ANNUAL REPORT
2022
DIRECTORS
Mr Tim Kennedy
Mr Greg Evans
Ms Katina Law
Managing Director
Non-Executive Chairman
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
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Australian Securities Exchange
Home Exchange: Perth
Code: YRL
Dear Shareholder
As the new Chair of Yandal Resources Limited, I send you our valued shareholders warm greetings and thank you for your continued
support for your gold exploration company. 2022 has seen change in the Company including the Board and the management team
and importantly a reaffirming of the strategy of the Company. With a new Chair, Managing Director and a strategic lens of providing
a foundation for growth we continue to focus our capital and resources to drill our most prospective targets within the Yandal and
Norseman-Wiluna greenstone belts and to look at existing and new opportunities within the region. We also seek to add value by
converting recent and historical drill data into initial Mineral Resource Estimates such as the recently announced combined 119,000
ounces from Challenger and Success at Mt McClure. These additional low cost ounces further strengthen our resource base.
In recent times have taken steps to ensure we retain our highly valued and important staff, have implemented a rigorous cost
management and budgeting plan, conducted a review of the assets of the Company, prioritised our drilling programs and restated
our objectives. In doing so your Board has made positive steps towards enhancing shareholder value. The Board will continue to
focus on our people and our culture encouraging an inclusive, diverse and participatory culture where important decisions are
enhanced by technical expertise, thorough investigation, broad experiences, learnings and ideas. Our sustainability footprint will also
come under scrutiny as we continue to seek ways to improve our ESG policies, strategies and impact.
I would like to take this opportunity to thank former Managing Director and Company Founder Mr. Lorry Hughes for his work in
establishing Yandal and wish him well in his new endeavours. I would also like to thank my fellow Board members for their
contributions and make particular note of the energy and enthusiasm that our new Managing Director and CEO Mr. Tim Kennedy has
bought to the role. Your Board is optimistic about the future and looks forward to a positive year in 2023.
Mr Greg Evans
Chairman
16 September 2022
Perth, WA
INTRODUCTION
The principal activities of the Company are gold exploration, discovery and development in the North-Eastern and Eastern Goldfields
of Western Australia. The Company is targeting the definition of strategically located resources and 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
in the vicinity of our tenure.
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 high-grade mineralisation at a number of prospects within the
Company’s portfolio and has substantially enhanced the exploration discovery and resource potential in a number of project areas.
Ongoing exploration reviews and targeting enabled the Company to focus on areas of highest potential to cost-effectively add value.
A significant amount of time and resources were focussed on developing mutually beneficial long-term relationships with key
stakeholders including Native Title holders.
CORPORATE
The Company maintained a high level of activity throughout the year spending a total of approximately $9m on exploration across its
four exploration projects. Due to the high quality of its prospect pipeline a very high proportion of this spend was on drilling related
activities which included 26,217m of aircore drilling, 32,476m of RC drilling and 5,012m of diamond drilling.
To sustain these activities the Company undertook a capital raise of $4,280,825 via strongly supported Entitlement Issue launched in
November 2021. The Company’s exploration activities were further bolstered through the exercise of unlisted options to raise an
additional $1,222,926. Yandal’s cash position at 30 June 2022 was $3.73m.
There were a number of important changes to the board and management of the Company during the year. In July, Non-Executive
Director Mr Tim Kennedy was appointed Independent Non-Executive Chairman replacing Katina Law who continued with the
Company as Non-Executive Director. In May, Founding Managing Director Mr Lorry Hughes resigned to pursue other opportunities
and was replaced by Mr Tim Kennedy who agreed to step into the role. Mr Greg Evans, a highly regarded corporate executive was
appointed Non-Executive Chairman to fill the position upon Mr Kennedy’s transition to a full-time executive position. We are pleased
to advise that during the course of these changes there was strong commitment to maintain the Company’s strategic focus to ensure
there was no impact to ongoing exploration efforts. Our small but dedicated exploration team is to be commended for their
enthusiastic and unwavering efforts to advance our projects during the year.
ENVIRONMENT, SUSTAINABILITY AND GOVERNANCE
The Company ESG responsibilities are a key consideration when planning and conducting its activities whether in the corporate office
or in the field. Our core responsibilities are outlined in our Corporate Governance Codes and Policies. The areas of particular focus
are:
▪
▪
▪
▪
People: We aim to foster a working environment that is collaborative, enjoyable, and
stimulating and where our employees can fully use their expertise and develop new skills to
the benefit of the Company and their ongoing careers. Our people drive our ESG efforts, so
we value and place high value on new initiatives in this regard.
Safety: The health safety and wellbeing of our people including employees and contractors
is of utmost importance. We have well developed safety procedures and recognise that a
safe work environment comes when a culture of safety is fostered amongst our people such
that it becomes an inherent part of all we do. We are pleased to advise there were no injuries
incurred by our workforce during the period.
Stakeholders: We value and respect all stakeholders in the regions in which we work and
recognise the unique long-term relationship Indigenous Stakeholders have to the land. We
respect the traditional owners of the land on which we work and endeavour to build long-
term mutually beneficial relationships with our Indigenous stakeholders. With this in mind
the Company negotiated a Exploration and Prospecting Deed of Agreement with the Kultju
(Aboriginal Corporation) RNTBC (“Kultju AC”) who hold native title over much of the
Ironstone Well and Barwidgee Project area.
Environment: We have a dual focus when it comes to our environmental impact. Firstly, we
strive to minimise the impact that our activities have in the areas in which we work. Secondly,
we place high importance on our land rehabilitation obligations and aim to leave no long-
term adverse environmental impact.
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. During the year exploration was directed towards defining controls on mineralisation and
the extents of a number of new high-grade prospects in the vicinity of our advanced Gordon’s Dam Prospect including Malone and
Star of Gordon which is along strike from the nearby Gordon-Sirdar Mine, currently being operated by FMR Investments.
Regional geology map of part of the Gordons gold project showing tenure, individual prospects tested
in 2021/22 with completed and drill holes.
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. 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. Compilation of an initial
Mineral Resource Estimate was placed on hold pending the results of complimentary exploration on nearby prospects. This
exploration continued throughout the year producing positive results. It is likely the Company will revisit the Gordon’s Dam MRE over
the course of the coming year.
The high-grade Malone prospect located ~500m to the west of Gordons Dam was a particular focus during the year. Mineralisation
at Malone is related to a pronounced flexure in a major regional geological contact between mafic and felsic rocks units which is a
highly favourable location for the accumulation of significant mineralisation. Initial RC drilling at Malone in the immediate footwall to
the felsic-mafic contact included the following results:
▪ 5m @ 7.7 g/t Au from 210m within a broader zone of 16m @ 2.8g/t Au from 204m (YRLRC0727)1
▪ 3m @ 8.8g/t Au from 190m (YRLRC0811)1
A follow-up program of two diamond holes, to provide lithological and structural information and four step out RC holes were
completed late in the year. The diamond holes confirmed high-grade mineralisation returning intercepts of:
▪ 3.58m @ 1.5g/t Au from 206.42m including 0.58m @ 8.2g/t Au (YRLDD021)2
▪ 7.00m @ 2.2g/t Au from 271.00m including 1.00m @ 6.9g/t Au (YRLDD021)2
▪ 4.00m @ 2.3g/t Au from 87.00m including 1.00m @ 5.5g/t Au (YRLDD022)2
Data indicates a broad westerly apparent dip of mineralisation though structural core logging shows that individual high-grade zones
are generally associated with steeply dipping and north to north-north-west trending quartz-carbonate-sulphide veins within the host
mafic lithology.
Immediately following the diamond drilling, four RC holes were completed on three 100m spaced lines north-west and south-east of
high-grade intercepts in YRLRC0727 and YRLRC0811, testing for strike extensions of mineralisation. Hole YRLRC0819 drilled on the
southern step-out line intersected 2m @ 2.1g/t Au potentially representing a southern extension of mineralisation. Of the three holes
drilled on the northern step-out lines YRLRC0822 intersected anomalism (1m @ 0.7g/t Au)2 and the current interpretation indicates
they may be located west of the north-north-west trending high-grade mineralisation intersected in the initial discovery holes. Follow-
up drilling is being planned following a full review of results to date.
In addition to prioritising exploration drilling along the Malone Contact, reconnaissance AC drilling commenced last year along the
Alderman felsic/mafic contact returned an encouraging intercept of 8m @ 1.7gt/t Au (YRLAC0898)5 from 52m at the Meuleman Prospect
approximately 3.5km south-south-east of Malone. A single RC follow-up test hole late in the year confirmed mineralisation returned
4m @ 5.1g/t Au from 44m including 2m @ 9.7g/t Au (YRLRC0823)2 This area which is adjacent to a prominent flexure in the felsic-mafic
contact similar to Malone, is mostly untested by historic drilling though one nearby shallow RAB drilled on a broad spaced traverse
in 1992 did return up to 0.23g/t Au (WAMEX Accession number 97877). This prospect is also located 740m south-east of an intercept
of 16m @ 1.3g/t Au (YRLDD0015) reported in the March quarter 2022. Further drill testing is planned.
A further 3.5km to the east from the Gordons Dam prospect is the Star of Gordon 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.
Early in the year, follow-up RC drilling at Star of Gordon directly down-dip of encouraging intercepts reported last year including 8m
@ 4.7g/t Au from 15m (YRLRC513)3 and 10m @ 2.5g/t Au from 27m (YRLRC514)3 returned a very strong intercept:
▪
10m @ 8.4g/t Au from 43m including 1m @ 52.5g/t Au (YRLRC630)4,
On the basis of these results Yandal acquired six new mining tenements via two separate agreements to bolster its land position in
the immediate vicinity of, and along strike from, the Star of Gordon workings. A further agreement was reached in respect of another
prospecting licence to the immediate west of Malone.
GORDONS GOLD PROJECT continued
Five diamond holes were completed at Star of Gordon to provide high quality geological and structural data to guide further
exploration. These holes also returned a number of significant intercepts including:
▪
4.41m @ 4.8g/t Au from 226.49m including 0.44m @ 46.4g/t Au (YRLDD0018)1
An initial structural interpretation of core indicates that the Star of Gordon mineralisation may be offset by late cross-cutting faults
making correlation between holes difficult. Further geological investigation is required before additional follow-up drilling can be
planned. Given the grades and extent of shallow mineralisation together with proximity to nearby operations, Star of Gordon remains
a priority target.
1 Refer to YRL ASX announcement dated 29 March 2022, 2 Refer to YRL ASX announcement dated 11 July 2022, 3Refer to YRL ASX Announcement dated 1 July and 27
May 2021, 4 Refer to YRL Announcement dated 28 September 2021, 5 Refer to YRL ASX Announcement dated 23 May 2022 6 Refer to YRL ASX Announcement of 11 July
2022
IRONSTONE WELL AND BARWIDGEE PROJECTS
The Ironstone Well and adjacent Barwidgee projects cover over 470km2 of highly prospective and under-explored Yandal Greenstone
Belt, east of Wiluna and south of the Jundee Mine in Western Australia
The Company’s broad strategy is to identify areas with high potential from geological and geophysical interpretation which have not
been adequately tested then undertake systematic and effective drill testing of these areas. Vertical holes drilled in steeply dipping
terrain can have limited effectiveness as they do not test across stratigraphy, whilst shallow holes often do not penetrate beneath
widespread transported cover and deep weathering and can easily miss underlying or nearby bedrock mineralisation. On this basis
the initial filter for determining if areas are effectively tested includes whether holes are vertical or angled and whether they have
been drilled to vertical depths greater than 50m.
During the year an Exploration and Prospecting Deed of Agreement was executed with the Kultju (Aboriginal Corporation) RNTBC
(“Kultju AC”). The Kultju AC hold native title rights to an area which includes the much of Ironstone Well and Barwidgee projects.
Following execution of the agreement the Company worked with representatives of the Kultju AC to complete heritage surveys over
the next round of priority exploration targets within Ironstone Well and Barwidgee Prospects. Final heritage clearance was not
received until after years end. The Company looks forward to a long-term and positive relationship with the Kultju AC in relation to
conducting exploration activities whilst respecting and adhering to all cultural and heritage protection matters.
Whilst only minimal field exploration activities could be undertaken during the year due to the timing of negotiations and heritage
surveys, further time was available to assess prior results and refine key drill targets for future testing. Subsequent to the end of the
year, heritage approval was received, and the next round of drilling commenced in August 2022.
Ongoing targeting has identified two key areas that contain recent and historically defined mineralisation which will become the
Company’s focus of exploration in the near term as described below.
Within the Ironstone Well project the priority target zone is the area immediately surrounding the Flushing Meadows gold deposit
(268,000oz). 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 and centred on Flushing Meadows, includes prospective mafic and felsic rock sequences that
have received very little effective exploration.
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
Regional geology plan showing key prospects and tenure at the Ironstone Well and Barwidgee
projects
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
Regional geology plan showing the Flushing Meadows deposit, tenure, significant prospects and drill
holes over 50m and angled.
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
Within the contiguous Barwidgee project priority target area is the Sims Find Prospect extensions plus an area covering ~40km2 of
tenure south of the Sims Find prospect including granite-mafic contacts along the Barwidgee Shear and the New England Granite.
At Sims Find, RC drilling has intersected significant high-grade gold mineralisation beneath earlier shallow RC intercepts and historic
workings. High-grade gold mineralisation is associated with quartz veins, sulphides and shears hosted within and at the contacts of a
coarse-grained dolerite unit. Previous intercepts include;
▪ 8m @ 24.3g/t Au from 9m including 1m @ 129g/t Au (YRLRC0457)1
▪ 3m @ 20.8g/t Au from 30m including 1m @ 62.2g/t Au (YRLRC0447)1
▪ 5m @ 6.5g/t Au from 17m including 1m @ 30.4g/t Au (YRLRC0445)1
1 Refer to YRL ASX announcements dated 22 December 2020 and 2 March 2021
Sims Find mineralisation has been confirmed for over 400m of strike and to at least 150m vertical depth with possible extensions
covering up to 2.4km of strike to the north-west and south-east. The high-grade nature of Sims Find mineralisation makes it a potential
favourable source of blending material with Flushing Meadows should this progress to development in the future, thus these
extensions are a high-priority for testing in the coming year.
The New England Granite target comprises a ~4.3km long x ~2km wide granitic batholith cross-cut with large scale tensional faults.
Historic gold occurrences and workings and elevated gold in drilling are recorded along the granite margins. First pass RC drilling is
planned to test the areas of highest potential
The Cash Prospect is located immediately along strike from the Corboy’s Deposit currently being developed by Northern Star (ASX:
NST). Cash has a very similar magnetic signature to Corboys and exhibits similar flexure in the Barwidgee shear along the granite-
greenstone contact. A Single hole test by Yandal last year confirmed mineralisation returning up to 4.6g/t Au1. RC drilling is planned
to systematically test the prospective structure on several traverses.
Further to the north-west of Cash along the prospective granite-greenstone contact, the Barwidgee Shear prospect is defined by a
magnetic high response coincident with cross-cutting fault, a subtle flexure and elevated gold in limited historic drilling, a combination
of features, highly favourable for gold mineralisation. This is an early-stage prospect with the potential for a significant discovery given
the geological setting and footprint. A large aircore program is planned to test the prospective trend over a strike length of 1.2km.
1 YRL ASX announcement dated 23 August 2021
IRONSTONE WELL AND BARWIDGEE PROJECTS continued
Regional geology plan showing the location of the Barwidgee Project priority targets and drill holes
over 50m and angled
Sims Find
Prospect
New England Granite
Granite contact targets
Sims Find
2.4km high grade trend
Cash Prospect
Barwidgee Shear Prospect
Large shear hosted target
Cash Prospect
Corboys lookalike
Corboys (ASX: NST)
+125Koz
MT MCCLURE PROJECT
The Mt McClure project contains a number of historic prospects and open pit mines in close proximity to Northern Star Resources
Ltd’s (ASX: NST) Orelia open pit mine, the ore from which is being trucked to NST’s Thunderbox Processing facility.
Plan view of the Mt McClure project showing the regional geology, tenements, location of key
prospects and drilling completed during the year
MT MCCLURE PROJECT continued
During the year an RC drilling program comprising 18 holes for 4,969m was undertaken to test mineralisation beneath the Success,
Parmelia and historic open pits and to further assess the HMS Prospect, located in the footwall to the north of the Success deposit.
Drilling beneath the open pits was done on 300m to 400m spacing and designed as a follow-up to initial confirmation drilling
completed by Yandal between 2019-2021. This drilling confirmed that mineralisation continues for at least 240 – 300m down dip from
each mined area. Drilling by previous explorers confirmed the presence of high-grade mineralisation immediately blow the pits and
when combined with recent deep results from Yandal highlight the potential to establish significant resources in these positions (for
example refer long section of Success – below). The Company intends to complete Initial Mineral Resource Estimates on available
drilling to be followed by targeted drilling programs to test and expand the initial MRE’s.
Drilling at HMS Sulphur was hampered by drilling problems; however the program did manage to confirm a shallow strike extension
of mineralisation with results including;
▪ 16m @ 0.4g/t Au from 40m including 1m @ 2.6g/t Au from 45m (YRLRC1021)1
▪ 4m @ 0.7g/t Au from 76m including 1m @ 2.5g/t from 76m (YRLRC1024)1
HMS Sulphur is one of a number of footwall and along-strike targets that will be tested in the coming year.
Schematic long section plan of the Success prospect showing the mined open pit, interpreted
weathering profile and selected recent and historic drilling intercepts1
1 Refer to YRL ASX announcement dated 21 April 2022.
COMPETENT PERSONS 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’.
Your Directors present their report on Yandal Resources Limited for the financial year ended 30 June 2022.
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
Mr Greg Evans
Ms Katina Law
Mr David (Lorry) Hughes
Managing Director
Non-Executive Chairman
Non-Executive Director
Managing Director
Appointed 17 February 2021
Appointed 4 April 2022
Appointed 1 July 2018
Resigned 17 May 2022
INFORMATION ON DIRECTORS AND OFFICERS
TIMOTHY KENNEDY B.App Sc (Geology), MBA, MAusIMM, MGSA
MANAGING DIRECTOR (appointed 17 February 2021, appointed Chair 1 July 2021, resigned as Chair 4 April 2022, appointed
Managing Director 4 April 2022)
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, 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 American, 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
Non-Executive Director
Non-Executive Director/Chair
Millennium Minerals Limited
Non-Executive Director
GREG EVANS BCom, DipApp Fin, GAICD
NON-EXECUTIVE CHAIRMAN (appointed 4 April 2022)
Appointed 16 February 2018, Resigned 18 March 2022
Appointed 13 December 2016, Chair 28 August 2018
Resigned 28 February 2022
Appointed 2 May 2016, Resigned February 2020
Mr Evans has over 25 years in advising corporates, boards, directors, executive management teams, and providers of debt and equity
and other financial sponsors on capital raisings, mergers and acquisition transactions, equity and debt structuring, public offers,
takeover defence, strategic options and growth strategies. He specialises in energy and natural resources with a particular focus on
the mining sector. He has a Bachelor of Commerce, a Diploma in Applied Finance and is a Graduate of the Australian Institute of
Company Directors.
Mr Evans is currently part-time Principal Director – Mergers and Acquisitions with KPMG Australia as well as Chief Investment Officer
of a Private Family office.
Current and Former Directorships held in the past three years: None.
Mr Evans has no other public company directorships.
INFORMATION ON DIRECTORS AND OFFICERS continued
MS KATINA LAW BCom, FCPA, MBA, GAICD
NON-EXECUTIVE DIRECTOR (appointed 1 July 2018, resigned Chair on 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.
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
Takeover from Gold Road Resources occurred on 30 June 2022
Ms Law has no other public company directorships.
MR DAVID (LORRY) HUGHES BSc (Geol) MAusImm
MANAGING DIRECTOR (appointed 6 April 2018, resigned 17 May 2022)
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.
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 2022 was a loss after income tax benefit of $978,228 (2021: $599,542 loss).
EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
REVIEW OF OPERATIONS
2022
¢
(0.89)
(0.89)
2021
¢
(0.67)
(0.63)
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 July 2021, DGO Gold Ltd moved to ownership of 19.90% of Yandal Resources to became the Company’s largest individual
shareholder via an off-market purchase of shares from Northern Star Resources Ltd.
In November 2021, the Company launched a Pro-rata Non-renounceable Rights Issue Offer (“Rights Issue”), which was
completed in December 2021. A total of $4,280,825 was raised by the issue of 10,702,063 New Shares at an issue price of 40
cents per New Share. The New Shares include and attached free New Option for every two New Shares with an exercise price
of 65 cents and an expiry date of 31 December 2022.
The new capital raised was to specifically accelerate the Company’s exploration programs.
During the year, the Company’s option holders had exercised:
o
o
4,888,182 options at $0.25 to raise $1,222,045
1,355 options at $0.65 to raise $881.
Class C and D Performance Rights were granted to the Company’s employees on 6 December 2021.
Class B, C and D Performance Rights were granted to the Company’s directors on 22 November 2021.
On 4 April 2022, founding Managing Director and Chief Executive Officer (CEO) Mr Lorry Hughes stepped down from the role
and continued with the Company as a Non-Executive Director until 17 May 2022. Mr Tim Kennedy was appointed Managing
Director and CEO on 4 April 2022. Mr Greg Evans was appointed to the Board on 4 April 2022 as Non-Executive Chairman.
A Heads of Agreement (HOA) was executed with Moho Resources Ltd (ASX: MOH, Moho) that provides for the Company to
acquire a 100% interest in the gold and related metal rights over granted Prospecting Licences P27/2226, P27/2216-18 and
Prospecting Licence application P27/2456. Moho will retain a 1% royalty over gold production.
The HOA also provides for Moho to acquire from the Company a 100% interest in the nickel, copper, cobalt and platinum
group elements and related metal rights over Exploration and Prospecting Licences E24/198, P27/2206, E27/536, M27/237
(“Mulgarrie North Tenements”) and E27/601, P27/2325, P27/2331, P27/2340-41, P27/2355-64. Yandal with retain a 1%
royalty over any Ni-Cu-Co-PGE production.
Consideration for the Moho transaction is $50,000 cash + GST and this was paid in May 2022. Moho’s consideration is to
provide 50% of the minimum expenditure commitments otherwise attributable to the Mulgarrie North Tenements for two
years from the date of execution of the HOA.
Other than the matters above, there were no significant changes in the state of affairs of the Company during the period.
EVENTS AFTER REPORTING DATE
In September 2022, the Company issued 1,000,000 unlisted options to employees under its Employee Incentive Scheme, the unlisted
options vest immediately and are exercisable on or before 1 September 2025 at an exercise price of 30 cents.
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 2022.
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 2022, 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
8
4
8
7
8
4
8
7
2
-
2
2
2
-
2
2
1
-
1
1
1
-
1
1
Director
T Kennedy
G Evans
K Law
D Hughes*
*resigned 17 May 2022
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:
Unlisted Options
Exercise price 65
cents,
expiry 31 December
2022
Direct
Interest
-
-
-
Indirect
Interest
3,334
-
-
Unlisted Options
Exercise price 50 cents,
expiry 4 April 2025
Direct
Interest
-
-
-
Indirect
Interest
1,000,000
300,000
-
Unlisted Options
Exercise price $1,
expiry 4 April 2026
(The options may only be
exercised if the Director being, or
associated with, the holder
continues as a Director until 4
April 2023)
Direct
Interest
-
-
-
Indirect
Interest
1,000,000
300,000
-
Ordinary Shares
Direct
Interest
-
-
-
Indirect
Interest
116,667
60,000
1,627,500
Director
T Kennedy
G Evans
K Law
SHARES UNDER OPTION
Unissued ordinary shares of Yandal Resources Limited under option as at the date of this report are as follows:
Nature
Expiry Date
Exercise Price of Options
Number under Option
Unlisted options
Unlisted options
Unlisted options
Unlisted options
31 December 2022
4 April 2025
4 April 2026
1 September 2025
65 cents
50 cents
$1
30 cents
5,349,695
1,300,000
1,300,000
1,000,000
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.
A Principles Used to Determine Amount and Nature of Remuneration continued
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.
The Company provides benefits to employees and directors of the Company in the form of share-based payment transactions,
whereby performance rights and options were granted at nil consideration as an employment incentive. The performance rights and
options were issued with vesting conditions, see Note 20 of the financial statements for details.
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.
The factors that are considered to affect total shareholders’ return are summarised below:
EPS (cents)
Dividends (cents per share)
Loss ($’000)
Share Price at 30 June (cents)
2022
(0.89)
-
978
15.0
2021
(0.67)
-
599
58.5
2020
(0.77)
-
503
27.0
2019
(1.69)
-
670
22.0
2018
-
-
-
-
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
$
T Kennedy Managing Director (appointed 4 April 2022)
2022
2021
-
-
75,833
-
43,333
13,217
G Evans
Non-Executive Chairman (appointed 4 April 2022)
2022
2021
-
-
K Law
Non-Executive Director
2022
2021
-
-
-
-
-
-
16,000
-
55,000
48,033
D Hughes Director (resigned 17 May 2022)
2022
2021
-
-
327,886
279,500
-
-
K Ross Non-Executive Director (resigned 17 February 2021)
Totals
2022
2021
2022
2021
-
-
-
-
-
-
-
22,715
403,719
114,333
279,500
83,965
Post
Employment
Superannuation
$
Share Based
Payments
Expense
(Performance
Rights)
$
Share
Based
Payments
Expense
(Options)
$
Total
$
Performance
Related
%
11,917
24,915
74,436
230,434
1,256
1,600
-
5,500
4,563
24,192
26,552
-
2,158
43,209
34,529
-
-
-
24,915
-
-*
-
-
-
-
14,473
22,331
39,931
-
-
-
-
-
-
-
-
85,415
52,596
352,078
306,052
-
24,873
49,830
96,767
707,858
-
-
397,994
43%
-
56%
-
29%
-
-
-
-
-
There were no termination benefits paid during the year to any Director or key management personnel.
*Performance rights had been issued to Mr Hughes however upon resignation these rights were cancelled as the milestone was not
met and any amounts expensed were reversed. Accordingly there were Nil share based payments expense for Mr Hughes.
C Share-Based Compensation
Options
2022 Options
(i)
There were options issued to Mr Evans and Mr Kennedy as remuneration during the year ended 30 June 2022.
The options were issued in two tranches as follows:
Tranche 1:
The fair value of the incentive options issued to the Directors is $86,839 as determined using the Black-Scholes valuation
methodology.
The options were granted on 19 May 2022 with an expiry date of 4 April 2025 and an exercise price of $0.50 per option.
The option values are as follows:
Directors
Grant Date
No of
Options
Granted
Fair value
per option
at Grant
Date
Vested at
30 June
2022
Total value
of Options
$
T Kennedy
19 May 2022
1,000,000
$0.0668
1,000,000
G Evans
19 May 2022
300,000
$0.0668
300,000
66,799
20,040
86,839
Amount
expensed
in current
year
$
66,799
20,040
86,839
Amounts
to be
expensed
in future
years
$
-
-
-
Balance of
options at
year end
1,000,000
300,000
Tranche 2:
The fair value of the incentive options issued to the Directors is $75,641 as determined using the Black-Scholes valuation
methodology.
The options were granted on 19 May 2022 with an expiry date of 4 April 2026 and an exercise price of $1.00 per option. These
options have a vesting condition of continuous service until 4 April 2023 for the directors.
The option values are as follows:
Directors
Grant Date
No of
Options
Granted
Fair value
per option
at Grant
Date
Vested at
30 June
2022
Total value
of Options
$
Amount
expensed
in current
year
$
Amounts
to be
expensed
in future
years
$
Balance of
options at
year end
T Kennedy
19 May 2022
1,000,000
$0.0582
G Evans
19 May 2022
300,000
$0.0582
-
-
58,185
17,456
75,641
7,637
2,291
9,928
50,548
1,000,000
15,165
65,713
300,000
An amount of $9,928 was expensed for the Tranche 2 options, being the value of the options apportioned over the vesting
period.
2018 Options
(ii) 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.
2018 Options continued
The options were exercised in full as at 31 December 2021.
The Director’s 2018 option values are as follows:
Directors
Grant Date
No of
Options
Granted
Fair value
per option
at Grant
Date
Vested at
30 June
2021
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
181,545
1,950,000
-
250,000
487,500
-
-
-
*resigned 17 May 2022
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.
Performance Rights
In the year ended 30 June 2022 the Company issued Class B, C and D Performance Rights to Directors. Full details are contained in
Note 20 to the financial statements. The following table summarises the equity-settled performance rights issued to Directors.
Class B
Number issued
Fair value per right
Total fair value if all hurdles are met
Amount expensed current year
Amount to be expensed in future years if all hurdles are met
Class C
Number issued
Fair value per right
Total fair value if all hurdles are met
Amount expensed current year
Amount to be expensed in future years if all hurdles are met
Class D
Number issued
Fair value per right
Total fair value if all hurdles are met
Amount expensed current year
Amount to be expensed in future years if all hurdles are met
Total
Amount expensed current year
Amount to be expensed in future years if all hurdles are met
Total
* Mr Hughes’ performance rights were cancelled following his resignation.
Mr Hughes*
$
Ms Law
$
Mr Kennedy
$
400,000
0.0969
38,760
-
-
400,000
0.1043
41,720
-
-
400,000
0.1291
51,640
-
-
-
-
-
150,000
150,000
0.0969
14,535
14,470
65
0.0969
14,535
14,470
65
150,000
150,000
0.1043
15,645
5,924
9,721
0.1043
15,645
5,924
9,721
150,000
150,000
0.1291
19,365
4,522
14,843
24,916
24,629
49,545
0.1291
19,365
4,522
14,843
24,916
24,629
49,545
D Service Contracts
Mr Kennedy has entered into an executive service agreement with the Company under which he is engaged as Managing Director.
The engagement of Mr Kennedy under the agreement commenced on 4 April 2022 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 Kennedy may terminate the agreement
without cause on 3 months’ written notice.
The employment agreement of Mr David (Lorry) Hughes was terminated following his resignation on 17 May 2022.
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 2022 and 30 June 2021 were:
2022
T Kennedy
G Evans (appointed 4 April 2022)
K Law
D Hughes (resigned 17 May 2022)
2021
T Kennedy
K Law
D Hughes
K Ross (resigned 17 February 2021)
# Balance held at resignation
Balance at
start of the
year
Shares
acquired
during the
year
Options
exercised
during the
year
Shares
disposed of
during the
year
-
-
597,500
4,141,381
4,738,881
-
565,000
2,988,654
156,251
116,667
60,000
30,000
129,059
335,726
-
-
200,000
-
-
-
1,000,000
1,088,182
-
-
-
(625,000)
2,088,182
(625,000)
6,537,789
Balance at the
end of the
year
116,667
60,000
1,627,500
4,733,622#
-
-
-
-
-
-
597,500
4,141,381
671,877#
5,410,758
-
32,500
952,727
515,626
3,709,905
200,000
1,500,853
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
-
-
1,000,000
2022
T Kennedy
G Evans*
K Law
Options
acquired
Options
granted^
3,334
2,000,000
-
-
600,000
-
-
D Hughes**
1,088,182
49,167
2,088,182
52,501
2,600,000
*appointed 4 April 2022
**resigned 17 May 2022
^refer to Note 20(b)
2021
T Kennedy
K Law
D Hughes
K Ross***
-
1,032,500
2,040,909
515,626
3,589,035
-
-
-
-
-
-
-
-
-
-
***resigned 17 February 2021
Director Performance Rights
Options
expired
during the
year
Exercised
during the
year
Value of
options
exercised
($)
Balance at
the end of
the year
Vested and
exercisable
at the end
of the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,003,334
1,003,334
600,000
300,000
(1,000,000)
250,000
-
-
(1,088,182)
(2,088,182)
272,046
49,167
49,167
522,046
2,652,501
1,352,501
-
(32,500)
(952,727)
(515,626)
-
-
-
8,775
1,000,000
1,000,000
240,000
1,088,182
1,088,182
129,219
-
-
(1,500,853)
377,994
2,088,182
2,088,182
The number of performance rights 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:
2022
T Kennedy
G Evans*
K Law
D Hughes**
Balance at start
of the year
Rights
Acquired
Rights
granted
Rights
cancelled
during the year
Rights
converted
during the year
Balance at the
end of the year
-
-
-
-
-
-
-
-
-
-
-
450,000
450,000
-
-
-
1,200,000
(1,200,000)
2,100,000
(1,200,000)
-
-
-
-
-
-
450,000
450,000
-
900,000
Full details are contained in Note 20 to the financial statements.
*appointed 4 April 2022
**resigned 17 May 2022
There were no performance rights on issue to Directors during year ended 30 June 2021.
[End of remuneration report]
NON-AUDIT SERVICES
The auditors have not provided any non-audit services to the Company in the current financial year.
INDEMNIFICATION AND INSURANCE OF OFFICERS OR AUDITOR
During the financial year, the 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 HLB
Mann Judd, the Company’s auditors, as presented on page 27 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 TIM KENNEDY
Director
16 September 2022
Perth, WA
27
AUDITOR’S INDEPENDENCE DECLARATION
As auditor for the audit of the financial report of Yandal Resources Limited for the year ended 30
June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
16 September 2022
B G McVeigh
Partner
28
INDEPENDENT AUDITOR’S REPORT
To the Members of Yandal Resources
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Yandal Resources (“the Company”) which comprises the
statement of financial position as at 30 June 2022, the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the
Corporations Act 2001, including:
(a) giving a true and fair view of the Company’s financial position as at 30 June 2022 and of its
financial performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Company in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report, which indicates that a material uncertainty exists
that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion
is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material Uncertainty
Related to Going Concern we have determined the matters described below to be the key audit
matters to be communicated in our report.
29
Key Audit Matter
How our audit addressed the key audit
matter
Carrying amount of exploration and evaluation expenditure
Refer to Note 7
The Company has capitalised exploration and
evaluation expenditure of $19,382,704 as at 30 June
2022.
Our audit focussed on the Company’s assessment of
the carrying amount of the capitalised exploration
and evaluation asset, because this is one of the
significant assets of the Company. There is a risk
that the capitalised expenditure no longer meets the
recognition criteria of the standard and whether facts
and circumstances existed to suggest that the
carrying amount of an exploration and evaluation
asset may exceed its recoverable amount.
Our procedures included but were not limited
to:
processes
We obtained an understanding of the
associated with
the
evaluation
key
management’s
exploration
expenditure carrying values;
review
and
of
We
tested a sample of amounts
capitalised;
We
considered
the Director’s
assessment of potential indicators of
impairment;
We obtained evidence
the
Company has current rights to tenure
of its areas of interest;
that
We have discussed with management
the nature of planned ongoing
activities;
We enquired with management,
reviewed ASX announcements and
minutes of Directors’ meeting
to
ensure that the Company had not
decided to discontinue exploration and
evaluation at its area of interest; and
We examined the disclosures made in
the financial report.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s annual report for the year ended 30 June 2022, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
30
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the
Company to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
31
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended 30
June 2022.
In our opinion, the Remuneration Report of Yandal Resources Limited for the year ended 30 June
2022 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
16 September 2022
B G McVeigh
Partner
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)
giving a true and fair view of the financial position and performance of the Company; and
(ii)
complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements.
(b)
The financial statements and notes thereto also comply with International Financial Reporting Standards, as disclosed in
Note 1 and other mandatory professional reporting requirements.
(c)
The Directors have been given the declarations required by s.295A of the Corporations Act 2001.
(d)
There are reasonable grounds to believe that Company will be able to pay its debts as and when they become due and
payable.
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 TIM KENNEDY
Director
16 September 2022
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
2022
$
6,298
6,298
2021
$
25,993
25,993
-
(5,594)
(154,221)
(148,291)
(178,745)
(183,824)
(24,376)
(23,698)
(296,230)
(219,035)
20
(257,936)
(63,524)
(9,494)
(9,111)
(21,960)
(14,022)
(978,228)
(599,542)
3
-
-
(978,228)
(599,542)
-
-
(978,228)
(599,542)
12
12
(0.89)
(0.89)
(0.67)
(0.63)
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
2022
$
2021
$
4
5
6
7
8
9
3,730,000
8,047,415
116,161
318,133
6,899
3,917
3,853,060
8,369,465
19,382,704
10,422,822
195,030
208,324
19,577,734
10,631,146
23,430,794
19,000,611
213,663
213,663
511,186
511,186
213,663
511,186
23,217,131
18,489,425
10
25,154,568
19,706,570
11(b)
866,797
608,861
11(a)
(2,804,234)
(1,826,006)
23,217,131
18,489,425
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 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
11,531,206
(392,594)
Share based payments - employee performance rights
-
Balance at 30 June 2021
19,706,570
-
-
-
9,111
608,861
(599,542)
(599,542)
-
-
-
11,531,206
(392,594)
9,111
(1,826,006)
18,489,425
Balance at 1 July 2021
19,706,570
608,861
(1,826,006)
18,489,425
Total comprehensive income/ (loss) for the year
-
Transactions with owners in their capacity as owners:
Shares issued during the year
Share issue costs
Share based payments - performance rights
Share based payments - director options
Balance at 30 June 2022
5,530,751
(82,753)
-
-
25,154,568
-
-
-
161,169
96,767
866,797
(978,228)
(978,228)
-
-
-
-
5,530,751
(82,753)
161,169
96,767
(2,804,234)
23,217,131
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
2022
$
2021
$
-
50,000
(604,971)
(623,841)
7,039
26,409
Net cash provided by/(used in) operating activities
18(b)
(597,932)
(547,432)
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
Share issue costs
Funding of secured loan
Proceeds from repayment of secured loan
Net cash provided by financing activities
(50,230)
(212,030)
(116,000)
(66,246)
(9,045,433)
(5,556,305)
(9,211,663)
(5,834,581)
5,504,933
11,530,032
(82,753)
(392,594)
-
(93,000)
70,000
-
5,492,180
11,044,438
Net increase/(decrease) in cash held
Cash and cash equivalents at the beginning of the financial year
(4,317,415)
4,662,425
8,047,415
3,384,990
Cash and Cash Equivalents at the End of the Financial Year
18(a)
3,730,000
8,047,415
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.
Going concern
The Directors believe that it is reasonably foreseeable that the Company will continue as a going concern and that it is appropriate to
adopt the going concern basis in the preparation of the financial report after consideration of the following factors:
• The Company has cash at bank of $3,730,000 and had net cash outflows from operating activities of $597,932 for the year ended
30 June 2022. As of that date, the Company had net assets of $23,217,131;
• The Company raised $4,280,825 in capital under a non-renounceable pro-rata rights issue during the year and Directors are of the
view that should the Company require additional capital it has the ability to raise further capital to enable the Company to meet
scheduled exploration expenditure requirements and future plans on the development assets;
• The Company has the ability to scale back certain parts of their activities that are non-essential so as to conserve cash; and
• The Company retains the ability, if required, to wholly or in part dispose of interests in mineral exploration and development assets,
and liquid investments.
Accordingly, the directors believe that the consolidated entity will be able to continue as a going concern and that it is appropriate to
adopt the going concern basis in the preparation of the financial report.
Should the Company not achieve appropriate level of funding from some or all of the factors set out above, there is a material
uncertainty which may cast significant doubt about whether the Company will continue as a going concern and therefore whether
they will realise their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial
report.
The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that
might be necessary if the Company does not continue as a going concern.
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.
(a)
Significant accounting policies continued
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 2022.
The Company has reviewed the new Standards and Interpretations that have been issued but are not yet effective for the year ended
30 June 2022. 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 2022, the carrying value of capitalised exploration
expenditure is $19,382,704.
Share based payments - performance rights
The Company issued performance rights to their employees and directors during the year ended 30 June 2022 and an amount of
$161,169 was expensed as share based payment. Refer to Note 1(n) for the Share-Based Payments accounting policy and Note 20
for details of the performance rights issued.
Share based payments - options
The Company issued unlisted options to their directors during the year ended 30 June 2022 and an amount of $96,767 was
expensed as share based payment. Refer to Note 1(n) for the Share-Based Payments accounting policy and Note 20 for details of
the options issued.
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.
(b) Income Tax continued
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 Profit or Loss and Other
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 Profit or Loss and Other 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 2022 the Directors considered that the carrying value of the mineral tenement interests of the Company 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.
(o) Segment Reporting continued
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:
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 25% (2021: 26%)
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 / (Benefit)
Tax losses and unrecognised temporary differences
The Directors estimate that the potential future income tax benefit as at 30 June 2022 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
2022
$
2021
$
6,298
6,298
25,993
25,993
120,841
-
-
-
-
76,567
5,594
-
-
-
(978,228)
(599,542)
(244,557)
(155,881)
(2,204,221)
(1,521,065)
75,328
(68,846)
6,092
(83,964)
2,442,296
1,754,818
-
-
5,412,616
3,089,529
31,350
32,604
(4,632,447)
(2,525,356)
811,519
596,777
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 0.2% at 30 June 2022 (2021: 1%). 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/GST assets
Other receivables (i)
(i) Included in other receivables is $23,000 (2021: $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 accumulated depreciation
Reconciliations:
Plant and Equipment
Carrying amount at the beginning of the year
Additions
Depreciation
Carrying amount at the end of the year
2022
$
2021
$
3,730,000
8,047,415
3,730,000
8,047,415
-
93,113
23,048
116,161
6,235
216,927
94,971
318,133
6,899
6,899
3,917
3,917
10,422,822
4,506,326
143,000
66,246
8,816,882
5,850,250
19,382,704
10,422,822
289,532
(94,502)
195,030
239,302
(30,978)
208,324
208,324
50,230
(63,524)
195,030
18,255
212,029
(21,960)
208,324
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
Issued capital 116,091,553 (2021: 100,439,953) ordinary shares fully paid (net of
share issue costs)
2022
$
2021
$
131,175
41,782
40,706
346,509
113,551
51,126
213,663
511,186
25,154,568
19,706,570
25,154,568
19,706,570
Number
2022
Number
2021
$
2022
$
2021
Movement in issued capital
Balance at the beginning of the financial year
100,439,953
66,847,975
19,706,570
8,567,958
Shares issued under a Placement
-
12,000,000
-
6,000,000
Shares issued under a non-renounceable pro-rata rights issue
10,702,063
13,369,635
4,280,825
3,342,410
Shares issued from options exercised (refer Note 10b)
4,889,537
8,222,343
1,222,926
2,188,796
Shares issued from tenement acquisition
Share issue costs
60,000
-
-
-
27,000
-
(82,753)
(392,594)
Balance at the End of the Financial Year
116,091,553 100,439,953
25,154,568 19,706,570
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 2022, the following options were exercised:
4,888,182 options were exercised at $0.25 cents to raise $1,222,045
1,355 options were exercised at $0.65 cents to raise $881
As at 30 June 2022, the following unlisted options were on issue:
5,349,695 unlisted options – exercisable at 65 cents and expire on 31 December 2022
1,300,000 unlisted options – exercisable at 50 cents and expire on 4 April 2025
1,300,000 unlisted options – exercisable at $1 and expire on 4 April 2026
(c) Performance Rights
Balance as at 1 July 2020
Additions during the year
Balance as at 30 June 2021
Balance as at 1 July 2021
Additions during the year
Cancelled during the year
Balance at 30 June 2022
Refer to note 20 for further details.
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 20)
Fair value of options granted (refer Note 20)
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
Number
-
600,000
600,000
600,000
3,400,000
(1,875,000)
2,125,000
2022
$
2021
$
(1,826,006)
(1,226,464)
(978,228)
(599,542)
(2,804,234)
(1,826,006)
866,797
866,797
608,861
608,861
608,861
161,169
96,767
866,797
599,750
9,111
-
608,861
(978,228)
(599,542)
(0.89) cents
(0.67) cents
(0.89) cents
(0.63) cents
Number
Number
Weighted average number of ordinary shares outstanding during the year used in the
calculation of basic and diluted loss per share.
108,862,866
88,864,154
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 and review of financial reports by Rothsay Auditing
Remuneration for audit and review of financial reports by HLB Mann Judd
The Company changed its Auditors effective for year ended 30 June 2022.
$2,000 attributed to Rothsay Auditing related to under-accruals in prior years.
14 KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURES
The persons holding positions as Directors of the Company during the financial year were:
Mr Timothy Kennedy
Managing Director
Appointed Chair 1 July 2021
Resigned Chair 4 April 2022
Appointed MD 4 April 2022
Mr Gregory Evans
Non-Executive Chairman Appointed Chair 4 April 2022
Ms Katina Law
Non-Executive Director
Resigned Chair 1 July 2021
Mr David (Lorry) Hughes Managing Director
Resigned 17 May 2022
Other key management personnel
There were no other persons who had authority and responsibility for planning, directing
and controlling the major activities of the Company, directly or indirectly, during the
financial year.
(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 2022.
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
2022
$
2021
$
2,000
27,820
29,820
27,500
-
27,500
518,052
43,209
146,597
707,858
363,465
34,529
-
397,994
(b) 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.
(c) Exercise of options by Key Management Personnel
2,088,182 options issued in 2018 were exercised in the year ended 30 June 2022 at $0.25 cents to raise $522,046.
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.
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 2022 or 30 June 2021.
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:
2022
$
2021
$
870,940
3,218,160
470,700
4,559,800
1,015,540
3,747,440
310,600
5,073,580
Cash at bank
3,730,000
8,047,415
(b) 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
(978,228)
63,525
257,936
(599,542)
21,960
9,111
6,976
123,814
(2,982)
(68,973)
44,181
(122,241)
1,338
97,761
(597,932)
(547,432)
(c) Non cash financing and investing activities
During the year ended 30 June 2022, 60,000 shares, valued at $27,000 were issued for the acquisition of tenements.
There were no non-cash financing and investing activities during the year ended 30 June 2021.
19 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
2022
$
2021
$
3,730,000
8,047,415
116,161
318,133
3,846,161
8,365,548
213,663
213,663
511,186
511,186
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 2022.
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.
19 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
3,730,000
116,161
3,846,161
213,663
213,663
8,047,415
318,133
8,365,548
511,186
511,186
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,730,000
116,161
3,846,161
213,663
213,663
8,047,415
318,133
8,365,548
511,186
511,186
Weighted
average
effective
interest rate
%
0.02%
-
-
-
-
0.25%
-
-
-
-
As at 30 June 2022
Financial Assets:
Cash
Receivables
Financial Liabilities:
Payables
As at 30 June 2021
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.
20 SHARE BASED PAYMENTS
(a) Performance Rights
(i) 30 June 2022
During the year ended 30 June 2022, $161,169 was expensed as a share based payment respect of the Company’s Class A, B, C and
D performance rights, with the fair value being recognised over the vesting period. As at 30 June 2022, a total of 2,125,000
performance rights remain unvested.
In November 2021, directors were granted a total of 2,100,000 Class B, C and D performance rights.
In December 2021, employees were granted a total of 1,300,000 Class C and D performance rights as announced to the ASX on 18
January 2022.
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 and were
approved by shareholders at the General Meeting held on 19 November 2021. The issue to Directors was on 22 November 2021 and
the issue to employees was granted on 6 December 2021.
Each Performance Right will, at the election of the holder, vest, and convert to one fully paid ordinary share, subject to the
satisfaction of certain Performance Conditions.
The terms of the Performance Rights on issue are as follows:
Class of Performance Rights
Service Condition
Performance Condition
Class B Performance Rights
The holder or the holder’s representative
remains engaged as an employee or
Director until 1 June 2022.
Class C Performance Rights
The holder or the holder’s representative
remains engaged as an employee or
Director until 1 June 2023.
Class D Performance Rights
The holder or the holder’s representative
remains engaged as an employee or
Director until 1 June 2024.
(a) On or before 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;
or
(b) On or before 1 July 2022 a Takeover
Event occurs where the bidder pays a
price of $1.00 or more per Share.
(a) On or before 1 July 2023 the volume
weighted average price of the
Company's Shares over 20
consecutive Trading Days on which
the Shares trade is $2.00 or more;
or
(b) On or before 1 July 2023 a Takeover
Event occurs where the bidder pays a
price of $2.00 or more per Share.
(a) On or before 1 July 2024 the volume
weighted average price of the
Company's Shares over 20
consecutive Trading Days on which
the Shares trade is $3.00 or more;
or
(b) On or before 1 July 2024 a Takeover
Event occurs where the bidder pays a
price of $3.00 or more per Share.
20 SHARE BASED PAYMENTS continued
(a) Performance Rights continued
(ii) 30 June 2021
600,000 Class A performance rights were issued to employees of the Company.
The performance rights were granted to nil consideration, do not have any 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 on issue:
Number granted
Grant date
Employees
Directors
Class A
Class C
Class D
Class B
Class C
Class D
Total
600,000
650,000
650,000
700,000
700,000
700,000
4,000,000
11 Jun 2021
6 Dec 2021
6 Dec 2021
22 Nov
2021
22 Nov
2021
22 Nov
2021
Expiry date of milestone achievements
1 Jul 2022
1 July 2023
1 July 2024
1 Jul 2022
1 Jul 2023
1 Jul 2024
Share price hurdle
Fair value per right
$1.00
$2.00
$3.00
$1.00
$2.00
$3.00
$0.3077
$0.0699
$0.0949
$0.0969
$0.1043
$0.1291
Number cancelled at 30 June 2021
-
N/A
N/A
N/A
N/A
N/A
-
Number cancelled at 30 June 2022
(275,000)
(200,000)
(200,000)
(400,000)
(400,000)
(400,000)
(1,875,000)
Number vested at 30 June 2021
Number vested at 30 June 2022
-
-
Number remaining at 30 June 2021
600,000
N/A
N/A
N/A
N/A
N/A
-
-
-
-
-
-
-
-
-
-
-
-
600,000
Number remaining at 30 June 2022
325,000
450,000
450,000
300,000
300,000
300,000
2,125,000
Total fair value at grant date
$184,620
$67,830
$73,010
$90,370
$45,435
$61,685
$522,950
Value of rights cancelled –
year ended 30 June 2022
Total fair value that would be recognised
over the vesting period if rights are
vested
($84,618)
($38,760)
($41,720)
($51,640)
($13,980)
($18,980)
($249,628)
$100,003
$31,455
$42,705
$29,070
$31,290
$38,730
$273,253
Amount expensed at 30 June 2021
$9,111
-
-
-
-
-
$9,111
Amount expensed at 30 June 2022
$90,631
$11,328
$9,379
$28,940
$11,847
$9,044
$161,169
Total fair value still to be recognised at
30 June 2022 if all remaining rights are
vested
$260
$130
$19,443
$29,686
$20,127
$33,326
$102,972
20 SHARE BASED PAYMENTS continued
(a) Performance Rights continued
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
Class A
$0.555
$1.00
Nil
Employees
Class C
$0.395
$2.00
Nil
Rights
Class D
$0.395
$3.00
Nil
Class B
$0.4519
$1.00
Nil
Directors
Class C
$0.4519
$2.00
Nil
Class D
$0.4519
$3.00
Nil
Expiry date
1 July 2022
1 July 2023
1 July 2024
1 July 2022
1 July 2023
1 July 2024
Expected future
volatility
Risk free rate
Dividend yield
85%
-0.01%
Nil
80%
0.54%
Nil
80%
0.89%
Nil
80%
0.55%
Nil
80%
0.55%
Nil
80%
0.95%
Nil
20 SHARE BASED PAYMENTS continued
(b) Options
During the year ended 30 June 2022, the Company issued options to its directors, Mr Evans and Mr Kennedy. An amount of $96,767
was expensed as a share based payment.
Details of the options issued are as follows:
Tranche 1 Options
Tranche 2 Options
Total
Unlisted options to be issued for nil
consideration. Each option is
exercisable into one ordinary share at
any time on or before the expiry date
None
Black Scholes
19 May 2022
-
4 April 2025
0.200
0.500
2.901
85
-
0.0668
Unlisted options to be issued for nil
consideration. Each option is
exercisable into one ordinary share
at any time between meeting the
vesting conditions and the expiry
date
Continuous service until 4 April 2023
Black Scholes
19 May 2022
4 April 2023
4 April 2026
0.200
1.000
2.901
85
-
0.0582
Tim Kennedy
Gregory Evans
Tim Kennedy
Gregory Evans
1,000,000
66,799
300,000
20,040
1,000,000
58,185
300,000
17,456
2,600,000
162,480
Tim Kennedy
Gregory Evans
Tim Kennedy
Gregory Evans
1,000,000
300,000
-
-
1,300,000
1,000,000
300,000
1,000,000
300,000
2,600,000
66,799
20,040
7,637
2,291
96,767
-
-
50,548
15,165
65,713
Details
Vesting conditions
Methodology
Grant date
Vesting date
Expiry date
Share price at grant date ($)
Exercise price ($)
Risk-free rate (%)
Volatility (%)
Dividend yield (%)
Fair value per Option ($)
Recipient
Number
Total fair value ($)
Recipient
Number vested at 30 June
2022
Number remaining at 30
June 2022
Amount expensed to 30
June 2022
Amounts to be expensed in
future periods if voting
condition is met
21 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 2022
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.
22 CONTINGENCIES
There are no contingent assets or liabilities at reporting date.
23 EVENTS AFTER REPORTING DATE
In September 2022, the Company issued 1,000,000 unlisted options to employees under its Employee Incentive Scheme, the unlisted
options vest immediately and are exercisable on or before 1 September 2025 at an exercise price of 30 cents.
At the date of the Directors’ Declaration no other matter or circumstance has arisen since 30 June 2022 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 2022.
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 12 September 2022 were:
Gold Road Resources Limited
Au Xingao Investment Pty Ltd
Merrill Lynch (Australia) Nominees Pty Limited
Abadi Investments Pty Ltd
Mr Kenneth Joseph Hall
23,362,809
17,791,981
8,718,569
7,960,289
7,110,000
UNQUOTED SECURITIES OPTIONHOLDINGS
Nature
Expiry Date
Exercise Price of Options
Number under Option
Number of Holders
Unlisted options
31 December 2022
Unlisted options
Unlisted options
4 April 2025
4 April 2026
Unlisted options
1 September 2025
65 cents
50 cents
$1
30 cents
5,349,695
1,300,000
1,300,000
1,000,000
119
2
2
4
The numbers of unlisted options with an exercise price $0.65, expiring 31 December 2022 held by the substantial option holders as at
12 September 2022 were:
Gold Road Resources Limited
Au Xingao Investment Pty Ltd
Mr Kenneth Joseph Hall
Avenira Gold Pty Ltd
1,665,630
1,217,372
500,000
383,334
CLASS OF SHARES AND VOTING RIGHTS
As at 12 September 2022, there were 655 holders of the ordinary shares, 127 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 12 September 2022)
Category
1
1,001
5,001
10,001
100,001
–
–
–
–
–
1,000
5,000
10,000
100,000
over
TOTAL HOLDERS
Number of Shareholders
45
146
102
275
87
655
The number of shareholders holding less than a marketable parcel as at 12 September 2022 was 31.
Twenty largest shareholders as at 12 September 2022
Name
1 GOLD ROAD RESOURCES LIMITED
2 AU XINGAO INVESTMENT PTY LTD
Balance
%
23,362,809
20.124%
17,791,981
15.326%
3 MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
8,718,569
7.510%
4 ABADI INVESTMENTS PTY LTD
7,960,289
6.857%
5 MR KENNETH JOSEPH HALL
7,110,000
6.124%
6 AVENIRA GOLD PTY LTD
7
MS RENAE WAINWRIGHT & MR DAVID LAWRENCE HUGHES
4,390,932
3.782%
3,845,500
3.312%
8 BILL BROOKS PTY LTD
1,899,680
1.636%
9 HERA INVESTMENTS PTY LTD
10 EST MR PETER PIOTR MACKOW
11 MRS MARISA MACKOW
1,761,720
1.518%
1,701,265
1.465%
1,544,638
1.331%
12 MRS KATINA MARIA ETHEL LAW & MR PETER S LAW
1,390,000
1.197%
13 UBS NOMINEES PTY LTD
1,251,470
1.078%
14 CAROLINE HOUSE SUPER FUND PTY LTD
1,112,608
0.958%
15 GARRETT SMYTHE LTD
16 ZINFANDEL EXPLORATION PTY LTD
1,096,623
0.945%
1,000,000
0.861%
17 B & M LAWS SUPER FUND PTY LTD
1,000,000
0.861%
18 KESLI CHEMICALS PTY LTD
19 POUNAMU CAPITAL PTY LIMITED
20 MR RODERICK JAMES TRIGWELL
971,126
0.837%
947,917
0.817%
822,234
0.708%
Total Securities of Top 20 Holdings
89,679,361
77.249%
Total of Securities
116,091,553
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
Greenstone Hill
Tuscana
Mt McClure Gold Project
Success
Parmelia
Challenger
Mt McClure
Mt McClure
Mt McClure
Mt McClure
Mt McClure
Success
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
P53/1714
P53/1715
M36/691
M36/692
M36/693
P36/1892
P36/1893
P36/1894
P36/1895
P36/1896
P36/1922
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
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%
100%
100%
100%
Locality
Tenement ID
Holder
Gordans Gold Project
Beneficial Ownership of
Yandal Resources Ltd
Notes
Mt Jewell
Mt Jewell
Mulgarrie
Gordons
Wild Dog
Mt Vetters
Gordons
Mulgarrie
Gordons
Gordons
Mt Jewell
E24/198
E27/536
E27/570
E27/601
E27/602
E27/605
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited/PVW
Yandal Resources Limited
Yandal Resources Limited
Yandal Resources Limited
M27/11
Yandal Resources Limited
M27/237
Yandal Resources Limited
M27/502
Yandal Resources Limited
P26/4577
Yandal Resources Limited
P27/2206
Yandal Resources Limited
Boomerang Dam
P27/2214
Yandal Resources Limited
Gordon North
Gordon North
Gordon North
Gordon North
Mulgarrie
Kanowna
Mt Eba
P27/2216
Yandal Resources Limited/Moho
P27/2217
Yandal Resources Limited/Moho
P27/2218
Yandal Resources Limited/Moho
P27/2226
Yandal Resources Limited/Moho
P27/2234
Yandal Resources Limited
P27/2325
Yandal Resources Limited
P27/2331
Yandal Resources Limited
Called Back Leases
P27/2332
Yandal Resources Limited
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
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%
1
1
1
1
Locality
Tenement ID
Holder
Gordans Gold Project continued
Beneficial Ownership of
Yandal Resources Ltd
Notes
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordons
Gordon
Gordons
Gordons
Gordons
White Dam
White Dam
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
P27/2456
Yandal Resources Limited/Moho
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%
100%
E26/229
Yandal Resources Limited
100%
1
Notes:
1.
These tenements are the subject of the Moho Resources Limited Heads of Agreement dated 10 November 2021. .
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