Annual Report 2021
A W A K E N I N G T H E S L E E P I N G G I A N T
Awakening the
Sleeping Giant
Company Directory
DIRECTORS
Milan Jerkovic
Executive Chair
Greg Fitzgerald
Non-Executive Director
Sara Kelly
Non-Executive Director
Hansjörg Plaggemars
Non-Executive Director
Colin Jones
Non-Executive Director
Lisa Mitchell
Non-Executive Director
COMPANY SECRETARY
Dan Travers
REGISTERED OFFICE AND
PRINCIPAL PLACE OF BUSINESS
Level 3, 1 Altona Street
West Perth WA 6005
www.wilunamining.com.au
SHARE REGISTRY
Link Market Services Limited
Level 12, 250 St Georges Terrace
PERTH WA 6000
Ph: +1300 554 474
Fax: +612 9287 0303
SECURITIES EXCHANGE LISTING
Australian Securities Exchange
Code: WMC
SECURITIES ON ISSUE
Ordinary shares: 158,307,284
Unlisted options: 2,096,737
Zero Exercise Price Options: 1,515,191
AUDITOR
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade
PERTH WA 6000
BANKERS
National Australia Bank
100 St Georges Terrace
PERTH WA 6000
ABN: 18 119 887 606
Contents
Corporate Overview
Company Highlights
Chair’s Letter
Review of Operations
Operations
Growth
Discovery
Resources & Reserves
Corporate, People and ESG
Sustainability
Sustainabilty (ESG)
Financial Report
DIrectors’ Report
Remuneration Report (Audited)
Auditor Independence Declaration
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Consolidated Statement Of Financial Position
Consolidated Statement Of Changes In Equity
Consolidated Statement Of Cash Flows
Notes To The Consolidated Financial Statements
Additional Information
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Shareholder Information
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2
With continuing improvements in operating
performance, and new proceeds from debt
and equity transactions, Wiluna Mining was
able to continue to improve its balance sheet
and significantly advance an aggressive
development profile.
Milan Jerkovic, Executive Chair
Wiluna Mining | Annual Report 2021 3
FY 2021
Company Highlights
Production
Other highlights
51,552 oz’s
@ AISC of A$1,794/oz
FY2021 Net Profit
$
$20M
2020 $14M
2021 Capital Investment
$99m invested into
the development
of our assets.
Ore Reserves
1.3Moz
37.1 MT @1.08 g/t
Mineral Resources
Stage 1 on track to be
commissioned in Q2 FY2022;
targeting full production run rate
of 120kozpa by end of FY2022.
Construction of concentrator continues
by GR Engineering Services; work is 90%
complete and on budget
$99 million net invested in development
activities in FY2021 including resource
drilling, sustaining capital, infrastructure
and Stage 1 capital
Sulphide Underground Development
completed in FY2021 was 4,516 metres
Golden Age Underground Development
completed in FY2021 was 1,758 metres
Stage 2 Feasibility Study continues;
completion expected Q3 FY2022
Wiluna Mining Centre
FY2021 drilling was 112,000m
5.78Moz
60.07MT @2.99 g/t
Wiluna Mining Operation
6.98Moz
107.38MT @2.02 g/t
Wiluna Mining | Annual Report 2021 4
Wiluna Mining | Annual Report 2021
Executive Chair’s Letter
It gives me great pleasure to report on the continued
development of Wiluna Mining for the Financial Year
ended 30 June 2021.
MILAN JERKOVIC
Executive Chair
In last year’s annual report, I described the 2020 Financial Year as a watershed year for Wiluna Mining.
If 2020 was a watershed year, then 2021 was a progressive year. We not only built on the solid
foundations laid out in 2020 but we have taken steps to transform and improve into what is
now a very impressive company.
I am especially pleased that we were able to record
this progression in very challenging times.
The onset of the COVID -19 pandemic threw several
curve balls at all of us in the mining community. It is
a source of great pride how well the team at Wiluna
Mining adapted. In fact, the entire industry managed
to work its way through these difficulties and
uncertainties that confronted us on what seemed
like a weekly basis.
That we have been able to move forward so well is
a great credit to the many people at Wiluna Mining.
They have remained focused, yet able to adapt when
necessary, and I thank them all for their hard work,
diligence and collegiality.
At Wiluna we like to say we do things the Wiluna
Way. The Wiluna Way is our creed which contains our
mission statement, our vision, our strategy and our
way of doing things.
It outlines the strategic steps required for us to
transform from a modest gold producer into a high
performing Tier 1 gold company operating in a Tier
1 gold jurisdiction. The Wiluna Way also includes the
four pillars on which our business is focused.
Our mission is to create long-term shareholder
value through the identification, development and
production of regional, geologically superior, natural
resource opportunities.
Our vision is to build a respected mining company
that provides superior earnings and sustainable
capital growth, by applying both skill and capital in a
manner that compliments the risk reward profile of
our shareholders.
Wiluna Mining | Annual Report 2021
Our four pillars of our business are:
People and ESG
Growth
Operations
Discovery
If 2020 was a watershed year,
then 2021 was a progressive year.
The Wiluna Way encourages each of us to approach
every task with courage, integrity, tenacity,
innovation, teamwork, transparency and
with compassion.
In last year’s report I spoke of the 24-month strategy
that commenced in September 2019 to transition
the company’s fortunes and generate sustained
shareholder value.
Our five-point strategy:
1. Repair and strengthen our balance sheet
2.
3.
4.
Increase and maintain immediate operational
cashflows
Transition to include gold concentrate production
Expand gold production by undertaking
feasibility to fully develop a 250kozpa, long-life
gold operation
5.
Define the large Wiluna gold system to its full
potential via discovery.
I am pleased to advise shareholders that we
have completed or are progressing all the points
outlined in the strategy.
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Wiluna Mining | Annual Report 2021
As we progress, we continue to plan the next
phase of our strategy as defined in The Wiluna Way.
Our focus for the next 36 months will cover:
1.
2.
3.
4.
5.
6.
Maximum operating cashflow to support
the three-year orderly development of
Wiluna
Stage 1 project execution and production
ramp up during FY 2022
Delivery of the Stage 2 project business
plan and execution strategy including
Feasibility study completion and financing
during FY 2022
Continuation of under the headframe
(at Wiluna and Regent) and regional
exploration
Leadership development and intra-company
communication improvements
Completion and implementation of
our People and ESG framework.
In addition to our growth story showing strong
progress, FY 2021 provided a number of other
highlights. For the second consecutive year, the
company made a profit. Net profit after taxation
for the year ended 30 June 2021 was $20 million,
up 43% on last year’s $14 million. Gross profit
from operations was $21 million as opposed to
$1 million in FY 2020 (net profit last year was
boosted by profit from asset sales of $13 million).
Revenue increased from $127 million to $131 million.
AISC costs improved from $1,950/oz in 2020 to
$1,794/oz in 2021. Most of the ore treated in FY
2021 was mined from our open pits. Open pit mining
ceased in February 2021 which has helped to lower
our costs of production.
Net cashflow from operations during FY21 was $34
million, up $20 million on 2020. This strong operating
performance allowed us to:
•
•
•
Strengthen our balance sheet and deliver
an additional $82 million in net assets
Improve our working capital position by
$51 million
Invest $99 million into our staged development
program including construction of the
concentrator, underground mine development,
pre-production mining activities and resource
definition drilling
Other highlights for the year included the
appointment of new directors to strengthen the
composition of the Board. We welcomed Hansjorg
Plaggemars and Colin Jones to the Board.
Post the year end but prior to the publication of
this report, Lisa Mitchell joined the Board. All three
directors bring significant experience and diverse
skill sets. Two are located in Europe which will assist
us greatly, given most of our shareholders are
based there and we plan to list on the London Stock
Exchange (‘LSE’) Main Board later this Financial Year.
I ask shareholders to welcome Hansjorg, Colin and
Lisa to WMC.
I thank the two retiring directors – Tony James, who
retired to take up a full-time position as Managing
Director with Galena Mining Ltd, and Neil Meadows
who will remain with Wiluna as a full time executive
in the position of Chief Operating Officer. Neil
will continue to oversee operation, the Staged
Development Program and the ongoing Feasibility
Studies.
Further key business development
activities include:
•
•
•
Repayment of the Mercuria Tranche 1
A$21 million debt
Drawdown of the Mercuria Tranche 2,
US$42 million four-year loan facility
Substantive Mineral Resource and Ore
Reserve updates (including a 142% increase in
underground Ore Reserves)
• A successful seismic program
•
•
•
•
A new Alliance Agreement with world class,
underground mining group Byrnecut
Continued progress with our Alliance Agreement
with the Polymetal Group
Continued and significant progress with Safety,
People and ESG platforms to which we remain
totally committed
Ongoing progress towards an LSE Main
Board Listing.
We would not be able to operate successfully
without the enthusiasm, the efforts and the
performance of our people. I sincerely thank each
person’s contribution, irrespective of their role
or position.
Wiluna Mining | Annual Report 2021
Figure1: (the now completed Williamson Pit
(now full of water) from the air.
WMC aims to keep people safe and provide a
great opportunity for them to strive and develop
successful careers. Their efforts and experiences will
help Wiluna to become a long-term, world class, safe,
compliant, clean and profitable operation, thereby
creating real wealth for all our people, owners
and partners.
I respectfully acknowledge the Martu People as the
traditional owners and custodians of the land the
Wiluna Mining operation sits on.
I am also very grateful to be sharing our journey
with all our broader stakeholders. These include our
shareholders, our alliance partners, our suppliers and
our supporters.
My thanks to everyone for your contribution and for
your continued support.
Regards,
Milan Jerkovic
Executive Chair
Wiluna Mining Corporation Limited
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Wiluna Mining | Annual Report 2021
Review of
Operations
Wiluna Mining | Annual Report 2021
SUMMARY
The 2021 Financial Year saw Wiluna Mining continue developing
its Staged Development Program which is aimed at developing the
Wiluna Mining Operation to become a Tier 1 gold asset located in a
Tier 1 jurisdiction.
CORPORATE
PEOPLE & ESG
• Good, smart people
and strong leaders;
safe and responsible
culture; solid,
respectful and
trusting relationships
with our traditional
owners, partners and
community, and high
ethical standards.
We want to generate
maximum value for
our shareholders in
a safe, socially and
environmentally
responsible way.
The Company has four pillars to its business:
OPERATIONS
GROWTH
DISCOVERY
• ‘Under the
headframe’
exploration
• Regional exploration
Growth to be delivered
in two stages:
• Stage 1 – Gold doré,
gold in concentrate
production and
tailings retreatment
of 120kozpa –
Commissioned in
December 2021
(tailings retreatment
February 2022).
Ramp up to full
production 5-6
months
• Stage 2 – Gold
doré, gold in
concentrate and
tailings retreatment
production of
+250kozpa – Subject
to conclusion of
Feasibility Study
expected to be
completed in
March 2022 and
Board approval;
expected date of
commissioning
CY 2024
• During the year the
Company continued
to operate its
2.1Mtpa CIP plant,
processing free-
milling ore producing
51,552oz @AISC of
$1,794/oz. Most of
the ore processed
was from the
Williamson open pit
with smaller amounts
of ore coming from
our underground
operation Golden
Age. Mining at
Williamson finished
in Q3 FY 2021 and
for the rest of the
year we processed
the stockpiles from
Williamson along
with some ore from
Golden Age.
At the beginning
of December 2021,
the treatment of
ore will primarily be
processed through
the new concentrator.
The commissioning
will take place in
December 2021 and
the ramp up process
to full production will
take approximately
5-6 months.
9
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Wiluna Mining | Annual Report 2021
In addition to the four pillars of business, Wiluna Mining has finalised its 24 month, five-point strategy of
creating shareholder value and turning the Company’s fortunes around. When it commenced in September
2019 the strategy set out to:
1
2
3
4
5
Strengthen the Balance Sheet
Check ONGOING
Increase and maintain immediate
operational cashflows
Transition to include gold
concentrate production
Expand gold production by undertaking
feasibility to fully develop a greater than
250kozpa, long-life gold operation; and
Check ONGOING
Check UNDERWAY
COMMENCING
DEC 2021
Check UNDERWAY
FS COMPLETE
BY Q3 FY 2022
5. Define the large Wiluna gold system to
its full potential via discovery
Check ONGOING
To repair and strengthen our balance sheet, we have, in the past 24 months:
•
Raised approximately $200 million, made up of $123 million in equity ($63 million in FY 2021) and
$77 million in debt. This allowed us to repay debt which was owed to our mining contractor;
• Repaid our tranche 1 debt to Mercuria;
• Drawn down on tranche 2 dept of US$42 million from Mecuria;
• Normalised our other creditors;
•
•
•
•
•
Increased our working capital buffer
Enabled us to invest over $160 million on development. $99 million of this was invested in FY 2021.
This includes the concentrator and plant, underground mine development, infrastructure, as well as
resource definition drilling and developing Stage 1 and commencing Stage 2 as well as investing in the
Stage 2 Feasibility Studies.
Made a profit in the past two financial years. This have contributed greatly to assisting with the
balance sheet repair; and
Maintained a strong balance sheet and cashflow as we plan for Stage 1 Commissioning to take place
over the first six months of CY 2022
To increase and maintain our operational cashflows, we have:
Maintained a specific focus on operations to maximise cashflows over ounces produced in FY 2021.
This has allowed us to generate $34 million in net cash inflows from operating activities, an increase of
143% over the same figure in FY20. Despite the current transitional period, we are confident that, once
the concentrator is commissioned (Q3 & 4 FY22), there will be steady cashflows to take us through the
execution of Stage 2. At this point, scale will deliver substantial ongoing cashflows.
Wiluna Mining | Annual Report 2021
11
To transition to include gold concentrate production, we have:
•
Made very good progress with the construction of the concentrator, as announced in our various ASX
releases over the past 12 months and as you will see from the photos in this report. As I write, it is 90%
completed. The final phase will see the installation of the flotation cells that are due to arrive from India in
mid-October after several months delay (See figures 6-9).
To expand gold production, we have:
•
Advanced our Stage 2 Feasibility Study to fully develop a 250kozpa, long-life gold operation.
We expect to complete the study by the end of Q3 FY 2022.
To define the large Wiluna gold system, we have:
•
Continued to identify this potential. The results from over 112,000 metres of drilling during FY21 and
over 175,000 metres of drilling in the past two financial years have been outstanding with a constant
flow of excellent high-grade results.
The next phase in our Staged development requires
a fresh strategic approach and our focus for the next
36 months will include:
1.
2.
3.
4.
5.
6.
Maximum operating cashflow to support
the three-year orderly development of
Wiluna
Stage 1 project execution and production
ramp up during FY 2022
Delivery of the Stage 2 project business
plan and execution strategy including
Feasibility study completion and Financing
during FY 2022
Continuation of under the headframe
(at Wiluna and Regent) and regional
exploration
Leadership development and intra-
company communication improvements
Completion and implementation of our
People and ESG framework.
Our goal is to be a Tier 1 gold producer located in a
Tier 1 location.
Gold production for FY2021 was 51,552oz at an
AISC of A$1,794/oz. For the second consecutive year,
the company made a profit. Net profit after taxation
for the year ended 30 June 2021 was $20 million,
up 43% on last year’s $14 million. Gross profit from
operations was $21 million as opposed to $1 million
in FY 2020 (Net Profit last year was boosted by profit
from asset sales of $13 million).
Revenue increased from $127 million to $131 million.
AISC costs improved from $1,950/oz in 2020 to
$1,794/oz in 2021. Most of the ore treated in FY
2021 was mined from our open pits. Open pit mining
ceased in Q3 FY 2021 which has helped to lower our
costs of production.
Net cashflow from operations during FY21 was
$34 million, up $20 million on 2020. This strong
operating performance allowed us to;
•
•
•
Strengthen our balance sheet and deliver an
additional $82 million in net assets
Improve our working capital position by
$51 million
Invest $99 million into our staged development
program including construction of the
concentrator, underground mine development,
pre-production mining activities and Resource
definition drilling.
12
Wiluna Mining | Annual Report 2021
Operations
Table 1: FY21 Production & Costs Summary
Production
Open Pit Mining
Total Mining
Strip Ratio
Ore Mined
Mined Grade
Underground Mining
UG Development (inc. Rehab)
Ore Mined
Mined Grade
Total Ore Mined
Total Mined Grade
Total OP & UG Contained Gold
Processing
Tonnes Processed
Grade Processed
Recovery
Gold Produced
Gold Shipped
Gold Sold
Achieved Gold PRice
Costs
Mining - net of costs capitalised
to pre-production
Processing
Site Administration
Stockpile movements
Royalties, Refining Costs & Silver Sales
Sustaining Capital Expenditure
Overhead Costs
Other
All-in Sustaining Costs Per Ounce
UNIT
bcm
w:o
t
g/t
m
t
g/t
t
g/t
oz
t
g/t
%
oz
oz
oz
A$/oz
A$oz
A$oz
A$oz
A$oz
A$oz
A$oz
A$oz
A$oz
A$oz
SEP 20
QTR
DEC 20
QTR
MAR 21
QTR
JUN 21
QTR
FY21
YTD
1,034,131
2.5
724,802
1.2
773
22,032
3.9
746,834
1.2
29,651
415,710
1.2
83%
13,360
12,812
12,108
2,584
1,468
680
147
(499)
153
36
27
0
2,012
405,732
0.6
710,755
1.3
1,988
21,755
2.7
732,510
1.3
31,209
330,981
1.5
86%
13,398
13,459
12,823
2,633
972
631
186
(411)
140
116
42
0
1,675
54,114
0.01
138,555
1.3
1,255
18,782
1.9
157,337
1.4
7,150
288,520
1.6
85%
12,271
12,737
12,809
2,639
969
649
159
229
148
18
33
(75)
2,130
-
-
-
-
1,493
1.5
1,574,112
1.2
2,258
32,382
2.7
32,382
2.7
2,811
6,274
94,951
2.8
1,669,063
1.3
70,820
310,734
1.5
85%
12,524
12,252
12,782
2,651
1,345,945
1.4
85%
51,552
51,260
50,522
2,627
140
743
11
310
149
51
(33)
0
1,371
891
675
127
(102)
147
56
18
(18)
1,794
Wiluna Mining | Annual Report 2021
13
Table 2: Wiluna Gold Production
•
•
Mining activities at Williamson were completed as planned in Q3 FY 2021. Stockpiled ore from Williamson
continued to provide most of the feed for processing from February until June 30. Williamson provided
approximately 1.2Mt of mill feed in FY 2021.
Production from the underground operations at Golden Age were re-balanced during the year as we
prioritised underground development on Stage 1 rather than mining free milling ore from
the underground.
•
Sulphide Underground Development completed in FY 2021 was 4,516 metres.
• Golden Age Underground Development completed in FY 2021 was 1,758 metres.
During the year there was substantial refurbishment and upgrading of the three mills as well as the crushing
circuit designed to improve the performance of the front end crushing and milling circuit in time for the
commissioning of the concentrator in December 2021.
Wiluna Mining is nearing the end of the 24-month transitional period concluding in December 2021 when
the commencement of gold production from the Company’s higher grade, long dated underground sulphide
Mineral Resources is scheduled to begin. During the transition period, the Company has successfully focused
on maximising cashflow which has been successful in FY 2021 where our ounces were down by over 10kozpa
from 2020 but our AISC decreased from 2020 and we were more profitable.
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Wiluna Mining | Annual Report 2021
Figure 2: Williamson Pit during the final stages of mining.
Growth
The Wiluna Mining Operation is currently in development with a two-staged, 3-year development plan
underway to transform Wiluna from a modest, cashflow positive producer of free milling ore via a
conventional CIP plant into a multi circuit operation producing circa 250kozpa. On completion, the staged
development plan will enable Wiluna to treat all the ore types at Wiluna through four processes including:
•
•
•
•
Existing 2.1 Mtpa CIP process plant to produce
gold doŕe;
750,000 tpa flotation concentrator which is
in construction and will be commissioned in
December 2021 scaling up to 1.5 Mtpa capacity
by the end of FY 2024;
Gravity circuit which ultimately produces gold
doŕe; and
Tailings retreatment plant which links tailings
reclaim and reslurrying with the existing CIP
circuit, which is also processing flotation tailings,
to produce gold doŕe.
Stage 1 development is defined at a production
profile of 120kozpa. The final capacity and shape
of the Stage 2 development at the Wiluna Mining
Operation will depend on the conclusions from
the Feasibility Study currently taking place.
This Feasibility Study includes significant Resource
drilling which is aiming to add an additional 500koz
to our current underground Ore Reserve of 661koz
@ 4.74 g/t by the end of CY 2021.
Wiluna Mining | Annual Report 2021
15
Table 3: Two Staged Expansion Snapshot
Two Staged Expansion Snapshot
Stage 1
Production
Commissioned December 2021, ramped up Q3 and Q4 FY 2022
120,000 ozpa concentrate/doŕe (approximately 30,000 ozpa doŕe)
Processing Rate
750,000 tpa sulphides and approximately 2,000,000 tpa tailings re-treatment
Estimated AISC/oz
US$1,150-$1,200/oz*
Stage 2
Feasibility Study completion expected Q3FY 2022
Targeting commissioning Q1 FY 2024
Planned Production
250,000 ozpa concentrate/doŕe (approximately 50,000 ozpa doŕe)
Processing Rate
1,500,000 tpa sulphides and approximately 2,000,000 tpa tailings re-treatment
*Expected improvements in AISC to result from increased grade and reduction in development cost per tonne mined.
The Wiluna Mining Operation also has significant
exploration and discovery potential within its
1,600km2 tenement area, both ‘under the headframe’
at the Wiluna Mining Centre, and regionally.
The Company is progressing multiple targets with
million-ounce discovery potential such as the three
additional well-defined mining centres at Regent,
Lake Way and Matilda, all with stand-alone, long-life
mining potential.
A key business imperative of Wiluna’s plan going
forward is to minimise our environmental footprint
and create a more sustainable future operation.
To this end, we are pursuing more environmentally
friendly processing routes, undertaking process
and mining efficiency studies and investigating
the use of renewable energy solutions to meet
our increasing energy demands. In support of this
strategy the Company has installed equipment to
acquire wind data for a renewable energy power
generation study still slated to commence in 2022.
GROWTH PROFILE
STAGED EXPANSION
Gold doré
production
~51kozpa
Current Operations
Gold in
concentrate
production
~120kozpa
Stage 1
Stage 2 Feasibility Study
Stage 2 Construction
Increased
production
~250kozpa
Stage 2
Concentrate
& Doré
Multi-Circuit
Drilling Program
FY 2021
Stage 1 construction and mine
development
Q2 FY 2022
Initial Stage 1 production
begins
Q1 FY 2024
Stage 2 commissioning
LONG TERM
Multi-circuit production commissioning
Figure 3: Growth Expansion profile
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Wiluna Mining | Annual Report 2021
Figure 4: Map of the Wiluna
Mining Centre. Stage 1
sulphide mining areas are
shown coloured.
Offtake agreements for 100% of the gold
concentrate for the first three years of production
have been secured with Trafigura and London-listed
Polymetal Group.
The Wiluna Mining Centre is divided into three
geographical areas (see below), centred on
underground mine portals and planned mining areas
of the Stage 1 Sulphide Development plan. Mining is
planned to commence at the Wiluna North Mine area
via the existing Bulletin Decline, and two existing
declines at the Happy Jack deposit, and then extend
to the Wiluna South Mine area via two additional
existing declines in East Pit. The Stage 1 plan
focusses on high-grade sulphide ore bodies close
to existing decline access and less than 600m deep,
leading to rapid low-cost access to ore.
Drilling ‘under the headframe’ at the Wiluna
Mining Centre in support of the Sulphide
Development Plan delivered consistent outstanding
results. This drilling will assist the Company to
convert Inferred Resources to the Indicated category
and convert Resources to Reserves at areas to be
mined in the first 1 to 5 years.
Wiluna Mining | Annual Report 2021
17
Stage 1 Development
Flotation Plant
The Company’s 750ktpa Stage 1 Flotation Plant Construction program continues to progress achieving key
milestones over the last 6 months.
Overall construction completion is approximately 90% complete as activities ramped up during this period.
June and July saw the previously predicted mobilisation of mechanical, piping, and electrical trades personnel
to site. All design and procurement activities are now complete. Current milestones are:
• Concrete:
100% complete
•
Structural:
90% complete
• Mechanical:
70% complete
• Piping & Elect:
50% complete
The figures below show construction progress as of the end of September 2021 with all major components,
except for the flotation cells delivered to site and in many cases installed. The filter is due on-site mid-
September 2021 and the flotation cells for which construction is now complete are due to be delivered to
site mid October 2021 for immediate installation.
Figure 5: Stage 1 Concentrator 3D model
At this stage commissioning will take place in early December 2021 (a delay of two months) and full ramp up is
expected to take 5-6 months.
Concentrator: Timeline of construction
Feb 2021
Initial earth works commenced
1
Mar 2021
Concrete pouring commenced
2
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Wiluna Mining | Annual Report 2021
Concentrator: Timeline of construction
Mar 2021
Ongoing concrete pouring
May 2021
Bagging shed under construction
Aug 2021
Control Room installed
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Steel work commenced
Jul 2021
Tank painted in ‘Wiluna Teal’
Oct 2021
Concentrator 90% complete
4
6
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Wiluna Mining | Annual Report 2021
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Stage 1 Layout
Below: Oxide Plant modified for sulphides
and Wiltails
•
•
•
•
Utilising existing crushing/grinding
to provide flotation feed.
Flotation concentrate for export
Flotation tailings for CIL
Add reclaimed tailings to utilise full
capacity of CIL circuit.
Underground development
Figure 6: Underground Mine Development –
new infrastructure and equipment
20
Wiluna Mining | Annual Report 2021
Underground operations continue to ramp up
with the focus on continuing the progressive
rehabilitation of existing accesses and infrastructure
to establish initial stoping areas for the
commencement of concentrate production from the
Stage 1 concentrator.
Mining operations in the Bulletin and Happy Jack
mines have continued to progress with infrastructure
upgrades and development accelerating.
•
•
•
•
•
•
•
Capital development in the Bulletin Upper area
continued on multiple levels with first ore drives
having delivered sulphide ore in August.
Mining of the first 2 sublevels for sulphide ore
development has commenced with first stope
ore expected in October/November.
Development of a decline in the Woodley lode
is ongoing to enable establishment of diamond
drill platforms to further define Resources in
this area.
Happy Jack North decline rehabilitation
continued with nearly 200 m completed over
July and August.
Portal sets have been constructed for the decline
portal at Happy Jack South and rehabilitation in
the decline will commence in September.
Sulphide Underground Development completed
in FY 2021 was 4,516 metres
Golden Age Underground Development
completed in FY 2021 was 1,758 metres
•
Approximately 15,000 t of sulphide development
ore has been stockpiled on surface in
preparation for Sulphide Plant commissioning.
Mine planning and schedule improvements to
support delivery during the development and
production ramp up are well advanced and
improvements to the mine infrastructure and
services backbone are gaining momentum with
recent activities including:
•
A comprehensive plan has been developed for
upgrading the high voltage (HV) power supply to
the mine. This includes replacing current 1MVA
Figure 7: Underground development
Wiluna Mining | Annual Report 2021
21
•
•
•
•
substations with 2MVA substations (the first
installed in late May) and new HV feeder lines
via boreholes to ultimately establish a ring-main
power supply.
A program to seal off old workings has been
completed resulting in an increase in mine air
volumes and quality.
To match the planned increase in mining
activities upgrades to the primary fan systems
are scheduled in the coming months.
A comprehensive assessment of the ground
support in the dewatered areas of the Bulletin
decline has been completed and priority areas
identified for rehabilitation. Work is underway
to rehabilitate the high priority areas identified.
Upgrades to the multi-stage mine water
pumping system continued with a program in
place to substantially increase the dewatering
rate from Bulletin in particular. Plans to begin
pumping out Happy Jack South are currently
underway and will begin in line with the
commencement of decline rehabilitation.
Upgrades to mine services including new larger
diameter air and water service lines in the declines
have been installed together with the purchase and
installation of two new air compressors.
Wiltails Project Update
The Wiltails Project has an Ore Reserve of 31.6Mt
@ 0.6g/t for 579koz located in three historical
tailings dams and four open pits. The highest
financial return reserves are located in the two
tailings storage facilities immediately adjacent to the
existing processing facilities – TSF H and TSF C.
Working with MACA Interquip, plant layout and
capital cost estimation was completed during
August. The scope of work includes provision of:
• A feed bin and conveyor
•
•
•
A trommel to repulp the tailings using flotation
tailings
A lime slaking circuit for pH adjustment utilising
existing equipment
A pumping system to send the tailings slurry to
the existing CIP leach circuit
Dry tailings will be excavated from the dams
and hauled by truck to the Wiltails plant before
being fed into the feed hopper. All works will be
completed utilising WMC employees and equipment.
Commissioning is currently anticipated for Q3 FY
2022 following obtaining environmental approvals.
Figure 8: Wiltails Project Tailings Scrubber
22
Wiluna Mining | Annual Report 2021
Mineral Resource and Ore Reserve
Development Program
Resource development drilling continued
throughout the year utilising up to 8 rigs to
complete 112,428 metres of additional drilling up
to 30 June 2021. The focus of the drilling has been
to increase the level of confidence in the Mineral
Resource at the Wiluna Mining Centre towards
updating the Reserves and strengthening the
mine plan.
In November, the Company published a global
Mineral Resource ranging from 74.4 Mt @ 2.29
g/t for 5.47Moz to 154Mt @ 1.63 g/t for 8.04 Moz
depending on the selected cut-off grade, and the
Mineral Resource of the Wiluna Mining Centre
alone using a 1.0 g/t cut-off increased to 60.2Mt
@ 2.99 g/t for 5.78 Moz.
A further Mineral Resource update will be released
in the December quarter of 2021 and a Reserves
update will be released early in calendar 2022
incorporating results of the major resource infill
drilling program undertaken.
The Company’s goal is to add 500,000oz of high-
grade, shallow Ore Reserves through further infill
drilling of the existing resource base and to build
a 2.5Moz Measured and Indicated Resource to
enhance mine planning and long-term option studies
(currently the M&I Resource is 2.14Moz @ 5.26g/t,
above 2.5g/t cut-off). The ongoing drilling program is
focused on highest-value zones scheduled for mining
to further enhance the mine plan.
In addition to the Company’s focus on defining
shallow, high-grade Ore Reserves for the sulphide
development plan, the geological program aims to
reveal the full scale of the very large gold system at
Wiluna to over 1,800m below surface with multiple
targets “under the headframe” to be drilled. The
ongoing program is targeting high-grade resource
extensions greater than 5g/t, located close to
the surface and close to existing underground
infrastructure for lower costs per ounce developed.
The Company is targeting infill definition and further
extensions to high-grade sulphide zones in the initial
areas to be mined, because every 1 g/t increase
in the grade in the sulphides should result in an
additional 25kozpa of production in Stage 1 and
50kozpa in Stage 2.
The Company aims to discover analogues to the
historically mined Bulletin main shoot which
produced 900,000oz @ 8g/t. The Company’s
geologists have identified multiple targets where
ore shoots may have formed, in a predictable
structurally repeated pattern controlled by
the steeply south-plunging shoot corridors in
conjunction with conjugate north-plunging trends.
The main mineralisation is not closed off along
strike or down dip and the gold endowment of
cross cutting structures both within the main
mineralisation and peripheral to it has been
insufficiently assessed. The potential for both
high-grade lode structures as previously interpreted
and exploited or wider shear zones potentially
lending themselves to bulk mining methods will
be further explored.
A significant Mineral Resource development
drilling program is underway to fully scope out the
depth, scale and optimal mine plan to best exploit
the mine. Whilst the immediate drilling focus is to
confirm Reserves within the immediate mining areas
to support a 3 to 5 year production window, this will
be complemented by a broader exploration drilling
program to fully define the very large mineralised
system, with results expected to inform long-term
optimisation studies and define the ultimate scale
of the operation.
Wiluna Mining | Annual Report 2021
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Wiluna Mining | Annual Report 2021
Stage 2: Feasibility Study
The Feasibility Study for the Stage 2 increase in flotation plant capacity to 1.5Mtpa is progressing well with
significant progress made on metallurgical testwork in preparation for process plant engineering which
commenced in Q1 FY 2022.
Design Concept Stage 2
Below: Sulphide Plant and and Wiltails
•
•
•
•
•
New crushing, HPGR and Grinding,
2 x capacity of existing. Flotation circuit
expanded.
Flot con -> shipped.
Flot tail to CIL.
Add Wiltails up to full capacity of
CIL circuit
Old crushing/grinding available for oxides/toll
treating.
A conceptual production profile illustrating a
staged ramp up to 1.5Mtpa is shown in Figure 9.
The conceptual production ramp up achieves a
~250kozpa production profile from 2025 once
Stage 2 ramps up to full production with the
potential to realise additional production Wiltails
and / or CIL ore sources through using the available
CIP processing plant.
The mining inventory used to generate this
production profile is based on early-stage
underground mine designs and is inclusive of
mineralisation classified as Measured, Indicated and
Figure 9: Stage 2 Conceptual Production Profile*
*Note; The potential quantity and grade of the Exploration Target is conceptual in nature. The JORC Compliant Exploration Target defined for the East/
West structures at the Wiluna Mining Centre is approximately 35Mt to 40Mt @ 4.5g/t to 7g/t for 5Moz to 7Moz of gold (ASX release dated 17 November
2020). The Exploration Target potential does not pertain to a Mineral Resource or Ore Reserve and is purely an indication of the potential of the Wiluna
deposit beyond the current production areas and currently defined Mineral Resource. There has been insufficient exploration drilling to estimate a
Mineral Resource in the target areas, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Company’s major
ongoing resource and reserve development programme over the next 5 years will systematically test these targets.
Wiluna Mining | Annual Report 2021
25
Inferred. The mining inventory is not an Ore
Reserve and represents a conceptual opportunity
rather than a firm development plan. To realise
this opportunity the Company will continue an
aggressive Mineral Resource drilling program to
infill mineralisation envelopes and convert Inferred
material to Indicated or better.
Engineering studies have commenced with the
addition of Mining Plus to the team of consultants
working on the study. Mining Plus will provide
mine engineering, design, scheduling, capital
and operating cost estimation support as well as
Competent Person sign off on the Ore Reserve
Estimation. Rockwater will provide hydrogeological
support for the process water and underground
dewatering components of the study.
Upon completion, the Stage 1 flotation circuit
will provide an initial 750ktpa processing capacity. In
Stage 2, the Company is targeting an expansion of
gold production based on the large Mineral Resource
and preliminary mine planning which suggests that
a sustainable mining rate of 1.5Mtpa should be
achieved to double gold production. The Resource
and Reserve development program which is
underway is designed to convert more of the
very large resource base to reserves through
infill drilling and delineation of additional high-
value resource areas. The Feasibility Study will be
completed during Q3 FY 2022 to guide the Company
when Stage 2 Development should take place.
The study will confirm:
•
•
•
•
Sustainable mining rates from underground
operations which, in turn, will determine the
processing rate.
Ongoing resource to reserve expenditure
required to maintain mining inventory for the
expanded plant.
Preferred process plant configuration for
comminution and flotation circuits.
Expansion requirements for power and water
supply, mine village and other support activities.
• Capital estimates and funding requirements.
It is planned that the Ore Reserve update will be
based on processing costs for the Stage 2 processing
rate which should be lower than Stage 1 due to
the ability to spread fixed costs over increased
production.
GR Engineering Services have been appointed to
prepare the metallurgical, process engineering,
cost estimation and project implementation plans
leveraging their project specific experience with
the Stage 1 and 2 studies conducted previously as
well as the construction experience accumulated
throughout the Stage 1 build.
Table 4: A high-level work plan to meet the strategic
development objectives over the coming 3 years
CY2021
CY2022
CY2023+
LOM Planning Update
Village Extension
Processing Free Milling Ore
Water Management & Treatment Improvements
Concentrator Construction & Commissioning
Wiltails Construction & Commissioning
STAGE 2 Feasiblity Study
TSF K Stage 2
STAGE 2 Construction & Commissioning
Sulphide Resource/Reserve Development for Feas.
Seismic Target Drilling & Survey
Open Pit Conversion Drilling
Sulphide Reserve Growth/Maintenance
Long-term Discovery (scale of deposit)
Resource/Reserve Development
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Wiluna Mining | Annual Report 2021
Metallurgical Testwork
The Stage 2 Sulphide Expansion metallurgical
testwork program has generally produced results
that fall in line with results achieved during
approximately two decades of plant operational
flotation experience. A summary of testing results
achieved to date follows:
1.
2.
3.
Work index tests repeatedly confirm very
hard host rock, which leads to the potential to
overgrind the sulphide component if the flash
flotation is offline, despite which flotation
results improved as overall grind sizes decreased
to 75um, with little incremental benefit seen
beyond that.
There was no requirement for the high
conditioning power, high reagent consumptions
and high residence times initially determined by
the Stage 1 testing, which allowed for the Stage
2 flotation circuit expansion to consist of only
one additional flotation cell plus ancillaries.
4.
5.
6.
Golden Age ore is highly amenable to
recovery via flotation.
Density testwork and sodium silicate additions
did not improve flotation recovery, indicating no
rheology concerns with the ore.
A rougher / cleaner circuit can upgrade gold
grades significantly with an over 20 times
upgrade factor.
A combination of flotation recoveries and
flotation tailings leach recoveries consistently
yields greater than 90% overall combined circuit
gold recovery.
Figures 10 and 11 show cleaner flotation testwork
in the laboratory. Note the tailings slurry colour
indicative of high recoveries of the darker sulphide
ore to the flotation product.
Figure 10: Cleaner 1 Concentrate
Figure 11: Final Cleaner Concentrate
Paste Fill Plant
Cemented paste fill may be used underground to support stope walls and to minimise the need to leave ore
behind in support pillars. The paste is produced from process plant tailings and pumped underground reducing
the need for surface tailings storage. At Wiluna, the geotechnical conditions are generally very good and a
backfill technique such as cemented paste is not required to facilitate mining or minimise dilution, however,
the economics of some areas of the mine may improve through a higher extraction rate through the use of
paste fill.
Initial studies have shown that the use of paste fill can improve mining economics and a more detailed
assessment will commence to confirm which areas should be filled, what paste plant capacity is required and
when the plant will be needed.
Included in this assessment will be the benefits of improved recovery of water for the process plant and the
reduction in tailings storage requirements.
Wiluna Mining | Annual Report 2021
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Performance & Cost
Improvement Studies
Current mine and processing plans, Ore Reserves
and production targets are considered base case
scenarios that have not yet been optimised to
maximise cash flow or minimise risk. Opportunities
will be explored to improve upon the base case
scenarios and to schedule them in the life of mine
plan where these add cashflow, reduce risk or reduce
our environmental footprint.
Mining of Remnant Mineralisation
in Stope Pillars and Footwall and
Hanging Wall Skins
The updated Ore Reserves announced on 16 March
2021 did not consider any mineralisation contained
within the Mineral Resource Estimate where it
was contained within pillars or stope footwall or
hanging wall skins. These areas, amounting to
3.3Mt of mineralisation at 4.5g/t for 469koz were
not considered for the Ore Reserve update which
presents as an opportunity with the detailed mine
plan to produce further reserves.
A study commenced during the year to investigate
technical solutions to extract this material safely
and profitably with the intention to include any
profitable ore in the updated ore reserve and mine
plan for the Stage 2 Feasibility Study.
Renewable Power Generation
Electrical power requirements at Wiluna average
approximately 6MW with power supplied by gas
fired generators with diesel back up. As underground
operations ramp up and processing capacity
increases power requirements are expected to
increase over time to 18.5MW. Potentially higher use
will depend on the processing route combinations in
use at any point in time. Renewable energy sources,
such as wind power and solar, are the preferred
energy sources to meet this staged increase in
Figure 12: SODAR (Sonic Detection and Ranging) unit
demand with a target renewable energy contribution
of at least 50%.
Whilst solar energy availability at Wiluna can be
estimated from publicly available data, the potential
for wind power to provide a viable solution requires
the acquisition of at least twelve months of local
wind data for power generation modelling. In
April, a SODAR (Sonic Detection and Ranging) unit
was installed at Wiluna to acquire wind speed and
direction data for a 2022 pre-feasibility study into
wind and solar renewable energy supply to site.
Battery energy storage and use of ‘energy stockpiles’
will be integrated into the study to ensure that
major energy consumption uses green power when
available rather than carbon intensive power on
demand. The “Energy Stockpiles” concept includes
building crushed ore stockpiles and pumping water
to storage tanks during the day when green solar
and wind power is available with drawdown at night
when gas power generation would be required to
undertake the same work. The stockpile is, in effect,
a store of power available to maximise the use of
renewable energy.
Long-term Water Supply
As with electrical power demand, the staged increase
in process capacity with the potential expansion of
flotation processing rates from 750ktpa to 1.5Mtpa
and the parallel processing of 2.1Mtpa of oxide ore
or tailings retreatment will require an increase in
process water supply. Currently water is sourced
from the Eastern Borefield, tailings dam return water
and underground dewatering. This will continue to
be the case for the near term, however, long-term
secure water supply is vital to the operation. It is
necessary to commence studies now to ensure water
sources are identified that can meet the future
increased demand for the long-term.
A hydrogeological assessment to secure long-term
secure water supply commenced during the year and
will progress through the feasibility study.
28
Wiluna Mining | Annual Report 2021
Discovery
Wiluna Mining’s Discovery & Growth Program has three key themes:
Focus on enhancing Ore Reserves for Staged Sulphide Development,
targeting shallow, high-grade, low-cost mining areas.
1
Target Ore Reserves in the depth range 0 to 600m below surface.
Increase sulphide Ore Reserves to support Stage 2 development with programs from surface to a depth of 1,200m.
The program includes mine dewatering, rehabilitation, and installation of drill drives.
Maintain and grow the Indicated and Measured portion of the Mineral Resource on a rolling basis to replace depletion
and provide further inventory for production planning and long-term Ore Reserves.
2
Discover new sulphide zones at Wiluna and reveal the full scale of the
large gold system to 1,800m below surface; multiple targets ‘under the
headframe’ are to be drilled.
Priority targets are located 0 to 600m below surface at Essex (lower), East Lode, West Lode, and Happy Jack North.
Additional targets are located 600 to 1,800m below surface at Calvert, Happy Jack and the East and West lodes.
These targets will be drilled from surface and underground positions.
The historically mined Bulletin main shoot produced 900koz @ 8g/t for comparison. Targeting +5g/t shoot discoveries
which could substantially enhance the initial years of the mine plan.
•
•
•
•
•
3
Make a discovery within the wider 1,600km2 Wiluna Mining Operation,
with four gold deposit styles and multiple targets defined and
excellent potential for long-term organic growth.
Figure 13: Underground Diamond Drilling at Wiluna
Wiluna Mining | Annual Report 2021
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Figure 13: Underground Diamond Drilling at Wiluna
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Wiluna Mining | Annual Report 2021
Discovery (continued)
The Wiluna Mining Centre is a very large high-grade gold system with a +10Moz endowment
(combined current resources and production). During FY 2021, drilling continued at pace with up
to 8 rigs to complete 540 holes for 112,428 metres in support of the Company’s Sulphide Development
strategy. This drilling has focussed on sulphide resource
development in support of the proposed mine development sequence to:
1.
2.
3.
Significantly increase the confidence in sulphide resources from Inferred to Indicated category
and grow reserves to underpin Stage 1 production.
Add reserve ounces in high-grade, shallow locations, close to existing mine development that can
be rapidly brought into production at low cost.
Discover new, high-grade shoots that will add ounces per vertical metre and, more importantly,
increase the grade. This will help consolidate Stage 1 and enhance the transition into Stage 2 which
is to increase production to +250kozpa of gold and gold in concentrate over a long
mine life.
At Wiluna, the bulk of the ounces occur in high-grade
shoots within steeply dipping gold shear zones, with
the two most prominent shears being the East and
West structures and a third sub-parallel structure
called Adelaide-Moonlight shear, with a combined
strike length of over 10km. In addition, numerous
linking structures and splays are also mineralised,
including the free-milling high-grade quartz reefs at
the Golden Age zone.
Most historical production and existing resources
occur in the upper 600m at Wiluna, with limited
drilling during the past 20 years at depth on Wiluna
Mining’s exploration targets. The main structures
within the Wiluna deposit have very limited drilling
below the deepest levels of production (only 1,000m
below surface), but the drilling that has been
completed shows the same mineralisation style as
observed within the past production envelopes.
Combined with new seismic survey results, this gives
confidence that mineralisation extends well beyond
the currently known extents of each lode.
The Company’s discovery during the year of high-
grade shoots at Starlight and Essex demonstrates
the outstanding discovery potential at Wiluna, where
despite over 125 years of mining and exploration,
new high-grade discoveries continue to be made,
close to surface and close to existing underground
mine infrastructure.
Figure 13: Wiluna Mining Centre showing scale of the
operation and drilling target locations, with selected
results from past 6 months.
Wiluna Mining | Annual Report 2021
31
The Company has consistently published outstanding
drilling results throughout the year as the program
systematically drilled-out and extended Inferred
resource areas, confirming the Company’s
confidence in the geological scale and potential for
high-grade discoveries at shallow depths and close
to existing development at Wiluna:
•
•
Discovery and resource development drilling
updates have shown high-grades in infill and
extension drilling at Happy Jack, East Lode,
Essex, Bulletin, Starlight and Golden Age zones
(refer ASX announcements 27 October 2020,
17 November 2020, 27 January 2021,
31 March 2021, 17 June 2021, 20 July 2021
and 13 September 2021).
Large-scale Exploration Targets defined under
the headframe at Wiluna and regionally (refer
ASX announcements 17 November 2020, 6 May
2021, and 17 June 2021).
Figure 14: Sulphide resource development results from
Bulletin and Inferred Resource infill target area.
BULLETIN ZONE
The program at the Bulletin zone, in the Wiluna North
Mine area, was designed to infill Inferred resources
within preliminary stope designs in the interim mine
plan, with the aim to upgrade geological confidence
to Indicated category. Excellent results were achieved
from this program with the lodes still open in multiple
directions including the outstanding 37.52m @
10.77g/t in BUUD0146:
BUUD0108:
BUUD0109:
BUUD0112:
BUUD0146:
3.64m @ 9.93g/t
10.44m @ 3.29g/t including 4.00m @ 5.74g/t
11.00m @ 4.04g/t including 6.00m @ 5.80g/t
10.84m @ 29.39g/t; and 23.92m @ 3.55g/t
(within a broad halo intercept of 37.52m
@ 10.77g/t)
BUUD0164A: 6.73m @ 5.56g/t
WURC0911:
12.00m @ 8.14g/t
WURC0915:
5.45m @ 4.76g/t including 3.91m @ 5.48g/t
WURC0916:
WURD0088:
2.00m @ 14.45g/t; and 2.00m @ 5.38g/t
3.00m @ 4.66g/t; and 4.30m @ 6.42g/t
(within a broad halo intercept of 38.00m @
1.84/t)
WURD0098:
7.41m @ 4.35g/t including 4.05m @ 6.08g/t
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Wiluna Mining | Annual Report 2021
ESSEX
Essex is a high-grade, high-priority mining zone in
the Wiluna North Mine area, which has delivered
outstanding visible gold intersections in numerous
holes down-plunge of the current resource limits
(Figure 15). The success of the Company’s drilling and
resource development activity at Essex, validates the
Company’s strategy to focus on shallow, high-grade
sulphide ore bodies for development early in the mine
plan.
Numerous holes intersected bonanza grades with
visible gold mineralisation over narrow intervals,
reflected in the ultrahigh-grade assays of 2.35m @
61.05g/t including 0.37m @ 313g/t, 2.00m @ 43.23g/t
including 0.52m @ 159g/t, 2.45m @ 31.30g/t and
1.75m @ 19.55g/t.
The presence of free gold is significant as gold doré
produced on site generates improved operating
margins additional to gold in concerntrate.
Previous operators installed underground
development to the base of the Essex ore body, which
requires minimal dewatering and rehabilitation to
gain access to ore. The existing access also provides a
platform for planned drilling from underground to drill
out the newly defined high-grade zones.
WURD0116A: 2.35m @ 61.05g/t including 0.37m
@ 313g/t (visible gold logged)
WURD0108:
1.96m @ 12.63g/t including 0.30m
@ 57.50g/t (visible gold logged)
WURD0109:
1.13m @ 11.03g/t; and 2.45m
@ 31.30g/t (visible gold logged)
WURD0114:
3.75m @ 6.40g/t
WURD0118:
5.00m @ 2.39g/t including 0.60m
@ 6.03g/t and 0.45m @ 11.85g/t; and
2.77m @ 5.59g/t; and 0.30m @ 7.28g/t
(visible gold logged)
WURD0124:
2.00m @ 43.23g/t including 0.52m
@ 159g/t (visible gold logged)
Figure 15. Essex long section showing high-grade results and drilling aimed at converting the Inferred Resource to
Indicated category and defining mineralisation at greater depth.
Wiluna Mining | Annual Report 2021
33
HAPPY JACK
Happy Jack is a high-grade, high-priority mining zone
located centrally in the Wiluna Mining Centre. Access
into the orebody is via two existing declines installed
by previous operators, which are currently being
dewatered and rehabilitated, and infill and extensional
drilling for additional resources is in progress ahead
of imminent sulphide ore production. High-grade
sulphide intercepts are in line with expectations with
intersections including:
HJRD00033:
6.35m @ 4.99g/t including 1.80m
@ 11.51g/t; and 3.80m @ 6.25g/t
HJRD00040:
4.50m @ 11.85g/t
HJRD00121:
9.93m @ 6.31g/t including 0.30m
@ 100.00g/t
WURD0161:
18.27m @ 5.09g/t including 0.49m
@ 47.60g/t; and 4.79m @ 6.03g/t
WURD0164:
4.00m @ 5.10g/t; and 6.10m
@ 4.97g/t including 2.10m @ 10.94g/t
Figure 16. Happy Jack long section showing high-grade
results and drilling aimed at converting the Inferred
Resource area to Indicated category and defining
mineralisation at greater depth.
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Wiluna Mining | Annual Report 2021
EAST LODE
East Lode was originally mined via underground
between 1931 and 1946 and produced 720,000oz
@ 6.7 g/t, which demonstrates the scale and high-
grade nature of this target zone. East Lode remains
open and sparsely drilled in all directions, with the
FY 2021 program targeting:
•
•
•
Infill of the existing high-grade Inferred
resource in planned stope shapes, to upgrade
geological confidence to Indicated resource
category and define reserves
Infill of the Inferred resource for upgrade to
Indicated category in poorly-tested, high-
grade parallel lodes
Further resource and reserve additions along
strike and at depth
Thick high-grade sulphide intersections at East Lode
are in line with expectations with results including
(Figure 17):
WURD0125:
8.00m @ 6.33g/t
WURD0125W1: 14.90m @ 8.60g/t; and 10.20m
@ 4.42g/t including 6.95m @ 5.06g/t
WURD0129:
6.95m @ 5.69g/t
WURD0136:
12.80m @ 5.38g/t
WURD0143:
13.40m @ 4.26g/t including 0.73m
@ 11.07g/t; and 4.77m @ 6.88g/t
WURD0158:
14.30m @ 3.86g/t including 8.52m
@ 5.71g/t
WURD0150:
6.85m @ 7.72g/t; and 3.95m
@ 4.74g/t
WURD0152:
13.12m @ 6.89g/t; and 1.27m
@ 15.05g/t
WURD0138:
11.24m @ 4.60g/t including 2.10m
@ 6.85g/t and 3.13m @ 6.24g/t
Figure 17: East Lode long section with shallow sulphide
intersections and high-grade zones in situ in historical
drilling and open at depth.
Wiluna Mining | Annual Report 2021
35
width 70m) and WURCD0941 intersected broad halo
mineralisation of 82.15m @ 1.50g/t from 207.00m
(estimated true width 55m); these zones may be
amenable to open pit or bulk underground mining
methods. Within these broad zones, high-grade
intercepts include:
WURC0942:
3.00m @ 5.18 g/t, 11.00m @ 6.91g/t, 3.00m
@ 7.29g/t, 10.00m @ 8.92g/t
(Within broad mineralised zone of 106m @
2.41g/t, true width 70m)
WURCD0938:
5.76m @ 5.35g/t
WURCD0941:
4.00m @ 12.46g/t; and 13.59m @ 3.36g/t
including 1.83m @ 7.78g/t and 3.00m @
5.62g/t
(Within broad mineralised zone of 82.15m @
1.50g/t, true width 55m)
WEST LODE
West Lode is a high-grade and high-priority target
zone in the Wiluna South Mine Area owing to its
shallow depth and proximity to existing decline access
that is now being dewatered to install underground
drilling positions. West Lode was historically mined
via underground and produced 691,000oz @ 8.6g/t
between 1932 and 1946, which demonstrates the scale
and high-grade nature of this target zone.
West Lode South remains open and sparsely drilled in
the southern target area (Figure 18), with the potential
to add to mine life and improve the head grade based
on the thick high-grade mineralisation intersected in
the current program and Wiluna Mining’s previous
holes.
West Lode also remains open and sparsely drilled in
the northern Inferred Resource area towards Calvert
zone, and at depth, with potential to delineate
resource extensions and to discover new shoots from
the planned underground drilling positions.
WURC0942 intersected very broad mineralisation
of 106m @ 2.41g/t from 180.00m (estimated true
Figure 18. West Lode long section showing high-grade
results and drilling aimed at converting the Inferred
resource area to Indicated category. Highlighted holes
are latest results. West Lode remains open to the south.
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Wiluna Mining | Annual Report 2021
CALVERT
Calvert is a high-grade, high-priority target zone in
the Wiluna South Mine Area, located on the West
Lode structure immediately north of the historical
underground workings (Figure 19). Calvert is close to
surface and the existing decline access via the Happy
Jack zone and will be further tested from underground
drilling positions as access becomes available.
The Calvert program intersected multiple broad
sulphide intersections including:
Figure 19. Calvert long section showing high-grade
results and drilling aimed at converting the Inferred
resource area to Indicated category. Highlighted drill
hole shows latest results.
WURD0075:
13.90m @ 3.29g/t including 2.66m
@ 7.04g/t and 1.28m @ 7.46g/t; and
16.02m @ 5.41g/t; and 4.64m
@ 12.62g/t
WUDD0062:
5.00m @ 9.44g/t and 5.70m
@ 5.28g/t
Wiluna Mining | Annual Report 2021
37
STARLIGHT
Starlight continues to take shape with multiple
high-grade lodes intersected in WURD0123, which is
the latest and deepest hole drilled at Starlight (Figure
20). Starlight is significant in that it is located only
200m away from the Happy Jack underground mine
and could be rapidly brought into production at low
capital cost if further drilling demonstrates economic
reserves. Modelling of results is underway with a view
to extending the Starlight resource down-plunge and
along-strike, and further drilling is planned.
WURC0955:
15.00m @ 7.23g/t, and 2.00m @ 6.21g/t
WURC0963:
5.00m @ 5.74g/t
WURC0965:
6.00m @ 6.64g/t
WURD0123:
3.45m @ 2.35g/t, and 5.60m @ 1.53g/t, and
7.30m @ 3.01g/t, and 1.60m @ 7.88g/t
WUDD0069:
5.04m @ 6.09g/t, and 2.17m @ 9.45g/t
Figure 20: Starlight long section showing assay
results in drilling aimed at delineating high-grade
sulphide mineralisation. The highlighted drill hole
shows latest results and mineralisation remains
open down plunge along strike.
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Wiluna Mining | Annual Report 2021
GOLDEN AGE
The Company has continued to define extensions to
the Golden Age orebody, which is a source of high-
grade free-milling feed that currently supplements
large ore stockpiles from mining the Williamson
pit, enhancing head grade and cashflows ahead of
sulphides production.
Golden Age will also continue to provide mill feed with
the ability to produce gold doré and gold concentrates
following commissioning of the sulphide concentrator.
Gold doré produced on site in parallel to concentrate
sales will improve operating margins.
The area below the 650m level at Golden Age East
remains untested and when coupled with the high-
grade mineralisation intersected around the 850m
level, a considerable drilling target area remains open
that may host more high-grade mineralisation. (Figure
21).
GAGC0331:
1.67m @ 17.95g/t including 0.60m
@ 45.66g/t; and 1.55m @ 42.72g/t
GAGC0332:
1.58m @ 11.91g/t
GAGC0336:
6.87m @ 30.61g/t
GAGC0340:
4.26m @ 47.94g/t
GAGC0342:
5.96m @ 18.62g/t
GAGC0343:
GAGC0344:
6.58m @ 2.44g/t including 0.50m
@ 15.50g/t
7.55m @ 13.40g/t including 2.50m
@ 37.10g/t
GAGC0345:
3.04m @ 8.59g/t
GAGC0347:
2.93m @ 7.02g/t
GAGC0338:
1.52m @ 18.99g/t
GARD0139:
GARD0141:
1.52m @ 14.46g/t including 0.52m
@ 37.95g/t
1.90m @ 14.04g/t including 0.25m
@ 90.11g/t
Figure 21: Golden Age long section showing assay results from infill and extensional drilling, yellow highlights are latest
results. Further drilling is planned to test high-grade reef extensions down-plunge to the east in the target area shown.
Wiluna Mining | Annual Report 2021
39
EXPLORATION TARGETS DEFINED
The Company has defined an Exploration Target of 5Moz to 7Moz @ 4.5g/t to 7g/t (see ASX release dated
17 November 2020). The potential quantity and grade of the Exploration Target is conceptual in nature and is
therefore an approximation. There has been insufficient exploration drilling to estimate a Mineral Resource
in the target areas, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The Exploration Targets are based on extensive historical mining and drilling data and resource estimates,
extrapolated into poorly tested areas where very wide-spaced previous drilling shows the structures do persist
at depth, in places at similar grades. Previous drill holes, spaced several hundred metres apart, returned
Figure 22: Long sections looking west of the two main mineralised structures within the Wiluna Mining Centre, showing
total endowment (produced gold plus current resource), historical intercepts and the Exploration Targets.
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Wiluna Mining | Annual Report 2021
EXPLORATION TARGETS (continued)
varying results but are considered too broad-spaced to have properly tested for high-grade shoots that
contain the bulk of the ounces at the Wiluna Mining Centre.
In line with the Company’s major ongoing resource and reserve development program, drilling and geophysical
work is planned over the next 1 to 5 years to systematically test these targets.
In February 2021, the Company completed the acquisition of 48km of seismic traverse lines across the Wiluna
Mining Centre. The main objective of the survey was to map to a depth of 2.5km the gold structures and
the geological architecture that hosts high-grade mineralisation; this survey depth extends well beyond the
currently defined resource that is situated mainly from surface to 600m and at its deepest point is currently
defined to only 1.2km below surface.
The survey confirmed that prospective large-scale structures at the Wiluna Mining Centre extend well beyond
the current defined Mineral Resource limits. In addition, multiple parallel Wiluna look-alike structures have
been identified that may represent a new camp-scale geological system (Figure 23). Given the success of
these traverse lines in imaging the interpreted gold structures and geological features, the Company plans
to undertake a full-scale three-dimensional seismic survey over the entire Wiluna Mining Centre. The full-
scale three-dimensional survey is intended to identify drilling targets to test the Company’s 5Moz to 7Moz
Exploration Target.
Figure 23: Seismic defines large-scale prospective gold
structures at Wiluna Mining Centre.
Wiluna Mining | Annual Report 2021
41
Resources & Reserves
The statement of Mineral Resources and Ore Reserves presented in this Annual Report has been
produced in accordance with the Australian Securities Exchange (ASX) Listing Rules Chapter 5, 2014,
and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves,
December 2012 (JORC Code).
The information in this Annual Report relating to Mineral Resources and Ore Reserves is based on and fairly
represents information and supporting documentation compiled by Competent Persons (as defined in the
JORC Code). All Competent Persons have sufficient experience relevant to the style of mineralisation and type
of deposit under consideration and to the activity they are undertaking to qualify as a Competent Person.
and Ore Reserves to underpin the in-progress
Sulphide Development Feasibility study. The
resource development drilling was focussed on
infilling Inferred Resource areas and extension
drilling to grow the Mineral Resource at key areas
that will be mined in the next 1 to 5 years. Drilling
has focussed on high-grade mining zones located at
shallow depths and close to existing infrastructure to
deliver lower costs per ounce developed. Therefore,
the Company expects a significant improvement to
Mineral Resources and Ore Reserves when modelling
is completed.
Extensive re-modelling has commenced to update
Mineral Resource based on results from the
unprecedented drilling expenditure at Wiluna.
An updated Mineral Resource Estimate is planned
in the December quarter 2021.
The deposits at the Wiluna Mining Centre are the
primary focus of Wiluna Mining in delivering on
the Wiluna Sulphide Development Plan. Mining
studies are being conducted with the assistance
of external consultants, assessing various mining
options ranging from selective high-grade stoping,
underground bulk mining, open pit methods, or
a combination of these options. In addition to
tabulating the global Mineral Resource, Wiluna
Mining has chosen to report the Mineral Resource
at the Wiluna deposits in separate tables using
cut-offs at 0.4 g/t, 1.0 g/t, and 2.5 g/t Au to provide
transparency to the scale of these deposits that
could be representative of each mining scenario,
whilst initial studies are being finalised.
Gold Mineral Resource Estimate
The Company published its gold Mineral Resource
Estimate in November 2020. The reader is referred
to the ASX announcement dated 5 November 2020
for supporting information. Tables 5,6,7 show the
Mineral Resource depleted for mine production as at
30 June 2021.
The Mineral Resource inventory includes the Wiluna
deposits (Wiluna Mining Centre), Matilda deposits,
Lake Way deposits, and regional deposits, in addition
to existing stockpiles and historical tailings available
for re-treatment.
The Company’s 2021 gold Mineral Resource
Estimate reflects the final mining depletion from
the Williamson pit (Lake Way Mining Centre) and
consequential increase in stockpiles, as well as initial
underground stoping activity in the Golden Age
deposit (at the Wiluna Mining Centre).
Surface mining until February 2021 from the
Williamson pit has reduced the Mineral Resource at
Lake Way by 21% or 56,000 ounces, with 12% of the
residual Mineral Resource remaining in the Measured
category. It should be noted that Williamson ore
constitutes almost 60% of the current Measured
Stockpile with 485,000 tonnes awaiting processing.
Underground extraction in the past 12 months has
centred on the Golden Age free-milling deposit.
Initial stopes in the 800, 854 and 858 Levels have
provided valuable high-grade contributions to the
baseload Williamson pit feed. The small Mineral
Resource reported previously in Golden Age has
reduced by 23% or 6,600 ounces.
Re-modelling of the Moonlight/Squib (Wiluna)
deposits is currently being undertaken following
review of previous estimation parameters. However,
expected changes are not considered material to the
current reported Mineral Resource.
During FY 2021, the Company completed over
112,000 metres of resource development drilling
and is in the process of updating Mineral Resources
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Wiluna Mining | Annual Report 2021
The Mineral Resource for the Wiluna deposits reported at various gold cut-offs is tabulated in Tables 5,6,7.
The Wiluna deposits have been compiled under the Wiluna Mining Centre heading and reported at various
cut-offs due to the ongoing assessment by the Company of various mining options to fully optimise the mining
methods that align with the Company’s Sulphide Development plan.
Table 5: Gold Mineral Resource Summary with Wiluna Mining Centre cut-off > 1.0g/t.
Wiluna Mining Corporation Mineral Resource Summary
TOTAL MINERAL RESOURCES
Measured
Indicated
Inferred
Total 100%
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
0.14
-
0.63
-
0.78
-
0.86
0.86
1.64
5.15
-
1.23
-
1.96
-
0.92
0.92
1.41
24
-
25
49
-
25
25
74
22.66
3.51
0.94
0.13
27.23
3.59
1.51
0.94
0.13
27.23
2,615
170
48
12
2,846
37.27
1.41
3.480
0.16
43.32
2.62
2.43
1.19
2.98
2.50
3,137
110
134
15
3,396
60.07
4.93
5.05
0.28
70.33
TAILINGS & STOCKPILES
33.16
3.03
36.19
63.42
0.57
0.50
0.57
1.72
611
49
660
3,506
-
-
-
-
-
-
-
42.32
-
2.50
-
3,396
33.16
3.89
37.05
107.38
2.99
1.77
1.283
3.02
2.78
0.57
0.59
0.58
2.02
5,776
281
207
28
6,291
611
74
685
6,976
Wiluna Mining Corporation Mineral Resource Summary
TOTAL MINERAL RESOURCES (WILUNA DEPOSITS ONLY)
Measured
Indicated
Inferred
Total 100%
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
0.28
0.14
0.11
2.97
5.15
6.45
27
24
22
38.97
22.66
12.52
2.37
3.59
5.25
2,967
2,615
2,113
66.69
37.27
14.27
1.77
2.62
4.57
3,804
3,137
2,099
105.94
60.07
26.90
2.00
2.99
4.90
6,798
5,776
4,234
Mining
Centre
Wiluna
Matilda
Lake Way
Galaxy
Sub Total
Tailings
Stockpiles
Sub Total
Global Total
Reporting
Cut-Off
g/t Au
0.4
1.0
2.5
Notes Table 5:
1. Mineral Resources are reported inclusive of Ore Reserves.
2.
3.
4.
5.
6.
Tonnes are reported as million tonnes (Mt) and rounded to the
nearest 10,000; gold (Au) ounces are reported as thousands rounded
to the nearest 1,000.
Data is rounded to reflect appropriate precision in the estimate
which may result in apparent summation differences between
tonnes, grade, and contained metal content.
Wiluna Mineral Resource includes deposits within the Wiluna Mining
Centre and the Regent deposit and are reported at a 1g/t Au cut-off.
Matilda Mineral Resource is a summation of 8 separate Matilda
deposits each reported at 0.4g/t Au cut-off within an A$2,900/oz
shell and at 2.5g/t below the pit shell, and the shallow Coles Find
deposit which has been reported at a 0.4g/t Au cut-off.
Lake Way Mineral Resource includes the Carrol, Prior, Williamson
South deposits, and the operating Williamson deposit. Each deposit
has been reported at 0.4g/t Au cut-off within an A$2,900/oz shell
and at 2.5g/t below the pit shell.
7.
Tailings Mineral Resource includes material in Dam C, Dam H, and
backfilled pits at Adelaide, Golden Age, Moonlight, and Squib.
8.
Competent Persons: Graham de la Mare, Marcus Osiejak
Wiluna Mining | Annual Report 2021
43
Table 6: Gold Mineral Resource Summary with Wiluna Mining Centre cut-off > 2.5g/t.
Wiluna Mining Corporation Mineral Resource Summary
TOTAL MINERAL RESOURCES
Mining
Centre
Wiluna
Matilda
Lake Way
Galaxy
Sub Total
Tailings
Stockpiles
Sub Total
Global Total
Reporting
Cut-Off
g/t Au
0.4
1.0
2.5
Measured
Indicated
Inferred
Total 100%
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
0.11
-
0.63
-
0.74
-
0.86
0.86
1.60
6.45
-
1.23
-
1.99
-
0.92
0.92
1.41
22
-
25
-
47
-
25
25
73
12.52
3.51
0.94
0.13
17.10
5.25
1.51
1.61
3.08
4.27
2,113
170
48
12
2,344
14.27
1.41
3.48
0.16
19.32
4.57
2.43
1.19
2.98
3.80
2,099
110
134
15
2,358
TAILINGS & STOCKPILES
33.16
3.03
36.19
53.28
0.57
0.50
0.57
1.75
611
49
660
3,004
-
-
-
-
-
-
-
19.32
-
3.80
-
2,358
26.90
4.93
5.05
0.28
37.16
33.16
3.89
37.05
74.21
4.90
1.77
1.28
3.02
3.98
0.57
0.59
0.58
2.28
4,234
281
207
28
4,750
611
74
685
5,435
Wiluna Mining Corporation Mineral Resource Summary
TOTAL MINERAL RESOURCES (WILUNA DEPOSITS ONLY)
Measured
Indicated
Inferred
Total 100%
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
0.28
0.14
0.11
2.97
5.15
6.45
27
24
22
38.97
22.66
12.52
2.37
3.59
5.25
2,967
2,615
2,113
66.69
37.27
14.27
1.77
2.62
4.57
3,804
3,137
2,099
105.94
60.07
26.90
2.00
2.99
4.90
6,798
5,776
4,234
Notes for Table 6 as for Table5, with the exception that Wiluna Mineral
Resource includes deposits within the Wiluna Mining Centre and the
Regent deposit reported above a 2.5g/t Au cut-off.
Table 7: Gold Mineral Resource Summary with Wiluna Mining Centre cut-off > 0.4g/t.
Wiluna Mining Corporation Mineral Resource Summary
TOTAL MINERAL RESOURCES
Mining
Centre
Wiluna
Matilda
Lake Way
Galaxy
Sub Total
Tailings
Stockpiles
Sub Total
Global Total
Reporting
Cut-Off
g/t Au
0.4
1.0
2.5
Measured
Indicated
Inferred
Total 100%
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
0.28
-
0.63
-
0.91
-
0.86
0.86
1.78
2.97
-
1.23
-
1.76
0.92
0.92
1.35
27
-
25
-
52-
25
25
77
38.97
3.51
0.94
0.13
43.54
2.37
1.51
1.61
3.08
2.28
2,967
170
48
12
3,198
66.69
1.41
3.48
0.16
71.74
1.77
2.43
1.19
2.98
1.76
3,804
110
134
15
105.94
4.93
5.05
0.28
4,063
116.19
TAILINGS & STOCKPILES
33.16
3.03
36.19
79.73
0.57
0.50
0.57
1.51
611
49
660
3,858
-
-
-
-
-
-
-
71.74
-
1.76
-
4,063
33.16
3.89
37.05
153.25
2.00
1.77
1.28
3.02
1.96
0.57
0.59
0.58
1.62
6,798
281
207
28
7,313
611
74
685
7,999
Wiluna Mining Corporation Mineral Resource Summary
TOTAL MINERAL RESOURCES (WILUNA DEPOSITS ONLY)
Measured
Indicated
Inferred
Total 100%
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
Mt
g/t Au Koz Au
0.28
0.14
0.11
2.97
5.15
6.45
27
24
22
38.97
22.66
12.52
2.37
3.59
5.25
2,967
2,615
2,113
66.69
37.27
14.27
1.77
2.62
4.57
3,804
3,137
2,099
105.94
60.07
26.90
2.00
2.99
4.90
6,798
5,776
4,234
Notes for Table 7 as for Table5, with the exception that Wiluna Mineral
Resource includes deposits within the Wiluna Mining Centre and the
Regent deposit reported above a 0.4 g/t Au cut-off.
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Wiluna Mining | Annual Report 2021
Gold Ore Reserve Estimate
The Company published its gold Ore Reserves in
March 2021 (refer ASX release 16 March 2021).
The reader is referred to this ASX announcement
for supporting information. Table 8 shows the
Ore Reserve depleted for mine production as at
30 June 2021.
The 2020 financial year saw Wiluna Mining transition
from the mining of surface free milling deposits
to predominately underground operations. With
the completion of mining at the Williamson pit and
the establishment of the underground Sulphide
Development plan to establish ore for the initial
steppingstone Stage 1 Sulphide processing plant.
Whilst continuing to mine the free-milling Golden
Age deposit, underground development is focused
initially in the top 600 vertical metres in the Bulletin,
Happy Jack, and Essex sulphide zones. These areas
are dewatered and close to existing decline access
leading to low cost, low risk production. Production
from these readily available areas will underpin the
staged sulphide development and provide early
access to future production areas as the ongoing
resource drilling program targets Inferred Resource
areas for conversion to Indicated and Measured
Resource categories.
Updating mine designs and development schedules
based on the new resource models has commenced
and will culminate in the release of an Ore Reserve
update and mine plan, as part of the Sulphide Stage
Two Feasibility Study in the March quarter 2022.
Table 8: 2020 Ore Reserve (depleted as at 30 June 2021) Summary
Wiluna Mining Corporation 2020 Ore Reserve (Depleted to 30 June 2021) Summary
DEPLETED OPEN PIT RESERVES
Proved
Probable
Total 100%
Mt
g/t Au
Koz Au
Mt
g/t Au
Koz Au
Mt
g/t Au
Koz Au
-
0.20
0.68
-
0.88
-
1.80
0.97
-
1.16
-
11.8
21.0
-
32.8
-
0.24
-
31.64
31.88
-
2.28
-
0.57
0.58
-
17.4
-
578.9
596.3
-
0.44
0.68
31.64
32.76
-
2.06
0.97
0.57
0.60
-
29.2
21.0
578.9
629.1
Mt
Proved
g/t Au
Koz Au
DEPLETED UNDERGROUND RESERVES
Probable
g/t Au
Koz Au
Mt
-
0.13
-
-
-
0.13
-
5.12
-
-
-
5.12
-
20.7
-
-
-
20.7
-
0.51
1.98
0.80
0.92
4.21
-
4.47
4.50
4.59
5.50
4.73
-
72.9
286.1
117.9
162.8
639.7
Mt
Proved
g/t Au
Koz Au
DEPLETED UNDERGROUND RESERVES
Probable
g/t Au
Koz Au
Mt
Total 100%
g/t Au
Mt
Koz Au
-
0.63
1.98
0.80
0.92
4.33
-
4.60
4.50
4.59
5.50
4.74
-
93.6
286.1
117.9
162.8
660.4
Total 100%
g/t Au
Mt
Koz Au
1.01
1.65
53.5
36.08
1.07
1,236.0
37.09
1.08
1,289.5
Mining
Centre
Williamson
Wiluna1
Stockpiles
Wiltails2
Sub Total
Mining
Centre
Golden Age
East West3
Bulletin4
Happy Jack5
Burgundy6
Sub Total
Mining
Centre
Total
Explanatory Notes:
1. Wiluna open pit mining centre includes reserves from Golden Age and Squib open pit mining areas.
2.
Wiltails Ore Reserve includes reclaimed tailings material in Tailings Storage Facilities C, H and Western Extension and backfilled pits at Adelaide,
Golden Age, Moonlight and Squib
3. East West underground mining centre includes reserves from East West and Calvert underground mining areas.
4. Bulletin underground mining centre includes reserves from Bulletin Upper/Lower, Woodley and Henry V underground mining areas.
5. Happy Jack underground mining centre includes reserves from Happy Jack North/Central and Essex underground mining areas.
6. Burgundy underground mining centre includes reserves from Burgundy and Baldrick underground mining areas.
7.
Tonnes are reported as million tonnes (Mt) and rounded to the nearest 10,000; grade reported in grams per tonne (g/t) to the nearest hundredth;
gold (Au) ounces are reported as thousands rounded to the nearest 100.
Wiluna Mining | Annual Report 2021
45
Depletion of the Open Pit Ore Reserves
consisted of the mining of the remaining 0.41 Mt
@ 1.60g/t for 21.0 koz contained in the Williamson
pit and processing of 0.10 Mt @ 2.81g/t for 8.65
kozs of stockpile material. Extraction of Golden Age
underground material is not represented in the
depleted Ore Reserve as economic mineralisation
was mined outside of the JORC Compliant Mineral
Resource and was therefore not included within the
reported 2020 Mineral Resource and Ore Reserve
statements.
Minimal development of the Bulletin resource area,
for the purpose of establishing underground stope
production, has been incorporated into the depletion
table, however the quantity of this ore is insignificant
(2,773 t @ 3.43 g/t for 306 ozs), resulting in no
change in the reported table as at 30 June 2021
owing to rounding error.
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of Exploration Results, Mineral Results, Mineral
Resources and Ore Reserves’. Graham de la Mare
consents to the inclusion in this announcement of
statements based on this information in the form
and context in which it appears.
The information in the report to which this
statement is attached that relates to gold Mineral
Resources for the Matilda, Galaxy and WilTails
Mining Centres is based on information compiled
or reviewed by Mr Marcus Osiejak, a Competent
Person who is a Member of the Australian Institute
of Mining and Metallurgy. Marcus Osiejak was a
fulltime employee of Wiluna Mining Corporation
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 Results, Mineral
Resources and Ore Reserves’. Marcus Osiejak
consents to the inclusion in this announcement of
statements based on this information in the form
and context in which it appears.
46
Wiluna Mining | Annual Report 2021
Forward Looking Statements
This announcement includes certain statements
that may be deemed ‘forward looking statements’.
All statements that refer to any future production,
Resources or Reserves, exploration results
and events or production that Wiluna Mining
Corporation Ltd expects to occur are forward
looking statements. Although the Company believes
that the expectations in those forward looking
statements are based upon reasonable assumptions,
such statements are not a guarantee of future
performance and actual results or developments
may differ materially from the outcomes. This may
be due to several factors, including market prices,
exploration and exploitation success, and the
continued availability of capital and financing, plus
general economic, market or business conditions.
Investors are cautioned that any such statements are
not guarantees of future performance, and actual
results or performance may differ materially from
those projected in the forward looking statements.
The Company does not assume any obligation to
update or revise its forward looking statements,
whether as a result of new information, future
events or otherwise.
Competent Persons Statement:
The information contained in the report that
relates to Exploration Targets and Exploration
Results at the Matilda Wiluna Gold Operation
(‘Operation’) is based on information compiled
or reviewed by Mr Cain Fogarty, who is a fulltime
employee of the Company. Mr Fogarty is a Member
of the Australian Institute of Geoscientists and
has sufficient experience which is relevant to the
style of mineralisation and type of deposit under
consideration and to the activity which is 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 Fogarty has given
consent to the inclusion in the report of the matters
based on this information in the form and context in
which it appears.
The information in the report to which this
statement is attached that relates to gold Mineral
Resources for the Wiluna, Lake Way and Regent
Mining Centres is based on information compiled
or reviewed by Mr Graham de la Mare, a Competent
Person who is a Fellow of the Australian Institute
of Geoscientists. Graham de la Mare was a fulltime
employee of Wiluna Mining Corporation 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
Wiluna Mining | Annual Report 2021
47
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Competent Persons Statement:
Ore Reserves
The information in the report to which this
statement is attached that relates to Surface
Ore Reserves for the Williamson and Wiluna
Mining Centre, as well as surface stockpiles and
tailings retreatment (Wiltails project) is based on
information compiled or reviewed by Mr Andrew
Hutson, a Competent Person who is a Fellow of
the Australian Institute of Mining and Metallurgy
(AusIMM Member No. 920705). Andrew is a full-time
employee of Mining Consultancy, Mining Plus Pty
Ltd 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 Results, Mineral
Resources and Ore Reserves’. Andrew consents to
the inclusion in this announcement of statements
based on this information in the form and context in
which it appears.
The information in the report to which this
statement is attached that relates to Underground
Ore Reserves for the Wiluna Mining Centres is based
on information compiled or reviewed by Mr Glenn
Van Vlemen, a Competent Person who is a Member
of the Australian Institute of Mining and Metallurgy
(AusIMM Member No. 109265). Glenn was a full-time
employee of Mining Consultancy, Mining Plus Pty
Ltd 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 Results, Mineral
Resources and Ore Reserves’. Glenn consents to the
inclusion in this announcement of statements based
on this information in the form and context in which
it appears.
48
Wiluna Mining | Annual Report 2021
Corporate, People
and ESG
significantly advance an aggressive development
profile.
•
•
Equity raises during the year totalled
$63,586,505.
Key investment activities during the year
included the commencement of the Stage 1
Development, with concentrator construction
now 90% complete, underground mine
development well advanced and the Resource /
Reserve drilling for Stage 2 Feasibility due to be
completed by August 2021 and the Feasibility
Study itself completed in Q1 CY 2022.
Position and Performance
•
Cash & bullion at 30 June 2021 was $58.7m
comprised cash of $54.1m, and gold bullion on
hand with a market value of $4.7m (Mar’21:
$10.7m).
•
•
•
Net debt at 30 June 2021 was $1.4m (Mar’21:
$3.6m net cash).
At 30-06-21 gold hedging contracts in place with
Mercuria were 162,500oz @ ~A$2,427/oz by 31-
May-25, with mark-to-market position of $5.9m.
In June, the Company drew down on a Term Loan
with Mercuria for US$42 million. The Tranche 2
loan has a 48-month tenor, with a grace period
of 6 months (during which the Company will pay
only the interest component) before monthly
repayments commence for the remaining term
of the loan. The loan interest cost will be LIBOR
+ 9.5%. The package included 159,000oz of gold
hedging @ US$1,820.30/oz, maturing over the
term of the loan. The loan and hedging facilities
are secured. The Tranche 1 Gold Prepaid Swap
was fully repaid on 29 July 2021.
•
With continuing improvements in operating
performance, and new proceeds from debt
and equity transactions, the Company was able
to continue to improve its balance sheet and
Table 9: Summary Financial Performance & Position
Summary Financial Performance & Position
Revenue from gold & silver sales
Gross profit from operations
Cash & bullion1
(Net debt) / net cash & bullion
Net cash inflows from operating activities
Net cash used in investing activities
Gold production (ounces)
Gold sales price achieved (A$/oz)
All-in sustaining cost (A$/oz)
1. Bullion includes gold bullion on hand valued at the prevailing spot gold price on 30 June.
Jun-21
$’M
Jun-20
$’M
Change
(%)
131
21
59
-1
34
-99
51,552
2,629
1,794
127
1
11
11
14
-43
61,885
2,131
1,950
3%
2000%
436%
N/A
143%
130%
-17%
23%
-8%
Wiluna Mining | Annual Report 2021
49
Table 10: Quarterly Cashflow Summary
Quarterly Cash Flows
Cash flows from operations
Gold Sales Revenue at Spot
Operating Costs
Net Operating Cash Flows
Net Corporate/Admin
Net Interest Expense
Realised Treasury Gain/(Loss)
Working Capital Movements
Net Operating Cash Flows
Investing Activities
Open Pit Pre-production Mining
Underground Pre-production Mining
Site Administration pre-production
Property, Plant & Equipment
Geology & Studies
Aquisitions/Sale of Assets
Financing Activities
Net Proceeds from Equity issued
Debt Drawdowns, net of fees
Debt Principal Repayments
Repayment of lease liabilities relating to Right of Use Assets
Other
Net Cash Flows
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
Gold Bullion
Closing Cash & Bullion
Sept 2020
(A$000)
Dec 2020
(A$000)
Mar 2021
(A$000)
Jun 2021
(A$000)
TYD
(A$000)
30,903
(27,730)
3,174
(1,463)
(653)
(1,052)
(6,133)
(6,126)
(299)
(2,125)
-
(325)
(8,339)
(141)
-
21,206
(3,525)
(2,060)
66
(1,668)
8,904
7,236
5,949
13,186
35,934
(23,757)
12,177
(1,737)
(554)
901
(2,822)
7,965
(396)
(8,537)
-
(3,847)
(5,795)
(367)
21,375
690
(5,307)
(2,060)
7
3,730
7,236
10,965
4,146
15,111
29,634
(20,140)
9,494
(1,116)
(454)
4,192
12,395
24,510
-
(10,511)
-
(8,940)
(7,272)
-
4,913
282
(5,385)
(2,107)
512
(3,999)
10,965
6,967
3,724
10,691
30,940
(13,242)
17,698
(1,358)
(761)
1,847
(9,892)
7,533
-
(20,269)
(2,274)
(14,304)
(5,346)
(227)
34,347
55,609
(5,507)
(1,699)
(753)
47,110
6,967
54,077
4,651
58,728
127,411
(84,868)
42,543
(5,674)
(2,422)
5,887
(6,451)
33,882
(695)
(41,442)
(2,274)
(27,416)
(26,752)
(735)
60,635
77,788
(19,724)
(7,927)
(167)
45,173
8,904
54,077
4,651
58,728
UK Dual listing update
During the year the Company advanced its
investigation into dual listing on the London Stock
Exchange main Board. At this stage, subject to
conditions being favourable to list, the Company
intends to dual list on the LSE by the end of FY 2022.
Responsible Mining-Safety
The Company is pleased to report that it
maintained its high safety standards and that there
were no major accidents or incidents at site for the
quarter. The 12-month TRIFR for the site was 5.0.
With such diverse activities taking place on the
site, safety is constantly in focus. The Company is
pleased to report that there were no major accidents
at the site for the year. The 12-month LTIFR for
the site was 4.8.
During the year, the Company continued to
implement substantial measures to ensure the
safety of all of its personnel, contractors,
suppliers and community in response to COVID-19.
We are pleased to report that there were no
COVID-19 incidents at site or at the Perth office
during the year or subsequently to the year end.
The Company will continue to maintain these
measures and will closely monitor the situation
at both the site and Perth office for as long as
the pandemic continues. We can report that
despite these measures, the result of the impact
of the virus on the Group’s operations has
been minimal.
Table 11: Safety Metrics for the Financial Year
12 Months
FAI
76
MTI
3
RWI
0
LTI
5
Total
84
AIFR
84
TRIFR
5
LTIFR
4.8
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Wiluna Mining | Annual Report 2021
Wiluna Mining | Annual Report 2021
5151
Sustainability
E N V I R O N M E N T A L , S O C I A L
& G O V E R N A N C E
20 2 1
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52
Contents
ESG Framework
Our Values
Ethical Conduct
Understanding Impacts
Supply Chain
Safety and Health
Human Rights and Conflict
Labour Rights
Working with Communities
Environmental Stewardship
Biodiversity, Land Use and Mine Closure
1
2
3
4
5
6
7
8
9
10 Water, Energy, and Climate Change
ESG Framework
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Our Vision is to build a respected mining company that
provides superior earnings and sustainable capital growth by
arranging both skill and capital in manner that compliments
the risk reward profile of our shareholders.
Wiluna Mining | Annual Report 2021 53
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Our Goals
Striving towards good
industry practice in
Environmental, Social and
Governance (ESG) will help Wiluna
Mining align with its Values to:
Our Values
Reduce costs
Preserve resources (regenerative capacity)
Enhance reputation & trust
Differentiate from others
Attract quality employees
Satisfy customer needs
Meet stakeholder expectations (incl. civil society)
Collaborative engagement with Regulators
Attract capital investment
Capitalise on new opportunities
Demonstrate transparency.
Courage
Tenacity
Perseverance
Innovation
Teamwork
Transparency
Compassion
Figure 1 Wiluna Mining Values
Wiluna Mining refers to the Responsible Gold Mining Principles (RGMP) of the World Gold Council as a
framework which guides the industry towards Good International Industry Practice (GIIP) in ESG.
Wiluna Mining | Annual Report 2021
54
We have evaluated the RGMP and prioritised our
efforts to align with the it. Not all of the matters
prescribed by these principles are relevant to Wiluna
Mining, nor do we strive towards comprehensive
alignment. Instead, we refer to the RGMP and other
industry codes for insight into our application of GIIP.
The ESG matters detailed in this report will be of
interest to our employees, customers, supply chain
and partners, local communities, government and
civil society. We also recognise the importance of
detailing ESG matters which may be material to
our creation of value.
By way of example, Wiluna Mining has
developed standards and protocols which align
to the requirements of ISO, the International
Organisation for Standardisation. However, the
company is not pursuing certification against ISO
standards at present.
ESG matters are integrated within our management
of the business and some are cross referenced or
detailed elsewhere in this report. Wiluna Mining
reports on ESG and its performance in general
alignment with the 10 Responsible Gold Mining
Principles. Like other codes for the resources
sector, the RGMP refers to good practice which may
contribute to the Sustainable Development Goals
(SDG) of the United Nations.
Some companies in the resources sector,
undertake public reporting on ESG performance,
with reference to the Global Reporting Initiative, or
GRI. The World Economic Forum (WEF) has adapted
the GRI and performance indicators from other
bodies to develop generic indicators. Wiluna Mining
has detailed its performance in alignment to some of
these performance indicators and where these
may also support the UN - SDGs.
Our trained emergency
responders personify
WMC values of
courage, tenacity,
perseverance,
innovation, teamwork,
transparency and
compassion.
Part of our rationale to align our ESG reporting
framework to the RGMP is in consideration of
‘Material Topics’ outlined by the GRI.
Sections and Commitments of the RGMP
accommodate material topics of interest to
gold-mining stakeholders. More is said on this in
Understanding Impacts.
Material topics may also have ‘boundaries’ in area;
in cause; or involvement. Our report provides some
boundaries, or context for the material topics and
stakeholders related to :
•
ESG Information integrity/control
Permitting
Communities of Interest in ‘Lands’
or the environment
Shareholding
•
•
Social Licence to Operate
• Customers or supply chain
• Mining industry peers
•
•
• Operational interruption/Project continuity
• Minor recurring issues
This is our first report to systematically cover
ESG (material topics) as the building of our ESG
framework progresses. We have presented the data
as records avail and with practicality of effort. In our
future reports we will strive to present targets and
other KPIs.
Figure 24: Expecting the unexpected.
Wiluna Mining | Annual Report 2021 Figure 25: Responsible Gold Mining Principles (WGC) - Generalised
1. Ethical conduct
Conduct business with integrity and absolute
opposition to corruption.
2. Understanding
impacts
Engage with stakeholders and implement management
systems to understand and manage impacts, realise
opportunities and provide redress.
3. Supply chain
Suppliers to conduct businesses ethically
and responsibly.
4. Safety and health
Protect and promote OHS of employees and
contractors as the highest priority and encourage
reporting of unsafe work.
5. Human rights
and conflict
Respect human rights of the workforce and
Communities of Interest.
6. Labour rights
Employees and contractors treated with respect,
free of discrimination or abusive labour practices.
7. Working with
communities
Advance socio-economics in Communities of Interest
with dignity and respect.
8. Environmental
stewardship
Ensure environmental responsibility is core to
the business.
9. Biodiversity,
land use and mine
closure
Protect fragile ecosystems, critical habitats and
endangered species from damage and plan for
responsible mine closure.
10. Water, energy,
and climate change
Improve efficiency of water and energy use,
recognising the climate change and water constraints
may risk the Social Licence.
55
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Wiluna Mining | Annual Report 2021
56
1. Ethical Conduct
The 2021-Corporate Governance Statement is found on our website and details the committees and
competencies of the members of the WMC Board and executives with respect to ESG.
An incentive scheme is in place (short and long-term) for the leadership team and with KPIs including
safety performance.
During the reporting period, Non-Executive Director,
Sara Kelly and executives, convened a Forum
and Charter to report to the Board, on company
developments in ESG.
We revised the Code of Conduct (Code). We sought
to accommodate the matters prescribed by the
RGMP and cross matched our approach to other
companies which mine gold.
The Code remains unchanged in reflecting our vision
to build a respected mining company and commits
us to conduct business with integrity and absolute
opposition to corruption. During the reporting
period no incidents of corruption were reported.
We refreshed our company leaders on the Code
at our Strategy Workshop in April 2021. Teams
at the Wiluna Mining Operation have also been
reacquainted with the Code and policies found on
our website, intranet and General Induction.
Table 12: Wiluna Mining – Economic Contributions
Indictor/Metric
Total Economic Contribution
Income tax
Witholding tax
Fringe Benefits Tax
Payroll Tax
GST-Unrecovered (Indirect Tax)
State Royalty
Non-state Royalty
Employee Salaries & Benefits
Superannuation
Rates
Rent
Levies (incl. MRF)
Community Support & Donations
Permits & Licences
Vehicle Registrations
Goods & Services in country
2021
A$’000
214,312
-
-
79
1,222
94
319
493
26,978
2,350
217
219
324
153
452
17
181,394
2020
A$’000
191,668
-
-
40
1,184
89
1,334
1,859
19,864
1,780
348
267
5
151
531
7
164,209
The Code applies to all directors, officers,
employees, consultants, and contractors of Wiluna
Mining (personnel).
This Code also applies, as far as is reasonably
achievable, to our service providers, suppliers, and
third-party contractors. To this end it serves as a
Code of Conduct for our supply chain.
The Code overarches and integrates the Polices,
Management Systems and Procedures (‘Protocols’)
Figure 26: Economic Contributions 2020-2021
of Wiluna Mining. Human Rights; and Social
Responsibility Policies have also been rolled out and
are embraced by the Code.
As part of the training to all parties on the Code,
accessibility to the Whistleblower process was
reiterated. The Code notes the Whistleblower Policy
may apply to matters ranging from allegations
of corruption, human rights violations by the
company or in its supply chain; and grievances
from communities of interest, personnel, or about
environmental management.
The economic contribution of Wiluna Mining is
detailed in the table to the left and for 2021 above.
It lists the contributions often reported in
jurisdictions where the Extractive Industries
Transparency Initiative (EITI) is adopted. WMC is a
sole entity absent of parent or subsidiary bodies to
which any transfer payments might be made.
Wiluna Mining is a member of AMEC, the Association
of Mining and Exploration Companies. AMEC has an
advocacy role on ESG, amongst other things.
Wiluna Mining | Annual Report 2021 2. Understanding Impacts
WMC is progressing with staged development of
its operation as we have detailed elsewhere:
•
STAGE 1 is approved by government to build and
operate a sulphide circuit for the comminution,
flotation, shipment and export of gold
concentrate:
o
o
Refurbishment and development of
headings for underground mining are
detailed in the Mining Proposal.
Leaching the ‘flotation tail’; reprocessing
earlier tailings (‘Wiltails’); and increasing the
capacity of TSF K, both pending government.
STAGE 2 will increase capacity of the sulphide
circuit as in the statutory Mining Proposal.
Both Stages 1 and 2 will be co-located with
existing facilities for mining and mineral-
processing; and therefore, well within the
existing disturbances to the landscape. As such,
it is envisaged there will be no additional, nor
material changes in discharges or environmental
impacts from this development.
The operation and development stages are
about 1km from the nearest residence.
Environmental surveys have continued in the
reporting period. No critically endangered, nor
rare species of flora or fauna, occur in the vicinity
of existing or the staged development
described here.
•
•
•
•
Operation and interactions with mobile equipment
present high risks. Fitness for work and fatigue are
also high risk factors.
We have yet to identify any ESG risks to the company
or others, which might have a materially adverse
impact on our continued operation.
At our Strategy Workshop in 2021 we asked
the Management Team to rank ESG issues which
they foresee being material topics for stakeholders
and for comparison with our own priorities.
These material topics in ESG align with the
RGMP and are charted for environmental issues
in Figure 34.
Near Wiluna, our ‘Communities of Interest’ or
directly-involved stakeholders include land-
connected people, i.e. the Martu, as traditional
custodians of the land, pastoralists and residents
in and near town.
Indirectly-involved stakeholders have varying
interests and influence in our operations. These
stakeholders might include our employees, investors,
our supply chain and customers, government, civil
society and the wider community.
Given our management team has gauged the
interest and influence of our stakeholders, we plan
Lightning is a familiar
risk to us all but we
must be prepared and
precautionary.
57
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Wiluna Mining | Annual Report 2021
58
2. Understanding Impacts (continued)
to next survey the views of our stakeholders to
calibrate our priorities in ESG.
The WMC Board has an Audit and Risk Sub-
committee. It covers, sustainability risks:
We will resolve grievances related to our work
as arising, in a fair, accessible, effective, & timely
manner. Anyone raising such grievances in good
faith, will not face discrimination or retaliation, as a
result of raising their concerns.
Any party with a grievance is free to contact us
openly for the matter to be considered, action taken
and feedback provided. At any point in this process,
or from the outset, a grievance may be addressed in
confidence or according to the Whistleblower Policy
(WMC website).
•
Effectiveness of community relationships
• Protection of cultural heritage
• Workplace safety
• Good practice in storage of tailings
• Management of hazardous chemicals
•
Control of exploration, mining and
mineral processing
• Use of explosives.
Figure 27: Our Priorities and Anticipated Views of Stakeholders on Environment
Wiluna Mining | Annual Report 2021 59
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GRES leads the build
of our concentrate
plant and aligns well
with our ESG goals.
Figure 28: Construction for Supply Certainty
3. Supply Chain
Supply-chain participants are required to
follow the WMC Code of Conduct, in so far as it
relates to their supply of goods, or services to
the company.
We are reviewing the terms and conditions of
supply-chain contracts, to improve our tracking and
reporting of contract performance, notably with
respect to ESG.
Some of our principal suppliers and service
providers, which are state based and regionally
focussed include:
• Drilling companies
• Underground mining contractors
• Construction contractors
•
Suppliers of reagents e.g. sodium cyanide.
In our supply chain, there are, however, few
small to medium enterprises (SMEs) at a local level.
At present some of that work has focussed on
building and maintenance of roads.
We recognise the benefits of helping SMEs to
establish and build their capacity locally. We will
describe our efforts to support this in our next public
report. We aim to support meaningful employment
for local Aboriginal people and build capacity for air
and road logistics.
WMC has allowed a licenced ‘Prospector’ to recover
gold from areas being sterilised for the placement
and storage of mining wastes. Amateur prosecting
is not allowed on WMC leaseholdings. Terms and
conditions for the management of health, safety and
environment form part of the contract template for
this work. Other conditions have been included for:
Respect of Human Rights and prevention of
•
Modern Slavery.
Notification and controls to protect Chance
Finds of cultural heritage.
Our mining contractor relies on responsible
suppliers of explosives. We appreciate the initiative
of these suppliers to raise awareness of their
personnel to be precautionary in the use of their
products. Notably this includes the protection
of landscape features of cultural importance to
Aboriginal people.
•
• Preventing the holding or use of mercury on site.
•
Precautions on the mining or processing of ore
which may contain harmful levels of mercury,
arsenic or asbestiform minerals.
These standard terms and conditions will apply to
new contracts for operational activities such as:
•
•
The receival and Toll Treatment of ore.
Exploration and excavation.
Wiluna Mining | Annual Report 2021
60
4. Safety & Health
Our Health and Safety Policy is found on our website and intranet.
Wiluna Mining Corporation has a clear objective to continually improve its Workplace Health and
Safety performance through risk management, training, supervision, and consultation with employees.
These processes are described by our management plan.
Visible Leadership from our managers and
supervisors occurs in daily and weekly meetings with
teams or informally with people in their workplaces.
Periodically our executives speak with teams on
performance updates and ESG initiatives.
The operation maintains an emergency response
plan and trains for scenarios that may impact us
onsite or outside the operation. Our Awareness
and Preparedness for Emergencies at a Local Level
includes liaison and mutual aid agreements with:
Throughout the reporting period the challenges of
COVID 19 for our workforce were shared with the
mining fraternity across Western Australia.
We have raised awareness of all people coming
to site to be of good health and precautionary of
symptoms. As eventuated during the year, lock
down and restrictions to travel or work occurred,
and government directives were followed. These
mostly related to testing, hygiene practices, social
distancing, and wearing of masks.
•
•
The Department of Fire and Emergency Services
(DFES); and
Other mining companies including Northern Star,
ACAP Mining and Blue Cap Mining.
Our contingency plans also balance the need for
site-based personnel to be flexible with their work
rosters and be restricted in their travel, but also help
us maintain continuous operation as far as possible.
Our Employees and those of site contractors join in
this training. Supply-chain providers also maintain
preparedness for use of highways to and from site.
During the year our emergency responders and
Contractors (MLG, MACA and Byrnecut) supported
Government Emergency Services to assist people in
accidents on public roads and for vehicle recovery.
Figure 29: Visible Leadership
In our work it is
important to coach
and care to reaffirm
our headings and
standards.
Wiluna Mining | Annual Report 2021 4. Safety & Health (continued)
Figure 30: Emergency Responders in Training
Our emergency
responders are
drawn from a range
of occupations and
workplaces across site
and must be prepared
for many eventualities.
No employees or supply-chain personnel brought
COVID 19 to site nor to our nearby Communities
of Interest. Our precautionary approach for the
wellness of our employees and the disruption to
their routines saw absenteeism rise from 1.7 to 3.4
days per employee per year. This compared well to
a rate of about 8 days per employee per year for all
industry sectors in a survey by Synergy Health.
Occupational health risks for our employees relate
to dust and chemical exposures. Employees working
in our ‘Gold Room’ and mineral testing laboratory
are protected by ventilation systems, their use
of personal protective equipment (PPE), regular
monitoring of dust levels and health tests. No
adverse health impacts were recorded during the
year for these employees.
Our partnership with the Ngangganawili Aboriginal
Health Service (NAHS) in Wiluna helps us and the
community have access to a range of medical
services and treatment and in many cases return to
work rather than needing travel to regional centres.
In this way only three employees needed transport
for medical aid with the Royal Flying Doctor Service
(RFDS). WMC provided $100 K to support NAHS and
$15K to the RFDS during the year.
Workers compensation insurance supported
the costs of treatment and rehabilitation for six
personnel injured during the year.
At the time of writing, three of them were
rehabilitating. Their injuries included lower back pain,
a strained shoulder and strained ankle ligaments.
Two personnel injured in the 2019-2020 reporting
period were completing their rehabilitation from
injuries separately related to traversing uneven
ground; and a rock fall.
No regulatory penalties were issued against the
company for safety or health-related matters during
the reporting period.
The ability to recognise and support people
challenged in their emotional wellbeing or mental
health is very much a concern for employees at
remote mine sites and for local Aboriginal people
who may be disadvantaged or marginalised.
A Government training initiative for responders
to people with mental health challenges was
supported by Wiluna Mining ($6,600), together with
contributions from other companies. The awareness
and skills learned will develop the capabilities of
responders providing first aid.
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Wiluna Mining | Annual Report 2021
62
4. Safety & Health (continued)
The schedule of the training programme extended
into the 2021-2022 reporting period.
To drive improvement in safety performance in
the 2021-2022 the operation will focus on:
• Actions from High Potential incidents
• Visible Leadership contacts
•
•
Shared Inspection of workplaces
Training for Incident Investigations.
Our participants came from all departments and
our Underground Mining Contractor, Byrnecut.
We immediately noticed the interest and care of
the group in training sessions and plan to continue
running the course. In our workplaces, awareness
themes such as ‘RUOK’ day offer a further reminder
of care for others.
Participants in the mental-health course included
mine site employees, local police, respected
community members and health workers. The course
was run by Blackbird Culture. The course followed
leaning objectives in the Aboriginal and Torres Strait
Islander - Mental Health First Aid Manual.
Safety Performance Indicators are compiled and used by Workplace Safety Representatives and workplace
teams and in management reporting. Year on year performance is compared in the following table.
Table 13: Safety Performance Indicators
Indicator
Workplace Inspection - Managers / Supervisors
(Field Level Risk Assessments) Take 5
Workplace Hazards
Notifiable (High Potential) Incidents
Fitness for Work Tests (not including Blood Alcohol)
Fatalities
Recordable Injuries &/or occupational ill-health
Medical Evacuations
Absenteeism (days per employee)
*Total Recordable Injury Frequency Rate - TRIFR
Lost Time - LTIFR
Restricted Work - RWIFR
Medical Treatment - MTIFR
Permits & Licences
Vehicle Registrations
Goods & Services in contry
* Frequency Rates per million-man hours; 12 MMMA
No regulatory penalties were issued for safety or health during the reporting period.
2019-2020
281
17620
159
20
595
0
2
1
1.7
2
2.04
0
3.2
452
17
181,394
2020-2021
170
20739
183
23
426
0
5
3
3.3
5
4.8
0
3.1
531
7
164,209
Wiluna Mining | Annual Report 2021
5. Human Rights & Conflict
5.1 Policy
During the reporting period, our Human Rights Policy
was adopted by the Board of Directors and signed by
the Executive Chair.
The Policy formalises our recognition of the
‘Universal Declaration of Human Rights’ (UDHR) and
the International Labour Organisation – ‘Declaration
on Fundamental Principles and Rights at Work’.
Company executives spoke on the Policy and
the prevention of Modern Slavery, at our Annual
Strategy Workshop and brought these matters to
the attention of workgroups. These matters are also
referenced in our General Induction.
5.2 Prevention of Modern Slavery
We have established processes and worked in
accordance with the Commonwealth Modern
Slavery Act (2018). Our Modern Slavery Statement
for the reporting period 2020-2021 is on the register
(www.modernslaveryregister.gov.au).
Our initial focus was on our major suppliers and
service providers through questionnaires.
During the reporting period we did not discover any
allegations, or incidents of Modern Slavery regarding
our operation or in our supply chain.
Suppliers are chosen from a range of criteria, for
provision of services or materials. Their risks are
assessed for safety environment, capability and
commerciality. Modern Slavery risks have been
added to these criteria. We refer to the ‘Global
Slavery Index’ which ranks the risk profiles of
countries from which their goods or services
may be supplied.
Figure 31: Whistleblower Policy at
www.wilunamining.com.au /about / policies
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Wiluna Mining | Annual Report 2021
New Starters By Gender & Age Group During FY 2021
Age Group
F
M
Total
18-29
30-39
40-49
50-59
60-69
70-79
Total
18-29
30-39
40-49
50-59
60-69
70-79
Total
18-29
30-39
40-49
50-59
60-69
70-79
Total
3
5
3
3
14
6
4
4
4
1
4
9
5
3
2
23
28
15
18
12
1
97
17
31
25
29
17
2
28
38
28
32
17
1
26
33
18
21
12
1
111
23
35
29
33
18
2
32
47
33
35
19
1
23
144
167
Total Employees By Gender & Age Group at 30/6/21
Age Group Women
Men
Total
Leavers By gender & Age Group During FY 2021
Age Group
F
M
Total
64
6. Labour Rights
19
121
140
6.1 Numbers and rate of employment
WMC reports as required, to the Workplace Gender Equality Agency, of the Australian Government, on
composition of the workforce. Numbers of women and men in the age groups of employees at WMC are
show in the following chart.
Figure 32: Gender of Employee Age Groups
70-79
60-69
50-59
40-49
30-39
18-29
0
10
20
30
Women Men
6.2 Pay Equity
Our recruitment and remuneration are based on merit, qualifications and experience, without
discrimination over gender.
We will consider more work on the gender balance in our workforce, potentially through flexible
working arrangements and rosters.
6.3 Remuneration
Our Remuneration Policy and framework were endorsed by shareholders at the Annual General Meeting.
Industry benchmarks are used to set remuneration for employees who are engaged under ‘individual
contracts’. The WMC - Human Rights Policy affirms the right of employees and contractors to associate
and bargain collectively. All employees are paid above the basic (living) wage.
6.4 Preventing discrimination and bullying
Our Code of Conduct and our Diversity Policy prescribe acceptable behaviours and engagement
with employees.
Employees are reminded through Induction and other workplace communications, they may raise
grievances to management, in confidence or according to the Whistleblower Policy.
Wiluna Mining | Annual Report 2021 65
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Figure 33: Participatory Planning Tour.
Trish Botha, our
Community Liaison
Officer provides
orientation to young
local people keen to
work with us.
7. Working with Communities
7.1 Social Responsibility Policy
During the reporting period, our Social Responsibility
Policy was adopted by the Board of Directors and
signed by the Executive Chair.
This policy sets out the commitments to underpin
the Social License of Wiluna Mining to explore and
develop, operate, or close mines.
This policy is contextualised by our Social
Responsibility Plan of which notable aspects include:
•
•
•
Leadership, Governance & Collaboration
Stakeholder Engagement
Social Impact & Risk Assessment
• Cultural Heritage & Important Sites
•
Employment, Procurement & Business Support
• Grievance Management.
We will train our employees with accountabilities for
enacting the plan and raise awareness of the plan
through our General Induction.
Indigenous Land Use Agreements are in place,
importantly with Tarlka Matuwa Piarku Aboriginal
Corporation (TMPAC). It is the Registered Native Title
Body Corporate to hold the native title rights and
interests of the Wiluna Native Title Holders.
REGENERATIVE
CAPACITY
Policy
Commitments
CLOSE
Lasting Benefit of
Programmes
EXPLORE
Map Stakeholders
OPERATE & SUPPORT
Train Employ Procure
EVALUATE
Respect Consult Disclose
IMPLEMENT
Assess Manage Risks
Figure 41: Social Responsibility Plan
Wiluna Mining | Annual Report 2021
66
7. Working with Communities
(continued)
We will continue to liaise with TMPAC on consent
and making agreements for future exploration and
mining activity. Opportunities for collaborative-
environmental monitoring, financial support for
community development and recruitment should
complement this process.
The Relationship Committee between TMPAC
and WMC representatives is a forum to respect
community sentiment, resolve grievances and to
make decisions. We briefed the committee on our
environmental performance and updates on changes
to mining and mineral processing at site.
Areas bounding cultural heritage sites as identified
from prior consultation and surveys are flagged
within our Geographical information System (GIS).
Our protocol to permit ground disturbance requires
Murlpirrmarra hosts Wiluna team
work to be at safe respecful distance from these
areas. Where items or evidence of unknown cultural
heritage are encountered, Chance Finds should not
be disturbed, until an assessment by competent
professionals is made and actions taken.
Gold-ore bodies at site have been mined by several
generations in the modern era. Mining will continue
to focus underground and no existing communities
are envisaged to be disrupted, nor need to relocate.
Our Community Liaison Officer Trish Botha, engages
with local Martu people. This programme extends
over respect for Traditional Owners, supporting the
interests of women in participatory planning and
building-capacity, for meaningful jobs, training
and procurement.
Figure 34: Murlpirrmarra Programmes.
Wiluna Mining | Annual Report 2021 7. Working with Communities
(continued)
As we build relationships in the local community
we are listening actively to their interest in the
operation and to provide feedback ensure we act on
their requests, suggestions, concerns or complaints.
A challenge for us is in the employment of local-
Aboriginal people. The Wiluna Training Centre is
a Public Private Partnership supported by some
regional mining companies and we provided funding
of $18k.
We will continue our support for its vocational
training effort to develop a group of local people
who have skills to work at our operation. In turn
we will need to fairly allow for their cultural
commitments and orientation to the workplace.
WMC is proud to continue as a major sponsor of
Murlpirrmarra Connection. As a not-for-profit
organisation, Murlpirrmarra Connection provides
support to Aboriginal youth in the remote
communities of Wiluna, Leonora and surrounding
regions in Western Australia.
Outcomes on support for the communities
and education are found at www.murlpirrmarra.
com.au. During the reporting period we hosted
parents and young players from Perth in Wiluna for
the cultural experience (sport carnival)organised
by Murlpirrmarra Connection. The Wiluna students
team was hosted in Perth for a reciprocal
match and to attend the ‘Indigenous Round’ of
national football.
WMC supported a range of community interests as
shown in the table to the right.
WMC, Contractors and site employees raised $4,000
at a ‘quiz night’ for the school in Wiluna. A pizza oven
was also donated to the school.
Both WMC and Byrnecut supported the training of
trade apprentices at site. We will provide an update
for the next reporting period on efforts to:
•
•
•
Include Martu people in our support of small
business enterprises and to diversify the local
economy;
Offer casual employment to university
undergraduates for work experience; and
Rebuild capacity of the Wiluna Training Centre
and development of trainees to whom we can
provide employment or work experience.
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
Health
Training
Education
Health R&D
Emergency
Services
(RFDS)
Charity
2020
2021
Figure 35: Support of Community Interests.
Figure 36: Support for the School at Wiluna.
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8. Environmental Stewardship
8.1 Monitor and manage impacts
Our Environmental Policy is found on the company
website and intranet. We are committed to
protection of the environment. The Operation
maintains an Environmental Management Plan (EMP)
to monitor, avoid, minimise or mitigate impacts
on the environment. It takes into consideration
the intent of ISO 14001:2015 Environmental
Management Systems - Requirements with guidance
for use. A risk-based approach is used to prioritise
environmental aspects for attention. Certification is
not a consideration.
The WA - Environmental Protection Authority
provides ‘Stewardship’ on five Principles related to:
8.2 Management of Non-Mining
Wastes
The EPA Principle regarding Waste Minimisation
expects all reasonable and practicable measures
be taken to minimise the generation of waste and
discharge into the environment. To this end we have
increased our efforts in the control of wastes and
improved housekeeping in work areas.
Employees and contractors have joined in a major
clean-up. Many recoverable wastes were found
scattered across site.
A sustained effort is now in play having implemented
a waste management plan which covers:
1. The Precautionary Principle
2.
Intergenerational Equity
3. Biodiversity and Ecological Integrity
4.
Incentive Mechanisms
5. Waste Minimisation.
Environmental risk assessment for our project
designs and plans have been reinforced with regard
to the Precautionary Principle to avoid serious
or irreversible harm from our Operation. Where
we have more definitive evaluations of risk and
protection measures in our work, we will obtain
both internal and regulatory approval. Stakeholder
engagement is also envisaged.
The conservation of biological diversity and
ecological integrity is built into our internal
permitting for ground disturbance. It is also
needed for regulatory perming of new areas, as we
are obliged to protect critical habitats and show
application of the mitigation hierarchy. Our Mine
Closure Plan will strive to establish modified habitats
on landforms for wildlife corridors and continuity of
some endemic flora.
• Guidance, training and awareness
• Holding departments accountable
• Regular inspections and audit
•
•
Signage and demarcation of transfer stations for
waste segregation and recovery, prevention of
spillage and diverting waste from landfill
Revising contracts for transport and receival of
waste for recycling or recovery.
Management has championed the waste
management plan to success.
Waste-transfer stations encourage the re-use and
re-purposing of materials, e.g. clean pallets and
intermediate bulk containers. Pride in the workplace
is now realised as the backlog of wastes has been
cleaned up. Employees can now see obvious and
disorderly placement of wastes that need attention.
Notable Inventories of wastes recovered include:
• Waste oil or grease drummed and wrapped
•
Scrap high density polyethylene pipe (65.3t)
• Deregistered aluminium fire extinguishers
Employees also made a difference, collecting
‘containers for change’ (on drink containers at the
site mess) to donate $2,300 to the RFDS.
In our next report we will provide an update on
consolidating wastes at site for transport.
Single-use plastics remain a challenge for us.
Disposable containers for meals remain in use.
In this reporting period about 3,500 single-use
containers per week were dispensed for meals.
Single-use containers for beverages and plastic
cutlery were also used. We will provide an update
on single use plastics in our next report.
Wiluna Mining | Annual Report 2021 8. Environmental Stewardship
(continued)
Figure 37: Clean-up and Recovery Campaign.
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8. Environmental Stewardship
(continued)
8.3 Tailings and Mining-Waste
Management
Large scale facilities at the Operation are mapped in
our Geographical Information System and include:
•
•
•
Prominent landforms for open pit mining,
placement of waste rock and storage of tailings.
Some portals for underground mining are ‘in pit’
and less prominent.
Infrastructure for fuel and reagent storage,
power generation, mineral processing, mine
services and accommodations.
Tailings Storage Facilities (TSF) and waste rock
landforms (WRL) that span the history of mining
at Wiluna.
Some TSFs have been fully reclaimed for recovery
of incremental gold value. These tailings were
redeposited in newer facilities. Other storages are
covered by extensive waste-rock landforms.
Tailings have been discharged to (inactive) open
pits. Above-ground TSFs are larger and include the
operational TSF K (Figure 46). All supernatant
waters from operational TSFs are contained and
returned to the mineral processing circuit.
We are compiling the reports and records of
older TSFs. Our focus is on the above-ground
TSFs. For the next reporting period we will
present our reviews and efforts to better
understand risks posed by these facilities to
people or the environment.
Figure 38: Tailings Storage Facilities.
Wiluna Mining | Annual Report 2021 8. Environmental Stewardship
(continued)
Our supplier of
reagent cyanide is
competent, contingent
and supportive in
protection of people
and the environment.
It will align to the Principles of the International
Code for the Management of Cyanide (ICMC).
Management may authorise operational conditions
and facilities at variance to the ICMC based on risk
to people and the environment.
8.5 Noise and Dust
With a nominal buffer zone of about 1 km from the
Operation to Communities of Interest, there is a low
risk of impact or nuisance to them from dust, noise
or vibration related to underground blasting. During
the reporting period, underground blasting occurred
for exploration/development headings, however, no
complaints were received from Communities
of Interest.
Figure 39: Awareness and Preparedness at a Local Level.
The base and inner walls of TSF K have been
reworked with lower-permeability materials to
minimise seepage in the design approved by
environmental and mining regulators. The signature
of seepage water disperses naturally in the
hypersaline groundwater of the underlying regolith.
Supernatant water from TSF K is incorporated as
‘make-up’ water in mineral processing. Monitor bores
around the Operation are sampled to check for
potential impacts from the TSFs.
In our future reports we will provide updates on
efforts to minimise the amount of waste rock
brought to surface – to manage costs, GHG emissions
and potential impacts of storage above ground.
We will consider use of tailings for paste fill
underground with the added benefit of optimising
TSF storage capacity above ground.
8.4 Cyanide and
Hazardous Materials
Reagent sodium cyanide is both manufactured
and transported to site under ICMC certification.
An internal standard is being prepared for the
management of sodium cyanide at the Operation.
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Wiluna Mining | Annual Report 2021
72
Water monitoring
near Lake Way is
ongoing to check for
impacts and to show
compliance.
Figure 40: Surface Water Monitoring.
9. Biodiversity, Land Use
and Mine Closure
9.1 Land use and
ecological sensitivity
The current Mining Proposal for DMIRS,
indicates critical habitats are not at risk, from the
Operation. Priority species recorded in the region
are not in areas of proposed disturbance. It has not
been necessary to create environmental offsets for
potential impacts on critical habitats.
Note for completeness, our exploration and
mining activities are far and remote from World
Heritage Sites in Western Australia, or the
Northern Territory.
Future exploration and environmental studies are
planned for groundwater supplies. Stygofauna may
be recorded in aquifers and control of ecological
risks will be undertaken as arising.
There is a closed loop between the Mineral-
Processing Plant and TSFK for the re-use of water
decanted from the TSF. An excess of saline water,
from underground or open-pit mining voids, may be
discharged to the salt-lake environment of Lake Way.
Lake sediments nearer the discharge zone
show some elements are at variance to the levels
in the broader environment. There are natural
influences on water quality, as the lake waters
dry out between rainfall/inundation events.
Aquatic invertebrates and diatoms are monitored
and no clear relationship to discharge-water quality
is evident. Fringing vegetation communities near the
lake are also monitored and no operational impacts
are discernible. Pronounced changes due to sporadic
rainfall are evident. Threatened or Priority flora were
not impacted by the discharge.
Previous ecological baseline studies have recorded
migratory and nomadic-bird species after rainfall-
inundation at Lake Way.
9.2 Mine Closure
The operation sits within a large array of
exploration, mining and pending leases, in total
1591 km2. Inside this array, 1003 ha are subject
to operational activity, or were disturbed by past
activity. Mine closure activities, such as the
reshaping of landforms and revegetation are
underway on a further 389 Ha.
The footprint areas of notable landforms, or
‘domains’ to be addressed for mine closure include:
•
•
180 ha – Waste Rock Landforms
277 ha – Tailings Storage Facilities
Wiluna Mining | Annual Report 2021 9. Biodiversity, Land Use
and Mine Closure (continued)
•
•
•
•
155 ha – Open Pits
189 ha - Trafficable areas
74 ha – Infrastructure
78 ha – Exploration.
The operation maintains a Mine Closure Plan (MCP)
as required by comprehensive guidelines of DMIRS.
Importantly this plan covers within its structure:
•
•
Stakeholder consultation
Land use and closure outcomes
• Risks to effective closure
•
•
Implementation scenarios and activities
Financial provision for closure.
Given the remoteness of the operation and the
small population of Wiluna, stability of landforms;
protection of stakeholders; and the environment will
be key considerations in planning for closure.
As the mining plan develops it will enable
stakeholders to consider definitive-post closure
outcomes from which they may benefit.
The Operation is supported by GIS experts to map
in detail, the areas where rehabilitation has begun.
These areas have been tallied and agreed with
DMIRS from which it sets the fee payable to the
Mining Rehabilitation Fund (MRF).
Wiluna Mining also estimates the cost of an
internal liability which aligns to the scheduling of
rehabilitation activities before and after the end of
mining and mineral processing.
All types of land disturbance are classified into
‘domains’, e.g. waste-rock landforms; or TSFs.
Land-reclamation experts support the Operation in
determining chemical and physical properties of soils
and mining-waste materials to determine:
•
Suitability or hostility to plant growth
• Resistance to erosion
•
•
Prevention of acid and metalliferous drainage
(AMD)
Slopes and drainage structures landforms.
Figure 41: Soil Erosion Tests.
Erosion and rehabilitation
experts tested mixtures of
rock and soil to find the best
combination for capping and
revegetating landforms.
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Wiluna Mining | Annual Report 2021
74
10. Water, Energy and
Climate Change
rocks. In the area, a more substantive aquifer is
hosted by palaeo-river channel sediments, shallow
overlapping alluvial fans and calcrete drainages.
At a regional scale, groundwater is predominantly
saline to hypersaline. Fresh to marginal-salinity
groundwater occurs in some alluvial fans and
calcrete and is likely due to more pronounced
recharge from rainfall and runoff.
A Hydrogeological review for the Operation
indicated sporadic and high rainfall events likely
enhanced recharge to local aquifers. However,
lower-overall recharge occurred from 2019 to the
end of the reporting period. Even though rainfall is
sporadic, Bureau of Meteorology records indicate
a very low but slight increase in rainfall in past
decades. However, this is not a forecast of
rainfall variability.
Figure 42: Decadic Rainfall Trend for WA.
10.1 Water
The Operation is permitted to:
•
•
•
•
Draw approximately 1.5 GL/yr of groundwater
targeting low chloride content from the Eastern
Borefield for use in mineral processing.
Draw approximately 0.15 GL/yr of low-salinity
water from the Caledonian open pit for
specific demands in mineral processing, for
accommodations and personnel. Water was
not drawn from this source during the
reporting period.
Discharge approximately 2.1 GL of hypersaline
water from dewatering open pits and
underground mines in operational areas.
The water is a blend of groundwater inflow and
incident rainfall to the open pits. The water is
discharged to Lake Way.
Treat accommodations wastewaters in
Facultative lagoons and allow infiltration to
ground. A Bio-Reactor is being considered
as an alternative for treatment of wastewater.
Water quality of this discharge would then be
suitable for its reuse in mineral processing.
Table 14: Water Draw and Discharge.
Water Movement (GL)
Eastern Borefield
Abstraction (Fresh)
2019
- 2020
2020
- 2021
0.99
0.91
Dewatering Discharge
to Lake Way
1.12
0.91
During the reporting period a hydrological
assessment of the Operational footprint was
completed. It showed areas at risk of flooding from
extreme rainfall and the works or control measures
to implement for protection of people and assets.
Water management structures were designed
to divert rainfall runoff around and away from
operational areas. These works have been
implemented and help to reduce the sediment
load in runoff leaving operational areas.
Groundwater at the Wiluna Operation occurs in the
oxidised regolith of crystalline and metamorphic
Wiluna Mining | Annual Report 2021 10. Water, Energy and
Climate Change (continued)
Use of some thickened and cemented tailings for
underground ‘paste fill’ is being investigated to
partially offset future water demand and tailings
discharged to above-ground TSFs.
In consideration of future water demand for the
Operation, groundwater exploration is scheduled to
occur in the next reporting period.
10. 2 Climate and Greenhouse Gas
(GHG) Emissions
Wiluna Mining complies with the National
Greenhouse and Energy Reporting Scheme (NGERS)
to the Commonwealth Government. Scope 1 and
Scope 2 greenhouse and energy figures for recent
years are provided in Table 16.
Table 15: GHG Emissions and Energy Use.
Reporting Period
2018
- 2019
2019
- 2020
GHG Emissions (t CO2-e)
Scope 1
Scope 2
Emission Intensity
(tCO2 e per Au oz)
51,713
54,562
51
32
0.79
0.88
Total Scope 1 & 2
51,764
54,594
Energy (GJ)
Consumed
986,646
1,035,559
Net Consumed
853,957
888,881
Produced
132,689
146,678
Scope 1 – Greenhouse gas (GHG) emissions at the
Operation, relate in the main, to combustion of
diesel and gas fuels, for generation of electrical
power, use of mining equipment, other vehicles and
fugitive emissions.
Scope 2 GHG emissions principally relate to the
consumption of purchased electricity at the Perth
office. Scope 3 GHG emissions are beyond the
tracking and accounting systems for the company at
present. In many cases these emissions are reported
by the relevant parties in our value chain.
NGERS estimates were in preparation at the
time of printing this ESG report, but in 2020/21:
• manning levels at site increased.
•
•
•
•
The Mineral Processing Plant continued to
operate at a lower rate of throughput.
Civil works to prepare site occurred, and
construction began for the Mineral Processing
Plant to extract gold concentrate from ore.
Mining development underground and
dewatering of open pits occurred.
Exploration drilling was less active, open pit
mining stopped, but the carting of ore to the
Plant was ongoing.
The changes in emission intensity of GHG reported
here, reflects both the overall emissions of GHG and
the variability of gold production. Both factors were
influenced by the transition from open pit mining,
to processing of only stockpiled ore and then to
underground development.
Oxides of nitrogen or sulphur and particulates
are emitted from fuel combustion in mobile
equipment and power generation. These are
tallied for the National Pollutant Inventory.
These emissions are likely to disperse sufficiently
without impact on residents in the town of Wiluna
or nearby residents.
The electrical-power station at site is not
connected to a regional-electricity grid. Electrical
power is provided and operated by Contract Power
Group (CPG), a service provider to Wiluna Mining.
The electrical generators are powered by natural
gas or diesel.
In an arrangement with CPG, the power station will
be reconfigured by 2023:
•
•
•
Some of the diesel powered generation will be
displaced by natural-gas powered units.
Nominally 2 MW of Battery Energy Storage
(BES) will be installed to reduce diesel-powered
‘spinning reserve’ (Figure 51).
Reducing the intensity of GHG emissions per unit
of electrical power generation.
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Wiluna Mining | Annual Report 2021
76
Wiluna Mining | Annual Report 2021
10. Water, Energy and
Climate Change (continued)
Figure 51: Typical layout of a BES unit for site.
Figure 43: SODAR helps optimize
design height for wind turbines.
Wiluna Mining is evaluating renewable-energy
sources for the Operation. This will be input to
feasibility studies for growth of the Operation.
These studies and financial hurdles must be
considered to forecast the partial decarbonisation
of energy supply to the Operation.
Wind turbines are used to generate electrical
power by other mining operations in the region.
To estimate the potential application of wind
turbines at Wiluna, we have begun to evaluate
the annualised variability of wind speed and
directions aloft. A SODAR as indicated by the setup
shown in (Figure 52) is in place. SODAR, or in full-
sonic detection and ranging, is a meteorological
instrument which determines wind speed and
direction by interpreting the reflection of sound in
layers up to several hundred metres aloft.
Wiluna Mining is watching the trials and
application of electrical power in mining equipment
and particularly for underground operations.
A reduction in exhaust-emissions underground,
may reduce the energy demand for ventilation.
The Operation is supporting trials by
manufacturers of electrically-powered drills for
use underground. The Operation might otherwise
take a precautionary view which ranges from
being an ‘early adopter’ or be part of the
’early majority.’
Wiluna Mining | Annual Report 2021 Financial
Report
30 June 2021
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
AUDITOR INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
78
87
95
96
97
98
99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
100
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL INFORMATION
137
138
143
Wiluna Mining | Annual Report 2021
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Wiluna Mining | Annual Report 2021
Directors’ Report
Your directors submit the financial report of Wiluna Mining Corporation Limited (‘Wiluna’ or the ‘Company’) and its
controlled entities (the ‘Group’) for the year ended 30 June 2021.
DIRECTORS
The names of Directors who held office during or since the end of the financial year are as follows:
Milan Jerkovic
B.App.Sc (Geol), GDip (Mining), GDip (Mineral Economics), FAusImm MAICD
Executive Chair
Mr Jerkovic is a geologist with over 35 years’ experience
in the mining industry including resource evaluation,
operations, financing, acquisition, project development
and general management. Mr Jerkovic is also principal of
the Xavier Group. He was previously the CEO of Straits
Resources Limited, has held positions with WMC, BHP,
Nord Pacific, Hargraves, Tritton and Straits Asia and was the
founding chair of Straits Asia Resources.
Appointed:
27 November 2015
Committee memberships:
Nil
Other listed board memberships:
Nil
Previous listed board memberships:
Geopacific Resources Limited, Metals X Limited
Interest in shares at the date of this report:
1,566,701
Interest in options at the date of this report:
208,664
Greg Fitzgerald
BBus, CA
Non-executive Director (Lead Independent Director)
Mr Fitzgerald is a Chartered Accountant with more than
30 years’ of gold mining and resources related experience.
He has extensive executive experience in managing finance
and administrative matters for listed companies including
holding the positions of Chief Financial Officer and
Company Secretary for an ASX 200 gold mining company
for more than 15 years.
Appointed:
19 February 2018
Committee memberships:
Audit & Risk (Chair), Remuneration & Nomination (Chair)
Other listed board memberships:
Nil
Previous listed board memberships:
Nil for the last three years
Interest in shares at the date of this report:
None
Interest in options at the date of this report:
None
Wiluna Mining | Annual Report 2021
79
Directors’ Report (continued)
DIRECTORS (continued)
Anthony James
BEng, AWASM, FAusImm
Non-executive Director
Mr James is a mining engineer with considerable
operational, new project development and corporate
experience including roles as Managing Director of Carbine
Resources Ltd, Atherton Resources Ltd and Mutiny
Gold Ltd. At Atherton Resources, Mr James achieved
a favourable outcome for shareholders following the
takeover by Auctus Minerals. At Mutiny Gold, Mr James led
the implementation of a revised development strategy for
the Deflector copper-gold deposit in Western Australia that
resulted in the successful merger of Mutiny Gold and Doray
Minerals Ltd.
Prior to this, Mr James held a number of senior executive
positions with international gold producer Alacer Gold
Corporation following the merger of Anatolia Minerals and
Avoca Resources in 2011. As the Chief Operations Officer
of Avoca Resources, he played a key role in Avoca’s initial
growth and success, leading the feasibility, development
and operations of the Trident Underground Mine and the
Higginsville Gold Operations.
Appointed:
22 June 2018
Resigned:
31 July 2021
Committee memberships:
Audit & Risk, Remuneration & Nomination
Other listed board memberships:
Carbine Resources Limited
Apollo Consolidated Limited
Galena Mining
Limited, Medallion Metals Limited
Previous listed board memberships:
Nil for the last three years
Interest in shares at the date of this report:
None
Interest in options at the date of this report:
None
Colin Jones
BSc
Non-executive Director
Mr Jones is a highly experienced Mining Executive with
almost 40 years’ experience as a mining, exploration and
consulting geologist. He has experience in several different
geological environments and has worked in a number of
countries on producing mines, as part of feasibility teams
and as an explorationist. He has acted as Independent
Engineer on behalf of major international resource
financing institutions and banks and as Technical Adviser to
private equity resource funds in Australia and Canada.
Appointed:
21 July 2021
Committee memberships:
Remuneration & Nomination
Other listed board memberships:
Newrange Gold, Eurotin Inc
Previous listed board memberships:
Geodrill Limited
Interest in shares at the date of this report:
None
Interest in options at the date of this report:
None
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Wiluna Mining | Annual Report 2021
Directors’ Report (continued)
DIRECTORS (continued)
Sara Kelly
LLB, BComm
Non-executive Director
Ms Kelly has significant transactional and industry
experience having worked in private practice, as a
corporate advisor, and as in-house counsel. Ms Kelly
regularly acts for ASX listed companies and their directors
and officers in relation to capital raisings, recapitalisations
of ASX shells, asset acquisitions and disposals, Corporations
Act and Listing Rules compliance, corporate reconstructions
and insolvency, director’s duties, meeting procedure, as
well as general corporate and commercial advice.
Ms Kelly is a Partner at Edwards Mac Scovell, a boutique
litigation, insolvency and corporate firm based in Perth,
Western Australia.
Appointed:
22 May 2020
Committee memberships:
Audit & Risk, Remuneration & Nomination
Other listed board memberships:
Midas Minerals Limited
Previous listed board memberships:
Ragnar Metals Limited, Homestay Care Limited
Interest in shares at the date of this report:
None
Interest in options at the date of this report:
None
Neil Meadows
B.App.Sc (Metallurgy), M.App.Sc (Metallurgy), GDip (Bus Admin), MAusIMM, Dip AICD
Operations Director
Mr Meadows is a metallurgist with over 30 years experience
in the mining and processing industries. Prior to joining
Wiluna Mining, he worked as Chief Operating Officer for
European Metals Holdings Limited. Mr Meadows’ previous
roles include COO of Karara Mining Ltd, Managing Director
of IMX Resources Ltd, COO of Queensland Nickel Pty Ltd,
and General Manager of Murrin Murrin Operations for
Minara Resources Ltd.
Appointed:
1 December 2019 (previously the Company’s General
Manager of Major Projects and Business Improvement,
until appointment to the Board)
Committee memberships:
Nil
Other listed board memberships:
Nil
Previous listed board memberships:
Nil for the last three years
Interest in shares at the date of this report:
None
Interest in options at the date of this report:
159,231
Wiluna Mining | Annual Report 2021
81
Directors’ Report (continued)
DIRECTORS (continued)
Hansjoerg Plaggemars
Diplom Kaufmann
Non-Executive Director
Mr Plaggemars is an experienced Company Director highly
skilled in corporate finance, corporate strategy, European
and North American Capital markets, and governance. He
has qualifications in Business Administration and has served
on several Boards both on the ASX and in Europe. Mr
Plaggemars is a USA citizen and is based in Germany.
Appointed:
21 July 2021
Committee memberships:
Audit & Risk
Other listed board memberships:
2invest AG
Ming Le Sports AG
Decheng Technology AG i.I.
Gascoyne Resources (WA) Pty Ltd
PNX Metals Limited
4basebio UK Societas
Altech Chemicals Limited
Azure Minerals Limited
South Harz Potash Limited
KIN Mining NL
Altech Advanced Materials AG
Previous listed board memberships:
CARUS AG
Enapter AG
KlickOwn AG
MARNA Beteiligungen AG
4basebio AG
Biofrontera AG
The Grounds Real Estate Development AG
Interest in shares at the date of this report:
None
Interest in options at the date of this report:
None
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Wiluna Mining | Annual Report 2021
Directors’ Report (continued)
DIRECTORS (continued)
Lisa Mitchell
B.Econ, FCPA
Non-executive Director
Ms Mitchell is an experienced Company Director and
Mining and Oil and Gas Executive. Ms Mitchell was born and
raised in Melbourne and has resided in the United Kingdom
for the past 10 years. Ms Mitchell is a FCPA (Aust) and has
significant experience as a CFO, Company Secretary and
Executive Director of several Australian and London listed
companies (across ASX, LSE and AIM bourses). Ms Mitchell’s
strengths include financial management, leadership,
debt and equity raising capabilities, LSE compliance and
M&A. She has significant experience with the LSE (having
worked for former FTSE 250 Ophir Energy plc) and will
bring valuable experience to Wiluna Mining’s upcoming LSE
listing.
Appointed:
1 October 2021
Committee memberships:
Audit & Risk
Other listed board memberships:
San Leon Energy Plc
Pharos Energy Plc
Previous listed board memberships:
Lekoil Ltd
Interest in shares at the date of this report:
58,750 (Spouse)
Interest in options at the date of this report:
None
Daniel Travers
BSc (Hons), FCCA
Company Secretary - appointed 3 May 2019
Mr Travers is a Fellow of the Association of Chartered Certified Accountants with over 10 years’ experience in the
administration and accounting of publicly listed companies following significant public practice experience. Mr Travers
holds undergraduate degrees with honours in both Mathematics and Accounting and is an employee of Endeavour
Corporate, which specialises in the provision of company secretarial and accounting services to ASX listed entities in the
mining and exploration industry.
Wiluna Mining | Annual Report 2021
83
Directors’ Report (continued)
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were:
•
•
production of gold from the Wiluna Gold Operation; and
gold exploration and development.
REVIEW AND RESULTS OF OPERATIONS
Gold production during the year was 51,552oz at an AISC of A$1,794/oz. In FY21 the Company generated positive cash flows
from operations of $34m, and over the same period significant net investment of $99m was made by the Company, including
into site-based capital infrastructure (primarily the new Stage 1 concentrator), as well as underground development and
preproduction mining activities at the Wiluna Mining Centre. These major investing activities will sustain and create substantial
value as the Company pursues its Sulphide Development, having delivered 66% completion on the construction of the
concentrator, and 6,274m of underground development and rehabilitation through the Company’s underground sulphide
and free milling (Golden Age) deposits as at 30 June 2021.
Financial Results
The profit after tax for the financial year was $20,404,000 (2020: $14,250,000). The Group’s net assets at the end of the year
were $220,152,000 (2020: $138,537,000). The FY20 result included Other Income of $24m, most of which was due to the sale
of non-core assets during the year, namely the Lake Way Transaction with Salt Lake Potash Ltd.
Gold sold during the year was 50,522oz @ A$2,627/oz. There were 162,500oz of forward gold sales contracts in place at
30 June 2021, at an average price of $2,421/oz, maturing by 31 May 2025.
Growth
The Company continued to advance its Sulphide Development during the year, having made significant progress on the
Stage 1 processing plant construction (66% complete as at 30 June 2021), underground development and rehabilitation
(6,274m completed during FY21), and relevant study programs, for a net investment figure of $99m over FY21. The Company
will continue to invest in the Wiluna operation to develop it to a stage where it is at the optimum size to exploit its geological
scale and complexity, returning significant cashflows.
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The Company’s Sulphide Development involves a staged upscaling of operations to production of ~250kozpa over three years,
with Stage 1 (currently underway and fully funded, with concentrator commissioning expected during Q2 FY2022) targeting
mining of ~750ktpa of underground ore for the production of ~120kozpa of gold doré and gold in concentrate. A Feasibility
Study into Stage 2 is currently underway (expected to be completed to a bankable level by Q3 FY22), with the conclusions of this
work expected to drive the final shape and size of Stage 2 development activities, and as reported in the FY20 Annual Report,
offtake agreements for 100% of the gold concentrate for the first three years of production have been secured with Trafigura
and London-listed Polymetal Group.
Discovery
During FY21 the drill bit continued to deliver at Wiluna, supporting the Company’s Sulphide Development. The Company
completed 112,428 metres of drilling in FY21 across the Wiluna Mining Operation, delivering numerous high-grade intercepts
within both sulphide and free milling zones, including ‘bonanza-grade’ results in the Happy Jack and East Lode zones, both of
which are initial mining areas in the Company’s Sulphide Development.
The Company also delivered Mineral Resource and Ore Reserve updates during FY21, which led to an increase of 142% in
underground Ore Reserves. Ore Reserves now sit at 37.60Mt at 1.09g/t for 1.32Moz, including the underground Ore Reserve of
4.33Mt at 4.74g/t for 661koz, and total Mineral Resources (utilising 0.4g/t cut-off) now sit at 153.50Mt at 1.63g/t for 8.04Moz,
including a high-grade Resource (utilising 2.5g/t cut-off) at the Wiluna Mining Centre of 26.93Mt at 4.89g/t for 4.24Moz.
Additionally, the Company has reported significant results from its two-dimensional seismic survey program, which was
undertaken to target further high-grade gold discoveries at the Wiluna Mining Centre. Preliminary interpretation of the surveys
data confirmed prospective large-scale structures at the Wiluna Mining Centre, demonstrated that gold structures extend well
beyond the current defined Mineral Resources limits, and highlighted multiple parallel ‘Wiluna look-alike’ structures.
Following the success of the Company’s FY21 drill program, multiple drill rigs are drilling to further infill and grow the large-scale,
high-grade gold system at Wiluna, with the intention to update the Company’s Mineral Resource and Ore Reserve estimates
as part of the Company’s in-progress Stage 2 Feasibility Study, expected to be completed by Q3 FY22. Additionally, given the
success of the two-dimensional seismic survey program, the Company plans to undertake a full-scale three-dimensional seismic
survey over the entire Wiluna Mining Centre, with the goal of identifying drilling targets to test the Company’s 5Moz to 7Moz
Exploration Target.
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
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Directors’ Report (continued)
Production
Gold production for the year was primarily sourced from ore mined at the Williamson pit (~67% of production), complemented
by ore from the Golden Age underground deposit (~15% of production), and ore from the Wiluna and Matilda pits. Planned open
pit mining at Golden Age North Extension has been deferred, to make way for the Company’s Sulphide Development, and open
pit mining ceased at Wiluna in February 2021. During FY21, Tier-1 mining contractor Byrnecut (with whom the Company has
entered into an Alliance Agreement) mobilised at the Wiluna operation and is currently undertaking all underground mining and
development activities on site.
The Company’s performance throughout FY21 was mixed, with H1 and H2 gold production of 26,758oz and 24,795oz at AISC of
A$1,839/oz and A$1,747/oz respectively. While overall gold production of 51,552oz was lower than initial guidance of ~62koz,
primarily due to lower than expected tonnes processed (1.35Mt vs anticipated 1.54Mt, in part due to temporary processing plant
issues) and head grade (1.41g/t vs anticipated 1.52g/t), the Company outperformed on a cost basis, with AISC of A$1,794/oz,
compared to initial guidance of A$1,950/oz, and amassed significant free milling stockpiles which will drive production in the lead
up to concentrator commissioning in FY22. It is also worth noting that metallurgical recoveries at the operation over the year
exceeded expectations.
TABLE 1 – FY21 GOLD PRODUCTION STATISTICS
Mining
Open pit strip ratio
Total ore mined (UG and open pit)
Total mined grade
Total mined contained ounces
Processing
Tonnes processed
Grade processed
Plant recovery
Gold produced
All-in sustaining cost
Units
30 June 2021
30 June 2020
Waste/Ore
1.5
10.3
t
g/t
oz
t
g/t
%
oz
A$/oz
1,669,063
1,429,306
1.3
70,820
1.5
71,148
1,345,945
1,688,291
1.4
85
51,552
1,794
1.4
79
61,885
1,950
Corporate
As at 30 June 2021, the Company had $58.7 million in cash and bullion (cash of $54.1 million, bank guarantees of $0.7 million
and bullion of $3.9 million) (2020: $11.4 million).
Net debt at 30 June 2021 was $1.4 million (2020: net cash $11.1m). Debt as at 30 June 2021 related to secured loans of $57.5
million and finance leases of $2.6 million (2020: debt $0.3m).
The Company is also pursuing a listing on the London Stock Exchange main board, with significant progress made to date, and
completion targeted for Q2 of FY22.
New corporate branding and trading name
On 16 July 2021, the Company announced the change to the ASX code/Ticker from ‘WMX’ to ‘WMC’.
Equity Placements
In December 2020, the Company announced a $24.5m Capital raising via a $22.5m placement and a $2m Share Purchase Plan at
a price of $1.43 per share, which was closed on 15 January 2021.
Additionally, the Company completed a Placement of $7.5m, and a fully underwritten Entitlement Issue of $31.6m at a price of
$1.00 per share. The $39.1m equity issue was closed in May 2021.
Debt financing
On 14 August 2020, Wiluna Mining announced that all documentation concerning a gold prepaid swap financing facility and
gold hedging facility provided by Mercuria had been completed. The $21m prepaid swap proceeds (‘Tranche 1’) were repaid in
full by 29 July 2021 by way of delivering 699oz of gold per month over the 12 month term (699oz were payable as at 30 June
2021). As part of Tranche 1, Mercuria also provided the Company with a secured gold hedging facility for 34,000oz at an average
price of A$2,674/oz maturing over the term of the loan. That hedging facility was delivered in full by 29 July 2021 (3,500oz were
Wiluna Mining | Annual Report 2021 85
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Directors’ Report (continued)
outstanding as at 30 June 2021). The Term Loan and hedging program were secured under a general security arrangement.
On 16 June 2021, the Company announced that the final conditions and documentation for a US$42 million Term Loan
agreement (‘Tranche 2’) with Mercuria had been completed, and the loan was drawn down on 18 June 2021. The Term Loan has
a 48-month tenor, with a grace period of 6 months (during which the Company will only pay interest) followed by equal monthly
repayments thereafter. The interest rate is LIBOR + 9.5%. Tranche 2 was complimented by a gold hedging facility for 159,000oz
priced at US$1,820/oz. The Term Loan and hedging program are secured under a general security arrangement.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
There are no likely developments of which the directors are aware which could significantly affect the results of the Group’s
operations in subsequent financial years not otherwise disclosed in the Principal Activities and Operating and Financial Review or
the Events Subsequent to Reporting Date sections of the Directors’ Report.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend for the 30 June 2021 financial year and no amount has been paid or
declared by way of a dividend to the date of this report.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
EVENTS SUBSEQUENT TO REPORTING DATE
On 21 July 2021, Mr Colin Jones and Mr Hansjoerg Plaggemars were appointed as non-executive directors and on 31 July 2021,
Mr Anthony James retired as non-executive director.
There are no other matters or circumstances that have arisen since the end of the financial year which significantly affected
or could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in
future financial years.
MEETINGS OF DIRECTORS
The number of directors’ meetings held (including meetings of the Committees of the Board) and number of meetings attended
by each of the directors of the Company during the financial year are:
Director
Eligible
Attended
Eligible
Attended
Eligible
Attended
Director’s
meeting
Audit and Risk
Committee
Remuneration and
Nomination Committee
Greg Fitzgerald
Anthony James(i)
Milan Jerkovic
Sara Kelly
Neil Meadows
(i) Mr James resigned on 31 July 2021.
11
11
11
11
11
11
10
11
11
10
3
3
-
3
-
3
3
-
3
-
3
3
-
3
-
3
3
-
3
-
ENVIRONMENTAL ISSUES
The Group is subject to significant environmental regulations under various legislation. The Group aims to ensure that it
complies with the identified regulatory requirements in each jurisdiction in which it operates. The Wiluna Operation is mining
multiple deposits and is planning to mine various other locations. The timing and preparation for mining each of these deposits
is dependent on the reconciled performance of each and the ongoing mine evaluation and planning process. Each time a new
deposit is mined, separate regulatory approvals are required and the timing of this process is continually changing in a fluid mine
planning process. As a direct result of this, at any one time, the formal approval process may still be outstanding at the time
mining commences, which is usual in practice.
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
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Directors’ Report (continued)
OPTIONS
Options on issue at the date of this report:
Grant date
Expiry date
Quoted/Unquoted
Exercise price
11 May 2018
6 December 2018
5 July 2019
26 August 2019
10 July 2020
19 November 2020
2 August 2021
Total
31 December 2021
13 February 2024
30 June 2023
30 June 2023
30 June 2024
30 June 2024
30 June 2025
Unquoted
Unquoted
Unquoted
Unquoted
Unquoted
Unquoted
Unquoted
$0.00
$8.00
$0.00
$0.00
$0.00
$0.00
$0.00
Number
7,661
720,000
513,267
137,748
542,284
183,438
1,507,530
3,611,928
SHARES ISSUED ON THE EXERCISE OF OPTIONS
49,502 shares of the Company were issued during the year ended 30 June 2021 and up to the date of this report on the exercise
of options granted.
INDEMNIFYING OFFICERS AND AUDITORS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001 every Officer, or agent of the
Company shall be indemnified out of the property of the Company against any liability incurred by him in his capacity as Officer
or agent of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in
defending any proceedings, whether civil or criminal. No indemnification has been paid with respect to the Group’s auditor.
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
AUDITOR INDEPENDENCE
A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is attached to
the Director’s Report.
NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as disclosed in the financial statements do not compromise the external
auditor’s independence requirements of the Corporations Act 2001 for the following reasons:
•
•
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of
the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing
or auditing the auditor’s own work, acting in a management or decision-making capacity for the company, acting as
advocate for the company or jointly sharing economic risks and rewards.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF THE
AUDITOR
There are no officers of the company who are former partners of RSM Australia Partners.
ROUNDING
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Report) Instrument 2016/91 and in
accordance with that class order, amounts in the financial statements have been rounded off to the nearest thousand dollars,
or in certain cases, to the nearest dollar.
Wiluna Mining | Annual Report 2021 87
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Remuneration Report (Audited)
This remuneration report outlines the director and executive remuneration arrangements of the Company and the
Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of
this report, Key Management Personnel of the Group are defined as those persons having authority and responsibility
for planning, directing and controlling the major activities of the Company and the Group, including any director
(whether executive or otherwise) of the parent company.
REMUNERATION FRAMEWORK
At the Board’s absolute discretion, the Board, the Executive and Key Management Personnel are eligible to participate in the
incentive arrangements of the Company. The incentive plan focuses the efforts of the executive and management team on
business performance, business sustainability, business growth and long-term value creation. It provides for clear ‘line of sight’
objectives to maximise the effectiveness of the participants’ total incentive awards and facilitates the meaningful accumulation
of Company securities by participants to encourage an ownership mentality which in addition to having a retentive benefit,
also further aligns management interests with those of the Shareholders. The Remuneration Policy, including the incentive
plan, has been tailored to increase goal congruence between Shareholders and executives. Two methods have been applied to
achieve this aim, being the Operations and Growth Incentive Plan (short term) and the Value Creation Plan (long-term) which is
administered under the Company’s Employee Option Plan (‘EOP’).
REMUNERATION FRAMEWORK OVERVIEW
Category
Fixed pay
Incentive pay
Reward pay
Definition of pay category
Element
Purpose
Pay which is linked to the present value or
market rate of the role
Pay for delivering the plan and growth
agenda for the Group which must create
value for shareholders. Incentive pay will
be linked to achievement of ‘line-of-sight’
performance goals.
It reflects ‘pay for performance’
Pay for creating value for shareholders.
Reward pay is linked to shareholder returns.
It reflects ‘pay for results’
Total Fixed
Remuneration (‘TFR’)
Short Term Incentive
(‘STI’)
Pay for meeting role requirements
Incentive for the achievement
of annual objectives.
Incentive for the achievement
of sustained business value.
Long-term Incentive
(‘LTI’)
Reward for performance over
the long-term
The incentive opportunities under the Remuneration Policy contain a maximum amount of Total Incentive Opportunity (‘TIO’),
as shown below:
MAXIMUM TOTAL INCENTIVE OPPORTUNITY AS A PERCENTAGE OF TFR ON AN ANNUAL BASIS
Plan:
Performance period:
Award:
Executives
WMC Ops & Growth
1 year (STI)
Cash
48% p.a.
WMC Value Creation
3 year vest (LTI)
ZEPO’s
20% p.a.
TIO
68% p.a.
The maximum amount of TIO will only be delivered to Directors, the Executive and/or Key Management Personnel if the
highest performance levels for each of the performance hurdles are achieved. The actual value of incentives may be zero if the
performance hurdles are not met.
The Total Annual Remuneration (i.e. TFR + STI + LTI) for the Key Management Personnel has been set at a level that is broadly in
line with the average Total Annual Remuneration for a peer group of Australian based gold miners.
Performance Hurdles
Participation in the incentive opportunities of the Remuneration Policy is based on successful milestone achievements against
the following performance hurdles:
Short Term Incentive (‘STI’) performance metrics (paid in the form of a cash bonus and to ensure goal alignment, are consistent
amongst all the Executive):
Company performance (60%-80%)
Safety measures (Total Reportable Injury Frequency Rate ‘TRIFR’)
•
• Company operating cash flow
• All in sustaining cost per ounce produced
• Production target gold ounces
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
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Remuneration Report (Audited) (continued)
Performance Hurdles (continued)
Individual performance (20%-40%)
•
Individual specific goals and supervisory discretion
Long-term Incentive (‘LTI’) performance metrics (paid in Zero Exercise Price Options (‘ZEPOs’) and to ensure goal alignment,
are consistent amongst all the Executive):
• Performance versus ASX Gold Index (*)
• Reserves increased
• Resources maintained
(*) – the hurdle relating to the performance versus the ASX Gold Index will see 50% of this portion of the ZEPO’s vest if WMC’s
share price outperforms the ASX Gold Index. 100% of this portion of the ZEPOs will vest if the WMC share price outperforms the
ASX Gold Index by at least 50%. The payout will increase on a straight line basis between these two points.
ZEPO’s issued from 1 July 2020 will only have the performance metric of Performance versus ASX Gold Index.
Vesting conditions for LTI performance hurdles will be tested once only at the end of every 3 year measurement period.
Executive Chair Remuneration
Mr Jerkovic’s employment contract is for a 3-year fixed term, beginning 1 July 2020, ending on 30 June 2023.
Effective 1 April 2021, the Executive Chair’s remuneration became as follows:
Total Fixed Remuneration
TFR increased from $420,000pa to $520,000pa. Notice period remains unchanged, that being, effective from 1 July 2020 12
months to be given by the Company in year 1 of the contract, 9 months to be given by the Company in year 2 of the contract and
6 months to be given by the Company in year 3 of the contract. Mr Jerkovic is required to give the Company 3 months’ notice at
any time during the 3 years of the contract.
Short Term Incentives
Up to 48% of fixed remuneration per annum for each year of the contract. Participation in the incentive opportunities of the
Remuneration Policy is based on successful milestone achievements against the following Key Performance Indicators (‘KPI’):
Company KPIs (60%)
Safety measures (Total Reportable Injury Frequency Rate ‘TRIFR’)
•
• Company operating cash flow
• All in sustaining cost per ounce produced
• Production target gold ounces
Individual performance (40%)
•
Individual specific goals and Board’s discretion
Long-term Incentives (‘LTI’)
Of the LTIs expiring on 31 December 2021, 12,500 unquoted ZEPOs were forfeited due to vesting conditions not met and
12,500 unquoted ZEPOs vested, all of which were exercised into shares with a $nil exercise price on 27 July 2021. LTIs expiring on
30 June 2023 remain unchanged, being 25,226 unquoted ZEPOs with a $nil exercise price. Furthermore, at a general meeting of
shareholders on 19 November 2020, shareholders approved the issue of 183,438 ZEPOs with a $nil exercise price to Mr Jerkovic
which are subject to certain performance conditions and expire 30 June 2024.
To align with other Key Management Personnel and the increase in the Executive Chair’s total fixed remuneration, it will be put
to the Company’s shareholders at the 2021 Annual general Meeting that the Executive Chair be issued ZEPO’s with a value equal
to 20% of the increase in Total Fixed Remuneration over the period from 1 April 2021 to the end of Mr Jerkovic’s current contract
on 30 June 2023 (being 50,535 ZEPO’s).
Wiluna Mining | Annual Report 2021
Remuneration Report (Audited) (continued)
VOTING AND COMMENTS MADE AT THE COMPANY’S 2019 ANNUAL
GENERAL MEETING (‘AGM’)
At the 2020 AGM 99.8% of the votes received supported the adoption of the remuneration report for the year ended
30 June 2020. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
KEY MANAGEMENT PERSONNEL
The key management personnel of the Company consists of the following directors and executives:
Directors
Greg Fitzgerald
Anthony James
Milan Jerkovic
Colin Jones
Sara Kelly
Neil Meadows
Hansjoerg Plaggemars
Position
Non-executive Director
Non-executive Director - resigned 31 July 2021
Executive Chair
Non-executive Director - appointed 21 July 2021
Non-executive Director
Operations Director – appointed 1 December 2019
(Previously GM – Major Projects & Business Improvement)
Non-executive Director – appointed 21 July 2021
Key Management Personnel (‘KMP’)
Position
Cain Fogarty
Wayne Foote
Jim Malone
Anthony Rechichi
GM – Geology and Business Development
GM – Major Projects – resigned 18 June 2021
GM – Investor Relations & Communications
Chief Financial Officer
The details of the Key Management Personnel’s remuneration have been set out in the following tables.
REMUNERATION STRUCTURE FOR KEY MANAGEMENT PERSONNEL
Remuneration is based on the following components approved by the Remuneration and Nomination Committee;
• base pay and non-monetary benefits
short-term performance incentives
•
•
long-term performance incentives
• other remuneration such as superannuation and long service leave
Table 1: Contract terms for Key Management Personnel:
Name
Title
Term of
Agreement
Notice Period by
Employee
Notice Period by Company
Termination
benefit
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Greg Fitzgerald
Non-executive Director
Open
Cain Fogarty
Wayne Foote (i)
GM – Geology and
Business Development
GM – Major Projects
Open
Open
Anthony James(ii)
Non-executive Director
Open
Milan Jerkovic
Executive Chair
Commenced
01/07/20
Ends 30/06/23
Colin Jones(iii)
Non-executive Director
Ends 30/06/23
Sara Kelly
Non-executive Director
Open
Jim Malone
Neil Meadows
Hansjoerg
Plaggemars(iii)
Anthony Rechichi
GM – Investor Relations
& Communications
Operations Director
Open
Open
None-executive Director Open
Chief Financial Officer
Open
(i) Resigned on 18 June 2021.
(ii) Resigned on 31 July 2021.
(iii) Appointed 21 July 2021.
Upon resignation
as director
Upon termination as director
n/a
3 months notice
3 months notice
3 months notice
Upon resignation
as director
3 months notice
Upon resignation
as director
Upon resignation
as director
n/a
n/a
n/a
n/a
3 months notice
Upon termination as director
12 months year 1
9 months year 2
6 months year 3
Upon termination as director
n/a
Upon termination as director
n/a
3 months notice
3 months notice
3 months notice
Upon resignation
as director
3 months notice
3 months notice
Upon termination as director
3 months notice
n/a
n/a
n/a
n/a
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
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T
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
92
Remuneration Report (Audited) (continued)
KEY MANAGEMENT PERSONNEL REMUNERATION (continued)
Table 4: Share holdings of key management personnel:
Held at the
start
of the year
Issued on
exercise of
options
Participation
in rights issue
and share
purchase
plan(i)
Acquired on
market
Disposed
Held at the
end of the
year
-
-
1,110,420
-
-
100,000
-
63,000
-
1,273,420
-
-
-
-
-
5,693
-
2,455
-
8,148
-
-
373,781
-
-
-
-
56,352
-
-
-
70,000
-
-
4,307
-
88,193
-
430,133
162,500
-
-
-
-
-
-
-
-
-
-
-
-
1,554,201
-
-
110,000
-
210,000
-
1,874,201
Name
Directors
Greg Fitzgerald
Anthony James
Milan Jerkovic
Sara Kelly
Neil Meadows
Other KMP
Cain Fogarty
Wayne Foote
Jim Malone
Anthony Rechichi
Total
(i) Shares were purchased at the offer issue prices of $1.43 and $1.00 per share.
Wiluna Mining | Annual Report 2021
93
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Remuneration Report (Audited) (continued)
CONSEQUENCES OF PERFORMANCE ON SHAREHOLDER WEALTH
The earnings of the Group for the five years to 30 June 2021 are summarised below:
Sales revenue
Profit/(loss) after income tax
Share price at 30 June
Basic profit/(loss) per share
($’000)
($’000)
$ per share
cents per share
2021
$’000
131,467
20,404
0.93
17.72
2020
$’000
126,562
14,250
1.34(i)
24.43(i)
2019
$’000
102,466
(73,161)
0.011
(4.29)
2018
$’000
118,252
(20,027)
0.07
(2.95)
2017
$’000
47,331
(6,844)
0.28
(2.28)
(i) Note, the company performed a 100:1 share consolidation on 25 May 2020
LOANS TO KEY MANAGEMENT PERSONNEL
There were no loans to key management personnel during the years ended 30 June 2021.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL AND THEIR
RELATED PARTIES
Transactions with
related parties
$’000
Xavier Group Pty Ltd(i)
729
Balances
outstanding
$’000
336
(i) Entity related to Milan Jerkovic, Executive Chair. Mr Jerkovic is an officer and co-owner of Xavier Group Pty Ltd.
All transactions were made on normal commercial terms and conditions and at market rates.
[End of audited Remuneration Report.]
Signed in accordance with a resolution of the Board of Directors pursuant to section 298(2)(a) of the Corporations Act 2001.
Milan Jerkovic
Executive Chair
Perth, 30 August 2021
Wiluna Mining | Annual Report 2021
Auditor Independence Declaration
95
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Wiluna Mining Corporation Limited for the year ended 30
June 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
Any applicable code of professional conduct in relation to the audit.
David Wall
Partner
RSM Australia Partners
Perth, WA
Dated: 30 August 2021
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Consolidated Statement of Profit or Loss and
Other Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2021
Continuing operations
Revenue from gold and silver sales
Cost of production relating to gold sales
Gross profit before depreciation and amortisation
Depreciation and amortisation relating to gold sales
Gross profit from operations
Other income
Administration expenses
Non-capital exploration expenditure
Depreciation of non-mine site assets
Share-based payments
Finance costs
Treasury – realised loss
Treasury – unrealised gain
Other expenses
Profit before income tax expense for the year from continuing operations
Income tax expense
Profit after income tax expense for the year from continuing operations
Other comprehensive income
Total comprehensive profit for the year, net of tax
Basic profit per share attributable to ordinary equity holders of Wiluna Mining
Corporation Limited (cents per share)
Diluted profit per share attributable to ordinary equity holders of Wiluna
Mining Corporation Limited (cents per share)
The accompanying notes form part of these financial statements
Consolidated
Note
2021
$’000
2020
$’000
1
2
2
4
3
3
5
5
3
6
7
7
131,467
(80,267)
51,200
(30,577)
20,623
3,162
(5,094)
(384)
(95)
(145)
(3,395)
(117)
6,576
126,562
(96,528)
30,034
(28,541)
1,493
24,051
(5,559)
(42)
(63)
(456)
(9,278)
(13)
4,117
(727)
-
20,404
-
20,404
14,250
-
14,250
-
-
20,404
14,250
Cents
17.72
17.51
Cents
24.43
24.02
Wiluna Mining | Annual Report 2021 97
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Consolidated Statement of Financial Position
AS AT 30 JUNE 2021
Current assets
Cash and cash equivalents
Gold bullion awaiting settlement
Trade and other receivables
Inventories
Financial assets
Total current assets
Non-current assets
Other receivables
Right of use assets
Plant and equipment
Mine properties – areas in production
Mine properties – areas in development
Exploration and evaluation expenditure
Financial assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Financial liabilities
Interest-bearing liabilities
Lease liability on right of use assets
Total current liabilities
Non-current liabilities
Interest-bearing liabilities
Provisions
Lease liability on right of use assets
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
The accompanying notes form part of these financial statements
Consolidated
Note
2021
$’000
2020
$’000
16
17
24
25
19
24
20
11
12
13
14
19
26
27
19
18
20
18
27
20
22
23
54,077
55
3,503
26,118
2,549
86,302
656
4,442
85,691
72,965
61,927
34,242
3,416
263,339
349,641
30,289
2,050
-
9,895
2,294
44,528
48,352
34,270
2,339
84,961
129,489
8,904
1,887
7,075
15,779
8
33,653
570
9,792
63,583
91,642
4,677
12,974
-
183,238
216,891
34,456
1,443
363
168
6,196
42,626
125
31,374
4,229
35,728
78,354
220,152
138,537
297,760
6,493
(84,101)
220,152
236,865
6,177
(104,505)
138,537
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Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
At 1 July 2020
Profit after income tax for the year
Other comprehensive income, net of tax
Total comprehensive profit for the year
Transactions with owners in their capacity as owners:
Share-based payments expense
Shares issued, net of transactions costs
At 30 June 2021
At 1 July 2019
Profit after income tax for the year
Other comprehensive income, net of tax
Total comprehensive profit for the year
Transactions with owners in their capacity as owners:
Share-based payments expense
Shares issued, net of transactions costs
At 30 June 2020
Issued
capital
$’000
236,865
Reserves
$’000
6,177
-
-
-
-
60,895
297,760
175,285
-
-
-
-
61,580
236,865
-
-
-
316
-
6,493
5,647
-
-
-
530
-
6,177
Accumulated
losses
$’000
(104,505)
20,404
-
20,404
-
-
(84,101)
(118,755)
14,250
-
14,250
-
-
(104,505)
Total
$’000
138,537
20,404
-
20,404
316
60,895
220,152
62,177
14,250
-
14,250
530
61,580
138,537
The accompanying notes form part of these financial statements
Wiluna Mining | Annual Report 2021 99
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Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
Note
2021
$’000
2020
$’000
Cash flows from operating activities
Proceeds from gold and silver sales
Payments to suppliers and employees
Interest received
Interest paid
Other
Net cash flows from operating activities
16
Cash flows from investing activities
Purchase of plant and equipment
(Loss)/proceeds from sale of non-core assets, net of costs
Payments for geology
Payments for mine properties
Proceeds from pre-production gold sales
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from issue of equities
Payment of share issue costs
Proceeds from loan, net of fees
Repayment of loans
Net proceeds/(repayment) from finance leases
Change in bank guarantees
Repayment of right of use lease liabilities
Net cash flows from financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
The accompanying notes form part of these financial statements
133,299
(99,849)
36
(2,422)
2,881
33,945
(27,998)
(175)
(26,133)
(46,382)
1,436
(99,252)
64,218
(3,583)
75,100
(19,250)
2,047
(86)
(7,966)
110,480
45,173
8,904
54,077
127,614
(110,562)
9
(3,779)
1,071
14,353
(23,638)
10,335
(8,962)
(28,184)
7,422
(43,027)
59,136
(3,446)
1,625
(14,104)
(93)
-
(6,233)
36,885
8,211
693
8,904
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Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
Basis of preparation
These consolidated financial statements and notes represent those of Wiluna Mining Corporation Limited (the ‘Company’
or ‘Wiluna’) and its controlled entities (the ‘Group’).
The financial statements were authorised for issue on 30 August 2021 by the directors of the Company.
The financial report is a general purpose financial report which:
•
•
•
•
•
has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other
authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’), International Financial Reporting
Standards (‘IFRS’) and the Corporations Act 2001;
are presented in Australian dollars, which is the Company’s and Group’s functional and presentation currency, with all
values rounded to the nearest thousand dollars ($’000) unless otherwise stated, in accordance with ASIC Instrument
2016/91;
have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the
measurement at fair value of selected non-current assets, financial assets and financial liabilities;
adopts all new and amended Accounting Standards and Interpretations issued by the AASB that are relevant to
the operations of the Group and effective for reporting periods beginning on or after 1 July 2019; and
does not early adopt Accounting Standards and Interpretations that have been issued or amended but are not
yet effective.
GOING CONCERN
The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and the discharge of liabilities in the normal course of business.
As disclosed in the 30 June 2021 financial statements, the consolidated entity had net cash outflows from investing activities
of $99.3m but continued to generate positive net cash inflows from operating activities of $33.9m for the year ended 30 June
2021. As at that date, the Group had net current assets of $41.8m, which includes the current lease liability of $2.3m (relating to
Right of Use Assets).
Headroom in the net current asset position continues to improve on prior periods, and the Directors believe that the
going concern basis of preparation of the financial report remains appropriate, taking into consideration the following
supporting factors:
•
•
•
The Company’s mining operation has generated positive operating cash flows since the Company’s capital restructure
in early 2018, and the Company has forecasted to continue to achieve positive cash flows from its current operations
which will generate sufficient cash inflows to meet the repayment of trade debts and other liabilities when they
become due and payable;
the Company recently drew down a US$42m term loan1 from Mercuria Energy Trading Pte Ltd to fund Stage 1 of its
Sulphide Development Program. The Company expects to begin earning revenue from the Stage 1 development in the
year ended 30 June 2022; and
continued development expenditure for Stage 2 and beyond will be controlled dependent on having suitable funding
in place. If additional funding for ongoing development is delayed, the Company would slow down its development
profile and rely upon its underlying cash flows from operations to maintain a going concern.
Accordingly, the Directors believe that the Company will be able to continue as a going concern and that it is appropriate to
adopt the going concern basis in the preparation of the financial report.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate the assets, liabilities and results of all subsidiaries of the Company at the end
of the reporting period. A list of controlled entities (subsidiaries) at year end is contained in note 29.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.
1 Refer to the ASX release dated 16 June 2021.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated.
Subsidiaries are consolidated from the date on which control is obtained to the date on which control is disposed. The acquisition
of subsidiaries is accounted for using the acquisition method of accounting.
Wiluna Mining | Annual Report 2021
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Notes to the
Consolidated Financial Statements (continued)
FOREIGN CURRENCY TRANSLATION
The financial statements are presented in Australian dollars, which is the Group’s functional and presentation currency.
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.
OTHER ACCOUNTING POLICIES
Significant and other accounting policies that summarise the measurement basis used and are relevant to an understanding
of the financial statements are provided throughout the notes to the financial statements. Where possible, wording has been
simplified to provide clearer commentary on the financial report of the Group. Accounting policies determined as non-significant
are not included in the financial statements. There have been no changes to the Group’s accounting policies that are no longer
disclosed in the financial statements.
CORONAVIRUS (COVID-19) PANDEMIC
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the consolidated entity based on known information. This consideration extends to the nature of the products and services
offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as
addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or
any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as at
the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
KEY ESTIMATES AND JUDGEMENTS
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. The judgements, estimates and assumptions material to the
financial report are found in the following notes:
Note 2: Cost of goods sold
Note 12: Mine properties – areas in production
Note 13: Mine properties – areas in development
Note 14: Exploration and evaluation expenditure
Note 20: Right of Use Assets
Note 25: Inventories
Note 27: Provisions
Note 28: Share-based payments
THE NOTES TO THE FINANCIAL STATEMENTS
The notes include information which is required to understand the financial statements and is material and relevant to the
operations and the financial position and performance of the Group.
Information is considered relevant and material if, for example:
The amount is significant due to its size and nature;
•
The amount is important for understanding the results of the Group;
•
It helps to explain the impact of significant changes in the Group’s business; or
•
It relates to an aspect of the Group’s operations that is important to its future performance.
•
The notes are organised into the following sections:
•
•
•
•
•
A brief explanation is included under each section.
Performance for the year;
Production and growth assets;
Cash, debt and capital;
Operating assets and liabilities; and
Other disclosures.
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Notes to the
Consolidated Financial Statements (continued)
Performance for the year
This section focuses on the results and performance of the Group. This covers both profitability and the return to shareholders
via earnings per share combined with cash generation.
1. REVENUE FROM GOLD AND SILVER SALES
Gold and silver sales
- gold sales at spot price(i)
- gain/(loss) on gold forward contracts
Total gold sales
Silver sales
Total gold and silver sales
(i) Pre-production gold sales are capitalised and are not included in sales revenue
Accounting Policies
The Group recognises revenue as follows:
Consolidated
2021
$’000
122,022
9,263
131,285
182
131,467
2020
$’000
135,102
(8,708)
126,394
168
126,562
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange
for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a
customer; identifies the performance obligations in the contract; determines the transaction price which takes into account
estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises
revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods
or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the ‘expected value’ or ‘most likely amount’ method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until
the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the
constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.
GOLD SALES
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods.
Control is generally considered to have passed when:
- physical possession and risk of goods are transferred;
- determination of accuracy of the metal content of the goods delivered; and
-
The refiner has no practical ability to reject the goods where it is within contractually specified terms.
Wiluna Mining | Annual Report 2021
Notes to the
Consolidated Financial Statements (continued)
2. COST OF GOODS SOLD
Cost of goods sold
Costs of production
Royalties
Depreciation of mine plant and equipment
Amortisation of mine properties
Open pit waste removal movements
Underground costs capitalised
Stockpile movements
Gold in circuit movements
Total
Accounting Policies
Consolidated
2021
$’000
78,487
7,539
9,788
20,789
1,528
-
(5,193)
(2,094)
110,844
2020
$’000
86,666
8,179
12,024
16,517
(599)
(155)
870
1,567
125,069
COSTS OF PRODUCTION
Cash costs of production include direct costs incurred for mining, processing and mine site administration, net of costs capitalised
to pre-strip and production stripping assets.
ROYALTIES
Royalty expenses under existing royalty regimes are payable on sales and are therefore recognised as the sale occurs.
DEPRECIATION
Depreciation of mine specific plant and equipment and buildings and infrastructure is charged to the statement of
comprehensive income on a unit-of-production basis over the mine inventory of the mine concerned (consistent with the
Life of Mine plan), except in the case of assets whose useful life is shorter than the life of the mine, in which case the straight-line
method is used. The unit of account is ounces of gold produced.
Depreciation of non-mine specific plant and equipment is calculated using the straight line method to allocate their cost or
revalued amounts, net of their residual values, over their estimated useful lives as follows:
- Plant and equipment
- Motor vehicles
- Office furniture and equipment
10% to 33%
6% to 33%
6% to 50%
- Buildings and infrastructure
4%
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
AMORTISATION
Mine properties are amortised on a unit-of-production basis over the mine inventory of the mine concerned (consistent with the
Life of Mine plan). The unit of account is ounces of gold produced.
KEY JUDGMENTS
Unit-of-production method of depreciation/amortisation
The Group uses the unit-of-production basis when depreciating/amortising life of mine specific assets which results in a
depreciation/amortisation charge proportionate to the depletion of the anticipated remaining life of mine production.
Each asset’s economic life, which is assessed annually, has due regard for both its physical life limitations and to present
assessments of economically recoverable mine plan of the mine property at which it is located. These calculations require
the use of estimates and assumptions.
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Notes to the
Consolidated Financial Statements (continued)
3. EXPENSES
Share-based payments expense
Employees/service providers
Directors
Share-based payments expense recognised in the statement of comprehensive income
Consolidated
2021
$’000
2020
$’000
21
124
145
303
153
456
SHARE-BASED PAYMENTS
Equity-settled share-based compensation benefits are provided to employees and consultants. Equity-settled transactions are
awards of shares, or options over shares, that are provided to employees and consultants in exchange for the rendering of
services under an employee share plan.
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is determined using an 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 group 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 is 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.
Finance costs
Interest
Borrowing costs
Unwinding on discount of rehabilitation provision
Interest on lease liability
Total
Other expenses
- loss on sale of non-core assets
- other
Total
Consolidated
Note
2021
$’000
27
1,167
1,255
25
948
3,395
2020
$’000
1,749
5,245
283
2,001
9,278
Consolidated
Note
2021
$’000
2020
$’000
(675)
(52)
(727)
-
-
-
BORROWING COSTS
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (i.e. an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale) are capitalised as part of the cost of that
asset. All other borrowing costs are expensed as part of finance costs in the period incurred. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing of funds.
UNWINDING OF DISCOUNT ON PROVISIONS
The unwinding of discount on provisions represents the cost associated with the passage of time. Rehabilitation provisions
are recognised at the discounted value of the present obligation to restore, dismantle and rehabilitate each mine site with the
increase in the provision due to the passage of time being recognised as a finance cost in accordance with the policy described
in note 27.
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
4. OTHER INCOME
Other income
- other income
- interest revenue
- sale of non-core assets(i)
Total
Consolidated
2021
$’000
3,126
36
-
3,162
2020
$’000
2,367
29
21,655
24,051
(i) 2020: Relates to income generated from the sale of non-core assets and includes proceeds from the Lake Way Transaction completed during the 2020
financial year, as well as the sale of the Company’s Calcine Tailings.
Accounting Policies
OTHER INCOME
Interest revenue is recognised as it accrues using the effective interest rate method. Other revenue is recognised when it is
received or when the right to receive payment is established.
5. TREASURY GAINS AND (LOSSES)
Treasury – realised loss
- foreign exchange loss
- hedge premium (paid)/income
Total
Treasury – unrealised gain
Unrealised gain on forward contracts
Gain on financial assets
Total
Consolidated
Note
2021
$’000
2020
$’000
(53)
(64)
(117)
6,565
11
6,576
(13)
-
(13)
3,535
582
4,117
8
Note: All gold forward contracts have been marked to market through profit or loss at 30 June 2021, as per note 8.
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Notes to the
Consolidated Financial Statements (continued)
6.
INCOME TAX
Consolidated
2021
$’000
2020
$’000
The components of the tax expense/(income) comprise:
Current tax
Deferred tax
Total
-
-
-
(a) The prima facie tax on profit/(loss) before income tax is reconciled to the income tax as follows:
Net profit before income tax
Prima facie tax on profit from ordinary activities before income tax at 30% (2020: 30%)
Add the tax effect of:
Permanent differences
Effect of current year temporary differences not recognised
Effect of tax losses utilised
Income tax expense
(b) Unrecognised deferred tax assets and (liabilities)
Trade and other receivables
Financial assets and liabilities
Right of use assets
Plant and equipment
Geology and development expenditure
Mine properties
Trade and other payables
Interest-bearing liabilities
Lease liabilities
Provisions
Equity
Tax losses recognised to offset deferred tax liabilities
Balance at the end of the year
20,404
6,121
305
-
(6,426)
-
Consolidated
2021
$’000
(62)
(1,768)
(1,332)
(2,807)
(10,266)
(30,982)
83
3,892
(1,737)
10,896
25
34,060
-
-
-
-
14,250
4,275
1,757
-
(6,032)
-
2020
$’000
(87)
145
(2,938)
4,145
(3,886)
(18,604)
141
103
3,127
9,845
900
7,109
-
The directors have considered it prudent not to bring to account the deferred tax asset of income tax losses until it is probable
of deriving assessable income of a nature and amount to enable such benefit to be realised.
(c) Tax losses
The group has estimated carried forward tax losses which are available indefinitely for
offset against future taxable income, subject to meeting the relevant statutory tests:
Revenue losses
Income tax losses
Losses used against deferred tax liabilities
Gross tax losses for which no deferred tax asset has been recognised
Tax effected at 30%
Capital losses
Estimated capital losses for which no deferred tax asset is recognised
Consolidated
2021
$’000
2020
$’000
227,341
(113,534)
113,807
34,142
157,353
(23,692)
133,661
40,098
-
-
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
6.
INCOME TAX (continued)
Accounting Policies
INCOME TAX
The income tax expense/benefit for the year comprises current income tax expense/benefit and deferred tax expense/benefit.
Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities are measured at
the amounts expected to be paid to the relevant taxation authority.
Deferred income tax expense/benefit reflects movements in deferred tax asset and deferred tax liability balances during the
year as well as unused tax losses.
Current and deferred income tax expense/benefit is charged or credited outside profit or loss when the tax relates to items that
are recognised outside profit or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where
there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or
settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable
that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement
or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are
offset where: (a) a legally enforceable right of set-off exists; and (b) the deferred tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which
significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
7. EARNINGS PER SHARE
Profit after income tax for the year
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic EPS:
Weighted average number of ordinary shares outstanding during the year
used in the calculation of diluted EPS:
Accounting Policies
EARNINGS PER SHARE
Consolidated
2021
$’000
20,404
2020
$’000
14,250
No. of Shares
(‘000s)
No. of Shares
(‘000s)
115,126
116,535
58,334
59,314
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial
year, adjusted for bonus elements in ordinary shares issued during the 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.
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Notes to the
Consolidated Financial Statements (continued)
8. PHYSICAL GOLD DELIVERY COMMITMENTS
Gold contracts
Contracted gold
sale price
Value of
committed sales
2021(i)
Ounces
2020
Ounces
2021
$/oz
2020
$/oz
2021
$’000
2020
$’000
Mark-to-market(ii)
2021
$’000
2020
$’000
23,500
4,720
2,459
2,504
57,782
11,817
2,530
(363)
Open contracts
Within one year
- Fixed forward
contracts
Between one and two years
- Fixed forward
contracts
Between two and five years
- Fixed forward
contracts
47,000
92,000
-
-
2,421
2,421
-
-
113,799
222,756
-
-
162,500
4,720
394,337
11,817
2,584
832
5,946
-
-
(363)
(i) 159,000 oz of the contracted ounces are denominated in USD and are priced at US$1,820/oz.
(ii) Mark-to-market represents the value of the open contracts at balance date, calculated with reference to the gold spot price at that date. A negative
amount reflects a valuation in the counterparty’s favour.
Accounting Policies
GOLD FORWARD CONTRACTS
As part of the risk management policy, the Group enters into gold forward contracts to manage the gold price of a proportion
of anticipated gold sales. The counterparty of the gold forward contracts is Mercuria Energy Trading Pte Ltd.
9. OPERATING SEGMENT INFORMATION
The Group has one reportable segment which is gold production for the years ended 30 June 2021 and 30 June 2020.
The Chief Operating Decision Maker (‘CODM’) is the Board of Directors and the Executives. There is currently one operating
segment identified, being the operating of the of the Matilda-Wiluna Gold Operation based on internal reports reviewed by
the Chief Operating Decision Maker in assessing performance and allocation of resources.
Major customers
During the year ended 30 June 2021, the Group’s external revenue was predominantly derived from sales to Mercuria Energy
Pte Ltd and Gold Corporation (The Perth Mint) through the Matilda-Wiluna Gold Operation operating segment.
Accounting Policies
DIVIDENDS
Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.
10. DIVIDENDS PAID OR PROVIDED FOR
There were no dividends paid or provided for during the year (2020: Nil).
Accounting Policies
DIVIDENDS
Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.
Wiluna Mining | Annual Report 2021
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Notes to the
Consolidated Financial Statements (continued)
Production and growth assets
Included in this section is relevant information about recognition, measurement, depreciation, amortisation and impairment
considerations of the core producing and growth (exploration and evaluation) assets of the Group.
11. PLANT AND EQUIPMENT
Plant
& Equip-
ment
$’000
25,920
2,877
(2,829)
865
-
26,833
Consolidated
Motor
Vehicles
$’000
Furniture
& Equip-
ment
$’000
Buildings
& Infra-
structure
$’000
606
2,358
(306)
110
-
2,768
617
480
(563)
502
-
6,906
333
(542)
998
-
Tails Dam
$’000
9,185
(220)
(1,030)
17,245
-
Capital
WIP
$’000
20,349
22,179
-
(19,720)
(629)
Total
$’00
63,583
28,007
(5,270)
-
(629)
1,036
7,695
25,180
22,179
85,691
47,100
(20,267)
26,833
3,776
(1,008)
2,768
2,623
(1,587)
1,036
12,521
(4,826)
7,695
30,927
(5,747)
25,180
22,179
-
22,179
119,126
(33,435)
85,691
Net carrying amount at 1 July 2020
Additions
Depreciation expense
Transfers between classes
Transfers to mine properties
Net carrying amount at
30 June 2021
At 30 June 2021
Cost
Accumulated depreciation
Net carrying amount
Net carrying amount at 1 July 2019
Additions
Depreciation expense
Transfers between classes
Disposals
Net carrying amount at
30 June 2020
25,186
3,234
(3,777)
1,277
-
25,920
476
267
(137)
-
-
606
714
87
(185)
1
-
617
7,557
18
(669)
-
-
6,906
9,884
-
(699)
-
-
1,349
20,278
-
(1,278)
-
45,166
23,884
(5,467)
-
-
9,185
20,349
63,583
At 30 June 2020
Cost
Accumulated depreciation
Net carrying amount
43,358
(17,438)
25,920
1,308
(702)
606
1,641
(1,024)
617
11,191
(4,285)
6,906
13,902
(4,716)
9,186
20,348
-
20,348
91,748
(28,165)
63,583
PLANT AND EQUIPMENT SECURED UNDER FINANCE LEASES
Refer to note 18 for further information on plant and equipment secured under finance leases.
Accounting Policies
PLANT AND EQUIPMENT
Plant and equipment is carried at historical cost less accumulated depreciation and any accumulated impairment. In the event the
carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down
immediately to the estimated recoverable amount and impairment losses are recognised in profit or loss. A formal assessment of
recoverable amount is made when impairment indicators are present.
Gains and losses on disposals of plant and equipment are determined by comparing proceeds with the carrying amount.
These gains and losses are included in profit or loss.
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
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Notes to the
Consolidated Financial Statements (continued)
12. MINE PROPERTIES – AREAS IN PRODUCTION
2021
Balance at 1 July
Transferred to mine properties – areas in development
Transferred from exploration and evaluation expenditure
Additions
Rehabilitation provision adjustment
Amortisation included in costs of production
Amortisation during production
Balance at 30 June 2021
2020
Balance at 1 July
Transferred from mine properties – areas in development
Additions
Rehabilitation provision adjustment
Amortisation included in costs of production
Amortisation during production
Balance at 30 June 2020
Accounting Policies
Mine
Properties
$’000
Note
Consolidated
Stripping
Activity
Asset
$’000
13
14
27
2
90,114
(8,224)
4,481
4,570
2,813
-
(20,789)
72,965
1,528
-
-
-
-
(1,528)
-
-
Mine
Properties
$’000
Note
13
27
2
68,852
30,963
1,196
5,620
-
(16,517)
90,114
Consolidated
Stripping
Activity
Asset
$’000
928
-
1,528
-
(928)
-
1,528
Total
$’000
91,642
(8,224)
4,481
4,570
2,813
(1,528)
(20,789)
72,965
Total
$’000
69,780
30,963
2,724
5,620
(928)
(16,517)
91,642
MINE PROPERTIES – AREAS IN PRODUCTION
Mine development expenditure incurred by, or on behalf of, the Group is accumulated separately for each area of interest in
which economically recoverable resources have been identified. Such expenditure comprises cost directly attributable to the
construction of a mine and the related infrastructure.
A development property is reclassified as a mining property in this category at the end of the commissioning phase, when the
property is capable of operating in the manner intended by management.
Amortisation is charged using the units-of-production method, with separate calculations being made for each area of interest.
The units-of-production basis results in an amortisation charge proportional to the estimated mine inventory (consistent with the
Life of Mine plan). Development properties are tested for impairment in accordance with the policy on impairment of assets.
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
12. MINE PROPERTIES – AREAS IN PRODUCTION (continued)
Stripping activity asset
Once access to the ore is attained, all waste that is removed from that point forward is considered production stripping activity.
The amount of production stripping costs deferred is based on the extent to which the current strip ratio of ore mined exceeds
the life of mine strip ratio of the identified component. A component is defined as a specific volume of the ore body that is made
more accessible by the stripping activity and is identified based on the mine plan.
The stripping activity asset is initially measured at cost, which is the accumulation of costs directly incurred to perform the
stripping activity that improves access to the identified component of the ore body. The production stripping asset is then carried
at cost less accumulated amortisation and any impairment losses.
The production stripping asset is amortised over the expected useful life of the identified component (determined based on
economically recoverable mine plan), on a unit-of-production basis. The unit of account is tonnes of ore mined.
KEY JUDGMENTS
Unit-of-production method of depreciation/amortisation
The Group uses the unit-of-production basis when depreciating/amortising life of mine specific assets which results in a
depreciation/amortisation charge proportionate to the depletion of the anticipated remaining life of mine production.
Each asset’s economic life, which is assessed annually, has due regard for both its physical life limitations and to present
assessments of economically recoverable mine plan of the mine property at which it is located. These calculations
require the use of estimates and assumptions.
Determination of mineral resources, ore reserves and mine plan
The determination of mineral resources and ore reserves impacts the accounting for asset carrying values. The Group
estimates its mineral resources and ore reserves in accordance with the Australian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves 2012 (the ‘JORC’ Code). The information on mineral resources and ore
reserves was prepared by or under the supervision of Competent Persons as defined in the JORC Code. The amounts
presented are based on the mineral resources and ore reserves determined under the JORC Code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves, and assumptions that
are valid at the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of reserves and the mine plan and may ultimately result in reserves and mine plan being restated.
Stripping asset
The Group capitalises stripping costs incurred during the development and production phase of mining. As a result,
the Group distinguishes between the production stripping that relates to the extraction of inventory and that which
relates to the stripping asset.
The Group has identified its production stripping for each surface mining operation it identifies the separate components
of the ore bodies for each of its mining operations. An identifiable component is a specific volume of the ore body that is
made more accessible by the stripping activity. Judgement is required to identify and define these components, and also
to determine the expected volumes of waste to be stripped and ore to be mined in each of
these identified components.
These assessments are undertaken for each individual identified component based on life of mine strip ratio.
Judgement is also required to identify a suitable production measure to be used to allocate production stripping costs
between inventory and any stripping activity asset(s) for each identified component. Changes in the expected strip
ratio is accounted for prospectively from the date of change.
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Notes to the
Consolidated Financial Statements (continued)
13. MINE PROPERTIES – AREAS IN DEVELOPMENT
Balance at 1 July
Pre-production expenditure capitalised, net of gold sales
Transferred from/(to) mine properties – areas in production
Development study costs
Transferred from plant and equipment
Balance at 30 June
Accounting Policies
Consolidated
Note
12
11
2021
$’000
4,677
45,781
8,224
2,616
629
61,927
2020
$’000
3,581
30,963
(30,963)
1,096
-
4,677
MINE PROPERTIES – AREAS IN DEVELOPMENT
Mine properties under development represent the costs incurred in preparing mines for production and includes plant and
equipment under construction and operating costs incurred before production commences. These costs are capitalised to the
extent they are expected to be recouped through the successful exploitation of the related mining leases. Once production
commences, these costs are transferred to property, plant and equipment and mine properties, as relevant, and are depreciated
and amortised using the units-of-production method based on the mine inventory to which they relate or are written off if the
mine property is abandoned.
KEY JUDGMENTS
Production start date
The Group assesses the stage of each mine under construction to determine when a mine moves into the production stage.
The criteria used to assess the start date are determined based on the unique nature of each mine construction project,
such as the complexity of a plant and its location. The Group considers various relevant criteria to assess when the mine
and the processing plant is substantially complete and ready for its intended use. At this time, any costs capitalised to
‘mine properties – areas in development’ are reclassified to ‘mine properties – areas in production’ and ‘property, plant and
equipment’. Some of the criteria will include, but are not limited, to the following:
-
-
-
-
availability of the plant;
completion of a reasonable period of testing of the mine plant and equipment;
ability to produce metal in saleable form (within specifications); and
ability to sustain ongoing production of metal at commercial rates of production.
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs
ceases and costs are either regarded as inventory or expensed, except for costs that qualify for capitalisation relating to
mine asset additions or improvements, mine development or mineable reserve development. It is also at this point that
depreciation/amortisation commences.
Wiluna Mining | Annual Report 2021
Notes to the
Consolidated Financial Statements (continued)
14. EXPLORATION AND EVALUATION EXPENDITURE
Reconciliation of movements during the year
Balance at 1 July
Exploration expenditure incurred during the year
Transferred to mine properties – areas in production
Expensed during the year
Other
Balance at 30 June
Accounting Policies
Note
12
Consolidated
2021
$’000
12,974
25,688
(4,481)
-
61
34,242
2020
$’000
5,209
8,999
-
(1,234)
-
12,974
EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically
recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written
off in the year in which the decision is made.
Once a development decision has been taken, the carrying amount of the exploration and evaluation expenditure in respect
of the area of interest is aggregated with the mine development expenditure and classified under non-current assets as
development properties.
The value of the Group’s interest in exploration expenditure is dependent upon:
•
•
•
the continuance of the Group’s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest,
or alternatively, by their sale.
KEY JUDGMENTS
Exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related
exploration and evaluation asset through sale.
Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources,
future technological changes which could impact the cost of mining, future legal changes (including changes to
environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future,
this will reduce profits and net assets in the period in which this determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a
stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the
extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and
net assets in the period in which this determination is made.
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Notes to the
Consolidated Financial Statements (continued)
14. EXPLORATION AND EVALUATION EXPENDITURE (continued)
EXPLORATION EXPENDITURE COMMITMENTS
In order to maintain current rights of tenure to mining tenements, the Group has the following exploration expenditure
requirements up until expiry of leases. These obligations, which are subject to renegotiation upon expiry of the leases, are not
provided for in the financial statements and are payable as follows:
Within one year
Consolidated
2021
$’000
2,447
2020
$’000
3,284
15. IMPAIRMENT OF ASSETS
The carrying values of non-current assets are reviewed for impairment when indicators of impairment exist or changes in
circumstances indicate the carrying value may not be recoverable. When an indicator of impairment does exist, the below
process is followed.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit (‘CGU’) to which the asset belongs and where the carrying values exceed the estimated recoverable amount,
the assets or CGU are written down to their recoverable amount.
The recoverable amount of an asset is the greater of the fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset.
The relevant CGU for Wiluna Mining Corporation Limited is the Matilda-Wiluna Gold Mine.
DETERMINATION OF MINERAL RESOURCES AND ORE RESERVES
The determination of reserves impacts the accounting for asset carrying values, depreciation and amortisation rates, deferred
stripping costs and provisions for decommissioning and restoration. The information in this report as it relates to ore reserves,
mineral resources or mineralisation is reported in accordance with the AusIMM ‘Australian Code for reporting of Identified
Mineral Resources and Ore Reserves’. The information has been prepared by or under supervision of competent persons as
identified by the Code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid at
the time of estimation which may change significantly when new information becomes available. Changes in the forecast prices
of commodities, exchange rates, production costs, ore grades and/or recovery rates may change the economic status of reserves
and may, ultimately, result in the reserves being restated.
IMPAIRMENT OF MINE PROPERTIES, PLANT AND EQUIPMENT
The future recoverability of capitalised mine properties and plant and equipment is dependent on a number of key factors
including; gold price, discount rates used in determining the estimated discounted cash flows of CGUs, foreign exchange
rates, the level of proved and probable reserves and measured, indicated and inferred mineral resources, the estimated value
of unmined inferred mineral properties included in the determination of fair value less cost to dispose (‘fair value’), future
technological changes which could impact the cost of mining, and future legal changes (including changes to environmental
restoration obligations).
Fair value is estimated based on discounted cash flows using market based commodity price and exchange assumptions,
estimated quantities of recoverable minerals, production levels, operating costs and capital requirements, based on CGU life
of mine (‘LOM’) plans. Consideration is also given to analysts’ valuations, and the market value of the Company’s securities.
The fair value methodology adopted is categorised as Level 3 in the fair value hierarchy. When LOM plans do not fully utilise
existing mineral properties for a CGU, and options exist for the future extraction and processing of all or part of those resources,
an estimate of the value of mineral properties is included in the determination of fair value. The Group considers this valuation
approach to be consistent with the approach taken by market participants.
The Group has estimated its unmined resource values based on a dollar value per gold equivalent ounce basis, taking into
account a range of factors although principally the current market rate for similar resources.
In determining the fair value of CGUs, future cash flows were discounted using rates based on the Group’s estimated weighted
average cost of capital. When it is considered appropriate to do so, an additional premium is applied with regard to the
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
15. IMPAIRMENT OF ASSETS (continued)
geographic location and nature of the CGU. Life of mine operating and capital cost assumptions are based on the Group’s latest
budget and LOM plans. Operating cost assumptions reflect the expectation that costs will, over the long-term, have a degree of
positive correlation to the prevailing commodity price and exchange rate assumptions.
KEY ASSUMPTIONS FOR THIS REVIEW:
Gold price (A$ per ounce): A$2,233/oz – A$2,468/oz (with a mid-point of A$2,350/oz).
Commodity prices are estimated with reference to external market forecasts, and the rates applied to the valuation have regard
to observable market data.
Discount Rate %: 6.88% - 14.88% (with a mid-point of 10.88%).
In determining the fair value of the CGU, the future cash flows were discounted using rates based on the Company’s estimated
weighted average cost of capital.
Value of Unmined Resources: A$68/oz – A$76/oz (with a mid-point of A$72/oz).
In assessing the value of unmined Resources, the Company has made reference to existing data points available in the market –
particularly Enterprise Value per Resource ounce metrics for Australian Stock Exchange and Toronto Stock Exchange listed Gold
Explorers and Developers.
It should be noted that these data points relate to a large number of publicly traded gold explorers and developers, and do not
account for qualitative factors such as Resource classification, existing infrastructure, and development status, all of which are
favourable towards the Company. As such, the Company considers these multiples to be conservative in nature, given its ideal
geographical location with first-class logistical parameters, advanced development status, existing plant, mine development and
infrastructure, and the large scale of its mineralisation.
Additionally, when conducting gold price sensitivities in the model, these multiples have also been adjusted by a proportional
move in the gold price (i.e. if the gold price in the model is adjusted down by 5%, the unmined Resource multiple is also adjusted
down by 5%) to ‘normalise’ the multiples for movements in commodity prices.
Operating and capital costs:
Life-of-mine operating and capital cost assumptions are based on the Group’s latest budget and life-of-mine plans.
Operating cost assumptions reflect the expectation that costs will, over the long-term, have a degree of positive correlation
to the prevailing commodity price and exchange rate assumptions.
Sensitivity analysis:
Any variation in the key assumptions used to determine fair value would result in a change of the assessed fair value. It is
estimated that changes in the key assumptions would have the following approximate impact on the fair value of the CGU that
has been subject to impairment testing:
Change of:
Gold price & value of unmined resources by 2.5%
Discount rate by 2.5%
Increase
$’000
Decrease
$’000
31,377
16,880
(31,377)
(13,308)
Changes in the specific assumptions above are assumed to move in isolation, while all other assumptions are held constant.
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Notes to the
Consolidated Financial Statements (continued)
Cash, debt and capital
This section outlines how the Group manages its cash, capital, related financing costs and its exposure to various financial risks.
It explains how these risks affect the Group’s financial position and performance and what the Group does to manage these risks.
16. CASH AND CASH EQUIVALENTS
Accounting Policies
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, deposits available on demand with banks and other short-term highly liquid
investments with original maturities of three months or less.
Cash and cash equivalents in the statement of financial position and statement of cash flows
Cash at bank and on hand
Total
Reconciliation of profit after income tax to the net cash flow from operating activities
Profit after income tax
Adjustments for
Depreciation and amortisation relating to gold sales
Depreciation of non-mine site assets
Equity based payments
Treasury – unrealised gain
Williamson pre-strip contribution from third party
Non-capital exploration expenditure
Unwinding of discount on rehabilitation provision
Finance costs
Sale of non-core assets, net of costs
Other
Changes in net assets and liabilities
Receivables
Inventories
Payables
Net cash inflows from operating activities
Consolidated
2021
$’000
54,077
54,077
2020
$’000
8,904
8,904
Consolidated
2021
$’000
2020
$’000
20,404
14,250
30,577
95
316
(6,576)
-
384
25
950
175
(2)
1,413
(10,339)
(3,477)
33,945
28,541
63
530
(4,117)
(10,155)
42
283
5,225
(10,335)
573
(3,599)
529
(7,477)
14,353
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
16. CASH AND CASH EQUIVALENTS (continued)
Changes in liabilities arising from financing activities
Balance at 1 July 2019
Net cash from/(used in) financing activities
Acquisition of plant and equipment by means of leases
At 30 June 2020
Net cash from/(used in) financing activities
Acquisition of plant and equipment by means of leases
Consolidated
Interest-
bearing
liabilities
$’000
Lease
liabilities
$’000
12,140
(12,572)
725
16,657
(6,233)
1
293
57,898
56
10,425
(7,966)
2,174
Total
$’000
28,797
(18,805)
726
10,718
49,932
2,230
At 30 June 2021
58,247
4,633
62,880
17. GOLD BULLION AWAITING SETTLEMENT
Current
Gold bullion awaiting settlement
Accounting Policies
Consolidated
2021
$’000
2020
$’000
55
1,887
GOLD BULLION AWAITING SETTLEMENT
Bullion awaiting settlement comprises gold that has been received by the refiner prior to period end but which has not yet
been delivered into a sale contract. Gold bullion awaiting settlement is initially recognised at the expected selling price and
adjustments for variations in the gold price are made at the time of final settlement, which is within a matter of days.
Due to the short-term nature of the bullion awaiting settlement, the carrying value is assumed to approximate fair value.
The maximum exposure to credit risk is the fair value.
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Notes to the
Consolidated Financial Statements (continued)
18. INTEREST-BEARING LIABILITIES
Current interest-bearing liabilities
Secured loan – Mercuria, net of fees
Finance lease liabilities
Total Current interest-bearing liabilities
Non-current interest-bearing liabilities
Secured loan – Mercuria, net of fees
Finance lease liabilities
Total Non-current interest-bearing liabilities
Accounting Policies
Consolidated
2021
$’000
9,196
699
9,895
46,710
1,642
48,352
2020
$’000
-
168
168
-
125
125
BORROWINGS AND BORROWING COSTS
Loans and borrowings are initially recognised at the fair value of the consideration received.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date,
the loans or borrowings are classified as non-current.
Borrowing costs are expensed as incurred. Borrowing costs consist of interest and other costs that the Group incurs in
connection with the borrowing of funds.
INTEREST-BEARING LIABILITIES
SECURED LOANS – MERCURIA
On 14 August 2020, Wiluna Mining announced that all documentation concerning a gold prepaid swap financing facility and
gold hedging facility provided by Mercuria had been completed and executed. The $21m prepaid swap proceeds (‘Tranche 1’)
were repaid in full by 29 July 2021 by way of delivering 699oz of gold per month over the 12 month term (699oz were payable
as at 30 June 2021). As part of Tranche 1, Mercuria also provided the Company with a secured gold hedging facility for 34,000oz
at an average price of A$2,674/oz maturing over the term of the loan. That hedging facility was delivered in full by 29 July 2021
(3,500oz were outstanding as at 30 June 2021). The Term Loan and hedging program were secured under a general security
arrangement.
On 16 June 2021, the Company announced that the final conditions and documentation for a US$42 million Term Loan
agreement ‘Tranche 2’) with Mercuria had been completed, and the loan was drawn down on 18 June 2021. The Term Loan has
a 48-month tenor, with a grace period of 6 months (during which the Company will only pay interest) followed by equal monthly
repayments thereafter. The interest rate is LIBOR + 9.5%. Tranche 2 was complimented by a gold hedging facility for 159,000oz
priced at US$1,820/oz (refer note 8). The Term Loan and hedging program are secured under a general security arrangement.
The facility has been fully drawdown at reporting date.
FINANCE LEASE LIABILITIES
The Group holds hire purchase agreements for the acquisition of mobile equipment. The agreements incorporate fixed rates
between 2% and 12%, monthly repayments and expiry dates between June 2021 and June 2026. Finance lease liabilities are
effectively secured as the rights to the leased assets revert to the lessor in the event of default. At 30 June 2021, the Group
has $7.659m in unused lease facilities
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
19. FINANCIAL ASSETS AND LIABILITIES
Financial assets – current
Derivative financial asset
Other
Sub-total – current
Financial assets – non-current
Derivative financial asset
Sub-total – non-current
Total financial assets
Financial liabilities
Derivative financial liability
Total financial liabilities
Consolidated
2021
$’000
2020
$’000
2,530
19
2,549
3,416
3,416
5,965
-
-
-
8
8
-
-
8
363
363
Gold forward contracts have been marked-to-market at 30 June 2021 as per note 8.
Accounting Policies
FINANCIAL ASSETS
Financial assets are initially recognised at fair value, plus transaction costs that are directly attributable to its acquisition
and subsequently measured at amortised costs or fair value depending on the business model for those assets and the
contractual cash flow characteristics.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on
the nature of the derivative.
Derivatives are classified as current or non-current depending on the expected period of realisation.
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Notes to the
Consolidated Financial Statements (continued)
20. RIGHT OF USE ASSETS
This note provides information for leases where the Group is a lessee.
Amounts recognised in statement of financial position
Right of use assets
Buildings
Plant & equipment
Less: Accumulated depreciation
Total right of use assets
Right of use lease liabilities
Current
Non-current
Total lease liabilities
Amounts recognised in statement of profit or loss and other comprehensive income
Gain on modification of lease
Depreciation of right of use assets
Interest expense (included in finance costs)
Accounting Policies
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
Consolidated
2021
$’000
1,163
7,533
(4,254)
4,442
2,294
2,339
4,633
2020
$’000
617
16,040
(6,865)
9,792
6,196
4,229
10,425
Consolidated
2021
$’000
340
(4,817)
(948)
2020
$’000
-
(6,865)
(2,001)
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.
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.
Wiluna Mining | Annual Report 2021
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Notes to the
Consolidated Financial Statements (continued)
21. FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise receivables, payables, held-for-trading investments, derivative financial
instruments, cash and short-term deposits.
The Board of Directors has overall responsibility for the oversight and management of the Group’s exposure to a variety of
financial risks (including market risk, credit risk and liquidity risk).
The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the Group.
MARKET RISK
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimising the return.
Gold price volatility and exchange rate risks
Any revenue the Group derives from the sale of gold is exposed to commodity price and exchange rate risks. Commodity
prices fluctuate and are affected by many factors beyond the control of the Company. Such factors include supply and demand
fluctuations for gold, technological advancements, forward selling activities, financial investment and speculation and other
macro-economic factors.
Interest rate risks
The Group’s exposure to market interest rates relates to cash deposits held at variable rates. The Board regularly analyses its
interest rate exposure. Within this analysis consideration is given to potential renewals of existing positions.
Sensitivity analysis
The Company has performed sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity
analysis demonstrates the effect on the current year results and equity which could result from a change in these risks.
Interest rate sensitivity analysis
At 30 June 2021, the effect on loss as a result of changes in the interest rate, with all other variables remaining constant,
would be as follows:
Change in loss/equity
Increase in interest rate by 100 basis points
Decrease in interest rate by 100 basis points
Consolidated
2021
$’000
189
(189)
2020
$’000
86
(86)
CREDIT RISK
The maximum exposure to credit risk at reporting date is the carrying amount of those assets as disclosed in the statement
of financial position and notes to the financial statements. The Group has adopted a policy of only dealing with credit-worthy
counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from
defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value
of transactions concluded is spread amongst approved counterparties.
The consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered
representative across all customers of the consolidated entity based on recent sales experience, historical collection rates and
forward-looking information that is available.
Credit risk related to balances with banks and other financial institutions is managed by the Board. The Board’s policy requires
that surplus funds are only invested with counterparties with a Standard & Poor’s rating of at least A+. All of the Group’s
surplus funds are invested with AA and A+ Rated financial institutions.
LIQUIDITY RISK
The responsibility for liquidity risk management rests with the Board. The Group manages liquidity risk by maintaining
sufficient cash or credit facilities to meet the operating requirements of the business and investing excess funds in highly
liquid short term investments.
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
122
Notes to the
Consolidated Financial Statements (continued)
21. FINANCIAL RISK MANAGEMENT (continued)
Financing arrangements
Refer to note 18 for unused borrowing facilities at reporting date.
FOREIGN CURRENCY RISK
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity’s functional currency. The risk is measured using sensitivity analysis and cash
flow forecasting.
The carrying amount of the consolidated entity’s foreign currency denominated financial assets and financial liabilities at the
reporting date were as follows:
Assets
Cash and cash equivalent
Liabilities
Interest-bearing liabilities
Consolidated
2021
$’000
34,932
56,042
2020
$’000
-
-
The Group had net liabilities denominated in foreign currencies of $21.1 million (assets of $34.9 million less liabilities of $56.0
million) as at 30 June 2021 (2020: Nil). Based on this exposure, had the Australian dollar weakened by 10%/strengthened by 5%
(2020: N/A) against these foreign currencies with all other variables held constant, the consolidated entity’s profit before tax for
the year and subsequently equity would have been $3.2 million lower/$1.3 million higher (2020: N/A). The percentage change is
the expected overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible
fluctuations taking into consideration movements over the last 6 months each year and the spot rate at each reporting date.
The actual foreign exchange gain for the year ended 30 June 2021 was $0.1 million (2020: nil).
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
21. FINANCIAL RISK MANAGEMENT (continued)
Remaining contractual maturities
The following tables detail the Group’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.
2021
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing – fixed rate
Finance lease liability
Secured loan – Mercuria
Lease liabilities
Total non-derivatives
2020
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing – fixed rate
Finance lease liability
Lease 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
Over 5 years
$’000
-
30,289
-
-
4.8%
9.4%
9.3%
699
9,907
2,294
43,189
701
15,962
1,117
17,780
931
31,923
1,222
34,076
-
10
-
-
10
Weighted
average
interest rate
%
1 year
or less
$’000
Between 1
and 2 years
$’000
Between 2
and 5 years
$’000
Over 5 years
$’000
Remaining
contractual
maturities
$’000
30,289
2,341
57,792
4,633
95,055
Remaining
contractual
maturities
$’000
-
34,456
-
-
5%
15.5%
168
6,196
40,820
105
1,715
1,820
20
2,514
2,534
-
-
-
-
34,456
293
10,425
45,174
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
FAIR VALUE MEASUREMENTS
The Company measures and recognises the following assets and liabilities at fair value on a recurring basis after
initial recognition:
•
•
The Company does not subsequently measure any liabilities at fair value on a non-recurring basis.
Financial assets held for trading
Derivative financial instrument – receivable in relation to equity swap
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FAIR VALUE HIERARCHY
AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an input that is significant
to the measurement can be categorised into as follows:
-
LEVEL 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
LEVEL 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly or indirectly.
LEVEL 3
Measurements based on unobservable inputs for the asset or liability.
-
-
Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
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Notes to the
Consolidated Financial Statements (continued)
21. FINANCIAL RISK MANAGEMENT (continued)
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant
inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs
are not based on observable market data, the asset or liability is included in Level 3.
VALUATION TECHNIQUES
The Company selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to
measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or
liability being measured. The valuation technique selected by the Company is:
- Market approach:
Valuation techniques that use prices and other relevant information generated by market transactions for identical or
similar assets or liabilities.
When selecting a valuation technique, the Company gives priority to those techniques that maximise the use of observable
inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available
information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the
asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed
using the best information available about such assumptions are considered unobservable.
The following table provides the fair values of the Company’s assets and liabilities measured and recognised on a recurring
basis after initial recognition and their categorisation within the fair value hierarchy:
Recurring fair value measurements
Financial assets at fair value through profit or loss:
- held-for-trading Australian listed shares
- gold forward contracts
Recurring fair value measurements
Financial assets at fair value through profit or loss:
- held-for-trading Australian listed shares
- gold forward contracts
30 June 2021
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
19
-
-
5,946
-
-
19
5,946
30 June 2020
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
8
-
-
(363)
-
-
8
(363)
There were no transfers between levels during the financial year.
The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values
due to their short-term nature.
The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market
interest rate that is available for similar financial liabilities.
Accounting Policies
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.
Wiluna Mining | Annual Report 2021
Notes to the
Consolidated Financial Statements (continued)
21. FINANCIAL RISK MANAGEMENT (continued)
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair
value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is
undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable,
with external sources of data.
INVESTMENT AND OTHER FINANCIAL ASSETS
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either
amortised cost or fair value depending on their classification. Classification is determined based on both the business model
within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting
mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all
of a financial asset, it’s carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial
assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired
for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon
initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold
for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at
amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon
the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased
significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost
or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default
event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined
that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount
of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash
shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other
comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
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Notes to the
Consolidated Financial Statements (continued)
22. ISSUED CAPITAL
Ordinary shares – issued and fully paid
Movement in ordinary shares on issue
At 1 July 2019
Placement
Issued in lieu of payment
Transaction costs
Share consolidation (100:1) on 25 May 2020
On issue at 30 June 2020
At 1 July 2020
Placement
Issued in lieu of payment
Issued on exercise of options
Transaction costs
On issue at 30 June 2021
Accounting Policies
Consolidated
2021
$’000
2020
$’000
297,760
236,865
Number
(‘000s)
3,440,646
5,926,005
661,608
-
(9,927,975)
100,284
100,284
56,191
1,781
22
-
158,278
$’000
175,285
59,260
5,980
(3,660)
-
236,865
236,865
63,638
836
3
(3,582)
297,760
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.
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.
CAPITAL RISK MANAGEMENT
The Group’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 Group may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
The Group is subject to certain financing arrangement 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.
Wiluna Mining | Annual Report 2021
Notes to the
Consolidated Financial Statements (continued)
23. RESERVES
Share-based payments reserve consists of:
Share options
Performance rights
Total
Balance at 1 July 2019
Options expired
Options issued
Options forfeited
Consolidated (100:1)
Balance at 30 June 2020
Balance at 1 July 2020
Options expired
Options issued
Options forfeited
Options exercised
Balance at 30 June 2021
Accounting Policies
Consolidated
Number
(‘000s)
8,444
-
8,444
766,677
(2,200)
100,951
(21,036)
(835,948)
8,444
8,444
(6,736)
995
(549)
(21)
2,133
$’000
4,767
1,410
6,177
5,647
-
1,312
(782)
-
6,177
6,177
-
1,140
(824)
-
6,493
SHARE-BASED PAYMENT RESERVES
Options and performance rights are issued to suppliers, directors, employees and consultants. The options and performance
rights issued may be subject to performance criteria and are issued to directors and employees of the Company to increase goal
congruence between executives, directors and shareholders. Options and performance rights granted carry no dividend or
voting rights.
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Notes to the
Consolidated Financial Statements (continued)
Operating assets and liabilities
This section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a result.
Liabilities relating to the Group’s financing activities are addressed in the capital structure and finance costs section.
Accounting Policies
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 current when:
-
-
it is expected to be realised or intended to be sold or consumed in a normal operating cycle;
it is held primarily for the purpose of trading; it is expected to be realised within twelve 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 twelve
months after the reporting period.
All other assets are classified as non-current.
-
A liability is current when:
-
-
-
-
All other liabilities are classified as non-current.
it is expected to be settled in a normal operating cycle;
it is held primarily for the purpose of trading;
it is due to be settled within twelve months after the reporting period; or
there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
Deferred tax assets and liabilities, when recognised, are classified as non-current.
24. TRADE AND OTHER RECEIVABLES
Current
GST receivable
Fuel tax credit receivable
Trade debtors
Other debtors
Total
Non-current
Bank guarantees (restricted cash)
Total
Accounting Policies
Consolidated
2021
$’000
2020
$’000
2,789
207
-
507
3,503
656
656
1,412
290
349
5,024
7,075
570
570
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 Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other
receivables are recognised at amortised cost, less any allowance for expected credit losses.
GOODS AND SERVICES TAX
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office (‘ATO’).
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 ATO is included with other receivables or payables in the statement of financial position.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
25. INVENTORIES
Current
Consumable stores
Ore stockpiles – at cost
Ore stockpiles – at net realisable value
Gold in circuit – at net realisable value
Total current
Consolidated
2021
$’000
4,766
7,777
6,927
6,648
2020
$’000
3,751
6,726
2,980
2,322
26,118
15,779
(a) Amounts recognised in profit or loss
Write-ups of inventories on hand at 30 June 2021 to net realisable value amounted to $68,010 (2020: $1,187,718).
Net realisable value changes to inventories during the year are recognised in profit and loss.
Accounting Policies
INVENTORY
Gold bullion, gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost and net
realisable value. Cost is determined by the weighted average method and comprises direct purchase costs and an appropriate
portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in converting ore into gold
bullion. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and costs of selling the final product, including royalties.
Consumable stores are valued at the lower of cost and net realisable value. The cost of consumable stores is measured on an
average basis.
Inventories expected to be sold (or consumed in the case of stores) within 12 months after the reporting date are classified as
current assets, all other inventories are classified as non-current.
KEY JUDGMENTS
Inventories
Ore stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the
number of contained gold ounces based on assay data, and the estimated processing plant metal recovery percentage.
Stockpile tonnages are verified by periodic surveys.
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Notes to the
Consolidated Financial Statements (continued)
26. TRADE AND OTHER PAYABLES
Current
Trade payables
Accrued expenses
Other creditors
Total
Accounting Policies
Consolidated
2021
$’000
9,976
19,363
950
30,289
2020
$’000
17,992
15,206
1,258
34,456
TRADE AND OTHER PAYABLES
These amounts represent liabilities for goods and services provided to the Group 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.
ANNUAL LEAVE
A liability is recognised for the amount expected to be paid to an employee for annual leave they are presently entitled to as a
result of past service. The liability includes allowances for on-costs such as superannuation and payroll taxes, as well as any future
salary and wage increases that the employee may be reasonably entitled to.
DEFINED CONTRIBUTION SUPERANNUATION EXPENSE
Contributions to defined contribution superannuation plans are recorded in the period in which they are incurred.
Wiluna Mining | Annual Report 2021 Notes to the
Consolidated Financial Statements (continued)
27. PROVISIONS
Current
Annual leave payable
Balance at 30 June
Non-Current
Long service leave
Rehabilitation
Balance at 30 June
Provision for rehabilitation
Balance at 1 July
Provisions re-measured during the year
Provision used during the year
Unwinding of discount
Balance at 30 June
Note
12
Consolidated
2021
$’000
2,050
2,050
194
34,076
34,270
31,238
2,813
-
25
34,076
2020
$’000
1,443
1,443
136
31,238
31,374
25,349
5,620
(14)
283
31,238
The provision for mine rehabilitation and closure on acquired tenements has been recognised at each reporting date.
The provision is based on the net present value of the current life of mine model.
Accounting Policies
PROVISIONS
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a
finance cost.
LONG SERVICE LEAVE
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have
earned in return for their service up to reporting date, plus related on costs. The benefit is discounted to determine its present
value and the discount rate is the yield at the reporting date on high-quality corporate bonds that have maturity
dates approximating the terms of the Group’s obligations.
KEY JUDGMENTS
Site rehabilitation
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or mined.
The Group’s mining and exploration activities are subject to various laws and regulations governing the protection of the
environment. The Group 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.
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Notes to the
Consolidated Financial Statements (continued)
Other disclosures
28. SHARE-BASED PAYMENTS
Options and performance rights are issued to directors, employees and service providers. The options and performance rights
issued may be subject to performance criteria and are issued to directors and employees of the Company to increase goal
congruence between employees, directors and shareholders. Options and performance rights granted carry no dividend or
voting rights.
SUMMARY OF OPTIONS GRANTED
The following table illustrates the number (‘No.’) and weighted average exercise prices (‘WAEP’) of, and movements in, share
options issued under the Employee Option Plan during the year:
At beginning of reporting period
Granted during the period:
- Employees and service providers
Forfeited during the period
Exercised during the period
Expired during the period
Consolidation (100:1)
Balance the end of reporting period
Exercisable at end of reporting period
2021
2020
No.
WAEP
No.
8,444,209
$3.076
766,677,036
WAEP
$0.035
995,423
(549,347)
(20,699)
(6,736,386)
-
2,133,200
756,462
-
-
-
$3.000
-
$2.700
$7.614
100,951,392
(21,036,347)
-
(2,200,000)
(835,947,872)
8,444,209(i)
7,456,386(i)
-
-
-
$0.332
-
$3.076(i)
$3.483(i)
(i) Note: These figures are post-consolidation of the Company’s securities, being 100:1, completed on 25 May 2020.
Weighted average remaining contractual life
Range of exercise prices
Weighted average fair value of entitlement offer options granted during the year
Weighted average fair value of employee and service providers’ options granted
during the year
Weighted average fair value of directors’ options granted during the year
2021
2020(i)
2.5 years
$0.00 - $8.00
$0.000
0.9 years
$0.00 - $8.00
$0.000
$1.150
$0.000
$1.300
$0.000
(i) Note: These figures are post-consolidation of the Company’s securities, being 100:1, completed on 25 May 2020.
KEY ESTIMATES
Equity-based payments
The fair value of options granted to directors, executives and contractors is recognised as an expense with a corresponding
increase in contributed equity. The fair value is measured at grant date and recognised over the period during which the
directors, executives and contractors becomes unconditionally entitled to the options.
The fair value at grant date is determined using an option pricing model that takes into account the exercise price, the term
of the option, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the option, the
share price at grant date and expected price volatility of the underlying share, the expected divided yield and the risk-free
interest rate for the term of the option.
Wiluna Mining | Annual Report 2021
Notes to the
Consolidated Financial Statements (continued)
28. SHARE-BASED PAYMENTS (continued)
OPTION PRICING MODEL
The following table lists the inputs to the Hoadley 3b Hybrid ESO-Relative TSR v Index valuation model used for the year ended
30 June 2021:
Fair value
at grant
date per
option
$
$1.112
$1.294
Number
of options
811,985
183,438
Estimated
volatility
%
100%
100%
Life of
option
until expiry
(years)
4
4
Exercise
price
$
$0.00
$0.00
Share price
at grant
date
$
$1.455
$1.720
Risk free
interest
rate
%
0.42%
0.30%
Allottee
Directors & employees
Director
The following table lists the inputs to the Black-Scholes & Monte Carlo pricing models used for the year ended 30 June 2020:
Fair value
at grant
date per
option
$
$1.30
$1.30
Number
of options
824,995(i)
137,748
Estimated
volatility
%
Life of
option
(years)
90%
90%
4
4
Exercise
price
$
$0.00
$0.00
Share price
at grant
date
$
$1.30
$1.30
Risk free
interest
rate
%
2.16%
2.16%
Allottee
Directors & employees
Directors & employees
(i) Note: These figures are post-consolidation of the Company’s securities, being 100:1, completed on 25 May 2020.
29. RELATED PARTIES
KEY MANAGEMENT PERSONNEL COMPENSATION
The key management personnel compensation included in employee benefits expense and share-based payments (note 28)
is as follows:
Short-term employee benefits
Long-term employee benefits
Post employment benefits
Termination benefits
Total compensation
Consolidated
2021
$’000
2,783
211
160
82
3,236
2020
$’000
2,165
335
129
-
2,629
CONTROLLED ENTITIES
The consolidated financial statements include the assets, liabilities and results of the following wholly-owned subsidiaries:
Name of controlled entity
Scaddan Energy Pty Ltd
Zanthus Energy Pty Ltd
Lignite Pty Ltd
Wiluna Gold Pty Ltd
Kimba Resources Pty Ltd
Wiluna Operations Pty Ltd
Country of
incorporation
Consolidated entity company holding the
investment
Australia
Australia
Australia
Australia
Australia
Australia
Wiluna Mining Corporation Limited
Scaddan Energy Pty Ltd
Scaddan Energy Pty Ltd
Wiluna Mining Corporation Limited
Wiluna Gold Pty Ltd
Wiluna Gold Pty Ltd
Wiluna Mining Corporation Limited is the parent entity of the Group.
% Entity Interest
2021
2020
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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Notes to the
Consolidated Financial Statements (continued)
29. RELATED PARTIES (continued)
TRANSACTIONS WITH RELATED ENTITIES
XAVIER GROUP PTY LTD (‘XAVIER’)
Mr Milan Jerkovic is an officer and co-owner of Xavier, a company who provides consulting and corporate advisory services to
the Group. During the year, Xavier was paid $729,182 (2020: $318,217) for consulting services provided to the Group. $336,182
(2020: $40,468) was outstanding at balance date.
All transactions were made on normal commercial terms and conditions, and at market rates.
LOANS TO/ FROM RELATED PARTIES:
There were no loans from related parties as at 30 June 2021 and 30 June 2020.
30. JOINT VENTURES AND ASSOCIATES
Joint Operation
Joint Operation Parties
Principal Activities
30 June 2021
Interest %
30 June 2020
Interest %
Wilconi JV
Wiluna
A-Cap Resources Limited
Exploration
20%
20%
The joint venture operations are not separate legal entities. They are contractual arrangements between participants for the
sharing of costs and outputs and do not in themselves generate revenue and profit. The joint operations are of the type where
initially one party contributes tenements with the other party earning a specified percentage by funding exploration activities;
thereafter the parties often share exploration and development costs and output in proportion to their ownership of joint
operation assets.
31. PARENT ENTITY INFORMATION
The following information is for the parent entity, Wiluna Mining Corporation Limited, at 30 June 2021. The information
presented here has been prepared using consistent accounting policies as detailed in the relevant notes of this report.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Issued capital
Reserves
Accumulated losses
Total equity
Total comprehensive (loss)/profit of the parent
There are no contingent liabilities of the parent entity as at the reporting date.
2021
$’000
60,794
194,890
2020
$’000
13,994
128,189
255,684
142,183
(62,988)
(90)
(63,078)
(5,973)
(72)
(6,045)
297,760
6,493
(111,647)
192,606
(4,742)
236,866
6,177
(106,905)
136,138
11,849
Wiluna Mining | Annual Report 2021
Notes to the
Consolidated Financial Statements (continued)
32. COMMITMENTS
FINANCE LEASES
The Group holds finance leases for the acquisition of motor vehicles and heavy mobile equipment. The agreements
incorporate a fixed rate between of 2% and 12% (2020: 2% and 12%), monthly repayments and expiry dates between
June 2020 and June 2026:
Not longer than one year
Longer than one year, but not longer than five years
Longer than five years
Total
Consolidated
2021
$’000
699
701
941
2,341
2020
$’000
168
105
20
293
CONTRACTUAL COMMITMENTS
In May 2021, the Group extended its agreement with Synergy for the supply of gas to the Matilda-Wiluna Gold Operation out
to 2024. The terms of these agreement commit the Group to purchasing a minimum amount of gas for the term of the contract.
As at 30 June 2021, at the current contract price, the Group had commitments to purchase gas for the remaining term of
$4,200,000 (2020: $1,379,000).
During FY21, the Group’s agreements with APA and Goldfields Gas Transmission Pty in relation to gas transportation to
the Matilda-Wiluna Gold Operation, were extended out to 2023 with no other amendments made to the terms. The terms
of the agreements commit the Group to transporting a minimum monthly amount of gas for the term of the contract. As at
30 June 2021, at the current contract prices, the Group had commitments for the use of the pipeline for the remaining term
of $2,524,000 (2020: $710,000).
Not longer than one year
Longer than one year, but not longer than five years
Longer than five years
Total
Consolidated
2021
$’000
2,842
3,881
-
6,723
2020
$’000
1,627
462
-
2,089
Additionally, the Company has a limited commitment to deliver and sell 1.65% of its monthly gold production to Osisko
Bermuda Limited at a 70% discount to the prevailing spot gold price (but limited to at a price not higher than US$600 per ounce).
As at 30 June 2021, the Company had 3,756 ounces of gold remaining to be delivered under this arrangement.
The Company pays an indefinite royalty to Franco Nevada, being 3.6% of revenue (net of refining costs, gold freight and the
2.5% Western Australian State Government royalty).
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Notes to the
Consolidated Financial Statements (continued)
33. CONTINGENT ASSETS AND LIABILITIES
CONTINGENT ASSETS:
As part of the farm-in and Joint Venture Agreement with A-Cap Resources Limited on the exploration tenements (‘project’)
owned by the Group, the following contingent assets exist:
•
$1 million in cash and issuing A-Cap Resources Limited’ shares equal to $1.5 million on exclusive right to earn 20%
participant interest on the project by A-Cap Resources Limited (Third Earn in Interest).
CONTINGENT LIABILITIES:
As part of the Underground Mining Labour and Equipment Hire and Maintenance contract executed on 1 July 2020 with
Murray Engineering Pty Ltd (‘The Contractor’), the following contingent liability exists at 30 June 2021 in the event that
Wiluna Operations Pty Ltd (‘The Principal’) deems that services are no longer required for the underground mining operations
(provided that the Contractor is not in breach of its obligations):
•
For those specific items of equipment set out in the Scope of Works, the Principal shall either pay the termination fee
calculated to purchase the redundant items of equipment, (initially being $5.7m when the contract was executed on
1 July 2020, reducing/amortising in line with the remaining term of the 4 year contract) or shall pay the fixed costs of
equipment up to the point the equipment can be re-deployed by the Contractor to another project.
34. AUDITOR’S REMUNERATION
Audit services – RSM Australia Partners
- Auditing or reviewing the financial report
- Other services
- Other services- RSM UK
Total
Consolidated
2021
$’000
2020
$’000
137
-
32
169
137
3
-
140
35. SUBSEQUENT EVENTS
On 21 July 2021, Mr Colin Jones and Mr Hansjoerg Plaggemars were appointed as non-executive directors and on 31 July 2021,
Mr Anthony James retired as non-executive director.
There are no other matters or circumstances that have arisen since the end of the financial year which significantly affected
or could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in
future financial years.
36. ROUNDING
The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Report) Instrument 2016/91 and in
accordance with that class order, amounts in the financial statements have been rounded off to the nearest thousand dollars,
or in certain cases, to the nearest dollar.
Wiluna Mining | Annual Report 2021
Directors’ Declaration
In accordance with a resolution of the directors of Wiluna Mining Corporation Limited, I state that:
1.
In the opinion of the directors:
(a) The financial statements, notes and additional disclosures included in the directors’ report designated as audited,
are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the
financial year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
2.
3.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2021.
The directors draw attention to the notes to the financial statements, which includes a statement of compliance
with International Financial Reporting Standards.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the board
Milan Jerkovic
Executive Chair
Perth, 30 August 2021
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Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
To the Members of Wiluna Mining Corporation Limited
Opinion
We have audited the financial report of Wiluna Mining Corporation Limited (Company) and its subsidiaries
(Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
Giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended; 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 (Code) that are relevant to our audit of the financial report
in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Wiluna Mining | Annual Report 2021
Independent Auditor’s Report (continued)
139
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.
Key audit matter
How our audit addressed this matter
Mine properties - Refer to Note 12 and 13 in the financial statements
At 30 June 2021, the Group held mine properties with
a carrying value of $135 million. The carrying value of
these assets is considered a key audit matter due to
the significant judgement involved in determining the
appropriate accounting treatment.
Areas of judgement include:
• The transfer of the exploration and evaluation
asset to mine properties during the year;
• Application of the units of production method in
determining the amortisation charge. This includes
determining the appropriate mine reserve estimate
and the cost allocation attributable to each asset;
and
• The recognition and measurement of the deferred
stripping asset, which involves determining the
date of commercial production, identifying the
components within the ore body being stripped,
determining the costs relating to the stripping
in
activity and estimating the stripping ratio
accordance with the Life of Mine Plan.
Our audit procedures included:
included an assessment of
• Reviewing management’s amortisation models
and agreeing key inputs to supporting information.
the work
This
performed by management’s expert in respect of
the Life of Mine Plan and the mine reserve
estimate, including the competency and objectivity
of the expert;
• Testing
the mathematical accuracy of
the
amortisation rates applied;
• Reviewing management’s assessment that the
technical feasibility and commercial viability of
extracting a mineral resource was demonstrable,
and that exploration and evaluation assets are
properly transferred to mine properties;
• Agreeing a sample of the additions, including the
transfer of the exploration and evaluation asset to
mine properties during the year to supporting
documentation to ensure that the amounts were
capital in nature; and
• Assessing whether the recognition of the deferred
stripping asset was consistent with
the
requirements of Interpretation 20: Stripping Costs
in the Production Phase of a Surface Mine,
including
the date of
commercial production and the identification of the
relevant ore body.
the determination of
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140
Independent Auditor’s Report
Key audit matter
How our audit addressed this matter
Impairment of Group’s Matilda-Wiluna Gold Mine cash-generating unit - Refer to Note 11, 12,13 and 20 in the
financial statements
The Group performs impairment assessments when
events or changes in circumstances occur in respect
of mining production from the Group’s Matilda-Wiluna
Gold Mine cash-generating unit (CGU).
The CGU is comprised of processing plant, right of use
assets and mine properties, with a carrying value of
$225 million at the reporting date.
Impairment indicators were identified during the
current financial year in respect of the CGU, which
caused management
impairment
assessment in accordance with AASB 136 Impairment
of Assets.
to perform an
Management’s assessment of
recoverable
amount of the CGU was performed using a value in
use model, which involved significant judgements,
assumptions and estimates.
the
The value in use model was based on expected future
cash flows, which are inherently uncertain and are
affected by a number of factors as set out in the Life
of Mine Plan, including reserves and production
estimates, economic factors such as discount rate,
gold price, estimate of production costs, foreign
currency exchange rate and future capital expenditure
and the resource valuation.
Management concluded that impairment of the CGU
was not required for the year ended 30 June 2021.
We determined this area to be a key audit matter due
to the significant account balances and the judgement
involved in the preparation of the value in use model
as discussed above.
Our audit procedures included:
• Assessing management’s determination of
allocating the non-current assets to a single CGU
based on the nature of the Group’s business and
the manner in which results are monitored and
reported;
• Assessing the appropriateness of the value in use
model prepared by management;
• Challenging
the
key
assumptions used in the value in use model,
including the:
reasonableness
of
- Future production levels and operations
costs;
- Future commodity prices and exchange
rates;
- Estimated reserves and resources;
- Discount rate applied; and
-
Life of Mine Plan;
• Checking the mathematical accuracy of the value
in use model and reconciling input data to
supporting evidence, such as approved budgets
and considering the reasonableness of these
budgets;
• Performing sensitivity analyses to consider the
judgements,
impact of
assumptions and estimates on the recoverable
amount and
impairment
impact on
assessment of the CGU; and
changes
key
the
the
in
• Assessing the adequacy of the disclosures in the
financial statements.
Wiluna Mining | Annual Report 2021
Independent Auditor’s Report (continued)
141
Key audit matter
How our audit addressed this matter
Provision for rehabilitation - Refer to Note 27 in the financial statements
As a result of the Group’s past activities, there is an
obligation to rehabilitate and restore mine sites. As at
30 June 2021, the Group has brought to account a
provision for rehabilitation of $34 million.
We considered this to be a key audit matter due to the
significant management judgement and estimates
involved in assessing the provision for rehabilitation
including:
• Determination of costs to be incurred in future
years and its timing;
• Complexity involved in the quantification of the
provision based on areas disturbed; and
• The methodology used to calculate the provision
amount to ensure compliance with Australian
Accounting Standards.
Our audit procedures included:
• Obtaining an understanding of
the process
involved in the determination of the provision;
• Checking the mathematical accuracy of the model
used to calculate the provision;
• Reviewing the reasonableness of the inflation
rate, discount rate and timing of the rehabilitation
cashflows assumptions used in the model;
• Reviewing areas of disturbances and estimated
costs on a sample basis by agreeing to supporting
documents;
• Ensuring the movement in the provision has been
accounted for in accordance with Australian
Accounting Standards; and
• Assessing the appropriateness of the disclosures
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 2021, 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 have no realistic
alternative but to do so.
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142
Independent Auditor’s Report
Auditor's responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the Directors' Report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Wiluna Mining Corporation Limited, for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
David Wall
Partner
RSM Australia Partners
Perth, WA
Dated: 30 August 2021
Wiluna Mining | Annual Report 2021
ASX Additional Shareholder Information
SHAREHOLDING
The distribution of members and their holdings of equity securities in the Company is
Number Held as at 21 September 2021
Number of Holders
Fully Paid Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 – 10,000
10,001 - 100,000
100,001 and over
Totals
1,572
1,195
434
512
94
3,807
788,962
3,102,393
3,338,200
15,572,236
135,505,493
158,307,284
%
0.50%
1.96%
2.11%
9.84%
85.60%
100%
The number of holders with less than a marketable parcel of fully paid ordinary shares is 743 holding a total of 176,558 shares.
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders as at 21 September 2021 (based on substantial shareholder notices received by the Company):
Name
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
AND ITS AFFILIATES
FRANKLIN RESOURCE, INC. AND ITS AFFILIATES
Number of Fully Paid
Ordinary Shares Held
% Held of Issued
Ordinary Capital
55,260,360
6,000,000
34.91%
5.98%
VOTING RIGHTS
ORDINARY SHARES
In accordance with the Company’s Constitution, on a show of hands every member present in person or by proxy or attorney
or duly authorised representative has one vote. On a poll every member present in person or by proxy or attorney or duly
authorised representative has one vote for every fully paid ordinary share held.
TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest ordinary fully paid shareholders at 21 September 2021:
Name
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SPARTA AG
CITICORP NOMINEES PTY LIMITED
MR MAXIN GEYZER
BRISPOT NOMINEES PTY LTD
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
HEIDELBERGER BETEILIGUNGSHOLDING AG
MR SIMON CATT
DEUTSCHE BALATON AKTIENGESELLSCHAFT
2 INVEST AG
BNP PARIBAS NOMINEES PTY LTD - ACF CLEARSTREAM
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – EUROCLEAR BANK
BNP PARIBAS NOMINEES PTY LTD - DRP
MR MILAN JERKOVIC
ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
Total
Number of Fully Paid
Ordinary Shares Held
% Held of Issued
Ordinary Capital
21,728,103
17,057,319
14,950,000
10,316,293
6,410,000
5,769,956
4,911,112
4,903,345
4,085,529
3,264,659
3,120,000
3,113,661
2,822,400
2,756,000
2,476,256
1,914,968
1,864,692
1,619,309
1,253,202
1,250,000
115,586,804
13.73%
10.77%
9.44%
6.52%
4.05%
3.64%
3.10%
3.10%
2.58%
2.06%
1.97%
1.97%
1.78%
1.74%
1.56%
1.21%
1.18%
1.02%
0.79%
0.79%
73.01%
143
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Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021
144
ASX Additional Shareholder Information (continued)
UNLISTED OPTIONS
The unlisted options on issue at 21 September 2021:
Details of Holders
Various holders – issued pursuant to ESOP
Various holders – issued pursuant to ESOP
Lind Asset Management XIV, LLC
Various holders – issued pursuant to ESOP
Various holders – issued pursuant to ESOP
Number of
Holders
Exercise
price
2
19
1
16
41
Nil1
Nil1
$8.00
Nil1
Nil1
Expiry
Date
31 Dec 2021
30 Jun 2023
13 Feb 2024
30 Jun 2024
30 Jun 2025
Number of
options Held
7,661
651,015
720,000
725,722
1,507,530
1. Zero priced options issued to employees pursuant to the terms and conditions of the Company’s Employee Share Option Plan (ESOP).
Wiluna Mining | Annual Report 2021
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Corporate OverviewReview of OperationsFinancial ReportAdditional InformationNotes to the Consolidated Financial StatementsSustainabilityWiluna Mining | Annual Report 2021 Wiluna Mining Corporation Ltd
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1 Altona Street
West Perth
WA 6005
wilunamining.com.au