REG - Greatland Gold PLC - Final Results
11/11/2021 07:00
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RNS Number : 0714S Greatland Gold PLC 11 November 2021
11 November 2021
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Greatland Gold plc
("Greatland", "the Group" or "the Company")
Final Results
Greatland Gold plc (AIM:GGP), the precious and base metals exploration and
development company, announces its financial results for the year ended 30
June 2021.
Chairman's Statement
I am pleased to report on the Company's audited results for the year ended 30
June 2021.
It has been another year of considerable progress for Greatland Gold plc
("Company") and the consolidated group ("Greatland" or the "Group"), which has
seen its evolution from a junior explorer to a mining development and
exploration company. We achieved several significant milestones at our
flagship asset Havieron including commencing construction and surface
infrastructure activities, taking major steps towards bringing a tier-one gold
copper mine into production.
Such has been the pace of development at Havieron, that during the financial
year Greatland entered into a new landmark joint venture agreement with
Australia's largest gold producer Newcrest Mining Limited (Newcrest, ASX:
NCM). This partnership with a tier-one, experienced operator in this region
has enabled greater investment in Havieron and an extensive programme of
growth drilling which furthered our understanding in the deposit and
accelerated its development. In December 2020, we announced a maiden
resource of 3.4Moz Au and 160Kt Cu, the first of many graduating studies into
the size of Havieron. Subsequent to the year end in October 2021, Greatland
was awarded the winner of the 2021 Commodity Discovery Fund award for its
Havieron discovery.
The Havieron gold-copper discovery is a world class deposit and continues to
deliver excellent results with significant intercepts of high-grade gold and
copper outside of the existing resource shell. With over 200,000 metres of
drilling now completed, the equivalent distance of London to Sheffield we have
significantly enhanced our understanding of the deposit and of the likelihood
of continuing to upgrade to the Mineral Resource Estimate in the near-term.
Subsequent to the year end, a Pre-Feasibility study was released on an initial
segment of the Havieron deposit which has detailed a development pathway to
first gold produced and operating cashflow. The study revealed the tip of
the Havieron iceberg with a fraction of the initial resource supporting the
total capex of the project, justifying a fast start approach to early cashflow
generation and reinvesting back into Havieron development and
infrastructure. This supports our belief that the profile of Havieron makes
it a globally unique opportunity for bringing a low risk, low capex tier-one
gold-copper mine into production.
Capitalising upon the success at Havieron, Greatland also entered into a
second joint venture with Newcrest during the year in the prospective Paterson
region. The Juri Joint Venture for the Paterson Range East and Black Hills
licences represents an affirmation of Greatland's belief in the potential of
these areas, maximising the long-term strategic value of these licences.
Subsequent to year end Greatland completed the maiden drill programme at Juri
and announced intercepting gold mineralisation from the initial four assayed
holes, including first gold identified at the Goliath prospect.
The rapid progress seen at Havieron has not lessened our appetite for
exploration and new discoveries and we are excited by several other prospects
that display similar geophysical characteristics to the Havieron gold-copper
deposit, particularly in the Paterson region where Greatland has an expanded
strategic footprint. Key developments for the year across Greatland's
portfolio of exploration projects are detailed in the Strategic Report, but I
would like to briefly note some further highlights.
Exploration portfolio
At Scallywag, adjacent to the Havieron project, exploration work consisted of
airborne Electro-Magnetic (EM) surveying, target identification and drilling.
The 2021 Scallywag drill programme is currently underway designed to test a
series of airborne EM anomalies identified in the 2020 survey and three new
targets identified through ongoing geological interpretation.
During the year and post period, Greatland expanded its strategic footprint in
the Paterson to over 1,000 square kilometres through the acquisition of the
Canning and Rudall exploration licence applications, which contains similar
magnetic anomalies to the Havieron deposit, and by acquiring additional
tenements in the Paterson South region.
At the Panorama tenement, a 362 line km heliborne electromagnetic and magnetic
survey over part of the tenements was undertaken and at Ernest Giles, our land
holdings increased as Greatland applied for two additional exploration
licences, Mount Smith and Welstead, contiguous to the current live licences of
Peterswald and Calanchini.
During the year, a retrospective adjustment has been made to reflect a change
in accounting policy of exploration and evaluation expenditure. Note 1.19
within the financial statements provides further details regarding the change
in accounting policy.
In addition, the Group transferred £17,091,622 of capitalised exploration
costs associated with the Havieron project from intangible assets to mine
development during the year following the commencement of the construction of
the box cut and the decline during the year.
Corporate
Greatland successfully transitioned the leadership and management of the Group
to Shaun Day as Chief Executive Officer and Executive Director in February
2021. Shaun has extensive industry experience and the required skillset to
maximise Havieron and lead Greatland into the future as a development and
mining company. Since his appointment, Shaun has focussed on broadening the
capability of the management and technical teams to meet the evolving needs of
the Group.
A number of subsequent high quality, new appointments with Otto Richter
appointed as Group Mining Engineer, Christopher Toon as Chief Financial
Officer and John McIntyre as Exploration Manager has demonstrated Greatland's
growing reputation as a business in the industry and desire to work with a
world class asset. This evolution continued post period with the establishment
of the Technical Advisory Committee and appointment as a Non-Executive
Director of Paul Hallam, an industry veteran with more than four decades of
Australian and international resource experience. We are grateful to both
Gervaise Heddle, our former Chief Executive Officer, and Callum Baxter who has
joined our Technical Advisory Committee, who stepped down from the Board on 12
March 2021 and 31 August 2021 respectively, for their significant contribution
to the development of the Group.
In May 2021, we appointed Canaccord Genuity as Corporate Brokers and Financial
Advisers to complement Berenberg, Hannam & Partners and SI Capital as we
continue to expand our institutional investor base in line with the growth of
the Company.
The Company is well positioned to fund its portfolio of projects well into the
next financial year. For the Havieron project, Greatland entered into a
US$50m loan facility during the year with Newcrest to keep pace with an
accelerated development timetable up to project Feasibility. For the Juri
Joint Venture, Greatland has benefited from Newcrest initially funding the
exploration campaign freeing up cash reserves for our own exploration plans in
the Paterson region and across our other projects.
Greatland is committed to safe, responsible and sustainable exploration and we
continue to focus on improving health and safety training and processes, and
on further strengthening our relationships with the indigenous communities in
the areas that we operate as well as on our Environmental, Social and
Governance (ESG) focus for developing a responsible and sustainable resources
company.
Greatland benefits from operating in a tier one jurisdiction in the state of
Western Australia. The remote location, coupled with health protocols and
tight border controls has resulted into minimal impact of COVID-19 on
operations, as the total number of community cases recorded across the entire
state is less than 15 for the year. At Havieron, Newcrest have implemented and
maintained measures to reduce and mitigate the risk of the COVID-19 pandemic
to its project workforce and key stakeholders, and operations have continued
without interruption.
Nevertheless, I would like to reiterate that the health and safety of our
staff, partners and stakeholders has always been of paramount importance to
the board and it is even more so in our focus now.
Looking ahead
Greatland today is a different looking company to a year ago, as demonstrated
by the rapid change and accelerated development progress at our flagship
Havieron asset. There is lots to do and whilst our success at Havieron
provides an exceptional foundation and cornerstone project on which to build,
we are not resting on this. In addition, we have several other excellent
prospects, including an enviable footprint in the Paterson region, arguably
one of the most attractive frontiers in the world for the discovery of
tier-one, gold-copper deposits.
The transformation of Greatland over the past few years has been remarkable
and we are now in the strongest position we have ever been to capitalise upon
our recent success. We remain committed to increasing value for our
shareholders and we look forward to continuing along this exciting journey.
On a macro level, a mix of tailwinds and challenges endure for gold prices.
Support exists due to the uncertainty in global markets from ongoing COVID-19
and uneven economic recovery with continuing central bank stimulus and higher
rates of inflation. We also believe the gold price will be further supported
by supply challenges, as major new gold discoveries in safe jurisdictions are
becoming less frequent and as reserves at larger deposits are depleted.
I would like to end by thanking my fellow Board members, the management team
and our staff, for their hard work and commitment to the Company. The
progress we have taken over the past year is a credit to our management team
and their strategy. Finally, I would like to thank all our shareholders for
their continued support and feedback. We are working tirelessly to ensure
Greatland is maximising shareholder value and we expect that the current year
will be at least as successful as this last one has been.
Alex Borrelli
Chairman
Strategic Report
Principal activities, strategy and business model
The principal activity of the Group is to explore for and develop precious and
base metals with a focus on gold and copper. The Board seeks to increase
shareholder value by advancing the development of current projects, the
systematic exploration of its existing resource assets, and by acquiring
exploration and development opportunities in underexplored areas.
The Group's strategy and business model is developed by the Chief Executive
Office and is approved by the Board. The Executive Directors who report to the
Board are responsible for implementing the strategy and managing the business
with the management team.
The Group's strategy is to develop the Havieron asset, advance projects that
have potential for the discovery of large mineralised systems (typically
considered in excess of ten million ounces of gold) and pursue opportunities
for in-organic growth with a view to safely and sustainably creating wealth
for the benefit of all stakeholders.
Business development and performance
The financial year ended 30 June 2021 was a transformational period for the
Company. During this period Greatland successfully advanced development and
exploration across its portfolio of project assets with significant milestones
achieved at the Group's flagship asset, the world-class Havieron gold-copper
deposit in the Paterson region of Western Australia.
After the granting of a mining licence at Havieron (M45/4701) on 9 Oct 2020,
Greatland entered into a Joint Venture with Newcrest Mining Limited over this
12 block area for the continued development and expansion of this asset.
Infill and step out drilling during the year has continued to return excellent
results demonstrating continuity of high-grade mineralisation at Havieron with
expansion of the mineralisation in the North West Crescent and Northern
Breccia, Eastern Breccia, South East Crest and Breccia areas. This resulted in
a maiden resource of 4.2m oz Au eq announced on 10 Dec 2020.
In Feb 2021, construction activities commenced at Havieron with the quick
completion of the box cut and portal to enable the start of the decline in May
2021.
Subsequent to year end, a Pre-Feasibility study was completed and announced on
12 Oct 2021 which outlined the pathway to achieve commercial production within
two to three years from commencement of an exploration decline, subject to a
positive decision to mine
In addition to the Havieron project, the Group also entered into a JV with
Newcrest on two other Paterson licences, Black Hills and Paterson Range East,
known as the Juri JV, which sees the Group operate exploration on the licences
over the next two years. Newcrest earned a 25% interest on both areas on
signing with a right to earn up to 75% interest by spending up to A$20m as
part of a two-stage farm-in over five years, including a A$3m minimum
commitment for Stage 1.
The Group's financial position was further strengthened during the year by a
loan agreement with Newcrest where the Group have access to a loan facility
totalling US$50million for early works and growth drilling at Havieron from
the start of the joint venture and up to the Feasibility study. A further
£4.4m on the exercise of warrants and options was received by the Group
throughout the year. The Group's cash deposits stood at £6,212,057 at 30 June
2021 (compared to £6,022,745 at 30 June 2020). These funds will be used to
accelerate exploration across our key exploration projects, particularly in
the Paterson region.
During the year, a retrospective adjustment has been made to the carrying
values to reflect a change in accounting policy of exploration and evaluation
expenditure.
Previously costs associated with an exploration activity were capitalised if,
in management's opinion, the results from that activity led to a material
increase in the market value of the exploration asset.
Under the new policy exploration and evaluation expenditure where the
commercial viability of extracting the mineral resource has not yet been
established will be expensed when incurred . Once management believe the
commercial viability of extracting the mineral resource are demonstrable,
which is considered to be following a pre-feasability study or similar, the
Group will capitalise any further evaluation costs incurred.
This has resulted in costs associated with the Havieron being capitalised
from 1 July 2020, with all prior year exploration and evaluation expenditure
expensed when incurred on the basis the commercial viability of extracting the
mineral resource was not yet established. The Group transferred £17,091,622
of capitalised exploration costs associated with the Havieron project from
intangible assets to mine development during the year following the
commencement of the construction of the box cut and the decline during the
year. Note 1.19 within the financial statements provides further details
regarding the change in accounting policy.
Review of key developments by project
Paterson project (Western Australia), one granted mining licence (Havieron)
jointly owned by Newcrest Mining who have a 60% stake. Three granted
exploration licences; two (Black Hills, Paterson Range East) 75% owned in JV
with Newcrest who own the remaining 25%, one (Scallywag) 100% owned,
exploration licence applications (Rudall, Canning) 100% owned. Subsequent to
year end, ownership in two exploration licences (Black Hills and Paterson
Range East) moved to 49% owned in JV with Newcrest. Acquisition of licence
areas from Province Resources in September 2021 added two new licences,
Pascalle and Taunton and two licence applications in the Paterson South
area.
The Paterson project is located in the Paterson region of northern Western
Australia. The licences collectively cover more than 567 square kilometres of
ground which is considered prospective for intrusion related gold-copper
systems and Telfer style gold deposits along with the Havieron gold-copper
resource.
During the 12 months to 30 June 2021, the Company together with JV partner
Newcrest was granted a mining licence M45/4701 Havieron (9 Oct 2020) under a
21 year term, which covers the 12 blocks of the previous E45/4701 licence.
The company now retains 100% ownership of the remaining blocks of E45/4701
Scallywag. During the 12 months to 30 June 2021 the Company applied for a
further four exploration licences E45/5826 Canning, E45/5929 Salvation Well
North, E45/5930 Salvation Well, E45/5931 Salvation Well South East in the
Canning area of the Paterson region.
Newcrest expanded the drill campaign at Havieron M45/4701 and continued with
infill and step-out drilling with very successful results. Newcrest released
an Inferred Resource for a portion of the Crescent Sulphide Zone and adjacent
breccias, reporting a 4.2m oz Au equivalent resource.
Exploration work over the Scallywag licence E45/4701 consisted of airborne EM
surveying, target identification and drilling.
Exploration continued on the Black Hills licence E45/4512 and Paterson Range
East E45/4928, with the completion of airborne EM surveys and the
identification of a series of targets that warrant drilling in the FY 2022
exploration program.
All exploration costs, other than those related to the Havieron project, were
expensed through the statement of comprehensive income during the year on the
basis the commercial viability of extracting the mineral resource was not yet
established.
Ernest Giles project (Western Australia), 100% owned
The Ernest Giles project is located in central Western Australia, covering an
area of approximately 1950 square kilometres with around 180km of strike of
rocks prospective for gold. The eastern Yilgarn Craton is one of the most
highly mineralised areas in Western Australia and is considered prospective
for large gold deposits.
During the period, Greatland carried out solid geology interpretation and
litho-geochemical interpretation of the 2017 and 2019 drilling, with
lithogeochemistry used to identify significant alteration and pathfinder
patterns at the Meadows target area. The Company was also involved in ongoing
Native Title land access agreement negotiations.
A comprehensive review of all data for the Ernest Giles project was carried
out later in the year. The Board decided that Greatland should increase its
land holdings in the region and applied for two additional exploration
licences, E38/3612 Mount Smith and E38/3613 Welstead contiguous to the current
live licences of Peterswald and Calanchini.
Panorama project (Western Australia), 100% owned
The Panorama project consists of three adjoining exploration licences,
covering 157 square kilometres, located in the Pilbara region of Western
Australia, in an area that is considered to be highly prospective for gold and
cobalt.
During the period Greatland continued field exploration at Panorama with a 362
line km heliborne electromagnetic and magnetic survey over part of the
tenements. Processing and interpretation of data is currently underway.
Bromus project (Western Australia), 100% owned
The Bromus project is located 25 kilometres south-west of Norseman in the
southern Yilgarn region of Western Australia. The Bromus project consists of
two licences, covering 87 square kilometres of under-explored greenstone and
intrusive granites of the Archean Yilgarn Block at the southern end of the
Kalgoorlie-Norseman belt.
During the period, Greatland undertook a desktop prospectivity review aimed at
collating work done which resulted in resampling historic RC chip, soil
sampling, and Minalyze analysis of historic diamond drill core.
Firetower project (Tasmania), 100% owned
The Firetower project is located in central north Tasmania, Australia and
covers an area of 62 square kilometers. During the year the Company completed
a review of the Firetower Project exploration data, identifying structures
potentially controlling the gold mineralisation, and potential down plunge
positions that warrant follow up drilling.
Warrentinna project (Tasmania), 100% owned
The Warrentinna project is located 60 kilometres north-east of Launceston in
north-eastern Tasmania and covers an area of 37 square kilometres with 15
kilometres of strike prospective for gold. During the period Greatland
undertook a review of the Warrentinna Project exploration data and
rehabilitation of old drill pads.
Further details regarding developments by project can be found on the
Company's website at: www.greatlandgold.com (http://www.greatlandgold.com)
Main trends and factors likely to impact future business performance
The Board considers the following to be the key trends and factors that are
likely to impact future business performance:
· General commodity cycle - Commodity prices, base and precious metals
and gold specifically, have seen a marked improvement over the last year. The
Board maintains a positive outlook for commodity prices, and the gold price in
particular.
· Project development - the Company's partnership with a major mining
company (Newcrest Mining) on its flagship Havieron project has seen a rapid
advancement of the project. The pace of the development will be laid out by
Newcrest Mining as lead partners with Greatland closely involved in
discussions. Specific business principles designed to maximise the Company's
chances of long-term rewards from this project are highlighted in the
following section ("Principal risks and uncertainties").
· Exploration results - Management's ability to successfully execute
Greatland's exploration strategy is a key factor in the future business
performance of the Company. Specific business principles designed to maximize
the Company's chances of long term success in this regard are highlighted in
the following section ("Principal risks and uncertainties").
Principal risks and uncertainties
Management of the business and the execution of the Board's strategy are
subject to a number of key risks and uncertainties:
· Mineral exploration - Inherent with mineral exploration is that there
is no guarantee that the Company can identify a mineral resource that can be
extracted economically. In order to minimise this risk and to maximise the
Company's chance of long-term success, we are committed to the following
strategic business principles:
· The board regularly reviews our exploration and development
programmes and allocates capital in a manner that it believes will maximise
risk-adjusted return on capital.
· We apply advanced exploration techniques to areas and regions that we
believe are relatively under-explored historically.
· Exploration work in conducted on a systematic basis. More
specifically, exploration work is carried out in a phased, results-based
fashion and leverages a wide range of exploration methods including modern
geochemical and geophysical techniques and various drilling methods.
· We focus our activities on jurisdictions that we believe represent
low political and operational risk. Moreover, we strongly prefer to operate in
jurisdictions where our team has considerable on the ground experience. At the
present time, all of the Company's projects are in Australia, a country with
established mining codes, stable government, skilled labour force, excellent
infrastructure and a well established mining industry.
· Commodity price risk - The principal commodities that are the focus
on our exploration and development efforts (precious metals and base metals
specifically gold and copper) are subject to highly cyclical patterns in
global demand and supply, and consequently, the price of those commodities can
be highly volatile.
· Recruiting and retaining highly skilled directors and employees - the
Company's ability to execute its strategy is highly dependent on the skills
and abilities of its people. We undertake ongoing initiatives to foster good
staff engagement and ensure that remuneration packages are competitive in the
market.
· Occupational health and safety - every Director and employee of the
Company is committed to promoting and maintaining a safe workplace
environment, including adopting COVID safe work practices. The Company
regularly reviews occupational health and safety policies and compliance with
those policies. The Company also engages with external occupational health and
safety expert consultants to ensure that policies and procedures are
appropriate as the Company expands its activity levels.
· COVID-19 - The COVID-19 Coronavirus pandemic has caused a severe
adverse effect on the business environment on a global scale. The Group may be
affected by disruptions to its operations, particularly for the foreseeable
future in light of government responses to the spread of COVID-19 or other
potential pandemics. The Board is aware of the various risks that the pandemic
presents that include but are not limited to financial, operational, staff and
community health and safety, logistical challenges and government regulation.
At present the Group believes that there should be no significant material
disruption to its operations in the near term, but the Board continues to
monitor these risks and the Group's business continuity plans.
· Havieron Joint Venture - The potential future development of a mine
at the Havieron Joint Venture depends upon a number of factors, including but
not limited to, results from geotechnical, metallurgical and environmental
studies, the grant of necessary permits and other regulatory approvals and the
ability to secure finance.
Directors' statement under section 172 (1) of the Companies Act 2006
Section 172 (1) of the Companies Act obliges the Directors to promote the
success of the Company for the benefit of the Company's members as a whole.
This section specifies that the Directors must act in good faith when
promoting the success of the Company and in doing so have regard (amongst
other things) to:
1. the likely consequences of any decision in the long term,
2. the interests of the Company's employees,
3. the need to foster the Company's business relationship with
suppliers, customers and others,
4. the impact of the Company's operations on the community and
environment,
5. the desirability of the Company maintaining a reputation for high
standards of business conduct, and
6. the need to act fairly as between members of the Company.
The application of the Section 172 (1) requirements can be demonstrated in
relation to some of the key decisions made during the financial year,
including:
· entering into new debt funding to ensure the Group has adequate
resources to finance Greatland's share of the Havieron joint venture during
mine development up until the Feasibility study,
· executing a series of agreements to provide a formal framework for the
joint venture arrangement and to facilitate the acceleration of early works
and further future development and exploration activities at Havieron,
· entered into a farm-in and joint venture agreement to accelerate
exploration at Greatland's Black Hills and Paterson Range East licences
without the need for the Company to self fund this activity,
· committed to ongoing exploration campaigns and approved associated
budgets that enabled the Company to conduct exploration across its projects,
· worked with joint venture partner to make decisions around the
development of Havieron including applying for the necessary regulatory
approvals to commence early works activities for a box cut and exploration
decline and subsequent to year end the delivery of a pre-feasibility study,
· appointment of an additional corporate broker to expand the reach of
potential investors in as part of equity investment activities, and;
· expanding the organisational capability through hiring experienced
personnel and establishing a technical advisory committee to enhance the
skills and experience required for the Company as it progresses from an
explorer, through development and into production
The Directors believe they have acted in the way they consider most likely to
promote the success of the Company for the benefit of its members as a whole,
as required by Section 172 (1) of the Companies Act 2006.
Greatland has chosen to adhere to the Quoted Company Alliance's ("QCA")
Corporate Governance Code for Small and Mid-Size Quoted Companies (revised in
April 2018 to meet the new requirements of AIM Rule 26). At this time, the
Board believes that it is compliant with all ten Principles of the QCA Code.
Shaun Day
Chief Executive Officer
Enquiries:
Greatland Gold PLC +44 (0)20 3709 4900
Shaun Day info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated Adviser) +44 (0)20 3368 3550
Andrew Emmott/James Keeshan
Berenberg (Joint Corporate Broker and Financial Adviser) +44 (0)20 3207 7800
Matthew Armitt/ Varun Talwar/Alamgir Ahmed/Detlir Elezi
Canaccord Genuity (Joint Corporate Broker and Financial Adviser) +44 (0)20 7523 8000
James Asensio/Patrick Dolaghan
Hannam & Partners (Joint Corporate Broker and Financial Adviser) +44 (0)20 7907 8500
Andrew Chubb/Matt Hasson/Jay Ashfield
SI Capital Limited (Joint Broker) +44 (0)14 8341 3500
Nick Emerson/Alan Gunn
Luther Pendragon (Media and Investor Relations) +44 (0)20 7618 9100
Harry Chathli/Alexis Gore/Joe Quinlan
Notes for Editors:
Greatland Gold plc (AIM:GGP) is a leading mining development and exploration
company with a focus on precious and base metals. The Company's flagship asset
is the world-class Havieron gold-copper deposit in the Paterson region of
Western Australia, discovered by Greatland and presently under development in
Joint Venture with Newcrest Mining Ltd.
Havieron is located approximately 45km east of Newcrest's Telfer gold mine
and, subject to positive decision to mine, will leverage the existing
infrastructure and processing plant to significantly reduce the project's
capital expenditure and carbon impact for a low-cost pathway to development.
An extensive growth drilling programme is presently underway at Havieron with
a maiden Pre-Feasibility Study released on the South-East crescent on 12
October 2021. Construction of the box cut and decline to develop the Havieron
deposit commenced in February 2021.
Greatland has a proven track record of discovery and exploration success. It
is pursuing the next generation of tier-one mineral deposits by applying
advanced exploration techniques in under-explored regions. The Company is
focused on safe, low-risk jurisdictions and is strategically positioned in the
highly prospective Paterson region. Greatland has a total six projects across
Australia with a focus on becoming a multi-commodity mining company of
significant scale.
Group statement of comprehensive income
for the year ended 30 June 2021
Notes Year ended Year ended
30 June 2021 30 June 2020
£ £
Revenue - -
Exploration costs (3,470,443) (3,460,185)
Administrative expenses (2,204,441) (1,697,801)
Impairment cost - (38,376)
Operating loss (5,674,884) (5,196,362)
Other income 365,645 55,438
Foreign exchange loss (193,976) -
Finance income 3 982 17,663
Finance costs 3 (17,415) (21,734)
Loss before taxation (5,519,648) (5,144,995)
Income tax expense 5 - -
Loss for the year (5,519,648) (5,144,995)
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translation of foreign operations
(48,735) 234,860
Other comprehensive income for the year net of taxation (48,735) 234,860
Total comprehensive income for the year attributable to equity holders of the (5,568,383) (4,910,135)
parent company
Earnings per share - basic and diluted 9 (0.14) pence (0.14) pence
All operations are considered to be continuing.
The accompanying notes form part of these financial statements.
Group statement of financial position
as at 30 June 2021
Note 30 June 2021 30 June 2020 1 July 2019
£ (Restated) £* (Restated) £*
ASSETS
Non-current assets
Tangible assets 10 120,356 132,061 103,114
Mine development 11 17,091,622 -
-
Right of use asset 13 341,912 414,616 -
17,553,890 546,677 103,114
Current assets
Cash and cash equivalents 21 6,212,057 6,022,745 2,755,998
Trade and other receivables 15 78,198 23,865 26,376
Prepayments 154,215 55,211 51,104
Total current assets 6,444,470 6,101,821 2,833,478
TOTAL ASSETS 23,998,360 6,648,498 2,936,592
LIABILITIES
Current liabilities
Payables and other liabilities 18 (3,513,512) (932,759) (630,369)
Total current liabilities (3,513,512) (932,759) (630,369)
Non-current liabilities
Borrowings 17 (12,189,790) - -
Provisions 16 (3,813,372) - -
Payables and other liabilities 18 (326,793) (390,718) -
Total non-current liabilities (16,329,955) (390,718) -
TOTAL LIABILITIES (19,843,467) (1,323,477) (630,369)
NET ASSETS 4,154,893 5,325,021 2,306,223
EQUITY
Share capital
19 3,947,270 3,760,207 3,323,420
Share premium
24,064,307 19,878,782 12,554,173
Share based payment reserve
20 177,592 372,953 349,606
Retained earnings (24,388,861) (19,090,241) (14,089,436)
Other reserves 354,585 403,320 168,460
TOTAL EQUITY 4,154,893 5,325,021 2,306,223
-
Right of use asset
13
341,912
414,616
-
17,553,890
546,677
103,114
Current assets
Cash and cash equivalents
Trade and other receivables
21
15
6,212,057
78,198
6,022,745
23,865
2,755,998
26,376
Prepayments
154,215
55,211
51,104
Total current assets
6,444,470
6,101,821
2,833,478
TOTAL ASSETS
23,998,360
6,648,498
2,936,592
LIABILITIES
Current liabilities
Payables and other liabilities
18
(3,513,512)
(932,759)
(630,369)
Total current liabilities
(3,513,512)
(932,759)
(630,369)
Non-current liabilities
Borrowings
17
(12,189,790)
-
-
Provisions
16
(3,813,372)
-
-
Payables and other liabilities
18
(326,793)
(390,718)
-
Total non-current liabilities
(16,329,955)
(390,718)
-
TOTAL LIABILITIES
(19,843,467)
(1,323,477)
(630,369)
NET ASSETS
4,154,893
5,325,021
2,306,223
EQUITY
Share capital
Share premium
Share based payment reserve
19
20
3,947,270
24,064,307
177,592
3,760,207
19,878,782
372,953
3,323,420
12,554,173
349,606
Retained earnings
(24,388,861)
(19,090,241)
(14,089,436)
Other reserves
354,585
403,320
168,460
TOTAL EQUITY
4,154,893
5,325,021
2,306,223
Group statement of changes in equity
for the year ended 30 June 2021
Share capital Share premium Share based payment reserve Retained earnings Other reserves Total
£ £ £ £ £ £
As at 30 June 2019 3,323,420 12,554,173 349,606 (12,072,653) 168,460 4,323,006
Change in accounting policy (2,016,783) (2,016,783)
Restated as at 30 June 2019 3,323,420 12,554,173 349,606 (14,089,436) 168,460 2,306,223
Loss for the year - - - (5,144,995) - (5,144,995)
Adjustment from the adoption of IFRS 16 - - - 13,045 - 13,045
Currency translation differences - - - - 234,860 234,860
Total comprehensive income - - - (5,131,950) 234,860 (4,897,090)
Share option charge - - 154,492 - - 154,492
Transfer on exercise of options and warrants - - (131,145) 131,145 - -
Share capital issued 436,787 7,543,487 - - - 7,980,274
Cost of share issue - (218,878) - - - (218,878)
Total contributions by and distributions to owners of the Company 436,787 7,324,609 23,347 131,145 - 7,915,888
As at 30 June 2020 (restated)* 3,760,207 19,878,782 372,953 (19,090,241) 403,320 5,325,021
Loss for the year - - - (5,519,648) - (5,519,648)
Currency translation differences - - - - (48,735) (48,735)
Total comprehensive income - - - (5,519,648) (48,735) (5,568,383)
Share option charge - - 25,667 - - 25,667
Transfer on exercise of options and warrants - - (221,028) 221,028 - -
Share capital issued 187,063 4,185,525 - - - 4,372,588
Cost of share issue - - - - - -
Total contributions by and distributions to owners of the Company 187,063 4,185,525 (195,361) 221,028 - 4,398,255
As at 30 June 2021 3,947,270 24,064,307 177,592 (24,388,861) 354,585 4,154,893
The accompanying notes for part of these financial statements.
*See note 1.19 for details of the restatement as a result of change in accounting policy.
Note: In the previous year the Group adopted IFRS 16 and applied the modified retrospective approach. The cumulative effect of adoption is recognised as an adjustment to retained earnings.
Other reserves Merger reserve Foreign currency translation reserve Total other reserves
£ £ £
As at 30 June 2019 225,000 (56,540) 168,460
Currency translation differences - 234,860 234,860
Total comprehensive income - 234,860 234,860
As at 30 June 2020 225,000 178,320 403,320
Currency translation differences - (48,735) (48,735)
Total comprehensive income - (48,735) (48,735)
As at 30 June 2021 225,000 129,585 354,585
The following describes the nature and purpose of each reserve within equity:
Share capital: Nominal value of shares issued
Share premium: Amount subscribed for share capital in excess of nominal value, less share issue costs
Share based payment reserve: Cumulative fair value of options granted
Retained losses: Cumulative net gains and losses, recognised in the statement of comprehensive income
Merger reserve: The merger reserve was created in accordance with the merger relief provisions of the Companies Act 1985 (as amended), and 2006, relating to accounting for business combinations involving the issue of shares at a premium. In preparing group consolidated financial statements, the amount by which the fair value of the shares issued exceeded their nominal value was recorded within a merger reserve on consolidation, rather than in a share premium account.
Foreign currency reserve: Gains/losses arising on translation of foreign controlled entities into pounds sterling.
Group statement of cash flows
for the year ended 30 June 2021
Notes Year ended Year ended
30 June 2021 30 June 2020
£ £
Cash flows from operating activities
Loss before taxation (5,519,648) (5,183,317)
Increase in trade & other receivables (54,333) (1,596)
Increase in payables & other liabilities 2,417,822 293,450
Depreciation 175,884 67,396
Amortisation 64,946 65,230
Impairment - 38,376
Share option charge 25,668 154,492
Foreign exchange loss 193,976 -
Net decrease in cash and cash equivalents from operating activities (2,695,685) (4,565,969)
Cash flows from investing activities
Interest received 982 2,163
Interest payable (17,415) (21,734)
Payments to acquire intangible assets - 9,640
Payments to acquire tangible assets (13,554,108) (95,624)
Net cash outflows used in investing activities (13,570,541) (105,555)
Cash flows from financing activities
Proceeds from issue of shares 4,372,588 7,980,274
Transaction costs of issue of shares - (218,878)
Proceeds on borrowings 12,189,790 -
Other income - 55,438
Repayment of lease liabilities (63,925) (67,877)
Net cash inflows from financing activities 16,498,453 7,748,957
Net increase in cash and cash equivalents 21 232,227 3,077,433
Cash and cash equivalents at the beginning of period 6,022,745 2,755,998
Exchange (loss) / gain on cash and cash equivalents (42,915) 189,314
Cash and cash equivalents at end of period 21 6,212,057 6,022,745
The accompanying notes form part of these financial statements.
Notes to financial statements
for the year ended 30 June 2021
1 Principal accounting policies
1.1 Authorisation of financial statements and statement of compliance with IFRS
The group financial statements of Greatland Gold plc for the year ended 30
June 2021 were authorised for issue by the board on 11 November 2021 and the
statement of financial position signed on the board's behalf by Mr Shaun Day
and Mr Alex Borrelli. Greatland Gold plc is a public limited company
incorporated and domiciled in England and Wales. The Company's ordinary shares
are traded on AIM.
The principal accounting policies adopted by the Group and Company are set out
below.
New standards, amendments and interpretations adopted by the Group
There are no IASB and IFRIC standards that have been issued with an effective
date after the date of the financial statements which are expected to have a
material impact on the Group.
New and amended Standards and Interpretations issued but not effective
At the date of approval of these financial statements, the following standards
and interpretations which have not been applied in these financial statements
were in issue but not yet effective (and in some cases had not been adopted by
the UK):
- Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current - effective 1 January
2023*
- Amendments to IFRS 3: Business Combinations - Reference to the
Conceptual Framework - effective 1 January 2022*
- Amendments to IAS 16: Property, Plant & Equipment - effective 1
January 2022*
- Amendments to IAS 37: Provisions, Contingent Liabilities and
Contingent Assets - effective 1 January 2022*
- Annual Improvements to IFRS Standards 2018-2020 Cycle - effective 1
January 2022*
- Amendments to IAS 1: Presentation of Financial Statements and IFRS
Practice Statement 2: Disclosure of Accounting Policies - effective 1 January
2023*
- Amendments to IAS 8: Accounting policies, Changes in Accounting
Estimates and Errors - Definition of Accounting Estimates - effective 1
January 2023*
- Amendments to IFRS 16: Leases - Covid-19-Related Rent Concessions
beyond 30 June 2021 - effective 1 April 2021
- Amendments to IAS 12: Income Taxes - Deferred Tax related to Assets
and Liabilities arising from a Single Transaction - effective 1 January 2023*
*subject to UK endorsement
The new and amended Standards and Interpretations which are in issue but not
yet mandatorily effective is not expected to be material.
1.2 Significant accounting judgments, estimates and assumptions
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined
based on estimates and assumptions of future events. The key estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of certain assets and liabilities within the next annual
reporting period are:
Rehabilitation provision (Note 16)
The Group assesses its rehabilitation, restoration and dismantling
(rehabilitation) provision at each reporting date. Significant estimates and
assumptions are made in determining the provision as there are numerous
factors that will affect the ultimate amount payable. These factors include
estimates of the extent, timing and costs of rehabilitation activities,
technological changes, regulatory changes, cost increases as compared to the
inflation rates, and changes in discount rates. These uncertainties may result
in future actual expenditure differing from the amounts currently provided.
The provision at reporting date represents management's best estimate of the
present value of the future rehabilitation costs. The rehabilitation estimate
is based on the Pre-Feasibility study. The discount rate used in the
calculation of the provision is 4.5%. At this stage the rehabilitation costs
are expected to be incurred up to 2033.
Impairment of mine development (Note 11)
The recoverable amount of mine development is dependent on the successful
development and commercial exploration, or alternatively, sale of the
respective area of interest. The Group's estimate of the Ore Reserve that can
be economically and legally extracted. The Group estimates its Ore Reserve and
Mineral Resource based on information compiled by appropriately qualified
persons relating to the geological data on the size, depth and shape of the
ore body, and requires complex geological judgments to interpret the data. The
estimation of Ore Reserves is based on factors such as estimates of foreign
exchange rates, commodity prices, future capital requirements, and production
costs along with geological assumptions and judgments made in estimating the
size and grade of the ore body and removal of waste material. Management have
determined the mine development asset to be recoverable based on the
Pre-Feasibility Study released on the company's website on 21 October 2021.
Changes in these estimates may impact upon the carrying value of mine
properties, property, plant and equipment, and provision for rehabilitation.
Impairment of loan due from subsidiary (Note 15)
The Company holds a loan due from a 100% owned subsidiary, Greatland Pty Ltd.
Greatland Pty Ltd holds the Group's interest in the Havieron Joint Venture.
The recoverable amount of the loan is dependent on the successful development
and commercial exploration of the Havieron Joint Venture, or alternatively,
sale of the respective area of interest. Management have concluded the loan
will be recoverable on this basis.
Share-based payment transactions (Note 20)
The Group measures the cost of equity-settled transactions with 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 and
a 40% discount is applied to that value due to the recent volatility of the
share price over the valuation period.
1.3 Basis of preparation
The Group's financial statements have been prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006 and in accordance with the requirements of the Companies
Act 2006.
The consolidated financial statements have been prepared on the historical
cost basis, except for the measurement to fair value of assets and financial
instruments as described in the accounting policies below, and on a going
concern basis.
The amounts presented in the consolidated financial statements are rounded to
the nearest £1.
During the year, the group made the decision to voluntarily change its
accounting policy in respect of Exploration assets. Refer to Note 1.19 for
more details on the change.
Going Concern
The consolidated entity has incurred a loss before tax of £5,519,648 for the
year ended 30 June 2021 and had a net cash outflow of £16,266,226 from
operating and investing activities. At that date there were net current assets
of £2,930,958. The loss resulted almost entirely from exploration costs and
associated administrative related costs.
The Group's cash flow forecast for the period ending 30 November 2022
highlights adequate funding of projected expenditure to last into 2022 with
the Group having access to a loan facility for its share of Havieron Joint
Venture expenditure up to US$50 million and is being able to significantly
reduce expenditure on its own exploration programs if it wishes to do so.
The Group also has the ability to raise capital for expansion purposes, if
required and the Group has demonstrated a consistent ability to do so in the
past, as well as potential to debt fund its share of Havieron development.
Albeit the Board considers that, in a worst case scenario, the Group can
continue without a capital raising.
Given the Group's current positive cash position, the Directors have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future.
For these reasons, they continue to adopt the going concern basis in preparing
the annual report and accounts.
Having prepared forecasts based on current resources, assessing methods of
obtaining additional finance and assessing the possible impact of COVID-19,
the Directors believe the Group has sufficient resources to meet its
obligations for a period of 12 months from the date of approval of these
financial statements. Taking these matters into consideration, the Directors
continue to adopt the going concern basis of accounting in the preparation of
the financial statements. The financial statements do not include the
adjustments that would be required should the going concern basis of
preparation no longer be appropriate
1.4 Basis of consolidation
The consolidated accounts combine the accounts of the Company and its sole
subsidiary, Greatland Pty Ltd, using the purchase method of accounting.
In the Company's statement of financial position, the investment in Greatland
Pty Ltd includes the nominal value of shares issued together with the cash
element of the consideration. As required by the Companies Act 2006, no
premium was recognised on the share issue. The difference between nominal and
fair value of the shares issued was credited to the merger reserve.
Subsidiary undertakings are those entities controlled directly or indirectly
by the Company. The Company controls an investee when it 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 over the entity. The results
of the subsidiaries acquired are included in the Consolidated Statement of
Comprehensive Income from the date of acquisition using the same accounting
policies of those of the Group. The consideration transferred in a business
combination is the fair value at the acquisition date of the assets
transferred and the liabilities incurred by the Group and includes the fair
value of any contingent consideration arrangement. Acquisition-related costs
are recognised in the income statement as incurred. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair value at the acquisition
date.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies in line with those used by
other members of the Group.
All intra-group balances and transactions, including any unrealized income and
expenses arising from intragroup transactions, are eliminated in full in
preparing the consolidated financial statements. Unrealised gains arising from
transactions with equity accounted investees are eliminated against the
investment to the extent of the Group's interest in the investee. Unrealised
losses are eliminated in the same way as unrealized gains, but only to the
extent that there is no evidence of impairment.
1.5 Investment in subsidiaries
Investments in subsidiary companies are classified as non-current assets and
included in the statement of financial position of the Company at cost, less
provision for impairment at the date of acquisition irrespective of the
application of merger relief under the Companies Act.
1.6 Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash at bank and in
hand and short-term deposits with an original maturity of three months or
less.
For the purposes of the statement of cash flows, cash and cash equivalents
consist of cash and cash equivalents as defined above, net of outstanding bank
overdrafts.
1.7 Income tax and deferred taxation
Current tax assets and liabilities for the current and prior periods are
measured as the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantially enacted by the balance sheet date.
Full provision is made for deferred taxation resulting from timing differences
which have arisen but not reversed at the balance sheet date.
Deferred tax assets on carried forward losses are only recorded where it is
expected that future trading profits will be generated in which this asset can
be offset. The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset realised. Deferred tax is
charged or credited to profit or loss, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt
with in equity.
1.8 Tangible fixed assets
Exploration and evaluation and development assets
Exploration and evaluation and development assets includes pre-licence costs,
costs associated with exploring, investigating, examining and evaluating an
area of mineralisation, and assessing the technical feasibility and commercial
viability of extracting the mineral resource from that area. Other than
acquisition costs, exploration and evaluation expenditure incurred on licenses
where the commercial viability of extracting the mineral resource has not yet
been established is generally expensed when incurred. Once the commercial
viability of extracting the mineral resource are demonstrable (at which point,
the Group considers it probable that economic benefits will be realised), the
Group capitalises any further evaluation costs incurred. These costs are
classified as property plant and equipment. The recoverability of the
exploration and evaluation assets is dependent on the successful development
and commercial exploration, or alternatively, sale of the respective area of
interest.
Exploration and evaluation and development assets are assessed for impairment
if:
• insufficient data exists to determine commercial viability; or
• other facts and circumstances suggest that the carrying amount exceeds the
recoverable amount.
An exploration and evaluation asset will be reclassified to mine properties
when the technical feasibility and commercial viability of extracting a
mineral resource are demonstrable and a decision has been made to develop and
extract the resource. Exploration and evaluation assets shall be assessed for
impairment, and any impairment loss shall be recognised, before
reclassification to mine properties. No amortisation is charged during the
exploration and evaluation phase.
Rehabilitation provision
The present value of the expected cost for the decommissioning, restoration
and dismantling of an asset after its use is included in the cost of the
respective asset if the recognition criteria for a provision are met. Refer to
Provisions for further information about the recognised decommissioning
provision.
Plant and equipment
Plant and equipment including mine development are stated at historical cost,
less accumulated depreciation and accumulated impairment losses, if any.
Historical cost includes expenditure that is directly attributable to the
acquisition of the items and costs incurred in bringing the asset into use.
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item flow to the Group and the cost of
the item can be measured reliably. The carrying amount of the replaced part is
de-recognised. All other repairs and maintenance costs are recognised in the
income statement as incurred.
An item of property, plant and equipment and any significant part initially
recognised is derecognised upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in the
income statement when the asset is derecognised
Depreciation
The depreciation methods adopted by the Group are shown in table below:
· Mine properties: units of ore extracted basis over the life of mine
· Motor vehicles: straight line basis of 20% per annum
· Equipment: straight line basis of 7% per annum
· Leasehold improvements: straight line basis of 11% per annum
1.9 Capitalised borrowing costs
Borrowing costs directly attributable to the acquisition, construction or
production of assets that necessarily take a substantial period of time to
prepare for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their intended use
or sale.
All other borrowing costs are recognised in income in the period in which they
are incurred.
1.10 Right of use assets
At inception of a contract, the Company assesses if the contract contains or
is a lease. If there is a lease present, a right-of-use asset and a
corresponding lease liability is recognised by the company where the company
is a lessee. However, all contracts that are classified as short-term leases
(i.e. a lease with a remaining lease term of 12 months or less) and leases of
low-value assets are recognised as an operating expense on a straight line
basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease
payments still to be paid at commencement date. The lease payments are
discounted at the interest rate implicit in the lease. If the rate cannot be
readily determined, the company uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as
follows:
· Fixed lease payments less any lease incentives;
· Variable lease payments that depend on an index rate, initially
measured using the index rate of rate at the commencement date;
· The amount expected to be payable by the lessees under the residual
value guarantees;
· The exercise price of purchase options, if the lessee is reasonably
certain to exercise the options;
· Lease payments under extension options, if the lessee is reasonably
certain to exercise the options; and
· Payments of penalties for terminating the lease, if the lease term
reflects the exercise of an options.
The right-of-use assets comprise the initial measurement of the corresponding
lease liability as mentioned above, any to terminate the lease payments made
at or before the commencement date, as well as any initial direct costs. The
subsequent measurement of the right-of-use assets is at cost less accumulated
depreciation and impairment losses. Right-of-use assets are depreciated over
the lease term of useful life of the underlying asset, whichever is the
shortest. Where a lease transfers ownership of the underlying asset of the
cost of the right-of-use asset reflects that the company anticipates to
exercise a purchase option, the specific asset is depreciated over the useful
life of the underlying asset.
1.11 Foreign currencies
Both the functional and presentational currency of Greatland Gold plc is
sterling (£). Each group entity determines its own functional currency and
items included in the financial statements of each entity are measured using
that functional currency.
The functional currency of the foreign subsidiary, Greatland Pty Ltd, is
Australian Dollars (A$).
Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at the balance sheet
date. All differences are taken to the income statement.
On consolidation of a foreign operation, assets and liabilities are translated
at the balance sheet rates, income and expenses are translated at rates ruling
at the transaction date. Exchange differences on consolidation are taken to
the income statement.
1.12 Other income
During the year the Parent Company received a 'Small Business Grant' of
£10,000 from Westminster City Council, London. In the previous year Greatland
Pty Ltd received two 'Cash Boost' grants totalling A$100,000 (£55,438) from
the state government of Western Australia. These grants were provided to
support businesses during the COVID-19 pandemic. Government grants are
recognised only when there is reasonable assurance that the Group will comply
with the conditions attaching to the grant and that the grants will be
received. Capital grants are recognised to match the related development
expenditure and are deducted in arriving at the carrying value of the related
assets. Any grants that are received in advance of recognition are deferred.
During the year the Group received other income of A$611,050 (£336,356) in
respect of chargeable costs for its Juri loan (2020: £nil).
Previous years consisted of a grant from the state government of Western
Australia. Government grants are accounted for on a receipts basis.
1.13 Finance income
Finance income 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.
1.14 Trade and other receivables
Trade and other receivables are recognised initially at fair value and
subsequently measured at amortised cost using the effective interest method,
less any allowance for the expected future issue of credit notes and for
non-recoverability due to credit risk. The Group applies the IFRS 9 simplified
approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables and contract assets. To measure
expected credit losses, trade receivables and contract assets have been
grouped based on shared risk characteristics. No such credit loss has been
recorded in these financial statements as any effect would be immaterial.
1.15 Financial instruments
Financial assets and liabilities are recognized in the Group's Statement of
Financial Position when the Group becomes a party to the contracted provision
of the instrument. The following policies for financial instruments have been
applied in the preparation of the consolidated financial statements:
The Group and Company's financial assets which comprise loans and receivables
and other debtors are measured at amortised cost.
The classification depends on the business model for managing the financial
assets and the contractual terms of the cash flows. Financial assets are
classified as at amortised cost only if both of the following criteria are
met:
• the asset is held within a business model whose objective is to
collect contractual cash flows; and
• the contractual terms give rise to cash flows that are solely
payments of principal and interest
1.16 Trade and other payables
Trade payables and other payables are carried at amortised cost and represent
liabilities for goods and services provided to the Group prior to the end of
the financial year that are unpaid and arise when the Group becomes obliged to
make future payments in respect of the purchase of these goods and services.
1.17 Provisions
Employee benefits
Provision for employee entitlements include leave entitlements. These are
recognised when the Company has a legal or constructive obligation, as a
result of past events, for which it is probable that an outflow of economic
benefits will result and that outflow can be reliably measured.
Liabilities for wages and salaries, annual leave and any other employee
benefits are measured at the amounts expected to be paid when the liabilities
are settled.
Amounts expected to settle within twelve months are recognised in 'Current
Provisions' (for annual leave and salary at risk) and 'Trade and Other
Payables' (for all other employee benefits) in respect of employees' services
up to the reporting date. Costs incurred in relation to non-accumulating sick
leave are recognised when leave is taken and are measured at the rates paid or
payable.
The liability for long service leave and other long-term benefits is measured
at the present value of the estimated future cash outflows resulting from
employees' services provided up to the reporting date.
Rehabilitation, restoration and dismantling
The Group recognises a provision for the estimate of the future costs of
restoration activities on a discounted basis at the time of exploration or
mining disturbance. The nature of these restoration activities includes
dismantling and removing structures, rehabilitating mines, dismantling
operating facilities, closure of plant and waste sites, and restoration,
reclamation and re-vegetation of affected areas. When the liability is
initially recognised, the present value of the estimated costs is capitalised
by increasing the carrying amount of the related assets to the extent that it
was incurred by the development/construction of the asset.
Over time, the discounted liability is increased for the change in the present
value based on a discount rate that reflects current market assessments.
Additional disturbances or changes in rehabilitation costs will be recognised
as additions or changes to the corresponding asset and rehabilitation
liability when incurred. The unwinding of the effect of discounting the
provision is recorded as a finance cost in the statement of comprehensive
income. The carrying amount capitalised as a part of mining assets is
depreciated/amortised over the life of the related asset.
Rehabilitation and restoration obligations arising from the Group's
exploration activities are recognised immediately in the income statement. If
a change to the estimated provision results in an increase in the
rehabilitation liability and therefore an addition to the carrying value of
the related asset, the Group considers whether this is an indication of
impairment of the asset. If the revised assets, net of rehabilitation
provisions, exceed the recoverable amount, that portion of the increase to the
provision is charged directly to the statement of comprehensive income.
1.18 Earnings per share
Basic earnings per share is calculated as net profit attributable to members
of the parent, adjusted to exclude any costs of servicing equity (other than
dividends) and preference share dividends, divided by the weighted average
number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members
of the parent, adjusted for:
· costs of servicing equity (other than dividends) and preference
share dividends;
· the after tax effect of dividends and interest associated with
dilutive potential ordinary shares that have been recognised as expenses; and
· other non-discretionary changes in revenues or expenses during the
period that would result from the dilution of potential ordinary shares;
divided by the weighted average number of ordinary shares and dilutive
potential ordinary shares, adjusted for any bonus element.
1.19 Change in accounting policy adjustment - Exploration and development
expenditure
During the year, a retrospective adjustment has been made to the carrying
values to reflect a change in accounting policy of exploration and evaluation
expenditure. The change in accounting policy was made to align to industry and
peer companies. Previously costs associated with an exploration activity were
capitalised if, in management's opinion, the results from that activity led to
a material increase in the market value of the exploration asset which was
determined by management to be following the economic feasibility stage.
The new policy is as follows:
Exploration, evaluation and development assets includes pre-licence costs,
costs associated with exploring, investigating, examining and evaluating an
area of mineralisation, and assessing the technical feasibility and commercial
viability of extracting the mineral resource from that area. Other than
acquisition costs, exploration and evaluation expenditure incurred on licenses
where the commercial viability of extracting the mineral resource has not yet
been established is generally expensed when incurred. Once the commercial
viability of extracting the mineral resource are demonstrable (at which point,
the Group considers it probable that economic benefits will be realised), the
Group capitalises any further evaluation costs incurred. This probability is
assessed through a Pre-Feasbility study or similar. The recoverability of the
exploration and evaluation assets is dependent on the successful development
and commercial exploration, or alternatively, sale of the respective area of
interest.
Exploration, evaluation and development assets are assessed for impairment if:
• insufficient data exists to determine commercial viability; or
• other facts and circumstances suggest that the carrying amount exceeds the
recoverable amount.
An exploration and evaluation asset will be reclassified to mine properties
when the technical feasibility and commercial viability of extracting a
mineral resource are demonstrable and a decision has been made to develop and
extract the resource. Exploration and evaluation assets shall be assessed for
impairment, and any impairment loss shall be recognised before
reclassification to mine properties. No amortisation is charged during the
exploration and evaluation phase.
Impairment reviews are carried out regularly by the Directors of the Company.
Where a project is abandoned or is considered not to be of commercial value to
the Company, the related costs are written off or provisions are made.
The change in accounting policy affected the following items in the balance
sheet at 1 July 2020:
· Intangible assets - decrease by £1,989,363 (1 July 2019:
£2,016,783)
· Retained earnings - decrease by £1,989,363 (1 July 2019:
£2,016,783)
There was no impact to the statement of comprehensive income as a result of
the change in accounting policy, given there were no additions to Intangible
Assets in 2020. As a result, there was no change to the earnings per share
calculation.
1.20 Share based payments
The fair value of options granted to directors and others in respect of
services provided is recognised as an expense in the profit and loss account
with a corresponding increase in equity reserves - the share based payment
reserve.
On exercise or cancellation of share options, the proportion of the share
based payment reserve relevant to those options is transferred to the profit
and loss account reserve. On exercise, equity is also increased by the amount
of the proceeds received.
The fair value is measured at grant date and the charge is spread over the
relevant vesting period.
The fair value of options is calculated using the Black-Scholes model taking
into account the terms and conditions upon which the options were granted.
Vesting conditions are non-market and there are no market vesting conditions.
The exercise price is fixed at the date of grant and no compensation is due at
the date of grant.
1.21 Interest in joint operations
A joint operation is a joint arrangement whereby the parties of the
arrangement have rights to the assets, and obligations for the liabilities,
relating to the arrangement.
When the Group undertakes its activities under joint operations, the Group as
a joint operator recognises in relation to its interest in a joint operation:
· Its assets, including its share of any assets held jointly
· Its liabilities, including its share of any liabilities incurred
jointly
· Its revenue from the sale of its share of the output arising from
the joint operation
· Its share of the revenue from the sale of the output by the joint
operation
· Its expenses, including its share of any expenses incurred jointly.
The Havieron Project is operated under a Joint Venture Agreement between
Greatland Gold and Newcrest Mining Limited (Newcrest) entered into on 30
November 2020. The agreement provides a formal framework for the arrangements
between the two parties beyond the existing Farm-in Agreement, and facilitate
the expansion of exploration activities at Havieron and the acceleration of
early works, including the construction of a box-cut and decline.
As at 30 June 2021, Newcrest has now met the Stage 3 expenditure requirement
(US$45 million) resulting in an overall joint venture interest of 60%
(Greatland Gold 40%). Newcrest can earn up to a 70% joint venture interest
through total expenditure of US$65 million and the completion of a series of
exploration and development milestones (including the delivery of a
Pre-Feasibility Study) in a four-stage farm-in over a six year period that
commenced in May 2019.
The Joint Venture arrangement governs the joint venture ownership and
operations of the Havieron project in the area covered by Mining
Lease 45/1287 which includes the Havieron gold-copper deposit. The Joint
Venture Agreement includes tolling principles reflecting the intention of the
parties that, subject to a successful exploration program, Feasibility Study
and a positive decision to mine, the resulting joint venture mineralised
material will be processed at Newcrest's Telfer Gold Mine ("Telfer"), which
sits approximately 45km to the west of Havieron.
2 Segmental reporting
The Group's prime business segment is mining development and exploration of
precious and base metals.
The Group operates within two geographical segments, the United Kingdom and
Australia. The UK sector consists of the parent company which provides
administrative and management services to the subsidiary undertaking based in
Australia.
The aggregation of these two segments into a single United Kingdom business
unit reflects the way information is presented to the Chief Operating Decision
Maker, who is the Group's Chief Executive Officer.
The following tables present revenue and loss information and certain asset
and liability information by geographical segments:
UK Australia Total
Year ended 30 June 2021 £ £ £
Revenue
Total segment revenue - - -
Total consolidated revenue - - -
Result
Segment results (1,113,949) (4,754,911) (5,868,860)
Loss before tax and finance income/costs (1,113,949) (4,754,911) (5,868,860)
Interest receivable 20 962 982
Interest payable (6,100) (11,315) (17,415)
Other income 10,000 355,645 365,645
Loss before taxation (1,110,029) (4,409,619) (5,519,648)
Taxation expense - - -
Loss after taxation (1,110,029) (4,409,619) (5,519,648)
UK Australia Total
As at 30 June 2021 £ £ £
Assets and liabilities
Segment assets 5,359,105 18,639,255 23,998,360
Total assets 5,359,105 18,639,255 23,998,360
Segment liabilities (426,530) (19,416,936) (19,843,466)
Total liabilities (426,530) (19,416,936) (19,843,466)
Other segment information:
Capital expenditure - 17,270,525 17,270,525
Depreciation - 175,884 175,884
Amortisation 25,133 39,813 64,946
Impairment - - -
2 Segmental reporting, continued UK Australia Total
Year ended 30 June 2020 £ £ £
Revenue
Total segment revenue - - -
Total consolidated revenue - - -
Result
Segment results (1,061,048) (4,135,314) (5,196,362)
Loss before tax and finance costs (1,061,048) (4,135,314) (5,196,362)
Interest receivable 275 1,888 2,163
Interest payable 6,229 (12,463) (6,234)
Other income - 55,438 55,438
Loss before taxation (1,054,544) (4,090,451) (5,144,995)
Taxation expense - - -
Loss after taxation (1,054,544) (4,090,451) (5,144,995)
UK Australia Total
As at 30 June 2020 £ £ £
Assets and liabilities (restated)
Segment assets 4,374,330 2,274,168 6,648,498
Total assets 4,374,330 2,274,168 6,648,498
Segment liabilities (229,983) (1,093,494) (1,323,477)
Total liabilities (229,983) (1,093,494) (1,323,477)
Other segment information
Capital expenditure - 85,984 85,984
Depreciation - 67,396 67,396
Amortisation 25,133 40,097 65,230
Impairment - 38,376 38,376
3 Net finance costs 2021 2020
£
£
Finance income 982 17,663
Finance costs
(21,734)
(17,415)
(16,433) (4,071)
Expenses by Nature
2020
4 2021
£
£
Loss on ordinary activities before taxation is stated after charging:
Auditors' remuneration - audit
Depreciation 40,600 17,000
Amortisation
Impairment charge 175,884 67,396
Directors' emoluments 64,946 65,230
- 38,376
1,368,925 1,089,226
Services provided by the Company's auditor and its associates
During the period, the Group (including overseas subsidiaries) obtained the
following services from the Company's auditors and its associates:
2020
2021
£
£
Fees payable to the Company's auditor and its associates for the audit of the 40,600 17,000
Company and Group Financial Statements
Auditors' remuneration for audit services above excludes AU$11,750 (2020:
AU$9,950) charged by Charles Foti Business Services (Australia) relating to
the audit of the subsidiary company.
5 Taxation
2021 2020
Analysis of charge in year £ £
Deferred tax - -
Current tax
-
-
Tax on profit on ordinary activities - -
Factors affecting tax charge for year
The tax assessed on the loss on ordinary activities for the period differs
from the standard rate of corporation tax in the UK of 19% (2020: 19%) and
Australia of 26%. The differences are explained below:
2021 2020
£ £
Loss on ordinary activities before tax (5,519,648) (5,144,995)
Loss multiplied by weighted average applicable rate of tax (1,241,921) (1,196,211)
Effects of:
Expenses not deductible for tax:
Share option charge 5,775 35,920
Tax losses on which no deferred tax asset is recognised 1,236,146 1,160,291
Income tax expense - -
The weighted average applicable tax rate of 22.50% (2020: 23.25%) used is a
combination of the standard rate of corporation tax rate for entities in the
United Kingdom of 19% (2020: 19%), and 26.0% (2020: 27.5%) in Australia.
No deferred tax asset has been recognised because there is insufficient
evidence of the timing of suitable future profits against which they can be
recovered.
Losses carried forward:
Brought forward losses 30 June 2020 17,073,458 12,072,653
Currency exchange movements (221,029) -
Prior year adjustment 1,989,363 -
Current year losses 5,519,648 5,000,805
Losses carried forward 30 June 2021 24,361,440 17,073,458
6 Employee information 2021 2020
Employee costs comprised:
£
£
Wages and salaries 1,696,082 949,721
Bonus 338,068 611,854
Pension/superannuation 169,723 147,345
Share option charge 25,668 154,492
2,229,541 1,863,412
Number Number
Exploration 15 6
Administration
2
2
Of the total employee costs in the year, £772,804 (2020: £669,759) arises
from work on the Exploration Properties and has been expensed to the statement
of comprehensive income as exploration costs. Refer to Note 8 for details of
the Directors' emoluments.
7 Dividends
No dividends were paid or proposed by the Directors. (2020: £Nil)
8 Directors' emoluments 2021 2020
£ £
Directors' remuneration 1,348,676 997,511
Share option charge 20,249 91,715
1,368,925 1,089,226
Directors' salary Pension Bonus Share Based Payments Total
2021 £ £ £ £ £
Executive directors
Callum Baxter
320,721
Gervaise Heddle
40,020 100,540 3,901 465,182
(resigned 12 March 2021) 348,790
Shaun Day
29,194 - 3,901 381,885
(appointed 15 December 2020)
Non-executive directors
Alex Borrelli
Clive Latcham
191,760
28,031 103,305 11,797 334,893
52,500
1,315 52,500 - 106,315
40,000
- 40,000 650 80,650
953,771 98,560 296,345 20,249 1,368,925
Of the total Directors' emoluments disclosed above in the statement of
comprehensive income, 75% (or £348,887) for Callum Baxter and 25% (or
£259,968) for Gervaise Heddle and Shaun Day has been allocated to exploration
costs in the statement of comprehensive income for the year. Directors'
remuneration and bonus relates to short term employee benefits. Pension /
superannuation payments relate to long term employee benefits.
Share based payments reflect the Black Scholes value of share options granted
during the year. See Note 20.Also, see Note 25 for related party transactions.
Directors' salary Pension Bonus Share Based Payments Total
2020 £ £ £ £ £
Executive directors
Callum Baxter
185,024
Gervaise Heddle
44,278 205,121 30,015 464,438
Non-executive directors 185,024
Alex Borrelli
44,278 205,121 30,015 464,438
Clive Latcham
43,750
1,165 25,000 3,159 73,074
33,750
- 25,000 28,526 87,276
447,548 89,721 460,242 91,715 1,089,226
Of the total Directors' emoluments disclosed above in the statement of
comprehensive income, 75% (or £348,329) for Callum Baxter and 25% (or
£116,110) for Gervaise Heddle has been allocated to exploration costs in the
statement of comprehensive income for the year. Directors' remuneration and
bonus relates to short term employee benefits. Pension / superannuation
payments relate to long term employee benefits.
8 Directors' emoluments, continued
The aggregate gains made on the exercise of options during the year was
£4,827,500 (2020: £5,357,450)
Share based payments reflect the Black Scholes value of share options granted
during the year. See Note 20.
Also, see Note 25 for related party transactions.
9 Earnings per share
The basic earnings per share is derived by dividing the loss / profit for the period attributable to ordinary shareholders by the weighted average number of shares in issue.
2021 2020
£ £
Loss for the period (5,519,648) (5,144,995)
Weighted average number of Ordinary shares of £0.001 in issue
Loss per share - basic 3,872,578,735 3,593,407,809
(0.14) pence (0.14) pence
An inclusion of the potential Ordinary shares would result in a decrease in
the loss per share, they are considered to be anti-dilutive; as such, a
diluted earnings per share is not included.
If the 103,250,000 outstanding options at 30 June 2021 (2020: 204,500,000)
were included to calculate the diluted loss per share.
Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options
Loss per share - diluted 3,975,828,735 3,797,907,809
(0.14) pence (0.14) pence
10 Tangible fixed assets - Group
Motor vehicle Equipment Leasehold Improvements Total
Cost £ £ £ £
At 30 June 2020 117,546 120,451 6,320 244,317
Disposals (32,837) - - (32,837)
Additions
49,050 129,853 - 178,903
Foreign exchange rate fluctuations (2,858) (2,929) (153) (5,940)
At 30 June 2021 130,901 247,375 6,167 384,443
Depreciation
At 30 June 2020 44,955 67,294 7 112,256
Disposals
(19,160) - - (19,160)
Charge 28,660 147,068 156 175,884
Foreign exchange rate fluctuations (1,446) (3,445) (2) (4,893)
At 30 June 2021 53,009 210,917 161 264,087
Net book value
At 30 June 2021 77,892 36,458 6,006 120,356
At 30 June 2020 72,591 53,157 6,313 132,061
Motor vehicle Equipment Leasehold Improvements Total
Cost £ £ £ £
At 30 June 2019 33,310 113,863 - 147,173
Disposals - - - -
Additions
83,892 5,411 6,320 95,623
Foreign exchange rate fluctuations 344 1,177 - 1,521
At 30 June 2020 117,546 120,451 6,320 244,317
Depreciation
At 30 June 2019 5,126 38,933 - 44,059
Disposals
- - - -
Charge 39,573 27,816 7 67,396
Foreign exchange rate fluctuations 256 545 - 801
At 30 June 2020 44,955 67,294 7 112,256
Net book value
At 30 June 2020 72,591 53,157 6,313 132,061
At 30 June 2019 28,184 74,930 - 103,114
11 Mine development 2021 2020
£ £
At 30 June 2020 - -
Transferred from exploration properties 17,091,622 -
At 30 June 2021 17,091,622 -
Mine development reflects the Havieron asset operated by Newcrest under a Joint Venture Agreement with Greatland Pty Ltd. Newcrest has met the Stage 4 expenditure requirement to incur expenditure of US$65m and deliver a Pre-Feasibility Study to earn an additional 10% joint venture interest, resulting in the Group holding a 30% interest in the joint venture. Refer to note 1.2 in regards to significant estimates in relation to mine development.
12 Intangible non-current assets - Group 2021 2020
£ £
Exploration properties
At 30 June 2020 - 2,647,577
Impairment - (38,376)
Foreign exchange rate fluctuations - 10,956
Change in accounting policy adjustment - (2,620,157)
Havieron: capitalised borrowing costs 264,436 -
Havieron: rehabilitation provision 3,813,372 -
Havieron: evaluation and exploration costs 13,013,814 -
Transferred to asset under construction (17,091,622) -
At 30 June 2021 - -
Impairment
At 30 June 2020 (630,794)
Change in accounting policy adjustment - 630,794
Foreign exchange rate fluctuations - -
At 30 June 2021 - -
Net book amount
At 30 June 2021 - -
At 30 June 2020 - -
13 Right of use asset
Group Company
2021 2020 2021 2020
£ £ £ £
Properties
At 30 June 2020 414,616 479,846 75,399 100,532
Amortisation charge current year (64,946) (65,230) (25,133) (25,133)
Exchange rate movements (7,758) - - -
At 30 June 2021 341,912 414,616 50,266 75,399
Greatland Pty Ltd's lease of 5 years for office premises expires on 30
November 2023. The subsidiary Company has the option to extend the lease for a
further 5 year term, expiring on 30 November 2028.
Greatland Gold plc's initial lease of 24 months for office premises expired on
30 November 2020. The parent Company has extended the lease for a further 24
month terms, expiring on 30 November 2022.
14 Investments in subsidiary - Company £
Cost
At 30 June 2020 50,000
Impairment of investment -
At 30 June 2021 50,000
Net book amount
At 30 June 2021 50,000
At 30 June 2020 50,000
The parent company of the Group holds more than 20% of the share capital of the following company:
Company Country of registration Class Proportion held Nature of business
Greatland Pty Ltd Australia Common 100% Mining development and exploration of precious and base metals
The registered address of Greatland Pty Ltd is Unit B9, 431 Roberts Road,
Subiaco, WA, 6008
15 Trade and other receivables Group Company
2021 2020 2021 2020
£ £ £ £
Current trade and other receivables:
Other debtors 78,198 23,865 - -
Loans due from subsidiary - - 13,846,748 11,346,748
Total current trade and other receivables 78,198 23,865 13,846,748 11,346,748
The loan due from subsidiary was interest free throughout the period and has
no fixed repayment date. No provision £nil (2020: £nil) has been made
against this loan. Details in regards to significant accounting judgments,
estimates and assumptions associated with the recoverability of the loan due
from subsidiary are described in note 1.2.
16 Provisions Group Company
2021 2020 2021 2020
£ £ £ £
Non-current provisions
Rehabilitation provision 3,813,372 - - -
Total non-current provisions 3,813,372 - - -
Movement in rehabilitation provision Group Company
2021 2020 2021 2020
£ £ £ £
Opening balance - - - -
Arising during the year 3,813,372 - - -
Closing balance 3,813,372 - - -
Movement in rehabilitation provision
Group
Company
2021
2020
2021
2020
£
£
£
£
Opening balance
-
-
-
-
Arising during the year
3,813,372
-
-
-
Closing balance
3,813,372
-
-
-
Details in regards to significant accounting judgments, estimates and
assumptions associated with the rehabilitation provision are described in note
1.2.
17 Borrowings Group Company
2021 2020 2021 2020
£ £ £ £
Amount owed to third parties 12,189,790 - - -
Total borrowings 12,189,790 - - -
Opening balance - - - -
Drawings during the year 11,925,354 - - -
Accrued interest during the year 264,436 - - -
Total outstanding 12,189,790 - - -
The amount owing to third parties relates to amounts owing to Newcrest
Operations Limited under a loan agreement dated 29 November 2020 in respect of
the Havieron Joint Venture ("Havieron")
In relation to the Havieron Joint Venture, the loan has 2 parts being Facility
A and Facility B with values of US$20 million and US$30 million
respectively. Facility B will come into effect on the date on which the
Stage 4 commitment is satisfied by the lender. Interest is calculated on the
LIBOR rate plus a margin of 8% pa. Interest is calculated every 90 days. The
loan balance as at 30 June 2021 in relation to Havieron is £12,189,790
(AU$22,420,891).
18 Payables and other liabilities Group Company
2021 2020 2021 2020
£ £ £ £
Current payables and other liabilities:
Trade creditors
3,136,688 668,514 169,293 73,344
Accruals
41,175 64,481 41,175 64,481
Salaries and social security
113,265 29,700 113,265 29,700
Other creditors
64,830 - 64,830 -
Employee benefits
102,607 114,015 461 511
Lease liability
54,947 56,049 24,107 24,440
Total current payables and other liabilities 3,513,512 932,759 413,131 192,476
Non-current payables and other liabilities:
Employee benefits 33,341 34,592 - -
Lease liability 293,452 356,126 13,399 37,506
Total non-current trade and other payables: 326,793 390,718 13,399 37,506
Total payables and other liabilities 3,840,305 1,323,477 426,530 229,982
Current employee benefits relate to annual leave and non-current benefits
relates to long service leave.
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Lease payments payable:
Current (< 1 year) 54,947 56,049 24,107 24,440
2-5 years 219,278 234,429 13,399 37,506
> 5 years 74,174 121,697 - -
348,399 412,175 37,506 61,946
19 Share capital
Called up, allotted, issued and fully paid Number Share issue cost £
As at 30 June 2020, Ordinary shares of £0.001 each 3,760,206,631 (218,878) 3,760,207
Issued during the year
On 02 July 2020, at a price of £0.014, for cash 14,000,000 - 14,000
On 24 July 2020, at a price of £0.02, for cash 5,000,000 - 5,000
On 29 July 2020, at a price of £0.025, for cash 1,250,000 - 1,250
On 04 August 2020, at a price of £0.025, for cash 1,591,893 - 1,592
On 01 September 2020, at a price of £0.025, for cash 11,891,892 - 11,892
On 25 September 2020, at a price of £0.02, for cash 6,000,000 - 6,000
On 25 September 2020, at a price of £0.007, for cash 2,500,000 - 2,500
On 28 September 2020, at a price of £0.025, for cash 13,000,000 - 13,000
On 28 September 2020, at a price of £0.03, for cash 5,000,000 - 5,000
On 29 September 2020, at a price of £0.025, for cash 3,000,000 - 3,000
On 29 September 2020, at a price of £0.03, for cash 3,000,000 - 3,000
On 01 October 2020, at a price of £0.025, for cash 32,816,214 - 32,816
On 02 November 2020, at a price of £0.025, for cash 13,763,512 - 13,764
On 31 December 2020, at a price of £0.025, for cash 5,645,404 - 5,645
On 28 January 2021, at a price of £0.025, for cash 5,000,000 - 5,000
On 28 January 2021, at a price of £0.03, for cash 5,000,000 - 5,000
On 28 January 2021, at a price of £0.007, for cash 2,500,000 - 2,500
On 01 February 2021, at a price of £0.025, for cash 6,996,487 - 6,996
On 01 March 2021, at a price of £0.025, for cash 2,351,351 - 2,351
On 01 April 2021, at a price of £0.025, for cash 5,216,218 - 5,216
On 06 April 2021, at a price of £0.025, for cash 9,000,000 - 9,000
On 06 April 2021, at a price of £0.03, for cash 9,000,000 - 9,000
On 06 May 2021, at a price of £0.02, for cash 9,000,000 - 9,000
On 03 June 2021, at a price of £0.02, for cash 14,000,000 - 14,000
On 30 June 2021, at a price of £0.025, for cash 540,541 - 541
As at 30 June 2021, Ordinary shares of £0.001p each 3,947,270,143 (218,878) 3,947,270
Total share options in issue
As at 30 June 2021 there were 103,250,000 unexercised options over Ordinary shares; 25 million exercisable at 0.2 pence per share in issue, 14 million exercisable at 0.28 pence per share in issue, 7.5 million exercisable at 0.7 pence per share in issue,
5.5 million exercisable at 1.4 pence per share in issue, 5.5 million exercisable at 2 pence per share in issue, 25.75 million exercisable at 2.5 pence per share in issue, 15 million exercisable at 3.0 pence per share in issue and 5 million exercisable at
25 pence per share in issue. (2020: 204.5 million).
Total share options in issue
As at 30 June 2021 there were 103,250,000 unexercised options over Ordinary shares; 25 million exercisable at 0.2 pence per share in issue, 14 million exercisable at 0.28 pence per share in issue, 7.5 million exercisable at 0.7 pence per share in issue, 5.5 million exercisable at 1.4 pence per share in issue, 5.5 million exercisable at 2 pence per share in issue, 25.75 million exercisable at 2.5 pence per share in issue, 15 million exercisable at 3.0 pence per share in issue and 5 million exercisable at 25 pence per share in issue. (2020: 204.5 million).
Total warrants in issue
As at 30 June 2021 there were 17,027,028 million unexercised investor warrants
over Ordinary shares at 2.5 pence outstanding. Since the year end all
remaining warrants over Ordinary shares at 2.5 pence were exercised. No
expense was recorded in the year in respect of these warrants.
20 Share based payments
The Company grants share options to employees as part of the remuneration of
key management personnel and directors to enable them to purchase ordinary
shares in the Company. Under the plan, 5 million options were granted for no
cash consideration for a period of five years expiring on 04 May 2026. The
share options outstanding at 30 June 2021 had a weighted average remaining
contractual life of 1.6 years (2020: 2.4 years). Maximum term of new options
granted was 5 years from the grant date. The weighted average exercise price
of share options as at the date of exercise is £0.0177 (2020: £0.0073). The
share options outstanding at 30 June 2021 had a range of exercise prices
between £0.0020 and £0.2500.
Granted during the period Unexercised at 30 June 2020 Share options exercised Unexercised at 30 June 2021 Exercise price (pence) Date from which exercisable Expiry date
CBaxter - 14,000,000 (14,000,000) - 1.4p 07 Sep 2019 06 Sep 2022
CBaxter - 14,000,000 (14,000,000) - 2.0p 07 Sep 2019 06 Sep 2022
CBaxter - 9,000,000 - 9,000,000 2.5p 26 Sep 2020 25 Sep 2023
CBaxter - 9,000,000 - 9,000,000 3.0p 26 Sep 2020 25 Sep 2023
ABorrelli - 25,000,000 - 25,000,000 0.2p 20 Apr 2016 20 Apr 2021
ABorrelli - 14,000,000 - 14,000,000 0.28p 18 Jan 2017 18 Jul 2022
ABorrelli - 7,500,000 - 7,500,000 0.7p 18 Aug 2017 16 Feb 2021
ABorrelli - 2,500,000 - 2,500,000 1.4p 07 Sep 2019 06 Sep 2022
ABorrelli - 2,500,000 - 2,500,000 2.0p 07 Sep 2019 06 Sep 2022
GHeddle - 14,000,000 (14,000,000) - 2.0p 07 Sep 2019 06 Sep 2022
GHeddle - 9,000,000 (9,000,000) - 2.5p 26 Sep 2020 25 Sep 2023
GHeddle - 9,000,000 (9,000,000) - 3.0p 26 Sep 2020 25 Sep 2023
GCryan - 5,000,000 (5,000,000) - 0.7p 18 Aug 2017 16 Feb 2021
GCryan - 3,000,000 - 3,000,000 1.4p 07 Sep 2019 06 Sep 2022
GCryan - 3,000,000 - 3,000,000 2.0p 07 Sep 2019 06 Sep 2022
GCryan - 1,500,000 - 1,500,000 2.5p 26 Sep 2020 25 Sep 2023
GCryan - 1,500,000 - 1,500,000 3.0p 26 Sep 2020 25 Sep 2023
BWasse - 6,000,000 (6,000,000) - 2.0p 07 Sep 2019 06 Sep 2022
BWasse - 3,000,000 (3,000,000) - 2.5p 26 Sep 2020 25 Sep 2023
BWasse - 3,000,000 (3,000,000) - 3.0p 26 Sep 2020 25 Sep 2023
CLatcham - 10,000,000 (1,250,000) 8,750,000 2.5p 21 Mar 2020 20 Mar 2023
CLatcham - 1,500,000 - 1,500,000 2.5p 26 Sep 2020 25 Sep 2023
CLatcham - 1,500,000 - 1,500,000 3.0p 26 Sep 2020 25 Sep 2023
MSawyer - 10,000,000 (2,000,000) 8,000,000 2.5p 21 Mar 2020 20 Mar 2023
MSawyer - 3,000,000 (3,000,000) - 2.5p 26 Sep 2020 25 Sep 2023
MSawyer - 3,000,000 (3,000,000) - 3.0p 26 Sep 2020 25 Sep 2023
THarris - 5,000,000 (5,000,000) - 2.5p 26 Sep 2020 25 Sep 2023
THarris - 5,000,000 (5,000,000) - 3.0p 26 Sep 2020 25 Sep 2023
JJanik - 5,000,000 (5,000,000) - 2.5p 08 Jan 2021 07 Jan 2024
JJanik - 5,000,000 (5,000,000) - 3.0p 08 Jan 2021 07 Jan 2024
SDay 5,000,000 - - 5,000,000 25.0p 05 May 2024 04 May 2026
5,000,000 204,500,000 (106,250,000) 103,250,000
The fair value of the 5 million options granted on 05 May 2021 using an
adjusted Black-Scholes method and assumptions were as follows:
Options issued 5 million share options
Grant date 05 May 2021
Fair value at measurement date 0.764 pence
Share price at grant date 20.1 pence
Exercise price 25 pence
Expected volatility 51%
Vesting period: 3 years after grant 05 May 2024
Option life 60 months
Expected dividends 0.00%
Risk free interest rate 0.50%
Discount 40%
Fair value of options granted £229,420
The fair value of these share options expensed during the year was £11,794,
being the value of the options attributable to the vesting period to 30 June
2021 (2020: £154,492). £76,473, £76,473 and £64,680 will be expensed in
the following years, being the value of these options attributable to the end
of their vesting dates. £221,028 in respect of the exercised share options
was transferred to reserves (2020: £116,945).
The volatility is set by reference to the historic volatility of the share
price of the Company.
21 Cash and cash equivalents - Group 30 June 2021 Currency adjustments Net Cash flow 30 June 2020
£ £ £ £
Cash at bank and in hand 6,212,057 (42,915) 232,227 6,022,745
Total cash and cash equivalents 6,212,057 (42,915) 232,227 6,022,745
Cash and cash equivalents - Company 30 June 2021 Currency adjustments Net Cash flow 30 June 2020
£ £ £ £
Cash at bank and in hand 5,168,498 - 910,578 4,257,920
Total cash and cash equivalents 5,168,498 - 910,578 4,257,920
Cash at bank earns interest at floating rates based on daily bank deposit
rates.
Short-term deposits are made for varying periods of between one day and three
months, depending on the immediate cash requirements of the Group, and earn
interest at the respective short-term deposit rates.
22 Commitments
As at 30 June 2021, the Company had entered into the following commitment:
Exploration commitments
Ongoing exploration expenditure is required to maintain title to the Group
mineral exploration permits. No provision has been made in the financial
statements for these amounts as the expenditure is expected to be fulfilled in
the normal course of the operations of the Group.
Tenement rental and expenditure commitments
The Company is required to maintain current rights of tenure to tenements,
which require outlays of expenditure. A tenement will be liable to forfeiture
if the expenditure conditions, specified within the terms of the grant, are
not complied with. The Company has a 100% share of the tenement rental and
expenditure commitments of:
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Lease payments payable:
Current (< 1 year) 314,519 406,673 - -
2-5 years 527,370 505,079 - -
> 5 years 805,734 - - -
1,647,623 911,752 - -
23 Significant agreements and transactions
On 29 November 2020, Greatland signed a series of agreements in relation to
the Havieron project variously between Newcrest Operations Limited
("Newcrest"), Greatland Gold plc ("Greatland") and Greatland Pty Ltd ("GPL")
including a Joint Venture and Loan Agreement for the Havieron project and
Joint Venture Agreement for the Black Hills and Paterson Range East licences.
There were no other significant agreements and transactions to report other
than those reported in Note 21.
24 Events after the reporting period
Post-Balance Sheet Capital Raises and issue of options
On 1 July 2021 the Company announced that during June 2021, it had issued
540,541 new ordinary shares of 0.1p each from its block listing authority of
10 February 2020 for a total consideration of £13,514.
On 29 July 2021 the Company received a binding option exercise notice from
Clive Latcham for 250,000 options at 3.0 pence per share for a total
consideration of £7,500.
On 2 August 2021 the Company announced that during July 2021, it had issued
6,216,216 new ordinary shares of 0.1p each from its block listing authority of
10 February 2020 for a total consideration of £155,405.
On 1 September 2021 the Company announced that during August 2021, it had
issued 10,810,812 new ordinary shares of 0.1p each from its block listing
authority of 10 February 2020 for a total consideration of £270,270.
Corporate
On 8 July 2021, the Company announced the appointment of Christopher Toon as
Chief Financial Officer of the Company, in a non-Board role, with effect from
12 July 2021
On 20 July 2021, the Company announced the release of a new corporate
presentation.
On 11(th) August 2021, the Company announced the appointment of Otto Richter
as Group Mining Engineer with effect from 16 August 2021
On 25 August 2021 the Company announced the appointment of Paul Hallam as a
Non-Executive Director and the stepping down of Callum Baxter in his full time
role as Chief Technical Officer and Executive Director on 31 August 2021.
The Company also announced the establishment of a Technical Advisory
Committee.
On 16 September 2021, the Company announced it had entered into an agreement
with Province resources Limited to acquire the 100% owned Pascalle tenement,
the 100% owned Taunton tenement and two tenement applications for exploration
licences in the Paterson Province of Western Australia for a consideration of
cash and shares.
On 7 October 2021, the Company announced the planned release of the
pre-feasibility study results at the Havieron gold-copper deposit in the
Paterson region of Western Australia on 12 October 2021
On 12 October 2021, the Company announced the release of a Pre-Feasibility
Study on the South-East Crescent of Havieron
On 12 October 2021, the Company announced the release of a new corporate
presentation
On 18 October 2021, the Company announced it has been awarded winner of the
2021 Commodity Discovery Fund award for its Havieron discovery
On 19 October 2021, the Company announced it and its joint venture partner
Newcrest Mining Limited had advanced to Stage 2 of the Juri Joint Venture
25 Related party transactions
Remuneration of key management personnel
The remuneration of the directors, and other key management personnel of the
Group, is set out below in aggregate for each of the categories specified in
IAS24 Related Party Disclosures. See note 8 for further information.
2021 2020
£ £
Short-term employee benefits 1,348,676 1,708,920
Share based payments
20,249 154,492
1,368,925 1,863,412
26 Financial instruments - Group
The Group uses financial instruments comprising cash, liquid resources and
debtors/creditors that arise from its operations.
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Financial assets at amortised cost
Trade and other receivables 78,198 23,865 - -
Cash and cash equivalents 6,212,057 6,022,745 5,168,498 4,257,920
6,290,255 6,060,810 5,168,498 4,257,920
Financial liabilities
Trade and other payables (at amortised cost) 3,491,906 911,301 389,024 168,036
Lease liabilities (current and non-current) 348,399 412,175 37,506 61,946
Provisions 3,813,372 - - -
Borrowings 12,189,790 - - -
19,843,467 1,323,476 426,530 229,982
The Group's exposure to currency and liquidity risk is not considered
significant. The Group's cash balances are held in Pound Sterling and in
Australian dollars, the latter being the currency in which the significant
operating expenses are incurred. To date the Group has relied upon equity
funding to finance operations. The Directors are confident that adequate cash
resources exist to finance operations to commercial exploitation, but controls
over expenditure are carefully managed.
The net fair value of financial assets and liabilities approximates the
carrying values disclosed in the financial statements. The currency of the
financial assets is as follows:
Cash and short term deposits 30 June 2021 30 June 2020
£ £
Sterling 5,168,498 4,257,920
Australian Dollars 1,043,559 1,764,825
At 30 June 2021 6,212,057 6,022,745
The financial assets comprise interest earning bank deposits.
Contingent liabilities
27
The fair value of these share options expensed during the year was £11,794,
being the value of the options attributable to the vesting period to 30 June
2021 (2020: £154,492). £76,473, £76,473 and £64,680 will be expensed in
the following years, being the value of these options attributable to the end
of their vesting dates. £221,028 in respect of the exercised share options
was transferred to reserves (2020: £116,945).
The volatility is set by reference to the historic volatility of the share
price of the Company.
21
Cash and cash equivalents - Group
30 June 2021
£
Currency adjustments
£
Net Cash flow
£
30 June 2020
£
Cash at bank and in hand
6,212,057
(42,915)
232,227
6,022,745
Total cash and cash equivalents
6,212,057
(42,915)
232,227
6,022,745
Cash and cash equivalents - Company
30 June 2021
£
Currency adjustments
£
Net Cash flow
£
30 June 2020
£
Cash at bank and in hand
5,168,498
-
910,578
4,257,920
Total cash and cash equivalents
5,168,498
-
910,578
4,257,920
Cash at bank earns interest at floating rates based on daily bank deposit
rates.
Short-term deposits are made for varying periods of between one day and three
months, depending on the immediate cash requirements of the Group, and earn
interest at the respective short-term deposit rates.
22
Commitments
As at 30 June 2021, the Company had entered into the following commitment:
Exploration commitments
Ongoing exploration expenditure is required to maintain title to the Group
mineral exploration permits. No provision has been made in the financial
statements for these amounts as the expenditure is expected to be fulfilled in
the normal course of the operations of the Group.
Tenement rental and expenditure commitments
The Company is required to maintain current rights of tenure to tenements,
which require outlays of expenditure. A tenement will be liable to forfeiture
if the expenditure conditions, specified within the terms of the grant, are
not complied with. The Company has a 100% share of the tenement rental and
expenditure commitments of:
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Lease payments payable:
Current (< 1 year) 314,519 406,673 - -
2-5 years 527,370 505,079 - -
> 5 years 805,734 - - -
1,647,623 911,752 - -
23
Significant agreements and transactions
On 29 November 2020, Greatland signed a series of agreements in relation to
the Havieron project variously between Newcrest Operations Limited
("Newcrest"), Greatland Gold plc ("Greatland") and Greatland Pty Ltd ("GPL")
including a Joint Venture and Loan Agreement for the Havieron project and
Joint Venture Agreement for the Black Hills and Paterson Range East licences.
There were no other significant agreements and transactions to report other
than those reported in Note 21.
24
Events after the reporting period
Post-Balance Sheet Capital Raises and issue of options
On 1 July 2021 the Company announced that during June 2021, it had issued
540,541 new ordinary shares of 0.1p each from its block listing authority of
10 February 2020 for a total consideration of £13,514.
On 29 July 2021 the Company received a binding option exercise notice from
Clive Latcham for 250,000 options at 3.0 pence per share for a total
consideration of £7,500.
On 2 August 2021 the Company announced that during July 2021, it had issued
6,216,216 new ordinary shares of 0.1p each from its block listing authority of
10 February 2020 for a total consideration of £155,405.
On 1 September 2021 the Company announced that during August 2021, it had
issued 10,810,812 new ordinary shares of 0.1p each from its block listing
authority of 10 February 2020 for a total consideration of £270,270.
Corporate
On 8 July 2021, the Company announced the appointment of Christopher Toon as
Chief Financial Officer of the Company, in a non-Board role, with effect from
12 July 2021
On 20 July 2021, the Company announced the release of a new corporate
presentation.
On 11(th) August 2021, the Company announced the appointment of Otto Richter
as Group Mining Engineer with effect from 16 August 2021
On 25 August 2021 the Company announced the appointment of Paul Hallam as a
Non-Executive Director and the stepping down of Callum Baxter in his full time
role as Chief Technical Officer and Executive Director on 31 August 2021.
The Company also announced the establishment of a Technical Advisory
Committee.
On 16 September 2021, the Company announced it had entered into an agreement
with Province resources Limited to acquire the 100% owned Pascalle tenement,
the 100% owned Taunton tenement and two tenement applications for exploration
licences in the Paterson Province of Western Australia for a consideration of
cash and shares.
On 7 October 2021, the Company announced the planned release of the
pre-feasibility study results at the Havieron gold-copper deposit in the
Paterson region of Western Australia on 12 October 2021
On 12 October 2021, the Company announced the release of a Pre-Feasibility
Study on the South-East Crescent of Havieron
On 12 October 2021, the Company announced the release of a new corporate
presentation
On 18 October 2021, the Company announced it has been awarded winner of the
2021 Commodity Discovery Fund award for its Havieron discovery
On 19 October 2021, the Company announced it and its joint venture partner
Newcrest Mining Limited had advanced to Stage 2 of the Juri Joint Venture
25
Related party transactions
Remuneration of key management personnel
The remuneration of the directors, and other key management personnel of the
Group, is set out below in aggregate for each of the categories specified in
IAS24 Related Party Disclosures. See note 8 for further information.
2021
£
2020
£
Short-term employee benefits
Share based payments
1,348,676
20,249
1,708,920
154,492
1,368,925
1,863,412
26
Financial instruments - Group
The Group uses financial instruments comprising cash, liquid resources and
debtors/creditors that arise from its operations.
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Financial assets at amortised cost
Trade and other receivables 78,198 23,865 - -
Cash and cash equivalents 6,212,057 6,022,745 5,168,498 4,257,920
6,290,255 6,060,810 5,168,498 4,257,920
Financial liabilities
Trade and other payables (at amortised cost) 3,491,906 911,301 389,024 168,036
Lease liabilities (current and non-current) 348,399 412,175 37,506 61,946
Provisions 3,813,372 - - -
Borrowings 12,189,790 - - -
19,843,467 1,323,476 426,530 229,982
The Group's exposure to currency and liquidity risk is not considered
significant. The Group's cash balances are held in Pound Sterling and in
Australian dollars, the latter being the currency in which the significant
operating expenses are incurred. To date the Group has relied upon equity
funding to finance operations. The Directors are confident that adequate cash
resources exist to finance operations to commercial exploitation, but controls
over expenditure are carefully managed.
The net fair value of financial assets and liabilities approximates the
carrying values disclosed in the financial statements. The currency of the
financial assets is as follows:
Cash and short term deposits
30 June 2021
£
30 June 2020
£
Sterling
5,168,498
4,257,920
Australian Dollars
1,043,559
1,764,825
At 30 June 2021
6,212,057
6,022,745
The financial assets comprise interest earning bank deposits.
27
Contingent liabilities
Acquisition of Havieron Project
Under the terms of the agreement for the acquisition of the Havieron Gold
Project an initial payment of A$25,000 in cash and 65,490,000 ordinary shares
of 0.1 pence each in the Company were made. However, a second payment of
145,530,000 ordinary shares of 0.1 pence each will be made upon a "Decision to
Mine".
28 Ultimate Controlling Party
There is considered to be no ultimate controlling entity.
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