TIDMGGP
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 GBP17,091,622 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 GBP4.4m on the exercise
of warrants and options was received by the Group throughout the
year. The Group's cash deposits stood at GBP6,212,057 at 30 June
2021 (compared to GBP6,022,745 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 GBP17,091,622 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 yea r . Note 1.19 within the financial statements
provides further details regarding the change in accounting
policy.
Review of key developmen ts 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
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
Shaun Day 4900
info@greatlandgold.com
www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated
Adviser) +44 (0)20 3368
Andrew Emmott/James Keeshan 3550
Berenberg (Joint Corporate Broker and Financial
Adviser)
Matthew Armitt/ Varun Talwar/Alamgir Ahmed +44 (0)20 3207
/Detlir Elezi 7800
Canaccord Genuity (Joint Corporate Broker
and Financial Adviser) +44 (0)20 7523
James Asensio/Patrick Dolaghan 8000
Hannam & Partners (Joint Corporate Broker
and Financial Adviser) +44 (0)20 7907
Andrew Chubb/Matt Hasson/Jay Ashfield 8500
SI Capital Limited (Joint Broker) +44 (0)14 8341
Nick Emerson/Alan Gunn 3500
Luther Pendragon (Media and Investor Relations) +44 (0)20 7618
Harry Chathli/Alexis Gore/Joe Quinlan 9100
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 30 June 2020
2021 GBP
GBP
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 parent
company (5,568,383) (4,910,135)
--------------- ---------------
Earnings per share - basic 9 (0.14) pence (0.14) pence
and diluted
--------------- ---------------
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 30 June 1 July 2019
2021 2020
GBP (Restated) (Restated)
GBP* GBP*
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
============== ============= =============
Group statement of changes in equity for the year ended 30 June
2021
Share Share Share based Retained Other Total
capital premium payment earnings reserves
reserve
---------- ----------- ------------ ------------- ---------- ------------
GBP GBP GBP GBP GBP GBP
---------- ----------- ------------ ------------- ---------- ------------
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 Total other
translation reserves
reserve
GBP GBP GBP
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 30 June
2021 2020
GBP GBP
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 GBP1.
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 GBP5,519,648 for the year ended 30 June 2021
and had a net cash outflow of GBP16,266,226 from operating
and investing activities. At that date there were net
current assets of GBP2,930,958. 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 (GBP). 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 GBP10,000 from Westminster City
Council, London. In the previous year Greatland Pty
Ltd received two 'Cash Boost' grants totalling A$100,000
(GBP55,438) 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 (GBP336,356) in respect of chargeable costs
for its Juri loan (2020: GBPnil).
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 GBP1,989,363 (1 July
2019: GBP2,016,783)
* Retained earnings - decrease by GBP1,989,363 (1 July
2019: GBP2,016,783)
There was no impact to the statement of comprehensive
income as a result of the change in accou n ting 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 GBP GBP GBP
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 GBP GBP GBP
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, UK Australia Total
continued
Year ended 30 June 2020 GBP GBP GBP
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 GBP GBP GBP
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 GBP
GBP
Finance income Finance costs 982 17,663
(17,415) (21,734)
--------------- --------------
(16,433) (4,071)
--------------- --------------
Expenses by Nature 2020
4 2021 GBP
GBP
Loss on ordinary activities before
taxation is stated after charging:
Auditors' remuneration - audit Depreciation
Amortisation
Impairment charge 40,600 17,000
Directors' emoluments 175,884 67,396
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 GBP
GBP
Fees payable to the Company's auditor
and its associates for the audit of
the Company and Group Financial Statements 40,600 17,000
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 GBP GBP
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
GBP GBP
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 Employee costs 2021 2020
comprised: GBP GBP
Wages and salaries 1,696,082 949,721
Bonus 338,068 611,854
Pension/superannuation Share option 169,723 147,345
charge 25,668 154,492
---------- ----------
2,229,541 1,863,412
---------- ----------
Number Number
Exploration Administration 15 6
2 2
---------- ----------
Of the total employee costs in the year, GBP772,804 (2020:
GBP669,759) 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: GBPNil)
8 Directors' emoluments 2021 2020
GBP GBP
Directors' remuneration 1,348,676 997,511
Share option charge 20,249 91,715
-------------- ----------
1,368,925 1,089,226
-------------- ----------
Directors' Pension Bonus Share Based Total
salary Payments
2021 GBP GBP GBP GBP GBP
Executive directors
Callum Baxter
Gervaise Heddle 320,721
(resigned 12
March 2021)
Shaun Day 348,790 40,020 100,540 3,901 465,182
(appointed
15 December
2020) Non-executive
directors Alex
Borrelli Clive
Latcham 29,194 - 3,901 381,885
191,760
28,031 103,305 11,797 334,893
52,500
40,000 1,315 52,500 - 106,315
- 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 GBP348,887) for Callum
Baxter and 25% (or GBP259,968) 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.
S hare 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' Pension Bonus Share Based Total
salary Payments
2020 GBP GBP GBP GBP GBP
Executive directors
Callum Baxter Gervaise
Heddle Non-executive
directors Alex Borrelli
Clive Latcham 185,024
185,024 44,278 205,121 30,015 464,438
44,278 205,121 30,015 464,438
43,750
33,750 1,165 25,000 3,159 73,074
- 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 GBP348,329) for Callum
Baxter and 25% (or GBP116,110) 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 GBP4,827,500 (2020: GBP5,357,450)
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
GBP GBP
Loss for the period (5,519,648) (5,144,995)
------------------ ---------------------
Weighted average number of Ordinary
shares of GBP0.001 in issue 3,872,578,735 3,593,407,809
Loss per share - basic
(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 GBP0.001 in issue inclusive 3,975,828,735 3,797,907,809
of outstanding options Loss per
share - diluted (0.14) pence (0.14) pence
------------------ ---------------------
10 Tangible fixed assets -
Group
Motor Equipment Leasehold Total
vehicle Improvements
Cost GBP GBP GBP GBP
At 30 June 2020 117,546 120,451 6,320 244,317
Disposals Additions (32,837) - - (32,837)
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
44,955 67,294 7 112,256
At 30 June 2020
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 Total
Improvements
Cost GBP GBP GBP GBP
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
5,126 38,933 - 44,059
At 30 June 2019 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
GBP GBP
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 2021 2020
- Group GBP GBP
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 264,436 -
costs
Havieron: rehabilitation 3,813,372 -
provision
Havieron: evaluation and 13,013,814 -
exploration
costs
Transferred to asset under (17,091,622) -
construction
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
GBP GBP GBP GBP
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 GBP
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 Class Proportion Nature of business
of registration held
Greatland Pty Australia Common 100% Mining development
Ltd 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
GBP GBP GBP GBP
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
GBPnil (2020: GBPnil) has been made against this loan. Details
in regards to s ignificant 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
GBP GBP GBP GBP
Non-current provisions
Rehabilitation provision 3,813,372 - - -
Total non-current provisions 3,813,372 - - -
---------- ----- ----- -----
Movement in rehabilitation Group Company
provision
2021 2020 2021 2020
GBP GBP GBP GBP
Opening balance - - - -
Arising during the year 3,813,372 - - -
Closing balance 3,813,372 - - -
---------- --------- ------------- -------------
Details in regards to s ignificant accounting judgments,
estimates and assumptions associated with the rehabilitation
provision are described in note 1.2.
17 Borrowings Group Company
2021 2020 2021 2020
GBP GBP GBP GBP
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 264,436 - - -
year
------------- ----- ----- -----
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 GBP12,189,790 (AU$22,420,891).
18 Payables and other liabilities Group Company
2021 2020 2021 2020
GBP GBP GBP GBP
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
GBP GBP GBP GBP
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 Number Share GBP
fully paid issue
cost
As at 30 June 2020, Ordinary shares
of GBP0.001 each 3,760,206,631 (218,878) 3,760,207
Issued during the year
On 02 July 2020, at a price of
GBP0.014, for cash 14,000,000 - 14,000
On 24 July 2020, at a price of
GBP0.02, for cash 5,000,000 - 5,000
On 29 July 2020, at a price of
GBP0.025, for cash 1,250,000 - 1,250
On 04 August 2020, at a price
of GBP0.025, for cash 1,591,893 - 1,592
On 01 September 2020, at a price
of GBP0.025, for cash 11,891,892 - 11,892
On 25 September 2020, at a price
of GBP0.02, for cash 6,000,000 - 6,000
On 25 September 2020, at a price
of GBP0.007, for cash 2,500,000 - 2,500
On 28 September 2020, at a price
of GBP0.025, for cash 13,000,000 - 13,000
On 28 September 2020, at a price
of GBP0.03, for cash 5,000,000 - 5,000
On 29 September 2020, at a price
of GBP0.025, for cash 3,000,000 - 3,000
On 29 September 2020, at a price
of GBP0.03, for cash 3,000,000 - 3,000
On 01 October 2020, at a price
of GBP0.025, for cash 32,816,214 - 32,816
On 02 November 2020, at a price
of GBP0.025, for cash 13,763,512 - 13,764
On 31 December 2020, at a price
of GBP0.025, for cash 5,645,404 - 5,645
On 28 January 2021, at a price
of GBP0.025, for cash 5,000,000 - 5,000
On 28 January 2021, at a price
of GBP0.03, for cash 5,000,000 - 5,000
On 28 January 2021, at a price
of GBP0.007, for cash 2,500,000 - 2,500
On 01 February 2021, at a price
of GBP0.025, for cash 6,996,487 - 6,996
On 01 March 2021, at a price of
GBP0.025, for cash 2,351,351 - 2,351
On 01 April 2021, at a price of
GBP0.025, for cash 5,216,218 - 5,216
On 06 April 2021, at a price of
GBP0.025, for cash 9,000,000 - 9,000
On 06 April 2021, at a price of
GBP0.03, for cash 9,000,000 - 9,000
On 06 May 2021, at a price of
GBP0.02, for cash 9,000,000 - 9,000
On 03 June 2021, at a price of
GBP0.02, for cash 14,000,000 - 14,000
On 30 June 2021, at a price of
GBP0.025, for cash 540,541 - 541
--------------
As at 30 June 2021, Ordinary shares
of GBP0.001p 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 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 GBP0.0177 (2020:
GBP0.0073). The share options outstanding at 30 June 2021 had
a range of exercise prices between GBP0.0020 and GBP0.2500.
Granted Unexercised Share Unexercised Exercise Date from Expiry
during at 30 June options at 30 June price which date
the period 2020 exercised 2021 (pence) exercisable
07 Sep 06 Sep
C Baxter - 14,000,000 (14,000,000) - 1.4p 2019 2022
07 Sep 06 Sep
C Baxter - 14,000,000 (14,000,000) - 2.0p 2019 2022
26 Sep 25 Sep
C Baxter - 9,000,000 - 9,000,000 2.5p 2020 2023
26 Sep 25 Sep
C Baxter - 9,000,000 - 9,000,000 3.0p 2020 2023
20 Apr 20 Apr
A Borrelli - 25,000,000 - 25,000,000 0.2p 2016 2021
18 Jan 18 Jul
A Borrelli - 14,000,000 - 14,000,000 0.28p 2017 2022
18 Aug 16 Feb
A Borrelli - 7,500,000 - 7,500,000 0.7p 2017 2021
07 Sep 06 Sep
A Borrelli - 2,500,000 - 2,500,000 1.4p 2019 2022
07 Sep 06 Sep
A Borrelli - 2,500,000 - 2,500,000 2.0p 2019 2022
07 Sep 06 Sep
G Heddle - 14,000,000 (14,000,000) - 2.0p 2019 2022
26 Sep 25 Sep
G Heddle - 9,000,000 (9,000,000) - 2.5p 2020 2023
26 Sep 25 Sep
G Heddle - 9,000,000 (9,000,000) - 3.0p 2020 2023
18 Aug 16 Feb
G Cryan - 5,000,000 (5,000,000) - 0.7p 2017 2021
07 Sep 06 Sep
G Cryan - 3,000,000 - 3,000,000 1.4p 2019 2022
07 Sep 06 Sep
G Cryan - 3,000,000 - 3,000,000 2.0p 2019 2022
26 Sep 25 Sep
G Cryan - 1,500,000 - 1,500,000 2.5p 2020 2023
26 Sep 25 Sep
G Cryan - 1,500,000 - 1,500,000 3.0p 2020 2023
07 Sep 06 Sep
B Wasse - 6,000,000 (6,000,000) - 2.0p 2019 2022
26 Sep 25 Sep
B Wasse - 3,000,000 (3,000,000) - 2.5p 2020 2023
26 Sep 25 Sep
B Wasse - 3,000,000 (3,000,000) - 3.0p 2020 2023
21 Mar 20 Mar
C Latcham - 10,000,000 (1,250,000) 8,750,000 2.5p 2020 2023
26 Sep 25 Sep
C Latcham - 1,500,000 - 1,500,000 2.5p 2020 2023
26 Sep 25 Sep
C Latcham - 1,500,000 - 1,500,000 3.0p 2020 2023
21 Mar 20 Mar
M Sawyer - 10,000,000 (2,000,000) 8,000,000 2.5p 2020 2023
26 Sep 25 Sep
M Sawyer - 3,000,000 (3,000,000) - 2.5p 2020 2023
26 Sep 25 Sep
M Sawyer - 3,000,000 (3,000,000) - 3.0p 2020 2023
26 Sep 25 Sep
T Harris - 5,000,000 (5,000,000) - 2.5p 2020 2023
26 Sep 25 Sep
T Harris - 5,000,000 (5,000,000) - 3.0p 2020 2023
08 Jan 07 Jan
J Janik - 5,000,000 (5,000,000) - 2.5p 2021 2024
08 Jan 07 Jan
J Janik - 5,000,000 (5,000,000) - 3.0p 2021 2024
05 May 04 May
S Day 5,000,000 - - 5,000,000 25.0p 2024 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 0.764 pence
date
Share price at grant date 20.1 pence
Exercise price 25 pence
Expected volatility 51%
Vesting period: 3 years 05 May 2024
after grant
Option life 60 months
Expected dividends 0.00%
Risk free interest rate 0.50%
Discount 40%
Fair value of options granted GBP229,420
----------------
The fair value of these share options expensed during the year
was GBP11,794, being the value of the options attributable to
the vesting period to 30 June 2021 (2020: GBP154,492). GBP76,473,
GBP76,473 and GBP64,680 will be expensed in the following years,
being the value of these options attributable to the end of
their vesting dates. GBP221,028 in respect of the exercised
share options was transferred to reserves (2020: GBP116,945).
The volatility is set by reference to the historic volatility
of the share price of the Company.
21 Cash and cash equivalents 30 June Currency Net Cash 30 June
- Group 2021 adjustments flow 2020
GBP GBP GBP GBP
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 30 June Currency Net Cash 30 June
- Company 2021 adjustments flow 2020
GBP GBP GBP GBP
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
GBP GBP GBP GBP
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 GBP13,514.
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 GBP7,500.
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 GBP155,405.
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 GBP270,270.
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 GBP
GBP
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
GBP GBP GBP GBP
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 30 June 2020
2021 GBP
GBP
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
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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END
FR UAONRANUAARA
(END) Dow Jones Newswires
November 11, 2021 02:00 ET (07:00 GMT)
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