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Seabridge GoldANNUAL REPORT
2019
DIRECTORS
Ms Katina Law (Chair)
Mr David Lawrence Hughes (Lorry)
Ms Kelly Amanda Ross
COMPANY SECRETARY
Mrs Bianca Taveira
PRINCIPAL PLACE OF BUSINESS
159 Stirling Highway
Nedlands WA 6009
Telephone +61 8 9389 9021
www.yandalresources.com.au
REGISTERED OFFICE
159 Stirling Highway
Nedlands WA 6009
SHARE REGISTRY
AUDITORS
STOCK EXCHANGE LISTING
Boardroom Pty Limited
Level 12
225 George Street
Sydney NSW 2000
Telephone 1300 737 760
Rothsay Auditing
Level 1
Lincoln House
4 Ventnor Avenue
West Perth WA 6005
Telephone + 61 8 9486 7094
Australian Securities Exchange
Home Exchange: Perth
Code: YRL
REVIEW OF OPERATIONS
The principal activities of the Company are mineral exploration in the North-Eastern and Eastern Goldfields of Western Australia. The
Company is targeting the discovery of large structurally controlled Archaean Lode gold or Orogenic gold mineralisation such as the
nearby Jundee, Bronzewing, Cockburn-Lotus, Centenary-Darlot and Kanowna Belle gold deposits.
Regional map of the Company’s gold projects, greenstone belts, regional towns and significant gold deposits.
Exploration programs during the year accelerated significantly after the successful capital raising and ASX listing in December 2018.
Geological data compilation, targeting and drill design dominated the first half of the year with Air-core and reverse circulation (“RC”)
drilling and Resource compilation activities dominating the second half.
Significant gold results were returned from all prospects tested and provided the Company with strong encouragement to expand its
programs. Drilling was particularly successful at the Ironstone Well project (Flushing Meadows and Flinders Park prospects) and at the
Gordons project (Gordons Dam prospect). The Company completed over 15,000m of Air-core and RC drilling and in most cases
improved the prospectivity and potential of the prospects to host significant gold deposits.
Ironstone Well Project
The majority of exploration drilling was completed at the Flushing Meadows prospect with smaller reconnaissance programs
completed at the Flinders Park, Quarter Moon and Oblique prospects.
The Flushing Meadows initial exploration programs were completed to confirm the location and grade of historic gold intercepts,
provide quality assurance and quality control data followed by reconnaissance Air-core drilling along strike. Both programs returned
favourable results and major Resource style RC drilling programs were undertaken which culminated in the compilation of an initial
Mineral Resource Estimate (“MRE”) for the deposit. The MRE was completed subsequent to the end of the financial year, released to
the ASX on the 24 September 2019 and is summarised as follows;
September 2019 Flushing Meadows Mineral Resource Estimate (0.5g/t Au Lower Grade Cut-off). For full details of the MRE (refer
Yandal Resources Ltd’s ASX announcement dated 24 September 2019).
Oz
473
Tonnes
Tonnes
10,353
710,322
147,552
Indicated
Au (g/t)
1.42
1.55
1.60
Material
Type
Oz
Laterite
2,203
Oxide
109,562
Transition
37,221
41,795
Fresh
Total
190,849
The model is reported within a geological wireframe above an average depth of 130m below surface (maximum 210m) and a nominal 0.5g/t Au
lower cut-off grade for all material types. Classification is according to JORC Code Mineral Resource Categories. Totals may vary due to rounded
figures’
47,824
35,444 1,803,863
742,181
1,132,379
43,518 3,726,247
Inferred
Au (g/t)
1.13
1.28
1.24
1.15
1.23
Total
Au (g/t)
1.18
1.35
1.30
1.15
1.29
58,177
2,514,185
889,733
1,132,379
4,594,474
Oz
1,730
74,118
29,612
41,795
147,236
868,227
Tonnes
7,609
1.56
Refer Competent Persons Statement at the end of the Operations Report.
The MRE contains a higher-grade component of 2.8Mt @ 1.63g/t Au for 147,000oz (> 1.0g/t Au lower cut-off grade) with numerous
mineralisation envelopes open at depth. The majority of the MRE reports to the Inferred Resource Category and it is likely that with
infill drilling to nominal spacing of 20-25m a large portion could be upgraded to the higher confidence Indicated Resource Category.
In addition, approximately 0.4Mt of material has been modelled >0.5g/t Au within the mineralisation wireframes that have insufficient
data density to be included in a Resource Category. A number of these areas will be targeted for infill and extensional RC drilling early
next year.
Upon evaluation of the results from Flushing Meadows and adjacent areas it became apparent that there is significant potential to
discover new gold mineralisation along strike on the Barwidgee Shear as a large portion of historic exploration is considered to have
been ineffective.
The Company’s strategy going forward at the Ironstone Well project is to target an expansion of the Flushing Meadows gold deposit
as mineralisation is open particularly at depth. There is potential to intercept further mineralisation by following up intercepts
including; 10m @ 1.62g/t Au from 98m, 2m @ 7.07g/t Au from 34m, 18m @ 2.26g/t Au from 91m, 23m @ 1.77g/t Au from 47m and
26m @ 1.06g/t Au from 38m (Refer to Yandal Resources Ltd announcement dated 14 August 2019).
Along strike and adjacent to the Flushing Meadows deposit small reconnaissance style drilling programs were conducted at the
Flinders Park, Oblique and Quarter Moon prospects to confirm historic mineralisation. Good results were returned and in particular
from RC drilling at Flinders Park including; 15m @ 2.03g/t Au from 77m and 26m @ 1.69g/t Au from 38m (Refer to Yandal Resources
Ltd announcements dated 20 December 2018 and 4 July 2019).
The 12km strike zone along the Barwidgee Shear Zone between Flinders Park in the south and the Oblique prospect in the north will
be a key focus area for Resource growth and discovery going forward. Historic Resources have been defined at the Oblique and
Quarter Moon prospects and the mineralisation is open and under-explored providing the Company with walk up exploration targets.
Key exploration activities completed during the year at the Ironstone Well project included;
Exploratory and Resource RC drilling to improve geological understanding and demonstrate size potential of the Flushing
Meadows deposit within the currently defined 1.8km strike zone;
Maiden MRE for Flushing Meadows;
Air-core drilling up to 800m along strike north west from Flushing Meadows deposit area returned significant results requiring
follow-up drilling;
Reconnaissance drilling at the Flinders Park (Air-core and RC), Quarter Moon (Air-core) and Oblique (Air-core) prospects to
confirm historic mineralisation and generate new targets for follow-up;
Reinterpretation of regional airborne geophysical data and field investigations including the prospective Barwidgee Shear Zone
in preparation for follow-up Air-core drilling traverses.
Regional geology map of the Ironstone Well gold project showing mining tenements, the Barwidgee Shear Zone, the Flushing
Meadows deposit area and other priority prospects.
Oblique
Prospect
E53/1882
E53/1963
Quarter Moon
Prospect
Flushing Meadows
Deposit
Moiler
Thrust
Flinders Park
Prospect
In addition, a number of early stage development activities were commenced in order to provide scoping and feasibility study data
for potential mining operations. These include;
Metallurgical test work on available RC samples from a number of depth intervals across Flushing Meadows;
Flora and Fauna Surveys;
Preliminary geotechnical and hydrogeological studies.
To advance the prospect further over the next year the Company intends to commence Heritage Surveys, additional Mining Lease
applications, advanced metallurgical studies, mine design, a mining proposal and mine closure plan.
Three-dimensional longitudinal representation of the September 2019 Flushing Meadows initial Mineral Resource Estimate block
model by grade range.
Barwidgee Project
At the Barwidgee project which is contiguous with the Ironstone Well project, exploration activities focussed on small RC and Air-core
drilling programs at the Rosewall prospect with database compilation and exploration targeting at a number of other prospects in the
Sims Find and Coppan areas. Encouraging results were returned from Rosewall and follow-up is required. Intercepts included; 10m @
2.41g/t Au from 0m, 18m @ 1.00g/t Au from 6m and 1m @ 0.55g/t Au from 1m (Refer to Yandal Resources Ltd announcements dated
21 March and 4 July 2019).
New soil sampling programs were initiated at the end of the reporting period to the north east of Sims Find with results yet to be
returned.
Mt McClure Project
The Mt McClure project contains a number of historic prospects and open pit mines within a short haulage distance on existing haul
roads from the 2Mtpa Bronzewing processing facility owned by Echo Resources Ltd (ASX: EAR). During the year exploration activities
were focussed on confirming historic mineralisation, defining new exploration targets and assessing the potential for the definition of
Mineral Resources.
Confirmation RC drilling was completed at the Challenger Way South prospect which intersected the targeted mineralised structures
however returned low grades (Refer to Yandal Resources Ltd announcement dated 20 December 2018). Further drilling is required as
historic data suggests there is potential to define a small Mineral Resource.
Two deep RC holes for 378m were completed beneath the south end of the Success open pit and were designed to intersect potential
south plunging high grade mineralisation within volcanogenic sediments. Both holes appeared to intersect the intended target horizon
however, low grades were also returned including 9m @ 0.74g/t Au from 180m and 2m @ 2.59g/t Au from 68m (Refer to Yandal
Resources Ltd announcement dated 1 April 2019).
Further drilling is planned at Success and at other historic mining areas within the project as historic data suggests there is potential
to define significant Mineral Resources at beneath predominantly oxide open pits.
Gordons Gold Project
The most advanced prospect within the project is Gordons Dam which is located 36km north east of Kalgoorlie-Boulder and 24km
north along strike from the Kanowna Belle mining centre. To date the Company has discovered significant gold mineralisation within
clays and palaeochannel sediments over a 400m strike zone. Importantly RC drilling to explore for the primary source of the oxide
mineralisation returned exciting intercepts from structurally controlled mafic and porphyry rock types including; 15m @ 0.95g/t Au
from 80m, 8m @ 1.16g/t Au from 100m and 3m @ 2.61g/t Au from 89m. Follow-up Air-core drilling to expand the target area provided
further encouragement with significant mineralisation returned from multiple bottom of hole samples including; 7m @ 0.56g/t Au
from 49m, 1m @ 0.46g/t Au from 45m, 1m @ 0.80g/t Au from 40m, 5m @ 2.44g/t Au from 40m and 7m @ 0.71g/t Au from 48m
(Refer to Yandal Resources Ltd announcement dated 6 May 2019).
To better define the size of the target along strike a sub-audio magnetic geophysical survey was undertaken with results received in
August 2019. The survey generated eight new targets and follow-up drilling programs have been designed for completion in the
September quarter 2019.
In addition, a number of holes will test beneath old workings and anomalous rock chip samples at the Lady Clara and Dickens Custer
prospects respectively.
Competent Person Statement
The information in this document that relates to Exploration Results, geology and data compilation is based on information co mpiled by Mr Trevor
Saul, a Competent Person who is a Member of The Australian Institute of Mining and Metallurgy (AusIMM). Mr Saul is the Exploration Manager of
Yandal Resources. He is a full-time employee of Yandal Resources and holds shares and options in the Company.
Mr Saul has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he
is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Saul consents to the inclusion in this announcement of the matters based on this information in the form and context
in which it appears.
The information in this announcement that relates to the Flushing Meadows Mineral Resource Estimate is based on information compiled and
generated by Andrew Bewsher, an employee of BM Geological Services Pty Ltd (“BMGS”). BMGS consents to the inclusion, form and context of the
relevant information herein as derived from the original resource reports. Mr Bewsher has sufficient experience 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 JORC ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Regional geology map of the Gordons gold project showing individual prospects with the location of planned drill holes and the
Sub Audio Magnetic geophysical survey area.
Your Directors present their report on Yandal Resources Limited for the financial year ended 30 June 2019.
DIRECTORS
The following persons held office as Directors of Yandal Resources Limited during the financial period and up to the date of this report
unless otherwise noted:
Ms Katina Law
Mr David Lawrence Hughes
Ms Kelly Amanda Ross
Non-Executive Chair
Managing Director
Non-Executive Director
INFORMATION ON DIRECTORS AND OFFICERS
MS KATINA LAW BCom, CPA, MBA, GAICD, NON-EXECUTIVE CHAIR (appointed 1 July 2018)
Katina Law has over 27 years’ experience in the mining industry covering corporate and site based roles across several continents. She
is currently the Executive Chair of Ardea Resources Ltd (ASX:ARL). She has worked with a number of ASX listed resources companies
in strategic financial advisory and general management roles. Ms Law has worked on several development and evaluation projects
which were later subject to corporate transactions including the Deflector gold and copper project and the King Vol polymetallic zinc
project. Ms Law was Executive Director and CEO of East Africa Resources Limited from 2012 to 2015, and also held senior positions at
Newmont Mining Corporation’s Batu Hijau copper gold project in Indonesia and their head office in Denver, USA and at LionOre
International based in Perth.
Ms Law has a Bachelor of Commerce degree from UWA, is a Certified Practising Accountant and has an MBA from London Business
School. She is a currently a non-executive Director of headspace National Youth Mental Health Foundation.
Current and Former Directorships held in the past three years:
Ardea Resources Limited
Non-Executive Director/Chair
Appointed 7 November 2016
Ms Law has no other public company directorships.
MR DAVID LAWRENCE HUGHES BSc (Geol) MAusImm, MANAGING DIRECTOR (appointed 6 April 2018)
Mr Hughes is an Economic Geologist with over 24 years’ experience and was recently Executive Director of Horizon Minerals Limited
formerly Intermin Resources Ltd (ASX: HRZ formerly IRC) and Managing Director and CEO of South Boulder Mines Ltd (now ASX: DNK
and ASX: DKM) from 2008 – 2013. He has held executive and senior management positions on mining and development projects for
companies including Energy Metals Ltd, CSA Global, Rio Tinto and Barrick. Mr Hughes has comprehensive mining, exploration and
development experience from numerous gold mining projects in Western Australia.
Current and Former Directorships held in the past three years:
Executive Director
Intermin Resources Limited
Mr Hughes has no other public company directorships.
Appointed 1 June 2016, Resigned 31 January 2018
MS KELLY AMANDA ROSS BBus, CPA, GradDipCSP, AGIS, NON-EXECUTIVE DIRECTOR (appointed 6 April 2018)
Ms Ross is a qualified accountant holding a Bachelor of Business (Accounting) and has the designation CPA from the Australian Society
of Certified Practicing Accountants. Ms Ross is a Chartered Secretary with over 25 years’ experience in the mining industry.
Ms Ross has overseen company expansion and wealth creation during her career firstly as a senior accountant for Resolute Ltd
(“Resolute”) from 1987 to 2000. Ms Ross was part of the team that floated Independence Group NL (ASX: IGO), joining as CFO and
Company Secretary of the Company in 2001. IGO was listed on the ASX in 2002 and in the same year purchased and recommissioned
the Long Nickel Mine. Independence Group received the Digger of the Year Award in 2011 and then jointly with Anglo Gold Ashanti
in 2014 for the Tropicana Gold Project. Ms Ross was a Director of IGO from 2002 to the end of 2014.
Current and Former Directorships held in the past three years:
Musgrave Minerals Ltd (ASX: MGV)
Non-Executive Director
Appointed 26 May 2010
Ms Ross has no other public company directorships.
MRS BIANCA TAVEIRA, COMPANY SECRETARY
Mrs Taveira is an experienced company administrator and manager who has acted as Company Secretary to a number of unlisted
public and ASX listed natural resource companies for over two decades. During this time Mrs Taveira has been involved in a number
of initial public offerings, reverse takeover transactions, corporate transactions and capital raisings. Mrs Taveira has a corporate and
compliance background and is experienced with administration of the shareholder registry, the ASX Listing Rules, mining tenement
management and the Department of Mines regulations. Mrs Taveira is currently the Company Secretary of Reward Minerals Ltd (ASX:
RWD) and Horizon Minerals Limited (formerly Intermin Resources Ltd) (ASX: HRZ (formerly IRC)).
CORPORATE INFORMATION
Yandal Resources Limited is a Company limited by shares that was incorporated on 16 April 2004 and is domiciled in Australia. The
Company was converted to a public company and changed its name from Orex Mining Pty Ltd to Yandal Resources Limited on 27
March 2018. The Company listed on the Australian Stock Exchange on 14 December 2018 (ASX: YRL).
PRINCIPAL ACTIVITIES
The principal continuing activity of the Company during the year was gold exploration.
RESULTS OF OPERATIONS
The results for the year ended 30 June 2019 was a loss after income tax benefit of $670,115 (2018: $239,021 loss).
EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
2019
¢
(1.69)
(1.69)
2018
¢
(10.2)
(10.2)
REVIEW OF OPERATIONS
Refer to the Operations Report for detailed information on the Company’s exploration activities over the past year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no other significant changes to the state of affairs during the year, other than outlined in the Activities Report, and as
follows:
a) On 14 December 2018, the Company listed on the Australian Stock Exchange (ASX: YRL) and issued 25,000,000 shares at an issue
price of 20 cents each raising $5,000,000.
b) On 20 June 2019, the Company lodged a non-renounceable pro-rata rights issue to Eligible Shareholders of approximately
13,369,587 New Shares, on the basis of 1 New Share for every 4 Shares held at an issue price of 22 cents per New Share and
approximately 6,684,793 New Options on the basis of 1 free attaching New Option for every 2 New Shares issued, with each New
Option having an exercise price of 27 cents and an expiry date of 30 June 2021.
EVENTS AFTER REPORTING DATE
On 29 July 2019, the Company issued 10,969,555 Shares and 5,484,785 Unlisted Options with an exercise price of 27 cents and an
expiry date of 30 June 2021, following the completion of the Rights Issue which raised approximately $2,413,302.
On 14 August 2019, the Company issued 2,400,072 Shares and 1,200,036 Unlisted Options with an exercise price of 27 cents and an
expiry date of 30 June 2021, being the remaining shortfall shares under the 1 for 4 Non-Renounceable Pro-Rata Rights Issue.
Total funds raised from above share issue is $2,941,318 before share issue costs.
On 24 September 2019, the Company completed an initial Mineral Resource for the Flushing Meadows gold deposit.
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly
affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years.
FUTURE DEVELOPMENTS
In the opinion of the Directors it would prejudice the interests of the Company to provide additional information, beyond that reported
in this Annual Report, relating to likely developments in the operations and the expected results of those operations in financial years
ended subsequent to 30 June 2019.
DIVIDENDS
No amount has been paid or declared by way of dividend. The Directors do not recommend that any dividend be paid.
MEETINGS OF DIRECTORS
The number of meetings held during the year ended 30 June 2019, and the number of meetings attended by each Director were:
Director
K Law
D Hughes
K Ross
Full Meetings
of Directors
Eligible to
Participate
3
3
3
Number
Attended
3
3
3
In addition to the above meetings several matters were dealt with by circular resolution.
DIRECTOR SHARE AND OPTION HOLDINGS
As at the date of this report, the interests of the Directors in the shares of the Company were:
Ordinary Shares
Options
Exercise price 25 cents,
expiry 31 December 2021
Direct
Interest
-
-
Indirect
Interest
565,000
2,915,154
Direct
Interest
-
-
Indirect
Interest
1,000,000
1,950,000
Options
Exercise Price 27 cents,
expiry 30 June 2021
Direct
Interest
Indirect
Interest
-
-
32,500
90,909
-
156,251
-
500,000
-
15,626
Director
K Law
D Hughes
K Ross
SHARES UNDER OPTION
Unissued ordinary shares of Yandal Resources Limited under option as at the date of this report are as follows:
Nature
Expiry Date
Exercise Price of Options
Number under Option
Unlisted options
Unlisted options
31 December 2021
30 June 2021
25 cents
27 cents
6,450,000 *
6,684,821
* 5,950,000 options are subject to 24 months escrow.
Option holders do not have any rights to participate in any issues of shares or other interests in the Company or any other entity.
There have been no unissued shares or interests under option of any controlled entity within the Company during or since the end of
the reporting period.
No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of any other
body corporate.
Remuneration Report (Audited)
The information provided in this remuneration report has been audited as required by section 300A of the Corporations Act 2001.
A Principles Used to Determine Amount and Nature of Remuneration
All remuneration paid to Directors and Executives is valued at the cost to the Company and expensed. Shares given to Directors and
Executives are valued as the difference between the market price of those shares and the amount paid by the Director or Executive.
Options are valued using the Black-Scholes or Binomial methodologies.
The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time, commitment and
responsibilities. The Board determines payments to the Non-Executive Directors and reviews their remuneration annually based on
market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount
of fees that can be paid to Non-Executive Directors is subject to approval by shareholders at the annual general meeting (currently
$300,000). Fees for Non-Executive Directors are not linked to the performance of the Company. However, to align Directors’ interests
with shareholder interests, the Directors are encouraged to hold shares in the Company and are able to participate in employee option
plans.
The objective of the Company’s executive reward framework is set to attract and retain the most qualified and experienced Directors
and Senior Executives. The Board ensures that executive reward satisfies the following criteria for good reward governance practices:
competitiveness and reasonableness
acceptability to shareholders
transparency
capital management
Directors’ Fees
A Director may be paid fees or other amounts as the Directors determine where a Director performs special duties or otherwise
performs services outside the scope of the ordinary duties of a Director. A Director may also be reimbursed for out of pocket expenses
incurred as a result of their directorship or any special duties.
Performance Based Remuneration
The Company uses both short term and long term incentive programs to balance the short and long term aspects of business
performance, to reflect market practice, to attract and retain key talent and to ensure a strong alignment between the incentive
arrangements of Executives and the creation and delivery of shareholder return.
Executives are encouraged by the Board to hold shares in the Company and it is therefore the Company’s objective to provide
incentives for participants to partake in the future growth of the Company and, upon becoming shareholders in the Company, to
participate in the Company’s profits and dividends that may be realised in future years. The Board considers that this equity
performance linked remuneration structure is effective in aligning the long-term interests of Company executives and shareholders
as there exists a direct correlation between shareholder wealth and executive remuneration.
Company Performance, Shareholder Wealth and Directors’ and Executives’ Remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and Executives. This is
facilitated through the issue of options or performance rights to Directors and Executives to encourage the alignment of personal and
shareholder interests. The Company believes this policy will be effective in increasing shareholder wealth.
B Details of Remuneration of Key Management Personnel of the Company
Details of the nature and amount of each element of remuneration of each Director and key management personnel of the Company
for the financial year are as follows:-
2019
Directors
K Law
D Hughes
K Ross
Consulting
Fees
$
-
-
-
-
Salary
$
Directors’ Fee
$
-
21,692
200,000
-
200,000
-
16,269
37,961
Post
Employment
Superannuation
$
Share Based
Payments
Expense
$
Total
$
Performance
Related
%
2,061
19,000
1,545
22,606
93,100
116,853
186,200
405,200
46,550
64,364
325,850
586,417
79.6
45.8
72.3
There were no termination benefits paid during the year to any Director or key management personnel.
C Share-Based Compensation
(i) Options
During the year, the Board were issued options by the Company as incentive to perform their role from the date of ASX listing. The
options are linked to future performance of the Company. The fair value of the incentive options is $325,850 as determined using the
Black-Scholes valuation methodology. This amount was recognised as a share based payment, refer Note 22 to the financial
statements.
The options were granted on 5 October 2018 with an expiry date of 31 December 2021 and an exercise price of $0.25 per option.
The Director’s option values are as follows:
Directors Grant Date
No of
Options
Granted
Fair value
per option
at Grant
Date
Vested at
30 June
2019
Total value
of Options
$
No of
options
exercised
Options
exercised
$
Balance of
options at
year end
K Law
5 Oct 2018
1,000,000
$0.0931
1,000,000
93,100
-
-
1,000,000
D Hughes
5 Oct 2018
2,000,000
$0.0931
2,000,000
186,200
(50,000)
12,500
1,950,000
K Ross
5 Oct 2018
500,000
$0.0931
500,000
46,550
-
-
500,000
Fair values at grant date are independently determined using a Black & Scholes option pricing model that takes into account the
exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.
D Service Contracts
Non-Executive Directors are not employed under written contracts. Mr Hughes has entered into an executive service agreement with
the Company under which he is engaged as Managing Director. Non-Executive Directors may be paid consulting fees at commercial
rates calculated according to the amount of time spent on the Company’s business. All Directors may receive consulting fees on an
hourly basis which are paid from time to time for specialist services beyond normal duties. No Directors have received loans from the
Company during the annual period.
E Key Management Personnel Disclosures
Key Management Personnel Interests in the Shares and Options of the Company
Director Shares
Interests of the Directors in the shares and options of the Company at 30 June 2019 and 30 June 2018 were:
Balance at
start of the
year
Shares issued
during the
year
Options
exercised
during the
year
Shares
disposed of
during the
year
Balance at the
end of the
year
2019
K Law (appointed 1 July 2018)
D Hughes
K Ross
-
2,333,336
-
500,000
250,000
125,000
-
-
50,000
-
-
M Ruane (resigned 1 July 2018)
11,800,010*
2018
D Hughes (appointed 6 April 2018)
K Ross (appointed 6 April 2018)
M Ruane (appointed 29 December 2017)
I Gilmour (resigned 29 December 2017)
*Balance held at date of resignation
14,133,346
875,000
50,000
-
-
-
20
20
2,333,336
-
11,800,010
-
14,133,346
-
-
-
-
-
-
-
-
-
-
-
-
-
(20)
(20)
500,000
2,633,336
125,000
-
3,258,336
2,333,336
-
11,800,010
-
14,133,346
Director Options
The number of options over ordinary shares in the Company held during the financial year by each Key Management Personnel of
Yandal Resources Limited including their personally related parties are set out below:
2019
K Law
D Hughes
K Ross
Balance at
start of the
year
-
-
-
-
Options
issued
1,000,000
2,000,000
500,000
3,500,000
Options
expired
during the
year
Exercised
during the
year
-
(50,000)
-
(50,000)
-
-
-
-
Options sold
-
-
-
-
Balance at
the end of
the year
Vested and
exercisable
at the end of
the year
1,000,000
1,000,000
1,950,000
1,950,000
500,000
500,000
3,450,000
3,450,000
There were no options on issue for the year ended 30 June 2018.
[End of remuneration report]
NON-AUDIT SERVICES
The auditors have not provided any non-audit services to the Company in the current financial year.
INDEMNIFICATION AND INSURANCE OF OFFICERS OR AUDITOR
During the financial year, the Group maintained an insurance policy which indemnifies the Directors and Officers of Yandal Resources
Limited in respect of any liability incurred in connection with the performance of their duties as Directors or Officers of the Group.
The Group's insurers have prohibited disclosure of the amount of the premium payable and the level of indemnification under the
insurance contract.
AUDITOR’S INDEPENDENCE DECLARATION
In accordance with section 307C of the Corporations Act 2001, the Directors have obtained a Declaration of Independence from Rothsay
Auditing, the Company’s auditors, as presented on page 15 of this year’s financial report.
ENVIRONMENTAL REGULATION
The Company’s operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of
a state or territory.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
This report is made in accordance with a resolution of the Directors and signed for on behalf of the Directors by:
MR LORRY HUGHES
Director
27 September 2019
Perth, WA
The Directors of the Company declare that:
(a)
The attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the financial position and performance of the Company; and
complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements.
The financial statements and notes thereto also comply with International Financial Reporting Standards, as disclosed in
Note 1 and other mandatory professional reporting requirements.
The Directors have been given the declarations required by s.295A of the Corporations Act 2001.
There are reasonable grounds to believe that Company will be able to pay its debts as and when they become due and
payable.
(b)
(c)
(d)
This Declaration is made in accordance with a resolution of the Board of Directors and is signed for on behalf of the Directors by:
MR LORRY HUGHES
Director
27 September 2019
Perth, WA
Revenue from continuing operations
Gain on debt forgiveness
Total
Exploration expenditure written off
Professional fees
Administration fees
Employee benefits expenses
Share based payments
Depreciation expenses
Travel expenses
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) after income tax for the year
Other comprehensive income/(loss):
Items that will be reclassified subsequently to profit or loss
Items that will not be reclassified subsequently to profit or loss
Other comprehensive income/(loss) for the year
Note
2
2019
$
86,773
-
86,773
2018
$
-
95,752
95,752
2
(35,614)
(207,719)
(91,026)
(112,391)
(75,344)
(24,923)
(11,723)
(90,408)
22(a)
(418,950)
(3,253)
(20,310)
-
-
-
(670,115)
(239,021)
3
-
-
(670,115)
(239,021)
-
-
-
-
-
-
Total comprehensive income/(loss) attributable to Members of Yandal Resources Limited
(670,115)
(239,021)
Basic profit/(loss) cents per share
Diluted profit/(loss) cents per share
13
13
(1.69)
(1.69)
(10.2)
(10.2)
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other
Total Current Assets
NON-CURRENT ASSETS
Capitalised exploration expenditure
Property, plant and equipment
Total Non-Current Assets
Total Assets
CURRENT LIABILITIES
Trade and other payables
Total Current Liabilities
NON-CURRENT LIABILITIES
Borrowings
Total Non-Current Liabilities
Total Liabilities
Net Assets
EQUITY
Contributed equity
Reserves
Accumulated (losses)/profits
Total Equity
Note
2019
$
2018
$
4
5
6
7
8
9
3,545,670
65,589
5,968
52,064
11,559
55,700
3,617,227
119,323
2,207,224
436,743
24,340
2,231,564
5,848,791
-
436,743
556,066
277,162
277,162
57,201
57,201
10
-
-
277,162
164,000
164,000
221,201
5,571,629
334,865
11
5,694,639
387,510
12(b)
12(a)
599,750
(722,760)
5,571,629
-
(52,645)
334,865
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
Balance at 1 July 2017
Total comprehensive income/ (loss) for the year
Transactions with owners in their capacity as owners:
Shares issued during the year
Balance at 30 June 2018
Balance at 1 July 2018
Total comprehensive income/ (loss) for the year
Transactions with owners in their capacity as owners:
Shares issued during the year
Share issue costs
Options issued during the year
Balance at 30 June 2019
Contributed
Equity
$
10
-
387,500
387,510
387,510
-
5,848,325
(541,196)
-
5,694,639
Share Based
Payments
Reserve
$
-
-
-
-
-
-
-
-
599,750
599,750
Accumulated
Losses
$
Total Equity
$
186,376
186,386
(239,021)
(239,021)
-
(52,645)
387,500
334,865
(52,645)
334,865
(670,115)
(670,115)
-
-
-
5,848,325
(541,196)
599,750
(722,760)
5,571,629
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Note
2019
$
2018
$
(308,009)
(91,611)
49,469
-
Net cash provided by/(used in) operating activities
19
(258,540)
(91,611)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Payments for acquisition of tenements
Capitalised exploration expenses
Net cash provided by/(used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issues
Repayment of borrowings
Share issue costs
Net cash provided by financing activities
(27,273)
(60,000)
-
-
(1,156,260)
(213,235)
(1,243,533)
(213,235)
5,446,600
387,500
(164,000)
(286,921)
4,995,679
-
(30,600)
356,900
Net increase/(decrease) in cash held
Cash and cash equivalents at the beginning of the financial year
3,493,606
52,054
52,064
10
Cash and Cash Equivalents at the End of the Financial Year
19
3,545,670
52,064
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.
1 GENERAL INFORMATION
These financial statements and notes represent those of Yandal Resources Limited (the “Company” or “Entity”). Yandal Resources
Limited is a Company limited by shares incorporated and domiciled in Australia.
1a Significant accounting policies
Statement of compliance
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing
relevant and reliable information about transactions, events and conditions. The financial statements and notes also comply with
International Financial Reporting Standards.
Basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards,
Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and
the Corporations Act 2001.
The financial report has been prepared on an accrual basis and is based on historical costs, modified, where applicable, by the
measurement at fair value of selected non-current assets, financial assets and financial liabilities. Material accounting policies adopted
in preparation of this financial report are presented below and have been consistently applied unless otherwise stated. The
presentation currency is Australian dollars.
New accounting standards and interpretations
In the year ended 30 June 2019, the Company has reviewed all of the new and revised Standards and Interpretations issued by the
AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2018.
Adoption of new and amended accounting standards
A number of new or amended standards became applicable for the current reporting period and the Company had to change its
accounting policies as a result of the adoption of the following standards:
AASB 9 Financial Instruments; and
AASB 15 Revenue from Contracts with Customers.
The impact of the adoption of these standards and the new accounting policies are disclosed below. The impact of these standards,
and the other new and amended standards adopted by the Company, has not had a material impact on the amounts presented in the
Company's financial statements.
AASB 9 Financial Instruments - Impact of Adoption
AASB 9 replaces the provisions of AASB 139 that relate to the recognitions, classification and measurement of financial assets and
financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.
The adoption of AASB 9 from 1 July 2018 resulted in no material changes in accounting policies and adjustments to the amounts
recognised in the financial statements. The Company assessed which business models apply to the financial assets held by the
Company and has classified its financial instruments into the appropriate AASB 9 categories.
There was no impact on the amounts recognised in the financial statements as a result of adoption.
AASB 15 Revenue from Contracts with Customers - Impact of Adoption
The Company has adopted AASB 15 from 1 July 2018 which has no material impact to the amounts recognised in the financial
statements.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not
been early adopted by the Company for the annual reporting period ended 30 June 2019. The Company’s assessment of the impact
of these new or amended Accounting Standards and Interpretations, most relevant to the Company, are set out below.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 'Leases'
and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a 'right-of-use' asset will
be capitalised in the statement of financial position, measured as the present value of the unavoidable future lease payments to be
made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as
personal computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is
recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be
recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future
restoration, removal or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation
charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance
costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to
lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results will be
improved as the operating expense is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification
within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either
operating or financing activities) component. For lessor accounting, the standard does not substantially change how a lessor accounts
for leases. The Company will adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed by the Company.
The Company has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year
ended 30 June 2019. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the
new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Company accounting policies.
Critical accounting judgements and key sources of estimation uncertainty
In the application of IFRS, management is required to make judgements, estimates and assumptions about carrying values of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis
of making the judgements. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the
revision affects both current and future periods.
i) Significant accounting judgements
In the process of applying the Company’s accounting policies, management has made the following judgements, apart from those
involving estimations, which have the most significant effect on the amounts recognised in the financial statements:
Capitalisation of exploration and evaluation expenditure
The Company has capitalised significant exploration and evaluation expenditure on the basis either that this is expected to be
recouped through future successful developments (or alternatively sale) of the Areas of Interest concerned or on the basis that it
is not yet possible to assess whether it will be recouped. As at 30 June 2019, the carrying value of capitalised exploration
expenditure is $2,207,224.
ii) Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often based on estimates and assumptions of future events. The key
estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets
and liabilities within the next annual reporting period are:
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including
whether the Company decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration
and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future technological changes, costs
of drilling and production, production rates, future legal changes (including changes to environmental restoration obligations) and
changes to commodity prices.
1b Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the national
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are
recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The
relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred
tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability.
No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a
business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It
is calculated using the tax rates that have been enacted or are substantially enacted by the reporting date.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change
will occur in income taxation legislation and the anticipation that the Company will derive sufficient future assessable income to
enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
1c Trade and Other Receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for
doubtful debts. Trade receivables are due for settlement no more than 30 days from the date of recognition.
Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off. A
provision for bad debts is established when there is objective evidence that the Company will not be able to collect all amounts due
according to the original terms of receivables. The amount of the provision is recognised in the statement of comprehensive income.
1d Trade and Other Payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and which
are unpaid, together with assets ordered before the end of the financial year. The amounts are unsecured and are usually paid within
30 days of recognition.
1e Cash and Cash Equivalents
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid instruments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities on the statement of financial position.
1f Comparative Figures
Where necessary, comparative figures have been adjusted to conform to the presentation in the current year.
1g Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the
statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the
establishment of loan facilities, which are not incremental costs relating to the actual draw-down of the facility, are recognised as
prepayments and amortised on a straight-line basis over the term of the facility.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at
least 12 months after the reporting date.
1h Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of associated goods and services tax (GST), unless the GST incurred
is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from,
or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are
recoverable from, or payable to, the taxation authority, are presented as operating cash flows.
1i Contributed Equity
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 from the proceeds.
Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in the cost
of acquisition as part of the purchase consideration.
If the entity reacquires its own equity instruments, eg as the result of a share buy-back, those instruments are deducted from equity and
the associated shares are cancelled. No gain or loss is recognised in the statement of comprehensive income and the consideration paid
including any directly attributable incremental costs (net of income taxes) is recognised directly in equity.
1j Impairment of Assets
Assets and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed
for impairment whenever events or changes in circumstances indicate that they might be impaired. An impairment loss is recognised
for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s
fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows which are largely independent of the cash flows from other assets or groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment
at each reporting date.
1k Earnings per Share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted
average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during
the year.
(ii) 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.
1l Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only
carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities
in the area have not yet reached a stage which permits reasonable assessment of the economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against operating results in the year in which the decision
to abandon the area is made. When production commences the accumulated costs for the relevant area of interest are classified as
development costs and amortised over the life of the project area according to the rate of depletion of the economically recoverable
reserves.
Where independent valuations of areas of interest have been obtained, these are brought to account. Subsequent expenditure on
re-valued areas of interest is accounted for in accordance with the above principles. A regular review is undertaken of each area of
interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
At 30 June 2019 the Directors considered that the carrying value of the mineral tenement interests of the consolidated entity was as
shown in the Statement of Financial Position and no further impairment arises other than that already recognised.
1m Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns,
trade allowances and amounts collected on behalf of third parties. Revenue is recognised for major business activities as follows:
(i) Interest Income
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
(ii) Other Services
Other debtors are recognised at the amount receivable and are due for settlement within 30 days from the end of the month in
which services were provided.
1n Share-Based Payments
Share-based compensation benefits are provided to employees via the Company’s Employee Incentive Plans. The incentive plans
consist of the short term and long term incentive plans for Executive Directors and other Executives and the employee share scheme
for all other employees.
The fair value of rights granted under the short term and long term incentive plans is recognised as an employee benefits expense
with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the rights
granted, which includes any market performance conditions and the impact of any non-vesting conditions but excludes the impact of
any service and non-market performance vesting conditions.
Non-market vesting conditions and the impact of service conditions are included in assumptions about the number of rights that are
expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of rights that are expected to
vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in
the statement of comprehensive income, with a corresponding adjustment to equity.
The initial estimate of fair value for market based and non-vesting conditions is not subsequently adjusted for differences between
the number of rights granted and number of rights that vest.
When the rights are exercised, the appropriate amount of shares are transferred to the employee. The proceeds received net of any
directly attributable transaction costs are credited directly to equity.
The fair value of deferred shares granted to employees for nil consideration under the employee share scheme is recognised as an
expense over the relevant service period, being the year to which the incentive relates and the vesting period of the shares. The fair
value is measured at the grant date of the shares and is recognised in equity in the share-based payment reserve. The number of
shares expected to vest is estimated based on the non-market vesting conditions. The estimates are revised at the end of each
reporting period and adjustments are recognised in profit or loss and the share-based payment reserve.
1o Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker has been identified as the steering committee that makes strategic decisions.
The standard requires a ‘management approach’, under which segment information is presented on the same basis as that used for
internal reporting purposes. The segments are reported in a manner that is consistent with the internal reporting provided to the chief
operating decision maker.
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. All operating
segments’ operating results are regularly reviewed by the Company’s Managing Director to make decisions about resources to be
allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Managing Director include items directly attributable to a segment as well as those that can
be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters), head
office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible
assets other than goodwill.
2
INCOME AND EXPENSES
Revenue from continuing operations:
Interest received
Other income
2019
$
2018
$
51,711
35,062
86,773
-
-
-
Loss before income tax is arrived at after charging the following items:
Capitalised exploration expenditure written off
35,614
207,719
3
INCOME TAX
Income tax expense
Current tax
Deferred tax
Numerical reconciliation of income tax expense to prima facie tax payable
Profit/(loss) before income tax
Tax at 27.5% (2018: 27.5%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Capitalised exploration expenditure written off
Tax effect of exploration expenditure claimed
Permanent differences
Other timing differences
Tax losses not recognised as an asset
Income Tax Expense
Tax losses and unrecognised temporary differences
The Directors estimate that the potential future income tax benefit at 30 June 2019 in
respect of tax losses not brought to account is $598,123 (2018: $8,608). This benefit for tax
losses will only be obtained if:
the Company derives income of a nature and amount sufficient to enable the benefit
from the deductions for the loss to be realised;
the Company continues to comply with the conditions for deductibility imposed by the
law; and
no changes in tax legislation adversely affect the Company in realising the benefit from
the deductions for the losses.
-
-
-
-
-
-
(670,115)
(239,021)
(184,290)
(65,731)
-
57,123
(367,546)
119,978
(44,639)
476,497
-
-
-
-
8,608
-
4 CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Cash at bank
Cash at bank carries a floating interest rate of 2% (2018: 0%). The above figures are
reconciled to the cash at the end of the financial year as shown in the statement of cash
flows in Note 19.
5 CURRENT ASSETS – TRADE AND OTHER RECEIVABLES
GST assets
Other receivables
6 CURRENT ASSETS - OTHER
Prepayments – capital raising
Prepaid insurance
Total
7 NON-CURRENT ASSETS – CAPITALISED EXPLORATION EXPENDITURE
Capitalised exploration and tenement acquisition costs:
Carrying amount at the beginning of the year
Acquisition of tenements
Acquisition of tenements by share based payments (refer Note 19b (ii) and (iii))
Exploration expenditure capitalised
Amounts written off
The ultimate recoupment of above expenditure relating to exploration is dependent on
successful development and commercial exploitation, or alternatively, sale of the
respective areas of interest.
8 PROPERTY, PLANT AND EQUIPMENT
Plant and equipment at cost
Less provision for depreciation
Reconciliations:
Plant and Equipment
Carrying amount at the beginning of the year
Additions
Depreciation
Carrying amount at the end of the year
2019
$
2018
$
3,545,670
3,545,670
52,064
52,064
63,347
2,242
65,589
-
5,968
5,968
11,559
-
11,559
55,700
-
55,700
436,743
60,000
373,950
1,336,531
-
-
436,743
-
-
-
2,207,224
436,743
27,593
(3,253)
24,340
-
27,593
(3,253)
24,340
-
-
-
-
-
-
-
9 CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Trade payables
Accrued expenses
Other expenses
All amounts are expected to be settled in less than 12 months.
10 NON-CURRENT LIABILITIES - BORROWINGS
Director and shareholder loans
During the year ended 30 June 2019, Director and shareholder loans were repaid in full
upon the Company successfully listing on the ASX. The loan was unsecured and interest
free.
11 CONTRIBUTED EQUITY
Issued capital 53,478,348 ordinary shares fully paid (net of share issue costs)
2019
$
2018
$
218,260
18,000
40,902
277,162
-
47,746
9,455
57,201
-
-
164,000
164,000
5,694,639
5,694,639
387,510
387,510
Movement in issued capital
Balance at the beginning of the financial year
Shares issued under the Public Offer
Shares issued for acquisition of mining tenements
Shares issued from options exercised (refer Note 15d)
Share issue at $0.001
Share issue at $0.075
Share issue costs
Number
2019
Number
2018
$
2019
$
2018
17,500,010
25,000,000
4,770,000
50,000
10
387,510
-
-
-
5,000,000
373,950
12,500
10
-
-
-
-
12,500,000
-
6,158,338
5,000,000
461,875
-
-
(541,196)
12,500
375,000
-
Balance at the End of the Financial Year
53,478,348
17,500,010
5,694,639
387,510
Terms and condition of contributed equity
Ordinary Shares
Ordinary shares have no par value.
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in
the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
12 RESERVES AND ACCUMULATED LOSSES
12a Accumulated Losses
Opening balance
Profit/(Loss) for the year
Closing Balance
12b Reserves
Share based payment reserve (i)
(i) Share-Based Payments Reserve
The share-based payments reserve is used to recognise the fair value of shares, options
and performance rights issued.
Balance at beginning of the year
Fair value of options granted (refer Note 22)
Balance at the end of the year
13 EARNINGS/(LOSS) PER SHARE
Profit/(loss) after tax attributable to members of Yandal Resources Limited
Basic profit/( loss) per share
Diluted profit/(loss) per share
2019
$
2018
$
(52,645)
186,376
(670,115)
(239,021)
(722,760)
(52,645)
599,750
599,750
-
599,750
599,750
-
-
-
-
-
(670,115)
(239,021)
(1.69) cents
(10.2) cents
(1.69) cents
(10.2) cents
Number
Number
Weighted average number of ordinary shares outstanding during the year used in the
calculation of basic and diluted loss per share.
39,639,164
2,351,518
Basic Earnings/(Loss) Per Share
Basic earnings/(loss) per share is determined by dividing the loss after income tax
attributable to members of Yandal Resources Limited by the weighted average number
of ordinary shares outstanding during the financial year, adjusted for any bonus
elements in ordinary shares issued during the year.
Diluted Earnings/(Loss) Per Share
Diluted earnings/(loss) per share adjusts the figures used in the determination of basic
earnings per share by taking into account amounts unpaid on ordinary shares and any
change in earnings per share that will probably arise from the exercise of options
outstanding during the financial year.
Where options exercise prices are above market values (out of the money), no dilutive
impact arises as it increases the loss per share.
14 REMUNERATION OF AUDITORS
Remuneration for audit of financial reports by Rothsay Auditing
19,500
3,000
15 KEY MANAGEMENT PERSONNEL DISCLOSURES
2019
$
2018
$
The persons holding positions as Directors of the Company during the financial year were:
Non-Executive Chair
Ms Katina Law
Mr David Lawrence Hughes Managing Director
Ms Kelly Amanda Ross
Appointed 1 July 2018
Appointed 6 April 2018
Non-Executive Director Appointed 6 April 2018
15a Details of remuneration
Refer to the Remuneration Report contained in the Directors’ Report for details of the
remuneration paid or payable to each member of the Company’s Key Management
Personnel for the year ended 30 June 2019.
The total remuneration paid to Key Management Personnel of the Company and the
Company during the year are as follows:
Short-term benefits
Post-employment benefits
Share based payments
237,961
22,606
325,850
586,417
82,564
7,844
-
90,408
Other Key Management Personnel
There were no other key management personnel in Yandal Resources Limited during the financial year.
See Note 20 for details of loans from key management personnel and any other transactions with key management personnel.
15b Share and option holdings
All equity dealings with Directors have been entered into with terms and conditions no more favourable than those that the entity
would have adopted if dealing at arm’s length.
15c Remuneration options: granted during the financial period ending 30 June 2019
Details of share based payments during the year are contained in Note 22 to the financial statements.
15d Exercise of options by Key Management Personnel
During the year, 50,000 options were exercised by Mr Hughes at an exercise price of $0.25.
There were no other transactions with Key Management Personnel during the year.
16 SEGMENT REPORTING
The entity has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors
(chief operating decision makers) in assessing performance and determining the allocation of resources. The entity operates
predominantly in one business segment which is gold exploration and predominantly in one geographical area which is Western
Australia.
The Company is domiciled in Australia. All revenue from external parties in generated from Australia only. All the assets are located
in Australia.
17 FINANCE FACILITIES
No credit standby facility arrangement or loan facilities existed at 30 June 2019 or 30 June 2018.
18 COMMITMENTS FOR EXPENDITURE
Commitments for minimum expenditure requirements on the mineral exploration assets it
has an interest in are payable as follows:
Within one year
Later than one year but not later than five years
Later than five years
2019
$
2018
$
821,000
850,000
850,000
382,000
780,000
800,000
2,521,000
1,962,000
19 NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of Cash
For the purposes of the statement of cash flows, cash includes cash on hand and in banks
and investments in money market instruments, net of outstanding bank overdrafts. Cash at
the end of the financial year as shown in the statement of cash flows is reconciled to the
related items in the statement of financial position as follows:
Cash at bank
3,545,670
52,064
Reconciliation of Net Cash Used In Operating Activities To Loss After Income Tax
Profit/(loss) after income tax
Depreciation
Capitalised exploration expenditure written off
Gain on debt forgiveness
Other
Share based payment
Movements in:
Receivables
Tax assets
Prepayments
Payables
Net Cash provided by/(used in) Operating Activities
(b) Non cash financing and investing activities
(i) Capitalised exploration expenditure satisfied by loan from Director related entities
(ii) Issue of 4,650,000 shares at $0.075 each to vendors as consideration under the
Tenement Sale Agreements.
(iii) Issue of 120,000 shares at $0.21 each to vendors as consideration for the acquisition
of an exploration and prospecting licence.
(670,115)
2,933
-
-
-
418,950
(2,242)
(51,789)
4,032
39,691
(258,540)
(239,021)
-
207,719
(95,752)
800
-
-
(11,559)
-
46,202
(91,611)
-
259,752
348,750
25,200
-
-
373,950
259,752
20 RELATED PARTIES
Directors
The Directors who held office at any time during the year are as follows:
Ms Katina Law, Mr David Lawrence Hughes and Ms Kelly Amanda Ross.
(a) Director and Associated Party Loans
During the year ended 30 June 2019, Director and shareholder loans were repaid in full upon the Company successfully listing on
the ASX. The loan was unsecured and interest free.
(b) Loans payable to Director and Director Related Entities
Dr Michael Ruane, a former Director and his related entities of which he is a Director:
Opening balance
Loans received
Interest on loan
Repayments made
Debt forgiven
Closing balance
21
FINANCIAL RISK MANAGEMENT AND POLICIES
The Company’s exploration activities are being funded by equity and are not exposed to
significant financial risks. There are no speculative or financial derivative instruments. Funds
are invested for various short term periods to match forecast cash flow requirements.
The Company holds the following financial instruments:
Financial assets
Cash and cash equivalents
Receivables
Financial liabilities
Payables
2019
$
2018
$
164,000
-
-
(164,000)
22,143
237,609
-
-
-
-
(95,752)
164,000
3,545,670
65,589
3,611,259
52,064
11,559
63,623
277,162
277,162
57,201
57,201
The Company’s principal financial instruments comprise cash and short-term deposits. The Company does not have any borrowings.
The main purpose of these financial instruments is to fund the Company’s operations.
The main risks arising from the Company are credit risk, capital risk and liquidity risk. The Board of Directors reviews and agrees
policies for managing each of these risks and they are summarised below:
(a) Credit risk
Management does not actively manage credit risk.
The Company has no significant exposure to credit risk from external parties at year end. The maximum exposure to credit risk at the
reporting date is equal to the carrying value of financial assets at 30 June 2019.
Cash at bank is held with internationally regulated banks.
Other receivables are of a low value and all amounts are current.
(b) Capital risk
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can
continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
(c) Liquidity risk
Maturity profile of financial instruments
Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity funding.
The Company’s exposure to the risk of changes in market interest rates relate primarily to cash assets and floating interest rates. The
Company does not have significant interest-bearing assets and is not materially exposed to changes in market interest rates.
The Directors monitor the cash-burn rate of the Company on an on-going basis against budget and the maturity profiles of financial
assets and liabilities to manage its liquidity risk.
The following table sets out the carrying amount, by maturity, of the financial instruments including exposure to interest rate risk:
< 1 month
1 – 3
months
3 months
– 1 year
1 – 5 years
Over 5
years
Total
Weighted
average
effective
interest rate
%
As at 30 June 2019
Financial Assets:
Cash
Receivables
Financial Liabilities:
Payables
As at 30 June 2018
Financial Assets:
Cash
Receivables
Financial Liabilities:
Payables
3,545,670
65,589
3,611,259
277,162
277,162
52,064
11,559
63,623
277,162
277,162
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,545,670
65,589
3,611,259
277,162
277,162
52,064
11,559
63,623
277,162
277,162
2%
-
-
-
-
0%
-
-
-
-
Sensitivity analysis – interest rates
The sensitivity effect of possible interest rate movements have not been disclosed as they are immaterial.
(d) Net fair value of financial assets and liabilities
Unless otherwise stated, the carrying amount of financial instruments reflect their fair value.
22 SHARE BASED PAYMENTS
(a) In October 2018, 4,500,000 Series A unlisted options were issued to Directors, associates and unrelated parties, with an exercise
price of $0.25 and an expiry date of 31 December 2021.
Of the 4,500,000 Series A unlisted options that were issued, 4,000,000 options are escrowed for the period of 24 months from the
date of listing on the ASX.
During the year ended 30 June 2019, $418,950 was expensed as a share based payment.
The fair value of these options granted was calculated by using the Black-Scholes option valuation methodology and applying the
following inputs:
Weighted average exercise price (cents)
Weighted average life of the options (years)
Weighted average underlying share price (cents)
Expected share price volatility
Risk-free interest rate
Grant date
Expiry date
Value per option
Total value granted
25
3.24
20
75%
2.60%
5 October 2018
31 December 2021
$0.0931
$418,950
(b) In December 2018, 2,000,000 Series A unlisted options were issued to the Lead Manager to the Initial Public Offering, pursuant to
the Company’s prospectus dated 19 October 2018, with an exercise price of $0.25 and an expiry date of 31 December 2021.
The unlisted options issued are escrowed for a period of 24 months from the date of listing on the ASX.
During the year ended 30 June 2019, $180,800 was charged to share issue costs.
The fair value of these options granted was calculated by using the Black-Scholes option valuation methodology and applying the
following inputs:
Weighted average exercise price (cents)
Weighted average life of the options (years)
Weighted average underlying share price (cents)
Expected share price volatility
Risk-free interest rate
Grant date
Expiry date
Value per option
Total value granted
25
3.07
20
75%
2.60%
7 December 2018
31 December 2021
$0.0904
$180,800
23 CONTINGENCIES
There are no contingent assets or liabilities at reporting date.
24 EVENTS AFTER REPORTING DATE
On 29 July 2019, the Company issued 10,969,555 Shares at $0.22 each and 5,484,785 Unlisted Options with an exercise price of 27
cents and an expiry date of 30 June 2021, following the completion of a Rights Issue which raised approximately $2,413,302.
On 14 August 2019, the Company issued a further 2,400,072 Shares at $0.22 each and 1,200,036 Unlisted Options with an exercise
price of 27 cents and an expiry date of 30 June 2021, being the remaining shortfall shares under the 1 for 4 Non-Renounceable Pro-
Rata Rights Issue.
Total funds raised from share issue is $2,941,318 before share issue costs.
On 24 September 2019, the Company completed an initial Mineral Resource for the Flushing Meadows gold deposit.
At the date of the Directors’ Declaration no other matter or circumstance has arisen since 30 June 2019 that has significantly affected or
may significantly affect the operations, results of those operations, or state of affairs of the Company, subsequent to 30 June 2019.
Additional information required by the Australian Stock Exchange Limited Listing Rules, and not disclosed elsewhere in this report.
SHAREHOLDINGS
The names of ordinary shares held by the substantial shareholders as at 13 September 2019 were:
Kesli Chemicals Pty Ltd
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