US$ 1,500/oz, the project is still viable, and at a gold price of US$ 2,250/oz, the NPV more than doubles making this
a highly robust project. Table 3 details the key baseline financial metrics.
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West Wits Mining Limited
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TABLE 3: WBP’S KEY FINANCIAL METRICS AT DIFFERENT GOLD PRICES3
METRIC
Revenue
Free Cashflow
Pre-Tax Project NPV7.5
Post-Tax Project NPV7.5
Pre-Tax Project IRR
Post-Tax Project IRR
Operating Margin
Profitability Index
Peak Funding Requirement
Payback Period
(from commencement)
UNIT
US$
1,500/oz
US$
1,750/oz
US$
2,000/oz
US$
2,250/oz
US$'m
2,226
2,597
2,968
3,339
US$'m
276
US$'m
US$'m
%
%
%
ul
US$'m
years
93
65
19%
17%
38%
1.4
93
7
511
227
160
33%
29%
47%
2.1
77
5
743
361
253
46%
40%
54%
2.7
61
5
977
495
346
58%
50%
59%
3.4
54
4
Qala Shallows Early Works Program
The Company initiated an Early Works Program at Qala Shallows in October 2021, engaging mining contractor, Modi Mining (Pty) Ltd
(“Modi”). The Early Works Program presented an ideal opportunity to establish a small-scale mining operation, with the objective to proof
the designed mining method to mine areas already exposed at WBP and resulted in the delivery of first ore of approximately 3 000t during
the period.
Image 5 portrays the extensive activities at Qala Shallows.
IMAGE 5: KEY INITIATIVES AT QALA SHALLOWS FOR RAPID PRODUCTION RAMP-UP
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West Wits Mining Limited
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Image 6 showcases Qala Shallows’ advanced infrastructure established to date.
IMAGE 6: COMPLETED INFRASTRUCTURE AT QALA SHALLOWS
Change Houses and Lamp Room
1. Office Complex
2. Temporary Workshop
3. Recently Rehabilitated Box Cut
4. Run of Mine Stockpile
5. Generators and Utilities Infrastructure
6. Ventilation Shaft
Upon completion of establishing surface infrastructure and obtaining access to the ore bodies, the Company decided to slow development
from April 2022 to renegotiate the mining contract with Modi from a cost-plus to a production rate-based contract, as well as run a tender
process to procure a new fleet of underground mining equipment. This process necessitated a slowdown and ultimately a pause of
operations at Qala Shallows.
The time was used to embark on vital key initiatives to allow for rapid production ramp-up:
• Completion of all critical infrastructure, including substations and water infrastructure
• Completion of the decline and box cut rehabilitation
• Completion of on reef underground access
• Advancing consultation with the Department of Water Affairs for the obtainment of an Integrated Water Use License
• Advancing toll treatment negotiations which are key to completing the Qala Shallows funding process.
The foundations for Qala Shallows have been laid. Figure 1 depicts Qala Shallows’ project progress and the amount of technical work
achieved to date towards moving quickly to production status.
FIGURE 1: QALA SHALLOWS PROJECT PROGRESS
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West Wits Mining Limited
Review of operations
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Revised Qala Shallows (Stage 1) Definitive Feasibility Study
Original DFS results were released on 2 September 2021 and reported in the 2021 Annual Report. Equipped with new geological and
structural information obtained through the Early Works Program, Wits undertook more detailed short-term planning as actual costs were
experienced from contractors deployed to site, as well as capital costs from tenders undertaken for execution phase. The Company
successfully negotiated new rates with Modi, which are a significant improvement over the rates used in the original DFS.
The updated rates prompted West Wits to re-work its existing DFS and to re-estimate the CAPEX and OPEX for Qala Shallows. The results,
announced on 4 August 2022, confirmed the robust economic viability of this WBP Stage 1 venture.
Qala Shallows Improved Production Schedule
Image 7 outlines Qala Shallows’ production profile to an execution level of accuracy. The updated production profile indicates waste and
ore tonnes, as well as ROM gold content in ounces. Qala Shallows has a progressive steady-state gold production of approximately 60
000oz per annum for approximately eight years2.
IMAGE 7: QALA SHALLOWS PRODUCTION PROFILE SHOWING THE WASTE AND ORE MINING, OVERLAID WITH THE OUNCE
PROFILE OVER LOM2
Table 4 outlines the production data highlights from the updated LoM plan.
TABLE 4: KEY PRODUCTION METRICS FOR QALA SHALLOWS2
QALA SHALLOWS DFS UPDATE – PRODUCTION DATA
OUTCOME
Life-of-Mine (Construction to Relinquishment)
Total Production
Max Production Rate (Tonnes)
ROM Grade Au (Average)1
LOM Contained Au
Metallurgical Recovery Au (Overall)
Gold Produced
Average Annual Gold Production
Average Annual Steady State Gold Production (9.3yrs)
Max Gold Production (Year 6)
1 Including Inferred Resources
15.7 years
7.6 million
699,000t pa
2.98 g/t Au
726,400 oz
92%
668,000 oz
43,000 oz
55,000 oz
60,000 oz
Qala Shallows Improved Financial Evaluation
The updated capital and operating cost estimates, along with the updated LoM plan, were used in the DFS financial evaluation. Gold price
and other economic assumptions remained unchanged from the original DFS. Table 5 shows the financial evaluation of Qala Shallows,
comparing September 2021’s DFS results7 to the updated DFS results2 released post period.
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West Wits Mining Limited
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TABLE 5: QALA SHALLOWS BASELINE FINANCIAL EVALUATION OUTCOME
WBP – QALA SHALLOWS DFS – FINANCIAL
EVALUATION
Total Revenue (US$)
Total Free Cashflow (US$)
Peak Funding (US$)
LOM C1 Cost (US$/oz)
LOM All in sustaining Cost (US$/oz)
Steady-State All in Sustaining Cost (US$/oz)
Payback (years)
Pre-Tax Net Present Value 7.5 (US$)
Post-Tax Net Present Value 7.5 (US$)
Pre-Tax Internal Rate of Return (%)
Post-Tax Internal Rate of Return (%)
OUTCOME
Sep’217
$ 1 160 million
$ 240 million
$ 50 million
$ 970 / oz
$ 1 144 /oz
$ 1 027 /oz
5.5 years
$ 151m
$ 106m
35%
30%
Aug’222
$ 1 170 million
$ 268 million
$ 63 million
$ 917 / oz
$ 1 093/oz
$ 962 /oz
5,0 years
$ 180m
$ 125m
38%
32%
The waterfall chart in Image 8 clearly shows that the most significant improvement to the financial evaluation is attributed to earlier
revenue (green) obtained by the improved ramp-up of the revised LoM plan.
IMAGE 8: WATERFALL CHART FOR MEASURED, INDICATED AND INFERRED EVALUATION
Qala Shallows Sensitivity Analysis
The sensitivity analysis in Table 6 shows that at a low gold price of US$1,400/oz, the project is still sustainable, and at a gold price of
US$2,200/oz, the NPV almost doubles against a base rate of US$1,750. Even with recent inflation and increased costs, especially diesel,
the optimisation of the mine plan still yielded positive results and confirms the Company’s view of having a long-term, reliable project.
TABLE 6: QALA SHALLOWS SENSITIVITY ANALYSIS (GOLD PRICE)2
Gold Price
Post-Tax
Project NPV7.5
Post-Tax
Project IRR
Operating
Margin
Peak Funding
Requirement
Payback
Period
US$/oz
US$’m
1 400
1 600
1 750
1 900
2 200
38
88
125
161
234
%
15
25
32
39
54
%
35
43
48
52
58
US$’m
years
77
68
63
57
48
7.1
5.6
5.0
4.6
3.9
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Recent devaluation of the South African Rand compared to the United States Dollar presents further project potential as demonstrated in
Table 7 which outlines the sensitivity to exchange rate. This is largely driven by the additional revenue realised by the project at higher
ZAR/US$ exchange rates, as most project costs remain in South African Rand terms.
TABLE 7: QALA SHALLOWS SENSITIVITY ANALYSIS (EXCHANGE RATE: ZAR/US$)2
Exchange
Rate
Pre-Tax
NPV7.5
Post-Tax
NPV7.5
Post-Tax
IRR
Operating
Margin
Peak Funding
Requirement
Peak Funding
Requirement
Payback
Period
ZAR/US$
US$'m
US$'m
13.00
15.00
17.00
19.00
114
180
231
271
78
125
160
188
%
21
32
43
54
%
40
48
54
59
ZAR'm
1 077
939
819
711
US$'m
Years
83
63
48
37
6.1
5.0
4.4
3.9
Qala Shallows Ore Reserve
Qala Shallows’ Mineral Reserves were updated based on the improved confidence in the mine plan as outlined above. Table 8 shows the
updated Ore Reserve.
TABLE 8: ORE RESERVE STATEMENT FOR QALA SHALLOWS (JORC 2012)2
Ore Reserve
Category
Proved
Probable
Total
Tonnage
Grade
Content
Content
(Mt)
0.83
2.38
3.21
(g/t)
3.04
2.73
2.81
(kg)
2 529
6 491
9 019
(oz)
81 300
208 700
290 000
Grand Totals
Uranium Exploration
In October 2021, the Company announced a Uranium Exploration Target to JORC (2012) standard4 and the inclusion of Uranium as a
targeted mineral at the Bird Reef Sequence for an enhanced value-add to the WBP. The previous exploration results in 2008 confirmed
consistent Uranium mineralisation over approx. 3.3km with more than 7km of strike identified along the targeted Bird Reef Sequence within
the WBP Mining Right area4.
Table 8 outlines the magnitude of the Uranium Exploration Target.
TABLE 8: URANIUM EXPLORATION TARGET4
Range
Tonnes (M)
Grade (ppm) U3O8
Content (Mlb) U3O8
Low
10
300
12
High
22
550
16
EXPLORATION TARGET: The potential quantity and grade are conceptual in nature. There has been insufficient exploration and evaluation of historical information to estimate a
Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
This opportunity is significant as it would provide the potential to mine Uranium concurrently with the Gold bearing reefs within the Bird Reef
sequence, therefore potentially claiming Gold and Uranium credits from the same mining activities using the same infrastructure.
West Wits’ Uranium Drilling Program commenced late July 2022 which is aimed at converting the declared JORC Uranium Exploration
Target into an Inferred Mineral Resource.
Phase 1 entails three drill-holes, each approximately 120 meters deep, in known areas of mineralisation. West Wits expects to announce
the results by October 2022.
Image 8 depicts drilling operations during Phase 1 of the Uranium exploration program designed during the period.
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IMAGE 8: PHASE 1 URANIUM DRILLING OPERATIONS ON AIMED TO CONVERT THE JORC COMPLIANT EXPLORATION TARGET
A further two phases of drilling are planned once the data from the Phase 1 drilling has been analysed. Phase 2 would follow the zone of
mineralisation on the strike and down dip within the Mining Right area as shown in Image 9.
IMAGE 9: PLAN VIEW OF THE BIRD REEF CENTRAL AND WEST EXPLORATION TARGET AREA, WITHIN THE MINING RIGHT
BOUNDARY
Once phase 2 is completed, West Wits anticipates it will be in a position to convert the Exploration Target to a JORC compliant Inferred
Mineral Resource. Phase 3 drilling is planned to test the continuous nature of the Uranium bearing reef to depths beyond 400m below
surface. Table 9 outlines the drilling program.
TABLE 9: PHASED APPROACH OF URANIUM DRILLING PROGRAM
Uranium Exploration
PHASED URANIUM DRILLING PROGRAM
Drill Holes
Planned Meters
Phase 1
Phase 2
Phase 3
TOTAL
360m
2,640m
1,600m
4,600M
3
10
2
15
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Image 10 showcases a 3D schematic of the historical (red), Phase 1 (green) and Phase 2 (yellow) drillholes.
IMAGE 10: HISTORICAL DRILL-HOLES (RED), PHASE 1 (GREEN) AND PHASE 2 (YELLOW) DRILL-HOLES
The phased program is designed to arrive at an improved geological understanding of the mineralised Bird Reef Sequence and ultimately
arriving at a JORC compliant Mineral Resource estimation.
Project 200
Based on the WBP’s encouraging Scoping Study results, West Wits embarked on a two phased study to determine and assess the relevant
engineering and other hurdles which would need to be resolved to achieve a further substantial increase of production with an aspirational
target of 200,000oz per annum (“Project 200”). Bara was appointed to conduct various technical studies to investigate the potential to
increase production capacity at the WBP.
The trade-off studies on the critical constraints of the existing mine plan included:
•
Dewatering. Certain sections within the current mining areas are flooded following years of dormancy and excluded from the
existing mine plan. If dewatering these areas were determined to be economically viable, new areas under the Mining Right will be
open to exploration and inclusion in the JORC MRE.
• Optimised monthly production. A rework of the Scoping Study’s mine design and scheduling will determine an improved monthly
production rate.
• Optimised infrastructure. Locations for new access points infrastructure to the various reefs will be determined.
•
•
Potential of a metallurgical plant. A third-party process facility will be used for Qala Shallows’ current production levels. Project
200’s Scoping Study will investigate the construction of a metallurgical plant to meet the demands of an increased production rate.
Tailings deposition strategy. If the construction of a metallurgical plant proves to be viable, the Scoping Study will investigate
the most suitable tailings deposition processes. These may include: discharge into the old workings; surface dry stacking; and/or
cooperation with operators in the proximity for depositing tailings at their facilities.
The trade-off analysis under Phase 1 of Project 200 was successful in testing the critical elements required to increase the scale of the
WBP. Bara recommended that there is sufficient scope to justify the commissioning of a new Scoping Study to assess the potential increase
of production at the WBP with the aim of achieving 200,000oz Au per annum.
The Company does not yet have reasonable grounds to determine that the WBP can achieve 200,000oz Au per annum. Bara has provided
a scope of work for a new Scoping Study to determine the viability of increasing production at the WBP. The Company expects to make a
decision regarding the commissioning of Phase 2 in Q4 2022 which if taken would mean results of the new scoping study would be expected
to be available approximately 6 months from commissioning.
Licensing
In July 2021, West Wits received formal communication from South Africa’s Director General of Department of Mineral Resources and
Environment (“DMRE”) that the Company’s Mining Right application was granted in terms of section 23(1) of the Mineral and Petroleum
Resources Development Act, 2002 (Act 28 of 2002). The Mining Right footprint was constrained relative to the Prospective Right (“PR”)
area to minimise the impact of the mine on interested and affected parties. The areas not included in the reduced Mining Right area are
non-core and do not affect the mine plan. A PR lodged by the Company has been accepted by the DMRE to re-secure certain sections of
the old PR area and thereby reintroduce additional Mineral Resources to the MRE. The Company anticipates that, subject to the granting
of the new PR, a significant portion of the old Mineral Resource could be recaptured.
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West Wits Mining Limited
Review of operations
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AUSTRALIA
Mt Cecelia, Paterson Province (100%)
In Western Australia’s Paterson Province, a maiden drilling program of minimum 800m at West Wits' Mt Cecelia Project is scheduled to
commence in October 2022. Targeting gold, nickel and copper, the exploration program is managed by Rio Tinto Exploration (Pty) Ltd
(“RTX”) under a A$10M Farm-In/JV Agreement to earn up to 80% interest in the project6. RTX is a wholly owned subsidiary of Rio Tinto
Limited (“ASX: RIO”). RTX brings a wealth of technical expertise, resources and regional knowledge which, combined with synergies from
their exploration of Mt Cecelia’s neighbouring tenements (that are held 100% by RTX), will enable the Mt Cecelia targets to be rapidly and
systematically tested.
Figure 2 showcases Mt Cecelia’s eight SGC target zones. The targets are electromagnetic (“EM”) anomalies identified from airborne
surveys, targets 1-4 were followed up ground EM surveys undertaken by West Wits in 2021.
FIGURE 2: MT CECELIA PROJECT TARGET ZONES8
MLTEM Targets and Modelling Outcomes
As reported in the Annual Report end June 2021, a MLTEM survey program7 was successfully completed at Mt Cecelia in August 2021 by
SRK Consulting’s geological specialists. Four primary SKYTEM anomalies (SGC_1; SGC_2; SGC_3 and SGC_4) were found to be related
to legitimate bedrock related conductors, supporting commencement of a first pass exploration drilling program.
Table 11 provides a summary and related model outcome of each of the prioritised conductors. SGC_1 was classed the highest priority
target defined via the SKYTEM survey given the clearly discrete nature of the anomalism and correlation with a zone of de-magnetisation
in the local sequence.
TABLE 11: KEY MLTEM DATA WITH SGC_1 SHOWING THE HIGHEST CONDUCTANCE VALUE WHICH WILL ALSO THEN BE
FIRST PRIORITY FOR FURTHER EXPLORATION5
Dip &
Direction
75-80o NE/ENE
dip
10-15 o E dip
25-30 o NE
Priority
1
2
4
3
>500
350-400
>800
15-20 o E/SE
Target
Conductance
(S)
Depth to
Top (m)
Strike
Length (m)
Strike
Direction
Depth
Extent (m)
SGC_1
4000-5000+
100-125
~150-175
NNW-SSE
>300
SGC_2
SGC_3
400-600
100-150
75-125
50-75
800+
~400
SGC_4
200-300
50-75
~>800
NW-SE
NW-SE
N-S/NNW-
SSE strike
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West Wits Mining Limited
Review of operations
30 June 2022
Image 11 MLTEM Survey vehicle onsite at Mt Cecelia project testing the four primary SKYTEM anomalies.
IMAGE 11: MLTEM Survey Operations at Mt Cecelia
Tambina Project, Pilbara (80%)
Exploration activity on the Tambina project by the Farm-In partner, First AU Limited, has significantly reduced. The Company determined
the asset does not form part of WWI’s core operation and interested parties are being sought for the disposal of asset. The Company is
unable to accurately determined the recoverable amount of the asset and took the prudent approach to fully impair the carrying value of
$1.8M during the reporting period.
DEREWO PROJECT, PANIAI REGENCY (WWI: 64%), INDONESIA
WWI is continuing to pursue a transaction involving PT Madinah Quarataa’n (PTMQ) as the Company is of the view that the underlying
assets, despite being written off for accounting purposes, provide a significant opportunity to prospective buyers with regional expertise.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Health, Safety and Environment
Environment
West Wits formally closed its open pit mining activities during the reporting period and the WBP is now an entirely underground mining
operation with the refurbishment of the Qala Shallows box cut. Rehabilitation of historical & disused mineworks removes hazardous areas
for the communities and removes access to underground workings by illegal miners. The Company has an ongoing and successful
collaboration with the DMRE and the South African Police Service to address illegal mining activities within the Company’s Mining Right
area to the benefit of local communities.
The WBP’s small footprint and surface infrastructure warrant low rehabilitation liability and, therefore, the project will have a minimal impact
on the surrounding environment. Additionally, underground mining mean low noise and dust levels. The WBP follows an efficient water use
model that caters for minimal water usage and zero effluent discharge into local tributaries. A low risk profile of possible water pollution is
therefore presented.
The images below portray the encouraging restoration of the early open pit mine into a secure underground operation as well as the decline
and box cut rehabilitation of the Qala Shallows.
IMAGE 12: QALA SHALLOWS OPEN-PIT MINE BEFORE (LEFT) AND AFTER (RIGHT) REHABILITATION
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West Wits Mining Limited
Review of operations
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IMAGE 13: CEO JAC VAN HEERDEN AT THE QALA SHALLOWS BOX CUT BEFORE (LEFT) AND AFTER (RIGHT) REFURBISHMENT
Health and Safety
West Wits subscribes to the philosophy that a Health, Safety and Environment (“HSE”) policy is of paramount importance. The Company
believes that it is the inherent right of every person to work in an environment where health and safety take precedence over business
activities. It is every person’s inherent right to return home safely. The technical committee approves and monitors compliance by
management, employees and appointed contractors to imperative health and safety legislation. Successful inspections from the DMRE
confirmed that the Company’s Mine Health and Safety performance confirms to the Mine Health and Safety Act 29 of 1996 and the Company
a Lost-Time Injury Frequency Rate of nil.
Social & Local Economic Development
It is important to West Wits to actively contribute towards the socio-economic development of the areas in which the Company operates, as
well as the areas from which most of the workforce is sourced. West Wits invests in individuals and businesses from local communities
through its Local Economic Development Programme (“LED”). The Company has formed a LED forum in collaboration with the City of
Joburg’s elected Ward Councillors and will host bi-monthly events with community wards 41; 43; 44; 49 ;70 and 127 in the vicinity of the
mining operation.
West Wits’ growing database of wide-ranging skills also enables the Company to procure and employ from a large pool of local talent. For
its Early Works programme, the Company procured Black Economic Empowerment (“BEE”) firm, Siyabhowa-Humba JV, to initiate bush
clearance and undertake site preparation and potable water supply from Rand Water in Johannesburg. The WBP’s noise and dust levels
are regularly monitored by appointed BEE engineering firm, MWEM (Pty) Ltd.
IMAGE 14: MEMBERS OF THE EARLY WORKS TEAM AT THE QALA SHALLOWS
Social and Labour Plan (“SLP”)
West Wits embraces social responsibility and understands that community support is crucial to the success of the WBP. The Company
has submitted its approved SLP to the DMRE. The SLP addresses the Company’s socio-economic development plans in accordance
with the MPRDA and MPRDA Regulation 46.
17
West Wits Mining Limited
Review of operations
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Even before the Company obtained its Mining Right for the WBP, it started supporting a homegrown Non-Profit Organisation with an
income-generating project by means of a motorbike and monthly donations during the Covid pandemic lockdown. Hlokomelo Motorbike
Delivery Service provides a low-cost outsourcing delivery service for medication and groceries to aged and sickly community members.
The project is now a fully-fledged business with a self-sustaining revenue stream. With the assistance of the Hlokomelo Community
Organisation, 200 food parcels were distributed to vulnerable homes during the 2021 festive season.
Beneficiary Learnership Programme
West Wits provided a 2021 scholarship to a local
disadvantaged youth, Takuddwa Chikonye, to
register at the University of the Witwatersrand for his
studies in BSc Actuarial Science. He passed all his
first-year courses with distinction. For its 2022 bursary
programme, the Company selected Malaika Mosotho
Ramanyimi from Tshiawelo in Soweto. She is
currently studying Mining Engineering at the
University of Johannesburg.
The Company selected two young trainees for its
Beneficiary Learnership Programme which forms part
of the SLP. Both Resego Segwabe and Solly Given
Nkuna are from Matholesville in Roodepoort close to
the WBP. Resego is studying Fitting and Turning, as
she has always been fascinated by machines and
wants work in an environment which encourages
success and growth. Solly is studying to become a
diesel mechanic. He appreciates the high demand for
this particular skill in South Africa. Both are
completing their courses through the Anglo-American
Engineering Skills Training Centre.
Women in Mining
West Wits Head of Corporate Affairs, Tozama Kulati
Siwisa, talked as a panel speaker at the Women in
Mining Africa Summit that took place in May
2022. She focussed on how to excel in a male-
dominated environment which is pertinent to the
mining industry. Tozama discussed ways how to stay
true to yourself while exploring strategies to be seen
and heard, which includes playing to your strengths.
The Summit was aimed at driving change and
enabling more women to attain senior leadership
positions in the mining sector.
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West Wits Mining Limited
Review of operations
30 June 2022
Risks
West Wits operating and financial results and performance are subject to various risks and uncertainties, some of which are beyond West
Wits reasonable control. Set out below are matters which the Group has assessed as having the potential to have a material impact on its
operating and/or financial results and performance:
Fluctuations in external economic drivers including macroeconomics and metal prices: The consolidated entity’s primary focus is
the advancement of its WBP. If the Company achieves successes leading to mineral production, the revenue it may derive through the sale
of commodities exposes the potential income of the Company to commodity price (especially gold). Commodity prices fluctuate and are
affected by many factors beyond the control of the Company.
Furthermore, international prices of various commodities are denominated in United States dollars, whereas the income and expenditure of
the Company are in South African Rand and Australian dollars. The Company reports its accounts in Australian currency. These factors
expose the Company to the fluctuations and volatility of the rate of exchange between the United States dollar, the South African Rand and
the Australian dollar as determined in international markets.
General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the
Company’s activities, as well as on its ability to fund those activities. Furthermore, share market conditions may affect the value of the
Company’s securities regardless of the Company’s operating performance.
Foreign Country Specific Risks: The Company is subject to country-specific risks associated with its operations in South Africa. The
Company’s ability to carry on business in the normal course may be adversely affected by considerations associated with economic, social
or political instability, changes in regulatory regimes affecting foreign ownership, government participation or working conditions, exchange
rate fluctuations, and/or changes to mining licensing and regulatory regimes. Political, economic and social conditions including potential
social unrest, widespread adverse health conditions or events, and occupation of sites by squatters and/or illegal or artisanal miners in
South Africa could affect and may in the future affect the Company’s activities. We believe that these risks are balanced against a robust
legal system with high quality judiciary which can be accessed to ameliorate the impact of specific country risks associated with unlawful
conduct
Environmental risks: The operations of the Company have historically been, and will in future be subject to, extensive environmental laws
and regulations. The Company uses and will continue to use all reasonable endeavours to comply with the environmental, legal and
regulatory requirements, however, these laws are complex and there is a risk of inadvertent non-compliance by the Company. The activities
of the Company impact upon the environment and it is anticipated that any advanced exploration or mine development will impact the
environment further. There is a risk that any mining operation undertaken by the Company may create environmental risks, particularly with
respect to environmental damage through construction activities, disposal of waste products and/or water contamination. Such occurrences
could delay production or increase costs of operations.
Exploration and Tenement interests: The Company’s exploration activities are dependent upon the grant and maintenance of appropriate
authorisations including grants, licences, permits, consents, access arrangements and regulatory authorisations, which may not be granted
or may be withdrawn or made subject to limitations. Renewals and transfers may be affected by completing remediation obligations or
allocating responsibility for environmental liabilities.
The Company holds one granted exploration tenement at Mt Cecelia in Western Australia and has been granted a mining right by the mining
regulator in South Africa. The Company also holds an 80% interest in three small mining leases in Western Australia, known as Tambina,
which are subject to a farm in arrangement with a third party.
Even though the application for a mining right in South Africa has now been granted, third party appeals which objects to the grant of the
mining right by the mining regulator in South Africa have been filed by one party. As previously announced the Company is opposing these
appeals and whilst it believes the Appeals are misconceived there can be no guarantee of success in such a proceeding.
The interests of the Company in its projects are governed by mining legislation, regulations and conditions imposed by the relevant
legislature. Each interest is subject to annual expenditure and reporting obligations. Interests are typically granted for fixed terms and
renewal or extension is subject to regulatory approval, which depends in part upon historical and ongoing compliance with conditions and
relevant law. Failure to meet these requirements may result in loss of one or more interests in a project.
Future requirements for capital: The Company may in future require additional funding to carry out its planned and future activities on its
projects. The Company may also incur unexpected costs in implementing its existing and future exploration and/or development plans,
including engaging contractors to undertake specific activities and meeting regulatory costs and requirements in connection with its projects.
There can be no guarantee that, if required, further financing will be available on commercially acceptable terms, or at all. Any additional
financing through equity issues would be dependent upon the ability of the Company to raise funds in the securities market, which in turn is
dependent on there being sufficient identifiable appetite from investors for equity in the Company. Such equity issues, if successfully
conducted, would also be dilutive to current equity holdings in the Company. Furthermore, debt financing may not be available to support
the scope and extent of proposed activities of the Company. While the Company will seek further funding as and when required, ultimately
access to such funding or lack thereof may require the Company to scale back its operations, including allowing the lapse of one or more
of its projects and/or the postponement, or abandonment, of one or more of its projects.
Lack of production, income or dividends: The Company has a limited history of generating returns from its activities. There is no certainty
that production may start or income will be generated at any particular time or at all, or that production or the levels of revenue (if achieved)
will be profitable.
COVID-19: The outbreak of COVID-19 is impacting global economic markets. The nature and extent of the effect of the outbreak on the
performance of the Company remains uncertain. The Company’s share price may be adversely affected in the short to medium term by
19
West Wits Mining Limited
Review of operations
30 June 2022
the economic uncertainty caused by COVID-19. Further, any governmental or industry measures taken in response to COVID-19 may
adversely impact the operations of the Company and are likely to be beyond the control of the Company.
Third Party Risks: The Company (and its group entities) have contracted with, or will in the future need to contract with, various parties
to enable the implementation of its exploration plans on its projects. Such counterparties include service contractors, consultants,
suppliers, landowners and joint venture/farm-in partners. There is a risk that counterparties may fail to perform their obligations under
existing or future agreements. This could lead to delays, increase in costs, disputes and even litigation. All these factors could negatively
affect the Company’s operations and there can be no assurance the Company would be successful in seeking remedies or enforcement
of its rights through legal actions.
Failure to attract and retain key employees: The responsibility of overseeing the day-to-day operations and the strategic management
of the Company depends substantially on its senior management and Directors. There can be no assurance there will be no detrimental
impact on the performance of the Company or its growth potential if one or more of these senior managers or Directors cease their
employment with the Company and suitable replacements are not identified and engaged in a timely manner.
1.
2.
3.
4.
5.
6.
7.
8.
The original report was “WBP’s Global JORC Mineral Resource Expands by 724,000oz to 4.28MOZ at 4.58 g/t Gold” which was issued with consent of the Competent
Person, Mrs Cecilia Hattingh. The report was released to the ASX on 3 December 2021 and can be found on the Company’s website (https://westwitsmining.com/).
Comprising 8.8MT at 4.60g/t for 1.449Moz measured, 11.3MT at 4.19g/t for 1.517Moz Indicated and 8MT at 5.10g/t for 1.309Moz inferred. The Company is not aware of
any new information or data that materially effects the information included in the relevant market announcement and, in the case of Mineral Resources or Ore Reserves,
that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially
changed. The form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
The original report was “Revised DFS Provides Improved Results for WBP” which was issued with consent of the Competent Person, Mr. Andrew Pooley. The report was
released to the ASX on 04/08/2022 and can be found on the Company’s website (https://westwitsmining.com/). The Company is not aware of any new information or data
that materially effects the information included in the relevant market announcement and, in the case of Mineral Resources or Ore Reserves, that all material assumptions
and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The form and context in
which the Competent Person’s findings are presented have not been materially modified from the original market announcement.
The original report was “Wits Basin Scoping Study” which was issued with consent of the Competent Person, Mr. Andrew Pooley. The report was released to the ASX on
09/03/2022 and can be found on the Company’s website (https://westwitsmining.com/). The Company is not aware of any new information or data that materially effects the
information included in the relevant market announcement. The form and context in which the Competent Person’s findings are presented have not been materially
modified from the original market announcement.
The original report was “West Wits advances exploration work on Uranium at WBP” released to the ASX on 25 October 2021 and can be found on the Company’s website
(https://westwitsmining.com/). The Company confirms that all material assumptions underpinning the production target in the WBP Scoping Study continue to apply and
have not materially changed.
The original report was “Ground EM Survey Confirm High-Priority Targets at Mt Cecelia” which was issued with consent of Competent Person, Mr. Russell Mortimer. The
report was released to the ASX on 10/09/2021 and can be found on the Company’s website (https://westwitsmining.com/). The Company is not aware of any new
information or data that materially effects the information included in the relevant market announcement. The form and context in which the Competent Person’s findings
are presented have not been materially modified from the original market announcement.
The original report was “Updated Mineral Resource Estimate for the Soweto Cluster” which was issued with consent of competent persons Mr Hermanus Berhardus Swart,
it was released to the ASX on 22 January 2016 and can be found on the Company’s website (https://westwitsmining.com/). The company is not aware of any new
information or data that materially effects the information included in the relevant market announcement. The form & context in which the Competent Persons’ findings are
presented have not been materially modified.
The original report was “DFS Delivers Strong Results on 1st Stage of WBP Development” which was issued with consent of the Competent Person, Mr. Andrew Pooley.
The report was released to the ASX on 02/09/2021 and can be found on the Company’s website (https://westwitsmining.com/).
The original report was “HEM Survey Identifies Eight Targets Areas at Mt Cecelia” which was issued with consent of Competent Person, Mr. Russell Mortimer. The report
was released to the ASX on 16/12/2020 and can be found on the Company’s website (https://westwitsmining.com/). The Company is not aware of any new information or
data that materially effects the information included in the relevant market announcement. The form and context in which the Competent Person’s findings are presented
have not been materially modified from the original market announcement.
ORE RESERVE AND MINERAL RESOURCE STATEMENT
Ore Reserves
In September 2021, following the completion of the Definitive Feasibility Study for Qala Shallows, the Company released West Wits Mining’s
maiden Ore Reserve Statement, as reported in the Company’s 2021 Annual Ore Reserve and Mineral Resource Statement
Subsequently an updated Life-of-Mine plan and budget have been generated by incorporating a more detailed short-term mine plan and
utilising actual cost incurred during the Early Works Program, as well as updated capital costs obtained from tender processes in Q2 2022
and CPI increases. Using this updated plan that increased the reserve base by 12,000oz to declared Ore Reserve at 3.2 million tonnes at
2.81g/t for 290 000oz gold which was released on 4th August 2022.
Only measured and indicated resources have been considered in the declaration of ore reserves. All factors required to convert Resources
to Reserves have been considered including dilutionary effects, cut off grades, pillar requirements, non-viable parts of the mineral resource,
capital and operating costs, selling prices, geotechnical conditions, mining efficiencies, metallurgical recoveries, environmental and social
constrains, etc. These factors were used to develop a mine plan and mining inventory. The use of these factors has resulted in a technically
and economically viable plan.
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West Wits Mining Limited
Review of operations
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JORC 2012 compliant Ore Reserves as at 4th August 2022
Mining Category
Reserve Category
Tonnes
Grade
Content
Mt
g/t (Au)
Koz
Underground Mining - WBP
Qala Shallows
K9B Kimberley Reef
K9A Kimberley Reef
Total Proved
Total Probable
Total Proved and Probable
Proved Reserve
Probable Reserve
Proved Reserve
Probable Reserve
0.44
1.92
0.39
0.46
0.83
2.38
3.21
2.83
2.81
3.29
2.36
3.05
2.73
2.81
39.5
174.1
41.8
34.6
81.3
208.7
290.0
Notes:
1. Ore Reserves are a subset of Mineral Resources.
2. Ore Reserves reported in conformance with the JORC 2012 Code definitions.
3. Ore Reserves are calculated using a gold price of US$ 1,750/ounce.
4. Ore Reserves are calculated using a cut-off grade of 2g/t Au.
5. The above data has been rounded to the nearest 1,000,000 tonnes, 0.1 g/t gold grade and 1,000 ounces. Errors of summation may
occur to rounding.
Mineral Resource Estimates (“MRE")
The Company’s 2021 Annual Ore Reserve and Mineral Resource Statement reported the Company’s global MRE of 25.91Mt at 4.26g/t for
3.55Moz gold (inclusive of Ore Reserves) as at 23 July 2021.
On 2 December 2021, the Company announced an update to the MRE for the WBP which increased the global MRE to 29.0Mt at 4.58g/t
for 4.27Moz gold (inclusive of Ore Reserves). The 724,000oz (20%) increase was a result of geological modelling and resource estimation
of the Main Reef, Main Reef Leader and Bird Reef East undertaken by Rock and Stock Investments (Pty) Ltd (“Rock and Stock”). The
updated MRE is based on modelling to a depth of 1,000m below surface maximum for the Main Reef, Main Reef Leader and the Bird Reef.
Whereas the geological modelling and resource estimation of the previous MRE was extended only to a maximum depth of ~400m below
surface for these areas. Only the MRE for the Kimberley Reefs were previously extended below 400m, having a maximum depth of 1,500m.
JORC compliant technical and competent person reports accompany all work and is available from the company’s internal Technical Library.
All data utilised and generated during modelling is available and similarly backed up in digital form in company folders.
JORC 2012 compliant Mineral Resource Estimate as at 30 June 2022
CATEGORY
MEASURED
INDICATED
INFERRED
TOTAL
WBP - REEF / AREA
Mt
g/t
Koz
Bird Central & West
0.04
3.73
4
2.2
4.30
307
Mt
0.9
2.0
g/t
Koz
Mt
g/t
Koz
2.51
4.74
72
0.4 2.86
305
0.4 4.48
0.1
3.87
12
0.2 4.22
Mt
1.4
4.6
g/t
2.66
4.51
Koz
118
671
0.3
4.08
36
41
60
24
Bird East1
K9B Kimberley Reef
Central
K9B Kimberley Reef
East
K9A Kimberley Reef
East
BPR Marquis (MSA)2
Kimberley Reef Sol
Plaatje2
Main Reef Leader1
Main Reef1
South Reef2
1.9
4.37
272
6.2
4.14
828
2.4 5.51
417
10.5 4.49
1 516
2.1
4.54
306
1.8
4.20
245
4.2 5.14
694
8.1
4.77
1 246
0.7
2.8
5.81
4.73
135
425
0.2
0.1
8.34
5.15
41
14
0.1 7.54
0.3 5.27
21
53
1.0
3.2
6.36
4.79
197
492
Total
9.8
4.60 1 449 11.3 4.19
1 517
8.0 5.10
1 309
29.0 4.58
4 276
Notes:
1. Bird and Main East reef horizons were remodelled applying industry best practice 3D modelling - Independent competent person
JORC 2012 complying sign-off
2. Remnants of BPR, Sol Plaatjes and South reef removed form mineral resource inventory - remnants to small - uneconomic
3. Global MRE set at a 2.0g/t Au cut-off. Reported in accordance with the JORC Code of 2012.
4. Number differences may occur due to rounding errors.
5. Mineral Resources are reported as inclusive of Ore Reserves
6. The Inferred Mineral Resources have a high degree of uncertainty and it should not be assumed that all or a portion thereof will be
converted to Ore Reserves.
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West Wits Mining Limited
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COMPLIANCE STATEMENTS
Previously Reported Information
Competent Person – Mineral Resources and Exploration Results for the Kimberly Reef package and Bird Reef Central & West
(WBP)
The information in this report that relates to Mineral Resources and Exploration Results for the Witwatersrand Basin Project is based on
and fairly represents information compiled by Mr Hermanus Berhardus Swart. Mr Swart is a Competent Person who is a Professional
Natural Scientist registered with the South African Council for Natural Scientific Professions (No. 400101/00) and a Fellow of the Geological
Society of South Africa, each of which is a “Recognised Professional Organisation” (RPO). Mr. Swart 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 Swart consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Competent Person – Mineral Resources and Exploration Results for the Bird Reef East and Main Reef package (WBP)
The information in this report that relates to Mineral Resources Estimate for the Witwatersrand Basin Project is based on and fairly represents
information compiled by Mrs Cecilia Hattingh, who is an employee of Rock Stock Investments (Pty) Ltd. Mrs Hattingh is a Competent
Person who is a Professional Natural Scientist registered with the South African Council for Natural Scientific Professions (No. 4000/19/03)
and a Fellow of the Geological Society of South Africa (GSSA96902), each of which is a “Recognised Professional Organisation” (RPO).
Mrs Cecilia Hattingh 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”. Mrs Cecilia Hattingh consents to the release of the report and the information
contained here within in the form and context in which it appears.
Competent Person – Ore Reserves for the Witwatersrand Basin Project
The information in this report which relates to Ore Reserves is based on, and fairly represents, information and supporting documentation
compiled by Mr Andrew Pooley for Bara Consulting (Pty) Ltd. Mr Pooley is a Principal Mining Engineer and does not hold any shares in the
company, either directly or indirectly. Mr Pooley is a Fellow of the Southern African Institute of Mining and Metallurgy (SAIMM ID: 701458)
and 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 Pooley consents to the inclusion in this report of the matters based on his information in the form
and context in which it appears.
Competent Person – Uranium Exploration Target for the Witwatersrand Basin Project
Mr Michael Robertson is a Competent Person who is a Professional Natural Scientist registered with the South African Council for Natural
Scientific Professions (No. 400005/92), a Fellow of the Geological Society of South Africa, each of which is a “Recognised Professional
Organisation” (RPO) and a Member of the Australasian Institute of Mining and Metallurgy. Mr Robertson 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 Robertson consents to the release of the report and the information contained here within.
Competent Person – Exploration Results for the Mt Cecelia Project
The information presented herein that relates to results from the MLTEM survey is based on information compiled and reviewed by the
Russell Mortimer, a Competent Person who is a Member of The Australian Institute of Geoscientists and fairly represents this information.
Mr Mortimer has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activities
undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mortimer consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.
This report includes information that relates to Exploration Results prepared and first disclosed under the JORC Code (2012) and
extracted from the Company’s previous ASX announcements, with the Competent Person for the relevant original market announcement
indicated in brackets, as follows:
• WBP: “Updated Mineral Resource Estimate for the Soweto Cluster” 22/01/2016 (Mr Swart)
• Mt Cecelia: “HEM Survey Identifies Eight Targets Areas at Mt Cecelia” 16/12/2020 (Mr Mortimer)
• WBP: “Restated JORC Resource of 3.55Moz Au for Mining Right” 23/07/2021 (Mr Swart)
• WBP: “West Wits advances exploration work on Uranium at WBP” 25/10/2021 (Mr Robertson)
• WBP: “DFS Delivers Strong Results on 1st Stage of WBP Development” 02/09/2021 (Mr Pooley)
• Mt Cecelia: “Ground EM Survey Confirm High-Priority Targets at Mt Cecelia” 10/09/2021 (Mr Mortimer)
• WBP: “WBP's Global MRE Expands 724,000oz to 4.28Moz at 4.58g/t Au” 03/12/2021 (Mrs Hattingh)
• WBP: “Wits Basin Scoping Study” 09/03/2022 (Mr Pooley)
• WBP: “Revised DFS Provides Improved Results for WBP” 04/08/2022 (Mr Pooley)
The Company is not aware of any new information or data that materially effects the information included in the relevant market
announcement. The form and context in which the Competent Person’s findings are presented have not been materially modified.
22
West Wits Mining Limited
Review of operations
30 June 2022
Forward Looking Statements
This Announcement includes “forward-looking statements” as that term within the meaning of securities laws of applicable jurisdictions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond West Wits
Mining Limited’s control. These forward-looking statements include, but are not limited to, all statements other than statements of historical
facts contained in this presentation, including, without limitation, those regarding West Wits Mining Limited’s future expectations. Readers
can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,”
“expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “risk,” “should,” “will” or “would” and other similar expressions.
Risks, uncertainties and other factors may cause West Wits Mining Limited’s actual results, performance, production or achievements to
differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements).
These factors include, but are not limited to, the failure to complete and commission the mine facilities and related infrastructure in the time
frame and within estimated costs currently planned; variations in global demand and price for gold and silver; fluctuations in exchange rates
between the U.S. Dollar, South African Rand and the Australian Dollar; the failure of West Wits Mining Limited’s suppliers, service providers
and partners to fulfil their obligations under construction, supply and other agreements; unforeseen geological, physical or meteorological
conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labour shortages, political and other
factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions.
Readers are cautioned not to place undue reliance on forward-looking statements. The information concerning possible production in this
announcement is not intended to be a forecast. They are internally generated goals set by the board of directors of West Wits Mining Limited.
The ability of the Company to achieve any targets will be largely determined by the Company’s ability to secure adequate funding, implement
mining plans, resolve logistical issues associated with mining and enter into any necessary off take arrangements with reputable third
parties. Although West Wits Mining Limited believes that its expectations reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking
statements.
TENEMENT SCHEDULE
Tenements
Location
Held at end
of FY2022
Acquired during
FY2022
Mining Right -
GP 30/5/1/2/2/10073 MR (WBP)
Witwatersrand Basin, West
Rand, South Africa
66.6%*
Mining Lease –
M45/988 (Tambina)
Mining Lease –
M45/990 (Tambina)
Mining Lease –
M45/991 (Tambina)
Pilbara region, Western
Australia
Pilbara region, Western
Australia
Pilbara region, Western
Australia
Exploration License –
EL 45/5045 (Mt Cecelia)
Pilbara region, Western
Australia
80%*
80%*
80%*
100%
Paniai Regency, Indonesia
29%*
Production IUP –
NO. 47/2010 (Derewo)
^ Exploration IUP –
NO. 76/2010 (Derewo)
^ Exploration IUP –
NO.31/2010 (Derewo)
Paniai, Indonesia
Intan Jaya, Indonesia
64%*
64%*
64%*
^ Exploration IUP –
NO. 543/142/SET (Derewo)
Nabire, Indonesia
-
-
-
-
-
-
-
-
Disposed
during
FY2022
-
-
-
-
-
-
-
-
* Minority positions are held by local parties in compliance with local legislation in relation to foreign ownership and mineral and production rights.
^ Exploration IUP’s may no longer be within the compliance period and could be subject to cancellation
23
West Wits Mining Limited
Directors' report
30 June 2022
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of West Wits Mining Limited (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 30 June 2022.
Directors and company secretaries
The following persons were directors of West Wits Mining Limited during the whole of the financial year and up to the date
of this report, unless otherwise stated:
Directors
Mr Michael Quinert, Non-Executive Chairman
Mr Jac van Heerden, Managing Director
Mr Hulme Scholes, Non-Executive Director
Mr Peter O’Malley, Non-Executive Director
Mr Timothy Chapman, Non-Executive Director
Joint Company Secretaries
Mr Simon Whyte
Mr Paul Godfrey (appointed 6 September 2021)
Information on directors & company secretaries
Name:
Title:
Appointment date:
Experience and expertise:
Mr Michael Quinert
Non-Executive Chairman
13/04/2007
Mr Quinert graduated with degrees in economics and law from Monash University and
has over 35 years’ experience as a commercial lawyer, and over 25 years as a partner
in a Melbourne law firm. He has extensive experience in assisting and advising public
companies on capital raising and market compliance issues.
First Au Ltd (ASX:FAU)
Other current directorships:
First Graphene Limited (ASX:FGR)
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Interests in performance rights:
Remuneration & Nomination Committee, Audit & Risk Committee
43,198,588
15,750,000
4,200,000
Name:
Title:
Appointment date:
Experience and expertise:
Mr Jac van Heerden
Managing Director
16/04/2020
Mr Van Heerden is a Mining Engineer (MBA) with over 20 years of operations and
project experience in South Africa, DRC and Zimbabwe. His experience has been
gained on both underground and open pit mines with a focus in gold, platinum and base
metals. Jac was President of ERG Africa’s copper/cobalt mine overseeing 3,800
personnel prior to joining WWI.
Other current directorships:
None
Former directorships (last 3 years): None
None
Special responsibilities:
8,465,311
Interests in shares:
5,025,000
Interests in options:
3,000,000
Interests in performance rights:
Right to 0.34% interest
Interest in West Wits MLI (Pty) Ltd
24
West Wits Mining Limited
Directors' report
30 June 2022
Name:
Title:
Appointment date:
Experience and expertise:
Name:
Title:
Appointment date:
Experience and expertise:
Mr Peter O’Malley
Non-Executive Director
16/04/2020
Mr O’Malley is US based investment finance executive, Mr O’Malley’s experience
includes 13 years at Credit Suisse and later managing Deutsche Bank’s HK Natural
Resources investment banking practice in Asia-Pacific. Peter has extensive experience
advising on M&A, debt/equity transactions, and capital optimisation strategies in
multiple jurisdictions.
Bonterra Resources (TSX-V: BTR), Barnwell Industries (NYSE: BRN)
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Interests in performance rights:
Remuneration & Nomination Committee, Audit & Risk Committee
8,967,037
2,025,000
-
Mr Hulme Scholes
Non-Executive Director
22/03/2011
Mr Scholes graduated with a BA Law and LLB degree from the University of the
Witwatersrand and is an admitted attorney of the High Court of South Africa. Mr
Scholes specialises in mining and mineral law, has practised exclusively in the field for
20 years and is regarded as one of South Africa's experts within mining law. He was a
partner of Werksman Attorneys based in Johannesburg from 1999 to 2008 and is
currently a senior partner at Malan Scholes Attorneys. He started his professional
career as a learner official for Harmony Gold Mining Co. Limited in the 1980's which
provides him with a unique blend of experience.
None
Other current directorships:
Former directorships (last 3 years): Randgold and Exploration Company Limited (JSE Listing) (JSE: RNG).
Special responsibilities:
Interests in shares:
Interests in options:
Interests in performance rights:
None
1,136,364
4,525,000
-
Name:
Title:
Appointment date:
Experience and expertise:
Mr Timothy Chapman
Non-Executive Director
19/11/2020
Mr Chapman is Melbourne based with a Bachelor of Commerce from Monash
University. He has over 20 years’ experience in financial services and capital markets.
Mr Chapman is currently Director, Corporate Broking at PAC Partners which is a
leading advisory, equity capital markets and research house focused on emerging and
mid-cap companies with a strong track record in the resources sector.
Other current directorships:
None
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Interests in options:
Interests in performance rights:
Chair of Remuneration & Nomination Committee, Member of Audit & Risk Committee
273,000
2,025,000
-
Name:
Title:
Experience and expertise:
Mr Simon Whyte
Chief Financial Officer & Joint Company Secretary
Mr. Whyte is a Chartered Accountant and has over 12 years’ experience in accounting
and operational management, including Ernst & Young and BP Australia Pty Ltd
Other current directorships:
None
Former directorships (last 3 years): None
None
Special responsibilities:
11,427,984
Interests in shares:
3,000,000
Interests in options:
3,000,000
Interests in performance rights:
25
West Wits Mining Limited
Directors' report
30 June 2022
Name:
Title:
Experience and expertise:
Mr Paul Godfrey
Joint Company Secretary
Mr Godfrey is a Senior Associate at law firm QR Lawyers and has practiced exclusively
in corporate and commercial law since his admission in February 2017. Mr Godfrey is
also the company secretary of ASX listed mineral exploration company First Au Limited
(ASX:FAU).
Other current directorships:
None
Former directorships (last 3 years): None
None
Special responsibilities:
-
Interests in shares:
-
Interests in options:
-
Interests in performance rights:
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') and of each Board committee held during the year
ended 30 June 2022, and the number of meetings attended by each director were:
Nomination and
Full Board
Attended
Held
Remuneration Committee Audit and Risk Committee
Attended
Attended
Held
Held
Mr Michael Quinert
Mr Timothy Chapman
Mr Hulme Scholes
Mr Peter O’Malley
Mr Jac van Heerden
5
5
2
5
5
5
5
5
5
5
2
2
-
2
-
2
2
-
2
-
1
1
-
1
-
1
1
-
1
-
Held: represents the number of meetings held during the time the director held office or was a member of the relevant
committee.
Principal activities
The Group's continued principal activities in the course of the reporting period were to explore for gold and base metals at
the mining tenements situated in South Africa and Western Australia and complete feasibility studies for the Witwatersrand
Basin Project in South Africa and commence mine development.
There have been no other significant changes in the nature of those principal activities during the financial year.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Significant changes in the state of affairs
During the year, the Group successfully raised capital approximately $16.5 million (before costs) via placements and rights
issue. The Company issued 441.2 million new fully paid ordinary shares during the period via the placement, conversion of
unlisted securities and payments under WWI’s Employee Security Ownership Plan “ESOP”.
On 16th July 2021, South Africa’s Director General of Department of Mineral Resources and Energy granted the Company’s
Mining Right application in terms of section 23(1) of the Mineral and Petroleum Resources Development Act, 2002 (Act 28
of 2002) for the Witwatersrand Basin Project (“WBP”), South Africa. The Company a Definitive Feasibility Study on the first
stage of the WBP and commenced development activity.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
26
West Wits Mining Limited
Directors' report
30 June 2022
Matters subsequent to the end of the financial year
On 11th July 2022, the Company issued 24.2 million WWI Shares and under the Equity Placement Agreement with SBC
Global Investment Fund for gross proceeds of $0.44 million (before costs) and on the 23rd August 2022 issued 5 million
unlisted options with an exercise price of $0.0264 (2.64 cents) and expiry date 23 August 2025.
On 11th August 2022, the Group completed a share placement to raise $2.5 million (before costs) via the issue of 139 million
new fully paid ordinary shares at $0.018 (1.8 cents) per share to existing and new sophisticated and professional investors.
On 4th August 2022, the Company released to the ASX results from the revised Definitive Feasibility Study on the first stage
of development of the WBP. The study showed a Pre-tax NPV7.5 of US$180 million and IRR of 38% at a Gold Price of
US$1,750/oz, an increase of US$30M and 3% respectively on the original DFS results released on 2nd December 2021.
No other matters or circumstances have occurred subsequent to period end that has significantly affected, or may
significantly affect, the operations of the group, the results of those operations or the state of affairs of the Group in
subsequent financial years.
Likely developments and expected results of operations
The likely developments in the Group’s operations, to the extent that such matters can be commented upon, are covered in
the Review of Operations in this annual report and above. In the opinion of the Directors, disclosure of detailed information
regarding the expected results of those operations in financial years after the current financial year is not predictable at this
stage, or may prejudice the interests of the Group; accordingly this information has not been included in this report.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State
law.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Remuneration Policy
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Remuneration Policy
Remuneration of all Executive and Non-Executive Directors, and Officers of the Group is determined by the remuneration
and nomination committee, or in the absence of a remuneration and nomination committee, remuneration is determined by
the Board.
The Group is committed to remunerating Senior Executives and Executive Directors in a manner that is consistent with "best
practice" (including the interests of shareholders) and market-competitive by ensuring fees are appropriate and in line with
the market. Remuneration packages are based on fixed component, determined by the Executives' position, experience and
performance, and may be satisfied via cash or equity.
Non-Executive Directors are remunerated out of the aggregate amount approved by shareholders and at a level that is
consistent with industry standards. Non-Executive Directors do not receive performance based bonuses and prior
shareholder approval is required to participate in any issue of equity. No retirement benefits are payable other than statutory
superannuation, if applicable.
27
West Wits Mining Limited
Directors' report
30 June 2022
Remuneration policy versus company financial performance
Since the Company was incorporated, it has listed on the Australian Securities Exchange and acquired mining tenements in
Western Australia and South Africa. Exploration activities commenced in January 2008 within the South African tenements.
The nature of the Group's mining activities is highly speculative and can provide high returns if successful. The speculative
nature of these activities and recent global economic trends, have been factors which have affected the Group's share price
performance and shareholder wealth over the period.
The Group's remuneration policy is based on industry practice as well as the Group's performance for Executives and takes
into account the risk and liabilities assumed by the Directors and Executives as a result of their involvement in the speculative
activities undertaken by the Group. Directors and Executives are fairly compensated for the extensive work they undertake.
Remuneration of the Managing Director and Key Management Personnel are entitled to Short Term Incentive bonuses linked
to performance during the financial year. Directors’ and Executive remuneration also includes Long Term Incentive in the
form of options, the value of which is linked to the performance of the Company. The Group continued to recognise the
share-based payment expense from equity issued in prior period and in current year of $96,325 (2021: $112,109). The bonus
expense recognised during the year related to service condition of each recipient.
The Non-Executive Directors remuneration pool is $500,000, last approved by shareholders at the FY21 annual general
meeting.
Use of remuneration consultants
Due to the size and nature of the organisation, the Company has not engaged remuneration consultants to review and
measure its policy and strategy. The board reviews remuneration strategy periodically and may engage remuneration
consultants in the future to assist with this process.
Additional remuneration approved by shareholders during the year
The list of remuneration related resolutions proposed for the Directors and other Key Management Personnel approved at
the AGM held on 17 December 2021 are as below:
Issue of unlisted options summarised below:
●
Class
Exercise Price
Vesting Date
Expiry Date
Value per
Option ($)
Class A Options
Class B Options
Class C Options
$0.10 (10 cents)
$0.15 (15 cents)
$0.25 (25 cents)
1 July 2022
1 July 2023
1 July 2024
1 July 2024
1 July 2025
1 July 2026
0.009
0.012
0.014
Director
Jac van Heerden
Michael Quinert
Timothy Chapman
Peter O’Malley
Hulme Scholes
Simon Whyte
Class A
Options
Class B
Options
Class C
Options
1,675,000
1,250,000
675,000
675,000
675,000
1,000,000
1,675,000
1,250,000
675,000
675,000
675,000
1,000,000
1,675,000
1,250,000
675,000
675,000
675,000
1,000,000
TOTAL
5,025,000
3,750,000
2,025,000
2,025,000
2,025,000
3,000,000
5,950,000
5,950,000
5,950,000 17,850,000
28
West Wits Mining Limited
Directors' report
30 June 2022
●
●
●
Issue of an aggregate of 2,448,981 fully paid ordinary shares of the Company (Director Shares) under the ESOP.
Director shares are proposed to be issued in three equal tranches of 816,327. Mr van Heerden may elect to receive up
to 50% of the Director Shares in cash. The first tranche of Director Shares is proposed to be issued on or about 1 July
2022, with the second and third tranches proposed to be issued on or about 1 July 2023 and 2024, respectively. Any
right to receive unissued Director shares immediately lapses upon Jac ceasing to be Managing Director.
The maximum aggregate annual sum that may be payable collectively to the non-executive Directors of the Company
be increased by $200,000, from $300,000 per annum to $500,000 per annum.
Adoption of WWI employee incentive scheme.
Performance Bonus
KMP contracts executed on 1st November 2021 include an entitlement to an annual performance bonus which is determined
by measuring a baseline bonus amount against a balanced scorecard of Key Performance Indicators (KPI). Performance
Bonuses accrue annually on 1st July, the amounts vested in the reporting period are payable in cash in current financial year.
The minimum annual performance bonus amount is Nil and maximum amount is $208,333 (Mr van Heerden) and $125,000
(Mr Whyte). The three categories of KPI metrics are outlined below:
KPI
Safety1
Budget2
Production3
STI PERFORMANCE BONUS KPI
SCORECARD
MR VAN
HEERDEN
SCORECARD BASELINE
WEIGHT
MR VAN
HEERDEN
VESTED
MR VAN
HEERDEN
FORFEITED BASELINE VESTED
MR WHYTE MR WHYTE MR WHYTE
FORFEITED
20%
40%
40%
25,000
50,000
50,000
125,000
-
-
-
-
25,000
50,000
50,000
15,000
30,000
30,000
125,000
75,000
-
-
-
-
15,000
30,000
30,000
75,000
1.
2.
3.
Measurement of safety performance of operations, including fatalities and Lost Time Injury Frequency Rate
(LTIF). There were Nil fatalities and Nil LTIFR during the reporting period and therefore the conditions were satisfied
Measurement of actual costs against periodic cash forecast. Actual costs versus budgeted costs for projects
delivered during the period were below forecasts and therefore the conditions were satisfied.
Note: Having regard to the financial position of the Company the payment of the component of the STI, for which the
original conditions had been satisfied (1 & 2), is deferred and conditional until such time as a toll treating agreement
has been executed. Therefore Performance Bonuses relating to Safety (1) and Budget (2) KPI’s will be assessed in
the subsequent reporting period.
Measurement of actual production against forecast production. Due to the Company’s decision to pause
development at the WBP, production activities were paused and the production target was not able to be
achieved. The portion of the performance bonus related to Production in the reporting period is to be assessed by
the Remuneration & Nomination Committee upon recommencement of operations which is expected to occur in the
current financial year.
Voting and comments made at the company's 2021 Annual General Meeting ('AGM')
At the 2021 AGM, 98.77% of the votes received supported the adoption of the remuneration report for the year ended 30
June 2021. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
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 group, directly or indirectly, including any Director (whether executive or
otherwise) of the group receiving the highest remuneration. Details of the remuneration of the KMP of the group are set out
in the following tables:
29
West Wits Mining Limited
Directors' report
30 June 2022
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
Short-term benefits
Post-
employment
benefits
Share-based payments
Cash
salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary* annuation Shares
Equity
settled
options
$
$
$
$
Cash
settled**
$
Total
$
30 June 2022
Non-Executive
Directors:
Mr Michael
Quinert
Mr Hulme
Scholes
Mr Peter O’Malley
Mr Timothy
Chapman
Executive
Director:
Mr Jac van
Heerden
Other Key
Management
Personnel:
Mr Simon Whyte
109,333
41,667
51,667
50,069
-
-
-
-
-
-
-
-
293,333
-
17,371
-
-
-
-
-
-
-
-
-
20,236
10,928
10,928
10,928
-
-
-
-
129,569
52,595
62,595
60,997
-
27,117
264,000
601,821
191,158
737,227
-
-
14,391
31,762
19,116
19,116
-
-
16,189
96,326
-
240,854
264,000 1,148,431
*
**
Comprises of annual leave entitlements
Cash settlement during the financial year of Mr van Heerden’s right to a 0.66% interest in West Wits MLI (Pty) Ltd
relating to his 12-month service to 31 December 2019 under his original contract as CEO of West Wits MLI (Pty) Ltd.
30
West Wits Mining Limited
Directors' report
30 June 2022
Short-term benefits
Post-
employment
benefits
Share-based payments
Cash
salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary*** annuation Shares
Equity
settled
options
$
$
$
$
Cash
settled
$
Total
$
30 June 2021
Directors
Mr Michael
Quinert
Mr Hulme
Scholes
Dr Andrew Tunks*
Mr Peter O’Malley
Mr Timothy
Chapman**
Executive
Director:
Mr Jac van
Heerden
Other Key
Management
Personnel:
Mr Simon Whyte
78,000
25,000
10,000
40,000
20,100
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
280,000
-
13,998
-
70,000
-
1,054
1,055
-
-
-
-
-
-
-
-
78,000
26,054
11,055
40,000
20,100
-
363,998
163,950
617,050
5,000
5,000
(316)
13,682
16,050
16,050
40,000
110,000
-
2,109
-
-
224,684
763,891
Dr Andrew Tunks resigned on 19 November 2020
Mr Timothy Chapman was appointed on 19 November 2020
*
**
*** Comprises of annual leave entitlements
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Mr Michael Quinert
Mr Hulme Scholes
Mr Peter O’Malley
Mr Timothy Chapman
Dr Andrew Tunks
Executive Directors:
Mr Jac van Heerden
Other Key Management
Personnel:
Mr Simon Whyte
Fixed remuneration
At risk - STI
30 June 2022 30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021
At risk - LTI
84%
79%
83%
82%
-
100%
96%
100%
-
90%
52%
81%
93%
80%
-
-
-
-
-
-
-
-
-
-
-
-
-
16%
21%
17%
18%
-
-
4%
-
-
10%
48%
19%
2%
7%
18%
31
West Wits Mining Limited
Directors' report
30 June 2022
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements, effective from 1 November 2021, are as follows:
Name:
Title:
Term of agreement:
Details:
Name:
Title:
Term of agreement:
Details:
Mr Jac van Heerden
Managing Director
6-months' notice period by either party
$300,000 per annum, including superannuation.
$125,000 performance bonus per annum based on a balanced KPI score card
26-days annual leave per annum
Eligible for securities under the company’s employee share scheme
Mr Simon Whyte
Chief Financial Officer and Company Secretary
3-months' notice period by either party
$225,000 per annum, including superannuation
$75,000 performance bonus per annum based on a balanced KPI score card
26-days annual leave per annum
Eligible for securities under the company’s employee share scheme
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
Details of shares issued to directors and other key management personnel as part of compensation during the year ended
30 June 2022 are set out below:
Name
Jac van Heerden*
Simon Whyte*
Michael Quinert**
Jac van Heerden**
Simon Whyte**
Date
12/07/2021
12/07/2021
31/12/2021
31/12/2021
31/12/2021
Shares*
Issue price
$
398,717
227,838
1,800,000
1,000,000
1,000,000
$0.087
$0.087
$0.000
$0.000
$0.000
35,000
20,000
-
-
-
*
Ordinary Shares issued under the WWI ESOP to KMP in lieu of cash payment for periodic executive bonuses for
services provided to the Company under contract for the 6 months ended 30 June 2021. Deemed issue price of shares
issued to KMP $0.08778 (8.78 cents) per share being the 30-day VWAP to 30 June 2021.
** Shares issued upon vesting of performance rights.
32
West Wits Mining Limited
Directors' report
30 June 2022
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Number of
options
Vesting date and
Name
granted Grant date
exercisable date Expiry date
Fair value
per option
Exercise
price
at grant date
Simon Whyte
Simon Whyte
Simon Whyte
Michael Quinert
Michael Quinert
Michael Quinert
Hulme Scholes
Hulme Scholes
Michael Quinert
Michael Quinert
Michael Quinert
Jac van Heerden
Jac van Heerden
Jac van Heerden
Simon Whyte
Simon Whyte
Simon Whyte
Hulme Scholes
Hulme Scholes
Hulme Scholes
Tim Chapman
Tim Chapman
Tim Chapman
Peter O'Malley
Peter O'Malley
Peter O'Malley
1,000,000 4/12/2017
1,000,000 4/12/2017
1,000,000 4/12/2017
4,000,000 21/11/2017
4,000,000 21/11/2017
4,000,000 21/11/2017
1,250,000 29/11/2019
1,250,000 29/11/2019
1,250,000 17/12/2021
1,250,000 17/12/2021
1,250,000 17/12/2021
1,675,000 17/12/2021
1,675,000 17/12/2021
1,675,000 17/12/2021
1,000,000 17/12/2021
1,000,000 17/12/2021
1,000,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
675,000 17/12/2021
Options granted carry no dividend or voting rights.
4/12/2017
5/09/2018
5/06/2019
30/01/2018
30/10/2018
30/04/2020
29/11/2019
18/09/2020
1/07/2022
1/07/2023
1/07/2024
1/07/2022
1/07/2023
1/07/2024
1/07/2022
1/07/2023
1/07/2024
1/07/2022
1/07/2023
1/07/2024
1/07/2022
1/07/2023
1/07/2024
1/07/2022
1/07/2023
1/07/2024
3/12/2022
3/12/2022
3/12/2022
30/01/2023
30/01/2023
30/01/2023
18/12/2023
18/12/2023
1/07/2024
1/07/2025
1/07/2026
1/07/2024
1/07/2025
1/07/2026
1/07/2024
1/07/2025
1/07/2026
1/07/2024
1/07/2025
1/07/2026
1/07/2024
1/07/2025
1/07/2026
1/07/2024
1/07/2025
1/07/2026
$0.050
$0.050
$0.050
$0.050
$0.050
$0.050
$0.012
$0.012
$0.100
$0.150
$0.250
$0.100
$0.150
$0.250
$0.100
$0.150
$0.250
$0.100
$0.150
$0.250
$0.100
$0.150
$0.250
$0.100
$0.150
$0.250
$0.019
$0.019
$0.019
$0.017
$0.017
$0.017
$0.003
$0.003
$0.009
$0.012
$0.014
$0.009
$0.012
$0.014
$0.009
$0.012
$0.014
$0.009
$0.012
$0.014
$0.009
$0.012
$0.014
$0.009
$0.012
$0.014
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of directors and
other key management personnel in this financial year or future reporting years are as follows:
Name
Michael Quinert
Jac van Heerden
Simon Whyte
Michael Quinert
Jac van Heerden
Simon Whyte
Michael Quinert
Jac van Heerden
Simon Whyte
Number of
rights
granted
Grant date
1,500,000 18/12/2019
800,000 18/12/2019
800,000 18/12/2019
1,200,000 18/12/2019
1,000,000 18/12/2019
1,000,000 18/12/2019
1,500,000 18/12/2019
1,200,000 18/12/2019
1,200,000 18/12/2019
Performance rights granted carry no dividend or voting rights.
33
Expiry date
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-22
31-Dec-23
31-Dec-23
31-Dec-23
Fair value
per right
at grant date
$0.001
$0.001
$0.001
$0.005
$0.005
$0.005
$0.005
$0.005
$0.005
West Wits Mining Limited
Directors' report
30 June 2022
The 24,500,000 equity settled performance rights were issued to Management as per the ASX announcement on 18
December 2019 and related shareholder approval obtained at the AGM on 29 November 2019, the performance rights vested
on date of issue.
The performance hurdles, relevant dates and conditions of the rights are detailed below:
Performance Hurdle
Number
issued
Issue date
Expiry date
Market/Non-
market
performance
condition
Exercise
price
Probability of
non-market
performance
condition
occurring 30
June 2022
Fair value
for each
performa
nce rights
($)
Total fair
value
recorded
on grant
date
30-day VWAP of $0.015 at
31/12/2020
30-day VWAP of $0.028 at
31/12/2021
30-day VWAP of $0.042 at
31/12/2022
Expanding the JORC
Resource by 600,000oz at a
grade of at least 3g/t by
30/06/2021
Delineating a total of 650,000
ounces of gold reserves (in
accordance with JORC
20121) at a grade of at least
3g/t Au by 31/12/2021
Achieving annualised
production of 5,500oz of gold
per annum over a
consecutive period of 3-
months in the 12-months to
30/06/2021
Achieving annualised
production of 25,000oz of
gold per annum over a
consecutive period of 3-
months in 2022 calendar
year
Achieving annualised
production of 45,000oz of
gold per annum over a
consecutive period of 3-
months in 2023 calendar
year
4,700,000 18/12/2019
31/12/2020
0.0150
Market
Converted
0.0009
4,183
3,800,000 18/12/2019
31/12/2021
0.0280
Market
Converted
0.0012
4,560
3,100,000 18/12/2019
31/12/2022
0.0420
Market
N/A
0.0016
4,836
1,750,000 18/12/2019
30/06/2021
N/A
Non-market
Converted
0.0050
3,150
1,750,000 18/12/2019
31/12/2021
N/A
Non-market
Lapsed
0.0050
875
2,300,000 18/12/2019
30/06/2021
N/A
Non-market
Lapsed
0.0050
1,150
3,200,000 18/12/2019
31/12/2022
N/A
Non-market
0%
0.0050
4,800
3,900,000 18/12/2019
31/12/2023
N/A
Non-market
0%
0.0050
6,825
24,500,000
30,379
Additional information
The earnings of the consolidated entity for the five years to 30 June 2022 and factors that are considered to affect total
shareholder returns (‘TSR’) are summarised below:
2022
$'000
2021
$'000
2020
$'000
2019
$'000
2018
$'000
Loss for the period ($’000s)
5,692
543
1,913
11,761
1,390
Basic earnings per share (cents per share)
(0.34)
(0.04)
(0.21)
(1.56)
(0.20)
Share price at financial year end ($)
0.020
0.085
0.016
0.006
0.019
34
West Wits Mining Limited
Directors' report
30 June 2022
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
Mr Michael Quinert
Mr Jac van Heerden
Mr Hulme Scholes
Mr Peter O’Malley
Mr Timothy Chapman
Mr Simon Whyte
Balance at Received
the start of as part of
remuneration
the year
Additions1
Other2
Balance at
the end of
the year
38,213,567
7,066,594
1,136,364
8,967,037
234,000
8,700,146
64,317,708
-
398,717
-
-
-
227,838
626,555
1,800,000
1,000,000
-
-
-
1,000,000
3,800,000
3,185,021
-
-
-
39,000
1,500,000
4,724,021
43,198,588
8,465,311
1,136,364
8,967,037
273,000
11,427,984
73,468,284
1Additions from the vesting of performance rights and converted into shares.
2Other changes include on-market purchases, participation in share purchase plan.
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Options over ordinary shares
Mr Michael Quinert
Mr Jac van Heerden
Mr Hulme Scholes
Mr Peter O'Malley
Mr Timothy Chapman
Mr Simon Whyte
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
12,000,000
-
2,500,000
-
-
3,000,000
17,500,000
3,750,000
5,025,000
2,025,000
2,025,000
2,025,000
3,000,000
17,850,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,750,000
5,025,000
4,525,000
2,025,000
2,025,000
6,000,000
35,350,000
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each director and
other members of key management personnel of the consolidated entity, including their personally related parties, is set out
below:
Performance rights over ordinary shares
Mr Michael Quinert
Mr Jac van Heerden
Mr Simon Whyte
Balance at
the start of
the year
6,750,000
4,500,000
4,500,000
15,750,000
Granted
Vested
Lapsed
Balance at
the end of
the year
-
-
-
-
(1,800,000)
(1,000,000)
(1,000,000)
(3,800,000)
(750,000)
(500,000)
(500,000)
4,200,000
3,000,000
3,000,000
(1,750,000) 10,200,000
35
West Wits Mining Limited
Directors' report
30 June 2022
Transactions with other related parties
The following transactions occurred with related parties:
Sales and purchases of goods and services
Legal fees that were paid to QR Lawyers, a Director related entity to Mr Michael Quinert
Rental expense paid to Brickwick Pty Ltd, a Director related entity to Mr Michael Quinert
Legal fees that were paid to Malan Scholes Attorneys, a Director related entity to Mr Hulme
Scholes
Consultancy fees that were paid to MERA Advisers, a Director related entity to Mr Hulme
Scholes
Broker fees paid to Pac Partners Securities Pty Ltd, a Director related entity to Mt Tim
Chapman
Consolidated
30 June 2022 30 June 2021
$'000
$'000
78,295
24,000
54,164
42,400
118,214
90,364
3,919
2,835
464,675
-
689,103
189,763
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of West Wits Mining Limited under option at the date of this report are as follows:
Grant date
21/11/2017
4/12/2017
21/11/2017
29/11/2019
17/12/2021
17/12/2021
17/12/2021
24/12/2021
26/05/2022
17/08/2022
17/08/2022
17/08/2022
23/08/2022
Expiry date
3/12/2022
3/12/2022
29/01/2023
18/12/2023
1/07/2024
1/07/2025
1/07/2026
24/12/2024
26/05/2025
1/07/2024
1/07/2025
1/07/2026
23/08/2025
Exercise
price
Number
under option
$0.050
$0.050
$0.050
$0.012
$0.100
$0.150
$0.250
$0.050
$0.040
$0.100
$0.150
$0.250
$0.026
6,000,000
3,000,000
17,000,000
2,500,000
5,950,000
5,950,000
5,950,000
75,000,000
25,000,000
2,340,426
2,165,354
2,091,256
5,000,000
157,947,036
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
During the period 83,393,308 free attaching options were issued, in relation to share placements, that are not included in the
above tables as the options expired on 10/08/2022, prior to the date of this report. .
36
West Wits Mining Limited
Directors' report
30 June 2022
Shares under performance rights
Unissued ordinary shares of West Wits Mining Limited under performance rights at the date of this report are as follows:
Grant date
18/12/2019
18/12/2019
18/12/2019
Expiry date
31/12/2022
31/12/2022
31/12/2023
Exercise
price
Number
under rights
$0.000
$0.000
$0.000
3,200,000
3,100,000
3,900,000
10,200,000
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in
any share issue of the company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of West Wits Mining Limited were issued during the year ended 30 June 2022 and up to the
date of this report on the exercise of options granted:
Date options granted
29/11/2019
Exercise
price
Number of
shares
issued
$0.000
3,500,000
Shares issued on the exercise of performance rights
The following ordinary shares of West Wits Mining Limited were issued during the year ended 30 June 2022 and up to the
date of this report on the exercise of performance rights granted:
Date performance rights granted
18/12/2020
Exercise
price
Number of
shares
issued
$0.000
3,800,000
Indemnity and insurance of officers
During the financial year the Company entered into an insurance policy to indemnify Directors and Officers against certain
liabilities incurred as a Director or Officer, including costs and expenses associated in successfully defending legal
proceedings. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The
Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an Officer or Auditor of
the Company or of any related body corporate against a liability incurred as such as Officer or Auditor.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility
on behalf of the company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of
the Corporations Act 2001.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Officers of the company who are former partners of William Buck Audit (Vic) Pty Ltd
There are no officers of the company who are former partners of William Buck Audit (Vic) Pty Ltd.
37
West Wits Mining Limited
Directors' report
30 June 2022
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
William Buck Audit (Vic) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Jac van Heerden
Managing Director
29 September 2022
38
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF WEST WITS MINING
LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2022 there have
been:
— no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the audit.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
A. A. Finnis
Director
Melbourne, 29 September 2022
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
West Wits Mining Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Other income
Cost of sales of goods
Expenses
Corporate & administration expenses
Impairment of tenements
Director and employee expenses
Depreciation expense - exploration
Exploration expenses
Finance Costs
Foreign exchange gain on deconsolidation of West Wits Monarch (Pty) Ltd
Foreign exchange gain / (loss)
Loss before income tax expense
Income tax expense
Consolidated
Note 30 June 2022 30 June 2021
$'000
$'000
67
-
(2,155)
(1,794)
(1,582)
(89)
(81)
(59)
-
1
(5,692)
-
78
(3)
(641)
-
(739)
-
(25)
(108)
760
135
(543)
-
10
6
Loss after income tax expense for the year
(5,692)
(543)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Loss for the year is attributable to:
Non-controlling interest
Owners of West Wits Mining Limited
Total comprehensive loss for the year is attributable to:
Non-controlling interest
Owners of West Wits Mining Limited
(540)
(540)
(14)
(14)
(6,232)
(557)
(411)
(5,281)
(5,692)
(561)
(5,671)
(6,232)
(202)
(341)
(543)
17
(574)
(557)
Cents
Cents
Loss per share for loss attributable to the ordinary equity holders of West Wits
Mining Limited
Basic loss per share
Diluted loss per share
27
27
(0.34)
(0.34)
(0.04)
(0.04)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
40
West Wits Mining Limited
Statement of financial position
As at 30 June 2022
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Right-of-use assets
Prepayments
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Exploration and evaluation, development and mine properties
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Lease liabilities
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Equity attributable to the owners of West Wits Mining Limited
Non-controlling interest
Total equity
Consolidated
Note 30 June 2022 30 June 2021
$'000
$'000
7
8
9
9
10
11
12
13
12
13
14
15
2,328
546
144
1
3,019
51
1,564
22,650
24,265
973
262
-
10
1,245
16
-
14,229
14,245
27,284
15,490
3,279
-
848
83
4,210
65
89
642
796
2,336
70
-
103
2,509
59
-
-
59
5,006
2,568
22,278
12,922
58,534
(35)
(29,736)
28,763
(6,485)
45,239
(1,938)
(24,455)
18,846
(5,924)
22,278
12,922
The above statement of financial position should be read in conjunction with the accompanying notes
41
West Wits Mining Limited
Statement of changes in equity
For the year ended 30 June 2022
Consolidated
Issued
capital
$'000
Reserves
$'000
Accumulated
losses
$'000
Non-
controlling
interest
$'000
Total equity
$'000
Balance at 1 July 2020
38,406
(1,207)
(24,115)
(5,941)
7,143
Loss after income tax expense for the year
Other comprehensive income/(loss) for the
year, net of tax
Total comprehensive income/(loss) for the year
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
Conversion of Convertible Note
Bonuses paid by issue of shares under ESOP
Vesting of share-based payments for options
issued
Exercised options fair value transfer from
reserve to issued capital
Vesting of share-based payments for
performance rights issued
Options lapsed during the period
Performance rights lapsed during the period
-
-
-
4,582
1,574
180
-
484
13
-
-
-
(341)
(202)
(233)
(233)
-
-
-
2
(484)
(13)
(2)
(1)
-
(341)
219
17
-
-
-
(2)
-
-
2
1
-
-
-
-
-
-
-
-
(543)
(14)
(557)
4,582
1,574
180
-
-
-
-
-
Balance at 30 June 2021
45,239
(1,938)
(24,455)
(5,924)
12,922
Consolidated
Issued
capital
$'000
Reserves
$'000
Accumulated
losses
$'000
Non-
controlling
interest
$'000
Total equity
$'000
Balance at 1 July 2021
45,239
(1,938)
(24,455)
(5,924)
12,922
Loss after income tax expense for the year
Other comprehensive loss for the year, net of
tax
Total comprehensive loss for the year
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction costs
(note 14)
Bonuses paid by issue of shares under ESOP
Shares issued to consultants under ESOP
Exercise of options
Exercised options fair value transfer from
reserve to issued capital
Vesting of performance rights
Share-based payment expense on options
issued to lead managers
Share-based payment expense on options
-
-
-
-
(5,281)
(411)
(5,692)
(390)
-
(150)
(540)
(390)
(5,281)
(561)
(6,232)
13,158
55
24
42
11
5
-
-
-
-
-
-
(11)
(5)
2,212
97
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,158
55
24
42
-
-
2,212
97
Balance at 30 June 2022
58,534
(35)
(29,736)
(6,485)
22,278
The above statement of changes in equity should be read in conjunction with the accompanying notes
42
West Wits Mining Limited
Statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Payments to suppliers (inclusive of GST)
Consolidated
Note 30 June 2022 30 June 2021
$'000
$'000
(2,982)
(1,900)
Net cash used in operating activities
26
(2,982)
(1,900)
Cash flows from investing activities
Payments for plant and equipment
Payments for exploration and evaluation
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issues of shares and exercise of options
Capital raising costs
Repayments of borrowings
Payment of interest on borrowings
Repayment of lease liabilities
Net cash from financing activities
14
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the financial year
7
(190)
(10,112)
-
(2,709)
(10,302)
(2,709)
16,591
(1,099)
(70)
(21)
(754)
4,821
(239)
(41)
(108)
-
14,647
4,433
1,363
973
(8)
2,328
(176)
1,202
(53)
973
The above statement of cash flows should be read in conjunction with the accompanying notes
43
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 1. General information
The financial statements cover West Wits Mining Limited as a consolidated entity consisting of West Wits Mining Limited
('the Company') and the entities it controlled (together ‘the Group’ or ‘consolidated entity’) at the end of, or during, the year.
The financial statements are presented in Australian dollars, which is West Wits Mining Limited's functional and presentation
currency.
West Wits Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business are:
Registered office
Principal place of business
Level 6, 400 Collins Street
Melbourne VIC 3000 Australia
Unit 8A, Sifon Industrial Park, 285 Sifon St, Robertville
Roodepoort 1709 South Africa
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 September 2022. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 3.
Continuation of business
For the year ended 30 June 2022, the Group has reported a net loss after income tax and before eliminating non-controlling
interests of $5.69 million (2021: $0.54 million) and net operating cash outflows of $ 2.98 million (2021: $1.9 million). As of 30
June 2022, the Group had $2.33 million cash at bank (2021: $0.97 million), and net current liabilities of $ 1.33 million (2021:
$1.3 million).
Subsequent to 30 June 2022, the Company has raised gross proceeds of $2.94 million via two share placements:
●
As announced to the ASX on 11th July 2022 the Company issued 24.2 million WWI Shares under the Equity Placement
Agreement with SBC Global Investment Fund for gross proceeds of $0.44 million 23rd August 2022 on completion of
the pricing period.
As announced to the ASX on 11th August 2022, the Company issued 139 million shares at $0.018 per share for gross
proceeds of $2.5 million.
●
44
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
The following matters have been considered by the Directors in assessing the Group’s continuing viability of the business
and having the ability to pay its debts as and when they fall due,
●
On 27 May 2022 the Company announced an Equity Placement Agreement (the Agreement) with SBC Global Capital
for A$75 million standby equity capital facility whereby WWI can drawdown via separate placements of WWI fully
ordinary shares (the size of which are subject to certain limits) at the Company’s sole discretion over a 24-month period.
The Company had drawn down $0.44 million at the of this report.
The Company’s ongoing ability to issue ordinary shares under ASX listing rules 7.1 and 7.1A
The ability of Group to scale down its operations or redirect exploration expenditure if required, including the ability to
defer amounts payable to Directors and Executive as far as necessary should sufficient working capital not be available.
the Group’s tenement holdings, substantial JORC Resource and completed definitive feasibility study on the
Witwatersrand Basin Project makes the project highly prospective and should underpin the Company’s ability to raise
funds for its business needs.
The Company engaged Taurum International in November 2021 as corporate advisors to source project funding for the
Company’s Witwatersrand Basin Project. The Company has received multiple funding proposals and continues to
engage other parties as steps of the funding process & strategy.
●
●
●
●
Based on the successful execution of the above the Directors are satisfied that the Group has access to sufficient working
capital to enable it to pay its debts as and when they fall due for a period of at least twelve months from the date of this
report, and for that reason the financial statements have been prepared on the basis that the Group is a going concern, which
contemplates the continuity of normal business activity, realisation of assets and the settlement of liabilities in the normal
course of business.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
All new accounting standards required which are mandatory for current accounting period were adopted.
The adoption of all the new and revised Standards and Interpretations has not resulted in any material changes to the
Consolidated Entity’s accounting policies and has no material effect on the amounts reported for the current or prior years.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 23.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of West Wits Mining Limited
('company' or 'parent entity') as at 30 June 2022 and the results of all subsidiaries for the year then ended. West Wits Mining
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
45
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and
other comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity.
Losses incurred by the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit
balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is West Wits Mining Limited's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
●
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
●
46
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 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.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Buildings
Leasehold improvements
Plant and equipment
40 years
3-10 years
3-7 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
47
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at
the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
Exploration and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through successful development of
the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence
of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit
in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs
in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have
been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration,
there is an uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They
are subsequently measured at amortised cost using the effective interest method.
48
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of
fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts
expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on
an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset
is fully written down.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
Employee benefits
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of
any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
49
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
Investments in associates and joint arrangements
Associates are those entities over which the Group is able to exert significant influence but which are not subsidiaries.
A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the Group
has rights to a share of the arrangement’s net assets rather than direct rights to underlying assets and obligations for
underlying liabilities. A joint arrangement in which the Group has direct rights to underlying assets and obligations for
underlying liabilities is classified as a joint operation.
Investments in associates and joint ventures are accounted for using the equity method. Interests in joint operations are
accounted for by recognising the Group’s assets (including its share of any assets held jointly), its liabilities (including its
share of any liabilities incurred jointly), its revenue from the sale of its share of the output arising from the joint operation, its
share of the revenue from the sale of the output by the joint operation and its expenses (including its share of any expenses
incurred jointly).
Any goodwill or fair value adjustment attributable to the Group’s share in the associate or joint venture is not recognised
separately and is included in the amount recognised as investment.
The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the Group’s
share of the profit or loss and other comprehensive income of the associate and joint venture, adjusted where necessary to
ensure consistency with the accounting policies of the Group.
Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the
extent of the Group’s interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested
for impairment.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the principal
market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and
best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
50
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of West Wits Mining Limited, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that
Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2022. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model
taking into account the terms and conditions upon which the instruments were granted. The choice of models and the
resultant option value require assumptions to be made in relation to the likelihood and timing of the conversion of the options
to shares and the value of volatility of the price of the underlying shares. The accounting estimates and assumptions relating
to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the
next annual reporting period but may impact profit or loss and equity.
51
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Exploration and development expenditure
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
The Directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge
and best available current information and that capitalised exploration costs are expected to be recovered either through
successful development or sale of the relevant mining interest.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of
technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are
less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will
be written off or written down.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible
assets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may
lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value
less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for
anticipated tax audit issues based on the consolidated entity's current understanding of the tax law. Where the final tax
outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax
provisions in the period in which such determination is made. Deferred tax assets are recognised for deductible temporary
differences only if the consolidated entity considers it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or mined. The
consolidated entity's mining and exploration activities are subject to various laws and regulations governing the protection of
the environment. The consolidated entity recognises management's best estimate for assets retirement obligations and site
rehabilitations in the period in which they are incurred. Actual costs incurred in the future periods could differ materially from
the estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates
could affect the carrying amount of this provision.
Note 4. Fair value measurement
Due to the nature of the Group’s operating profile, the Directors and management do not consider that the fair values of the
Group’s financial assets and liabilities are materially different from their carrying amounts at 30 June 2022.
Note 5. Operating segments
Identification of reportable operating segments
The Group operates in one operating segment being mining & exploration, and its activities were divided into two reportable
segments as of the period ended 30 June 2022.
52
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 5. Operating segments (continued)
(a) Description of segments
The reportable segments are based on distinct geographical locations, South Africa, Indonesia and Australia. Mining &
exploration activities are carried out in both segments whilst the South African segment also conducts feasibility and mine
development activities; whereas the Australian segment reflects the administrative arm of the business that supports the
mining & exploration activities of the reporting Group.
(b) Segment information provided to the Chairman
The segment information provided to the audit and risk committee for the reportable segments for the year 30 June 2022 is
as follows:
Consolidated Entity
South Africa Australia
$'000
$'000
Indonesia
$'000
Total
$'000
2022
Other income
2021
Other income
65
59
2
19
-
-
67
78
There was no revenue generated for the reportable segments for the year ended 30 June 2022 (2021: nil)
Segment assets
Segment assets are measured in the same way as in the financial statements. These assets are allocated based on the
operations of the segment and the physical location of the asset.
South Africa
Australia
Indonesia
Total segment assets
Segment liabilities
Consolidated
30 June 2022 30 June 2021
$'000
$'000
23,614
3,670
-
11,457
4,033
-
27,284
15,490
Segment liabilities are measured in the same way as in the financial statements. These liabilities are allocated based on the
operations of the segment and the physical location of the asset.
South Africa
Indonesia
Australia
Total segment liabilities
Consolidated
30 June 2022 30 June 2021
$'000
$'000
2,871
1,924
211
580
1,815
173
5,006
2,568
53
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 6. Income tax expense
Numerical reconciliation of income tax expense to prima facie tax payable
Loss before income tax expense
Tax at the statutory tax rate of 25% (2021: 26%)
Current year tax losses not recognised
Income tax expense
Note 7. Cash and cash equivalents
Current assets
Cash at bank
Note 8. Trade and other receivables
Current assets
Other receivables
VAT receivable
Note 9. Right-of-use assets
Current assets
Plant and equipment - right-of-use
Less: Accumulated depreciation
Non-current assets
Land and buildings - right-of-use
Less: Accumulated depreciation
54
Consolidated
30 June 2022 30 June 2021
$'000
$'000
(5,692)
(1,423)
1,423
(543)
(141)
141
-
-
Consolidated
30 June 2022 30 June 2021
$'000
$'000
2,328
973
Consolidated
30 June 2022 30 June 2021
$'000
$'000
26
520
546
15
247
262
Consolidated
30 June 2022 30 June 2021
$'000
$'000
199
(55)
144
1,594
(30)
1,564
-
-
-
-
-
-
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 9. Right-of-use assets (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Consolidated
Balance at 1 July 2021
Additions
Depreciation expense
Balance at 30 June 2022
Land and
Building
$'000
Plant and
Equipment
$'000
Total
$'000
-
1,594
(30)
1,564
-
199
(55)
144
-
1,793
(85)
1,708
West Wits Mining leases land and buildings for its offices and warehouse under agreements of between 1 to 3 years with, in
some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the leases are
renegotiated. West Wits Mining also leases plant and equipment under agreements of between 1 to 2 years.
Note 10. Exploration and evaluation, development and mine properties
Non-current assets
Exploration and evaluation - at cost
Consolidated
30 June 2022 30 June 2021
$'000
$'000
22,650
14,229
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Consolidated
Balance at 1 July 2021
Additions
Exchange differences
Impairment of assets
Balance at 30 June 2022
Rand & DRD
leases
$'000
Tambina
Gold Project
$'000
Mt Cecelia
Project
$'000
Total
$'000
10,886
10,676
(463)
-
21,099
1,794
-
-
(1,794)
1,549
2
-
-
14,229
10,678
(463)
(1,794)
-
1,551
22,650
Impairment of Tambina Project
A review of the consolidated entity's exploration assets was undertaken as at 30 June 2022 and management's assessment
was that exploration costs incurred on Tambina Project to be impaired due to not being recoverable from development or
sale. The related exploration and evaluation assets have been written off which resulted in an impairment charge of $1.7
million.
55
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 11. Trade and other payables
Current liabilities
Trade payables
Accrued expenses
Refer to note 17 for further information on financial instruments.
Note 12. Lease liabilities
Current liabilities
Lease liability
Non-current liabilities
Lease liability
Refer to note 17 for further information on financial instruments.
Note 13. Provisions
Consolidated
30 June 2022 30 June 2021
$'000
$'000
3,104
175
1,184
1,152
3,279
2,336
Consolidated
30 June 2022 30 June 2021
$'000
$'000
848
89
-
-
Consolidated
30 June 2022 30 June 2021
$'000
$'000
Current liabilities
Provision for rehabilitation and restoration in relation to the mining production in South Africa
Others
42
41
83
65
38
103
Non-current liabilities
Provision for rehabilitation and restoration in relation to the mining production in South Africa
642
-
56
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 13. Provisions (continued)
Mine Rehabilitation
The Group records the present value of the estimated cost of legal and constructive obligations to rehabilitate locations where
activities have occurred which have led to a future obligation to make good. The nature of rehabilitation activities includes
dismantling and removing structures, rehabilitating mine sites, dismantling operating facilities, closure of tailings and waste
sites and restoration, reclamation and revegetation of affected areas.
Typically, the obligation arises when the asset is installed or the ground/environment is disturbed at the mining location.
When the liability is initially recorded, the present value of the estimated cost is capitalised as part of the carrying amount of
the related mining assets. Over time, the discounted liability is increased for the change in the present value based on a
discount rate that reflects current market assessments. Additional disturbances or changes in rehabilitation costs will be
recognised as additions or changes to the corresponding asset and rehabilitation liability when incurred. Although the ultimate
cost to be incurred is uncertain, the Group has estimated its costs based on feasibility and engineering studies using current
restoration standards and techniques.
The unwinding of the effect of discounting the provision is recorded as a finance cost in the Income Statement. The carrying
amount capitalised as a part of mining assets is depreciated/amortised over the life of the related asset.
Costs incurred that relate to an existing condition caused by past operations but do not have a future economic benefit are
expensed as incurred.
Note 14. Issued capital
Consolidated
30 June 2022 30 June 2021 30 June 2022 30 June 2021
Shares
Shares
$'000
$'000
Ordinary shares - fully paid
1,842,232,461 1,401,056,405
58,534
45,239
Movements in ordinary share capital
Details
Date
Shares
Issue price
$'000
Balance
Share issued in lieu of bonus payment
Share issued
Share issued under the WWI ESOP to a consultant
Exercise of options
Share issued
Share issued
Vesting of performance rights
Share issued
Exercised options fair value transfer from option
reserve to issued capital
Capital raising cost
1 July 2021
12 July 2021
10 August 2021
10 August 2021
14 October 2021
16 November 2021
24 December 2021
31 December 2021
27 May 2022
1,401,056,405
626,555
116,786,665
400,000
3,500,000
50,000,000
262,062,836
3,800,000
4,000,000
-
-
Balance
30 June 2022
1,842,232,461
$0.087
$0.060
$0.600
$0.120
$0.030
$0.030
$0.000
$0.020
$0.000
$0.000
45,239
55
7,007
24
42
1,600
7,862
5
100
11
(3,411)
58,534
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
57
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 14. Issued capital (continued)
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the financial
year.
The capital risk management policy remains unchanged from the 2021 Annual Report.
Note 15. Reserves
Foreign currency reserve
Options reserve
Consolidated
30 June 2022 30 June 2021
$'000
$'000
(4,099)
4,064
(3,707)
1,769
(35)
(1,938)
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Options reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
Note 16. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 17. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. Management have established risk management policies to identify
and analyse the risks faced by the company and the group, to set appropriate risk limits and controls, and to monitor risk and
adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Group's activities.
58
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 17. Financial instruments (continued)
Market risk
Foreign currency risk
The Group is exposed to currency risk on sales and purchases that are denominated in a currency other than the respective
functional currency of each company within the group.
The Group also has exposure to foreign exchange risk in the currency cash reserves it holds to meet subsidiary loan
requirements. This is kept to an acceptable level by buying foreign currency at spot rates only to fund short term cash
requirements.
The Group's exposure to foreign exchange risk has not changed from the previous year. The Group does not make use of
derivative financial instruments to hedge foreign exchange risk.
The average exchange rates and reporting date exchange rates applied were as follows:
Australian dollars
South African Rand (ZAR)
Indonesian Rupiah (IDR)
Average exchange rates
Reporting date exchange
rates
30 June 2022 30 June 2021 30 June 2022 30 June 2021
11.10
10,472.00
11.46
10,909.00
11.23
10,253.00
10.75
11,111.00
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
Consolidated
South African Rand (ZAR)
Indonesian Rupiah (IDR)
Assets
Liabilities
30 June 2022 30 June 2021 30 June 2022 30 June 2021
$'000
$'000
$'000
$'000
23,613
-
11,457
-
23,613
11,457
2,871
1,923
4,794
580
1,815
2,395
The Group is exposed to the South African Rand (ZAR) and Indonesian Rupiah (IDR). The average annual movement in the
AUD/ZAR and AUD/IDR exchange rate over the last 5 years was 7.4% for ZAR and 6% for IDR (2021: 8.4% for ZAR and
5.2% for IDR) based on the year-end spot rates. A fluctuation of 7.4% for ZAR and 6% for IDR against the AUD at 30 June
2022 would have changed the equity and loss by the amounts show below. This analysis assumes that all other variables,
in particular interest rates, remain consistent. The analysis is performed on the same basis for 2021.
Consolidated entity
Sensitivity result
Impact on post-tax profit
Impact on other
components of equity
2022
$'000
2021
$'000
2022
$'000
2021
$'000
149
4
1,420
1,289
The effect on equity is to the Foreign Currency Translation Reserve and Accumulated Losses.
Price risk
Exposure
The Group is exposed to the risk of fluctuations in prevailing market commodity prices on gold however the Company did not
have any production in current financial year or revenues. The Group’s has not established a formal policy to manage this
risk. Management will continue to assess the gold price risk exposure to the Group’s future operations, implementing suitable
operating & contract protocols as well as hedging options to mitigate the risks when required.
59
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 17. Financial instruments (continued)
Credit risk
Risk management
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the
Group.
Surplus cash is invested with financial institutions of appropriate credit worthiness and the amount of credit exposure to any
one counter party is limited.
The Group did not have any revenue from sales during the financial period. When in production, the Group has only one
counter party for the sale of production output which limit’s the Group’s exposure to credit risk. The Groups operations The
Group's maximum exposure to credit risk at the end of the reporting period is set out in the table below. The carrying amount
of the financial assets represents the maximum credit risk exposure.
Cash and cash equivalents
Trade and other receivables
Consolidated
30 June 2022 30 June 2021
$'000
$'000
2,328
546
973
262
2,874
1,235
Impairment of financial assets
The group has one type of financial assets subject to the expected credit loss model:
- trade receivables for mining production activities
While cash and cash equivalents are also subject to the impairment requirements of AASB 9, the identified impairment loss
was immaterial.
The group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
allowance for all trade receivables.
To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics
and the days past due. The expected loss rates are based on the payment profiles of sales over a period since the
commencement of its mining production until 30 June 2022 and the corresponding historical credit losses experienced within
this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors
affecting the ability of the customers to settle the receivables.
On that basis, the loss allowance as at 30 June 2022 from the ECL method was concluded as immaterial as the group had
not written off any receivables.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the group, and a
failure to make contractual payments.
Impairment losses on trade receivables are presented as net impairment losses within operating profit. Subsequent
recoveries of amounts previously written off are credited against the same line item.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient assets to meet liabilities as they fall due.
The Group is exposed to liquidity risk via the quantity and type of financial assets and liabilities it holds. The board ensures
that the Group can meet its financial obligations as they fall due by maintaining sufficient reserves of cash, continuously
monitoring forecast and actual cash flows, matching the maturity profiles of financial assets and liabilities, and identifying
when they need to raise additional funding from the equity markets.
The Group’s exposure to liquidity risk has remained unchanged from the previous year.
60
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 17. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 30 June 2022
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing:
Lease liability
Total non-derivatives
Consolidated - 30 June 2021
Non-derivatives
Non-interest bearing
Trade and other payables
Borrowings & other financial
liabilities
Total non-derivatives
Weighted
average
interest rate
%
1 year or
less
$'000
Between 1
and 2 years
$'000
Between 2
and 5 years
$'000
Remaining
contractual
maturities
$'000
Over 5 years
$'000
-
3,279
4.60%
848
4,127
-
89
89
-
-
-
-
-
-
3,279
937
4,216
Weighted
average
interest rate
%
1 year or
less
$'000
Between 1
and 2 years
$'000
Between 2
and 5 years
$'000
Remaining
contractual
maturities
$'000
Over 5 years
$'000
-
-
2,336
70
2,406
-
59
59
-
-
-
-
-
-
2,336
129
2,465
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 18. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Consolidated
30 June 2022 30 June 2021
$
$
768,989
19,116
360,326
635,732
16,050
112,109
1,148,431
763,891
Short-term employee benefits
Post-employment benefits
Share-based payments
(a) Transactions with other related parties
The following transactions occurred with related parties:
61
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 18. Key management personnel disclosures (continued)
Sales and purchases of goods and services
Legal fees that were paid to QR Lawyers, a Director related entity to Mr Michael Quinert
Rental expense paid to Brickwick Pty Ltd, a Director related entity to Mr Michael Quinert
Legal fees that were paid to Malan Scholes Attorneys, a Director related entity to Mr Hulme
Scholes
Consultancy fees that were paid to MERA Advisers, a Director related entity to Mr Hulme
Scholes
Broker fees paid to Pac Partners Securities Pty Ltd, a Director related entity to Mt Tim
Chapman
Consolidated
30 June 2022 30 June 2021
$'000
$'000
78,295
24,000
54,164
42,400
118,214
90,364
3,919
2,835
464,675
-
689,103
189,763
Note 19. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by, the auditor of the company:
Consolidated
30 June 2022 30 June 2021
$
$
46,000
42,000
14,000
13,958
60,000
55,958
Remuneration of the auditor of the parent entity for:
Audit or review of the financial statements
Remuneration of other auditors of subsidiaries for:
Audit services and review of financial statements
Note 20. Contingent assets
The group had no contingent assets at 30 June 2022 (2021: nil).
Note 21. Contingent liabilities
The group had no contingent liabilities at 30 June 2022 (2021: nil).
Note 22. Related party transactions
Parent entity
West Wits Mining Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 24.
Key management personnel
Disclosures relating to key management personnel are set out in note 18 and the remuneration report included in the
directors' report.
Transactions with related parties
Other than disclosed in note 18 there were no transactions with related parties during the current and previous financial year.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
62
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 22. Related party transactions (continued)
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 23. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit/(loss) after income tax
Total comprehensive income/(loss)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Options reserve
Accumulated losses
Total equity
Parent
30 June 2022 30 June 2021
$'000
$'000
1,907
1,907
(485)
(485)
Parent
30 June 2022 30 June 2021
$'000
$'000
2,118
670
47,558
29,721
210
210
173
173
58,534
4,064
(15,250)
45,239
1,770
(17,461)
47,348
29,548
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
West Wits Mining Ltd has not entered into any guarantees, in the current or previous financial year, in relation to the debts
of its subsidiaries (2021: Nil).
Contingent liabilities
The parent entity did not have any contingent liabilities as at 30 June 2022 or 30 June 2021.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 or 30 June 2021.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2, except
for the following:
●
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Investments in associates are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
63
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 24. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned subsidiaries
in accordance with the accounting policy described in note 2. Unless otherwise stated, they have share capital consisting
solely of ordinary shares that are held directly by the group, and the proportion of ownership interests held equals the voting
rights held by the group. The country of incorporation or registration is also their principal place of business.
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries with non-
controlling interests in accordance with the accounting policy described in note 2:
Name
Principal place of business /
Country of
incorporation
West Wits Mining SA (Pty) Ltd South Africa
West Wits MLI (Pty) Ltd
South Africa
NuGold Company Ltd (Hong
Kong)
PT. NuGold Indonesia
PT. Madinah Qurrata'ain
Hong Kong
Indonesia
Indonesia
Parent
Ownership
interest
Ownership
interest
Non-controlling interest
Ownership
interest
Ownership
interest
30 June 2022 30 June 2021 30 June 2022 30 June 2021
%
%
%
%
90.00%
74.00%
90.00%
73.26%
100.00%
100.00%
64.00%
100.00%
100.00%
64.00%
10.00%
26.00%
-
-
36.00%
10.00%
26.74%
-
-
36.00%
All subsidiaries listed above operated in the mining and exploration industry.
Significant restrictions
Cash held by all South Africa subsidiaries is subject to exchange control regulations governed by the South African Reserve
Bank (SARB). Ongoing approval by SARB is crucial to the transfer of cash funds into and out of South Africa.
Non-controlling interests (NCI)
Transactions with non-controlling interests
There have been no transactions with non-controlling interests during the year 2022 (2021: nil).
Set out below is summarised financial information for each subsidiary that has non-controlling interests that are material to
the group. The amounts disclosed for each subsidiary are before inter-Company eliminations.
Summarised balance sheet
Current assets
Current liabilities
Current net assets
Non-current assets
Non-current liabilities
Non-current net assets
Net assets
Accumulated NCI
South Africa
Indonesia
30 June 2022
$'000
30 June 2021
$'000
30 June 2022
$'000
30 June
2021
$'000
757
(2,140)
(1,383)
22,856
(731)
22,125
575
(580)
(5)
10,882
-
10,882
-
(1,858)
(1,858)
-
(65)
(65)
-
(1,756)
(1,756)
-
(59)
(59)
20,742
10,877
(1,923)
(1,815)
2,262
1,739
4,224
4,185
64
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 24. Interests in subsidiaries (continued)
Summarised statement of comprehensive income
Profit / (Loss) for the period
Other comprehensive income
Total comprehensive income – Profit / (Loss)
Loss allocated to NCI – Profit / (Loss)
South Africa
Indonesia
30 June 2022 30 June 2021 30 June 2022 30 June 2021
(2,013)
(434)
(2,447)
(522)
324
(638)
(314)
(31)
-
(108)
(108)
(39)
-
(108)
(108)
(48)
South Africa
Indonesia
30 June 2022 30 June 2021 30 June 2022 30 June 2021
Summarised cash flows
Cash flows used in operating activities
Cash flows from investing activities
Cash flows from financing activities
(8,764)
(3,042)
11,734
(897)
(2,345)
3,345
Net increases/(decrease) in cash and cash equivalents
(72)
103
-
-
-
-
-
-
-
-
Joint operations
In December 2021, West Wits entered a Farm-In and Joint Venture Term Sheet with Rio Tinto Exploration Pty Limited (“RTX”)
to explore WWI’s Mt Cecelia (E45/5045) in Western Australia. RTX paid West Wits $150,000 up-front and RTX has a sole
and exclusive right to earn an initial 51% joint venture interest in the Tenement by sole funding exploration expenditure of
A$4,000,000 within four (4) years after the Agreement's execution date.
After obtaining the initial 51% interest, RTX has the right to sole fund a further A$6,000,000 of exploration expenditure within
three years of the Joint Venture formation date to earn an additional 29% interest in the Joint Venture. If RTX makes the
Stage 2 sole fund election, RTX must pay West Wits a further $250,000.
During the 2022 financial year, RTX was finalising heritage surveys with Native Title Parties and preparing a program of
works for a drilling campaign scheduled for October 2022 under the initial 51% earn in stage.
Note 25. Events after the reporting period
On 11th July 2022, the Company issued 24.2 million WWI Shares and under the Equity Placement Agreement with SBC
Global Investment Fund for gross proceeds of $0.44 million (before costs) and on the 23rd August 2022 issued 5 million
unlisted options with an exercise price of $0.0264 (2.64 cents) and expiry date 23 August 2025.
On 11th August 2022, the Group completed a share placement to raise $2.5 million (before costs) via the issue of 139 million
new fully paid ordinary shares at $0.018 (1.8 cents) per share to existing and new sophisticated and professional investors.
On 4th August 2022, the Company released to the ASX results from the revised Definitive Feasibility Study on the first stage
of development of the WBP. The study showed a Pre-tax NPV7.5 of US$180 million and IRR of 38% at a Gold Price of
US$1,750/oz, an increase of US$30M and 3% respectively on the original DFS results released on 2nd December 2021.
No other matters or circumstances have occurred subsequent to period end that has significantly affected, or may
significantly affect, the operations of the group, the results of those operations or the state of affairs of the Group in
subsequent financial years.
65
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 26. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Impairment of exploration assets
Finance cost - leases
JV cost expensed - non-cash
Other income -non-cash
Interest paid on borrowings
Write off of bad debts
Share-based payments
Change in FV of convertible note through profit and loss
Other unrealised foreign exchange
Interest expense on convertible notes
Foreign Exchange on disposal of West Wits Monarch (Pty) Ltd
Change in operating assets and liabilities:
Decrease/(Increase) in accounts receivable
(Increase)/Decrease in other current assets
(Decrease)/Increase in accounts payable
(Decrease)/Increase in provisions
Consolidated
30 June 2022 30 June 2021
$'000
$'000
(5,692)
(543)
100
1,794
37
437
(47)
21
-
97
-
(175)
-
-
-
9
457
(20)
4
-
-
-
-
-
(4)
131
(162)
(59)
108
(760)
(17)
(8)
(539)
(51)
Net cash used in operating activities
(2,982)
(1,900)
Note 27. Loss per share
Loss per share for loss from continuing operations
Loss after income tax
Loss after income tax attributable to the owners of West Wits Mining Limited
Loss after income tax attributable to the owners of West Wits Mining Limited used in
calculating diluted earnings per share
Consolidated
30 June 2022 30 June 2021
$'000
$'000
(5,692)
(5,692)
(5,692)
(543)
(543)
(543)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
1,676,975,544
1,243,746,364
Weighted average number of ordinary shares used in calculating diluted earnings per share
1,676,975,544
1,243,746,364
Basic loss per share
Diluted loss per share
Note 28. Share-based payments
Cents
Cents
(0.34)
(0.34)
(0.04)
(0.04)
Share based payments expense during the period is $96,325 (2021:($5,941)) of which relates to options issued to Directors,
KMP and other employees of the company.
66
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 28. Share-based payments (continued)
Unlisted options
Set out below are summaries of options granted as share-based payments:
30 June 2022
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Expired/
forfeited/
other
Exercised
21/11/2017
04/12/2017
21/11/2017
29/11/2019
10/08/2021
17/12/2021
17/12/2021
17/12/2021
16/11/2021
24/12/2021
26/05/2022
03/12/2022
03/12/2022
29/01/2023
18/12/2023
10/08/2022
01/07/2024
01/07/2025
01/07/2026
10/08/2022
24/12/2024
26/05/2025
$0.050
6,000,000
3,000,000
$0.050
$0.050 17,000,000
$0.012
6,000,000
$0.120
$0.100
$0.150
$0.250
$0.120
$0.050
$0.041
-
-
-
-
- 11,678,664
5,950,000
-
5,950,000
-
-
5,950,000
- 15,000,000
- 75,000,000
- 25,000,000
32,000,000 144,528,664
-
-
-
(3,500,000)
-
-
-
-
-
-
-
(3,500,000)
Balance at
the end of
the year
-
6,000,000
3,000,000
-
- 17,000,000
-
2,500,000
- 11,678,664
5,950,000
-
5,950,000
-
-
5,950,000
- 15,000,000
- 75,000,000
- 25,000,000
- 173,028,664
Weighted average exercise price
$0.043
$0.076
$0.010
$0.000
$0.071
Description of options issued during the year ended 30 June 2022
(a)
11,678,664 options granted on 10 August 2021 (exercisable at $0.012, expiring 12 months from the date of issue)
issued in total to PAC Partners in consideration for lead manager services provided to the Company (Lead Manager
Options). The fair value of the Lead Manager Options issued was $200,873 at $0.0172 per option.
5,950,000 options granted to the KMP on 17 December 2021 (exercisable at $0.10, expiring on 1 July 2024).
5,950,000 options granted to the KMP on 17 December 2021 (exercisable at $0.15, expiring on 1 July 2025).
5,950,000 options granted to the KMP on 17 December 2021 (exercisable at $0.25, expiring on 1 July 2026).
15,000,000 options granted on 16 November 2021 (exercisable at $0.12, expiring on 10 August 2022) issued to
Evolution Capital Pty Ltd in consideration for lead manager services provided to the Company (Lead Manager
Options). The fair value of the Lead Manager Options was $75,000 at $0.005 per option.
75,000,000 options granted on 24 December 2021 (exercisable at $0.05, expiring on 24 December 2024) issued to
Evolution Capital Pty Ltd in consideration for lead manager services provided to the Company (Lead Manager
Options). The fair value of the Lead Manager Options was $1,573,750 at $0.02097 per option.
25,000,000 options granted on 26 May 2022 (exercisable at $0.04, expiring on 26 May 2025) issued to SBC Global
in consideration for lead manager services provided to the Company (Lead Manager Options). The fair value of the
Lead Manager Options was $361,500 at $0.014 per option.
(b)
(c)
(d)
(e)
(f)
(g)
30 June 2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Expired/
forfeited/
other
Exercised
Balance at
the end of
the year
15/11/2017
21/11/2017
21/11/2017
04/12/2017
21/11/2017
29/11/2019
15/01/2020
15/01/2020
14/11/2020
30/11/2020
03/12/2022
03/12/2022
29/01/2023
18/12/2023
02/02/2022
01/03/2022
$0.050 10,000,000
$0.050 10,000,000
$0.050 12,000,000
3,000,000
$0.050
$0.050 17,000,000
$0.010 10,000,000
2,200,000
$0.015
3,300,000
$0.015
67,500,000
-
-
-
-
-
-
-
-
-
(10,000,000)
(9,820,322)
(6,000,000)
-
-
(4,000,000)
(2,200,000)
(3,300,000)
(35,320,322)
-
-
(179,678)
-
-
6,000,000
3,000,000
-
- 17,000,000
6,000,000
-
-
-
-
-
(179,678) 32,000,000
Weighted average exercise price
$0.041
$0.000
$0.040
$0.050
$0.042
67
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 28. Share-based payments (continued)
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
21/11/2017
04/12/2017
21/11/2017
29/11/2019
10/08/2021
24/12/2021
24/12/2021
26/05/2022
03/12/2022
03/12/2022
30/01/2023
18/12/2023
10/08/2022
10/08/2022
24/12/2024
26/05/2025
30 June 2022 30 June 2021
Number
Number
6,000,000
3,000,000
6,000,000
3,000,000
17,000,000 17,000,000
6,000,000
-
-
-
-
2,500,000
11,678,664
15,000,000
75,000,000
25,000,000
155,178,664 32,000,000
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.9 years (2021:
2 years).
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
yield
Risk-free
interest rate at grant date
Fair value
10/08/2021
17/12/2021
17/12/2021
17/12/2021
16/11/2021
24/12/2021
26/05/2022
10/08/2022
01/07/2024
01/07/2025
01/07/2026
10/08/2022
24/12/2024
26/05/2025
$0.058
$0.032
$0.032
$0.032
$0.039
$0.032
$0.024
$0.120
$0.100
$0.150
$0.250
$0.120
$0.050
$0.041
128.00%
121.00%
121.00%
121.00%
124.00%
120.00%
115.00%
-
-
-
-
-
-
-
0.40%
0.50%
0.50%
0.50%
0.50%
0.50%
2.40%
$0.017
$0.009
$0.012
$0.014
$0.005
$0.021
$0.014
(i)
(ii)
(iii)
(iv)
(v)
(vi)
The valuation model inputs for options with the grant date 10 August 2021 relates to 11,678,664 options issued PAC
Partners in consideration for lead manager services provided to the Company.
The valuation model inputs for options with the grant date 17 December 2021 and expiring 1 July 2024 relates to
5,950,000 options issued to the Directors and key managerial personnel.
The valuation model inputs for options with the grant date 17 December 2021 and expiring 1 July 2025 relates to
5,950,000 options issued to the Directors and key managerial personnel.
The valuation model inputs for options with the grant date 17 December 2021 and expiring 1 July 2026 relates to
5,950,000 options issued to the Directors and key managerial personnel.
The valuation model inputs for options with the grant date 16 November 2021 relates to 15,000,000 options issued to
Evolution Capital Pty Ltd.
The valuation model inputs for options with the grant date 24 December 2021 relates to 75,000,000 options issued to
Evolution Capital Pty Ltd.
(vii) The valuation model inputs for options with the grant date 30 May 2022 relates to 25,000,000 options issued to SBC
Global.
During the period 83,393,308 free attaching options were issued, in relation to share placements, that are not included in the
above tables as they are not considered share-based payments under AASB 2 Share-Based Payment. These options
expired on 10/08/2022, subsequent to year end,
Performance Rights
Set out below are summaries of performance rights granted:
68
West Wits Mining Limited
Notes to the financial statements
30 June 2022
Note 28. Share-based payments (continued)
Outstanding at the beginning of the financial year
Lapsed
Performance Rights converted to equity
Outstanding at the end of the financial year
Number of
rights
'000
$
'000
15,750
(1,750)
(3,800)
10,200
9
(1)
(4)
4
69
West Wits Mining Limited
Directors' declaration
30 June 2022
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2022 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Jac van Heerden
Managing Director
29 September 2022
70
West Wits Mining Limited
Independent auditor’s report to members
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of West Wits Mining Limited (the Company and its controlled entities
(the Group)), which comprises the consolidated statement of financial position as at 30 June 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other explanatory
information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the Corporations Act
2001, including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year ended on that date; and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
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 (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
CARRYING VALUE OF EXPLORATION AND EVAUATION ASSETS
Area of focus (Refer to Notes 2, 3 and 10)
How our audit addressed it
The Group has continued to incur exploration costs
for their gold mining projects in Australia and South
Africa. As these costs have been incurred over a
number of years, there is a risk that the
capitalisation of exploration and evaluation
expenditure may no longer be appropriate. The
total balance capitalised over these years have
made this balance significant to the audit and
therefore is reflected as a key audit matter.
An impairment review is only required if an
impairment trigger is identified.
Due to the nature of the gold industry, indicators of
impairment could include:
— Changes to exploration plans;
— Loss of rights to tenements;
— Changes to reserve estimates;
— Costs of extraction and production; or
— Exchange rate factors.
Due to the potential commencement of mining
operations, the Group are also liable for the
rehabilitation costs of active tenements, and have
recognised a provision, in respect of this, in the
financial year.
Based on management’s assessment the
exploration areas in Australia and South Africa
continue to meet the requirements for capitalisation
at 30 June 2022, with the exception of the Tambina
area of interest, which has been impaired in full.
Our audit procedures included:
— A review of the directors’ assessment of the
criteria for the capitalisation of exploration
expenditure and evaluation of the impairment
charge recorded by management;
— Understanding and vouching the underlying
contractual entitlement to explore and evaluate
each area of interest, including an evaluation of
the requirement to renew that tenement at its
expiry;
— Examining project spend per each area of
interest and comparing this spend to the
minimum expenditure requirements set out in
the underlying tenement expenditure plan;
— Examining project spend to each area of
interest to ensure that it is directly attributable
to that area of interest; and
— Reviewing the report prepared by
managements independent expert in respect of
the Group’s rehabilitation requirements. We
reviewed this report for reasonability of the
provision, as well as the credentials of the
experts that prepared it.
We also assessed the adequacy of the Group’s
disclosures in respect of exploration costs in the
financial report.
SHARE-BASED PAYMENTS
Area of focus (Refer to Notes 2, 3, 28 and the
Remuneration Report)
The Group is at an early stage of extraction of
minerals. As such, it pays directors and officers of
the entity through issue of shares and options over
shares to conserve cash and to provide them with
long-term incentives.
During the financial year, the Group issued shares
and share options to suppliers for services
provided.
The Group also issued shares and share options to
directors and officers of the entity in order to
provide them with long term incentives.
This is a key audit matter as the valuation of share-
based payments is complex and subject to
significant management estimates and judgements.
How our audit addressed it
Our audit procedures included:
— Verifying the key terms of equity settled share-
based payments in respect of the award of
issued shares and options over common
shares for rendering of services by employees;
— Assessing the fair value calculation of share
options granted by checking the accuracy of
the inputs to the Black Scholes option pricing
model adopted for that purpose; and
— Testing the accuracy of the share-based
payments amortisation over the vesting periods
and recording of expense in the profit or loss
statement and increment to share based
payment reserve
We also assessed the adequacy of the Group’s
disclosures in respect of share based payments in
the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2022 but does not include the financial
report and the 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 has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
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 these financial statements.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of West Wits Mining Limited for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
William Buck Audit (Vic) Pty Ltd
ABN: 59 116 151 136
A. A. Finnis
Director
Melbourne, 29 September 2022
West Wits Mining Limited
Shareholder information
30 June 2022
Shareholder Information
Distribution of ordinary fully paid shares
The shareholder information set out below was applicable as at 27/09/2022.
Holding Ranges
Holders
Total Units
% Issued Share Capital
above 0 up to and including 1,000
above 1,000 up to and including 5,000
above 5,000 up to and including 10,000
above 10,000 up to and including 100,000
above 100,000
Totals
48
16
59
1,528
1,466
3,117
2,511
48,091
488,589
71,326,413
1,938,172,068
2,010,037,672
0.00%
0.00%
0.02%
3.55%
96.42%
100.00%
There were 796 shareholders of less than a marketable parcel of ordinary shares ($0.015 on this date) in the Company
totalling 14,984,737 ordinary shares.
Top Twenty Ordinary fully paid shareholders
The names of the twenty largest holders of quoted equity securities are listed below:
Position
Holder Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
WINGFIELD DURBAN DEEP LP
BNP PARIBAS NOMS PTY LTD
CITICORP NOMINEES PTY LIMITED
DRD GOLD LIMITED
REALSTAR FINANCE PTY LTD
SUPERNOVA FUND PTY LTD
BNP PARIBAS NOMINEES PTY LTD
KASTIN PTY LTD
TWYNAM INVESTMENTS PTY LTD
DEBT MANAGEMENT ASIA CORPORATION
DISCO CAPITAL PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR DIB DANNY EL-HELWE
MRS DIANNE BAILEY
MR SIMON JOHN WHYTE
AABP HOLDINGS PTY LTD
MR ANURAG PANDEY
JOHN WARDMAN & ASSOCIATES PTY LTD
MR RONALD WERNER NEUGEBAUER & MISS TESS CAITLIN NEUGEBAUER
FAR EAST CAPITAL LIMITED
Totals
Total Issued Capital
Ordinary fully paid shares are quoted on OTCQB (USA).
Holding
% IC
202,061,981
10.05%
107,130,990
103,411,268
47,812,500
43,000,000
41,666,666
39,249,933
37,442,614
20,982,223
18,093,417
15,000,000
13,462,466
13,243,963
12,500,000
11,938,188
11,444,206
11,373,469
11,300,000
11,000,000
10,333,334
5.33%
5.14%
2.38%
2.14%
2.07%
1.95%
1.86%
1.04%
0.90%
0.75%
0.67%
0.66%
0.62%
0.59%
0.57%
0.57%
0.56%
0.55%
0.51%
782,447,218
38.93%
2,010,037,672
100.00%
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West Wits Mining Limited
Shareholder information
30 June 2022
Equity security holders
Unquoted equity securities
Unquoted Securities
UNLISTED OPTIONS
PERFORMANCE RIGHTS
Total Holders
(100,001 - and over)
Total Holdings
39
3
157,947,036
10,200,000
Evolution Capital Pty Ltd holds 60,000,000 unlisted options (38% of unlisted options).
.
Refer to the Directors Report and Note 28 to the Financial Statements for further information in relation to unquoted options
and performance rights.
Substantial holders
Names of substantial shareholders who own 5% of more of the voting shares.
Shareholders who have lodged a substantial shareholders notice with the Company.
Holder Name
WINGFIELD DURBAN DEEP LP
Holding Balance
173,195,314
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
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