ZENITH MINERALS LIMITED
(ABN 96 119 397 938)
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2021
TABLE OF CONTENTS
Corporate Information .................................................................................................................................... 1
Chairman’s Report ......................................................................................................................................... 2
Review of Operations .................................................................................................................................... 4
Directors’ Report .......................................................................................................................................... 27
Auditors Independence Declaration ............................................................................................................ 42
Consolidated Financial Statements ............................................................................................................. 43
Consolidated Statement of Profit or Loss and Other Comprehensive Income .............................. 43
Consolidated Statement of Financial Position ................................................................................ 44
Consolidated Statement of Changes in Equity ............................................................................... 45
Consolidated Statement of Cash Flows ......................................................................................... 46
Notes to the Consolidated Financial Statements ........................................................................... 47
Directors’ Declaration .................................................................................................................................. 78
Independent Audit Report............................................................................................................................ 79
Corporate Governance Statement .............................................................................................................. 84
Additional Shareholder Information ............................................................................................................. 85
Interest in Mining Tenement ........................................................................................................................ 87
CORPORATE INFORMATION
DIRECTORS
Peter J Bird (Executive Chairman)
Michael J Clifford (Chief Executive Officer)
Stanley A Macdonald (Non-Executive Director)
Julian D Goldsworthy (Non-Executive Director)
Graham D Riley (Non-Executive Director)
COMPANY SECRETARY
Nicholas Ong
AUSTRALIAN BUSINESS NUMBER
96 119 397 938
REGISTERED OFFICE AND
PRINCIPAL PLACE OF BUSINESS
2nd Floor, 33 Ord Street
WEST PERTH WA 6005
PO Box 1426
WEST PERTH WA 6872
Telephone: +61 (0)8 9226 1110
Email: info@zenithminerals.com.au
Website: www.zenithminerals.com.au
SHARE REGISTER
Automic Registry Services | Automic Group
Level 2, 267 St Georges Terrace
PERTH WA 6000
Level 5,126 Phillip Street
SYDNEY NSW 2000
Securityholder Correspondence: -
GPO Box 5193
SYDNEY NSW 2001
Telephone:
1300 288 664 (Within Australia)
From Overseas: +61 (0)2 9698 5414
Email: hello@automicgroup.com.au
AUDITORS
PKF Perth
Level 4/ 35 Havelock Street
WEST PERTH WA 6005
Telephone: +61 (0)8 9426 8999
Facsimile: +61 (0)8 9426 8900
SOLICITORS
Allion Partners
Level 9/ 863 Hay Street
PERTH WA 6000
Telephone: +61 (0)8 9216 7100
Facsimile: +61 (0)8 9324 1075
BANKERS
ANZ
1275 Hay Street
WEST PERTH WA 6005
Telephone: +61 (0)8 6165 8300
Facsimile: +61 (0)8 6165 8399
SECURITIES EXCHANGE LISTING
Australian Securities Exchange
Home Exchange: Perth, Western Australia
Code: ZNC
1
CHAIRMAN’S REPORT
Dear fellow shareholders,
Zenith Minerals Limited
In the early part of CY 2020 the Company refined its Strategy to a core focus on the precious and base
metal commodity suites.
We strongly support the longer-term “high demand - short supply” thematic for base metals and their
very important contribution to a more sustainable future particularly when coupled to commodities
targeting cleaner electrification of major sectors such as transport.
From an internal perspective and in keeping with the Strategy, non-core assets in the portfolio continue
to be evaluated with the view to creating value events and restructuring our exposures. This process
will continue into the forthcoming year.
For all of us the past year has not been without its challenges because of the pandemic, but in spite of
this we can point to achieving a number of very positive milestones within the business.
Some of these milestones include;
• Delivering a suite of very strong exploration results from wholly owned precious and base metal projects;
•
Ensuring the Company was placed on a very robust fiscal footing with a capital raising post year end of
$6M and the restructuring of non-core assets (currently worth an additional appx. $6M);
• Maintaining a very significant exposure to a major Tier 1 base metals discovery by way of a free carried
joint venture interest;
• Resultant recognition of performance with strong value accretion for the business overall reflected in a
doubling of the share price; and
•
Introducing institutional investor support into the business.
The key assets in a bit more detail
The focus on precious and base metals has seen significant progression and exploration results including:
•
•
EJV - A major zinc-lead discovery within the Earaheedy Joint Venture (Zenith 25%). The Earaheedy
Zinc Joint Venture (EJV) is managed by Rumble Resources Ltd (ASX:RTR) and the EJV exploration
lease (E69/3464) covers approximately 45 lineal kilometres of the prospective zinc host rock sequence.
Zenith is free carried all the way to the completion of a Bankable Feasibility Study on any deposit
discovered within the EJV ground.
A 40,000m, multi-rig drill program is now well underway at the EJV with the initial aim of defining the
limits of the zinc mineralisation. The second phase follow-up drilling has already doubled the footprint
of zinc mineralisation at the Chinook prospect to over 3km x 1.8km. Chinook is one of three main targets
under assessment within the EJV.
Subsequent to the EJV discovery, Zenith secured seven wholly owned exploration licences totalling 100
lineal kilometres of what is interpreted to be the prospective zinc host rock sequence within the
Earaheedy Basin. The new exploration licence applications were selected based on key geological and
geochemical criteria supported by previous exploration the Company has completed within the basin for
both zinc and manganese.
100% owned Develin Creek Copper-Zinc project (QLD) - strong copper-zinc sulphides were intersected
in a twin hole program completed at the Sulphide City resource area, that may lead to a resource revision
once further drilling is completed late this year. Importantly, we have now identified eight drill targets
extending over the full length of the project area (50km of strike) that are ready for drill testing in a 40-
hole program which commenced shortly after year end. The goal is to build upon the current defined
Sulphide City Inferred Mineral Resource 2.57Mt @1.76% Cu, 2.01% Zn, 0.24g/t Au & 9.6g/t Ag.
2
CHAIRMAN’S REPORT
Zenith Minerals Limited
•
•
100% owned Red Mountain Gold project (QLD) - We have continued to define strong gold zones in
step-out drilling at the Red Mountain breccia pipe. Mineralisation remains open at depth and is the focus
of Further work. Recent modelling of geophysical data and integration of geological information defines
a new drill target in the centre of the Red Mountain gold project. The Company will drill test the magnetic
core zone as part of the ongoing Red Mountain gold drilling campaign.
100% owned Split Rocks Gold project (WA) – Ongoing drilling within a shallow dipping three kilometer
long shear zone continues to generate good gold results in what is regarded as a very strategic gold
play.
Non-Core Assets
As mentioned earlier we have also re-structured our portfolio in relation to some of our non-core assets which
included some lithium and REE projects This was undertaken by way of a series of cash, or cash plus equity
transactions. As a direct result of these actions our investments are now worth appx. $6m1 versus no tangible
value within our investment portfolio 12 months ago, and in doing so adding additional support to the balance
sheet.
Looking forward and what we are striving to do
As we advance into a new financial year, we anticipate that the speed of change within our portfolio will not slow.
We would anticipate that our business will continue to mature as we strive to bring projects into the maiden
resource and evaluation stage. This change will also require changes within the human resource piece of the
business to cater for new value generating initiatives.
I would like to extend my thanks to the commitment of the Board members and CEO Mick Clifford. Mick in-turn
has been supported by a small but dedicated, hard-working management and field-based team.
The upcoming year will be exciting, and I look forward to your ongoing support in the year ahead. We will
continue to strive to deliver high impact results and create value for all shareholders.
Peter Bird
Executive Chairman
28 September 2021
_________
Zenith Minerals Limited
REVIEW OF OPERATIONS
FOR THE YEAR ENDING 30th JUNE 2021
MAJOR ZINC DISCOVERY & ONGOING EXPLORATION SUCCESS
AT THREE GOLD & COPPER PROJECTS
MAJOR ZINC DISCOVERY
• Following the announcement in mid-April of a major zinc-lead discovery at Earaheedy
in Western Australia the first phase follow-up drilling has now doubled the footprint
of zinc mineralisation at the Chinook prospect to over 3km x 1.8km. Chinook is one
of three main targets under assessment in the Earaheedy Zinc Joint Venture (EJV).
Drill results from the follow-up phase include: 49m @ 2.45% Zn+Pb (oxide) from 18m
below surface (ASX Release 8-Jul-21). These near surface oxide results compliment
earlier sulphide results including: 17m @ 5.21% Zn+Pb, 9m @ 5.3% Zn+Pb and 6m @
6.57% Zn+Pb.
• A 40,000m, multi-rig drill program is now underway with the initial aim of defining the
limits of the zinc mineralisation. The EJV comprises Zenith and Rumble Resources
Limited (ASX:RTR). Zenith holds a 25% free carried interest in the EJV until
completion of a Bankable Feasibility Study. Both partners hold a pre-emptive right.
COPPER RESOURCE
• Develin Creek Copper-Zinc Project Queensland (ZNC 100%). Strong massive copper-
zinc sulphides were intersected in a twin hole program completed at the Sulphide City
resource area including: 34m @ 3.5% Cu+Zn and 29m @ 3.5% Cu+Zn (ASX Release 5-
Jul-21). Eight drill targets extending over the full length of the project area (50km of
strike) are ready for drill testing in a 40-hole program which commenced shortly after
year end.
GOLD PROJECTS
• Red Mountain Gold Project Queensland (ZNC 100%). Drilling to date has outlined a
discrete sub-vertical high-grade gold zone (Western Zone) to a vertical depth of 200m,
with the zone remaining open at depth and subject to ongoing testing. Near surface
high-grade drilling intersections (ASX Releases 3-Aug-20 & 13-Oct-20, 9-Nov-20, 21-
Jan-21), include:
• 13m @ 8.0 g/t Au from surface, incl. 6m @ 16.7 g/t Au
•
•
•
•
15m @ 3.5 g/t Au, incl. 2m @ 22.4 g/t Au
12m @ 4.9 g/t Au, incl. 6m @ 9.4 g/t Au
5m @ 10.4 g/t Au, incl 1m @ 49.9 g/t Au
10m @ 2.7 g/t Au from surface, incl. 4m @ 4.9 g/t Au
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REVIEW OF OPERATIONS
Zenith Minerals Limited
• Split Rocks Gold Project Western Australia (ZNC 100%). Drilling throughout the year
returned, high-grade near surface gold mineralisation at multiple targets (ASX Release
5-Aug-20, 2-Sep-20, 19-Oct-20, 28-Oct-20, 15-Jan-21, 11-Mar-21, 21-Apr-21, 24-Jun-21),
including:
• Dulcie North: 32m @ 9.4 g/t Au, incl 9m @ 31.4 g/t Au
• Dulcie Laterite Pit:
• 2m @ 14.5 g/t Au, incl. 1m @ 20.8 g/t Au,
• 18m @ 2.0 g/t Au (EOH) incl. 1m @ 23.7 g/t Au &
• 14m @ 3.5 g/t Au
• Estrela Prospect: 2m @ 9.8 g/t Au (open to north & south)
• Dulcie Far North: 5m @ 5.6 g/t Au incl. 4m @ 6.8 g/t Au, 3m @ 70 g/t Au
• Water Bore: 3m @ 6.6 g/t Au
Infill and extensional aircore drilling is now required at Dulcie Far North to be followed
by RC drilling on the significant near surface gold results at the 4 Dulcie targets, Dulcie
Laterite Pit, Dulcie North, Dulcie Far North & Water Bore. A further 7 of the 18 gold
targets generated by Zenith extending over 18km of strike are yet to have first pass drill
testing.
• During the financial year Zenith raised $5.1 million (before cost) in an oversubscribed
placement in July 2020 to accelerate exploration with focus on its core gold, copper
and base metal projects. The Company also completed the raising of $6m (before cost)
in August 2021 from Australian and international institutional and sophisticated
investors. The new funds will be directed towards exploration program with a focus on
Develin Creek VMS Copper Project and the Red Mountain and Split Rocks gold projects.
• On 18 February 2021, the Company announced that it had sold its USA lithium assets
to joint venture partner, Bradda Head Lithium Limited (LON:BHL), for $250k cash and
15% equity position in Bradda Head. Bradda Head subsequently listed on the AIM
market of the London Stock Exchange in July 2021. Zenith has 43,947,507 shares in
Bradda Head valued at $6.4M as at the date of this report. The Bradda Head shares are
subject to escrow (refer to ASX announcement 20-07-21).
• Post year end the Company entered into an amended share purchase agreement for
the sale of the Laramie project in return for $50k cash and 2.5m shares in American
Rare Earths Limited (ASX:ARR). The Transaction was completed on 30 June 2021. The
Company held 2.5m ARR shares valued at $197.5k at year end.
• The Company has entered into a binding heads of agreement with Bindi Metals Limited
for the sale of non-core Flanagans copper-gold tenement in Queensland for $450,000,
which consist of $200k cash and IPO shares valued at $250k. The agreement is
conditional on the successful listing via an initial public offering (IPO) of Bindi on the
Australian Securities Exchange (ASX) before 31 December 2021, and other customary
regulatory approvals such as ASX admission and ministerial approval to transfer
tenement title (refer ASX announcements 23 & 24-Jun-21).
5
REVIEW OF OPERATIONS
Zenith Minerals Limited
COVID-19 Impact Update
In relation to COVID-19 Zenith’s Board is mindful of the significant impact the virus is having on the
community and is continuing to assess the potential risks associated with its activities. Zenith’s projects are
in remote country areas or on grazing properties where Zenith’s crew are geographically isolated.
The Company continues to act on advice provided by the Federal and State Governments with the health
and safety of Zenith’s crew, contractors, and local stakeholders a priority. Zenith has in place a COVID-19
site health management plan and requires that all its field crews comply with the requirements of that plan.
In addition, the Company is managing projects across state borders and is ensuring it complies with both
Federal and State based travel and border restrictions by employing, where available local staff and using
locally based contractors, consultants. Most Zenith office-based personnel in Western Australia have
returned to work as normal.
SUMMARY OF ACTIVITIES AND RESULTS
In line with its vision Zenith Minerals has an extensive project portfolio of gold and base metals
broadly subdivided as follows:
Gold
Copper-Zinc
JV’s
*Split Rocks
100%
*Develin Creek
100%
*Earaheedy Zinc
(25%)
and other gold,
polymetallic &
battery minerals
*Red Mountain
100%
Jackadgery
earning 90%
Cowarra
16 - 22.5%
*Depicts active drilling and exploration during the year
CORE PROJECTS - HIGHLIGHTS
Develin Creek Copper-Zinc QLD (ZNC 100%)
Resource upside and 8
targets
for drill
ready
testing
An initial program of 3 diamond drill holes at the Sulphide City resource area
(Figure 2) confirmed high-grade copper and zinc zones with associated gold
and silver in massive sulphides (ASX Release 5-Jul-21). Results include:
• ZDCDD002 - 29m @ 2.3% Cu, 1.2% Zn, 0.3 g/t Au & 4.2 g/t Ag incl.
12.3m @ 4.2% Cu, 2.5% Zn, 0.6 g/t Au & 7.3 g/t Ag
• ZDCDD003 - 34m @ 2.0% Cu, 1.5% Zn, 0.2 g/t Au & 4.9 g/t Ag incl.
10m @ 3.9% Cu, 0.4% Zn, 0.3 g/t Au & 6.9 g/t Ag.
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Results point towards a potential increase in copper grade within the higher-
grade portions of the existing Inferred Mineral Resource although additional
drilling is required to see if this trend can be extrapolated throughout the deposit.
New diamond drill holes also define discrete zones of high-grade zinc within the
copper rich intervals noted above. These zones were not identified in the historic
resource drilling, and include:
• ZDCDD002 - 4m @ 4.7% Cu, 6.1% Zn, 1.2 g/t Au & 9.8 g/t Ag
• ZDCDD003 - 10m @ 1.8% Cu, 4.2% Zn, 0.2 g/t Au & 5.4 g/t Ag
This drilling is part of a broader plan to build upon this JORC resource and add
others to the Develin Creek copper-zinc volcanogenic massive sulphide (VMS)
inventory.
Both this drilling and the recently released geophysical targets provide strong
justification for continued drill evaluation.
Planned Programs
A large-scale drill program (40-holes) commenced shortly after year end. The
program has the key aims of infill drilling the high-grade copper zones at the
Sulphide City resource area as well as testing the four high-quality near
resource and four high conviction regional targets at Snook and Wilsons
outlined in late June stemming from recently completed geophysical surveys
(ASX Release 28-Jun-21).
Twin hole diamond drilling at the Sulphide City JORC resource area also
provided material for metallurgical testwork, which is in progress.
Acceleration of
exploration programs
Metallurgical testwork in
progress
Red Mountain Gold – QLD (ZNC 100%)
Diamond Drill program
ongoing with high-grade
gold zone open down
plunge to NE
Ongoing exploration activity at the 100% owned Red Mountain gold project
located in Queensland (ASX Release 19-May-21) continues to provide highly
encouraging high-grade gold drill assay results. Drilling to date (44-holes
totalling 6,378m) has outlined a discrete sub-vertical high-grade gold zone
(Western Zone) to a vertical depth of 200m, with the zone remaining open at
depth.
The confirmation of extensive visible gold and strong gold grades in what we
believe to be the upper levels of a breccia pipe system will now lead us to push
the drilling program to explore much deeper – that is below the 200 vertical
metre level. As illustrated in Figure 5, we are potentially still only exposing the
upper portion of a breccia pipe system if other similar well documented systems
such as the Mt Wright gold mine are a proxy.
Drilling to continue in
CY 2021-2022
Planned Programs
Red Mountain is a maiden discovery by Zenith and is located within a very
prospective and proven geological region. We anticipate that drilling campaigns
at the Red Mountain Project will continue well into CY2021-2022.
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REVIEW OF OPERATIONS
Zenith Minerals Limited
380 drill holes completed
in the last 12 months
intersecting multiple high-
grade gold zones at 6
prospect areas that are
high priority follow-up
targets
Split Rocks Gold Project – WA (ZNC 100%)
A total of 321 AC holes (15,857m) and 59 RC holes (5,819m) were completed
across the Split Rocks target areas to test for new zones of gold mineralisation
and to extend other zones which had been poorly defined by previous wide-
spaced or ineffective historic drilling. Drilling has been highly successful in
outlining high-grade gold mineralisation at multiple target zones throughout the
year. (Figures 7-8) refer to ASX Releases 5-Aug-20, 2-Sep-20, 19-Oct-20, 28-
Oct-20, 15-Jan-21, 11-Mar-21, 21-Apr-21, 24-Jun-21).
Dulcie Laterite Pit
The large-scale gold bearing bedrock shear zone at the Dulcie Laterite Pit area
has been confirmed to extend over 2km in strike and remains open down dip
(at 300) with a thickness ranging from 4 to 40m (refer to ASX 15-Jan-21 and
21-Apr-21). Drill results include: 3m @ 17.9 g/t Au, 19m @ 1.6 g/t Au, 14m @
3.5 g/t Au and 8m @ 4.8 g/t Au.
Dulcie Far North - AC holes along with previous Zenith AC and historic drilling
on lines 100m to 200m apart outline a zone of gold mineralisation 1km long x
300m wide. Results include: 3m @ 70 g/t Au, 5m @ 5.6 g/t Au incl. 4m @ 6.8
g/t Au (as previously reported 24-Jun-21).
Scott’s Grey - results from extensional drilling at Scott’s Grey provide very
strong encouragement for further work. Results announced during the year
include 8m @ 4.1 g/t Au – an up-dip extension to gold zones previously defined
by Zenith surrounding the Scott’s Grey workings, 10m @ 0.9 g/t Au (eoh) incl.
4m @ 1.6 g/t Au – a potential new gold zone southwest of Scott’s Grey, and
4m @ 4.8 g/t Au a new zone of gold mineralisation 100m northeast of the
historic workings that remains open to the east, north and south.
Dulcie North - results from confirmatory and extensional drilling, in an area
where there is some doubt as to the location of historic drill holes, outlined
strong near surface gold mineralisation that requires follow-up aircore and RC
testing, including: 16m @ 1.3 g/t Au incl 4m @ 2.9 g/t Au and 4m @ 1.7 g/t
Au, and 4m @ 1.6 g/t Au. These results are in addition to those intersected
earlier in the year including 32m @ 9.4 g/t Au (incl 9m @ 31.4 g/t Au).
Estrela Prospect: 2m @ 9.8 g/t Au (open to north & south) and Water Bore:
3m @ 6.6 g/t Au
Note Zenith retains gold rights at Dulcie Far North, Dulcie North, Dulcie Laterite
Pit Zone and Scott’s Grey below 6m, subject to the Dulcie option agreement
(ASX Release 21-Mar-19).
Planned Programs
Drilling is set to continue in CY2021-22 with the view to defining a mineral
resource.
8
REVIEW OF OPERATIONS
Zenith Minerals Limited
EARAHEEDY ZINC
Major zinc discovery
Following the announcement in mid-April of a major zinc-lead discovery at
Earaheedy in Western Australia - first phase follow-up drilling part of an
ongoing 40,000m drill campaign, doubled the footprint of zinc mineralisation
at the Chinook prospect to over 3km x 1.8km.
Doubling of mineralised
footprint
Once overall extent of mineralisation is better understood drilling will then
focus on defining zones of higher-grade Zn-Pb-Mn-Ag mineralisation,
including targeting inferred high-grade feeder faults.
Upgrade of Exploration
Target Size
Target is very large, near
surface open pit zinc-
lead-silver mineralisation
A multi-rig 40,000m drill
program is underway
Rumble’s Zn-Pb Exploration Target at the Earaheedy Project is between 100
to 120 million tonnes at a grade ranging between 3.5% Zn-Pb to 4.5% Zn-Pb.
The Exploration Target is at a shallow depth (80m), and over 45kms of
prospective strike (completely open) has been defined within the Earaheedy
Project (ZNC & RTR ASX Releases 8-Jul-21). The Exploration Target, being
conceptual in nature, takes no account of geological complexity, possible
mining method or metallurgical recovery factors. The Exploration Target has
been estimated to provide an assessment of the potential for large-scale Zn-
Pb deposits within the Earaheedy Project. The Exploration Target has been
prepared and reported in accordance with the 2012 edition of the JORC Code.
Earaheedy Zn-Pb Project – Exploration Target
Range
Upper
Lower
Tonnes
Grade
120,000,000
4.5% Zn+Pb
100,000,000
3.5% Zn+Pb
Near surface exploration target down to 100 metre - shallow depth.
The potential quantity and grade of the Exploration Target is conceptual in
nature. There has been insufficient exploration to estimate a Mineral Resource
and it is uncertain if further exploration will result in the estimation of a Mineral
Resource.
The Exploration Target is based on the current geological understanding of
the mineralisation geometry, continuity of mineralisation and regional geology.
This understanding is provided by an extensive drill hole database, regional
mapping, coupled with understanding of the host stratigraphic sequence and
a feasibility study completed at the nearby Paroo Pb deposit. Included in the
data on which this Exploration Target has been prepared is recent RC drilling
of 17 holes for approximately 2500m (RC/Diamond) (assays returned for 4
and 13 holes assays pending), 30 holes for 2690m (three RC stages), 33 holes
for 3593m recently completed and diamond drilling of 4 holes for 1199.8m
completed by Rumble along with 64 historic RC drill holes completed within
the project area (E69/3464) by previous explorers (refer exploration results in
previous RTR & ZNC ASX announcements dated 5 February 2019 and 12
October 2017, 23rd January 2020, 19 April 2021 and 2 June 2021 which
continue to apply and have not materially changed). Some of the
considerations in respect of the estimation of the Exploration Target include:
• Drilling results have demonstrated strong continuity of shallow, flat
lying mineralisation;
• Over 45km’s of prospective strike and open (refer image 7);
9
REVIEW OF OPERATIONS
Zenith Minerals Limited
• Minimum 600m of width (based on shallow 7.5° and shallow depth to
120m, based on drilling results.
• True width (thickness) of mineralisation up to 52 metres received in
drilling results; and
• Specific gravity (SG) of 2.5 (world average SG of sandstone – not
accounting for metal).
The Company intends to test the Exploration Target with drilling and this
further drilling is expected to extend over approximately 12 months. Grade
ranges have been either estimated or assigned from lower and upper grades
of mineralisation received in drilling results. A classification is not applicable
for an exploration target.
Mineralisation remains open and unconstrained in all directions.
Assays have been received from the first 4 RC drill holes with laboratory
assays pending on the remaining 9 holes. All 13 holes tested positive using
pXRF (ASX Release 8-Jul-21). Results include very thick mineralised
intersections:
• EHRC083 - 49m @ 2.45% Zn+Pb from 18m
o Incl. 38m @ 2.78% Zn+Pb, 4.6% Mn, 2.9g/t Ag from 23m
o with 9m @ 3.67% Zn+Pb, 7.44% Mn, 3.6 g/t Ag from 46m
o this is near surface oxide Zn-Pb-Mn-Ag mineralisation at the
up-dip position on the south-western limit of drilling.
• EHRC087 - 52m of 1.78% Zn+Pb from 126m to EOH
o Incl. 8m @ 3.43% Zn+Pb, 5.1 g/t Ag from 129m
o with 5m @ 4.21% Zn+Pb, 3.7 g/t Ag from 131m
o
first RC drill-hole 500m northwest along strike from previous
drilling limit.
These results complement earlier results (ASX Release 2-Jun-21) including:
•
•
•
•
•
EHRC061 – 23m @ 4.1% Zn+Pb from 103m
o incl –17m @ 5.21% Zn+Pb, 6.2 g/t Ag from 103m
EHRC059 – 18m @ 3.06% Zn+Pb from 56m
o incl - 9m @ 5.3% Zn+Pb, 6.6 g/t Ag from 64m
EHRC055 – 11m @ 3.98% Zn+Pb from 68m
o incl - 6m @ 6.57% Zn+Pb, 16 g/t Ag from 69m
EHRC051 – 38m @ 1.12% Zn+Pb from 38m
o incl - 7m @ 4.05% Zn+Pb, 5.3 g/t Ag from 48m
EHRC060 – 52m @ 1.65% Zn+Pb from 50m to EOH
o incl - 16m @ 3.32% Zn+Pb, 2.7 g/t Ag from 75m
The Earaheedy zinc project is a Joint Venture between Zenith and Rumble
Resources Limited (ASX:RTR). Zenith holds a 25% free carried interest until
completion of a Bankable Feasibility Study. Both partners hold a pre-emptive right.
The exploration program is to be solely funded by project partner Rumble
Resources Limited (ASX:RTR) using funds from a $40m capital raising announced
by RTR on the 28-April-21.
10
ZNC has 25% interested
free carried to end BFS
and pre-emptive right
Discovery to be fast
tracked via an extensive
accelerated exploration
program, underpinned by
partners (RTR) $40M
capital raise
REVIEW OF OPERATIONS
Zenith Minerals Limited
Subsequent to the EJV discovery Zenith secured seven wholly owned exploration
licences totalling 100 lineal kilometres of what is interpreted to be the prospective
zinc host rock sequence within the Earaheedy Basin. The new exploration licence
applications were selected based on key geological and geochemical criteria
supported by previous exploration the Company has completed within the basin
for both zinc and manganese.
BACKGROUND ON CORE PROJECTS
is
The Company
focused on
exploration & evaluation of 4 gold
projects
copper-zinc
project, in Australia.
and
1
Project highlights and activities
for the quarter for these 5 projects
are included in the preceding
section of this report.
DEVELIN CREEK COPPER- ZINC PROJECT – Queensland (Zenith 100%)
Develin Creek Project Background
The Devein Creek project contains a VMS copper-zinc deposit with an Inferred Mineral Resource (JORC 2012) of:
2.57Mt @ 1.76% copper, 2.01% zinc, 0.24g/t gold and 9.6g/t silver (2.62% CuEq) released to ASX on 15- -Feb-
2015.
A program of 3 diamond drill holes at the Sulphide City resource area by the Company confirmed high-grade
copper and zinc zones (Figure 1) with associated gold and silver in massive sulphides (ASX Release 5-Jul-21).
Results include:
•
•
ZDCDD002 - 29m @ 2.3% Cu, 1.2% Zn, 0.3 g/t Au & 4.2 g/t Ag incl. 12.3m @ 4.2% Cu, 2.5% Zn, 0.6
g/t Au & 7.3 g/t Ag
ZDCDD003 - 34m @ 2.0% Cu, 1.5% Zn, 0.2 g/t Au & 4.9 g/t Ag incl. 10m @ 3.9% Cu, 0.4% Zn, 0.3 g/t
Au & 6.9 g/t Ag.
Results point towards a potential increase in copper grade within the higher-grade portions of the existing Inferred
Mineral Resource although additional drilling is required to see if this trend can be extrapolated throughout the
deposit. New diamond drill holes also define discrete zones of high-grade zinc within the copper rich intervals
noted above. These zones were not identified in the historic resource drilling, and include:
•
•
ZDCDD002 - 4m @ 4.7% Cu, 6.1% Zn, 1.2 g/t Au & 9.8 g/t Ag
ZDCDD003 - 10m @ 1.8% Cu, 4.2% Zn, 0.2 g/t Au & 5.4 g/t Ag
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REVIEW OF OPERATIONS
Zenith Minerals Limited
This drilling is part of a broader plan to build upon this JORC resource and add others to the Develin Creek copper-
zinc volcanogenic massive sulphide (VMS) inventory.
u
C
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8
.
4
u
C
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7
.
5
u
C
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9
.
3
u
C
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9
.
6
u
C
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.
3
u
C
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9
.
3
n
Z
%
1
.
3
1
,
u
C
%
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.
4
n
Z
%
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6
,
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C
%
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.
5
Figure 1: Develin Creek –New Zenith Diamond Drill Hole ZDCDD002 Example of Results Showing
Consistent High-grade Copper values (116m – 124.8m) – refer ASX Release 5-Jul-21 for further details).
12
REVIEW OF OPERATIONS
Zenith Minerals Limited
The Company holds exploration permits that cover the highly prospective host rocks over 50km north – south
(Figure 2). Zenith’s technical team outlined the Snook target located 30km south of the existing JORC resources.
An initial maiden drill test of 7 shallow RC holes has been a success, with hole ZSRC001 intersecting 3m of
massive and semi-massive sulphides close to surface, at a depth of only 20m downhole. This zone returned: 3m
@ 1.57% Cu, 1.07% Zn, 0.37% Pb, 43 g/t Ag and 0.2g/t Au, including 2m of massive sulphide grading: 1.95% Cu,
1.34% Zn, 0.48% Pb, 55 g/t Ag and 0.3g/t Au, within a broader interval of disseminated and stockwork sulphides
assaying 12m @ 0.81% Cu, 0.56% Zn. 0.19% Pb, 22g/t Ag & 0.1 g/t Au (see ASX Release 7-Dec-20).
An IP geophysical survey completed during the year shows a small coincident chargeability high associated with
the Snook massive sulphide zone with a deeper much stronger IP target lying beneath the current drilling and
another strong target to the east (refer to ASX Release 28-Jun-21). The latter, targets S1 & S2 are now ready for
drill testing as part of the planned expanded drill program.
Figure 2: Develin Creek Prospects and Geochemical Anomalies
RED MOUNTAIN GOLD-SILVER PROJECT – Queensland (Zenith 100%)
Background on Red Mountain Gold Project
A zone of surface gold and silver mineralisation was discovered by Zenith at Red Mountain in SE Queensland, in
a previously unrecognised felsic volcanic breccia complex comprising rhyolite radial dykes, rhyolite ring breccia
as well as granite and gabbro breccias, first identified by Zenith’s field team.
Highly encouraging gold and silver rock chip sample results up to 2.01 g/t gold and 52.5 g/t silver are supported
by systematic geochemical sampling that outlined a large 2km by 1.5km zoned soil anomaly with peak soil gold
result of 2.2 g/t Au, refer to ZNC ASX release 24-Sep-2019 (Figure 3).
Ongoing exploration activity at the 100% owned Red Mountain gold project located in Queensland (see ASX
release 19-May-21) continues to provide highly encouraging high-grade gold drill assay results. Drilling to date
has outlined a discrete sub-vertical high-grade gold zone (Western Zone) to a vertical depth of 200m, with the
zone remaining open at depth (Figures 4 -5).
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Results from the most recent hole (ASX Release 19-May-21) include: 21m @ 1.9 g/t Au incl. 2.0m @ 10.8 g/t Au
& 1.3m @ 5.0 g/t Au a zone of 9m @ 3.2 g/t Au (ZRMDD042).
This intersection is 80m below a previous result of 5m @ 10.4 g/t
Au, defining a NE plunging gold shoot some 250m long and open.
Gold mineralisation remains open down plunge and will be the
focus of further planned step-out drilling.
Red Mountain – Location Map
In addition, new very high-grade silver results were received for
hole ZRMDD041 with 0.3m @ 4.0 g/t Au and 270 g/t Ag. Gold
results were previously reported in ASX Release 13-May-21
including 7.7m @ 4.4 g/t Au with new silver results over that
interval returning 11.8 g/t Ag.
These results are in addition to previously announced near surface
high-grade drilling intersections (ASX Releases 3-Aug-20 & 13-
Oct-20, 9-Nov-20, 21-Jan-21), including:
•
•
•
•
•
•
13m @ 8.0 g/t Au from surface, incl. 6m @ 16.7 g/t Au
15m @ 3.5 g/t Au, incl. 2m @ 22.4 g/t Au
12m @ 4.9 g/t Au, incl. 6m @ 9.4 g/t Au
5m @ 10.4 g/t Au, incl 1m @ 49.9 g/t Au
5m @ 3.5 g/t Au & 54.3 g/t Ag
10m @ 2.7 g/t Au from surface, incl. 4m @ 4.9 g/t Au
Strong silver (Ag) grades associated with gold mineralisation,
include: 15m @ 0.4 g/t Au with 20.4 g/t Ag and 4m @ 0.5 g/t Au with 82.0 g/t Ag, 5m @ 3.5 g/t Au with 54.3 g/t
Ag and a new result of 5m @ 0.3 g/t Au with 30.6 g/t Ag.
High-grade gold mineralisation is associated with a stockwork of base metal (sphalerite-galena) stringer veins in
altered diorite, granodiorite and granite on the margin of a rhyolite breccia.
Figure 3: Red Mountain Breccia Pipe Target Showing Gold Soil Anomalies and Drill Collar
Locations with Planned DD Holes
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Figure 4: Cross Section - Red Mountain Western Zone High-Grade Gold Zone with Diamond Hole ZRMDD042
Geological Vectors
The Red Mountain project is located between two gold mines Cracow (Aeris Resources Limited (ASX:AUR) and
Mount Rawdon (ASX:EVN).
Cracow is a low-sulphidation epithermal gold deposit whilst Mount Rawdon is described in the literature as an
epizonal intrusion-related gold deposit.
Mineralisation at Red Mountain is considered by Zenith to be analogous to known gold deposits in Queensland.
Evidence includes a zoned system with geochemistry like that documented at third party owned Queensland gold
deposits such as Mt Wright which is located 65km east of Charters Towers and the nearby Mount Rawdon Gold
Mine.
The Mt Wright gold deposit was exploited by Resolute Mining Limited as an underground operation, with
mineralisation having a strike length of only 200m but vertical extent of over 1.2km (Figure 5).
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Figure 5: Comparative Cross Sections – Mt Wright Gold Mine (not an asset of the Company) and Red
Mountain Gold Project with Location of New Diamond Drill Results
SPLIT ROCKS GOLD PROJECT – Western Australia (Zenith 100%)
Background on Split Rocks Project - Gold
Zenith’s Split Rocks project is located within the Southern Cross region in the Forrestania greenstone belt,
approximately halfway between Perth and Kalgoorlie. Several very large current and formerly operated gold
mines located north and south along strike from Zenith’s project area attest to the regional gold endowment
of this area (Figure 6).
A major targeting exercise by the Company’s geological team identified 18 high-quality gold drill targets in
the north-eastern sector of the Company’s 100% owned Split Rocks project (Figures 7 & 8). First pass testing
of 11 of those 18 targets has been completed to date.
A total of 321 AC holes (15,857m) and 59 RC holes (5,819m) were completed across the Split Rocks target
areas to test for new zones of gold mineralisation and to extend other zones which had been poorly defined
by previous wide-spaced or ineffective historic drilling. Drilling has been highly successful in outlining high-
grade gold mineralisation at multiple target zones throughout the year. (Figures 7-8) refer to ASX Releases
5-Aug-20, 2-Sep-20, 19-Oct-20, 28-Oct-20, 15-Jan-21, 11-Mar-21, 21-Apr-21, 24-Jun-21).
Dulcie Laterite Pit
The large-scale gold bearing bedrock shear zone at the Dulcie Laterite Pit area has been confirmed to extend
over 2km in strike and remains open down dip (at 300) with a thickness ranging from 4 to 40m (refer to ASX
15-Jan-21 and 21-Apr-21). Drill results include: 3m @ 17.9 g/t Au, 19m @ 1.6 g/t Au, 14m @ 3.5 g/t Au
and 8m @ 4.8 g/t Au.
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Dulcie Far North - AC holes along with previous Zenith AC and historic drilling on lines 100m to 200m apart
outline a zone of gold mineralisation 1km long x 300m wide. Results include: 3m @ 70 g/t Au, 5m @ 5.6 g/t
Au incl. 4m @ 6.8 g/t Au (as previously reported 24-Jun-21).
Scott’s Grey - results from extensional drilling at Scott’s Grey provide very strong encouragement for further
work. Results announced during the year include 8m @ 4.1 g/t Au – an up-dip extension to gold zones
previously defined by Zenith surrounding the Scott’s Grey workings, 10m @ 0.9 g/t Au (eoh) incl. 4m @ 1.6
g/t Au – a potential new gold zone southwest of Scott’s Grey, and 4m @ 4.8 g/t Au a new zone of gold
mineralisation 100m northeast of the historic workings that remains open to the east, north and south.
Dulcie North - results from confirmatory and extensional drilling, in an area where there is some doubt as to
the location of historic drill holes, outlined strong near surface gold mineralisation that requires follow-up
aircore and RC testing, including: 16m @ 1.3 g/t Au incl 4m @ 2.9 g/t Au and 4m @ 1.7 g/t Au, and 4m @
1.6 g/t Au. These results are in addition to those intersected earlier in the year including 32m @ 9.4 g/t Au
(incl 9m @ 31.4 g/t Au).
Estrela Prospect: 2m @ 9.8 g/t Au (open to north & south) and Water Bore: 3m @ 6.6 g/t Au
Note Zenith retains gold rights at Dulcie Far North, Dulcie North, Dulcie Laterite Pit Zone and Scott’s Grey below
6m, subject to the Dulcie option agreement (ASX Release 21-Mar-19).
Figure 6: Split Rocks Project Location Map Showing Zenith tenements, DHLGO Prospect and
Regional Gold Endowment
*The Company has an exclusive right to explore the DHLGO project for bedrock gold mineralisation beneath the
large laterite rich gold cap currently being mined and treated on leases located contiguous with Zenith’s Split
Rocks project licences, located in the Forrestania greenstone belt, Western Australia.
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Figure 7: Split Rocks Project Gold Targets and Significant RC - Aircore Drill Results (yellow captions)
showing gold drill targets, and areas of Planned Drilling
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Figure 8: Split Rocks Gold Project Drill Results and Target Areas (Dulcie Laterite Pit Area shallow third
party <75m depth and ineffective drill holes are not shown)
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Background on Split Rocks Project - Lithium
In addition to the gold targeting exercise, Zenith has also been systematically exploring its 100% owned Split
Rocks project with landholdings of approximately 600 sqkm in the Forrestania greenstone belt for lithium. This
emerging lithium district is host to SQM-Kidman’s Mt Holland/Earl Grey lithium deposit containing 189Mt @ 1.5%
Li2O (KDR:ASX Release 19-Mar-2018).
Planned Programs
Drilling is set to continue in CY2021-22 with the view to defining a mineral resource.
JACKADGERY GOLD PROJECT – New South Wales (Zenith earning 90%)
Jackadgery Prospect Background
The privately owned Jackadgery gold project is located east of Glen Innes in northern New South Wales (Figure
9).
Historic workings at Jackadgery comprise several shallow shafts sunk in the 1870’s and two later, large areas of
surface gold sluicing. These historic gold workings occur in a sequence of Carboniferous-Permian greywacke
and siltstone intruded by small intermediate sub-volcanic trachyte to micro-monzonite of likely Permian or Triassic
age.
Quartz veining at surface is relatively widespread with veins dipping generally eastward at 400 to 600. Sulphides
comprise almost entirely pyrite-arsenopyrite +/- pyrrhotite.
The last significant exploration activity was carried out in 1983-85 by Kennecott and Southern Goldfields Ltd.
Activity included a 220m long backhoe trench into weathered quartz veined bedrock across the main (northern)
area of alluvial gold sluicing, which averaged 1.2 g/t Au across the interval 0-160m (with 5m composite assay
intervals ranging up to 18.0 g/t and 7.1 g/t Au) (Figure 10). Sample assay repeats of higher-grade zones indicate
some degree of variability in results which is commonly associated with the presence of coarse gold.
taken across
In addition, chip channel samples
individual quartz veins in an area (20m x 20m)
immediately northwest of the trench returned an
average of 5.6 g/t Au from 6 samples, whilst sampling
of veins in a second area (40m x 50m) southeast of the
trench averaged 0.8 g/t Au from 8 samples.
More recent exploration activity by the vendors included
an induced polarisation (IP) geophysical survey (3
lines) over the trench area that defined a sub-surface
chargeability high – resistivity high zone coincident with
the area of alluvial gold workings and gold rich quartz
stockwork veins identified in the trench.
From the available data the style of gold mineralisation
is consistent with intrusion related gold systems. An
existing drill permit will be revised to allow for an initial
fence of drill holes to effectively test beneath the wide
zone of near surface gold mineralisation outlined by the
historic backhoe trench and the surface rock chip
channel samples. This project is fully permitted for
drilling and will proceed once COVID border restrictions
are lifted.
Figure 9: Jackadgery Location Map,
Geology Base & Regional Gold Endowment
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Figure 10: Jackadgery Project – Target Summary
(Zenith planned drill hole locations are subject to final design, access & permitting)
PARTNERED PROJECTS
The Company has continued to implement its strategy of being an
exploration project generator. Projects are either advanced by the
Company’s experienced team applying innovative exploration
techniques or by partners which have the technical and financial
capability, depending on how the Board believes shareholders’ best
interests are served.
Current joint ventures where partners are funding exploration
include:
•
Earaheedy Zinc – Australia (Rumble ASX:RTR)
• Kavaklitepe Gold - Turkey (Teck affiliate)
21
Increased Spending
Increasing Chance of Success
Sharing Risk
REVIEW OF OPERATIONS
Zenith Minerals Limited
EARAHEEDY ZINC PROJECT – WA (Zenith 25% free carry to end BFS, ASX: RTR 75%)
Activities During the Year
Assay results from the remaining 24 drill holes from the initial Chinook drill program were announced early June
21 (ASX release 2-Jun-21) refer to highlights section of this report. This announcement was quickly followed by
assays from the first 2 holes accompanied by commentary on a further 9 holes that tested positive using pXRF
(ASX release 8-Jul-21).
The results reported in the early July release expanded the surface expression of the mineralised envelope at
Chinook to over 3km x 1.8km, to more than double what was previously known. The program is summarised as
follows:
•
The mineralisation envelope (based on laboratory assays and pXRF/visual) has been increased to 3km
by 1.8km a doubling in areal extent from what was previously known (previous dimensions 2km by 1.2km)
and remains unconstrained
• Very wide near surface up-dip oxide mineralisation highlights the potential for large scale oxide
resource(s).
•
The first RC drill hole 500m along strike to the northwest intersected a very thick vertical zone of
mineralisation with a higher-grade core.
• On the eastern drill limits of the Chinook prospect, normal faults have lifted the mineralisation on multiple
occasions to open pit-type depths and remains completely open.
•
The initial gravity survey has confirmed NW to NNW orientated gravity trends correlating with the
previously inferred feeder faults that underlie Chinook.
• Only approximately 8% of the planned drill program has been completed to date.
Planned Activities
• Ongoing RC and Diamond drilling scoping out the extent or limits of the Zn-Pb-Mn-Ag mineralisation along
strike and down dip at the Chinook prospect- part of a 40,000m drill campaign.
•
•
•
1 RC and diamond drill rig onsite at present, RC rig 2 and 3 are planned to arrive over the coming weeks
A trial sonic drilling program to focus on twinning drill-holes EHRC044, EHRC050 and EHRC061 to
improve recovery of cored material.
A gravity survey is planned along strike between Chinook and Magazine to aid in targeting the prospective
Zn-Pb-Mn-Ag mineralisation.
Earaheedy Project Background
The Earaheedy project is located approximately 110km north of Wiluna, Western Australia. The project area
covers the inferred unconformity contact between the overlying Frere Iron Formation and underlying Yelma
Formation of the Palaeoproterozoic Earaheedy Basin. Zn-Pb-Ag mineralisation occurs at two prospects located
approximately 10km apart, Chinook and Magazine. Mineralisation is hosted within near flat lying siltstone, shale,
marl and minor sandstone.
The new drilling results have allowed the RTR team to formulate an initial interpretation of a new sedimentary
exhalative (SEDEX) variant geological model for the Earaheedy project. SEDEX deposits are host to some of the
largest zinc accumulations worldwide. The revised model will greatly assist in the exploration and deposit
delineation process moving forward.
Earaheedy Joint Venture
Zenith Minerals Ltd (ASX: ZNC) owns a 25% free carried interest in the EJV whilst Rumble owns 75%. The project
area (E69/3464) covers the inferred unconformity contact between the overlying Frere Iron Formation and
underlying Yelma Formation of the Palaeoproterozoic Earaheedy Basin.
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REVIEW OF OPERATIONS
Zenith Minerals Limited
On April 2021 the EJV partners each announced a major Zinc-Lead Discovery with ‘Tier 1’ potential at the
Earaheedy Project (refer ASX release 19-Apr-21) and followed this up announcing a Large Sedex Style System
Emerging at the Earaheedy Project (ASX Release 25-May-21). There are 2 main prospects within the EJV,
Chinook and Magazine which lie 12km apart. Within the broader region, Zenith controls 100km of prospective
mineralised strike which also has the potential to contain multiple large tonnage Zn – Pb deposits (Figure 11).
Figure 11: Earaheedy Project Location (black - EJV, red – ZNC 100% granted, blue – ZNC100%
applications)
FLANAGANS GOLD PROJECT – Queensland (Zenith 100%)
During the year the Company announced that it has signed a binding heads of agreement with unrelated unlisted
public company Bindi Metals Limited (Bindi) for the sale of the non-core Flanagans copper-gold tenement in
Queensland for $450,000 (ASX Release 23-Jun-21).
The sale is conditional on the successful listing via an initial public offering (IPO) of Bindi on the Australian
Securities Exchange (ASX) before 31 December 2021, and other regulatory approvals. Upon completion Zenith
will receive $200,000 cash and IPO shares valued at $250,000. Shares to be issued to Zenith are likely to subject
to escrow.
LARAMIE RARE EARTH PROJECT – WYOMING USA
Activities During the Year
State mineral leases for rare earth minerals were transferred to dedicated American REE explorer American Rare
Earths Limited (ASX:ARR) during the year and the Company received final sale consideration, refer to ASX
Release 22-Dec-20 for details.
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REVIEW OF OPERATIONS
Zenith Minerals Limited
KAVAKLITEPE GOLD PROJECT – TURKEY (Zenith ~20%)
Activities During the Year
The Company is seeking to divest its share of the Kavaklitepe gold project.
Background on Kavaklitepe Gold Project
Exploration and evaluation of the Kavaklitepe gold project is managed by Teck Anadolu Madencilik Sanayi v.
Ticaret A.S. (“Teck”), a Turkish affiliate of Teck Resources Limited. Drilling to date on two prospect areas has
returned encouraging results. Kuzey Zone drill intersections include:
•
•
•
•
•
•
20m @ 15.6 g/t Au,
16m @ 4.7 g/t Au,
21m @ 3.29 g/t Au,
14m @ 6.09 g/t Au,
16m @ 4.7 g/t Au, and
7.8m @ 7.3g/t Au.
whilst continuous surface rock chip results include:
•
•
•
•
54.0m @ 3.33 g/t Au,
10m @ 12.2 g/t Au,
44m @ 3.37 g/t Au,
15m @ 10.10 g/t Au and 6.5m @ 5.18 g/t Au.
In addition, Discovery Zone drill results include: 8.0m @ 1.20 g/t Au and 8.0m @ 1.26 g/t Au.
AMERICAN LITHIUM JOINT VENTURE
Activities During the Year
During the year the Company advised that Bradda Head Lithium Ltd ("Bradda Head"), a North America-focused
lithium development group, had been admitted to trading on the AIM of the London Stock Exchange (ASX Release
20-Jul-21).
Zenith holds 15% of the issued capital of Bradda Head, which recently raised £6.2 million through the placement
of new ordinary shares at 5.5 pence to fund the phased exploration work programs across its lithium projects,
located in the USA.
Based on the closing price of 5.75 pence (A$0.107), at the close of the first day of trading on AIM (20-Jul-21), the
market capitalisation of Bradda Head was £16.9 million, valuing Zenith’s investment in Bradda Head (43,947,507
ordinary shares*) at $A4.7M.
VIVASH GORGE IRON PROJECT – WA (Zenith100%)
Activities During the Year
The Company is currently assessing options to divest the project to a dedicated iron ore explorer.
WARATAH WELL LITHIUM-TANTALUM PROJECT – WA (Zenith 100%)
Activities During the Year
The Company is currently assessing options for the project including drilling the Waratah Well lithium target and
assessing the platinum group elements (PGE) potential of the project.
24
REVIEW OF OPERATIONS
Zenith Minerals Limited
INVESTMENTS
The Company holds investments in various listed entities because of project-based transactions. These include:
•
Bradda Head Lithium Limited (LON:BHL) 43.9M shares – refer to ASX Release 20-Jul-21 for details.
• Rumble Resources Limited (ASX:RTR) 3.8M shares
•
American Rare Earths Limited (ASX:ARR) 2.5M shares
• NickelX Limited (ASX:NKL) 0.5M shares
NEW OPPORTUNITIES
The Company is currently in ongoing and incomplete negotiations in connection with several potential project
acquisitions and disposals. This remains an essential generative value process. Project generation is a core skill
of the Company. This work has included:
•
•
•
Assessment of various 3rd party gold properties in Australia.
Potential divestment of the Kavaklitepe gold project in Turkey.
Potential divestment of the Vivash Gorge iron ore project in Western Australia.
The Company will provide appropriate disclosure should negotiations and agreements be completed, and new
tenure granted.
MINERAL RESOURCE STATEMENT
Mineral Resource Statement
Develin Creek Copper-Zinc-Gold-Silver Project Mineral Resource
There was no change to the Inferred Mineral Resource for the Develin Creek Copper-Zinc-Gold-Silver Projects
previously released to the ASX on the 15-Feb-15. An initial program of 3 diamond drill holes at the Sulphide City
resource area were completed during the year by the Company confirming high-grade copper and zinc zones with
associated gold and silver in massive sulphides (ASX Release 5-Jul-21). Results include: ZDCDD002 - 29m @
2.3% Cu, 1.2% Zn, 0.3 g/t Au & 4.2 g/t Ag incl. 12.3m @ 4.2% Cu, 2.5% Zn, 0.6 g/t Au & 7.3 g/t Ag and ZDCDD003
- 34m @ 2.0% Cu, 1.5% Zn, 0.2 g/t Au & 4.9 g/t Ag incl. 10m @ 3.9% Cu, 0.4% Zn, 0.3 g/t Au & 6.9 g/t Au.
The new diamond hole results point towards a potential increase in copper grade within the higher-grade portions
of the existing Inferred Mineral Resource although additional drilling is required to see if this trend can be
extrapolated throughout the deposit.
Develin Creek Inferred Mineral Resource (JORC 2012) – February 2015
Deposit
Tonnes
Cu% Grade
Zn% Grade
Ag g/t Grade Au g/t Grade
SULPHIDE CITY
1,796,700
SCORPION
WINDOW
TOTAL
548,900
225,600
2,571,200
1.75
1.98
1.30
1.76
2.37
1.66
-
2.01
9.7
13.0
0.8
9.6
0.23
0.36
0.02
0.24
Red Lake Manganese Mineral Resource
There was no change to the Red Lake Inferred Mineral Resource for manganese previously released to the ASX
in August 2014.
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REVIEW OF OPERATIONS
Zenith Minerals Limited
Red Lake Manganese Mineral Resource Estimate as at August 2014
Classification
Reporting Cut-off
Grade
Tonnes
(Mt)
Mn % Fe % SiO2 % Al2O3 % P % S % LOI %
Inferred
25% Mn
20% Mn
15% Mn
10% Mn
0.2
0.5
1.1
1.4
30.0
14.1
13.8
25.1
16.1
17.0
20.8
19.0
17.7
20.5
19.1
20.8
7.9
8.9
9.3
9.6
0.24 0.03 12.1
0.25 0.06 11.9
0.24 0.17 11.5
0.26 0.19 11.4
Note: The CSA Mineral Resource was estimated within constraining wireframe solids based on the specified
nominal lower cut-off grade for Mn. The Mineral Resource is quoted from all blocks above the specified Mn cut-
off grade %. Differences may occur due to rounding.
Lockeridge Manganese Mineral Resource
There was no change to the Lockeridge Inferred Mineral Resource for manganese previously released to the ASX
on 15-Apr15.
Lockeridge Manganese Mineral Resource Estimate as at April 2015
Classification
Reporting Cut-off
Grade
20% Mn
Inferred
15% Mn
10% Mn
Tonnes (Mt) Mn % Fe % Si02% Al2O3 % P % S % LOI %
1.0
1.9
2.6
30.2
23.4
20.6
7.0
6.7
6.9
18.9
25.4
27.6
4.1
4.7
5.1
0.12 0.01 5.7
0.15 0.01 10.4
0.16 0.01 12.0
Note: The Mineral Resource was estimated within constraining wireframe solids based on the specified nominal
lower cut-off grade for Mn. The Mineral Resource is quoted from all blocks above the specified Mn cut-off
grade %. Differences may occur due to rounding.
Burro Creek East Mineral Resource
The Burro Creek Project was sold during the year, refer to ASX Release dated 20-Jul-21 for details.
Mineral Resource Governance and Internal Controls
Zenith Minerals Limited ensures that the Mineral Resource estimates quoted are subject to governance
arrangements and internal controls. All the Company’s Mineral Resources have been estimated by independent
third-party competent persons or for selected inferred resources by suitably qualified and experienced Company
personnel. All resources have been subject to review by Zenith Minerals Limited technical staff and by a sub-
committee appointed by the Board of Directors.
The Company re-affirms that its Mineral Resources are reported in accordance with the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code) 2012 Edition.
COMPETENT PERSONS STATEMENTS
The information in this report that relates to Zenith Exploration Results and Exploration Targets and the Lockeridge and Red
Lake Mineral Resources is based on information compiled by Mr Michael Clifford, who is a Member of the Australian Institute
of Geoscientists and an employee of Zenith. Mr Clifford 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
Clifford consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.
The information in this Report that relates to in-situ Mineral Resources at the Develin Creek project is based on information
compiled by Ms Fleur Muller an employee of Geostat Services Pty Ltd. Ms Muller takes overall responsibility for the Report.
She is a Member of the AusIMM and has sufficient experience, which is relevant to the style of mineralisation and type of
deposit under consideration, and to the activity she is undertaking, to qualify as a Competent Person in terms of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012 Edition).
Ms Muller consents to the inclusion in the report of the matters based on her information in the form and context in which it
appears.
26
DIRECTOR’S REPORT
Zenith Minerals Limited
The Directors present their report, together with the financial statements of the consolidated entity, being Zenith
Minerals Limited and subsidiaries ("the Consolidated Entity") it controlled at the end of, or during, the year ended
30 June 2021, and the auditors' report thereon.
1 . DIRECT ORS
The Directors of the Consolidated Entity at any time during or since the end of the financial year and up to the date
of this report, unless otherwise stated are:
Peter J Bird
Qualifications:
Experience:
Non-Executive Director, appointed 30 March 2020
Non-Executive Chairman, appointed 30 September 2020
Executive Chairman, appointed 16 October 2020
BSc (Hons) (Geology)
Peter Bird has a wide experience in operational mining geology and
exploration in large multinational corporations. He has worked in business
development and treasury, with extensive experience as a mining analyst and
in investor relations and human resources before becoming a company
director. Peter was Deputy Chairman and CEO of Asiamet Resources Limited,
Australia, from 2017 (listed on the AIM market of the London Stock Exchange),
prior to joining Zenith. He has previously served as Managing Director of
Heemskirk Consolidated Ltd, of which he was a joint founder, and was Non-
Executive Chairman of Excelsior Gold Ltd.
Other Current Directorships:
None
Former Directorships (last 3
years):
Asiamet Resources Limited, Australia, listed on the AIM market of the London
Stock Exchange (Deputy Chairman and CEO, appointed 20 February 2017,
resigned 31 January 2020)
Special Responsibilities:
Technical and Corporate
Interest in Shares:
Interest in Options
None
1,250,000 Unlisted Options
Contractual Right to Shares:
None
Michael J Clifford
Chief Executive Officer, appointed 18 March 2014
Qualifications:
Experience:
BSc. (Hons), 1987, MSc
Mick Clifford is a geologist with over 30 years’ experience in the exploration
industry. Mick held senior technical and business development roles and
explored for most major metal commodities during a successful career with
Billiton Australia, Acacia Resources and AngloGold Ashanti, rising to the
position of Regional Exploration Manager Australia. Mick was Managing
Director of ASX listed PacMag Metals Ltd from 2005 until its takeover in 2010,
when he co-founded private explorer S2M2 Coal Pty Ltd. He is experienced
in international exploration, exploring for gold, copper and coal and has had
exposure to mining and exploration in Australia, USA, Brazil, Indonesia, PNG,
Angola, Democratic Republic of Congo, Mexico, Mongolia and Turkey.
Other Current Directorships:
Former Directorships (last 3
years):
None
None
Special Responsibilities:
Technical
Interest in Shares:
Interest in Options
2,867,524 Ordinary Shares
5,500,000 Unlisted Options
Contractual Right to Shares:
None
27
DIRECTOR’S REPORT
Zenith Minerals Limited
Stanley A Macdonald
Non-Executive Director, appointed 24 April 2006
Experience:
Stan Macdonald has been associated with the mining and exploration
industry for over 25 years.
Other Current Directorships:
None
Former Directorships (last 3
years):
Gascoyne Resources Limited (Non-Executive Director from 20 April 2011,
resigned 8 October 2018)
Special Responsibilities:
Company promotion and project acquisition
Interest in Shares:
Interest in Options
5,570,072 Ordinary Shares
1,250,000 Unlisted Options
Contractual Right to Shares:
None
Julian D Goldsworthy
Non-Executive Director, appointed 29 August 2013
Qualifications:
Experience:
B. App. Sc. (Geology)
Julian was formerly Exploration Manager at Giralia Resources NL prior
to its takeover by Atlas Iron Ltd, and is currently Chief Geologist at
Gascoyne Resources Limited. He has substantial prior experience in
the minerals industry with Newcrest Mining (and its predecessor
Newmont Australia) where he led and conducted successful exploration
programs for gold in Australia and South America.
Other Current Directorships:
None
Former Directorships (last 3
years):
Gascoyne Resources Limited (Executive Director appointed 2 June
2019, resigned on 2 June 2019)
Special Responsibilities:
Technical and Corporate
Interest in Shares:
Interest in Options
2,726,180 Ordinary Shares
1,250,000 Unlisted Options
Contractual Right to Shares:
None
Graham D Riley
Qualifications:
Experience:
Non-Executive Director, appointed 2 May 2018
B. Juris LLB
Graham is a qualified legal practitioner, having gained his Bachelor of
Law and Bachelor of Jurisprudence Degrees. After 10 years legal
practice as a partner of a commercial firm in Perth, he resigned to pursue
private interests in the resources and exploration sector, where he
continues to act in a non-executive capacity. Graham previously served
as Non-Executive Chairman of Giralia Resources NL, Buru Energy NL,
Entek Energy Limited, Red Hill Iron Limited and a Director of Adelphi
Energy NL. He was also a Non-Executive Director of Arc Energy
Limited.
Other Current Directorships:
None
Former Directorships (last 3
years):
Gascoyne Resources Limited (Non-Executive Director from 19
October 2009, resigned 8 October 2018).
Special Responsibilities:
Legal, Technical and Corporate
Interest in Shares:
Interest in Options
Contractual Right to Shares:
9,000,000 Ordinary Shares
None
None
28
DIRECTOR’S REPORT
Zenith Minerals Limited
Rodney M Joyce
Qualifications:
Experience:
Non-Executive Director, appointed 6 December 2006
Non-Executive Chairman, appointed 9 October 2013
Retired on 25 November 2020
BSc (Hons), MSc, DIC
Mike Joyce is a geologist with over 40 years’ experience in mineral
exploration, following graduation in 1979 with a BSc (Hons) degree in
Geology from Monash University. He also holds a MSc in Mineral Exploration
from the Royal School of Mines, University of London, UK. He was the leader
of a successful gold exploration team at Aberfoyle Resources Ltd,
responsible for significant gold discoveries at Carosue Dam and Davyhurst
in Western Australia prior to joining Giralia Resources NL, initially as
exploration manager. He later became Managing Director of Giralia
Resources NL, prior to its takeover by Atlas Iron Limited.
Other Current Directorships:
None
Former Directorships
years):
(last 3
Gascoyne Resources Limited - (Non-Executive Director appointed 20 April
2011 and Non-Executive Chairman from 5 October 2012 to 8 October 2018,
retired 30 April 2020).
Special Responsibilities:
Technical and Corporate
Interest in Shares:
Interest in Options:
Contractual Right to Shares:
13,383,404 ordinary shares
None
None
‘Other current directorships’ mentioned above are current directorships for listed entities only,
excluding directorships of all other types of entities, unless otherwise stated.
‘Former directorships (last 3 years)’ mentioned above are directorships held in the last 3 years for
listed entities only, excluding directorships of all other types of entities, unless otherwise stated.
2. COMPANY SECRETARY
Nicholas Ong
Nicholas Ong was appointed Company Secretary on 16 November 2020.
He is experienced in mining project finance, mining and milling contract
negotiations, mine CAPEX & OPEX management, and toll treatment gold
reconciliation. Nicholas is a Fellow of the Governance Institute of Australia
and holds a Bachelor of Commerce and a Master of Business Administration
from the University of Western Australia. Nicholas is currently a Company
Secretary of several ASX listed companies.
3. DIRECTORS' MEETINGS
The number of Directors' meetings (including meeting of committees of directors) and number of meetings
attended by each of the directors of the Group during the financial year are:
Mr P J Bird
Mr M J Clifford
Mr S A Macdonald
Mr J D Goldsworthy
Mr G D Riley
Mr R M Joyce
MEETINGS
B
7
7
7
7
7
3
A
7
7
7
7
7
3
A = Number of meetings attended
B = Number of meetings held during the time the Directors held office during the year.
29
DIRECTOR’S REPORT
Zenith Minerals Limited
4. REMUNERATION REPORT – AUDITED
The remuneration report is set out under the following main headings:
A. Principles of Compensation
B. Key Management Personnel Remuneration
C. Equity Instruments
The information provided under headings A-C includes remuneration disclosures that are required under the
Corporations Act 2001 and the Corporations Regulations 2001. These disclosures have been transferred from
the financial report and have been audited.
Details of the remuneration of the key management personnel of the Consolidated Entity are set out in
tables provided under heading ‘B. Key Management Personnel Remuneration’. Key management
personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
A. Principles of Compensation - Audited
Compensation levels for key management personnel of the entity are competitively set to attract and retain
appropriately qualified and experienced Directors and Executives.
The objective of the Consolidated Entity’s reward framework is to ensure reward for performance is
competitive and appropriate. The framework aligns executive reward with achievement of strategic
objectives and creation of long-term growth and success for shareholders.
The Board ensures that remuneration satisfies the following criteria:
•
•
•
•
•
•
competitiveness and reasonableness
transparency
acceptability to shareholders
attracts and retains high caliber executives
rewards capability, experience and performance
performance alignment of executive compensation.
The full Board acts on behalf of Nomination and Remuneration Committee matters and is responsible for
determining and reviewing the remuneration packages for its directors and executives. Remuneration of key
management personnel for the year ended 30 June 2020 has been determined by the Board. In this respect
consideration is given to normal commercial rates of remuneration for similar levels of responsibility that is
market competitive and complementary to the reward strategy of the consolidated entity. Alignment to
shareholders interests focuses on pursuing long term growth in shareholder wealth, consisting of growth in
share price and success of the Company within an appropriate control framework. The structure of non-
executive directors’ remuneration and executive remuneration are separate as recommended by Corporate
Governance Council best practice.
Executive Remuneration
The consolidated entity aims to reward executives with a level of remuneration based on their position and
responsibility, which has a mix of both fixed and variable components. The remuneration of executives and
reward framework comprises a combination of:
•
•
•
•
base pay and non-monetary benefits
performance linked incentives
share based payments
other remuneration such as superannuation and long service leave.
Fixed Compensation
Fixed compensation consists of base compensation (which is calculated on a total basis and includes any FBT
charges related to employee benefits including motor vehicles), as well as employer contributions to
superannuation funds. Compensation levels are reviewed annually by the Board of Directors acting in their
capacity as the Nomination and Remuneration Committee through a process that considers individual and
overall performance of the Consolidated Entity and comparable market remunerations.
30
DIRECTOR’S REPORT
Zenith Minerals Limited
A. Principles of Compensation – Audited (cont.)
Performance Linked Compensation
Performance-linked remuneration consists of long-term incentives in the form of options over ordinary shares
of the Consolidated Entity. Performance-linked remuneration is not based on specific financial indicators such
as earnings or dividends as the Consolidated Entity is at the exploration stage and during this period is expected
to incur operating losses. There is no separate profit-share plan or short-term incentive components.
Long-Term Incentive
Long-term incentives comprise of long service leave and share based payments in the form of share options,
which are granted from time to time to encourage sustained performance in the realisation of strategic
outcomes and growth in shareholder wealth. Options are granted for no consideration and do not carry voting
or dividend entitlements. The exercise price of the options is determined after taking into account the underlying
share price performance during the period leading up to the date of the grant. Subject to specific vesting
conditions, each option is convertible into one ordinary share. There is presently no stated policy restricting
key management personnel from limiting their exposure to risk in relation to options granted. The Board of
Directors acting in their capacity as the Nomination and Remuneration Committee, review the long-term
incentives for executives on an annual basis during its review process of the executive’s performance.
Consequences of Performance on Shareholder Wealth
The overall level of key management personnel compensation takes into account the performance of the
Consolidated Entity over a number of years.
Performance in respect of the current financial year and the previous four financial years is detailed in the table
below:
Profit/(Loss) attributable to owners of the
Group
Basic Profit/(Loss) per Share
Share Price at financial year end ($)
Changes in share price (from initial listing of 25
cents)
2021
$
2020
$
2019
$
2018
$
2017
$
2,010,141
(383,397)
(695,492)
(682,929)
(952,932)
0.0027
(0.002)
(0.003)
(0.003)
(0.005)
0.25
0.12
0.08
0.18
0.10
-
-0.13
-0.17
-0.07
-0.15
During the financial years noted above, there were no dividends paid or other returns of capital made by the
Consolidated Entity to shareholders. The Consolidated Entity’s performance is impacted by a number of factors
including employee performance. The measures of performance of the Consolidated Entity set out in the table
above have been taken into consideration in the determination of appropriate levels of remuneration by the
Board acting in its capacity as the Nomination and Remuneration Committee.
Non-Executive Compensation
Remuneration of Non-executives comprise fees in the form or cash and statutory superannuation entitlements,
quantified by having regard to industry practice and the need to obtain appropriately qualified, independent
persons. Fees may contain non-monetary elements. Fees and payments to non-executive directors have
regard to the demands and responsibilities of their role which covers all main board activities and membership
of applicable sub-committees.
The Board, acting as the Nomination and Remuneration Committee, reviews non-executive director fees and
payments annually. The Board may receive advice from independent remuneration consultants to ensure non-
executive directors’ fees and payments are appropriate and in line with the market. The Chairman’s fees are
determined independently to other non-executive director fees, based on similar comparative roles in the
market place. The Chairman is not present at discussions regarding the determination of his own remuneration.
Non-executives do not receive share options or other incentives.
Total compensation for all non-executive directors, agreed at a general meeting on 14 March 2006 is that the
maximum non-executive director remuneration be $200,000 per annum.
31
DIRECTOR’S REPORT
Zenith Minerals Limited
A. Principles of Compensation – Audited (cont.)
Voting and comments made at The Consolidated Entity’s 2020 Annual General Meeting (‘AGM’)
At the 2020 AGM, 99.29% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2020. There was no specific feedback received at the AGM, regarding its remuneration
practices.
B. Key Management Personnel Remuneration - Audited
The following table discloses the remuneration of the key management personnel of the Consolidated
Entity.
The key management personnel of the Consolidated Entity consisted of the following directors:
•
•
•
•
•
•
Mr P J Bird – Executive Chairman
Mr M J Clifford – Chief Executive Officer
Mr S A Macdonald – Non-Executive Director
Mr J D Goldsworthy – Non-Executive Director
Mr G D Riley - Non-Executive Director
Mr R M Joyce – Non-Executive Director
32
DIRECTOR’S REPORT
Zenith Minerals Limited
The key management personnel of Zenith Minerals Limited and subsidiaries include the directors and the following executive officers:-
Short-Term Benefits
Post-
Employment
Benefits
Cash
Salary
& Fees
Cash
Bonus
Non-
Monetary
Benefits
Super-
annuation
Share-
Based
Payments
Options
TOTAL
Other
Long
Term
Benefits
Long
Service
Leave
$
$
$
$
$
Non- Executive
Directors:
R M Joyce
S A Macdonald
J D Goldsworthy
G D Riley
Executive
Director:
PJ Bird
M J Clifford
Other Key
Management
Personnel:
M J Nelmes
TOTAL
TOTAL
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
18,315
36,250
32,500
27,500
32,500
27,500
32,500
27,500
183,090
5,000
254,075
211,678
66,960
109,660
619,940
445,088
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,065
4,762
-
-
2,065
4,762
1,740
3,444
3,088
2,612
3,088
2,612
3,088
2,612
17,394
475
24,137
20,109
5,531
10,418
58,066
42,282
33
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
98,103
-
98,103
-
-
-
98,103
-
156,965
28,395
$
20,055
39,694
133,691
30,112
133,691
30,112
35,588
30,112
298,587
5,475
437,242
264,944
-
47,455
72,491
167,533
451,274
1,131,345
75,850
567,982
S300A(1)(e)(i) S300A(1)(e)(vi)
Proportion of
Remuneration
Performance
Related
%
Value of
Options as
Proportion of
Remuneration
%
-
-
73.38%
-
73.38%
-
-
-
32.86%
-
35.90%
10.72%
-
28.33%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DIRECTOR’S REPORT
Zenith Minerals Limited
Analysis of Bonuses Included in Remuneration – Audited
No short-term incentive cash bonuses have been awarded as remuneration to directors of the Consolidated Entity
or to Consolidated Entity executives.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed Remuneration
Remuneration linked to
performance
2021
2020
2021
2020
Non-Executive Directors:
R M Joyce
S A Macdonald
J D Goldsworthy
G D Riley
Executive Director:
P J Bird
M J Clifford
Other Key Management Personnel:
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
M J Nelmes
100%
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
No key management personnel appointed during the period received a payment as part of his or her
consideration for agreeing to hold the position.
Service Contracts
Remuneration and other terms of employment for the other key management personnel are formalised in service
agreements. The major provisions of the agreement relating to remuneration are set out below.
Peter J Bird
- Executive Chairman, appointed 16 October 2020
- Annually renewable contract
- Base salary of $40,000 per annum plus superannuation of 9.50% to 15 October
2020
- Base salary of $242,009 per annum plus superannuation of 9.50% from 15
October 2020
- Six month notice period is prescribed on termination.
Rodney Michael Joyce
- Non-Executive Director, appointed 6 December 2006, resigned 25 November 2020
- Annually renewable contract
- Base salary of $40,000 per annum plus superannuation of 9.50%
- No notice period is prescribed on termination.
Stanley A Macdonald
- Non-Executive Director, appointed 24 April 2006
- Annually renewable contract
- Base salary of $30,000 per annum plus superannuation of 9.50%
- No notice period is prescribed on termination.
Julian D Goldsworthy
- Non-Executive Director, appointed 29 August 2013
- Annually renewable contract
- Base salary of $30,000 per annum plus superannuation of 9.50%
- No notice period is prescribed on termination.
Graham D Riley
- Non-Executive Director, appointed 2 May 2018
- Annually renewable contract
- Base salary of $30,000 per annum plus superannuation of 9.50%
- No notice period is prescribed on termination.
34
DIRECTOR’S REPORT
Zenith Minerals Limited
Service Contracts (cont.)
Michael J Clifford
- Managing Director appointed 18 March 2014
Terms of Agreement
Remuneration and
Benefits
- The agreement is annually renewable. To terminate the agreement, the
Consolidated Entity must provide three months’ notice, or the Managing Director
must provide three months’ notice. If serious misconduct is committed by the
executive, the agreement may be immediately terminated by the Consolidated
Entity. On termination, the Consolidated Entity may provide the executive with a
payment in lieu of notice of termination for all or part of the notice period.
- Annual base salary of $255,000 inclusive of 9.50% superannuation for the
financial year ended 30 June 2021. Salary is reviewed annually by the Board
acting as the Nomination and Remuneration Committee.
Melinda J Nelmes
- Company Secretary and Chief Financial Officer, appointed 20 March 2014,
resigned 16 November 2020.
Terms of Agreement
Remuneration and
Benefits
- The agreement is reviewed annually. To terminate the agreement, either party
must provide one months’ notice. If serious misconduct is committed by the
executive, the agreement may be immediately terminated by the Consolidated
Entity. On termination, the Consolidated Entity may provide the executive with a
payment in lieu of notice of termination for all or part of the notice period.
- Permanent part-time agreement of base of 0.4 of a full time equivalent employee
with annual base salary of $200,000 (0.4 of a full time equivalent: $80,000)
inclusive of 9.50% superannuation for the year ending 30 June 2020. Salary is
reviewed annually by the Board acting as the Nomination and Remuneration
Committee.
C. Equity Instruments – Audited
Share-Based Compensation
i) Issue of shares
There were no shares issued to the directors and other key management personnel as part of
compensation during the year ended 30 June 2021 (2020: Nil)
ii) Options
For Zenith Minerals Limited options granted over ordinary shares during the current financial year or
future reporting years affecting remuneration of directors and other key management personnel, the
terms and conditions are as follows:
Name
Number
Options
Granted
Grant date
Expiry date
Exercise
price
Fair value at
grant date
Vesting
Date
M Clifford
2,000,000 25 Nov 2020
14 May 2023 $0.1097
$0.078483 Vests at date of
grant
S A
Macdonald
J D
Goldsworthy
1,250,000 25 Nov 2020
14 May 2023 $0.1097
$0.078483 Vests at date of
grant
1,250,000 25 Nov 2020
14 May 2023 $0.1097
$0.078483 Vests at date of
grant
P J Bird
1,250,000 25 Nov 2020
14 May 2023 $0.1097
$0.078483 Vests at date of
grant
35
DIRECTOR’S REPORT
Zenith Minerals Limited
C. Equity Instruments – Audited (cont.)
2020:
Name
Number
Options
Granted
Grant date Expiry date
Exercise
price
Fair value at
grant date
Vesting
Date
M Clifford
2,500,000 25 Nov 2019 25 Nov 2022
$0.087
$0.011358
M Nelmes
750,000 25 Nov 2019 25 Nov 2022
$0.087
$0.011358
M Nelmes
500,000 14 May 2020 14 May 2023 $0.1097
$0.077874
Vests at date of
grant
Vests at date of
grant
Vests at date of
grant
Options granted carry no dividend or voting rights.
Values of options over ordinary shares granted, exercised, lapsed for directors and other key management
personnel as part of compensation during the year are set out below:
2021:
Name
Director:
M J Clifford
S A Macdonald
J D Goldsworthy
P J Bird
2020:
Name
Director:
M J Clifford
Other Key
Management
Personnel:
M J Nelmes
Value of
options granted
during the
year
$
Value of options
exercised
during the
year
$
Value of
options lapsed
during the
year
$
Remuneration
consisting of
options for the
year
%
156,965
98,103
98,103
98,103
-
-
-
-
-
-
-
-
35.90%
73.38%
73.38%
32.86%
Value of
options granted
during the
year
$
Value of options
exercised
during the
year
$
Value of
options lapsed
during the
year
$
Remuneration
consisting of
options for the
year
%
28,395
47,455
-
-
(69,924)
10.72%
(33,667)
28.33%
Shares issued on exercise of options
No options granted under Zenith Minerals Limited’s Employee Option Plan were exercised into ordinary
shares during the year ended 30 June 2021 (2020: Nil).
iii) Ad ditio nal disclosur es relating to ke y m ana g eme nt personn el
Share Holding
The number of shares in Zenith Minerals Limited held during the financial year by each director and other key
management personnel of the Consolidated Entity, including their personally related parties, are set out
below. There were no shares granted during the reporting period as compensation.
36
DIRECTOR’S REPORT
Zenith Minerals Limited
C.
Equity Instruments – Audited (cont.)
Balance at
the start of
the year
Received
as part of
remuneration
Ordinary Shares
Additions
Other changes
Balance at
the end of
the year
2021
Name
Directors:
Rodney M Joyce
Stanley A Macdonald
Julian D Goldsworthy
Graham D Riley
Michael J Clifford
Peter J Bird
Other Key
Management
Personnel:
13,383,404
5,570,072
2,726,180
9,000,000
2,867,524
-
Melinda J Nelmes
240,126
Total
33,787,306
Option Holding
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(13,383,404)
-
-
-
-
-
-
5,570,072
2,726,180
9,000,000
2,867,524
-
(240,126)
-
(13,623,530)
20,163,776
The number of options over ordinary shares in Zenith Minerals Limited held during the financial year by directors
and other key management personnel of the Consolidated Entity, including their personally related parties,
are set out below:
Balance at
the start of
the year
Granted as
Remuneration
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year**
2021
Name
Directors:
Rodney M Joyce
Stanley A Macdonald
Julian D Goldsworthy
Michael J Clifford
Graham D Riley
Peter J Bird
Other Key
Management
Personnel:
-
-
-
3,500,000
-
-
-
1,250,000
1,250,000
2,000,000
-
1,250,000
Melinda J Nelmes
1,600,000
-
Total
5,100,000
5,750,000
** All options are vested and exercisable at 30 June 2021.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,250,000
1,250,000
5,500,000
-
1,250,000
(1,600,000)
-
(1,600,000)
9,250,000
Other Transactions With Key Management Personnel And Their Related Parties
During the financial year ended 30 June 2021, other transactions with key management personnel and
their related parties were as follows:
i)
Provision of Serviced Office – During the financial year ended 30 June 2021, fees of $7,745
(2020: $7,164) were received from Minasola Pty Ltd, a director related entity of Mr R M Joyce;
fees of $7,745 (2020: $7,164) were received from Creekwood Nominees Pty Ltd, a director
related entity of Mr S A Macdonald and fees of $7,025 from Satinbrook Pty Ltd, a director
related entity of Mr G D Riley (2020: $7,164).
All transactions were made on normal commercial terms and conditions and at market rate.
There are no loans to directors and executives
This concludes the remuneration report, which is audited.
37
DIRECTOR’S REPORT
Zenith Minerals Limited
5 . ACT IV IT IE S
The principal activity of the Consolidated Entity during the course of the financial year was mineral
exploration predominantly in Australia and also including Turkey (Europe) and United States of America.
Following listing on ASX on 29 May 2007, the Consolidated Entity commenced exploration activity
wherever it assessed there was an opportunity of success.
There was no significant change in the nature of the activity of the Consolidated Entity during the year.
6 . OPERATING & FINANCIAL REVIEW
Overview
During the year, the Consolidated Entity undertook mineral exploration activities predominantly in Australia.
Objectives
The Group's objectives are to pursue opportunities in exploration and mining for precious and other minerals in
areas which are highly prospective for mineralisation.
Financial Results
The profit for the financial year ended 30 June 2021, attributable to members of the Consolidated Entity,
after income tax is $2,010,141 (2020: loss of $383,397).
No dividends were paid or recommended for payment during the financial year ended 30 June 2021
(2020: Nil).
Review of Financial Condition
During the year, the net assets of the Consolidated Entity increased by $7,188,133 from $5,792,777 at 30
June 2020 to $12,980,910 at 30 June 2021.
The directors consider that the Consolidated Entity holds a valuable portfolio of mineral tenements with a
carrying value at 30 June 2021 of $6,714,651 (2020: $3,993,265). During the financial year, the consolidated
entity booked an impairment loss on capitalised exploration and evaluation expenditure of $443,758 (2020:
$21,027) following its review of its portfolio of mineral tenements.
In relation to COVID-19, Zenith’s Board is mindful of the significant impact the virus is having on the
community and is continuing to assess the potential risks associated with its activities. Zenith’s projects are
in remote country areas or on grazing properties where Zenith’s crew are geographically isolated. The
Company will continue to act on advice provided by Federal and State Governments with the health and
safety of Zenith’s crew, contractors and local stakeholders a priority.
7 . SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no other significant changes in the state of affairs of the Consolidated Entity during the financial
year ended 30 June 2021.
8 . EVENTS SUBSEQUENT TO REPORTING DATE
Completion of a capital raising announced to the Australian Securities Exchange (‘ASX’) on 7th July 2021,
resulted in the issue of 27,906,977 ordinary shares at $0.215 per share for $6 million before cost. Funds
raised will be used to accelerate an active exploration program at Zenith’s core projects, being the Develin
Creek VMS Copper Project, Red Mountain Gold Project and the Split Rocks Gold Project.
On 16 July 2021, the Company announced the issue of 750,000 options exercisable at $0.379 expiring 14
July 2024, as incentive options to various employees.
38
DIRECTOR’S REPORT
Zenith Minerals Limited
8 . EVENTS SUBSEQUENT TO REPORTING DATE (cont.)
On 20 July 2021, the Company announced the admission of trading of Bradda Head Lithium Ltd on the AIM
of the London Stock Exchange. Zenith owns 43,947,507 shares in Bradda Head, valued at $6.4M as at the
date of this report.
On 24 September 2021, the Company has completed Stage 1 investment of $140k into Oxley Resources
Limited (refer ASX announcement dated 13 May 2021).
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted
the Consolidated Entity up to date, it is not practicable to estimate the potential impact, positive or negative,
after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the
Australian Government and other countries, such as maintaining social distancing requirements, quarantine,
travel restrictions and any economic stimulus that may be provided.
No other matter or material event has arisen since 30 June 2021, which has significantly affected or may
significantly affect the Consolidated Entity’s operations, the results of those operations, or the Consolidated
Entity’s future state of affairs.
9 . L IKE L Y DE V E L OP ME NT S
The Consolidated Entity will continue to pursue its policy of acquiring and testing attractive mineral
properties with a view to developing properties capable of economic mineral production.
Further information about likely developments in the operations of the Consolidated Entity and the
expected results of those operations in future financial years has not been included in this report because
disclosure of the information would be likely to result in unreasonable prejudice to the Consolidated Entity.
1 0 . E NV IRO NME NT AL R E GUL AT I ON
The Consolidated Entity is subject to significant environmental regulation in relation to its exploration
activities from the Department of Minerals and Petroleum (West Australian operations), Code of Environmental
Compliance for exploration and mineral development projects, Version 1.1 and provision of the Environmental
Heritage Protection Act 1994 (Queensland operations), State Lands Department of Arizona laws and
regulations (Arizona state lease), The General Mining Act of 1872 United States (Federal Lode mining claims
Arizona), Turkish Mining Law as administered by the Mining Affairs General Directorate of the Ministry of
Energy and Natural Resources (Turkish operations) and aims to ensure that it complies with all relevant
environmental legislation. The directors are not aware of any significant breaches during the period covered by
this report.
1 1 . INDEMNITY AND INSURANCE OF OFF ICERS
The Consolidated Entity has indemnified the Directors and Officers for costs incurred by them in defending
civil or criminal proceedings that may be brought against the Directors and Officers in their capacity, of
the Consolidated Entity, and any other payments arising from liabilities incurred by the Directors and
Officers in connection with such proceedings.
This does not include such liabilities that arise from conduct involving a willful breach of duty by the Directors
or Officers of the improper use of their position or of information to gain advantage for themselves or someone
else or to cause detriment to the Consolidated Entity.
During the financial year, the company paid a premium in relation to a contract to insure the Directors and
Officers of the Consolidated Entity against a liability to the extent permitted by the Corporations Act 2001. The
contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
1 2 . INDEMNITY AND INSURANCE OF AUDIT ORS
The Consolidated Entity has not, during or since the end of the financial year, indemnified or agreed to
indemnify the auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the Consolidated Entity has not paid a premium in respect of a contract to
insure the auditor of the company or any related entity.
39
DIRECTOR’S REPORT
Zenith Minerals Limited
1 3 . S HARE OPT IONS
Shares Under Option
Unissued ordinary shares of Zenith Minerals Limited under option at the date of this report are as follows:
Date options
granted
Expiry date
16 July 2021
14 May 2020
14 July 2024
14 May 2023
25 November 2019
24 November 2022
28 September 2018
28 September 2021
13 July 2020
13 July 2020
31 December 2023
31 December 2023
25 November 2020
14 May 2023
Exercise
Price
$0.379
$0.1097
$0.087
$0.18
$0.14
$0.16
$0.1097
Number under
option
750,000
1,200,000
3,950,000
1,650,000
2,000,000
2,000,000
5,750,000
No option holder has any right under the options to participate in any other share issue of the Group.
14. SHARES ISSUED ON THE EXERCISE OF OPTIONS
There were no ordinary shares issued by Zenith Minerals Limited during the year ended 30 June 2021
and up to the date of this report on the exercise of options granted.
15. PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group
for all or any part of those proceedings. The Group was not a party to any such proceedings during the
period.
16. DIVIDENDS
No dividends were paid or provided for during the year.
17. NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor (PKF) for non-audit services provided during the
financial year are outlined in Note 9 to the financial statements.
The directors are satisfied that the provision for non-audit services during the financial year, by the auditor
(or by another person or firm on the auditor’s behalf), is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services do not compromise the external auditor’s independence
requirements of the Corporations Act 2001 due to the following reasons:
•
•
all non-audit services have been reviewed and approved to ensure that they do not impact the
integrity and objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out
in APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional
and Ethics Standards Board, including reviewing or auditing the auditor’s own work, acting in a
management or decision-making capacity for the company, acting as advocate for the company or
jointly sharing economic risks and rewards.
18. OFFICERS OF THE COMPANY WHO ARE FORMER AUDIT PARTNERS OF PKF
There are no officers of the company who are former audit partners of PKF.
40
DIRECTOR’S REPORT
Zenith Minerals Limited
19. AUDITORS’ INDEPENDENCE DECLARATION
A copy of the auditors’ independence declaration as required under section 307C of the Corporations
Act 2001 is set out on the following page.
20. AUDITOR
PKF continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
Mr P J Bird
Executive Chairman
Dated: 28 September 2021
Perth, WA.
41
PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF ZENITH MINERALS LIMITED
In relation to our audit of the financial report of Zenith Minerals Limited for the year ended 30 June 2021, to the
best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of
the Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
SIMON FERMANIS
AUDIT PARTNER
28 SEPTEMBER 2021
WEST PERTH
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
42
FINANCIAL STATEMENTS
Zenith Minerals Limited
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEAR ENDED 30 JUNE 2021
NOTE
Consolidated Entity
Revenue from continuing operations
Profit on part disposal of equity investment in Associate
Net fair value gain on other financial assets
Other revenue
Interest revenue
Expense
Employee benefits expenses
Share option based payment
Depreciation
Premises costs
Exploration expenditure expensed
Exploration expenditure write off
Impairment loss on exploration & evaluation expenditure
Impairment on investment in associate
Amortisation expense
Share of losses of Associate accounted for using equity method
Other operating expenses
Profit/(Loss) from continuing operations before income tax
Income tax expense
Profit/(Loss) from continuing operations after income tax
benefit for the year
Net profit/(loss) after tax from discontinued operations
5
16
14
6
30
17
18
18
16
19
16
7
11
2021
$
247,239
159,776
3,063,086
2,370
4,165
(683,268)
(451,276)
(7,587)
(58,255)
(21,367)
-
(443,758)
(428,636)
(12,668)
(3,950)
(570,580)
795,291
-
795,291
2020
$
514,525
107,123
259,772
6,897
1,506
(350,374)
(138,313)
(8,219)
-
(6,122)
(336,467)
(21,027)
-
(22,811)
(9,135)
(283,844)
(286,489)
(88,147)
(374,636)
8
1,214,850
(8,761)
Net profit for the year
2,010,141
(383,397)
Other comprehensive income
Items that might be reclassified subsequently to profit or loss:
Foreign currency translation
Other comprehensive income for the year (net of tax)
24(a)
(75,246)
(75,246)
(48,320)
(48,320)
Total comprehensive profit/(loss) for the year
Profit/(Loss) per share
Continuing operations
Basic profit/(loss) per share
Diluted profit/(loss) per share
Discontinued operations
Basic profit/(loss) per share
Diluted profit/(loss) per share
Continuing and discontinued operations
Basic profit/(loss) per share
Diluted profit/(loss) per share
1,934,895
(431,717)
Cents
Cents
0.27
0.26
0.42
0.39
0.69
0.65
(0.16)
(0.16)
(0.004)
(0.004)
(0.17)
(0.17)
10
10
10
10
10
10
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction
with the notes to the consolidated financial statements.
43
FINANCIAL STATEMENTS
Zenith Minerals Limited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
NOTE
Consolidated Entity
2021
$
2020
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial asset at fair value through profit or loss
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Investment in associate
Financial asset at fair value through profit or loss
Plant and equipment
Right of use asset
Exploration and evaluation expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease liability
Provision for income tax
Employee benefits
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
12
13
14
15
16
14
17
19
18
20
21
11
22
1,832,183
98,426
4,636,593
18,899
968,107
113,035
630,742
6,894
6,586,101
1,718,778
-
-
20,834
-
6,714,651
348,055
6,520
18,492
14,919
3,993,265
6,735,485
4,381,251
13,321,586
6,100,029
210,786
-
-
129,890
97,728
50,471
88,147
70,906
340,676
307,252
340,676
307,252
12,980,910
5,792,777
23
24(a)
24(b)
26,543,450
867,650
(14,430,190)
22,134,472
98,636
(16,440,331)
12,980,910
5,792,777
The consolidated statement of financial position is to be read in conjunction with the notes to the consolidated
financial statements.
44
FINANCIAL STATEMENTS
Zenith Minerals Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Issued Capital
Reserves
$
$
Accumulated
Losses
$
Total
$
Balance at 1 July 2020
22,134,472
98,636
(16,440,331)
5,792,777
Profit/(Loss) for the period
Other comprehensive income
Total comprehensive income
Transactions with owners,
recorded directly in equity
Issue of shares, net of transaction
costs (note 23)
Issue of employee options (note 24)
Issue of broker options
-
-
-
-
(75,246)
(75,246)
2,010,141
-
2,010,141
(75,246)
2,010,141
1,934,895
4,408,978
-
-
-
451,276
392,984
-
-
-
4,408,978
451,276
392,984
Balance at 30 June 2021
26,543,450
867,650
(14,430,190)
12,980,910
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Issued Capital
Reserves
$
$
Accumulated
Losses
$
Total
$
Balance at 1 July 2019
20,475,655
138,131
(16,178,034)
4,435,752
Adjustment for change in accounting
policy
-
-
(8,388)
(8,388)
Restated balance at 1 July 2019
20,475,655
138,131
(16,186,422)
4,427,364
Profit/(Loss) for the period
Other comprehensive income
Total comprehensive income
Transactions with owners,
recorded directly in equity
Issue of shares, net of transaction
costs (note 23)
Issue of employee options (note 24)
Expiry/Cancellation of staff options
(note 24)
-
-
-
-
(48,320)
(48,320)
(383,397)
-
(383,397)
(48,320)
(383,397)
(431,717)
1,658,817
-
138,313
-
-
(129,488)
129,488
-
-
-
1,658,817
138,313
Balance at 30 June 2020
22,134,472
98,636
(16,440,331)
5,792,777
The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated
financial statements.
45
FINANCIAL STATEMENTS
Zenith Minerals Limited
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE
Consolidated Entity
2021
$
2020
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Cash paid to suppliers and employees
Payments for capitalised exploration and expenditure
Government grants and tax incentives
Interest received
Interest and other finance costs paid
Tax paid
100,447
(1,150,993)
(3,379,570)
131,000
4,165
-
(88,147)
78,036
(695,054)
(1,165,533)
86,000
1,627
(4,400)
-
NET CASH (USED IN) OPERATING ACTIVITIES
30
(4,383,098)
(1,699,324)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on disposal of investments
Proceeds on sale of tenements
Payments for plant and equipment
NET CASH FROM (USED IN) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of equity securities
Cost of issuing equity securities
Repayment of lease liability
487,064
15,000
(9,929)
492,135
22,176
-
(3,185)
18,991
5,100,000
(298,037)
(46,923)
1,663,494
(29,677)
(71,550)
NET CASH PROVIDED BY FINANCING ACTIVITIES
4,755,040
1,562,267
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the
financial period
Effect of movement in exchange rates on cash held
CASH AND CASH EQUIVALENTS AT THE END OF THE
FINANCIAL PERIOD
864,077
(118,066)
968,107
1,063,317
-
22,856
12
1,832,183
968,107
The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated
financial statements.
46
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. REPORTING ENTITY
Zenith Minerals Limited and controlled entities (“Consolidated Entity”) is domiciled in Australia, incorporated in
Australia, publicly listed on the ASX and limited by shares. The address of the Consolidated Entity registered
office and principal place of business is Level 2, 33 Ord Street, West Perth, Western Australia, 6005.
The Consolidated Entity is involved in mineral exploration.
2 . BAS IS OF P REPARAT ION
(a) Statement of Compliance
These general-purpose financial statements have been prepared in accordance with Australian
Accounting Standards (AASBs), Interpretations issued by the Australian Accounting Standards Board
(AASB) and the Corporations Act 2001, as appropriate for for-profit orientated entities.
These financial statements of the Consolidated Entity comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Consolidated Financial Statements were approved by the Board of Directors on 28 September
2021. The directors have the power to amend and reissue the financial statements. Comparative information
is for period 1 July 2019 to 30 June 2020.
(b) Basis of Measurement
These financial statements have been prepared on the historical cost and accrual accounting basis,
except for the revaluation of financial assets and liabilities at fair value through profit or loss and financial
assets at fair value through other comprehensive income.
In accordance with the Corporations Act 2001, these financial statements present the results of the
Consolidated Entity with supplementary information about the parent entity being included in at note
34.
(c) Functional and Presentation Currency
These financial statements are presented in Australian dollars, which is the Consolidated Entity’s
functional currency.
(d) Use of Estimates and Judgements
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the Financial Statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenues and
expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other
various factors, including expectations of future events, management believes to be reasonable under
the circumstances. The resulting accounting judgements and estimates will seldom equal the related
actual results. The judgements, estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within
the next financial year are discussed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic
has had, or may have, on the consolidated entity based on known information. Consideration extends to
the suppliers, staffing and geographic regions in which the consolidated entity operates. The impact of
the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the
consolidated entity up to date, it is not practicable to estimate the potential impact, positive or negative,
after the reporting date.
47
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
2 . BASIS OF P REPARAT ION (cont.)
(d) Use of Estimates and Judgements (cont.)
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant
judgement is required in determining the provision for income tax. There are many transactions and
calculations undertaken during the ordinary course of business for which the ultimate tax determination
is uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues based on the
consolidated entity's current understanding of the tax law. Where the final tax outcome of these matters
is different from the carrying amounts, such differences will impact the current and deferred tax provisions
in the period in which such determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity
considers it is probable that future taxable amounts will be available to utilise those temporary differences
and losses.
Exploration and evaluation expenditure
The Consolidated Entity capitalises expenditure relating to exploration and evaluation where it is considered
likely to be recoverable or where the activities have not reached a stage which permits a reasonable
assessment of the existence of reserves. Key judgements are applied in considering costs to be
capitalised, including determining those expenditures directly related to these activities and allocating
overheads between those that are expensed and capitalised. While there are certain areas of interest
from which no reserves have been extracted, the directors are of the continued belief that such
expenditure should not be written off since feasibility studies in such areas have not yet concluded.
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 and
changes to commodity prices. To the extent that capitalised costs are determined not to be recoverable
in the future, they will be written off in the period in which this determination is made.
As at 30 June 2021, the carrying value of capitalised exploration expenditure is $6,714,651 (2020:
$3,993,265).
Impairment of Non-Financial Assets
The Consolidated Entity assesses impairment at each reporting date by evaluating conditions specific
to the Consolidated Entity and to the particular asset that may lead to impairment of assets. Where an
impairment trigger exists, the recoverable amount of the asset is determined. Fair value less cost of
disposal or value-in-use calculations performed in assessing recoverable amounts incorporate a
number of key estimates. Impairment loss recorded in the current financial year was $443,758 (2020:
$21,027).
Share Based Payments
The Consolidated Entity measures the cost of equity settled transactions with consultants and employees
by reference to the fair value of the equity instruments at the date at which they are granted. The fair
value is determined using a Black Scholes model, taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity settled
share-based payments would not impact carrying amounts of assets and liabilities within the next annual
reporting period but may impact profit or loss and equity.
Estimation of Useful Lives of Assets
The Consolidated Entity determines the useful lives and related depreciation and amortisation charges
for its property, plant & equipment and finite live intangible assets. Events such as technical innovations
or other events could change the useful lives of assets significantly. Depreciation and amortisation
charges will increase where the useful lives are less than the previously estimated lives, or technically
obsolete or non-strategic assets which have been abandoned or sold will be written down or written off.
48
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
2. BAS IS OF P REPARAT ION (cont.)
Fair Value Measurement Hierarchy
The Consolidated Entity is required to classify all assets and liabilities measured at fair value,
using a three level hierarchy which is based on the lowest level of input that is significant to the
entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs
other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. In determining
what is significant to fair value there is considerable judgement required. Therefore, the category
the asset or liability is placed in can be subjective.
The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models.
These include discounted cash flow analysis or use of observable inputs requiring significant
adjustments based on unobservable inputs.
Lease term
In the measurement of both the right-of-use asset and lease liability, the lease term is a significant
component. Judgement is exercised in determining whether there is reasonable certainty that an option
to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease
will not be exercised, when ascertaining the periods to be included in the lease term. In determining the
lease term, all facts and circumstances that create an economical incentive to exercise an extension
option, or not to exercise a termination option, are considered at the lease commencement date. Factors
considered may include the importance of the asset to the consolidated entity's operations; comparison
of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of
significant leasehold improvements; and the costs and disruption to replace the asset. The consolidated
entity reassesses whether it is reasonably certain to exercise an extension option, or not exercise a
termination option, if there is a significant event or significant change in circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate
is estimated to discount future lease payments to measure the present value of the lease liability at the
lease commencement date. Such a rate is based on what the consolidated entity estimates it would have
to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use
asset, with similar terms, security and economic environment.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out below.
These policies have been consistently applied unless otherwise stated.
New or Amended Accounting Standards and Interpretations Adopted
The Consolidated Entity has adopted all of the new or amended Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting
period. There was no material impact on the financial report as a result of adopting the new accounting
standards.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted by the Consolidated Entity for the annual reporting period ended 30 June 2021. The impact
has not yet been determined.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Zenith
Minerals Limited (the “Company”) as at 30 June 2021 and the results of all subsidiaries for the year then
ended. Zenith Minerals Limited and its subsidiaries together are referred to in these financial statements
as the ‘Consolidated Entity’ or the ‘Group’.
49
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Principles of consolidation (cont.)
Subsidiaries are all those entities over which the Consolidated Entity has control. The Consolidated Entity
controls an entity when the Consolidated Entity is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the activities of
the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Consolidated
Entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated
Entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Consolidated Entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the book value of the share of the non-controlling interest acquired
is recognised directly in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit
or loss and other comprehensive income, statement of financial position and statement of changes in equity of
the Consolidated Entity. Losses incurred by the Consolidated Entity are attributed to the non-controlling interest
in full, even if that results in a deficit balance.
Where the Consolidated Entity loses control over a subsidiary, it derecognises the assets including goodwill,
liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The Consolidated Entity recognises the fair value of the consideration received and the
fair value of any investment retained together with any gain or loss in profit or loss.
Associates
Associates are entities over which the consolidated entity has significant influence but not control or joint
control. Investments in associates are accounted for using the equity method. Under the equity method, the
share of the profits or losses of the associate is recognised in profit or loss and the share of the movements
in equity is recognised in other comprehensive income. Investments in associates are carried in the
statement of financial position at cost plus post-acquisition changes in the consolidated entity's share of net
assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment
and is neither amortised nor individually tested for impairment. Dividends received or receivable from
associates reduce the carrying amount of the investment.
When the consolidated entity's share of losses in an associate equals or exceeds its interest in the associate,
including any unsecured long-term receivables, the consolidated entity does not recognise further losses,
unless it has incurred obligations or made payments on behalf of the associate.
The consolidated entity discontinues the use of the equity method upon the loss of significant influence over
the associate and recognises any retained investment at its fair value. Any difference between the associate's
carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or
loss.
Operating segments
Operating segments are presented using the ‘management approach’, where the information presented is
on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The
CODM is responsible for the allocation of resources to operating segments and assessing their
performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is the Consolidated Entity’s functional and
presentation currency.
50
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Foreign currency translation (cont.)
Foreign Currency Transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
Foreign Operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates
at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars
using the average exchange rates, which approximate the rate at the date of the transaction, for the period.
All resulting foreign exchange differences are recognised in other comprehensive income through the foreign
currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is
disposed of.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Loans
Loans are recognised initially at fair value, net of transaction costs. Subsequent to initial recognition loans
are measured at amortised cost using the effective interest method, less any impairment losses. .
51
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Finance costs
Finance costs directly attributable to qualifying assets are capitalised as part of the asset. All other finance
costs are expensed in the period in which they are incurred
Revenue
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer.
For each contract with a customer, the consolidated entity: identifies the contract with a customer; identifies
the performance obligations in the contract; determines the transaction price which takes into account
estimates of variable consideration and the time value of money; allocates the transaction price to the
separate performance obligations on the basis of the relative stand-alone selling price of each distinct good
or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a
manner that depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such
as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to the
constraining principle are recognised as a separate refund liability.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on
either a fixed price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period necessary
to match them with the costs that they are intended to compensate.
Income tax
The income tax expense or benefit for the period is the tax payable on the current period's taxable income based
on the income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised in prior periods, where applicable.
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect
of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been
enacted or substantively enacted by reporting date. Current tax for current and prior periods is recognised
as a liability (or asset) to the extent that it is unpaid (or refundable).
52
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Deferred tax
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates that are expected
to apply in the period in which the liability is settle or the asset realised, based on the tax rates (and tax laws)
that have been enacted or substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting nor taxable profits; or
• When the taxable temporary difference is associated with interests in subsidiaries, associates or joint
ventures, and in the timing of the reversal can be controlled and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax liabilities are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses
The carrying amount of recognised deferred tax assets and unrecognised deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is no longer probably that sufficient future
taxable profits will be available to allow all or part of the asset to be recovered. Previously unrecognised
deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available
to recover the asset.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off current tax
assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and when they
relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities which intend to settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the Statement of Financial Position based on current and non-
current classification.
The asset is classified as current when:
i)
It’s either expected to be realised or intended to be sold or consumed in normal operating
cycle;
it’s held primarily for the purpose of trading;
it’s expected to be realised within 12 months after the reporting period; or
the asset is cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for at least 12 months after the reporting period.
ii)
iii)
iv)
All other assets are classified as non-current.
A liability is classified as current when:
i)
ii)
iii)
iv)
it’s either expected to be settled in normal operating cycle;
it’s held primarily for the purpose of trading;
it’s due to be settled within 12 months after the reporting period; or
there is no unconditional right to defer the settlement of the liability for at least 12 months after
the reporting period.
All other liabilities are classified as non-current. Deferred tax assets and liabilities are always
classified as non-current.
Impairment
(i)
Financial Assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period
as to whether the financial instrument's credit risk has increased significantly since initial recognition, based
on reasonable and supportable information that is available, without undue cost or effort to obtain.
53
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Impairment (cont.)
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls
over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
(ii)
Non-Financial Assets
The carrying amounts of the Consolidated Entity’s non-financial assets, deferred tax assets, are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds
its recoverable amount. Impairment losses are recognised in profit or loss.
The recoverable amount is the higher of the assets fair value less costs of disposal and value-in-use. In value
in use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount
rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have
independent cash flows are grouped together to form a cash-generating unit.
Cash and cash equivalents
Cash and cash equivalents include cash on hand and at call and deposits with banks or financial institutions and other
short term, highly liquid investments with original maturities of three months or less, which are readily convertible
to cash and which are subject to an insignificant risk of changes in value. Bank overdrafts that are repayable on
demand and form an integral part of the Group’s cash management are included as a component of cash and
cash equivalents for the purpose of the statement of cash flows.
Receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any allowance for expected credit losses. Trade receivables are generally
due for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses
a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been
grouped based on days overdue.
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any allowance for expected credit losses. Trade receivables are generally
due for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses
a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been
grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Contract assets
Contract assets are recognised when the consolidated entity has transferred goods or services to the
customer but where the consolidated entity is yet to establish an unconditional right to consideration. Contract
assets are treated as financial assets for impairment purposes.
54
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Customer acquisition costs
Customer acquisition costs are capitalised as an asset where such costs are incremental to obtaining a
contract with a customer and are expected to be recovered. Customer acquisition costs are amortised on a
straight-line basis over the term of the contract.
Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained or
which are not otherwise recoverable from a customer are expensed as incurred to profit or loss. Incremental
costs of obtaining a contract where the contract term is less than one year is immediately expensed to profit
or loss.
Customer fulfilment costs
Customer fulfilment costs are capitalised as an asset when all the following are met: (i) the costs relate directly
to the contract or specifically identifiable proposed contract, (ii) the costs generate or enhance resources of
the consolidated entity that will be used to satisfy future performance obligations; and (iii) the costs are
expected to be recovered. Customer fulfilment costs are amortised on a straight-line basis over the term of
the contract.
Joint ventures
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the arrangement. Investments in joint ventures are accounted for using the
equity method. Under the equity method, the share of the profits or losses of the joint venture is recognised
in profit or loss and the share of the movements in equity is recognised in other comprehensive income.
Investments in joint ventures are carried in the statement of financial position at cost plus post-acquisition
changes in the consolidated entity’s share of net assets of the joint venture. Goodwill relating to the joint
venture is included in the carrying amount of the investment and is neither amortised nor individually tested
for impairment. Income earned from joint venture entities reduce the carrying amount of the investment.
Property, plant and equipment
(i) Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses. Cost includes expenditure that is directly attributable to the acquisition of the item.
(i) Subsequent Costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits embodied within the part will flow to the Consolidated
Entity and its costs can be measured reliably. The costs of the day-to-day servicing of property, plant and
equipment are recognised in profit or loss as incurred.
(ii) Derecognition
An item of property plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds
are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred
directly to retained profits.
(iii) Depreciation
Depreciation is calculated on a reducing balance basis so as to write off the net cost or other revalued amount
of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual
values and depreciation method is reviewed at the end of each annual reporting period.
55
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Property, plant and equipment (cont.)
(iii) Depreciation (cont.)
The following rates are used in the calculation of depreciation:
Plant and equipment
•
• Motor vehicles
• Office furniture and fittings
• Computer and Office Equipment
10% - 33%
25%
10%
33%
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease
payments made at or before the commencement date net of any lease incentives received, any initial direct
costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be
incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under
residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend
on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an index
or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When
a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or
loss if the carrying amount of the right-of-use asset is fully written down.
Exploration and evaluation expenditure
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as exploration and
evaluation assets on an area of interest basis. Costs incurred before the Group has obtained the legal rights
to explore an area are recognised in the profit or loss statement.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and
either:
(i)
(ii)
the expenditures are expected to be recouped through successful development and exploitation of the
area of interest, or by its sale; or
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or other wise of economically recoverable reserves.
Where a project or area of interest has been abandoned, the expenditure incurred is written off in the year in
which the decision is made.
56
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Trade and other payables
Trade payables and other accounts payable are recognised when the Consolidated Entity becomes obliged
to make future payments resulting from the purchase of goods and services. Due to their short-term nature they
are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid
within 30 days of recognition.
Contract liabilities
Contract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer
and are recognised when a customer pays consideration, or when the consolidated entity recognises a
receivable to reflect its unconditional right to consideration (whichever is earlier) before the consolidated entity
has transferred the goods or services to the customer.
Provisions
Provisions are recognised when the Consolidated Entity has a present obligation as a result of a past event, it is
probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made
of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at reporting date, taking into account the risks and uncertainties surrounding the
obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate
specific to the liability.
The increase in the provision due to the passage of time is recognised as a finance cost.
Employee benefits
(i) Short term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be settled within 12 months of the reporting date, are recognised in current other payables in respect of
employees' services up to the reporting date and are measured at the amounts expected to be paid when the
liabilities are settled.
(ii) O t h e r l o n g t e r m e m p l o y e e b e n e f i t s
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer
settlement of the liability. The liability is measured as the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
(iii) Share-based payment transactions
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the
exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the
option, together with non-vesting conditions that do not determine whether the consolidated entity receives
the services that entitle the employees to receive payment. No account is taken of any other vesting
conditions.
57
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Employee benefits (cont.)
(iii) Share-based payment transactions (cont.)
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant
date fair value of the award, the best estimate of the number of awards that are likely to vest and the
expired portion of the vesting period.
The amount recognised in profit or loss for the period is the cumulative amount calculated at each
reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by
applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms
and conditions on which the award was granted. The cumulative charge to profit or loss until settlement of
the liability is calculated as follows:
• During the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
• From the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to
market conditions are considered to vest irrespective of whether or not that market condition has been met,
provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not
been made. An additional expense is recognised, over the remaining vesting period, for any modification that
increases the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy
the condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or
employee and is not satisfied during the vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that
the transaction will take place either: in the principal market; or in the absence of a principal market, in the
most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interest. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a reassessment of the lowest level
input that is significant to the fair value measurement.
58
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Fair value measurement (cont.)
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of an
asset or liability from one period to another, an analysis is undertaken, which includes a verification of the
major inputs applied in the latest valuation and a comparison, where applicable, with external sources of
data.
Share capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the loss attributable to equity holders of the Consolidated Entity,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial years, 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.
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the
cost of acquisition of an asset or as part of an item of expense; or
• for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables.
Cash flows are included in the Statement of Cash Flows on a gross basis. The GST component of cash
flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority
is classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the
tax authority.
4. OPERATING SEGMENTS
Identification of Reportable Operating Segments
The Consolidated Entity operates in geographical locations, Australia, United States of America (USA),
and Turkey-Europe (as acquired through the 2014 acquisition), and is organised into one operating
segment being mineral, mining and exploration and all of the Consolidated Entity’s resources are
employed for this purpose.
59
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
4. OPERATING SEGMENTS (cont.)
Identification of Reportable Operating Segments (cont.)
This operating segment is based on the internal reports that are reviewed and used by the Board of
Directors (who are identified as the Chief Operating Decision Makers (‘CODM’)) in assessing
performance and in determining the allocation of resources.
The CODM review expenditure in exploration. The accounting policies adopted for internal reporting
to the CODM are consistent with those adopted in the financial statements.
Geographical Information
Sales to external customers
2021
$
94,411
-
-
2020
$
345,215
-
-
Geographical non-current
assets
2021
$
2020
$
6,735,464
3,486,571
-
-
114,835
779,845
94,411
345,215
6,735,464
4,381,251
Australia
USA
Turkey
5. REVENUE
Other Revenue
Exploration Income - Profit on Sale of Tenement Interest
Exploration Income – Other
Government Grant – COVID-19
Other revenue
Revenue from Continuing operations
6. OTHER REVENUE
Profit on part disposal of right of use asset
7. OTHER OPERATING EXPENSE
Accounting and Admin Services
Auditors Remuneration
Computer Expenses
Consulting Fee
Legal Expenses
Motor Vehicle Expense
Share Registry and Securities Exchange
Fringe Benefits Tax
Subscriptions, Publications, Memberships
Insurance
Interest on lease liability
Marketing and Media
Sundry Administration Expenses
8
60
Consolidated Entity
2021
$
2020
$
94,411
-
81,000
71,828
247,239
328,091
17,124
141,000
28,310
514,525
Consolidated Entity
2021
$
2,370
2,370
2020
$
6,897
6,897
Consolidated Entity
2021
$
67,642
50,456
25,389
36,000
11,413
3,940
54,543
4,916
11,190
51,180
1,073
156,207
94,631
570,580
2020
$
39,950
42,641
16,165
11,400
7,547
3,786
41,235
4,884
7,120
20,869
4,400
32,001
51,846
283,844
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
8. DISCONTINUED OPERATIONS
30 June 2021
Sale of Wyoming Rare Pty Ltd
Proceeds
Carrying value of exploration expenditure
Profit on sale
Sale of interest in Zenolith (USA) LLC
Proceeds
- Cash (250,000 USD)
- Shares in Bradda Head Lithium Limited
Carrying value of investment in Zenolith (USA)
Profit on sale
Net profit from discontinued operations
30 June 2020
Profit/(Loss) from discontinued operations
Consolidated Entity
2021
$
2020
$
281,250
(108,461)
172,789
322,514
726,067
1,048,581
(6,520)
1,042,061
1,214,850
-
-
-
-
-
-
-
-
-
-
-
(8,761)
(8,761)
9. AUDITOR’S REMUNERATION
During the financial year the following fees were paid or payable for services provided by PKF Perth, the
auditor of the Group:
Consolidated Entity
Audit services
Auditors of the Group
Audit and review of financial report – payable to PKF Perth
Audit and review of financial report – payable to other audit firms
Total remuneration for audit services
Non-audit services
Total Audit Services
10. PROFIT/(LOSS) PER SHARE
Continuing operations
Basic profit/(loss) per share – cents
Diluted profit/(loss) per share – cents
Discontinued operations
Basic profit/(loss) per share – cents
Diluted profit/(loss) per share – cents
Continuing and discontinued operations
Basic profit/(loss) per share – cents
Diluted profit/(loss) per share – cents
61
2021
$
44,670
5,786
50,456
-
50,456
2020
$
37,400
5,241
42,641
-
42,641
Consolidated Entity
2020
2021
(Cents)
(Cents)
0.27
0.26
0.42
0.39
0.69
0.65
(0.16)
(0.16)
(0.004)
(0.004)
(0.17)
(0.17)
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
10. PROFIT/(LOSS) PER SHARE (cont.)
Consolidated Entity
2021
$
2020
$
The profit/(loss) and weighted average number of ordinary shares
used in the calculation of basic and diluted profit/(loss) per share
are as follows:
Profit/(Loss) used in calculation of earnings per share
- continuing operations
- discontinued operations
Weighted average number of ordinary shares for the purposes of
basic profit/(loss) per share
Weighted average number of ordinary shares for the purposes of
diluted profit/(loss) per share
795,291
1,214,850
(374,636)
(8,761)
292,683,318
231,206,707
309,233,318
238,006,707
11. INCOME TAX EXPENSE
a)
Income Tax Expense
Current tax
Aggregate Income tax expense
Income tax expense is attributable to:
Profit from continuing operations
Profit from discontinued operations
Aggregate income tax expense
Deferred tax - origination and reversal of temporary
Differences
Consolidated Entity
2021
$
2020
$
-
-
-
-
-
-
88,147
88,147
88,147
-
88,147
-
The prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income
tax expense in the financial statements as follows:
Loss before tax
2,010,141
(295,250)
Prima facie tax benefit on profit/(loss) at 26% (2020: 27.5%)
522,637
(81,194)
Add:
Tax effect of:
Other non-allowable items
Share based payments
Overs/unders from prior year
Tax losses not recognised
Deferred tax balances (recognised)
Income tax expense on pre-tax net profit/(loss)
(306,462)
117,332
3,164
1,089,239
(1,425,909)
-
(73,366)
38,036
876
464,707
(260,912)
88,147
Consolidated Entity
2020
2021
The applicable average weighted tax rates are as follows:
0%
30%
62
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
11. INCOME TAX EXPENSE (cont.)
Deferred Tax Assets
At 25% (2020: 27.5%)
Carry forward losses
Provisions and accruals
Merger/acquisition costs
Lease liability
Right of use asset
Consolidated Entity
2021
$
2020
$
6,557,900
39,838
4,069
213
2,575
6,604,595
5,352,208
24,862
4,475
1,210
4,376
5,387,131
Tax benefit of the above Deferred Tax Assets will only be obtained if:
a) The company derives future assessable income or a nature and of an amount sufficient to enable
the benefits to be utilised; and
b) The company continues to comply with the conditions for deductibility imposed by law; and
c) No changes in income tax legislation adversely affect the company in utilising the benefits.
Deferred Tax Liabilities
At 25% (2020: 27.5%)
Exploration expenditure
Capital raising costs
Property, plant and equipment
Financial asset
Prepayments
Consolidated Entity
2021
$
2020
$
1,532,300
38,610
5,209
820,787
472
907,176
23,586
5,085
68,795
1,343
2,397,378
1,005,985
The above Deferred Tax Liabilities have not been recognised as they have given rise to the carry forward
revenue losses for which the Deferred Tax Asset has not been recognised.
12. CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Deposits at call
Consolidated Entity
2021
$
2020
$
1,831,183
1,000
1,832,183
952,107
1,000
953,107
a) Reconciliation to cash and cash equivalents at the end of the
year.
The above figures are reconciled to cash and cash
equivalents at the end of the financial year, as shown in the
Statement of Cash Flows, as follows:
Balances as above
Cash and cash equivalents in statement of cash flows
1,832,183
1,832,183
968,107
968,107
The Group’s exposure to interest rate risk and sensitivity analysis for financial assets and liabilities are
disclosed in note 25.
63
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
13. TRADE AND OTHER RECEIVABLES
Current
Lease receivables (i)
Other receivables (ii)
Consolidated Entity
2021
$
2020
$
-
98,426
98,426
33,601
79,434
113,035
(i) The Company has a number of sub-leases with various parties which are the same term as the
Company’s lease.
(ii) Other receivables are non-interest bearing and are normally settled on 30 day terms.
None of the consolidated entity’s other receivables are past due (2020: Nil).
14. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Current
Listed ordinary shares – at fair value
through profit and loss.
Reconciliation
Reconciliation of the fair values at the beginning and end of the
current and previous financial years.
Opening fair value
Additions
Disposals
Revaluation increment
Closing fair value
Non-Current
Consolidated Entity
2021
$
2020
$
4,636,593
630,742
630,742
1,018,318
(75,650)
3,063,183
4,636,593
43,147
350,000
(22,176)
259,771
630,742
Unlisted investment – at fair value through profit and loss
-
6,520
Reconciliation
Reconciliation of the fair values at the beginning and end of
the current and previous financial years.
Opening fair value
Revaluation decrement
Closing fair value
15. OTHER CURRENT ASSETS
Bonds & deposits
Prepayments
64
6,520
(6,520)
-
10,015
(3,495)
6,520
Consolidated Entity
2021
$
2020
$
17,010
1,889
18,899
2,010
4,884
6,894
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
16. INTEREST IN ASSOCIATE
The consolidated entity has a 20% (2020: 23%) interest in Kavak Madencilik A.Ş., which is a for-profit joint
venture established to explore mineral resources in Turkey. The consolidated entity’s investment in Kavak
Madencilik A.Ş. is accounted for using the equity method in the consolidated financial statements.
Summarised statement of financial position of Kavak Madencilik:
Cash and cash equivalents
Trade and other receivables
Other current assets
Exploration and evaluation expenditure
Trade and other payables
Net assets/ equity
Zenith’s 20% share (2020:23%) of Kavak Madencilik’s net assets
Impairment recognised
Zenith’s carrying account of investment in Kavak Madencilik
Summarised statement of profit or loss of Kavak Madencilik:
Administration Costs
Loss for the period
Movement Reconciliation:
Balance at beginning of financial year
Payments for investment
Share of loss recognised
Profit on part disposal of investment
Foreign exchange loss
Impairment
Balance at end of financial year
17. PLANT AND EQUIPMENT
Plant and equipment – at cost
Less: Accumulated depreciation
Motor vehicles – at cost
Less: Accumulated depreciation
Computer equipment and software – at cost
Less: Accumulated depreciation
Consolidated Entity
2021
$
2020
$
64,465
3,729
322,672
1,867,411
(115,105)
61,373
-
376,447
2,132,283
(1,056,822)
2,143,172
1,513,281
428,634
(428,634)
-
348,055
-
348,055
(16,337)
(16,337)
(32,448)
(32,448)
Consolidated Entity
2021
$
2020
$
348,055
-
(3,950)
159,776
(75,246)
(428,636)
-
275,337
23,050
(9,135)
107,123
(48,320)
-
348,055
Consolidated Entity
2020
2021
$
$
25,822
(24,354)
1,468
99,570
(89,597)
9,973
34,348
(24,955)
9,393
25,822
(23,620)
2,202
94,652
(86,273)
8,379
29,337
(21,426)
7,911
Carrying Amount
20,834
18,492
65
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
17. PLANT AND EQUIPMENT (cont.)
a) Movement Reconciliation
Cost
Balance at 1 July 2019
Additions
Disposals/Write-off
Balance at 30 June 2020
Balance at 1 July 2020
Additions
Disposals/Write-off
Balance at 30 June 2021
Depreciation
Balance at 1 July 2019
Depreciation for the year
Depreciation on asset write off
Balance at 30 June 2020
Balance at 1 July 2020
Depreciation for the year
Depreciation on asset write off
Balance at 30 June 2021
Carrying Amount
At 30 June 2020
At 30 June 2021
Plant &
Equipment
Motor
Vehicles
$
$
Computer
Equipment
& Software
$
25,822
-
-
25,822
25,822
-
-
25,822
22,518
1,102
-
23,620
23,620
734
-
24,354
94,652
-
-
94,652
94,652
4,918
-
99,570
83,480
2,793
-
86,273
86,273
3,324
-
89,597
54,892
-
(25,555)
29,337
29,337
5,011
-
34,348
42,097
4,324
(24,995)
21,426
21,426
3,529
-
24,955
Total
$
175,366
-
(25,555)
149,811
149,811
9,929
-
159,740
148,095
8,219
(24,995)
131,319
131,319
7,587
-
138,906
2,202
1,468
8,379
9,973
7,911
9,393
18,492
20,834
18. EXPLORATION AND EVALUATION EXPENDITURE
Balance at beginning of financial year
Capitalised expenditure
Less capitalised expenditure written against proceeds
Less capitalised exploration expenditure recognised as equity
investment in associate
Less capitalised expenditure written off
Less impairment of exploration expenditure
Balance at end of financial year
Exploration and Evaluation Assets
Consolidated Entity
2020
$
2021
$
3,993,265
3,294,194
(129,050)
-
-
(443,758)
6,714,651
3,199,220
1,194,934
(21,909)
(21,486)
(336,467)
(21,027)
3,993,265
The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the
successful development and commercial exploitation or sale of the respective area of interest as well as
maintaining rights of tenure.
During the financial year, the consolidated entity booked an impairment loss on capitalised exploration and
evaluation expenditure of $443,758 (2020: $21,027) following its review of its portfolio of mineral
tenements, whereby decisions have been made for certain areas of interest, not to incur substantial
expenditure on further exploration for and evaluation of mineral resources.
Capitalised expenditure written off totaling $nil (2020: $336,467) is as a result of decisions being made for
certain areas of interest being abandoned or the right to explore has expired or will not be renewed.
66
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
19. RIGHT OF USE ASSET
Land and buildings – right of use asset
Less: Accumulated depreciation
Consolidated Entity
2021
$
2020
$
-
-
-
37,730
(22,811)
14,919
The company leased land and buildings for its offices under a two-year agreement which expired in February
2021. There is an option to renew for a further twelve months at the discretion of the landlord. The Company
sub-leased 68.8% of the offices, and has thus reclassified this portion of the right-of-use asset to lease
receivables (refer note 13).
20. TRADE AND OTHER PAYABLES
Current
Other payables (a)
Accrued fees and employment expenses (b)
Consolidated Entity
2020
2021
$
$
122,895
87,889
210,784
36,827
60,901
97,728
Terms and Conditions
Terms and conditions relating to the above financial instruments
a) Other payables are non-interest bearing and are normally settled on 30 day terms.
b) Sundry creditors and accruals are non-interest bearing and have an average term of 30 days.
21. LEASE LIABILITIES
Current liabilities
Lease Liabilities
22. EMPLOYEE BENEFITS
Current liabilities
Employee benefits
23. ISSUED CAPITAL
Consolidated Entity
2020
2021
$
$
-
-
50,471
50,471
Consolidated Entity
2020
2021
$
$
129,891
129,891
70,906
70,906
(a) Share capital
Fully paid ordinary shares
Balance at beginning of year
2021
Shares
No.
2021
$
2020
Shares
No.
2020
$
243,360,030
22,134,472
212,762,128
20,475,655
Issue of ordinary shares
51,000,000
5,100,000
30,597,902
1,688,494
Costs of issue
Total
(691,022)
-
(29,677)
294,360,030
26,543,450
243,360,030
22,134,472
67
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
23. ISSUED CAPITAL (cont.)
2021
During the year to 30 June 2021, the following changes to equity securities took place:
(i) On 7 July 2020, the Company announced a capital raising by way of a placement of 51,000,000 share
at an issue price of $0.10 raising $5,100,000 before costs.
(b) Ordinary Shares
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled
to one vote per share at meetings of the Group. All shares rank equally with regard to the Group’s residual
assets. Ordinary shares do not have a par value.
(c) Options
Information relating to Zenith Minerals Limited’s Employee Option Plan, including details of options issued,
exercised and lapsed during the financial year and options outstanding at the end of the financial year, is set
out in Note 29.
(d) There is no current on market share buy-back.
24. RESERVES AND RETAINED LOSSES
(a) Reserves
Options reserve
Balance at beginning of financial year
Issue of Staff Options
Issue of Broker Options
Expired/cancelled staff options (refer note 29)
Balance at end of financial year
Foreign Currency Translation Reserve
Balance at beginning of financial year
Foreign currency translation
Balance at end of financial year
Total Reserves
(b) Accumulated losses
Movements in accumulated losses were as follows:
Balance at beginning of financial year
Adjustment for change in accounting policy
Expired staff options (refer note 29)
Profit/(loss) for the year
Balance at end of financial year
Options Reserve
Consolidated Entity
2020
2021
$
$
208,873
451,276
392,984
-
1,053,133
(110,237)
(75,246)
(185,483)
867,650
200,048
138,313
138,313
(129,488)
208,873
(61,917)
(48,320)
(110,237)
98,636
(16,440,331)
-
-
2,010,141
(16,178,034)
(8,388)
129,488
(383,397)
(14,430,190)
(16,440,331)
The options reserve is used to recognise the benefit on the issue of options.
Foreign Currency Reserve
The reserve is used to recognise exchange differences arising from the translation of the financial
statements of foreign operations to Australian dollars.
25. FINANCIAL INSTRUMENTS
Overview
The Consolidated Entity has exposure to the following risks from their use of financial instruments:
• Credit risk
Liquidity risk
•
• Market risk
68
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
25. FINANCIAL INSTRUMENTS (cont.)
Overview (cont.)
This note presents information about the Consolidated Entity’s exposure to each of the above risks, their
objectives, policies and processes for measuring and managing risk and the management of capital.
The Consolidated Entity does not use any form of derivatives as it is not at a level of exposure that requires
the use of derivatives to hedge its exposure. Exposure limits are reviewed by management on a continuous
basis. The Consolidated Entity does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Management monitors and manages the financial risks relating to the operations of the
Consolidated Entity through regular reviews of the risks identified.
Credit Risk
Credit risk is the risk of financial loss to the Consolidated Entity if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Consolidated Entity’s
receivables from customers and investment securities. For the Consolidated Entity, it arises from receivables
due from director related parties. At the reporting date there were no significant concentrations of credit risk.
The consolidated entity does not hold any collateral.
Cash and Cash Equivalents
The Consolidated Entity limits its exposure to credit risk by only investing in liquid securities and only with counter
parties that have an acceptable credit rating.
Trade and Other Receivables
As the Consolidated Entity operates in the mining explorer sector, it does not have trade receivables and
therefore is not exposed to credit risk in relation to trade receivables.
Exposure to Credit Risk
The carrying amount of the Consolidated Entity’s financial assets represents the maximum credit exposure. The
Consolidated Entity’s maximum exposure to credit risk at the reporting date was:
Cash and cash equivalents
Other receivables
Financial asset at fair value through profit or loss
Impairment Losses
Consolidated Entity
2020
2021
$
$
968,107
113,035
637,262
1,832,183
98,426
4,636,593
6,567,203
1,718,404
None of the Consolidated Entity’s other receivables are past due (2020: Nil). The allowance accounts in
respect of financial assets are used to record impairment losses unless the Consolidated Entity is satisfied
that no recovery of the amount owing is possible, at that point the amount is considered irrecoverable and is
written off against the financial asset directly. At 30 June 2021 the Consolidated Entity does not have any
collective impairment on its other receivables (2020: Nil).
Guarantees
The Consolidated Entity’s policy is to not provide financial guarantees. No guarantees have been
provided during the year.
69
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
25. FINANCIAL INSTRUMENTS (cont.)
Liquidity Risk
Liquidity risk is the risk that the Consolidated Entity will not be able to meet its financial obligations as they
fall due. The Consolidated Entity’s approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity (mainly cash and cash equivalents) to meet its liabilities when due, under
both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Consolidated Entity’s reputation. The Consolidated Entity manages liquidity risk by maintaining
adequate reserves by continuously monitoring forecast and actual cash flows. The Consolidated Entity
does not have any external borrowings.
The following are the contractual maturities of financial liabilities, including estimated interest
payments and excluding the impact of netting agreements. The cashflows in the maturity analysis
below are not expected to occur significantly earlier than contractually disclosed above.
Non-derivatives
Consolidated Entity – 30 June 2021
Weighted
Average Interest
Rate
-
Non-interest bearing
Other payables*
Interest bearing
Lease liability
Contractual
cash flows
1 year
or less
1 to 2
years
2 to 5
years
Over 5
years
210,785
210,785
-
-
-
-
-
-
* The weighted average interest rate on other payables is Nil% as it is non-interest bearing.
Consolidated Entity - 30 June 2020
Weighted
Average Interest
Rate
Non-derivative
Non Interest
Bearing
Contractual
cash flows
1 year
or less
1 to 2
years
2 to 5
years
Over 5
years
Non-interest bearing
Other payables*
Interest bearing
Lease liability
-
97,728
97,728
5%
50,471
50,471
-
-
-
-
-
-
*The weighted average interest rate on other payables is Nil% as it is non interest bearing.
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Consolidated Entity’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
Currency Risk
The Consolidated Entity is exposed to foreign currency risk through foreign exchange rate
fluctuations when it enters into certain transactions denominated in foreign currency. Foreign
exchange risk arises from future commercial transactions and recognised financial assets and
financial liabilities denominated in a currency that is not the entity’s functional currency. The risk is
measured using sensitivity analysis and cash flow forecasting.
At 30 June, the carrying amount of the Consolidated Entity’s financial assets denominated in foreign
currencies as detailed below.
Financial Assets
Cash and cash equivalents denominated in US dollars
Consolidated Entity
2021
$
2020
$
-
4,420
A 5% movement in foreign exchange rates would increase or decrease the loss before tax by $3,396
(2020: $221).
70
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
25. FINANCIAL INSTRUMENTS (cont.)
Interest Rate Risk
The Consolidated Entity is exposed to interest rate risk, however to maintain liquidity, cash is invested for
periods generally not exceeding 90 Days.
Cash Flow Sensitivity Analysis for Variable Rate Instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased)
equity and profit or loss by the amounts shown below. The analysis is performed on the same basis as for
2020.
2021
Profit or Loss
100 bp
Increase
$
100 bp
Decrease
$
Cash & cash equivalents
42
(42)
Fair Values
2020
Profit or Loss
100 bp
Increase
$
9,681
100 bp
Decrease
$
(9,681)
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Fair Value Hierarchy
The table below details the consolidated entity’s assets and liabilities, measured or disclosed at fair value,
using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value
measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly
Level 3: Unobservable inputs for the asset or liability.
Consolidated –
30 June 2021
Assets
Financial assets at fair value
through profit or loss
Total Assets
Consolidated –
30 June 2020
Assets
Financial assets at fair value
through profit or loss
Total Assets
Level 1
$
Level 2
$
Level 3
$
Total
$
4,636,593
4,636,593
-
-
Level 1
$
Level 2
$
Level 3
$
630,742
6,520
630,742
6,520
-
-
-
-
-
-
Total
$
637,262
637,262
There were no transfers between levels during the financial year.
The carrying amounts of other receivables, trade and other payables are assumed to approximate their fair
values due to their short-term nature.
Valuation techniques for fair value measurements categorised within level 2:
Unquoted investments have been valued using their share of the net asset value.
71
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
25.
FINANCIAL INSTRUMENTS (cont.)
Capital Management
The Consolidated Entity’s objectives when managing capital is to safeguard the Consolidated Entity’s
ability to continue as a going concern, so as to maintain a strong capital base sufficient to maintain future
exploration and development of its projects.
In order to maintain or adjust the capital structure, the Consolidated Entity may return capital to
shareholders, issue new shares or sell assets for in-specie distributions. The Consolidated Entity’s focus
has been to raise sufficient funds through equity to fund exploration and evaluation activities.
The Consolidated Entity monitors capital on the basis of the gearing ratio, however there are no external
borrowings as at reporting date. The Consolidated Entity encourages employees to be shareholders
through the issue of free options to employees.
There were no changes in the Consolidated Entity’s approach to capital management during the financial
year. The Consolidated Entity is not subject to any externally imposed capital requirements.
26. EXPLORATION COMMITMENTS
The Consolidated Entity has certain obligations to perform minimum exploration work and expend
minimum amounts on works on mining tenements in order to retain its interests in these tenements,
which would be approximately $789,000 during the next 12 months (2020: $616,000). There are no
commitments beyond 12 months in relation to tenements. These obligations may be varied from
time to time, subject to approval and are expected to be fulfilled in the normal course of operations
of the entity.
27. KEY MANAGEMENT PERSONNEL DISCLOSURES
Key Management Personnel Compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated Entity
2020
$
2021
$
619,940
60,131
451,274
1,131,345
449,850
42,282
75,850
567,982
Information regarding key management personnel compensation is provided in the Remuneration
Report section of the Directors Report.
28. RELATED PARTY TRANSACTIONS
(a) Parent Entity and Ultimate Controlling Parent
Zenith Minerals Limited is the parent entity and ultimate controlling entity of the Group.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 32.
(c) Key Management Personnel
Disclosures relating to key management personnel are set out in Note 27.
(d) Transactions with Related Parties
The following transactions occurred with related parties during the financial year:
i)
Provision of Serviced Office – During the financial year ended 30 June 2021, there was fee
revenue of:
a. $7,745 (2020: $7,164) from Minasola Pty Ltd, a director related entity of Mr R M Joyce;
b. $7,745 (2020: $7,164) from Creekwood Nominees Pty Ltd, a director related entity of
Mr S A Macdonald;
c. $7,025 (2020: $7,164) from Satinbrook Pty Ltd, a director related entity of Mr G D Riley.
72
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
28. RELATED PARTY TRANSACTIONS (cont.)
(e) Outstanding balances arising from transactions with related parties
The following balances arising from transactions with related parties are outstanding as at 30
June 2021:
Current receivables:
Trade and other receivables
Current payables:
Accrued fees and employment expenses
Consolidated Entity
2021
$
2020
$
3,795
25,208
-
-
(f) There were no loans to or from related parties at the current and previous reporting date.
All transactions were made on normal commercial terms and conditions and at market rates.
29. SHARE BASED PAYMENTS
Employee Option Plan
The establishment of the Zenith Minerals Limited's Employee Option Plan was approved by Directors
resolution dated 27 February 2007. A current version of the Zenith Minerals Limited's Employee Option
Plan was approved by shareholders at the Annual General Meeting held on 24th November 2016 and three
years later on 20th November 2019.
The Board may offer free options to persons ("Eligible Persons") who are:
i)
full time, part time or casual employees, a contractor or an associated body corporate of the Company
who have accepted a written offer of engagement; or
ii) Directors of the company or any subsidiary based on a number of criteria including contribution to the
Consolidated Entity, period of employment, potential contribution to the Consolidated Entity in the future
and other factors the Board considers relevant.
Options granted under the plan carry no dividend or voting rights.
When exercisable, each option is convertible into one ordinary share, in any event no later than thirty days, after
the receipt of a properly executed notice of exercise and application monies. The Consolidated Entity will
issue to the option holder, the number of shares specified in that notice. The Consolidated Entity will apply
for official quotation of all shares issued and allotted pursuant to the exercise of the options.
Options may not be transferred other than to an associate of the holder.
Set out below is the summary of options granted under the plan:
2021:
Grant Date
Expiry Date Exercise
Price
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Number
Number
Number
Expired or
Forfeited
during the
year
Number
01 Dec 2020 14 May 2023
$0.1097
-
5,750,000
14 May 2020 14 May 2023
$0.1097 1,200,000
25 Nov 2019 24 Nov 2022
$0.087 3,950,000
28 Sep 2018 28 Sep 2021
$0.18
1,650,000
-
-
-
6,800,000
5,750,000
-
-
-
-
-
73
Balance at
end of the
year
Exercisable
at end of
the year
Number
Number
5,750,000
5,750,000
1,200,000
1,200,000
3,950,000
3,950,000
1,650,000
1,650,000
-
-
-
-
- 12,550,000 12,550,000
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
29. SHARE BASED PAYMENTS (cont.)
Employee Option Plan (cont.)
2020:
Grant Date
Expiry Date Exercise
Price
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Number
Number
Number
Expired or
Forfeited
during the
year
Number
14 May 2020 14 May 2023
$0.1097
25 Nov 2019 24 Nov 2022
$0.087
-
-
1,200,000
3,950,000
28 Sep 2018 28 Sep 2021
$0.18
1,650,000
29 Nov 2016 29 Nov 2019
$0.161
2,500,000
-
-
4,150,000
5,150,000
-
-
-
-
-
Balance at
end of the
year
Exercisable
at end of
the year
Number
Number
1,200,000
1,200,000
3,950,000
3,950,000
1,650,000
1,650,000
-
-
-
(2,500,000)*
-
-
(2,500,000) 6,800,000
6,800,000
* 2,500,000 $0.161 unlisted options expired on 29 November 2019. These had a fair value of $0.05179 each.
Zenith Minerals Limited
Outstanding at the beginning of the period
Exercised during the period
Granted during the period
Forfeited during the period
Lapsed during the period
Outstanding at end of the period
Weighted
average
exercise
price
2021
$0.11
-
Number of
Options
2021
6,800,000
-
Weighted
average
exercise
Price
2020
$0.17
-
Number of
options
2020
4,150,000
-
$0.1097
5,750,000
$0.092
5,150,000
-
-
-
-
-
-
$0.161
(2,500,000)
$0.11
$0.11
6,800,000
6,800,000
Exercisable at the end of the period
$0.11
12,550,000
For the options granted during the 2021 financial year, the valuation model inputs used in the Black-
Scholes Model to determine the fair value at the grant date, are as follows:
2021:
Grant date
Expiry date
01 Dec 2020
14 May 2023
2020:
Grant date
Expiry date
25 Nov 2019
24 Nov 2022
14 May 2020 14 May 2023
Share
price at
grant
date
$0.130
Share
price at
grant
date
$0.055
$0.085
Exercise
price
Expected
volatility
Dividend
yield
$0.1097
100.00%
-
Exercise
price
Expected
volatility
Dividend
yield
$0.087
$0.1097
50.55%
206.16%
-
-
Risk-
free
interest
rate
0.25%
Risk-
free
interest
rate
0.69%
0.26%
Fair value
at grant
date
$0.078483
Fair value
at grant
date
$0.011358
$0.077874
The expected price volatility is based on the historical volatility (based on the remaining life of the
options), adjusted for any expected changes to future volatility due to public available information.
Total expense recognised as share-based payments for the 2021 financial year was $451,276 (2020:
$138,313).
In July 2020 the Consolidated Entity issued 4,000,000 options to brokers in connection with the capital
raising. These options were valued using a Black-Scholes valuation and the capital raising costs recognised
in full in the consolidated statement of changes in equity at their grant dates is $392,984.
74
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
29. SHARE BASED PAYMENTS (cont.)
Employee Option Plan (cont.)
The valuation model inputs used in the Black-Scholes Model to determine the fair value at the grant
date, are as follows:
Grant date
Expiry date
13 July 2020
13 July 2020
31 December
2023
31 December
2023
Share
price at
grant
date
Exercise
price
Expected
volatility
Dividend
yield
$0.105
$0.16
100.00%
-
-
Risk-
free
interest
rate
Fair value
at grant
date
0.25%
$0.060156
$0.105
$0.14
100.00%
0.25%
$0.062771
The weighted average remaining contractual life of share options outstanding at the end of the year was
1.8 years (2020: 2.2 years).
The weighted average exercise price during the financial year was $0.12 (2020: $0.11).
30. RECONCILIATION OF PROFIT/(LOSS) BEFORE INCOME TAX EXPENSE TO NET
CASH USED IN OPERATING ACTIVITIES
Profit/(Loss) for the year
Add:
Non-cash items
Share of losses of Associate accounted for using equity method
Net fair value (gain)/loss on other financial assets
Exploration expenditure written off
Impairment loss on exploration & evaluation expenditure
Impairment of investment in associate
Depreciation and amortisation
Depreciation of right of use asset
Interest on unwinding of lease liabilities
Plant and equipment written off
Foreign exchange (gain)/loss
Share based payment
Profit on sale of discontinued operations
Profit on disposal of party equity investment in associate
Profit on sale of tenements
Profit on part disposal of right-of-use asset
Changes in operating liabilities:
Decrease/(Increase) in trade and other receivables
Decrease/(Increase) in other assets
Decrease/(Increase) in exploration expenditure capitalised
Decrease/(Increase) in right of use asset
Increase/(Decrease) in trade and other payables
Increase/(Decrease) in provision for income tax
Increase/(Decrease) in provisions
Increase/(Decrease) in lease liabilities
Net cash (used in) operating activities
Consolidated Entity
2020
2021
$
$
2,010,141
(383,397)
3,950
(3,063,086)
-
-
428,636
7,587
12,668
1,073
-
-
451,276
(1,214,849)
(159,776)
(94,411)
(2,370)
2,604
-
(2,850,435)
-
113,058
-
(29,163)
-
(4,383,098)
9,135
(259,772)
336,467
21,027
-
31,030
-
-
561
(22,856)
138,313
3,496
(107,123)
(328,091)
-
(106,524)
(105)
(1,159,412)
(37,730)
(40,881)
88,147
4,758
113,633
(1,699,324)
(a) Non-cash investing and financing activities.
During 2021, there were no non-cash investing and financing activities to disclose other than those in Note 29.
75
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
31. SUBSEQUENT EVENTS
Completion of a capital raising announced to the Australian Securities Exchange (‘ASX’) on 7th July 2021,
resulted in the issue of 27,906,977 ordinary shares at $0.215 per share for $6 million before cost. Funds raised
will be used to accelerate an active exploration program at Zenith’s core projects, being the Develin Creek VMS
Copper Project, Red Mountain Gold Project and the Split Rocks Gold Project.
On 16 July 2021, the Company announced the issue of 750,000 options exercisable at $0.379 expiring 14 July
2024, as incentive options to various employee.
On 20 July 2021, the Company announced the admission of trading of Bradda Head Lithium Ltd on the AIM of
the London Stock Exchange. Zenith owns 43,947,507 shares in Bradda Head, valued at $6.4 million as at the
date of this report.
On 24 September 2021, the Company has completed Stage 1 investment of $140k into Oxley Resources
Limited (refer ASX announcement dated 13 May 2021).
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted
the Consolidated Entity up to date, it is not practicable to estimate the potential impact, positive or negative,
after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the
Australian Government and other countries, such as maintaining social distancing requirements, quarantine,
travel restrictions and any economic stimulus that may be provided.
No other matter or material event has arisen since 30 June 2021, which has significantly affected or may
significantly affect the Consolidated Entity’s operations, the results of those operations, or the Consolidated
Entity’s future state of affairs.
3 2 . S U B S I D I A R I E S
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly
owned subsidiaries in accordance with the accounting policy described in note 3.
Name
Nanutarra Minerals Pty Ltd
Earaheedy Minerals Pty Ltd
S2M2 Coal Pty Ltd
Kalicoal Pty Ltd
Mamucoal Pty Ltd
S2M2 Eastern Coal Pty Ltd
BlackDragon Energy (Aus) Pty Ltd
Zacatecas Minerals Pty Ltd
Fossil Prospecting Pty Ltd
Caldera Metals Pty Ltd
Wyoming Rare Pty Ltd
Wyoming Rare (USA) Inc. (1)
Principal place of
business/country of
incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
USA
Ownership interest
2021
%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
2020
%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
The Consolidated Entity is incorporated in Australia and its principal activity is exploration.
(1) Wyoming Rare (USA) Inc. was incorporated in Wyoming on 1st August 2019 and disposed in June 2021.
76
NOTES TO THE FINANCIAL STATEMENTS
Zenith Minerals Limited
33. PARENT ENTITY DISCLOSURES
As at and throughout the financial year ended 30 June 2021, the parent entity of the Group was Zenith
Minerals Limited.
Result of Parent Entity:
Profit (loss) for the period
Other comprehensive income (loss)
Total Comprehensive Income (loss) for the period
Financial Position of Parent Entity at Year End:
Current assets
Total Assets
Current liabilities
Total Liabilities
Total Equity of the Parent Entity Comprising of:
Share capital
Reserves
Retained earnings/(losses)
2021
$
1,816,656
-
1,816,656
2020
$
(723,856)
-
(723,856)
6,585,958
12,399,739
1,717,759
5,208,285
340,675
340,675
219,105
219,105
26,543,440
1,053,133
(15,537,509)
22,134,472
208,873
(17,354,165)
12,059,064
4,989,180
The Parent Entity has no guarantees at 30 June 2021 (2020:Nil)
Contingent Assets and Liabilities
There are no contingent assets and liabilities at reporting date (2020: Nil) other than what is disclosed in Note
36.
34. DIVIDENDS
No dividends have been paid or provided for.
35. CONTINGENT ASSETS AND LIABILITIES
On 23 June 2021 the Consolidated Entity signed a binding heads of agreement with an unrelated unlisted
public company Bindi Metals Limited (Bindi) for the sale of the non-core Flanagans copper-gold tenement
in Queensland for $450,000.
The sale is conditional on the successful listing via an initial public offering (IPO) of Bindi on the Australian
Securities Exchange (ASX) before 31 December 2021 and other regulatory approvals. Upon completion
Zenith will receive $200,000 cash and IPO shares valued at $250,000.
There are no other contingent assets and liabilities at reporting date (2020: Nil).
77
DIRECTORS’ DECLARATION
Zenith Minerals Limited
1.
In the opinion of the directors of Zenith Minerals Limited:
(a)
the Financial Statements and notes thereto, are in accordance with the Corporations Act 2001,
including:
i) giving a true and fair view of the Consolidated Entity's financial position as at 30 June 2021 and
Remuneration Report marked as audited, and its performance for the financial year ended on
that date; and
ii) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements;
(b)
(c)
the Financial Report also complies with International Financial Reporting Standards as issued
by the International Accounting Standards Board as disclosed in note 2(a);
there are reasonable grounds to believe that the Company and the Consolidated Entity will be able
to pay its debts as and when they become due and payable.
2. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to s.295(5) (a) of the Corporations Act
2001.
On behalf of the Directors
Mr P J BIRD
Executive Chairman
Dated: 28 September 2021
PERTH, WA
78
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ZENITH MINERALS LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Zenith Minerals Limited (the company), which
comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes comprising a summary of significant
accounting policies and other explanatory information, and the directors’ declaration of the company and the
consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time
during the financial year.
In our opinion the accompanying financial report of Zenith Minerals Limited is in accordance with the
Corporations Act 2001, including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or
inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
79
PKF Perth
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 year. 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 audit opinion
on these matters. For each matter below, our description of how our audit addressed these matters are
provided in that context.
1. Valuation of Capitalised Exploration Expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2021 the carrying value of exploration
and evaluation assets was $6,714,651
(2020:
$3,993,265), as disclosed in Note 18 This represents
50% of total assets of the consolidated entity, after an
impairment of capitalised exploration expenditure of
$443,758 had been recorded.
The consolidated entity’s accounting policies in respect
of:
•
•
its use of estimates and judgements in exploration
and evaluation expenditure is outlined in Note 2
(d), and;
recognition of exploration and evaluation
expenditure is outline in Note 3
Significant judgement is required:
•
•
in determining whether facts and circumstances
indicate that the exploration and evaluation assets
should be tested for impairment in accordance
with Australian Accounting Standard AASB 6
Exploration
for and Evaluation of Mineral
Resources (“AASB 6”); and
in determining the treatment of exploration and
evaluation expenditure in accordance with AASB
6, and the consolidated entity’s accounting policy.
In particular:
o whether the particular areas of interest meet
the recognition conditions for an asset; and
o which elements of exploration and evaluation
expenditures qualify for capitalisation for each
area of interest.
Our work included, but was not limited to, the following
procedures:
conducting a detailed review of management’s
assessment of impairment trigger events prepared in
accordance with AASB 6 including:
o
assessing whether the rights to tenure of the
areas of interest remained current at reporting
date as well as confirming that rights to tenure
are expected to be renewed for tenements that
will expire in the near future;
holding discussions with the directors and
management as to the status of ongoing
exploration programmes
the areas of
interest, as well as assessing if there was
evidence that a decision had been made to
discontinue activities in any specific areas of
interest; and
obtaining and assessing evidence of
the
consolidated entity’s future intention for the
areas of interest, including reviewing future
budgeted expenditure and
related work
programmes.
for
o
o
considering whether exploration activities for the
areas of interest had reached a stage where a
reasonable assessment of economically recoverable
reserves existed;
testing, on a sample basis, exploration and evaluation
expenditure incurred during the year for compliance
with AASB 6 and the consolidated entity’s accounting
policy; and
reviewing the impairment calculations provided and
related assumptions and disclosures in Note 3 and 18
for accuracy and completeness.
•
•
•
•
80
PKF Perth
2. Valuation of Interest in Associate
Why significant
How our audit addressed the key audit matter
The consolidated entity has a 20% interest in an
associate, Kavak Madencilik, which is a for-profit joint
venture established for mineral exploration activities in
Turkey. As at 30 June 2021, the value of the investment
in the consolidated entity is $nil (2020: $348,055), after
an impairment of $428,634 had been recorded as
detailed in Note 16.
The consolidated entity’s accounting policy in respect of
joint ventures is outlined in Note 3.
The estimates and judgements in relation to the
valuation of the capitalised exploration and evaluation
expenditure have a significant
impact on Kavak
Madencilik’s position and performance, which affects
in Kavak
the consolidated entity’s
Madencilik and its share of the loss recognised in the
Consolidated Statement of Profit or Loss and Other
Comprehensive Income totalling $3,950 (2020: $9,135)
as detailed in Note 16.
investment
Our work included, but was not limited to, the following
procedures:
•
considering the control relationship to confirm that
equity accounting is appropriate;
addressing the capitalisation of exploration costs in
for and
accordance with AASB 6 Exploration
Evaluation of Mineral Resources; and
addressing the potential impact of the impairment
triggers within AASB 6.
reviewing the foreign exchange translation of the
movements within the investment during the year, to
confirm that it is reasonable and in accordance with
AASB 121 The Effect of Changes in Foreign
Exchange Rates;
reviewing the calculation of the part disposal of the
interest in associate reducing its interest from 23% to
20%, to ensure that this was in accordance with
AASB 128 Investments in Associates and Joint
Ventures; and
reviewing the impairment calculations provided and
related assumptions and disclosures in Notes 3 and
16 for accuracy and completeness.
•
•
•
•
•
Other Information
Those charged with governance are responsible for the other information. The other information comprises
the information included in the consolidated entity’s annual report for the year ended 30 June 2021, 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, with the exception of the Remuneration Report.
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.
Directors’ Responsibilities 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.
81
PKF Perth
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using a going
concern basis of accounting unless the Directors either intend to liquidate the consolidated entity 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 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 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 consolidated entity’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 consolidated entity’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 consolidated entity 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.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the group financial report. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
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, actions taken to eliminate threats
or safeguards applied.
82
PKF Perth
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
We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Zenith Minerals Limited for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SIMON FERMANIS
AUDIT PARTNER
28 SEPTEMBER 2021
WEST PERTH
WESTERN AUSTRALIA
83
Zenith Minerals Limited
CORPORATE GOVERNANCE STATEMENT
Zenith Minerals Limited and its subsidiaries (‘Group’) Corporate Governance Statement outlines the main
corporate governance practices of Zenith Minerals Limited and its subsidiaries (‘Group’) in place throughout the
financial year ended 30 June 2021, which comply with the 3rd Edition of the Australian Securities Exchange
(‘ASX’) Corporate Governance Principles and Recommendations of the ASX Corporate Governance Council,
unless otherwise stated.
The Group’s Corporate Governance Statement for the financial year ending 30 June 2021 is current as at 28th
September 2021 and has been approved by the Board of Directors of Zenith Minerals Limited.
The Corporate Governance Statement
https://www.zenithminerals.com.au/corporate-governance-policies/.
is available on
the Zenith Minerals Limited website at
The company’s ASX Appendix 4G, which is a checklist that cross-references the ASX Principles and
Recommendations to the relevant disclosures in either this statement, the Annual Report or the company website,
is contained in the website at www.zenithminerals.com.au.
84
ADDITIONAL SHAREHOLDERS INFORMATION
Zenith Minerals Limited
In Compliance with ASX Requirements
The shareholder information set out below was applicable as at 13 September 2021.
1.
DISTRIBUTION OF EQUITY SECURITIES
a) Analysis of numbers of shareholders by size of holding – ordinary fully paid shares (ZNC)
Holding Ranges
Holders
Total Units
0 up to and including 1,000
1,000 up to and including 5,000
5,000 up to and including 10,000
10,000 up to and including 100,000
> 100,000
Totals
% Issued
Share
Capital
0.05%
0.46%
0.76%
9.43%
451
569
296
835
288
162,180
1,496,572
2,437,783
30,402,669
287,767,803
89.29%
2,439
322,267,007
100.00%
b) Number of shareholders holding less than a marketable parcel – 640 (at 13 September 2021).
2.
PARTICULARS OF TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest holders of quoted shares are listed below:
Shareholder Shares Issued
1 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
2 CITICORP NOMINEES PTY LIMITED
3 BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
4 MS NADA GRANICH
5 MS SUZI QUELI MIQUILINI
6 GDR PTY LTD
7 ABINGDON NOMINEES PTY LTD
8 CUSTODIAL SERVICES LIMITED
9 BREAMLEA PTY LTD
10 MR AUSTIN SYDNEY EVAN MILLER
11 YANDAL INVESTMENTS PTY LTD
12 TINTERN (VIC) PTY LTD
13 STRUVEN NOMINEES PTY LTD
14 MR JOHN BEVAN TILBROOK & MRS PAULINE TILBROOK & MR
JOHN EDWIN TILBROOK
15 EQUITY TRUSTEES LIMITED
16 ABINGDON NOMINEES PTY LTD
17 MR JOHN BEVAN TILBROOK
18 MR STANLEY ALLAN MACDONALD
19 GREENHILL ROAD INVESTMENTS PTY LTD
20 COBALT CONSULTING PTY LTD
Fully Paid Ordinary
Shares
Number held % of total
32,127,367
24,816,300
17,784,806
12,083,404
9,858,001
9,000,000
7,446,353
7,029,043
6,826,364
6,279,171
5,588,417
4,028,228
3,647,834
3,301,014
2,994,051
2,931,976
2,731,355
2,725,602
2,583,000
2,452,286
9.97%
7.70%
5.52%
3.75%
3.06%
2.79%
2.31%
2.18%
2.12%
1.95%
1.73%
1.25%
1.13%
1.02%
0.93%
0.91%
0.85%
0.85%
0.80%
0.76%
TOTAL FOR TOP 20:
166,234,572
51.58%
85
ADDITIONAL SHAREHOLDERS INFORMATION
Zenith Minerals Limited
3 .
V O T I N G R I G H T S
Ordinary Shares: At general meetings of the Company, each member entitled to vote may vote in person
or by proxy or attorney or representative. On a show of hands every person who is a member or a
representative of a member has one vote, and on a poll every person present in person or by proxy or
attorney has one vote for each share held.
Options: No voting rights
4.
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders in the Company are:
Ordinary Shares
HSBC CUSTODY NOMINEES (AUSTRALIA) LTD
CITICORP NOMINEES PTY LIMITED
Number
held
32,127,367
24,816,300
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
17,784,806
% Interest
9.97%
7.70%
5.52%
5.
UNQ UOT E D E Q UIT Y S E CUR IT IE S
The following unquoted options are on issue:
Number on
Issue
Number of
Holders
Options issued under the Company’s Employee Option Plan to take up
ordinary shares:
-
-
-
-
Exercisable at 18 cents each by 28 September 2021
Exercisable at 8.87 cents each by 24 November 2022
Exercisable at 10.97 cents each by 14 May 2023
Exercisable at 37.9 cents each by 14 July 2024
1,650,000(1)
3,950,000(2)
6,950,000(3)
750,000(4)
Unlisted options exercisable at 14 cents expiring 31 December 2023
Unlisted options exercisable at 16 cents expiring 31 December 2023
2,000,000(5)
2,000,000(6)
4
4
8
4
1
1
(1) Persons holding 20% or more:
M J Clifford
M J Nelmes
(2) Persons holding 20% or more:
M J Clifford
(3) Persons holding 20% or more:-
M J Clifford
(4) Persons holding 20% or more:-
A D’Hulst
P Snook
(5) Persons holding 20% or more:
C G Nominees (Australia) Pty Ltd
(6) Persons holding 20% or more:
C G Nominees (Australia) Pty Ltd
86
61%
21%
63%
29%
67%
20%
100%
100%
INTERESTS IN MINING TENEMENTS
Zenith Minerals Limited
INTERESTS IN MINING TENEMENTS
PROJECT
LOCATION
Earaheedy
Earaheedy
Earaheedy
Vivash Gorge
Develin Creek
Develin Creek
Flanagans
Red Mountain
Waratah Well
Waratah Well
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
Split Rocks
WA
WA
WA
WA
QLD
QLD
QLD
QLD
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
TENEMENT
NUMBER
E69/2733
E69/3414
R69/2
E47/3071
EPM16749
EPM17604
HOLDER
Zenith Minerals Limited
Zenith Minerals Limited
Zenith Minerals Limited
Zenith Minerals Limited
Kalicoal Pty Ltd
Kalicoal Pty Ltd
ZENITH
MINERALS
INTEREST
100%
100%
100%
100%
100%
100%
STATUS
Granted
Granted
Granted
Granted
Granted
Granted
EPM27487
Zenith Minerals Limited
100%
Granted
EPM26384 Black Dragon Energy (AUS) Pty Ltd
100%
Granted
E59/2170 Black Dragon Energy (AUS) Pty Ltd
E59/2321 Black Dragon Energy (AUS) Pty Ltd
E77/2375 Black Dragon Energy (AUS) Pty Ltd
E77/2394 Black Dragon Energy (AUS) Pty Ltd
E77/2395 Black Dragon Energy (AUS) Pty Ltd
E77/2386 Black Dragon Energy (AUS) Pty Ltd
E77/2388 Black Dragon Energy (AUS) Pty Ltd
E77/2453 Black Dragon Energy (AUS) Pty Ltd
E77/2454 Black Dragon Energy (AUS) Pty Ltd
E77/2455 Black Dragon Energy (AUS) Pty Ltd
E77/2456 Black Dragon Energy (AUS) Pty Ltd
E77/2457 Black Dragon Energy (AUS) Pty Ltd
E77/2513 Black Dragon Energy (AUS) Pty Ltd
E77/2514 Black Dragon Energy (AUS) Pty Ltd
E77/2515 Black Dragon Energy (AUS) Pty Ltd
E77/2598 Black Dragon Energy (AUS) Pty Ltd
E77/2616 Black Dragon Energy (AUS) Pty Ltd
P77/4506 Black Dragon Energy (AUS) Pty Ltd
P77/4507 Black Dragon Energy (AUS) Pty Ltd
P74/379 Black Dragon Energy (AUS) Pty Ltd
E74/634 Black Dragon Energy (AUS) Pty Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Split Rocks-Dulcie
WA
P77/4102
RR & Assoc & Highscore PL
# 100% below
6m subject to
option
agreement &
royalty
Split Rocks-Dulcie
Split Rocks-Dulcie
Split Rocks-Dulcie
Split Rocks-Dulcie
Split Rocks-Dulcie
Split Rocks-Dulcie
Split Rocks-Dulcie
Split Rocks-Dulcie
Split Rocks-Dulcie
WA
WA
WA
WA
WA
WA
WA
WA
WA
M77/1250
RR & Assoc & Highscore PL
As above
L77/226
RR & Assoc & Highscore PL
As above
P77/4368
RR & Assoc & Highscore PL
As above
L77/256
L77/244
RR & Assoc & Highscore PL
As above
RR & Assoc & Highscore PL
As above
M77/1267
RR & Assoc & Highscore PL
As above
M77/1246
RR & Assoc & Highscore PL
As above
P77/4032
RR & Assoc & Highscore PL
As above
M77/581
RR & Assoc & Highscore PL
As above
87
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
INTERESTS IN MINING TENEMENTS
Zenith Minerals Limited
PROJECT
LOCATION
TENEMENT
NUMBER
HOLDER
ZENITH
MINERALS
INTEREST
STATUS
Kavaklitepe
Turkey
EL20079861
Empire International
AnadoluMadencilikAnonim
Sirketi
~20%
Granted
# Refer to ASX Release dated 21st March 2019
88