ANNUAL REPORT
2021
Corporate Particulars ................................................................................ 1
Operations Report .................................................................................... 2
Directors’ Report ..................................................................................... 12
Auditor’s Independence Declaration ....................................................... 20
Independent Auditor’s Report ................................................................ 21
Directors’ Declaration ............................................................................. 25
Statement of Profit or Loss and Other Comprehensive Income ............... 26
Statement of Financial Position ............................................................... 27
Statement of Changes in Equity .............................................................. 28
Statement of Cash Flows ......................................................................... 29
Notes to and Forming Part of the Financial Statements ........................... 30
Shareholder Information ......................................................................... 45
Tenement Schedule ................................................................................ 47
DIRECTORS
Mr Tim Kennedy
Ms Katina Law
Mr David (Lorry) Hughes Managing Director
Non Executive Chair
Non Executive Director
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 gold exploration and developments in the North-Eastern and Eastern Goldfields of Western
Australia. The Company is targeting the discovery of large structurally controlled Archaean Lode or Orogenic gold deposits such as the
very large Jundee, Bronzewing and Kanowna Belle gold mines located nearby.
Regional map of the Company’s gold projects, greenstone belts, regional towns and significant gold deposits
YANDAL
GREENSTONE
BELT
Exploration drilling during the year successfully intercepted new mineralisation at all projects within the Company’s portfolio and has
substantially enhanced the potential for the delineation of a number of new gold deposits. Exploration targeting was also refined to
narrow focus onto prospects evaluated to have potential to host large deposits.
GORDONS GOLD PROJECT
The Gordons Gold project comprises a number of priority prospects within close proximity to the City of Kalgoorlie-Boulder, ore
haulage infrastructure and operating mines. The main exploration focus has been to expand mineralisation along strike and at depth
at the Gordons Dam, Malone and Star of Gordons prospects.
Regional geology map of part of the Gordons gold project showing tenure, individual prospects tested in 2020/21 with completed
and planned drill holes1
Inset map
refer to figure
on page 4
Malone Contact
Alderman Contact
14kms to the
Kanowna Belle
Gold Mine
(ASX: NST)
1 Refer to YRL ASX Announcement dated 11 August 2021.
GORDONS GOLD PROJECT continued
At the Gordons Dam prospect high grade oxide mineralisation was discovered in 2019 and has been defined over a strike length of
~400m occurring beneath ~30m of depleted surficial cover. During the year, substantial reverse circulation (“RC”) and diamond drilling
was completed to explore for mineralisation in primary rocks and to understand the controls on mineralisation.
The highest gold grades at depth occur within sulphide accumulations and steeply dipping north-south striking narrow quartz veins
within basalts and an intrusive granite porphyry unit. The primary mineralisation is structurally complex and a detailed study on the
controls to high-grade mineralisation is underway. Compilation of an initial Mineral Resource Estimate and economic assessment is
planned during 2021/22.
Regional geology plan showing drilling at the Gordons Dam and Malone prospects
Gordon Dam
Prospect
Malone Contact
1 Refer to YRL ASX Announcement dated 11 August 2021.
GORDONS GOLD PROJECT continued
Some significant results returned from the Gordons Dam oxide zone include;
▪ 8m @ 11.0g/t Au from 36m including 1m @ 73.1 g/t Au (YRLRC0335)1
▪ 7m @ 3.5g/t Au from 38m including 1m @ 15.1g/t Au (YRLRC0337)1
▪ 7m @ 1.7g/t Au from 29m including 1m @ 10.3g/t Au (YRLRC0339)1
▪ 23m @ 1.5g/t Au from 40m including 1m @ 22.03g/t Au (YRLRC0307)2
Subsequent to the success at Gordons Dam, step-out Air-core (“AC”) drilling was conducted in along strike and adjacent areas which
resulted in the discovery of the Malone prospect located ~500m to the west of Gordons Dam. Once it was recognised that the
mineralisation is related to a major regional geological contact between mafic and felsic rocks units, exploration drilling was
accelerated to include one AC, two RC and one diamond rig.
Significant oxide and primary gold intercepts were returned from AC and RC drilling over an interpreted strike length of at least 600m
in the Malone Contact zone which is interpreted to extend for a total of ~4.5km within the Company’s tenure. Initial significant RC
and AC intercepts from Malone have received follow-up diamond and RC drilling along ~4km of strike with numerous results due to
be received in 2021/22. Some promising RC results include;
▪ 3m @ 8.2g/t Au from 130m including 1m @ 22.1 g/t Au (YRLRC0579)3
▪ 5m @ 3.6g/t Au from 47m including 1m @ 12.3g/t Au (YRLRC0584)3
▪ 18m @ 0.9g/t Au from 94m (YRLRC0583)3
In addition to prioritising exploration drilling along the Malone Contact, reconnaissance AC drilling commenced on another mafic/felsic
contact located ~500m east of Gordons Dam. This contact is named the Alderman Contact and it is interpreted to occur for over 8km
in strike length within the Company’s tenure. The geological setting of the Alderman Contact is interpreted to be very similar to the
Malone Contact and some encouraging early stage intercepts have been returned that require follow-up in 2021/22.
A further 3.5km to the east from the Gordons Dam prospect is the Star of Gordons prospect where significant shallow historic mine
workings occur less than 2km directly along strike from the Gordon Sirdar gold mine. The mine is owned by FMR Investments Pty Ltd
and utilises conventional underground mining methods at vertical depths below 600m with ore haulage to Coolgardie for conventional
processing.
A first pass reconnaissance RC program was completed in the March Quarter 2021 to test ~1.5km strike length of historic workings
and surficial prospecting areas which returned some encouraging results. There were numerous +1g/t Au intercepts in multiple sub-
parallel zones with the best results returned from the most northern part of the area tested. These include;
▪ 8m @ 4.7g/t Au from 15m including 6m @ 5.9g/t Au (YRLRC0513)4
▪ 10m @ 2.5g/t Au from 27m including 2m @ 6.9g/t Au (YRLRC0514)4
The above results are highly encouraging and a six hole follow-up RC program was completed subsequent to the end of the period to
explore the mineralisation system at depth and immediately along strike.
Given the encouraging results returned from a number of prospects within the Gordons Dam project, aggressive exploration programs
to establish deposit size potential are planned for 2021/22. Due to the excellent location of the project in terms of established mining
infrastructure, the Company is likely to have a number of good options for mining, haulage and processing if economic Mineral
Resources are established.
1 Refer to YRL ASX announcement dated 8 October 2020, 2 Refer to YRL ASX announcement dated 31 August 2020, 3 Refer to YRL ASX announcement dated 11 August
20213, 4 Refer to YRL ASX announcement dated 1 July 2021.
IRONSTONE WELL AND BARWIDGEE PROJECTS
Exploration during the period included advanced targeting to determine the highest priority areas interpreted to have the potential
to host very large gold deposits. Two large areas have been identified that contain recent and historically defined mineralisation which
will become the Company’s focus of exploration in the near term.
Regional geology plan showing key prospects and tenure at the Ironstone Well and Barwidgee projects (refer to inset figures on
pages 7 and 9)
Inset Map refer to
figure on page 7
Inset Map
refer to figure
on page 9
Within the Ironstone Well project the priority target zone is the area immediately surrounding the Flushing Meadows gold deposit.
The area covers some 160km2 extending north-west from the Flinders Park prospect for ~16km toward the Oblique prospect. The
area up to ~10km wide centred on Flushing Meadows includes prospective mafic and felsic rock sequences that have received very
little effective exploration.
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
The Company’s criteria for determining if areas are effectively tested includes if drill holes are angled and drilled to vertical depths
greater than 50m. This is to allow for the particularly deep weathering profile noted within the Yandal Greenstone Belt. Once this
criteria is applied to the drilling database it can be shown that extensive areas within the priority target zone are not effectively tested.
Regional geology plan showing the Flushing Meadows deposit, tenure and ineffectively tested areas along strike and adjacent to
significant prospects (refer to figure on page 6 for location)
At the Flushing Meadows prospect RC and diamond drilling was completed in order to update the 2019 Mineral Resource Estimate
(“MRE”) and to provide sufficient data for inclusion in pit optimisation studies and mining approval activities. The 2020 MRE1 contains
a 40% increase in total Resource ounces compared to the 2019 MRE2.
The Flushing Meadows deposit is comprised of multiple sub-parallel lenses of predominantly oxide and transitional material to depths
of ~100m below surface. The mineralisation is related to the regionally extensive Barwidgee Shear zone and is open at depth and
down plunge.
Initial engineering studies indicate there is potential for a small open pit mine development utilising off-site third-party processing.
Some preparatory works have commenced to support this including applications for Mining and Miscellaneous Licences however,
further exploration to assess the potential for a large discovery nearby is the Company’s preferred strategy.
1 Refer to table below and YRL ASX announcement dated 4 November 2020, 2 Refer to YRL ASX announcement dated 31 August 2020.
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
November 2020 Flushing Meadows Mineral Resource Estimate (0.5g/t Au Lower Grade Cut-off). For full details of the MRE (refer
YRL ASX announcement dated 4 November 2020)
Material
Type
Indicated
Tonnes
89,853
2,015,900
Laterite
Oxide
Transition 35,223
Fresh
Total
2,140,976
Au (g/t) Oz
Inferred
Tonnes
86,671
3,631
86,071 2,246,845
1,160,471
1,360
1,751,484
91,062 5,245,471
Au (g/t) Oz
1.23
1.10
1.10
0.95
1.05
3,422
79,389
40,966
53,440
177,217
Total
Tonnes
176,524
4,262,745
1,195,695
1,751,484
7,386,448
Au (g/t) Oz
1.24
1.21
1.10
0.95
1.13
7,054
165,420
42,325
53,440
268,352
1.26
1.33
1.20
1.32
• The model is reported within a geological wireframe above an average depth of 150m below surface (maximum 220m) 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.
• Yandal Resources’ advise that there is no material depletion by mining within the model area.
• Estimation was performed using Ordinary Kriging.
• The block model was built with 6m north, 3m east and 3m elevation parent block cells.
• The Mineral Resource Estimate has been reported based on utilising open pit mining methodologies. Open pit parameters of minimum 2m downhole mineralisation
width, and a lower cut grade of 0.5 g/t has been used for interpretation.
• Technically the models do not account for mining related edge dilution and ore loss. These parameters should be considered during the mining study as being
dependent on grade control, equipment and mining configurations including drilling and blasting.
Elsewhere within the Ironstone Well priority target zone limited drilling programs confirmed significant mineralisation that requires
substantial follow-up upon completion of heritage surveys and statutory approvals.
Assay results were returned from RC drilling at the Flinders Park, Quarter Moon and Oblique prospects, highlights included;
▪ 14m @ 4.4g/t Au from 45m including 1m @ 42.5g/t Au (YRLRC0474)1 – Flinders Park
▪ 13m @ 2.9g/t Au from 36m including 1m @ 21.5g/t Au (YRLRC0473) 1 – Flinders Park
▪ 2m @ 11.7g/t Au from 80m (YRLRC0478) 1 – Quarter Moon
▪ 12m @ 2.1g/t Au from 5m including 1m @ 16.5g/t Au (YRLRC0479) 1 – Quarter Moon
▪ 2m @ 7.1g/t Au from 83m including 1m @ 14.0g/t Au (YRLRC0475)1 – Quarter Moon
▪ 21m @ 0.9g/t Au from 51m including 4m @ 1.9g/t Au (YRLRC0481)1 - Oblique
Within the contiguous Barwidgee project a priority target zone that has been identified covering ~40km2 of tenure south of the Sims
Find prospect. At Sims Find, RC drilling has intersected significant high-grade gold mineralisation beneath earlier shallow RC intercepts
and historic workings.
The most recent program completed in the June Quarter 2021 comprised 14 angled RC holes for 2,992m at downhole depths between
136-300m2. The holes were designed to extend earlier high-grade gold intersected in shallow RC drilling completed in the December
Quarter 20202. The mineralisation is contained within multiple quartz veins, sulphides and shears hosted within and at the contacts
of a coarse-grained dolerite unit including;
▪ 8m @ 24.3g/t Au from 9m including 1m @ 129g/t Au (YRLRC0457)2
▪ 3m @ 20.8g/t Au from 30m including 1m @ 62.2g/t Au (YRLRC0447)2
▪ 5m @ 6.5g/t Au from 17m including 1m @ 30.4g/t Au (YRLRC0445)2
▪ 9m @ 0.8g/t Au from 189m including 2m @ 2.6g/t Au from 195m (YRLRC1003)3
▪ 1m @ 4.1g/t Au from 58m, 6m @ 1.9g/t Au from 124m including 1m @ 4.4g/t Au from 124m and 1m @ 4.7g/t
Au from 129m and 3m @ 1.7g/t Au from 176m including 1m @ 5.0g/t Au from 176m (YRLRC1007)3
1 Refer to YRL ASX announcement dated 9 March 2021, 2 Refer to YRL ASX announcements dated 22 December 2020 and 2 March 2021, 3 Refer to YRL ASX announcements
dated 1 July 2021.
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
Sims Find mineralisation has been confirmed for over 400m of strike and to at least 150m vertical depth with likely extensions over a
2km strike zone which is open at depth and to the south. Upon receipt of all assays from the program new programs will be designed
to evaluate the potential for the mineralisation to be related to a large intrusive granite located immediately to the south.
The margins of the intrusive granite is a priority target for evaluation as there is mineralisation in limited historic drilling that requires
systematic follow-up. This is planned upon completion of heritage surveys and statutory approvals.
Regional geology plan showing the Sims Find prospect, tenure and the location of the priority intrusive granite target (refer to
figure on page 6 for location)
Sims Find
Prospect
Granite Contact
Targets
Strike
Extension
Targets
Cash Prospect
Strike
Extension
Targets
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
The Ironstone Well and Barwidgee projects are located within the Kultju (Aboriginal Corporation) RNTBC (“Kultju”), Kultju
Determination. The Kultju Aboriginal Corporation is an incorporated body under the Corporations (Aboriginal and Torres Strait
Islander) Act 2006 (Cth) and is the Registered Native Title Body Corporate determined to hold native title rights and interests on trust
for the Kultju Native Title Holders. Central Desert Native Title Services Limited (“Central Desert”) has been authorised by Kultju
Aboriginal Corporation to act as its agent in regard to land access negotiations and agreements.
The Company made good progress this year with Central Desert and Kultju regarding heritage protection and land access agreements
for ongoing exploration.
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 Northern Star Resources Ltd (ASX: NST). The facility is on care and
maintenance however the camp is being utilised by NST to support current mining operations at the nearby Orelia open pit mine.
Plan view of the Mt McClure project showing the regional geology, new Mining Leases and the location of key prospects
MT MCCLURE PROJECT continued
During the year, RC drilling successfully intersected extensions to mineralisation at a number of known prospects and at a new
prospect named HMS Sulphur which is situated in the footwall of the Success deposit. Subsequent to the end of the year, the Company
commenced major RC drilling program to test a number of high priority targets to maximum depths of ~300m.
RC drilling highlights included;
▪ 11m @ 2.6g/t Au from 73m including 1m @ 12.2g/t Au (YRLRC0401)1 – HMS Sulphur
▪ 6m @ 1.6g/t Au from 36m including 1m @ 5.4g/t Au (YRLRC0400) 1 – HMS Sulphur
▪ 2m @ 4.8g/t Au from 178m and 2m @ 5.2g/t Au from 206m (YRLRC0419) 1 – Parmelia Deeps
▪ 5m @ 3.6g/t Au from 84m including 1m @ 8.95g/t Au (YRLRC0410) 1 – Challenger
▪ 19m @ 1.3g/t Au from 39m including 1m @ 5.4g/t Au (YRLRC0418)1 – Challenger
▪ 6m @ 2.8g/t Au from 54m including 1m @ 10.1g/t Au (YRLRC0424)1 – Challenger
There is potential to define new mineralisation capable of being included in a MRE upon all three Mining Leases and significant RC
and diamond drilling programs are in the advanced planning stages should the current program return further encouraging results.
All the historic open pits were mined when gold prices were substantially lower than price ranges seen in recent months.
Competent Person Statement
The information in this document that relates to Exploration Results, geology and data compilation is based on information compiled by Mr Trevor
Saul, a Competent Person who is a Member of The Australasian 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”). Both Andrew Bewsher and BMGS hold shares in the
company. 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’.
1 Refer to YRL ASX announcement dated 23 March 2021.
Your Directors present their report on Yandal Resources Limited for the financial year ended 30 June 2021.
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:
Mr Tim Kennedy
Ms Katina Law
Mr David (Lorry) Hughes
Ms Kelly Ross
Non-Executive Chair
Non-Executive Director
Managing Director
Non-Executive Director
Appointed 17 February 2021, appointed Chair 1 July 2021
Resigned as Chair 1 July 2021
Resigned 17 February 2021
INFORMATION ON DIRECTORS AND OFFICERS
MR TIMOTHY KENNEDY B.App Sc (Geology), MBA, MAusIMM, MGSA
NON-EXECUTIVE CHAIRMAN (appointed 17 February 2021, appointed Chair 1 July 2021)
Mr Kennedy is a geologist with a successful 30+ year career in the mining industry, including extensive involvement in the exploration,
feasibility and development of gold, nickel, platinum group elements, base metals and uranium projects throughout Australia. His
most recent executive role was as exploration manager with Independence Group NL (IGO), which during his 11 years IGO grew from
being a junior explorer to a multi-commodity mining company. Mr Kennedy played a key role as part of the team that represented
IGO on the exploration steering committee with AngloGold Ashanti during the multi-million ounce Tropicana, Havana and Boston
Shaker discoveries and the discoveries by IGO of the Rosie magmatic nickel sulphide deposit; the Triumph VMS deposit and the Bibra
orogenic gold deposit.
Prior to that Mr Kennedy held senior positions with global miner Anglo America, including as Exploration manager – Australia and
Principal Geologist/Team Leader – Australia. He also held senior technical positions with Resolute Limited, Hunter Resources and PNC
Exploration Pty Ltd.
Current and Former Directorships held in the past three years:
Helix Resources Limited
Sipa Resources Limited
Millennium Minerals Limited
Non-Executive Director
Non-Executive Director/Chair
Non-Executive Director
Appointed 16 February 2018
Appointed 13 December 2016, Chair 28 August 2018
Appointed 2 May 2016, Resigned February 2020
Mr Kennedy has no other public company directorships.
MS KATINA LAW BCom, FCPA, MBA, GAICD
NON-EXECUTIVE CHAIR (appointed 1 July 2018, resigned from Chair, 1 July 2021)
Katina Law has over 30 years’ experience in the mining industry covering corporate and site based roles across several continents.
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 currently a non-executive Director of headspace National Youth Mental Health Foundation and DGO Gold Limited (ASX:
DGO).
Current and Former Directorships held in the past three years:
Ardea Resources Limited
DGO Gold Limited
Non-Executive Director/Chair
Non-Executive Director
Appointed 7 November 2016, Resigned 31 July 2020
Appointed 1 June 2020
Ms Law has no other public company directorships.
MR DAVID (LORRY) HUGHES BSc (Geol) MAusImm
MANAGING DIRECTOR (appointed 6 April 2018)
Mr Hughes is an Economic Geologist with over 25 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: None.
Mr Hughes has no other public company directorships.
MS KELLY ROSS BBus, CPA, ACS (CS, CGP)
NON-EXECUTIVE DIRECTOR (appointed 6 April 2018, resigned 17 February 2021)
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 and Chartered Governance Professional with over 30 years’
experience in accounting and administration in the mining industry.
Ms Ross was part of the team that floated Independence Group NL (“IGO”). IGO listed on the ASX in 2002 and Ms Ross was Company
Secretary and CFO for 10 years. Ms Ross was a Director of IGO for 12 years from 2002 to 2014. Ms Ross retired from the Board of IGO
on 24 December 2014.
Prior to IGO, Ms Ross was a senior accountant at Resolute Ltd from 1987 to 2000 during which time Resolute became a gold producer
in Ghana, Tanzania and at several mines in Western Australia.
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).
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 2021 was a loss after income tax benefit of $599,542 (2020: $503,704 loss).
EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
2021
¢
(0.67)
(0.63)
2020
¢
(0.77)
(0.77)
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
Other significant changes to the state of affairs during the year, other than outlined in the Operations Report, are as follows:
In June 2020, the Company announced a Non-renounceable pro-rata entitlement to 1 New Share for every 5 Shares held at an issue
price of 25 cents per New Share.
In August 2020, the Company announced the results of its pro-rata issue, raising $3,342,408 before share issue costs with shares
issued as follows:
• On 20 July 2020, the Company issued 8,498,542 shares
• On 28 July 2020, the Company further allotted 3,551,093 shares
• On 3 August 2020, the Company issued 1,320,000 shares being the remaining shortfall shares under the 1 for 5 Non-
Renounceable Pro-Rata Rights Issue
In October 2020, the Company announced the successful raising of $6 million placement through the issue of 12 million shares.
During the year the Company’s option holders had exercised 6.6M 27 cent options raising approximately $1.798M and 1.56M options
were exercised at 25 cents, raising approximately $390,000.
EVENTS AFTER REPORTING DATE
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 2021.
COVID-19 IMPACT
The full impact of the COVID-19 pandemic continues to evolve at the date of this report. The Company is therefore uncertain as to
the full impact that the pandemic will have on its financial condition, liquidity and future results of operations during 2021 or 2022.
Management continues to actively monitor the global situation and its impact on the Company’s financial condition, liquidity,
operations, suppliers, industry and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb
its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition
or liquidity for the 2021/22 financial year.
The health and wellbeing of all Yandal employees remain a key focus in response to the ongoing COVID-19 pandemic. The work
practices and measures implemented to mitigate COVID-19 related risks have so far proven successful with no known COVID-19 cases
across our workforce and minimal disruption to our operations to date.
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 2021, and the number of meetings attended by each Director were:
Full Meetings of Directors
Audit & Risk Committee Meetings
Remuneration Committee
Meetings
Eligible to
Participate
Number
Attended
Eligible to
Participate
Number
Attended
Eligible to
Participate
Number
Attended
2
5
5
3
2
5
5
3
1
2
2
1
1
2
2
1
1
1
1
1
1
1
1
1
Director
T Kennedy
K Law
D Hughes
K Ross*
*resigned 17 February 2021
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:
Director
T Kennedy
K Law
D Hughes
Ordinary Shares
Unlisted Options
Exercise price 25 cents,
expiry 31 December 2021
Direct
Interest
Indirect
Interest
-
597,500
4,141,381
-
-
-
Direct
Interest
-
-
-
Indirect
Interest
-
1,000,000
1,088,182
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
31 December 2021
25 cents
4,888,182
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.
In the year ended 30 June 2021, the Company provided benefits to employees of the Company in the form of share-based payment
transactions, whereby performance rights convertible to ordinary shares were granted at nil consideration as an employment
incentive. The performance rights were issued with vesting conditions, see Note 21 for details.
The fair value of the rights was determined using a Hoadley’s Barrier 1 model. A total amount of $9,111 is included in the Statement
of Financial Performance and Statement of Changes in Equity for the year ended 30 June 2021. There were no amounts related to
KMP.
The assessed fair value at grant date of performance rights granted to the individuals is allocated equally over the period from grant
date to vesting date. Fair values at grant date are independently determined using a Hoadley’s Barrier 1 model that takes into account
the vesting condition of the rights, 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 rights.
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:-
Directors
Year
Consulting
Fees
$
Salary
$
Directors’
Fee
$
Post
Employment
Superannuation
$
Share Based
Payments
Expense
$
Total
$
Performance
Related
%
T Kennedy Non-Executive Chair (appointed 17 February 2021)
2021
2020
K Law
Non-Executive Director
2021
2020
D Hughes Director
2021
2020
-
-
-
-
-
-
-
-
-
-
13,217
-
48,033
43,667
279,500
231,872
-
-
K Ross
Non- Executive Director (resigned 17 February 2021)
2021
2020
-
-
-
-
22,715
32,750
1,256
-
4,563
4,148
26,552
22,028
2,158
3,111
-
-
-
-
-
-
-
-
14,473
-
52,596
47,815
306,052
253,900
24,873
35,861
-
-
-
-
-
-
-
-
There were no termination benefits paid during the year to any Director or key management personnel.
C SHARE-BASED COMPENSATION
OPTIONS
There were no options issued to the Board as remuneration during the year ended 30 June 2021.
During the year ended 30 June 2019, 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 issued to key
management personnel is $325,850 as determined using the Black-Scholes valuation methodology.
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
2020
Total value
of Options
$
No of
options
exercised
Options
exercised
$
Balance of
options at
year end
T Kennedy
-
-
-
-
-
K Law
5 Oct 2018
1,000,000
$0.0931
1,000,000
93,100
-
-
-
-
-
1,000,000
D Hughes
5 Oct 2018
1,950,000
$0.0931
1,950,000
186,200
861,818
215,455
1,088,182
K Ross*
5 Oct 2018
500,000
$0.0931
500,000
46,550
500,000
125,000
-
*resigned 17 February 2021
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
Mr Hughes has entered into an executive service agreement with the Company under which he is engaged as Managing Director. The
engagement of Mr Hughes under the agreement commenced on 5 February 2018 and continues until terminated by either party. The
Company may terminate the employment without notice upon limited events akin to misconduct or incapacity. Additionally, the
Company may terminate the agreement without cause upon one month's written notice. Mr Hughes may terminate the agreement
without cause on 3 months’ written notice.
Non-Executive Directors are not employed under written contracts. 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 2021 and 30 June 2020 were:
Options
exercised
during the
year
Shares
disposed of
during the
year
Balance at the
end of the
year
2021
T Kennedy
K Law
D Hughes
K Ross (resigned 17 February 2021)
Balance at
start of the
year
Shares issued
during the
year
-
565,000
2,988,654
156,251
-
-
200,000
-
-
32,500
952,727
515,626
2020
K Law
D Hughes
K Ross
3,709,905
200,000
1,500,853
500,000
2,633,336
125,000
3,258,336
65,000
355,318
31,251
451,569
-
-
-
-
-
-
-
-
-
-
-
-
-
-
597,500
4,141,381
671,877
5,410,758
565,000
2,988,654
156,251
3,709,905
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:
Balance at
start of the
year
Options
issued/
acquired
Options
expired
during the
year
Exercised
during the
year
Options sold
2021
T Kennedy
K Law
D Hughes
K Ross*
-
1,032,500
2,040,909
515,626
3,589,035
-
-
-
-
-
*resigned 17 February 2021
2020
K Law
D Hughes
K Ross
1,000,000
1,950,000
500,000
32,500
90,909
15,626
3,450,000
139,035
[End of remuneration report]
Balance at
the end of
the year
Vested and
exercisable
at the end of
the year
-
-
1,000,000
1,000,000
1,088,182
1,088,182
-
-
2,088,182
2,088,182
1,032,500
1,032,500
2,040,909
2,040,909
515,626
515,626
3,589,035
3,589,035
-
-
-
-
-
-
-
-
-
-
32,500
952,727
515,626
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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 Company 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
Company. The Company'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 20 of this year’s financial report.
ENVIRONMENTAL REGULATION
The Company’s Projects are subject to State and Federal laws and regulations regarding environmental matters. The Governments
and other authorities that administer and enforce environmental laws and regulations determine these requirements. As with all
exploration projects and mining operations, the Company's activities are expected to have an impact on the environment, particularly,
if the Company's activities result in mine development. The Company intends to conduct its activities in an environmentally
responsible manner and in accordance with applicable laws.
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
24 September 2021
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
24 September 2021
Perth, WA
Revenue from continuing operations
Total
Exploration expenditure written off
Professional fees
Administration fees
Occupancy expenses
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) for the year
Total comprehensive income/(loss) attributable to Members of
Yandal Resources Limited
Basic profit/(loss) cents per share
Diluted profit/(loss) cents per share
Note
2
2
21(i)
2021
$
25,993
25,993
2020
$
166,425
166,425
(5,594)
(83,551)
(148,291)
(110,012)
(183,824)
(128,703)
(23,698)
(24,724)
(219,035)
(305,054)
(9,111)
(21,960)
(14,022)
-
(11,643)
(6,442)
(599,542)
(503,704)
3
-
-
(599,542)
(503,704)
-
-
(599,542)
(503,704)
12
12
(0.67)
(0.63)
(0.77)
(0.77)
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
Total Liabilities
Net Assets
EQUITY
Contributed equity
Reserves
Accumulated (losses)/profits
Total Equity
Note
2021
$
2020
$
4
5
6
7
8
9
8,047,415
3,384,990
318,133
145,891
3,917
5,255
8,369,465
3,536,136
10,422,822
4,506,326
208,324
18,255
10,631,146
4,524,581
19,000,611
8,060,717
511,186
511,186
119,473
119,473
511,186
119,473
18,489,425
7,941,244
10
19,706,570
8,567,958
11(b)
608,861
599,750
11(a)
(1,826,006)
(1,226,464)
18,489,425
7,941,244
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
Contributed
Equity
$
Share Based
Payments
Reserve
$
Accumulated
Losses
$
Total Equity
$
Balance at 1 July 2019
5,694,639
599,750
(722,760)
5,571,629
Total comprehensive income/ (loss) for the year
-
Transactions with owners in their capacity as owners:
Shares issued during the year
Share issue costs
Balance at 30 June 2020
2,941,319
(68,000)
8,567,958
-
-
-
(503,704)
(503,704)
-
-
2,941,319
(68,000)
599,750
(1,226,464)
7,941,244
Balance at 1 July 2020
8,567,958
599,750
(1,226,464)
7,941,244
Total comprehensive income/ (loss) for the year
-
Transactions with owners in their capacity as owners:
Shares issued during the year
Share issue costs
Issue of employee performance rights
Balance at 30 June 2021
11,531,206
(392,594)
-
19,706,570
-
-
-
9,111
608,861
(599,542)
(599,542)
-
-
-
11,531,206
(392,594)
9,111
(1,826,006)
18,489,425
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes
CASH FLOWS FROM OPERATING ACTIVITIES
ATO cash flow boost
Payments to suppliers and employees
Interest received
Note
2021
$
2020
$
50,000
50,000
(623,841)
(702,054)
26,409
67,462
Net cash provided by/(used in) operating activities
18(b)
(547,432)
(584,592)
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 and exercise of options
Funding of secured loan
Share issue costs
Net cash provided by financing activities
(212,030)
(66,246)
(5,558)
-
(5,556,305)
(2,443,849)
(5,834,581)
(2,449,407)
11,530,032
2,941,319
(93,000)
-
(392,594)
(68,000)
11,044,438
2,873,319
Net increase/(decrease) in cash held
Cash and cash equivalents at the beginning of the financial year
4,662,425
(160,680)
3,384,990
3,545,670
Cash and Cash Equivalents at the End of the Financial Year
18(a)
8,047,415
3,384,990
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.
(a) 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
The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are
mandatory for the current reporting period. These Standards and Interpretations did not have any material impact on these 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 2021.
The Company has reviewed the new Standards and Interpretations that have been issued but are not yet effective for the year ended
30 June 2021. 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 2021, the carrying value of capitalised exploration
expenditure is $10,422,822.
Share based payments - performance rights
The Company issued performance rights to their employees during the year ended 30 June 2021 and an amount of $9,111 was
expensed as share based payment. Refer to Note 1(n) for the Share-Based Payments accounting policy and Note 21 for details of
the performance rights issued.
(a) Significant accounting policies (continued)
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.
(b) 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 notional
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 substantively 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.
(c) Trade and Other Receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less expected credit
loss provision. 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 expected credit loss 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.
(d) 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.
(e) 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 and 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.
(f) Comparative Figures
Where necessary, comparative figures have been adjusted to conform to the presentation in the current year.
(g) 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.
(h) 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.
(i) 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.
(j) Impairment of Assets
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. 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 that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
(k) 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.
(l) 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 2021, 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.
(m) 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.
(n) 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.
(o) 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.
(p) Leases
The Company assesses at the start of a contract whether or not it contains a lease, by deciding if the contract provides the right to
control the use of an identified asset for a period of time in exchange for consideration.
The Company currently uses a single recognition and measurement approach for all leases, except for short-term leases and leases of
low value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to
use underlying assets.
i) Right-of-use assets
The Company recognises right-of-use assets at the start of the lease and are measured at costs, less accumulated depreciation
and impairment losses and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs incurred and lease payments made at or before the commencement
date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets.
ii) Lease liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments less any lease incentives received,
variable lease payments that depend on an index or a rate and amounts expected to be paid under residual value guarantees.
The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company
and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to
produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date,
the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change
in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such
payments) or a change in the assessment of an option to purchase the underlying asset.
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases that have a lease term of 12 months
or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets
recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-
value assets are recognised as an expense on a straight-line basis over the lease term.
2
INCOME AND EXPENSES
Revenue from continuing operations:
ATO cash flow boost (Note 5(i))
Interest received
Loss before income tax is arrived at after charging the following items:
Superannuation expenses
Capitalised exploration expenditure written off
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 26% (2020: 27.5%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
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 as at 30 June 2021 in
respect of tax losses not brought to account is as follows:
Potential future tax benefit – income tax losses
Potential future tax benefit – capital losses
Potential deferred tax liability – exploration expenditure
2021
$
2020
$
-
25,993
25,993
100,000
66,425
166,425
76,567
5,594
50,314
83,551
-
-
-
-
-
-
(599,542)
(503,704)
(155,881)
(138,519)
(1,521,065)
(632,253)
6,092
(83,964)
1,754,818
-
(22,286)
(24,116)
817,174
-
3,089,529
1,414,612
32,604
34,485
(2,525,356)
(1,062,231)
596,777
386,866
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.
4 CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Cash at bank
Cash at bank carries a floating interest rate of 1% (2019: 2%). 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 18.
5 CURRENT ASSETS – TRADE AND OTHER RECEIVABLES
Trade receivables
ATO Cash flow boost (i)
GST assets
Other receivables (ii)
(i) The Company qualified as an eligible entity for the ATO cash flow boost and received
the second tranche subsequent to 30 June 2020.
(ii) Included in other receivables is $93,000, being funds loaned to a supplier to acquire
an exploration asset in exchange for drilling services. The exploration asset will
belong to the Company in the event of any alterations to the original agreement.
6 CURRENT ASSETS - OTHER
Prepaid insurance
7 NON-CURRENT ASSETS – CAPITALISED EXPLORATION EXPENDITURE
Capitalised exploration and tenement acquisition costs:
Carrying amount at the beginning of the year
Acquisition of tenements
Exploration expenditure capitalised
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 NON-CURRENT ASSETS – 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
2021
$
2020
$
8,047,415
3,384,990
8,047,415
3,384,990
6,235
-
216,927
94,971
318,133
-
50,000
94,686
1,205
145,891
3,917
3,917
5,255
5,255
4,506,326
2,207,224
66,246
-
5,850,250
2,299,102
10,422,822
4,506,326
239,302
(30,978)
208,324
18,255
212,029
(21,960)
208,324
27,593
(9,338)
18,255
24,340
5,558
(11,643)
18,255
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 CONTRIBUTED EQUITY
(a) Ordinary Shares
2021
$
2020
$
346,509
113,551
51,126
61,906
46,062
11,505
511,186
119,473
Issued capital 100,439,953 (2020: 66,847,975) ordinary shares fully paid (net of share
issue costs)
19,706,570
8,567,958
19,706,570
8,567,958
Number
2021
Number
2020
$
2021
$
2020
Movement in issued capital
Balance at the beginning of the financial year
66,847,975
53,478,348
8,567,958
5,694,639
Shares issued under a Placement
12,000,000
-
6,000,000
-
Shares issued under a non-renounceable pro-rata rights issue
13,369,635
13,369,627
3,342,410
2,941,319
Shares issued from options exercised (refer Note 10b)
8,222,343
Share issue costs
-
-
-
2,188,796
-
(392,594)
(68,000)
Balance at the End of the Financial Year
100,439,953
66,847,975
19,706,570
8,567,958
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.
(b) Options
During the year ended 30 June 2021, the following options were exercised:
1,561,818 options were exercised at $0.25 cents to raise $390,454 (refer Note 14d)
6,660,525 options were exercised at $0.27 cents to raise $1,798,342
As at 30 June 2021, the following unlisted options were on issue:
4,888,182 unlisted options – exercisable at 25 cents and expire on 31 December 2021
24,296 unlisted options – exercisable at 27 cents lapsed on 30 June 2021, unexercised
11 RESERVES AND ACCUMULATED LOSSES
(a) Accumulated Losses
Opening balance
Profit/(Loss) for the year
Closing Balance
(b) 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 performance rights granted (refer Note 21)
Balance at the end of the year
12 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
2021
$
2020
$
(1,226,464)
(722,760)
(599,542)
(503,704)
(1,826,006)
(1,226,464)
608,861
608,861
599,750
599,750
599,750
599,750
9,111
-
608,861
599,750
(599,542)
(503,704)
(0.67) cents
(0.77) cents
(0.63) cents
(0.77) cents
Number
Number
Weighted average number of ordinary shares outstanding during the year used in the
calculation of basic and diluted loss per share.
88,864,154
65,753,780
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.
13 REMUNERATION OF AUDITORS
Remuneration for audit of financial reports by Rothsay Auditing
27,500
27,500
2021
$
2020
$
14 KEY MANAGEMENT PERSONNEL DISCLOSURES
The persons holding positions as Directors of the Company during the financial year were:
Appointed 17 February 2021
Non-Executive Chair
Appointed Chair 1 July 2021
Mr Timothy Kennedy
Ms Katina Law
Non-Executive Director Appointed 1 July 2018
Mr David (Lorry) Hughes
Managing Director
Appointed 6 April 2018
Ms Kelly Ross
Non-Executive Director Appointed 6 April 2018
Resigned 17 February 2021
(a) 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 2021.
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
363,465
34,529
-
308,289
29,287
-
397,994
337,576
Other Key Management Personnel
There were no other key management personnel in Yandal Resources Limited during the financial year.
See Note 19 for details of key management personnel and any other transactions with key management personnel.
(b) 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.
(c) Remuneration options: granted during the financial period ending 30 June 2021
There were no remuneration options granted during the year.
Details of share based payments during the year ended 30 June 2021 are contained in Note 21 to the financial statements.
(d) Exercise of options by Key Management Personnel
1,561,818 options were exercised at $0.25 cents to raise $390,454.
There were no other transactions with Key Management Personnel during the year.
15 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.
15 SEGMENT REPORTING continued
The Company is domiciled in Australia. All revenue from external parties in generated from Australia only. All the assets are located
in Australia.
16 FINANCE FACILITIES
No credit standby facility arrangement or loan facilities existed at 30 June 2021 or 30 June 2020.
17 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
18 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:
2021
$
2020
$
1,015,540
706,000
3,747,440
1,003,000
310,600
1,003,000
5,073,580
2,712,000
Cash at bank
8,047,415
3,384,990
Reconciliation of Net Cash Used In Operating Activities To Loss After Income Tax
Profit/(loss) after income tax
Depreciation
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
There were no non-cash financing and investing activities during the year ended 30 June
2021.
(599,542)
21,960
9,111
(503,704)
11,643
-
44,181
(122,241)
1,338
97,761
(48,963)
(31,339)
713
(12,942)
(547,432)
(584,592)
19 RELATED PARTIES
Directors
The Directors who held office at any time during the year are as follows:
Mr Timothy Kennedy, Ms Katina Law, Mr David (Lorry) Hughes and Ms Kelly Ross
Other transactions with Director related entities
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other
parties unless otherwise stated. Disclosures relating to Key Management Personnel are set out in Note 21 and the Remuneration Report.
20 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
2021
$
2020
$
8,047,415
3,384,990
318,133
145,891
8,365,548
3,530,881
511,186
511,186
119,473
119,473
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 2021.
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.
20 FINANCIAL RISK MANAGEMENT AND POLICIES continued
(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
8,047,415
318,133
8,365,548
511,186
511,186
3,384,990
145,891
3,530,881
119,473
119,473
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,047,415
318,133
8,365,548
511,186
511,186
3,384,990
145,891
3,530,881
119,473
119,473
Weighted
average
effective
interest rate
%
0.25%
-
-
-
-
1%
-
-
-
-
As at 30 June 2021
Financial Assets:
Cash
Receivables
Financial Liabilities:
Payables
As at 30 June 2020
Financial Assets:
Cash
Receivables
Financial Liabilities:
Payables
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.
21 SHARE BASED PAYMENTS
(i) 30 June 2021
600,000 performance rights were issued to employees of the Company.
The performance rights were granted at nil consideration, do not have an exercise price and will lapse if the vesting conditions are
not met.
The Performance Rights are issued under the Company’s Employee Incentive Scheme (EIS), dated 19 October 2018.
Each performance right will convert to an ordinary share upon satisfaction of the below vesting criteria:
1. Prior to 1 July 2022, the volume weighted average price of the Company’s shares over 20 consecutive trading days on which
the shares trade is $1.00 or more; and
2. Completing 12 months of continuous employment with the Company to 1 June 2022.
During the year ended 30 June 2021, $9,111 was expensed as a share based payment.
Set out below is a summary of the performance rights granted:
Number granted
Grant date
Expiry date of milestone achievements
Share price hurdle
Fair value per right*
Total fair value that would be recognised over the vesting period if rights are vested
Number cancelled at 30 June 2021
Number vested at 30 June 2021
Number remaining at 30 June 2021
Amount expensed in 2021
Class A
600,000
11 June 2021
1 July 2022
$1.00
$0.3077
184,620
0
0
600,000
9,111
Total
600,000
184,620
0
0
600,000
9,111
The fair value of the rights was determined using Hoadley’s Barrier 1 model that takes into account the vesting condition of the
rights, and was based on the following inputs:
Assumptions
Spot price
Vesting hurdle
Exercise price
Rights
Class A
$0.555
$1.00
Nil
Expiry period (years)
1 July 2022
Expected future volatility
Risk free rate
Dividend yield
85%
-0.01%
Nil
(ii) 30 June 2020
There were no share based payments transactions during the year.
22 LEASES
This note provides information for leases where the Company is a lessee.
The Company adopted AASB 16 from 1 July 2019.
The Company applied AASB 16 on its leases as follows:
Lease
Office space
Office equipment/photocopiers
Impact on the Company’s Financial Position or Performance
June 2021
Lease agreement is on a month by month basis, therefore eligible for short
term exemption, no impact.
Lease agreement is on a month by month basis, therefore eligible for short
term exemption, no impact.
23 CONTINGENCIES
There are no contingent assets or liabilities at reporting date.
24 EVENTS AFTER REPORTING DATE
At the date of the Directors’ Declaration no other matter or circumstance has arisen since 30 June 2021 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 2021.
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 21 September 2021 were:
DGO Gold Limited
Au Xingao Investment Pty Ltd
CS Third Nominees Pty Limited
Abadi Investments Pty Ltd
UNQUOTED SECURITIES OPTIONHOLDINGS
Nature
Expiry Date
Exercise Price of Options
Number under Option
Number of Holders
Unlisted options
31 December 2021
25 cents
4,888,182
7
The numbers of unlisted options with an exercise price $0.25, expiring 31 December 2021 held by the substantial option holders as at
21 September 2021 were:
Hera Investments Pty Ltd
Ms Renae Wainwright & Mr David Lawrence Hughes
Mrs Katina Maria Ethel Law & Mr Peter Sigfred Law
Mr Trevor James Saul
Bald Superannuation Pty Ltd
JXB Holdings Pty Ltd
1,600,000
1,088,182
1,000,000
400,000
300,000
300,000
32.732%
22.261%
20.458%
8.183%
6.137%
6.137%
CLASS OF SHARES AND VOTING RIGHTS
As at 21 September 2021, there were 690 holders of the ordinary shares and 7 holders of unlisted options of the Company. The voting
rights attached to the shares are:
• at a meeting of members or classes of members each member entitled to vote may vote in person or by proxy or by attorney; and
• on a show of hands every person present who is a member has one vote, and on a poll every person present in person or by proxy
or attorney has one vote for each ordinary share held.
DISTRIBUTION OF SHAREHOLDERS (as at 21 September 2021)
Category
1
1,001
5,001
10,001
100,001
–
–
–
–
–
1,000
5,000
10,000
100,000
over
TOTAL HOLDERS
Number of Shareholders
44
138
123
313
72
690
The number of shareholders holding less than a marketable parcel as at 21 September 2021 was 35.
Twenty largest shareholders as at 21 September 2021
Name
1 DGO GOLD LIMITED
2 AU XINGAO INVESTMENT PTY LTD
Balance
%
19,987,550
19.900%
14,608,458
14.544%
3 CS THIRD NOMINEES PTY LIMITED
10,134,226
10.090%
4 ABADI INVESTMENTS PTY LTD
5 MR KENNETH JOSEPH HALL
6 AVENIRA GOLD PTY LTD
7,960,289
7.925%
4,604,168
4.584%
4,600,000
4.580%
7 MS RENAE WAINWRIGHT & MR DAVID LAWRENCE HUGHES
4,001,381
3.984%
8 KESLI CHEMICALS PTY LTD
9 MRS MARISA MACKOW
10 NATIONAL NOMINEES LIMITED
11 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
12 ZINFANDEL EXPLORATION PTY LTD
1,423,820
1.418%
1,284,638
1.279%
1,132,966
1.128%
1,089,653
1.085%
1,000,000
0.996%
13 CAROLINE HOUSE SUPERANNUATION FUND PTY LTD
953,664
0.949%
14 MR RODERICK JAMES TRIGWELL
15 POUNAMU CAPITAL PTY LIMITED
16 MR PETER PIOTR MACKOW
17
JXB HOLDINGS PTY LTD
18 GARRETT SMYTHE LTD
877,261
0.873%
812,500
0.809%
791,265
0.788%
750,000
0.747%
702,467
0.699%
19 B & M LAWS SUPER FUND PTY LTD
700,000
0.697%
20 BILL BROOKS PTY LTD
674,167
0.671%
Total Securities of Top 20 Holdings
78,088,473
77.746%
Total of Securities
100,439,953
Locality
Tenement ID
Holder
Beneficial Ownership of
Yandal Resources Ltd
Notes
Ironstone Well Gold Project
Oblique/Quarter Moon
Flushing Meadows
Flushing Meadows
Ironstone Well
Flushing Meadows
Flushing Meadows
Barwidgee Gold Project
New England
New England
New England
Mazzucco
Mt McClure Gold Project
Success
Parmelia
Challenger
Mt McClure
Mt McClure
Mt McClure
Mt McClure
Mt McClure
E53/1882
E53/1963
E53/1964
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
M53/1093
Yandal Resources Limited
MLA53/1108
Yandal Resources Limited
LA53/222
Yandal Resources Limited
E53/1843
P53/1638
P53/1639
P53/1704
M36/691
M36/692
M36/693
P36/1892
P36/1893
P36/1894
P36/1895
P36/1896
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Locality
Tenement ID
Holder
Beneficial Ownership of
Yandal Resources Ltd
Notes
1
1
1
1
1
1
1
1
Gordans Gold Project
Mt Jewell
King of the West
Mt Jewell
Mulgarrie
Gordons
Wild Dog
Mt Vetters
Mulgarrie
Gordons
King of the West
King of the West
King of the West
King of the West
King of the West
King of the West
Gordons
Mt Jewell
E24/198
E24/214
E27/536
E27/570
E27/601
E27/602
Yandal Resources Limited
Yandal Resources Limited/PVW
Yandal Resources Limited
Yandal Resources Limited/PVW
Yandal Resources Limited
Yandal Resources Limited
E27/605
Yandal Resources Limited
M27/237
Yandal Resources Limited
M27/502
Yandal Resources Limited
P24/5266
Yandal Resources Limited/PVW
P24/5267
Yandal Resources Limited/PVW
P24/5268
Yandal Resources Limited/PVW
P24/5269
Yandal Resources Limited/PVW
P24/5270
Yandal Resources Limited/PVW
P24/5271
Yandal Resources Limited/PVW
P26/4577
Yandal Resources Limited
P27/2206
Yandal Resources Limited
Boomerang Dam
P27/2214
Yandal Resources Limited
Kanowna
Mt Eba
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
P27/2325
Yandal Resources Limited
P27/2331
Yandal Resources Limited
P27/2338
P27/2339
P27/2340
P27/2341
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
P27/2342
Yandal Resources Limited
P27/2343
Yandal Resources Limited
P27/2344
Yandal Resources Limited
P27/2345
Yandal Resources Limited
P27/2346
Yandal Resources Limited
P27/2354
Yandal Resources Limited
P27/2355
Yandal Resources Limited
P27/2356
Yandal Resources Limited
P27/2357
Yandal Resources Limited
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Locality
Tenement ID
Holder
Gordans Gold Project continued
Beneficial Ownership of
Yandal Resources Ltd
Notes
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Notes:
P27/2358
Yandal Resources Limited
P27/2359
Yandal Resources Limited
P27/2360
Yandal Resources Limited
P27/2361
Yandal Resources Limited
P27/2362
Yandal Resources Limited
P27/2363
Yandal Resources Limited
P27/2364
Yandal Resources Limited
P27/2461
Yandal Resources Limited
LA27/100
Yandal Resources Limited
LA27/101
Yandal Resources Limited
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
1. These tenements are the subject of the PVW Kalgoorlie Pty Ltd Deed of Agreement dated 22 July 2021. Awaiting finalisation of
transfers.