TIDMGGP
RNS Number : 4722S
Greatland Gold PLC
06 November 2023
Greatland Gold plc (AIM: GGP)
E: info@greatlandgold.com
W: https://greatlandgold.com
: twitter.com/greatlandgold
NEWS RELEASE | 6 November 2023
Final Results and Publication of Annual Report
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK MARKET ABUSE REGULATIONS. ON PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN .
Greatland Gold plc (AIM:GGP), a mining development and
exploration company with a focus on precious and base metals ,
announces its audited financial results for the year ended 30 June
2023.
Corporate highlights
-- Retained 30% ownership of Havieron at the conclusion of the
5% option process provided for in the Havieron Joint Venture
Agreement, an outcome that delivers substantial value to Greatland
shareholders
-- Strengthened the Board with the appointments of Mark Barnaba
(Non-Executive Chairman), Elizabeth Gaines (Non-Executive Deputy
Chair), Jimmy Wilson (Executive Director) and Yasmin Broughton
(Non-Executive Director).
-- Successfully completed equity raisings of GBP63.3 million,
including GBP33.5 million cornerstone investment by Wyloo (which
currently holds 8.45% of the Company's shares)
-- Letter of Support signed with ANZ, HSBC and ING for Havieron,
supporting a A$220 million seven-year syndicated debt and
associated hedging facilities and subsequent to year end
-- Executed a A$50 million unsecured standby loan facility
(Standby Facility) with Wyloo Metals (Wyloo)
Portfolio highlights
-- Continued the expedited development of the underground
decline at Havieron, in parallel with the Feasibility Study that
continues to progress well, assessing several value enhancing
options to maximise value and derisk the project
-- Entered into a farm-in and joint venture agreement with Rio
Tinto Exploration to explore more than 1,500km(2) of highly
prospective tenure near Havieron; commenced drilling within one
month
-- Signed a landmark land access agreement for the Ernest Giles
project; awarded a drilling grant under the Government of Western
Australia's Exploration Incentive Scheme
-- Continued to advance exploration at our tenements in the
Paterson, in particular Scallywag
-- At the Juri Joint Venture, a second exploration programme
commenced in May 2022 with encouraging assay results
Greatland Managing Director, Shaun Day, commented: "This year
has seen Greatland continue to make significant progress towards
the development of our world-class mining asset, Havieron. Progress
at Havieron has been impressive, bringing us closer to the top of
the Havieron ore body. In addition to our flagship project, there
has been exploration advancement across our portfolio, which we
believe provides excellent optionality and prospectivity in
addition to Havieron.
"We have significantly enhanced our corporate position by
securing both equity and debt financing, and in particular the
strategic cornerstone equity investment from Wyloo. We are now well
positioned to make the most of all value generative opportunities
as and when they become available."
"Over the past year, the Greatland team has successfully
continued to establish our growth platform, and we are eager to
continue building on it in the coming year. The joint venture
agreement with Rio Tinto Exploration is a great example of the
strides we have taken, and we are excited about the opportunity
presented by our Paterson South farm-in."
Publication of Annual Report
The 2023 Annual Report is available for download on our website
at https://greatlandgold.com/investors/results/ and will be mailed
out to registered shareholders.
Contact
For further information, please contact:
Greatland Gold plc
Shaun Day, Managing Director | info@greatlandgold.com
Nominated Adviser
SPARK Advisory Partners
Andrew Emmott / James Keeshan / Neil Baldwin | +44 203 368
3550
Corporate Brokers
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523 8000
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3500
Media Relations
UK - Gracechurch Group | Harry Chathli / Alexis Gore / Henry
Gamble | +44 204 582 3500
Australia - Fivemark Partners | Michael Vaughan | +61 422 602
720
About Greatland
Greatland is a mining development and exploration company
focused primarily on precious and base metals.
The Company's flagship asset is the world-class Havieron
gold-copper project in the Paterson Province of Western Australia,
discovered by Greatland and presently under development in joint
venture with ASX gold major, Newcrest Mining Limited (which is the
subject of an agreed takeover by Newmont Corporation that is
ongoing).
Havieron is located approximately 45km east of Newcrest's
existing Telfer gold mine. The box cut and decline to the Havieron
orebody commenced in February 2021. Significant progress continues
with the exploration decline with total development at over 2,820
metres in October 2023. Subject to a positive feasibility study and
Decision to Mine, Havieron may leverage the existing Telfer
infrastructure and processing plant.
Greatland has a proven track record of discovery and exploration
success and is pursuing the next generation of tier-one mineral
deposits by applying advanced exploration techniques in
under-explored regions. Greatland has a number of exploration
projects across Western Australia and in parallel to the
development of Havieron is focused on becoming a multi-commodity
miner of significant scale.
Chairman's Statement
I am pleased to present my inaugural Chairman's Statement for
Greatland Gold plc (Company) and its consolidated group (Greatland
or the Group). Together with my fellow Directors, I would like to
acknowledge what has been another strong year of growth and
achievement for Greatland. This progress continues to position
Greatland as one of the mining industry's most exciting growth
stories.
The past year has been an important period for Greatland. Our
flagship asset, the world-class Havieron gold-copper project in the
Paterson region of Western Australia, is being advanced under a
joint venture with Newcrest Mining Limited (Newcrest; ASX:NCM,
currently in the process of an agreed takeover by Newmont
Corporation (NYSE:NEM)).
Mine development towards the Havieron orebody progressed well
throughout the year, with total development now in excess of 2,820
metres including over 2,030 metres of advance in the main access
decline as of October 2023. With over 300,000 metres of exploration
and development drilling completed, our most recent drilling
improves our understanding of the South East Crescent which extends
for more than 1,100 metres. Particularly encouraging is
confirmation of continuous mineralisation through the link zone
which connects the South East Crescent with the Eastern Breccia and
the Havieron team is focused on incorporating these results into
the optimised Feasibility Study together with several value
enhancing options to maximise value and further derisk the
project.
In addition to Havieron, Greatland holds a significant portfolio
of precious and base metals focused exploration tenements in
Western Australia, one of the world's premier mining jurisdictions,
which collectively cover an area of approximately 5,000km(2),
including nearly 3,000km(2) in the Paterson region. Excitingly, we
believe we may have only scratched the surface of the exploration
potential within our tenements in the Paterson region. While the
Havieron team continues to work hard to progress Havieron towards
production, we have maintained our strong exploration momentum and
moved swiftly to secure rights to the most prospective surrounding
tenure. We are particularly excited about the opportunity presented
by our Paterson South farm-in and joint venture arrangement with
Rio Tinto Exploration Pty Ltd (RTX), a wholly owned subsidiary of
Rio Tinto Limited (Rio Tinto; ASX:RIO), to accelerate exploration
across over 1,500km(2) of highly prospective tenure in the
Paterson. Greatland will be entitled to earn up to a 75% interest
in the Paterson South tenements under a two-stage farm-in
arrangement over seven years.
The Paterson South tenure is historically underexplored and
hosts several magnetic anomalies with targets that we consider to
be the closest to a Havieron lookalike within the Paterson region ,
as well as containing prospective Telfer style targets. Our
partnership with RTX is a significant opportunity for us to
leverage our existing presence in the region, our good standing
within the Paterson community, and our strong technical knowledge
fostered through the discovery of Havieron and other exploration.
The rapid commencement of drilling on the tenements within four
weeks of entering into the Paterson South farm-in and joint venture
arrangement with RTX is testament to both the high quality of the
targets and our drive to rapidly unlock greater value from our
Paterson region exploration portfolio.
Elsewhere in the Paterson, drilling at Scallywag has returned
the most encouraging results to date. At the A35 Prospect,
pre-collar drilling intercepted gold mineralisation and important
pathfinder geochemistry which is associated with the Havieron and
Telfer gold-copper deposits. In addition, an intercept at the Pearl
Prospect confirms the possibility of a new style of deposit being
identified. The strong gold and copper mineralisation and
supporting pathfinder geochemistry continues to highlight the
outstanding prospectivity within our tenement package and the
Paterson region in general. These results, together with our
continual improvement in understanding of the covered basement
geology, stratigraphy and structure, increases our confidence in
the prospectivity of the region, and our ability to vector towards
intrusion related and other styles of mineralised systems on our
extensive ground holdings.
While the Paterson region has undoubtedly been our key focus for
the year, we have also maintained activities across the other
projects within our high-quality exploration portfolio that spans
some of Australia's most exciting mineral regions. Leading this
generative pipeline is our Ernest Giles project. Subsequent to year
end, a landmark land access agreement was completed with the Manta
Rirrtinya Native Title Holders, the first they have entered into
since their native title determination in 2018. The agreement
provides for the consent to the grant of tenure to, and land access
by, Greatland over approximately 75% of the Ernest Giles project
area. Diamond drill testing on the Meadows prospect is planned to
commence in the 30 June 2024 financial year.
Greatland's most important priority is safety, keeping our
employees, contractors and communities safe and well. Our first
priorities are to operate with zero fatalities, reduce workplace
injuries and prevent catastrophic events. Greatland achieved its
goal of maintaining a safe workplace for all during the year. There
were no fatalities at the Company's projects and the Total
Recordable Injury Frequency Rate for the Company (fully owned or
operated projects) was nil.
As Greatland continues its evolution from a junior explorer
towards a leading mid-tier developer and producer, we have made
substantial progress to support our next growth phase and
aspirations through balance sheet strengthening, financing
flexibility, increasing the depth and breadth of capabilities of
our management team and enhancing our governance and sustainability
credentials.
Fundamental to the acceleration in our development and
exploration programmes is our ability to maintain our commercial
discipline and financial strength. The Group's financial position
was strengthened during the year with a combination of fundraises,
including GBP29.7 million raised in August 2022 from institutional
investors and a subsequent strategic cornerstone equity investment
from Wyloo Consolidated Investments Pty Ltd (Wyloo) of A$60 million
(c.GBP33.5 million) in October 2022, with an additional future
potential equity contribution of GBP35 million. Wyloo currently
holds approximately 8.5% of Greatland shares on issue. It is my
pleasure to welcome our new shareholders.
Furthermore, in May 2023, Greatland received a signed Letter of
Support from its banking syndicate expressing their support and
interest in the provision of A$220 million seven-year syndicated
debt and associated hedging facilities and subsequent to year end,
we executed a A$50 million unsecured standby loan facility (Standby
Facility) with Wyloo. We appreciate Wyloo's continued support. The
Letter of Support, Standby Facility and continued backing of
high-quality institutions strengthen our financial position and
provides funding optionality prior to finalisation of the Havieron
Feasibility Study as the underground decline approaches the top of
the Havieron gold-copper orebody.
During the year, we significantly increased the depth and
breadth of our capabilities across mining operations, project
development, strategy, investor relations and governance. In
addition to my own appointment, we enhanced our Board experience
with the transformational appointments of Elizabeth Gaines, former
Fortescue Metals Group Ltd (Fortescue) CEO and Managing Director,
as Non-Executive Director; James 'Jimmy' Wilson, a former senior
executive at BHP whose roles included President of its iron ore
division, as Executive Director; and Yasmin Broughton, a qualified
lawyer with significant experience as a Non-Executive Director
across a diverse range of industries with a particular focus on
natural resources, as an Independent Non-Executive Director.
From a corporate perspective, Greatland significantly progressed
our proposed cross-listing on the Australian Securities Exchange
(ASX) during the year. Our objective is to undertake an ASX
cross-listing in a manner and at a time that delivers an optimised
outcome for the Company and its existing shareholders. Subsequent
to year end in September, having regard to the ASX listing
timetable and upcoming activities and opportunities for the
business, we decided to defer the ASX cross-listing until 2024.
Greatland will continue to support the early works development of
Havieron and will complete and announce an updated Mineral Resource
Estimate (MRE) which is targeted for the December quarter 2023.
Greatland remains committed to listing on the ASX at the
appropriate time. The work undertaken by the Company this year
provides a strong foundation to efficiently resume and complete the
ASX listing process.
We understand that our stakeholders expect us to operate in a
sustainable, responsible and transparent manner that respects all
people and the environment. We recognise that sustainability is a
journey and that investors and financial institutions are
increasingly assessing companies based on their Environmental,
Social and Governance (ESG) performance, with the range of issues
and expectations continuing to grow and evolve over time. Our
achievements in this area and our ambitions for the future are
reflected in our second dedicated Sustainability Report.
I would like to extend my gratitude to my fellow Directors and
the entire Greatland team for their support, dedication and hard
work during 2023. In particular, I thank Alex Borrelli for his
Chairmanship of Greatland for the five years prior to my
appointment, a period of tremendous success. Alex's stewardship of
the Company during this period was commendable and he remains a
valuable contributor to the Board. I also thank our Managing
Director, Shaun Day, for his leadership of our exceptional
management team through another important year in Greatland's
continued development.
This past year has laid the foundation and I believe this next
chapter for Greatland is only just the beginning. We have a busy
exploration and development program with a number of key catalysts
for growth and I look forward to the year ahead.
Finally, I would also like to thank our shareholders for their
continued support and I look forward to bringing you further
updates as we embark on another exciting year.
Mark Barnaba
Chairman
5 November 2023
Strategic Report
The Managing Director presents the strategic report on the Group
for the year ended 30 June 2023.
Principal activities, strategies and business model
The principal activity of the Group is to explore for and
develop precious and base metal assets. The Group aspires to become
a profitable multi-mine resources company by focusing on the
responsible and sustainable discovery, development, extraction,
processing and sale of precious and base metals.
Greatland has a clear strategy to achieve this growth which is
built on three pillars:
(1) Continued advancement of the world class Havieron
gold-copper project through to production.
(2) Exploration to identify new precious and base metals
deposits with a particular focus on the highly prospective Paterson
region of Western Australia.
(3) Disciplined assessment and, where compelling, pursuit of new
investment and acquisition opportunities in the resources
sector.
Greatland's strategy and business model is developed by the
Managing Director and approved by the Board. The Managing Director
reports to the Board and is responsible for implementing the
Group's strategy and operating its business, with the leadership
team.
Corporate
On 14 July 2022, the Company announced it had successfully
renegotiated the contingent consideration due under the original
2016 Havieron acquisition. The Company agreed with the vendor a
two-year restriction on dealing with the Greatland shares to be
issued and a reduction of 4.5% in the number of Greatland shares to
be issued, a saving of over 6.5 million shares. This reflected the
vendor's support for the Company and conviction in the Havieron
project.
The Company then announced the successful conclusion of the
Havieron Joint Venture 5% option process, with the Company
retaining its 30% interest in Havieron. This was a key objective
for the Group and an excellent outcome.
In August 2022, the Group's financial position was strengthened
by a successful placing of new shares. The fundraise experienced
strong demand and was oversubscribed, with total gross proceeds
raised of GBP29.7 million at a price of 8.2 pence per share. The
equity raising enabled the Company to add a significant
institutional presence to our share registry, reflecting the
evolution of our business.
Shortly afterwards in October 2022, the Group's financial
position was further strengthened through a strategic equity
investment from Wyloo of A$60 million (c.GBP33.5m) at an AUD
equivalent price of 8.2 pence per share, with the potential for a
further equity contribution of GBP35m (if warrants exercisable at
10.0 pence per share that were granted as part of the transaction
are exercised). The Wyloo investment was strongly supported by
shareholders at a general meeting in October 2022 which approved
the transaction.
On 30 May 2023, the Company announced that it had received a
signed non-legally binding Letter of Support from a syndicate of
banks comprising of Australia and New Zealand Banking Group
Limited, HSBC Bank and ING Bank (Australia) (together, the Banking
Syndicate). The Letter of Support provides that the Banking
Syndicate are fully supportive and interested in the provision of
A$220 million seven-year syndicated debt and associated hedging
facilities.
Greatland advanced its preparations for a proposed cross-listing
on the ASX, with significant progress made during the year.
Subsequent to year end, having regard to the listing timetable and
activities and opportunities for the business, Greatland decided to
defer the ASX cross-listing until 2024. Greatland remains committed
to listing on the ASX at the appropriate time and is well
positioned by the work undertaken this year to efficiently resume
and complete the ASX listing process.
Havieron, Western Australia (Greatland: 30%)
Havieron is an exciting gold-copper development project and
is the cornerstone of Greatland's strategic position in the
Paterson region of Western Australia, one of the leading frontiers
for the discovery of world-class precious and base metals deposits.
Discovered by Greatland in 2018, Havieron is being progressed
under a joint venture with Australia's largest gold producer,
Newcrest. Newcrest, through its wholly-owned subsidiary Newcrest
Operations Limited (Newcrest Operations), has earnt a 70% joint
venture interest in Havieron.
Newcrest assumed management of Havieron in May 2019, undertaking
the orebody definition and technical studies required to support
regulatory approvals and early works. The decline development
commenced in May 2021, with the Pre-Feasibility Study completed
on 12 October 2021 and the Feasibility Study currently progressing.
=====================================================================
During the year, decline development continued to progress with
total development at Havieron having reached in excess of 2,820
metres including over 2,030 metres of advance in the main access
decline (as of October 2023).
Throughout the year exploration drilling continued at Havieron,
with a focus on infilling the South East Crescent below the
4200mRL, continued evaluation of the Eastern Breccia along with
continuing to assess the mineral system at depth.
The aim of the South East Crescent drilling was to improve the
understanding and confidence in the lower South East Crescent
Resource so that it may potentially be included in an updated mine
design and subsequent Ore Reserve update. This infill drill program
was completed in May 2023.
Last year's March 2022 Mineral Resource Estimate represented the
first time Resources were defined within the Eastern Breccia, as a
result of successful drilling during 2021. Since this time drilling
has continued, focusing on defining the extent of the Eastern
Breccia, expanding the known mineralisation and achieving an
appropriate spacing of drilling to provide the confidence required
to support classified material as Mineral Resource.
Newcrest Operations is required to prepare a Havieron
Feasibility Study before a Decision to Mine can be made.
Preparation of the Feasibility Study is ongoing and has been
extended to further assess several value enhancing options to
maximise value and derisk the project.
Paterson South Farm-In and Joint Venture Arrangement, Western
Australia (Greatland earning up to 75%)
In May 2023, Greatland entered into the Paterson South farm-in
and joint venture agreement with RTX, a wholly-owned subsidiary
of global mining group Rio Tinto to accelerate exploration at
nine exploration licences (Paterson South Tenements) within the
Paterson region of Western Australia, located near Havieron.
Greatland has the right to earn up to a 75% interest in the Paterson
South Tenements by spending at least A$21.1 million and completing
24,500 metres of drilling as part of a two-stage farm-in over
seven years. Under stage one, Greatland is subject to minimum
commitment spend of A$1.1 million to be completed before 31 December
2024.
======================================================================
In late June 2023, Greatland commenced its maiden exploration
drilling campaign at the Paterson South Tenements to test the
Stingray and Decka targets. The Stingray target is a magnetic
anomaly 10km along strike north-northwest of the Havieron magnetic
anomaly, itself associated with mineralisation. The Decka target is
a basement magnetic and conductive anomaly 20km northwest of
Havieron. Both targets show consistent periodicity in that Stingray
is approximately 10km from Havieron and Decka is approximately 10km
from Stingray on the same trend, which may indicate a consistent
paragenesis for all three anomalies. In addition, both targets are
also modelled within 250 metres of surface, making them shallower
than Havieron.
The rapid commencement of drilling on the Paterson South
Tenements within four weeks of entering into the Paterson South
farm-in and joint venture arrangement is testament to both the high
quality of the targets and Greatland's drive to rapidly unlock
greater value from its Paterson region exploration portfolio.
Greatland is currently reviewing historic work across the remainder
of the +1,500km(2) Paterson South Tenements and developing access
to several other tenements to allow on-ground work to commence as
statutory and heritage approvals are obtained.
Juri, Western Australia (Greatland: 49%)
Juri is an unincorporated joint venture between Greatland (49%)
and Newcrest Operations (51%), to explore the Paterson Range
East and Black Hills exploration licences located in the Paterson
region, near Havieron. Newcrest Operations has the right to earn
up to a 75% interest in the Juri tenements by spending up to
A$20 million as part of a two-stage farm-in over five years.
===================================================================
Following an initial drilling programme which commenced in April
2021, a second exploration programme commenced in May 2022. Five
additional holes were drilled for a total of 2,086 metres to test
three targets comprising of two holes each at the Tama and A9
targets on Paterson Range East and one hole at the Black Hills
North / A27 target on Black Hills. Black Hills drill hole BHRD004
intersected anomalous gold mineralisation with Bismuth
geochemistry. Bismuth is associated with higher-grade gold
intersections in the hole, similar to the relationship observed at
Havieron. Surface sampling identified low tenor but coherent
anomalism around the CAW10-A7 prospect at Paterson Range East.
Mineralisation in drill hole BHRD004 is interpreted by Greatland
to sit within a lithological unit near the prospective Telfer
Formation contact with the Malu, known to host the mineralisation
at Telfer.
Prior to year end, Newcrest elected to assume management of the
Juri Joint Venture. Greatland and Newcrest are two of the largest
landholders in the Paterson region. Our partnerships at Havieron
and Juri are central to unlocking the full potential of the
Paterson region and we remain very excited about the prospectivity
of the Juri Joint Venture tenure. Importantly, the shift of Juri
Joint Venture management to Newcrest provides our exploration team
the opportunity to put greater focus on our portfolio of highly
prospective 100% owned tenure, together with our responsibilities
as the new manager of the Paterson South farm-in and joint venture
arrangement with RTX.
Exploration, Western Australia (Greatland: 100%)
Greater Paterson
Greatland's 100% owned Paterson region exploration projects comprise
of the Scallywag, Canning and Citadel Hill projects:
* Scallywag comprises of four wholly-owned granted
exploration licences: Scallywag, Pascalle, Rudall and
Black Hills North located adjacent to and around
Havieron. Exploration work is focused on the
discovery of intrusion related gold-copper deposits
similar to Havieron, Telfer and Winu.
* Canning comprises of two wholly-owned granted
exploration licences: Canning and Salvation Well
located approximately 175km south-east of Havieron
within the south-eastern extensions of the Paterson
region in Western Australia. The tenements contain
two large magnetic 'bullseye' anomalies similar to
the Havieron deposit magnetic signature.
* Citadel Hill is a pending exploration licence
application located approximately 145km
north-northwest of Havieron. The tenement area was
identified as a regional anomaly as part of an
internal Pilbara prospectivity analysis.
=====================================================================
During the year, a third drilling programme was conducted at the
Scallywag licence to further test ground electromagnetic conductors
for Telfer style mineralisation at the Pearl, Swan and Swan East
targets. A specialised reverse circulation rig was used to drill
pre-collars ahead of completing the holes with a diamond drill rig
with the aim of improving result turnarounds. A total of eight
reverse circulation pre-collar holes for 1,238 metres and one
diamond hole with a total depth of 489 metres, for a total of 1,727
metres, were completed.
The diamond drill hole (PDD003) returned promising anomalous
gold, copper, silver and bismuth in the drill hole, while one of
the pre-collars (A35RD001) intersected anomalous gold over 2 metres
near surface from 69 metres downhole.
At the Rudall tenement, a single diamond hole, which was
co-funded by the Government of Western Australia's Exploration
Incentive Scheme, was drilled to test the Ramses magnetic anomaly
to a total depth of 943 metres. The results of this drilling
included 18.25 metres at 22.0g/t Au from 924 metres to the end of
hole at 942.25, including 1 metre at 393g/t Au from 926 metres (see
RNS announcement titled "Rudall Exploration Results" dated 20 April
2023 for further information). Structural and geochemical work and
a future downhole electromagnetic survey is planned in the second
half of the 2023 calendar year to refine the potential for
mineralisation to extend into shallower positions within the
system.
At Canning, Greatland has completed a heritage exclusion survey
allowing access for a magneto telluric survey. The survey will
identify any conductive response associated with the magnetic
anomaly and the depth of cover over it.
Ernest Giles
The Ernest Giles project consists of two granted wholly-owned
adjoining exploration licences: Calanchini and Peterswald, and
four pending exploration licence applications: Westwood North,
Westwood West, Mount Smith and Welstead Hill which are located
approximately 250km north-east of the town of Laverton in the
Yilgarn region of Western Australia. The eastern Yilgarn Craton
is one of the most highly mineralised areas globally and is considered
by Greatland to be prospective for large gold deposits.
========================================================================
In October 2022, Greatland was awarded a drilling grant for
Ernest Giles under the Government of Western Australia's
Exploration Incentive Scheme. Greatland continued positive ongoing
Native Title land access agreement negotiations with Traditional
Owners during the year and subsequent to year end, a landmark land
access agreement with the Manta Rirrtinya Native Title Holders was
entered into, the first since their native title determination in
2018. The agreement provides for the consent to the grant of tenure
to, and land access by, Greatland over approximately 75% of the
Ernest Giles project area. Diamond drill testing on the Meadows
prospect will commence during the 30 June 2024 financial year.
Panorama
The Panorama project consists of three granted wholly-owned adjoining
exploration licences: Panorama, Panorama North and Panorama East,
and one pending exploration licence application: Corrunna Downs,
located in the Pilbara region of Western Australia. The tenements
are considered by Greatland to be highly prospective for gold,
nickel and cobalt.
======================================================================
Greatland has conducted a detailed review of historic work and
carried out soil and rock chip sampling which has identified
multiple gold anomalies. The most significant samples identified to
date lie along a north-south trending zone approximately 3.2km
long. The geological setting is a prominent ridge marking the
structural contact of basaltic and ultramafic rocks of Archean age.
Field reconnaissance along this zone has since been completed and
visual indications of mineralisation are present. A programme of
surface geology mapping and soil sampling has been planned for nine
distinct areas, encompassing targets from the airborne
electromagnetic survey previously completed.
Bromus
The Bromus project consists of two granted wholly-owned adjoining
exploration licences: Bromus and Bromus West which are considered
prospective for nickel and gold, located approximately 20km southwest
of the town of Norseman in southern Western Australia.
=======================================================================
During the year, Greatland finalised a heritage agreement with
the Native Title Holders, the Ngadju Native Aboriginal Corporation
as trustee for and representative of the Ngadju people. The
heritage agreement provides the protocol for carrying out heritage
surveys and for the monitoring of certain works.
Firetower and Warrentinna, Tasmania
In November 2022, Greatland entered into an agreement with Flynn
Gold Ltd (ASX:FG1) (Flynn Gold), under which Flynn Gold had the
option to purchase Greatland's Firetower and Warrentinna tenements.
Greatland was paid A$100,000 by Flynn Gold (satisfied by the issue
of Flynn Gold shares) in respect of this option, which was
exercisable no later than 30 June 2023. Flynn Gold exercised this
option in June 2023. The consideration for the purchase consisted
of:
(a) Initial consideration: A$200,000 (satisfied by the issue of
2,000,000 Flynn Gold shares at a deemed issue price of A$0.10 per
Flynn Gold share); and
(b) Deferred Consideration:
(i) A$500,000 upon the definition of a JORC-compliant Mineral
Resource of at least 500,000 ounces of gold in aggregate within one
or both tenements (payable in cash or Flynn Gold shares, at Flynn
Gold's election);
(ii) A$500,000 upon the issue of a permit to mine by Mineral
Resources Tasmania in respect of any part of the tenements (payable
in cash or Flynn Gold shares, at Flynn Gold's election); and
(iii) a 1% Net Smelter Royalty payable to Greatland in respect
of any production from the tenements.
Safety
Greatland's most important priority is safety. Greatland
achieved its goal of maintaining a safe workplace with no
fatalities at the Company's projects and nil Total Recordable
Injury Frequency Rate for the Company (fully owned or operated
projects) during the year.
Sustainability
On 30 June 2023, Greatland published its 2023 Sustainability
Report, the second release of a dedicated Sustainability Report
which follows Greatland's inaugural Sustainability Report which was
released in May 2022. Greatland's 2023 Sustainability Report allows
Greatland's stakeholders to obtain a better understanding of
Greatland's approach to sustainability as Greatland continues on
its journey of enhancing its approach to sustainability practices
and reporting. A copy of Greatland's 2023 Sustainability Report can
be found at: https://greatlandgold.com/sustainability .
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,
our approach to managing these are detailed below:
Risk Description Key Mitigators
Occupational health and safety Safety risks are inherent in Every Director and employee of the
exploration and mining activities and Company is committed to promoting and
include both internal and maintaining a safe
external factors requiring and sustainable workplace
consideration to reduce the environment. The Company regularly
likelihood of negative impacts. The reviews occupational health and
current highest risk, due to the safety policies and compliance with
geological spread of exploration those policies. The Company also
activities, is associated engages where required
with transportation of people to and with external occupational health and
from the project areas. safety expert consultants to ensure
that policies and
procedures are appropriate as the
Company expands its activity levels.
Commodity price risk The principal commodities that are On an ongoing basis we look at
the focus of our exploration and opportunities to further diversify
development efforts (precious our commodity portfolio.
metals and base metals assets) are In addition, we continuously review
subject to highly cyclical patterns our costs as well as consider hedging
in global demand and strategies to make
supply, and consequently, the price our projects more resilient.
of those commodities can be highly
volatile.
Havieron Feasibility Study and A Decision to Mine between the Various workstreams to support the
Decision to Mine Havieron Joint Venture participants Havieron Feasibility Study are
is required to commence continuing to be progressed
construction, development and with several value enhancing options
commercial scale mining operations at underway to maximise value and
Havieron. Before a Decision de-risk the project.
to Mine can be made, a Havieron
Feasibility Study is required, which
Newcrest Operations as
the Havieron Joint Venture Manager is
responsible for preparing.
Preparation of the Havieron
Feasibility Study is ongoing.
Funding Havieron development Raising sufficient debt and equity to In August 2022, the Company raised
fund the Company's share of the GBP29.7 million through the issuance
Havieron Joint Venture of new shares. Subsequently,
is crucial to enable the Group to Greatland executed an equity
fast track the development of investment by Wyloo of an initial
Havieron including early works strategic subscription of A$60
and mine development activities. million (GBP33.5 million) plus an
option to acquire up to an additional
GBP35 million of Greatland
shares at GBP0.10 per share.
On 30 May 2023, Greatland announced
that it had received a signed
non-binding Letter of Support
from a syndicate of banks providing
that the banks are fully supportive
and interested in
the provision of A$220 million
seven-year syndicated debt and
associated hedging facilities.
In addition, subsequent to year end,
Greatland executed a A$50 million
standby loan facility
with Wyloo.
The above strengthens our financial
position to fast track the
development of Havieron.
Recruiting and retaining highly The Company's ability to execute its We undertake ongoing initiatives to
skilled directors and employees strategy is highly dependent on the foster strong staff engagement and
skills and abilities ensure that remuneration
of its people. packages are competitive in the
market.
Mineral exploration discovery Inherent with mineral exploration is The Board regularly reviews our
that there is no guarantee that the exploration and development
Company can identify programmes and allocates capital
a mineral resource that can be in a manner that it believes will
extracted economically. maximise risk-adjusted return on
Exploration work is conducted on a capital, within our capital
systematic basis. More specifically, management plan.
exploration work is We apply advanced exploration
carried out in a phased, techniques to undercover areas and
results-based fashion and leverages a regions that we believe are
wide range of exploration methods relatively under-explored.
including modern geochemical and We focus our activities on
geophysical techniques and various jurisdictions that we believe
drilling methods. represent low political and
operational
risk. We operate in jurisdictions
where our team has considerable on
the ground experience.
Presently all of the Company's
projects are in Australia, a country
with established mining
codes, stable government, skilled
labour force, excellent
infrastructure and well-established
mining industry.
====================================== ====================================== ======================================
Directors' Report
The Directors present their report on the consolidated entity
(Greatland or the Group) consisting of the parent entity, Greatland
Gold Plc (Company) and the entities it controlled at the end of the
year ended 30 June 2023.
Directors
The Directors of Greatland in office during the year and until
the date of this report, their qualifications, experience, other
directorships held in listed companies, are as follows.
Director Experience and background
Mark Barnaba Mark is a highly experienced investment banker
and corporate advisor, having focused predominantly
Independent Non-Executive in the natural resources sector. He currently
Chairman serves as Deputy Chairman and Lead Independent
Director of the world's fourth largest iron
(Appointed 7 December ore producer Fortescue Metals Group Ltd.
2022) Mark also chairs the Hospital Benefit Fund (HBF)
Investment Committee, is an Emeritus Board Member
of University of Western Australia, Senior Fellow
for Ernst & Young Oceania and a Board Member
for Centre of Independent Studies. Mark has
previously served as a Board Member of the Reserve
Bank of Australia and as a director and Deputy
Chair of Williams Advanced Engineering Limited.
Elizabeth Gaines Elizabeth is a highly experienced business leader
with extensive international experience as a
Independent Non-Executive Chief Executive Officer. She has significant
Director and Deputy experience in the resources sector and is a
Chair part-time Executive Director of Fortescue Metals
Group Ltd, where she was previously CEO and
(Appointed 7 December presided over a heralded period of operational
2022) delivery and significant growth in shareholder
value.
Elizabeth is a Board Member of the Victor Chang
Cardiac Institute, West Coast Eagles Football
Club and the Curtin University Advisory Board.
Shaun Day Shaun has substantial experience in executive
and financial positions across mining and infrastructure,
Managing Director investment banking and international consulting
firms. Shaun has considerable capital markets
(Appointed 15 December experience with a track record of leading successful
2020) transactions including M&A of publicly listed
companies, farm-in agreements and raising capital.
Prior to joining Greatland, Shaun spent six
years as CFO of Northern Star Resources Limited,
an ASX100 company and a global-scale Australian
gold producer. Prior to Northern Star, Shaun
spent five years as CFO of SGX listed Sakari
Resources Plc which operated multiple mines
before its sale for over US$2 billion.
Shaun is currently a Non-Executive Director
of Aurumin Limited, Blue Ocean Monitoring Limited
and is an Audit and Risk Committee Member of
the University of Western Australia.
James (Jimmy) Wilson Jimmy is a highly experienced mining and natural
resources executive with deep operational experience
Executive Director across a range of commodities and jurisdictions.
He spent more than twenty five years with the
(Appointed 12 September world's biggest mining company BHP and held
2022) various senior executive positions including
President of the Iron Ore, Energy Coal and Stainless
Steel Materials divisions.
Jimmy was appointed to the Export Finance Australia
Board in December 2020 for a three-year term
and holds a Bachelor of Science (Mechanical
Engineering) from the University of Natal. He
is also the Deputy Chair of the University of
Western Australia.
Michael Alexander Alex is a senior Non-Executive Director of Greatland.
(Alex) Borrelli Alex qualified as a Chartered Accountant and
has many years experience in investment banking
Senior Independent encompassing flotations, takeovers, and mergers
Non-Executive Director and acquisitions for private and quoted companies.
Alex is also a Non-Executive Director of UK
(Appointed 18 April listed companies Bradda Head Lithium Limited,
2016) Kendrick Resources plc, Red Rock Resources plc
and Tiger Royalties and Investments plc.
Yasmin Broughton Yasmin Broughton is a qualified lawyer with
significant experience as a non-executive director
Independent Non-Executive in a diverse range of industries with a particular
Director focus on natural resources. With over twenty
years of experience working with ASX-listed
(Appointed 2 May companies, Yasmin has a deep understanding of
2023) governance, risk management, compliance and
regulation.
Yasmin currently serves as a Non-Executive Director
of RAC, Synergy (Electricity Generation and
Retail Corporation), Wright Prospecting and
VOC Group Limited. Yasmin has previously served
as Non-Executive Director of Resolute Mining
(ASX/LSE-listed gold producer), Western Areas
(ASX-listed nickel producer) and the Insurance
Commission of Western Australia.
Paul Hallam Paul is a senior mining industry professional
with more than forty years of Australian and
Independent Non-Executive international resource experience across a range
Director of commodities including both surface and underground
mining. He has global operational and corporate
(Appointed 1 September experience from his executive roles including
2021) Director of Operations with Fortescue Metals
Group Ltd, Executive General Manager of Developments
& Projects with Newcrest Mining Limited, Director
of Victorian Operations with Alcoa as well as
Executive General Manager of Base and Precious
Metals at North Ltd. Since his retirement in
2011, Paul has advised several boards as a Non-Executive
Director.
Paul is currently Non-Executive Director for
CODA Minerals Limited.
Clive Latcham Clive is a chemical engineer and mineral economist
with over thirty years experience in senior
Independent Non-Executive roles in the mining sector. Clive joined Greatland
Director from ERM - Environmental Resource Management,
the world's leading sustainability consultancy
(Appointed 15 October group, where he worked as Senior External Advisor,
2018) and advisor to the Chairman and Chief Executive
Officer.
Prior to his role at ERM, Clive worked as an
independent advisor to private equity and mining
consultancy firms, and spent nine years in senior
roles with Rio Tinto. During his time at Rio
Tinto, Clive spent four years as Copper Group
Mining Executive, where he was responsible for
managing Rio Tinto's investments in the operating
businesses of Escondida in Chile, Grasberg in
Indonesia, and Palabora in South Africa and
for the initial development of new projects
and acquisitions, including La Granja in Peru
and La Sampala in Indonesia.
=========================== ========================================================================
Directors' Interests
The Directors' holdings of shares and options in the Company as
at 30 June 2023 were as follows:
Director Number of Number of Number of
Shares Options Performance
Rights
Mark Barnaba - 100,000,000 -
Elizabeth Gaines - 55,000,000 -
Shaun Day 1,089,000 5,000,000 12,000,000
James Wilson - 40,000,000 -
Alex Borrelli 26,403,372 19,000,000 -
Yasmin Broughton - - -
Paul Hallam - 40,000,000 -
Clive Latcham 3,150,000 2,750,000 -
================== =========== ============ =============
It is noted that:
-- On 1 October 2023, after the end of the financial year, Mr
Borrelli exercised his remaining 19,000,000 options and sold
10,000,000 of the resulting shares to fund the associated exercise
costs and tax liabilities, retaining the remaining 9,000,000
resulting shares.
-- On 24 September 2023, after the end of the financial year, Mr
Latcham exercised his remaining 2,750,000 options and sold
2,050,000 of the resulting shares to fund the associated exercise
costs and tax liabilities, retaining the remaining 700,000
resulting shares.
-- On 19 September 2023, after the end of the financial year, Mr
Day was issued a further 72,700,000 options, 7,300,000 retention
rights and 3,898,737 performance rights, as detailed in the
Remuneration Report.
Principal activities
The principal activities of the Group during the year consisted
of the early works development, feasibility study and exploration
of the Havieron gold-copper project and the exploration and
evaluation of mineral tenements in Australia.
Results and dividends
-- Closing cash position of GBP31.1 million (2022: GBP10.4
million )
-- Closing debt balance of GBP41.5 million (2022: GBP43.1
million)
-- Net assets of GBP52.5 million (2022: GBP5.7 million)
-- Havieron project costs capitalised of GBP 23.4 million (2022:
GBP21.2 million) during the year
-- Loss before finance items and share-based payments of GBP
11.0 million (2022: GBP8.4 million); statutory loss of GBP 21.1
million (2022: GBP11.4 million )
-- Exploration expense of GBP3.4 million (2022: GBP3.0 million)
for the year
Going Concern
Greatland's principal activities include the development of
Havieron. At 30 June 2023 the Group had net current assets of GBP
35.4 million (2022: GBP14.8 million), with cash of GBP 31.1 million
(2022: GBP10.4 million) and advanced Havieron joint venture cash
contributions of GBP12.6 million (2022: GBP8.4 million).
In addition, as outlined in note 28 Greatland has access to a
A$50 million (c. GBP26.3 million) undrawn standby loan facility
with Wyloo.
If required, the Group has a number of options available to
manage liquidity including:
-- significantly reduce expenditure on its own exploration
programmes;
-- significantly reduce corporate costs;
-- raising additional funding through debt, equity or a
combination of both, which the Group considers it has the ability
to do, should it be required and has demonstrated an ability to do
so in the past.
Having prepared forecasts for the next twelve months, based on
current resources and assessing methods of obtaining additional
finance, the Directors believe the Group has sufficient resources
to meet its obligations.
Should the Group not achieve the matters set out above, there
may be significant uncertainty about whether it will continue as a
going concern and therefore whether it would be able to realise its
assets and extinguish its liabilities in the normal course of
business and at the amounts stated in the financial report.
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.
Likely developments and expected results
A review of the current and future development of the Group's
business is given in the Strategic Report.
Risk Management
The Board considers risk assessment to be important in achieving
its strategic objectives. There is a process of evaluation of
performance targets through regular reviews by senior management to
forecasts. Project milestones and timelines are regularly
reviewed.
A risk register is maintained by the Company that identifies key
risks in areas including corporate strategy, financial, staff,
occupational health and safety, environmental and traditional owner
engagement. The register is reviewed periodically and is updated as
and when necessary, with all employees and directors being
responsible for identifying, managing and mitigating risks.
Refer to the Annual Report for detailed information on the
principal risks and uncertainties and for further detailed
information on the financial risks refer to note 15.
Key performance indicators
The Board has defined the following Key Performance Indicators
(KPIs) during the year to monitor and assess the performance of the
Group as it advances from an exploration company into a resource
development company. These KPIs apply to the FY23 Performance
Rights, defined and described in the Remuneration Report, which
have a three-year performance period from 1 July 2022 to 30 June
2025.
Performance Target Rationale Our performance in 2023
Total Shareholder Return ( TSR) is The performance of Greatland's share TSR performance for the financial
equal to or greater than that of the price demonstrates the total return year 2023 was negative 27%, compared
VanEck Junior Gold to the shareholders. to 9% for GDXJ.
Miners ETF (GDXJ) Our strategy aims to maximise The TSR performance over the
shareholder returns through the three-year performance period from 1
commodity cycle, and TSR is July 2022 to 30 June 2025
a direct measure of that. is a performance target for the FY23
Performance Rights issued under the
Group's Long Term
Incentive Plan.
Investor engagement The proposed ASX cross-listing is an During the financial year, the
The Group completes its proposed ASX important pillar to create a Company completed an institutional
cross-listing, actively engages with fit-for-purpose platform equity placement of approximately
a broad cross section and pursue objectives including GBP30m including a cornerstone
of investors and grows the proportion increasing equity research and investment by Tribeca Investment
of its shares held by institutional institutional ownership, enhanced Partners, and a further equity
investors. capital markets profile, access to investment by Wyloo of approximately
deeper pools of capital to support GBP33.5m. The Company significantly
longer term growth, advanced the proposed
and enhanced flexibility for growth ASX listing during the year and is
initiatives including corporate and well positioned to resume the process
asset level transactions. in 2024.
ESG Sustainability Report Greatland is committed to safe, In June 2023, the Group published its
The Group publishes an annual responsible and sustainable 2023 Sustainability Report. This
Sustainability Report with enhanced exploration and development. The assessment reveals
levels of disclosure relative Company continues to focus on a compliance driven approach to ESG
to financial year 2022. improving health and safety training and forms a baseline for business
and processes, and on further operations to enhance
strengthening relationships with the our sustainability footprint.
indigenous communities in the areas
that we operate,
as well as on our ESG focus for
developing a responsible and
sustainable resources company.
Native Title and Environment In areas that the Group operates, we Through formal processes outlined in
The Group maintains positive are committed to understanding, Land Access Agreements, Greatland has
relations with all Native Title respecting and responsibly engaged Traditional
groups in respect of the land managing our impacts on Aboriginal Owners to undertake several surveys
it operates on, preserves heritage cultural heritage, and co-operating in advance of field activities.
sites of cultural significance as and forming positive Additionally, Greatland
required to comply with relationships with Aboriginal has worked alongside Aboriginal
applicable permits and remains in communities. consultants for ground disturbance
compliance with granted environmental The Group is committed to operating activities where cultural
approvals. in an environmentally responsible heritage monitoring has been deemed
manner and has developed appropriate through survey or by
this Policy to assist in managing the direction of the prescribed
impacts its activities have on the body corporate.
environment.
Greatland continues to work with our
many traditional owners to understand
and manage our
potential impacts to Aboriginal
cultural heritage.
Performance Target Rationale Our performance in 2023
Feasibility Study for Havieron Havieron provides an outstanding The Feasibility Study for the
The Group actively manages its cornerstone project on which to Havieron project continued during the
relationship with its joint venture develop and pursue the Company's year and explored further
partner and critically aim to become a multi asset producer. value enhancing options to maximise
reviews, analyses and provides It enables the Company to leverage value and derisk the project. It also
detailed input (based on its review our established footprint considered various
and analysis) into the and proven methodology in the factors including but not limited to
Havieron Feasibility Study. Paterson region, one of the world's environmental, social and economic
most attractive jurisdictions impacts.
for discoveries of tier-one,
gold-copper deposits.
Funding Raising sufficient debt and equity to During the financial year the Company
The Group has sufficient funding in fund the Company's share of the raised approximately GBP64 million in
place to fund its share of the Havieron Joint Venture additional capital
Havieron development without is crucial to enable the Group to through the issuance of new shares
dilution of its joint venture fast track development of Havieron and progressed a funding process with
interest. including early works top tier banks resulting
and other mine development in a non-binding Letter of Support in
activities, plus accelerate respect of a proposed A$220 million
exploration activities at the Group's debt financing facility.
100% owned licences to target new In addition, subsequent to year end,
discoveries similar to Havieron in Greatland executed a A$50 million
the Paterson region. standby loan facility
with Wyloo.
The above strengthened our financial
position to continue the development
of Havieron.
JORC Resource Growth of the JORC Resource is a Over 55,000 metres of drilling was
The Group grows its Mineral Resource crucial component to Greatland's long completed during the year, focusing
base by at least 20% (noting that term strategy. on increasing confidence
joint venture mining in the lower levels of the South East
tenements are assessed on a 100% Crescent, as well as further
basis). evaluation of the Eastern
Breccia.
This drilling will be incorporated
into an Updated Mineral Resource that
will be included
in the Feasibility Study.
Corporate development Corporate development activity is a Significant corporate activity was
The Group actively pursues portfolio crucial component to amplify undertaken during 2023, including
enhancing business development Greatland's growth strategy successful conclusion
opportunities which are and support the transition of the of the Havieron 5% option process,
presented to the Board for approval. business from an explorer to a sale of the Tasmanian tenements to
developer and producer. Flynn Gold, entering
into the farm-in and joint venture
agreement with RTX, progressing the
proposed ASX Listing
in 2023, and consideration and
analysis of potential merger and
acquisition opportunities.
====================================== ====================================== ======================================
Share Capital
Information relating to shares issued during the year is given
in note 14 to the accounts.
Substantial Shareholdings
On 30 June 2023 and 31 October 2023, the following were
registered as being interested in 3% or more of the Company's
ordinary share capital:
31 October 2023 30 June 2023
Ordinary Share Ordinary Share
shares % shares %
of GBP0.001 of GBP0.001
each each
Hargreaves
Lansdown
(Nominees)
Limited
(15942) 596,018,544 11.71% 594,359,327 11.73%
Lynchwood
Nominees
Limited
(2006420) 456,729,841 8.97% 458,734,422 9.05%
Interactive
Investor
Services
Nominees
Limited
(SMKTISAS) 361,347,494 7.10% 358,867,954 7.08%
Hargreaves
Lansdown
(Nominees)
Limited
(HLNOM) 348,483,959 6.85% 347,409,795 6.85%
Hargreaves
Lansdown
(Nominees)
Limited
(VRA) 316,783,852 6.22% 309,745,208 6.11%
Vidacos Nominees Limited (FGN) 213,926,382 4.20% 258,015,555 5.09%
Barclays Direct Investing Nominees
Limited 226,281,530 4.45% 230,608,624 4.55%
Interactive Investor Services
Nominees Limited (SMKTNOMS) 216,820,713 4.26% 221,958,097 4.38%
State
Street
Nominees
Limited
(OM02) 196,214,615 3.85% 209,395,552 4.13%
HSDL
Nominees
Limited
(MAXI) 187,400,374 3.68% 185,721,320 3.66%
==================================== ============= ======= ============= =======
Additionally, the Company has been notified, in accordance with
DTR 5 of the FCA's Disclosure and Transparency Rules, or is aware,
of the following interests in its ordinary shares of shareholders
with an interest of 3% or more of the Company's ordinary share
capital:
31 October 2023 30 June 2023
Ordinary Share Ordinary Share
shares % shares %
of GBP0.001 of GBP0.001
each each
Wyloo Consolidated Investments
Pty Ltd 430,024,390 8.45% 430,024,390 8.45%
Van Eck Associates Corporation 250,743,036 4.93% 250,743,036 4.93%
================================ ============= ====== ============= ======
Political donations
During the period there were no political donations (2022:
nil).
Auditors
PKF Littlejohn LLP has served as the Company's auditors since
2020. The Directors will place a resolution before the annual
general meeting to reappoint PKF Littlejohn LLP as auditors for the
coming year.
PKF Littlejohn LLP has signified its willingness to continue in
office as auditor.
Directors' Indemnity
The Company has maintained Directors' and Officers' insurance
during the year. Such provisions remain in force at the date of
this report.
Events after the reporting period
Standby loan facility executed
Subsequent to year end, the Company executed an unsecured A$50
million standby facility with Wyloo Consolidated Investments Pty
Ltd (Wyloo). Drawdown is available to Greatland from 1 November
2023, with repayment required by the maturity date of 31 December
2024. The facility has a 3% upfront fee and 1% utilisation fee.
Interest is charged at benchmark (Australian BBSY) plus a margin of
7.5% p.a. The debt was undrawn at the date of this report.
Grant of employee incentive options
On 19 September 2023, Greatland granted 302,700,000
Co-Investment Options with an exercise price of GBP0.119,
31,100,000 Retention Rights and 13,306,047 FY23 Performance Rights
at an exercise price of GBP0.001 to employees under the Company's
employee share plan. Collectively the options and rights are an
important element in the attraction and retention of individuals
pivotal to Greatland's growth and their alignment with shareholder
outcomes. Further details are included in the Annual Report.
Exercise of Options and Director Dealings
On 1 October 2023, Mr Borrelli, Non-Executive Director,
exercised his remaining 14,000,000 options over ordinary shares at
a price of GBP0.0028 per share, 2,500,000 options at GBP0.014 and
2,500,000 options at GBP0.02 per share for a total consideration of
GBP124,200. Mr Borrelli retained 9,000,000 of the resulting shares
and sold 10,000,000 of the resulting shares to fund the associated
exercise cost and tax liabilities. Mr Borrelli's shareholding has
now increased to 35,403,372 ordinary shares representing 0.70% of
the total voting rights.
In addition, on 24 September 2023, Mr Latcham, Non-Executive
Director, exercised 1,500,000 existing options over ordinary shares
at a price of GBP0.025 per share and 1,250,000 at a price of
GBP0.03 per share, for a total consideration of GBP75,000. Mr
Latcham retained 700,000 of the resulting shares and sold 2,050,000
of the resulting shares to fund the associated exercise cost and
tax liabilities. Mr Latcham's shareholding has now increased to
3,850,000 ordinary shares representing 0.08% of the total voting
rights.
Newmont Corporation's acquisition of Newcrest Mining Limited
becomes effective
On 18 October 2023, Newcrest, the ultimate parent company of
Newcrest Operations which is the Joint Venture Manager of Havieron,
announced that the scheme of arrangement under which Newcrest will
be acquired by Newmont Corporation was legally effective.
Implementation date is planned for 6 November 2023. For further
updates refer to www.newmont.com.
Streamlined energy and carbon reporting ("SECR")
Greenhouse gas emissions, energy consumption and energy
efficiency disclosures have not been provided because the Company
has consumed less than 40,000 kWh of energy during the period in
the UK.
Corporate Governance
A corporate governance statement follows in the Annual
Report.
Control Procedures
The Board has approved financial budgets and cash forecasts. In
addition, it has implemented procedures to ensure compliance with
accounting standards and effective reporting.
Environmental Responsibility
The Company is aware of the potential impact that its subsidiary
companies and operations may have on the environment. The Company
ensures that it and its subsidiaries at a minimum comply with the
local regulatory requirements with regard to the environment.
Cultural awareness
The Company continues to engage with the traditional land owners
to understand and respect cultural heritage as a necessary part in
obtaining access to projects across its Australian operations and
operate within the appropriate protocols.
Health and Safety
The Group aims to achieve and maintain a high standard of
workplace health, safety and wellbeing. In order to achieve this
objective, the Group provides mental health wellbeing training,
mentoring and supervision for employees and ongoing pastoral care
support plus regularly reviewing and implementing high standards
for workplace safety.
Employment Policies
The Group is committed to promoting policies which ensure that
high calibre employees are attracted, retained and motivated, to
ensure the ongoing success for the business. Employees and those
who seek to work within the Group are treated equally regardless of
gender, marital status, disability, race, ethnicity or any other
basis. We provide equal opportunities for career development and
promotion as well as providing employees with appropriate training
opportunities.
Provision of Information to Auditor
So far as each of the Directors is aware at the time this report
is approved:
-- there is no relevant audit information of which the Company's
auditor is unaware; and
-- the Directors have taken all steps that they ought to have
taken to make themselves aware of any relevant audit information
and to establish that the auditor is aware of that information.
By order of the Board
Shaun Day
Managing Director
5 November 2023
consolidated statement of comprehensive income
for the year ended 30 June 2023
Note 2023 2022
GBP'000 GBP '000
Revenue - -
Exploration and evaluation expenses (3,383) (3,022)
Administrative expenses (5,723) (5,223)
Share-based payment expense 24 (9,787) (193)
Transaction costs related to proposed (1,879) -
IPO
Loss before finance items and tax (20,772) (8,438)
Net foreign exchange losses 13 (1,668) (2,736)
Other income 4 194 -
Finance income 6 1,228 2
Finance costs 6 (102) (194)
Loss before tax (21,120) (11,366)
Income tax expense 7 - -
Loss for the year (21,120) (11,366)
Other comprehensive income:
Exchange differences on translation
of foreign operations (4,906) 518
Total comprehensive income for the year
attributable to equity holders of the
Company (26,026) (10,848)
Earnings per share for loss attributable
to the ordinary equity holders of the
Company:
Basic and diluted earnings per share
(pence) 8 (0.44) (0.28)
========================================== ===== ========= ==========
The above consolidated statement of comprehensive income should
be read in conjunction with the accompanying notes.
Consolidated Statement of Financial Position
as at 30 June 2023
2023 2022
Note GBP'000
------------------------------------------- ----- --------- ---------
ASSETS
Exploration and evaluation assets 16 264 94
Mine development 17 59,931 35,582
Right of use asset 18 418 272
Property, plant and equipment 19 84 95
Financial assets held at fair value 88 -
through profit and loss
Total non-current assets 60,785 36,043
------------------------------------------- ----- --------- ---------
Cash and cash equivalents 9 31,149 10,386
Advanced joint venture cash contributions 10 12,576 8,415
Trade and other receivables 11 116 -
Other current assets 414 427
Total current assets 44,255 19,228
------------------------------------------- ----- --------- ---------
TOTAL ASSETS 105,040 55,271
------------------------------------------- ----- --------- ---------
LIABILITIES
Trade and other payables 12 8,511 3,269
Lease liabilities 18 128 208
Provisions 25 186 919
Total current liabilities 8,825 4,396
------------------------------------------- ----- --------- ---------
Borrowings 13 41,503 43,103
Lease liabilities 18 284 70
Provisions 25 1,950 1,976
Total non-current liabilities 43,737 45,149
------------------------------------------- ----- --------- ---------
TOTAL LIABILITIES 52,562 49,545
------------------------------------------- ----- --------- ---------
NET ASSETS 52,478 5,726
------------------------------------------- ----- --------- ---------
EQUITY
Share capital 14 5,069 4,071
Share premium 14 70,821 36,166
Merger reserve 14 27,494 225
Foreign currency translation reserves (4,259) 647
Share-based payment reserve 10,173 335
Retained earnings (56,820) (35,718)
------------------------------------------- ----- --------- ---------
TOTAL EQUITY 52,478 5,726
------------------------------------------- ----- --------- ---------
The above consolidated statements of financial position should
be read in conjunction with the accompanying notes.
Mark Barnaba Shaun Day
Chairman Managing Director
Consolidated Statement of Changes in Equity
for the year ended 30 June 2023
Foreign
currency Share-based
Share Share Merger translation payment Retained Total
capital premium reserve reserve reserves earnings equity
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
At 1 July 2022 4,071 36,166 225 647 335 (35,718) 5,726
Loss for the
year - - - - - (21,120) (21,120)
Other
comprehensive
income - - - (4,906) - - (4,906)
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
Total
comprehensive
loss for the
year - - - (4,906) - (21,120) (26,026)
Transactions
with
owners in
their capacity
as owners:
Share-based
payments 24 - - - - 9,995 - 9,995
Transfer on
exercise
of options - - - - (157) 157 -
Share capital
issued 14 998 34,685 29,393 - - (139) 64,937
Cost of share
issue 14 - (30) (2,124) - - - (2,154)
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
Total
contributions
by and
distributions
to owners of
the Company 998 34,655 27,269 - 9,838 18 72,778
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
At 30 June
2023 5,069 70,821 27,494 (4,259) 10,173 (56,820) 52,478
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
Foreign
currency Share-based
Share Share Merger translation payment Retained Total
capital premium reserve reserve reserves earnings equity
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
At 1 July 2021 3,948 24,064 225 129 178 (24,388) 4,156
Loss for the
year - - - - - (11,366) (11,366)
Other
comprehensive
income - - - 518 - - 518
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
Total
comprehensive
loss for the
year - - - 518 - (11,366) (10,848)
Transactions
with
owners in
their capacity
as owners:
Share-based
payments 24 - - - - 193 - 193
Transfer on
exercise
of options - - - - (36) 36 -
Share capital
issued 14 123 12,797 - - - - 12,920
Cost of share
issue 14 - (695) - - - - (695)
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
Total
contributions
by and
distributions
to owners of
the Company 123 12,102 - - 157 36 12,418
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
At 30 June
2022 4,071 36,166 225 647 335 (35,718) 5,726
--------------- ------- --------- --------- --------- ------------ ------------ ---------- ---------
The above consolidated statement of changes in equity should be
read in conjunction with the accompanying notes.
Consolidated Statement of Cash Flows
for the year ended 30 June 2023
Note 2023 2022
------------------------------------------- ----- --------- ---------
Cash flows from operating activities
Loss before tax (21,120) (11,366)
Adjustments for:
Share-based payment expense 24 9,787 193
Depreciation and amortisation 4 224 171
Other non-cash items (103) 14
Unwind of discount on provisions 25 91 177
Unrealised foreign exchange loss 1,668 2,736
Investing interest income 6 (1,228) (2)
Lease liability interest expense 18 7 14
Movement in operating assets /
liabilities:
Decrease in other current assets 105 83
(Increase) in trade and other receivables (99) -
(Decrease) / increase in payables
& other liabilities (836) 2,022
Increase / (decrease) in provisions 37 (3)
Net cash outflow from operating
activities (11,467) (5,961)
------------------------------------------- ----- --------- ---------
Cash flows from investing activities
Interest received 1,082 2
Interest paid - (16)
Payments for exploration and evaluation
assets - (90)
Payments for mine development and
fixed assets (14,522) (20,453)
Payments in advance for joint venture
contributions (13,406) (8,415)
Net cash outflow from investing
activities (26,846) (28,972)
------------------------------------------- ----- --------- ---------
Cash flows from financing activities
Proceeds from issue of shares 14 63,909 12,920
Transaction costs from issue of
shares 14 (2,154) (695)
Proceeds from borrowing facilities 13 - 26,495
Repayment of lease obligations (206) (55)
Payments for prepaid borrowing costs
for debt - (276)
Net cash inflow from financing
activities 61,549 38,389
------------------------------------------- ----- --------- ---------
Net increase in cash and cash equivalents 23,236 3,456
Effects of exchange rate differences
on cash and cash equivalents (2,473) 718
Cash and cash equivalents at the
beginning of the period 10,386 6,212
------------------------------------------- ----- --------- ---------
Cash and cash equivalents at the
end of the year 9 31,149 10,386
------------------------------------------- ----- --------- ---------
The above consolidated statement of cash flows should be read in
conjunction with the accompanying notes.
PRINCIPAL ACCOUNTING POLICIES
1 Corporate information
The consolidated financial statements of Greatland Gold plc and
its subsidiaries (collectively, the Group) for the year ended 30
June 2023 were authorised for issue in accordance with a resolution
of the Directors on 5 November 2023.
Greatland Gold plc is a public limited company incorporated and
domiciled in England and Wales. The Company's ordinary shares are
traded on LSE AIM (AIM:GGP).
2 Basis of preparation
The consolidated financial statements of Greatland Gold plc
(Greatland or the Group) have been prepared in accordance with
UK-adopted international accounting standards and in accordance
with the requirements of the Companies Act 2006.
The financial statements have been prepared on the historical
cost basis, except for certain financial instruments and
cash-settled share-based payments which have been measured at fair
value.
Going Concern
The Group's principal activities include the development of
Havieron. As at 30 June 2023, the Group's net current assets of
GBP35.4 million (2022: GBP14.8 million), with cash of GBP 31.1
million (2022: GBP10.4 million) and advanced Havieron joint venture
cash contributions of GBP12.6 million (2022: GBP8.4 million).
In addition, as outlined in note 28, Greatland has access to a
A$50 million (c. GBP26.3 million) undrawn standby loan facility
with Wyloo Consolidated Investments Pty Ltd (Wyloo).
Management has prepared cash flow forecasts for the next twelve
months under various scenarios. These scenarios anticipate the
Group will be able to meet its commitments and pay its debts as and
when they fall due.
If required, the Group has a number of options available to
manage liquidity including:
-- significantly reduce expenditure on its own exploration
programmes;
-- significantly reduce corporate costs;
-- raising additional funding through debt and equity, or a
combination of both, which the Company considers it has the ability
to do so, should it be required and has demonstrated an ability to
do so in the past.
Should the directors not achieve the matters set out above,
there is significant uncertainty whether the Company will continue
as a going concern and therefore whether they will realise its
assets and extinguish its liabilities in the normal course of
business and at the amounts stated in the financial report.
Greatland has considered sensitivities which include increases
to the Havieron development costs. In this situation, the Company
can mitigate expenditure including ceasing exploration activities
and reducing corporate costs. Having prepared forecasts based on
current resources and assessing methods of obtaining additional
finance, the Directors believe the Group has sufficient resources
to meet its obligations for a period of twelve 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.
Rounding
The amounts presented in this financial report have been rounded
to the nearest GBP1,000 where noted (GBP'000) under the option
available to the Company under the Companies Act 2006.
Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires management to
use estimates, judgements and assumptions. Application of different
assumptions and estimates may have a significant impact on
Greatland's net assets and financial results. Estimates and
assumptions are reviewed on an ongoing basis and are based on the
latest available information at each reporting date.
This note provides an overview of the areas that involved a
higher degree of judgement and complexity, or areas where
assumptions are significant to the financial statements. Detailed
information about each of these estimates and judgements is
included in other notes together with information about the basis
of calculation for each affected line item in the financial
statements.
2 Basis of preparation (continued)
Description Key estimate or judgement Notes
Mine development The recoverable amount of mine development is Note
dependent on the successful development and 17
commercial exploration, or alternatively, sale
of the respective area of interest.
Provisions Rehabilitation, restoration and dismantling Note
provisions are reassessed at the end of each 25
reporting period. The estimated costs include
judgement regarding the Group's expectation
of the level of rehabilitation activities that
will be undertaken, timing of cash flows, technological
changes, regulatory obligations, cost inflation
and discount rates.
Share-based The Group measures the cost of share-based payment Note
payment expense expenses with employees by reference to the 24
fair value of the equity instruments at the
date at which they are granted. The fair value
was determined using a Monte Carlos and Black-Scholes
model which includes key assumptions.
Going concern The ability of the Company to continue as a Note
going concern depends upon continued access 2
to sufficient capital. Judgement is required
in the estimation of future cash flows.
Loan due The parent entity holds a loan due from a 100% Note
from subsidiary owned subsidiary. The recoverable amount of 11
the loan is dependent on the successful development
and commercial exploration , or alternatively,
sale of the respective area of interest.
================= ========================================================= ======
Basis of consolidation
The consolidated financial statements comprise of the financial
statements of Greatland Gold plc and its subsidiaries it controls
(as outlined in note 21). Accounting for joint ventures is included
in note 22.
Subsidiaries are those entities controlled directly or
indirectly by the Company. The Group controls an entity 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 are
included in the Consolidated Statement of Comprehensive Income from
the date of acquisition using the same accounting policies as 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.
All intra-group balances and transactions, including any
unrealised 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 unrealised
gains, but only to the extent that there is no evidence of
impairment.
Foreign currencies
Both the functional and presentational currency of Greatland
Gold plc is sterling (GBP). Each entity in the Group determines its
own functional currency, the primary economic environment in which
the entity operates, and items included in the financial statements
of each entity are measured using that functional currency.
Transactions in foreign currencies are recorded at the spot rate
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 Statement of Comprehensive Income .
On consolidation of a foreign operation, assets and liabilities
are translated at the balance sheet rate, income and expenses are
translated at average foreign currency rates prevailing for the
relevant period. Gains/losses arising on translation of foreign
controlled entities into pounds sterling are taken to the foreign
currency translation reserve.
Other accounting policies
Significant and other accounting policies that summarise the
measurement basis used and are relevant in understanding the
financial statements are provided throughout the notes to the
financial statements.
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.
2 Basis of preparation (continued)
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 IFRS 17: Insurance Contracts - effective 1
January 2023
-- Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current - effective
1 January 2023*
-- 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 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 are not expected to be
material.
FINANCIAL PERFORMANCE
3 Segmental information
An operating segment is a component of the Group that engages in
business activities from which it may earn revenue and incur
expenditure and about which separate financial information is
available that is evaluated regularly by the Group's Chief
Operating Decision Makers, who is the Managing Director, in
deciding how to allocate resources and in assessing
performance.
Segment name Description
UK The UK sector consists of the parent company which
provides investor relations and corporate functions
as well as administrative and management services
to its subsidiaries based in Australia.
Australia This segment consists of the development activities
for Havieron and exploration and evaluation activities
throughout Australia.
============= ========================================================
Segment information is evaluated by the executive management
team and is prepared in conformity with the accounting policies
adopted for preparing the financial statements of the Group.
Segment results
Income statement for the year ended UK Australia Group
30 June 2023 GBP'000 GBP'000 GBP'000
Revenue - - -
Exploration and evaluation costs - (3,286) (3,286)
Administrative costs (1,102) (4,494) (5,596)
Transaction costs related to the proposed
IPO (1,879) - (1,879)
Loss for the segment (2,981) (7,780) (10,761)
Depreciation and amortisation expenses (13) (211) (224)
Segment result ( 2,994) (7,991) (10,985)
Share-based payment expense (9,787)
Foreign exchange gain / (losses) (1,668)
Other income 194
Finance income 1,228
Finance expense (102)
Loss before income tax (21,120)
Income tax expense -
Loss after income tax (21,120)
=========================================== ========= ========== =========
3 Segmental information (continued)
Income statement for the year ended UK Australia Group
30 June 2022 GBP'000 GBP'000 GBP'000
Revenue - - -
Exploration and evaluation costs - (2,985) (2,985)
Administrative costs (1,980) (3,109) (5,089)
Loss for the segment (1 ,980) (6,094) (8,074)
Depreciation and amortisation expenses (38) (133) (171)
Segment result (2,018) (6,227) (8,245)
Share-based payment expense (193)
Foreign exchange losses (2,736)
Finance income 2
Finance expense (194)
Loss before income tax (11,366)
Income tax expense -
Loss after income tax (11,366)
======================================== ========= ========== =========
Adjustments and eliminations
Share-based payment expense, foreign exchange losses, other
income, finance income, finance costs and taxes are not allocated
to individual segments as they are managed on a Group basis.
Segment assets and liabilities
Assets and liabilities as at 30 June UK Australia Group
2023 GBP'000 GBP'000 GBP'000
Segment assets 568 104,472 105,040
Segment liabilities (383) (52,179) (52,562)
Assets and liabilities as at 30 June UK Australia Group
2022 GBP'000 GBP'000 GBP'000
Segment assets 711 54,560 55,271
Segment liabilities (1,954) (47,591) (49,545)
====================================== ========= ========== =========
4 Other income and expenses
Other income
Note 2023 2022
GBP'000 GBP'000
Government grants (a) 90 -
Other gains 104 -
Total other income 194 -
=================== ========= ========= =========
(a) Government grant
Greatland was awarded a government grant of GBP0.1 million to
co-fund exploration drilling and mobilisation costs at its 100%
owned Rudall licence in the Paterson region under the Western
Australian Government's Exploration Incentive Scheme. There are no
unfulfilled conditions or other contingencies attached to this
grant.
Breakdown of expense by nature
2023 2022
GBP'000 GBP'000
Amortisation of right-of-use asset 197 133
Depreciation 27 38
Total amortisation and depreciation 224 171
====================================== ========= =========
5 Employee information
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Wages and salaries 3,352 2,150 501 185
Bonus 863 729 - -
Pension / superannuation 349 171 24 2
Share-based payments 9,787 193 8,687 76
Total director and employee
benefit expense 14,351 3,243 9,212 263
Average Average Average Average
Number Number Number Number
Exploration 11 9 - -
Corporate and other 14 8 4 2
============================= ========= ========= ========= =========
For further details on Director's remuneration refer to
Remuneration Report.
Recognition and measurement
Employee benefits
Wages, salaries and defined contribution superannuation expenses
are recognised as and when employees render their services.
Expenses for non-accumulating personal leave are recognised when
the leave is taken and measured at the rates paid or payable.
Share-based payments
The accounting policy, key estimates and judgements relating to
employee share-based payments are set out in note 24 of the Annual
Report.
6 Finance income and finance costs
Note 2023 2022
GBP'000 GBP'000
Finance income
Interest income 1,228 2
Total finance income 1,228 2
Finance costs
Interest on lease liabilities (7) (15)
Unwinding of discount on provisions 25 (91) (177)
Other (4) (2)
Total finance costs (102) (194)
===================================== ===== ========= =========
Recognition and measurement
Interest income is recognised as interest accrues using the
effective interest method.
Provisions and other payables are discounted to their present
value when the effect of the time value of money is significant.
The impact of the unwinding of these discounts is reported in
finance costs.
Borrowing costs
General and specific borrowing costs that are directly
attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time that is
required to complete and prepare the asset for its intended use or
sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or
sale.
All other borrowing costs are recognised in income in the period
in which they are incurred.
7 Taxation
2023 2022
GBP'000 GBP'000
Components of income tax:
Deferred tax - temporary differences - -
Current tax - -
Income tax expense - -
===================================== ========= =========
There was no deferred or current tax during the year or in prior
year.
Factors affecting tax charge for the 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% (2022: 19%) and Australia of 30% (2022: 30%). The
differences are explained below:
2023 2022
GBP'000 GBP'000
Loss before income tax (21,120) (11,366)
Weighted average applicate rate of tax of
24% (2022: 28%) (5,052) (3,148)
Increase (decrease) in income
tax due to:
Share-based payments 1,981 652
Unwind of rehabilitation provision 30 53
Temporary differences (1,730) (1,131)
Net deferred tax assets not
brought to account 4,771 3,574
Income tax expense - -
============================================ ========= =========
Tax losses
2023 2022
GBP'000 GBP'000
Unused tax losses for which no deferred
tax asset has been recognised 57,967 35,433
Potential tax benefit - average effective
tax rate of 28% 16,063 9,921
============================================ ========= =========
The Group has unrecognised carried forward losses for which no
deferred tax asset is recognised as the statutory requirements for
recognising those deferred tax assets have not yet been met. The
Group recognises the benefit of tax losses only to the extent of
anticipated future taxable income or gains in relevant
jurisdictions. These losses do not expire. Unrecognised UK revenue
losses for which no deferred tax asset has been recognised are
GBP11.3 million (2022: GBP9.8 million). Unrecognised Australian
revenue losses for which no deferred tax asset has been recognised
are approximately A$88.3 million (GBP46.4 million) (2022: GBP25.6
million).
Recognition and measurement
Current tax assets and liabilities for the period are measured
at 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 reporting date in the countries where the Group operates.
Full provision is made for deferred taxation resulting from
timing differences which have arisen but not reversed at the
reporting date.
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.
The Group offsets deferred tax assets and deferred tax
liabilities if, and only if, it has a legally enforceable right to
set off current tax assets and current tax liabilities and the
deferred tax assets and deferred tax liabilities relate to income
taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities which intend either to
settle current tax liabilities and assets on a net basis, or to
realise the assets and settle the liabilities simultaneously, in
each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
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 reporting 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.
7 Taxation (continued)
Tax consolidation
Greatland Holdings Group Pty Ltd, a 100% owned subsidiary of
Greatland Gold plc, and its 100% owned Australian resident
subsidiaries formed a tax consolidated group with effect from 14
February 2023. Greatland Holdings Group Pty Ltd is the head entity
of the tax consolidated group. Members of the tax consolidated
group have entered into a tax funding agreement under which the
wholly-owned entities fully compensate Greatland Holdings Group Pty
Ltd for any current tax payable assumed and are compensated by
Greatland Holdings Group Pty Ltd for any current tax receivable and
deferred tax assets related to unused tax losses or unused tax
credits that are transferred to Greatland Holdings Group Pty Ltd
under the tax consolidation.
8 Earnings per Share
2023 2022
GBP'000 GBP'000
Loss for the period (21,120) (11,366)
Weighted average number of ordinary
shares of GBP0.001 in issue 4,849,928,345 4,016,373,291
Loss per share (0.44) pence (0.28) pence
====================================== ============== ==============
The weighted average number of the Group's shares including
outstanding options is 4,921,573,345 (2022: 4,097,373,291).
Dilutive earnings per share are not included on the basis inclusion
of potential ordinary shares would result in a decrease in loss per
share and is considered anti-dilutive.
Subsequent to year end , the following transactions occurred
that were not retrospectively adjusted in the calculation of
earnings per share:
-- Greatland granted 302,700,000 Co-Investment Options with an
exercise price of GBP0.119, 31,100,000 Retention Rights and
13,306,047 FY23 Performance Rights at an exercise price of GBP0.001
to employees under the Company's employee share plan. These
transactions were not retrospectively adjusted in the calculations
of earnings per share.
-- Mr Borrelli exercised his remaining 19,000,000 options and Mr
Latcham exercised his 2,750,000 remaining options.
For further details, refer to events after the reporting period
in note 28.
Recognition and measurement
Basic earnings per share
Basic earnings per share is calculated by dividing:
-- the profit attributable to owners of the company, excluding
any costs of servicing equity other than ordinary shares
-- by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for any bonus elements in the
ordinary shares issued during the year and excluding treasury
shares
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into account:
-- the after-income tax effect of interest and other financing
costs associated with dilutive potential ordinary shares; and
-- the weighted average number of additional ordinary shares
that would have been outstanding assuming the conversion of all
dilutive potential ordinary shares.
CAPITAL MANAGEMENT
9 Cash and cash equivalents
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank 25,794 10,386 489 634
Short-term deposits 5,355 - - -
Total cash and cash equivalents 31,149 10,386 489 634
================================= ========= ========= ========= =========
Recognition and measurement
Cash and cash equivalents in the consolidated statement of
financial position and consolidated statement of cash flows
comprise cash at bank and short-term deposits that are readily
convertible to known amounts of cash with insignificant risk of
change in value. Short-term deposits are usually between one to
three months depending on the short-term cash flow requirements of
the Group. The Group holds short-term deposits with financial
institutions that have a long term credit rating of AA- or
above.
10 Advanced joint venture cash contributions
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Havieron joint venture cash
calls in advance 12,576 8,415 - -
Total advanced joint venture
cash contributions 12,576 8,415 - -
============================== ========= ========= ========= =========
Recognition and measurement
Joint venture cash calls are paid in advance of expenditure
being incurred. Once the funds have been incurred they are
transferred out of current assets and into the relevant asset or
expenditure depending on the nature of the transaction.
11 Trade and other receivables
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
GST receivable 116 - - -
Loans due from subsidiaries - - 92,721 33,046
Total trade and other
receivables 116 - 92,721 33,046
============================= ========= ========= ========= =========
Recognition and measurement
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 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.
Key estimates and assumptions - Impairment on loan due from subsidiary
The Company holds loans due from its 100% owned subsidiaries.
The recoverable amount of the loan is dependent on the successful
development and commercial exploration of Havieron, or alternatively,
sale of the respective area of interest. Management has concluded
the loans will be recoverable on this basis.
=======================================================================
12 Trade and other payables
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Trade and other payables 1,492 101 197 -
Payroll tax and other statutory
liabilities 192 281 - -
Juri joint venture funds
received in advance 28 949 - -
Accruals 6,799 1,938 - 1,023
Total trade and other payables 8,511 3,269 197 1,023
================================= ========= ========= ========= =========
12 Trade and other payables (continued)
Recognition and measurement
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. The amounts
are unsecured and are usually paid within 30 days of
recognition.
Employee benefits
Short term employee benefits are liabilities for wages and
salaries, including non-monetary benefits, annual leave and
accumulating sick leave that are expected to be settled wholly
within 12 months after the end of the period in which the employees
render the related service are recognised in respect of employees'
services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled.
The liabilities are presented as current other payables and
accruals in the statement of financial position.
13 Borrowings
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Opening balance 43,103 12,189 - -
Debt drawdown - 24,235 - -
Facility fees - 186 - -
Capitalised interest 45 2,074 - -
Effect of foreign exchange
revaluation 1,661 2,736 - -
Adjustment of currency
translation (3,306) 1,683 - -
Total non-current borrowings 41,503 43,103 - -
============================== ========= ========= ========= =========
The borrowings presented above relate to a loan agreement with
Newcrest Operations Limited dated 29 November 2020 in respect of
Havieron. As at 30 June 2023, the loan was fully drawn down. The
key terms of the facility with Newcrest include:
-- The loan is made up of Facility A and Facility B with values
of US$20 million and US$30 million respectively, in addition to
capitalised interest;
-- Interest is calculated on the LIBOR rate plus a margin of 8%
annually and is calculated every 90 days. . Following the removal
of LIBOR this was subsequently updated to SOFR plus a margin of
8.26161%;
-- The facility is secured against Greatland's share of the
Havieron asset;
-- Repayment of the loan is from 80% of net proceeds from the
sale of Havieron products and must be repaid by the earlier of 10
years from the date of the Feasibility Study or 12 years from the
date of the Newcrest Loan Agreement;
-- There are no financial covenants.
Unrealised foreign exchange loss of GBP1.7 million (2022: GBP2.7
million) was incurred on the US$52.4 million loan balance held by
the Australian subsidiary. The functional currency of the
Australian subsidiary is Australian dollars while the loan is
denominated in US dollars. The exchange rate decreased during the
year from 0.69 USD/AUD at 30 June 2022 to 0.66 USD/AUD at 30 June
2023.
Exchange differences arising on the translation of the
functional currency of the Australian subsidiary differing from the
Group's presentation currency resulted in a reduction to borrowings
of GBP3.3 million during the year (2022: addition of GBP1.7
million). The exchange rate decreased during the year from 0.545
GBP/AUD at 30 June 2022 to 0.525 GBP/AUD at 30 June 2023.
Details of the Group's exposure to risks and the maturity of the
loan are set out i n note 15 of the Annual Report.
Recognition and measurement
At initial recognition, financial liabilities are classified as
financial liabilities at fair value through profit or loss,
amortised cost, or as derivatives designated as hedging instruments
in an effective hedge, as appropriate. All financial liabilities
are recognised initially at fair value and, in the case of those
measured at amortised cost, net of directly attributable
transaction costs. The subsequent measurement of financial
liabilities depends on their classification, as described
below.
Financial liabilities measured at amortised cost
Borrowings are measured at amortised cost using the effective
interest method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the
effective interest method amortisation process.
Amortised cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral
part of the effective interest. Refer to note 17 of the Annual
Report for interest capitalised to mine development.
14 Equity
Note No. of Share Share Merger Total
Shares Capital Premium Reserve GBP'000
GBP'000 GBP'000 GBP'000
Balance at 1 July 2022 of authorised
fully paid shares 4,070,547,171 4,071 36,166 225 40,462
Issued at GBP0.001 - Havieron
contingent consideration on 2
Aug 2022 (a) 138,981,150 138 - - 138
Issued at GBP0.082 - from equity
raise on 25 Aug 2022 (b) 362,880,180 362 - 29,393 29,755
Issued at GBP0.078 - from Wyloo
subscription on 7 Oct 2022 (c) 430,024,390 430 33,104 - 33,534
Issued at GBP0.0765 - Havieron
5% option fee to advisor on 11
Nov 2022 13,443,391 13 1,015 - 1,028
Issued at GBP0.020 - exercise
of options on 9 January 2023 25,000,000 25 25 - 50
Issued at GBP0.025 - exercise
of options on 9 January 2023 8,750,000 9 210 - 219
Issued at GBP0.070 - exercise
of options on 9 January 2023 7,500,000 8 45 - 53
Issued at GBP0.025 - exercise
of options on 30 January 2023 5,000,000 5 120 - 125
Issued at GBP0.03 - exercise of
options on 30 January 2023 3,000,000 3 87 - 90
Issued at GBP0.001 - exercise
of options on 13 February 2023 500,000 1 - - 1
Issued at GBP0.025 - exercise
of options on 9 March 2023 1,500,000 2 36 - 38
Issued at GBP0.03 - exercise of
options on 9 March 2023 1,500,000 2 43 - 45
Less: transaction costs on share
issue - - (30) (2,124) (2,154)
Balance at 30 June 2023 of authorised
fully paid shares 5,068,626,282 5,069 70,821 27,494 103,384
=============================================== ============== ========= ========= ========= =========
No. of Share Share Merger Total
Shares Capital Premium Reserve GBP'000
GBP'000 GBP'000 GBP'000
Balance at 1 July 2021 of authorised
fully paid shares 3,947,270,143 3,947 24,064 225 28,236
Issued at GBP0.03 - exercise
of options on 29 Jul 2021 250,000 1 7 - 8
Issued at GBP0.025 - under block
listing authority on 2 Aug 2021 6,216,216 6 149 - 155
Issued at GBP0.025 - under block
listing authority on 1 Sep 2021 10,810,812 11 260 - 271
Issued at GBP0.145 - from fundraise
on 19 Nov 2021 82,000,000 82 11,808 - 11,890
Issued at GBP0.014 - exercise
of options on 18 Mar 2022 3,000,000 3 39 - 42
Issued at GBP0.02 - exercise
of options on 18 Mar 2022 3,000,000 3 57 - 60
Issued at GBP0.03 - exercise
of options on 17 May 2022 9,000,000 9 261 - 270
Issued at GBP0.025 - exercise
of options on 17 May 2022 9,000,000 9 216 - 225
Less: transaction costs on share
issue - - (695) - (695)
Balance at 30 June 2022 of authorised
fully paid shares 4,070,547,171 4,071 36,166 225 40,462
======================================== ============== ========= ========= ========= =========
(a) Contingent deferred acquisition consideration
In July 2022 (prior to the outcome of the Havieron 5% option
process), Greatland successfully renegotiated the deferred
consideration that was due to be paid in respect of its 2016
acquisition of Havieron. The original terms of the acquisition
comprised an initial payment of A$25,000 in cash and 65,490,000 new
ordinary shares. A further 145,530,000 new ordinary shares were
payable if Greatland's ownership interest in Havieron reduced to
25% or less, or upon a decision to mine at Havieron whichever
occurs earlier.
The 145,530,000 deferred share payment was renegotiated as
follows:
i) 138,981,150 Greatland shares were issued to the vendor
nominee, Five Diggers, during the year. This represented a 4.5%
reduction in total shares issued relative to the ordinary agreed
quantum
ii) In respect of the 138,981,150 shares issued, Five Diggers
are subject to the following restrictions:
-- A lock up which prohibits any shares from being disposed of
for the first 12 months from grant, subject to carveouts (such as
recommend takeovers), and
-- Orderly market arrangement, under which the shares may only
be traded through Greatland's broker (subject to customary carve
outs)
The new ordinary shares were issued in Greatland on 2 August
2022. The fair value of the contingent consideration formed part of
the original acquisition in 2016 and as such the equity instruments
were issued to share capital for GBP0.001 as required by the
Companies Act 2006, with nil value attributable to share premium in
August 2022.
14 Equity (continued)
(b) August 2022 equity raise
On 25 August 2022, Greatland raised total gross proceeds of
GBP29.8 million through placing 362,880,180 new ordinary shares at
an issue price of GBP0.082. The raise was facilitated through an
incorporated Jersey registered company, Ferdinand (Jersey) Limited.
The proceeds of the share issue were held in trust by Greatland on
behalf of Ferdinand (Jersey) Limited, which was then acquired by
way of share for share exchange in circumstances which qualified
for merger relief, therefore no amount was recognised as share
premium on the share issue as required under section 612 of the
Companies Act.
The amount recognised in the merger reserve reflects the amount
by which the fair value of the shares issued exceeded their nominal
value and is recorded within the merger reserve on consolidation,
rather than in a share premium account.
(c) Strategic placement to Wyloo
On 12 September 2022, Greatland entered into an agreement for a
strategic equity investment with Wyloo, a privately owned minerals
investment company. Wyloo subscribed for 430,024,390 shares for
A$60 million (GBP33.5 million), an equivalent at the date of the
agreement of GBP0.082 per share. This placement occurred at the
same price as the August 2022 raise which equated to a small
premium to the five-day VWAP of 9 September 2022. The transaction
was approved by shareholders on 7 October 2022, resulting in Wyloo
becoming Greatland's largest shareholder with approximately 8.6% of
shares on issue. Settlement occurred on 14 October 2022 at a
converted share price of GBP0.078 per share. On settlement, the
A$60 million (GBP33.5 million) consideration received from Wyloo
was allocated to share capital and share premium reflecting the
fair value of the ordinary shares at settlement date.
As part of the equity subscription, a further GBP35 million may
be raised from Wyloo in the future through the conversion of
352,620,000 warrants with a strike price of GBP0.10 per share and
expiry date of 6 October 2025. The warrants were recognised in the
statement of financial position at nil value on issue.
(d) Farm-in to Rio Tinto Exploration's Paterson South
In May 2023, Greatland entered into a farm-in and joint venture
agreement with Rio Tinto in respect of the Paterson South Project
which comprises of nine exploration licences. Under the farm-in and
joint venture arrangement, Greatland is required to make an
up-front payment to RTX of A$350,000 which Greatland has elected to
settle in shares within 6 months from the date of execution. As the
farm-in and joint venture agreement was executed during the year,
the up-front payment has been capitalised as part of the
acquisition costs of the tenements and recognised in share-based
payment reserves until the shares are issued.
Capital management
Greatland's capital includes shareholders' equity, reserves and
net debt. Net debt is defined as borrowings and lease liabilities
less cash and cash equivalent.
Management controls the capital of the Group in order to
generate long-term shareholder value and ensure that the Group can
fund operations and continue as a going concern. Management
effectively manages the Group's capital by assessing the Group's
financial risks and adjusting its capital structure in response to
changes in these risks and in the market. These responses include
share issues and debt considerations. Given the nature of the
Group's current activities, the entity will remain dependent on
debt and equity funding in the short to medium term until such time
as the Group becomes self-financing from the commercial production
of mineral resources.
Recognition and measurement
Share capital and share premium
Share capital is the nominal value of shares issued at
GBP0.001.
Share premium is the amount subscribed for share capital in
excess of nominal value, less share issue cost.
Ordinary shares participate in dividends and the proceeds on
winding up the Company in proportion to the number of shares held.
At shareholder meetings each ordinary share is entitled to one vote
when a poll is called, otherwise each shareholder has one vote on a
show of hands.
Merger reserve
Where the Company issues equity shares in consideration for
securing a holding of at least 90% of the nominal value of each
class of equity in another company, the application of merger
relief is compulsory. Merger relief is a statutory relief from
recognising any share premium on shares issued. A merger reserve is
recorded equal to the value of share premium which would have been
recorded if the provisions of section 612 of the Companies Act 2006
had not been applicable.
15 Financial risk management
This note explains the Group's material exposure to financial
risks and how these risks could affect the Group's future financial
performance.
Financial Risks Exposure arising Measurement Management
from
Market risk - Recognised financial Assessment of use
foreign exchange assets and liabilities * Cash flow forecasting of financial instruments,
not denominated hedging contracts
in GBP or techniques to
* Sensitivity analysis mitigate risk
Market risk - Long-term borrowings Assessment of use
interest rate at variable rates * Cash flow forecasting of financial instruments,
hedging contracts
or techniques to
* Sensitivity analysis mitigate risk
Credit risk Cash and cash Diversification
equivalents * Credit ratings of banks, credit
limits, investment
grade credit ratings
Liquidity risk Borrowings and Availability of
other liabilities * Rolling cash flow forecasts committed credit
lines and borrowing
facilities, equity
raises
================== ======================== =================================== ===========================
There have been no changes in financial risks from the previous
year. The Group did not have any hedging in place at 30 June 2023
or in prior year. Details on commodity price risk is included in
Principal Risks and Uncertainties of the Annual Report.
Market Risk
(a) Foreign currency risk and sensitivity analysis
The Group's exposure to foreign currency risk at the end of the
reporting period was as follows:
2023 2022
USD AUD USD AUD
$'000 $'000 $'000 $'000
Cash and cash equivalents - 58,400 - 17,196
Borrowings (52,412) - (52,360) -
=========================== ========= ======= ========= =======
The following table demonstrates the sensitivity of the exposure
at the balance sheet date to a reasonably possible change in
AUD/USD/GBP exchange rate, with all other variables held constant.
The impact on the Group's profit before tax and equity is due to
changes in the fair value of monetary assets and liabilities,
expressed in GBP.
Effect on profit before tax
2023 2022
GBP'000 GBP'000
USD/GBP exchange rate - increase
4% (2022: 10%) (1,660) (4,310)
USD/GBP exchange rate - decrease
4% (2022: 10%) 1,660 4,310
AUD/GBP exchange rate - increase
10% (2022: 10%) 3,066 975
AUD/GBP exchange rate - decrease
10% (2022: 10%) (3,066) (975)
=================================== ========= =========
(b) Interest rate risk management and sensitivity analysis
The Group's policy is to retain its surplus funds in interest
bearing deposit accounts including term deposits available up to
twelve months' maximum duration. An increase / decrease of 2% in
interest rates will impact the Group's income statement by a
gain/loss of GBP1.2 million (2022: GBP0.2 million). The Group
considers that a +/-2% movement in interest rates represents
reasonable possible changes.
The Group has borrowing facilities with Newcrest as part of the
Havieron project with a total facility limit of US$50 million,
excluding interest. Interest is calculated on the LIBOR rate plus a
margin of 8% pa. Interest is calculated every 90 days. Under the
Group's accounting policy, interest on the loan is capitalised to
mine development and therefore movements in interest rates had no
impact on the profit or loss in the current year.
Credit risk
Credit risk is the risk that a counterparty will not meet its
obligations under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk
from its financing activities, including deposits with financial
institutions. At the reporting date, the carrying amount of the
Group's financial assets represents the maximum credit
exposure.
15 Financial risk management (continued)
The credit risk on cash and cash equivalents is managed by
restricting dealing and holding of funds to banks which are
assigned high credit ratings by international credit rating
agencies. The Group's cash and cash equivalents as at 30 June 2023
are predominately held with financial institutions with an
investment grade long term credit rating with Standard &
Poor's. As short-term deposits have maturity dates of less than
twelve months , the Group has assessed the credit risk on these
financial assets using life time expected credit losses. In this
regard, the Group has concluded that the probability of default on
the term deposits is relatively low. Accordingly, no impairment
allowance has been recognised for expected credit losses on the
short-term deposits.
Liquidity risk
Liquidity risk is the risk that the Group will encounter
difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another
financial asset. The Group's approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or
risking damage to the Group's reputation. The Group manages
liquidity risk by conducting regular reviews of the timing of cash
flows in order to ensure sufficient funds are available to meet
these obligations.
(a) Maturities of financial liabilities
The table below analyses the Group's financial liabilities into
relevant maturity groupings based on their contractual maturities.
The amounts disclosed in the table are contractual discounted cash
flows. Balances due within 12 months equal their carrying balances
as the impact of discounting is not significant.
Contractual Total
maturities Less 6- 12 Between Between Over contractual Carrying
of financial than 6 months 1 and 2 and 5 years cashflows amount
liabilities months GBP'000 2 years 5 years GBP'000 GBP'000 GBP'000
At 30 June GBP'000 GBP'000 GBP'000
2023
Trade payables 8,511 - - - - 8,511 8,511
Borrowings - - 41,503 - - 41,503 41,503
Lease liabilities 75 76 129 155 - 435 412
Total liabilities 8,586 76 41,632 155 - 50,449 50,426
=================== ========== ========== ========== ========== ========== ============= ===========
Contractual Total
maturities Less 6- 12 Between Between Over contractual Carrying
of financial than 6 months 1 and 2 and 5 years cashflows amount
liabilities months GBP'000 2 years 5 years GBP'000 GBP'000 GBP'000
At 30 June GBP'000 GBP'000 GBP'000
2022
Trade payables 3,269 - - - - 3,269 3,269
Borrowings - - 43,103 - - 43,103 43,103
Lease liabilities 114 100 70 - - 284 278
Total liabilities 3,383 100 43,173 - - 46,656 46,650
=================== ========== ========== ========== ========== ========== ============= ===========
INVESTED CAPITAL
16 Exploration and evaluation assets
2023 2022
Note GBP'000 GBP'000
As at 1 July 94 -
Additions (a) 189 90
Adjustment of currency translation (19) 4
As at 30 June 264 94
============================================= ========= =========
(a) Farm-in to Rio Tinto Exploration's Paterson South
Greatland entered into a farm-in and joint venture agreement
with RTX during the year in respect of the Paterson South Project
which comprises of nine exploration licences. Greatland elected to
settle the up-front payment to RTX of A$350,000 in shares within 6
months from the date of execution. Refer to note 14(d) for further
details.
Recognition and measurement
Exploration and evaluation and development assets includes
acquisition 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.
Exploration and evaluation expenditure is capitalised and
carried forward to the extent that it relates to:
(i) acquisition costs; or
(ii) costs are expected to be recouped through successful
development and exploitation of the area of interest or
alternatively through sale.
If the above criteria are not met, exploration expenditure is
expensed when incurred.
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 assets are assessed for impairment if
one or more of the following facts and circumstances exist:
-- the right to explore the specific area has expired during the
period or will expire in the near future, and is not expected to be
renewed;
-- substantive expenditure on further exploration for and
evaluation of mineral resources is the specific areas is neither
budgeted nor planned;
-- exploration and evaluation of mineral resources in the
specific area have not led to the discovery of commercially viable
quantities of mineral resources and the company has decided to
discontinue such activities in the specific area;
-- sufficient data exists to indicate that, although development
in the specific area is likely to proceed, the carrying amount of
the exploration and evaluation asset is unlikely to be recovered in
full from successful development or by sale.
An exploration and evaluation asset will be reclassified to mine
development when the technical feasibility and commercial viability
of extracting a mineral resource are demonstrable.
17 Mine Development
Assets Rehabilitation Total
2023 under construction asset GBP'000
GBP'000
As at 1 July 33,835 1,747 35,582
Additions 23,367 - 23,367
Capitalised interest 5,406 - 5,406
Adjustment of currency translation (4,294) (130) (4,424)
As at 30 June 58,314 1,617 59,931
===================================== ==================== =============== =========
Assets Rehabilitation Total
2022 under construction asset GBP'000
GBP'000 GBP'000
As at 1 July 9,074 3,813 12,887
Additions 21,171 - 21,171
Adjustment to rehabilitation
provision - (2,230) (2,230)
Capitalised facility fees 186 - 186
Capitalised interest 2,074 - 2,074
Adjustment of currency translation 1,330 164 1,494
As at 30 June 33,835 1,747 35,582
===================================== ==================== =============== =========
Recognition and measurement
Mine Development
Mine development represents expenditure incurred when the
technical feasibility and commercial viability of extracting a
mineral resource are demonstrable and includes costs incurred up
until such time as the asset is capable of being operated in a
manner intended by management.
Mine development is stated at historical cost less 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.
Depreciation does not commence until the asset is in the
location and condition necessary for it to be capable of operating
in the manner intended by management.
An item of mine development 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.
Impairment
At each reporting date, the Company assesses whether there are
any indicators of impairment. If any indicators exists, the Company
estimates the asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's or cash generating unit's ( CGU
) fair value less cost of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless
the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. When
the carrying amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is written down to its
recoverable amount.
The recoverable amount of mine development is dependent on the
Company's estimate of the Ore Reserve that can be economically and
legally extracted. The Company 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.
Impairment losses are recognised in the profit or loss.
Capitalised borrowing costs
General and specific borrowing costs that are directly
attributable to the acquisition, construction or production of a
qualifying asset are capitalised during the period of time that is
required to complete and prepare the asset for its intended use or
sale. Qualifying assets are assets that necessarily take a
substantial period of time to get ready for their intended use or
sale.
17 Mine Development (continued)
Key estimates and assumptions - Mine Development
Development activities commence after commercial viability and
technical feasibility of the project is established. Judgement
is applied by management in determining when a project is commercially
viable and technically feasible. In exercising this judgement,
management is required to make certain estimates and assumptions
as to future events. If, after having commenced the development
activity, a judgement is made that a development asset is impaired
the relevant capitalised amount will be written off to the income
statement.
The Group's estimate of the Havieron Ore Reserve and Mineral Resource
is 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 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 Havieron Reserve and Resource.
Future changes in these estimates may impact upon the carrying
value of mine properties, property, plant and equipment, and provision
for rehabilitation. A copy of the Havieron Reserve and Resource
is available on the company's website: https://greatlandgold.com
===========================================================================
18 Leases
(a) Amounts recognised in the balance sheet
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Right-of-use asset
Office and other leases 418 272 - 13
Lease liabilities
Current lease liabilities 128 208 - 13
Non-current lease liabilities 284 70 - -
Total lease liabilities 412 278 - 13
Maturity analysis of undiscounted
future lease payments
Within one year 128 214 - 14
Later than one year but
not later than five years 307 70 - -
Later than five years - - - -
Total undiscounted future
lease payments 435 284 - 14
=================================== ========= =========== ========= ==========
Additions to the right-of-use assets during the year were GBP0.4
million (2022: GBP0.3 million) associated with the extension to the
office and warehouse leases.
(b) Amounts recognised in the statement of comprehensive
income
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Depreciation charge of
right-of-use assets 197 133 13 37
Interest expense (included
in finance cost) 7 14 1 2
Expense relating to short-term
leases of low value (included
in administrative expense) 6 63 - -
================================ ========= =========== ========= ==========
(c) The group's leasing activities and how these are accounted
for
The Group leases various offices, warehouses, equipment and
vehicles. Rental contracts are typically made for fixed periods of
6 months to 8 years. Payments associated with short-term leases of
equipment and vehicles and all leases of low-value assets are
recognised on a straight-line basis as an expense in the statement
of profit or loss. Short-term leases are leases with a lease term
of 12 months or less without a purchase option. Low-value assets
comprise IT equipment and office furniture.
(d) Extension and termination options
Extension options are included in the leases if it is reasonably
certain the lease terms are to be extended. These are used to
maximise operational flexibility in terms of managing the assets
used in the group's operations.
18 Leases (continued)
Recognition and measurement
Assets and liabilities arising from a lease are initially
measured on present value basis. Lease liabilities include the net
present value of the following lease payments:
-- fixed payments (including in-substance fixed payments), less
any lease incentives receivable
-- variable lease payments that are based on an index or a rate,
initially measured using the index or rate as at the commencement
date
-- amounts expected to be payable by the group is reasonably
certain to exercise that option, and
-- payments of penalties for terminating the lease, if the lease
term reflects the group exercising that option
The lease payments are discounted using the interest rate
implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the group, the lessee's
incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds necessary
to obtain an asset of similar value to the right-of-use asset in a
similar economic environment with similar terms, security and
conditions.
The group is exposed to potential future increases in variable
lease payments based on an index or rate, which are not included in
the lease liability until they take effect. When adjustments to
lease payments based on an index or rate take effect, the lease
liability is reassessed and adjusted against the right-of-use
asset.
Lease payments are allocated between principal and finance
costs. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the
following:
-- the amount of the initial measurement of lease liability
-- any lease payments made at or before the commencement date
less any lease incentives received
-- any initial direct costs, and restoration costs.
Right-of-use assets are generally depreciated over the shorter
of the asset's useful life and the lease term on a straight-line
basis. If the group is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over the underlying
asset's useful life.
19 Property, plant and equipment
Property, IT Equipment
Motor Vehicles Plant & GBP'000 Total
GBP'000 Equipment GBP'000
GBP'000
Year ended 30 June 2023
Opening net book amount 59 36 - 95
Additions - - 21 21
Disposals - - - -
Depreciation (9) (12) (5) (26)
Adjustment to currency
translation (3) (2) (1) (6)
Closing net book value 47 22 15 84
At 30 June 2023
Cost 145 191 20 356
Accumulated depreciation (98) (169) (5) (272)
Net book amount 47 22 15 84
========================== ================= =========== ============= ==========
19 Property, plant and equipment (continued)
Property, IT Equipment
Motor Vehicles Plant & GBP'000 Total
GBP'000 Equipment GBP'000
GBP'000
Year ended 30 June 2022
Opening net book amount 78 42 - 120
Additions 20 24 - 44
Disposals - (18) - (18)
Depreciation (27) (10) - (37)
Adjustment to currency
translation (12) (2) - (14)
Closing net book value 59 36 - 95
At 30 June 2022
Cost 156 206 - 362
Accumulated depreciation (97) (170) - (267)
Net book amount 59 36 - 95
========================== ================= =========== ============= ==========
Recognition and measurement
Plant and equipment is stated at historical cost. 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 methods and useful lives
Depreciation is calculated using the straight-line method to
allocate their costs over their estimated useful lives, or in the
case of leasehold improvements and curtained leased plant and
equipment, the shorter lease term as follows:
-- Motor vehicles: 8 - 10 years
-- Equipment: 5 - 10 years
-- IT equipment: 3 - 5 years
-- Leasehold improvements: 2 - 10 years
20 Commitments
Capital commitments
Capital expenditure contracted for at the end of the reporting
period but not recognised as liabilities is as follows:
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Within one year 4,589 5,384 - -
Between one and five years - - - -
Later than five years - - - -
Total capital commitments 4,589 5,384 - -
============================ ========= ========= ========= =========
GROUP STRUCTURE AND RELATED PARTY INFORMATION
21 Investment in subsidiaries
As at, and throughout the financial year ended 30 June 2023, the
ultimate parent entity of the Group was Greatland Gold plc.
Information relating to subsidiaries is included below:
Country of % interest
Controlled entities Notes incorporation Class 2023 2022
Greatland Pty Ltd (a) Australia Common 100% 100%
Greatland Holdings (b) Australia Common 100% -
Group Pty Ltd
Greatland Exploration (b) Australia Common 100% -
Pty Ltd
Greatland Juri Pty (b) Australia Common 100% -
Ltd
Greatland Paterson (b) Australia Common 100% -
South Pty Ltd
======================= ======= =============== ======== ====== =====
(a) During the year the Group undertook an internal
re-organisation. This included the formation of Greatland Holdings
Group Pty Ltd interposed between Greatland Gold plc and Greatland
Pty Ltd. Greatland Holdings Group Pty Ltd became the head entity
for the Australian group.
(b) The wholly owned subsidiaries were formed and incorporated
in the current financial year.
The registered address of the Australian subsidiaries is Level
3, 502 Hay Street, Subiaco, WA 6008.
Recognition and measurement
Investments in subsidiary companies are classified as
non-current assets and included in the statement of financial
position of the Company at cost, less any provision for
impairment.
Investments in subsidiaries that suffered an impairment are
reviewed for possible reversal of the impairment at the end of each
reporting period.
22 Interest in joint arrangements
Set out below are the joint arrangements of the group:
% interest
Joint arrangement Holding entity 2023 2022 Nature of business
Havieron Joint Greatland Development and exploration
Venture Pty Ltd 30% 30% of precious and base metals
Greatland Exploration of precious and
Juri Joint Venture Juri Pty Ltd 49% 49% base metals
Paterson South Greatland - - Exploration of precious and
Joint Venture* Paterson South base metals, entered into on
Pty Ltd 30 May 2023
==================== ================= ====== ===== ==============================
* Formation of Paterson South JV is subject to Greatland
Paterson South Pty Ltd satisfying the initial minimum expenditure
and drilling commitments required as part of the farm-in with Rio
Tinto.
Recognition and measurement
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.
In some cases, Greatland participates in unincorporated joint
venture arrangements where it has the rights to its share of the
assets and obligations and its share of the revenue and expenses of
the arrangement, but it does not share joint control. In such
cases, Greatland accounts for its share of the assets, liabilities,
revenues and expenses in accordance with the IFRSs applicable to
the particular assets, liabilities, revenues and expenses and
obligations for the liabilities relating to the arrangement similar
to a joint operation noted above.
23 Related party transactions
Remuneration of key management personnel
2023 2022
GBP GBP
Short-term employee benefits 2,004,039 1,387,359
Share-based payments 9,420,547 193,195
Long-term employee benefits 18,799 9,802
Post-employment benefits 85,555 67,455
Total 11,528,940 1,657,811
============================== =========== ==========
Detailed information about the remuneration received by each key
management person is provided in the remuneration report.
Transactions with key management personnel
During the year, the following key management personnel of the
Group participated in the share subscription in August 2022 at an
issue price of GBP0.082 per share, as follows:
Number of GBP
Shares Subscribed
Shaun Day (Managing Director) 714,000 58,548
Christopher Toon (CFO) 71,400 5,855
Damien Stephens (Group Exploration
Manager) 35,700 2,927
===================================== =================== =======
OTHER NOTES
24 Share-based payments
The total expense arising from the share-based payment
transactions recognised during the year was as follows:
Note 2023 2022
GBP'000 GBP'000
Employee long term incentive plan (a) 981 -
Directors' co-investment options (b) 8,611 -
Other schemes (c) 195 193
Total 9,787 193
=========================================== ========= =========
(a) Employee Long Term Incentive Plan (LTIP)
Greatland's Board approved LTIP became effective in February
2022. The LTIP is designed to provide long-term incentives for
employees (including executive directors) to deliver long-term
shareholder returns. Under the LTIP, participants are granted
performance rights or options which vest if certain performance
standards are met. Participation in the plan is at the Board's
discretion and no individual has a contractual right to participate
in the plan or to receive any guaranteed benefits.
The Group issued 22,000,000 performance rights on 27 July 2022
under the Greatland LTIP which were in respect of the 2022
financial year. The amount of performance rights will vest
depending on a number of performance targets during the performance
period from 27 July 2022 to 7 February 2025. The share-based
payment expense to be recognised in future periods is GBP1.6
million.
The fair value at grant date is independently determined using
an adjusted form of the Black-Scholes Model which includes a Monte
Carlo simulation model for the TSR rights. The key assumptions were
as follows:
Fair value of performance rights and 2022 LTIP
assumptions
Grant date 27 July
2022
Fair value GBP0.1205
Share price at grant date GBP0.131
Exercise price GBP0.001
Expected volatility 60%
Vesting date 7 February
2025
Expected dividends 0.00%
Risk free interest rate 1.82%
Valuation methodology Monte Carlo
& Black-Scholes
====================================== =================
24 Share-based payments (continued)
The movements in the number of performance rights granted under
the plan are as follows:
Weighted Number of Weighted Number of
average exercise options average exercise options
price 2023 price 2022
2023 2022
Outstanding at the - - - -
beginning of the year
Granted during the GBP0.001 22,000,000 - -
year
Exercised during the GBP0.001 (500,000) - -
year
Forfeited during the - - - -
year
Outstanding at the GBP0.001 21,500,000 - -
end of the period
Exercisable at the - - - -
end of the period
======================= ================== =========== ================== ==========
Set out below are the performance rights granted under the
plan:
Date of Vesting Expiry Exercise Number Number Number
grant and exercisable date price granted at at
date 30 June 30 June
2023 2022
27-Jul-2022 7-Feb-2025 27-Jul-2032 GBP0.001 22,000,000 21,500,000 -
Weighted average remaining 9.1 years -
contractual life of rights
outstanding at the end of
the period
================================================ ========== =========== =========== =========
(b) Directors' Co-investment Options
The Company granted co-investment options to subscribe for new
ordinary shares in the Company to four Directors, Mark Barnaba,
Elizabeth Gaines, Paul Hallam and Jimmy Wilson. The co-investment
option structure has been designed to create strong and immediate
alignment with shareholders to deliver substantial share price
growth, with the options being set at GBP0.119, representing a 45%
premium to the equity placement in August 2022 of GBP0.082. There
are no future amounts associated with these options to be expensed
in future periods.
The Group issued 235,000,000 co-investment options on 12
September 2022. The fair value at grant date was independently
determined using a Binomial simulation model. The key assumptions
were as follows:
Fair value of performance rights Directors'
and assumptions options
Grant date 12 September
2022
Fair value GBP0.0366
Share price at grant date GBP0.0902
Exercise price GBP0.119
Expected volatility 60%
Vesting date 12 September
2022
Life of options 4 years
Expected dividends 0.00%
Risk free interest rate 2.92%
Valuation methodology Binominal
================================== =============
Set out below are the options granted under the plan:
Grant date Vesting Expiry Exercise Number Number Number
and exercisable date price granted at at
date 30 June 30 June
2023 2022
12-Sep-2022 27-Sep-2022 31-Aug-2026 GBP0.119 235,000,000 235,000,000 -
Weighted average remaining 3.2 years -
contractual life of rights
outstanding at the end of
the period
================================================ ========== ============ ============ =========
24 Share-based payments (continued)
(c) Other schemes
Other schemes relate to previous issues of share options and
performance rights. The share-based payment expense in relation to
other schemes to be recognised in future periods is GBP0.2
million.
Share options for other schemes outstanding at the end of the
year have the following expiry dates and exercise prices:
Grant Vesting Expiry Exercise Number Number Number
date and exercisable date price granted at at
date 30 June 30 June
2023 2022
Options
20-Apr-2016 20-Apr-2016 20-Apr-2023 GBP0.002 100,000,000 - 25,000,000
18-Jan-2017 18-Jul-2017 18-Jul-2023(1) GBP0.0028 75,000,000 14,000,000 14,000,000
18-Aug-2017 18-Feb-2018 16-Feb-2023 GBP0.007 60,000,000 - 7,500,000
7-Sep-2018 7-Sep-2019 6-Sep-2023(1) GBP0.014 39,500,000 2,500,000 2,500,000
7-Sep-2018 7-Sep-2019 6-Sep-2023(1) GBP0.02 39,500,000 2,500,000 2,500,000
22-Mar-2019 21-Mar-2020 21-Mar-2023 GBP0.025 20,000,000 - 13,750,000
26-Sep-2019 26-Sep-2020 25-Sep-2023 GBP0.025 32,000,000 1,500,000 3,000,000
26-Sep-2019 26-Sep-2020 25-Sep-2023 GBP0.03 32,000,000 1,250,000 5,750,000
5-May-2021 3-May-2024 4-May-2026 GBP0.25 5,000,000 5,000,000 5,000,000
Total 403,000,000 26,750,000 79,000,000
Weighted average remaining contractual life 0.6 years 1.0 years
of rights outstanding at the end of the period
=============================================================================== =========== ===========
(1) Remaining options outstanding relate to Mr Borrelli and the
exercise period has been extended to 20 business days after the
director ceases to be in possession of price sensitive information.
Mr Borrelli exercised these options on 1 October 2023.
(2) Mr Latcham exercised these options on 24 September 2023.
Performance rights are subject to performance hurdles and have a
nominal exercise price of GBP0.001:
Date of Vesting Expiry date Number granted Number Number
grant and exercisable at at
date 30 June 30 June
2023 2022
Performance rights
8-Jul-2021 30-Jun-2024 8-Jul-2031 2,000,000 2,000,000 2,000,000
Weighted average remaining contractual life 8.0 years 9.0 years
of rights outstanding at the end of the period
=========================================================================== ========== ==========
The movements in the number of options and performance rights
from other schemes are as follows:
Weighted Number of Weighted Number of
average exercise options average exercise options
price 2023 price 2022
2023 2022
Options
Outstanding at the
beginning of the year GBP0.026 79,000,000 GBP0.026 103,250,000
Exercised during the
year GBP0.012 (52,250,000) GBP0.025 (24,250,000)
Outstanding at the
end of the period GBP0.054 26,750,000 GBP0.026 79,000,000
Exercisable at the
end of the period GBP0.011 21,750,000 GBP0.011 74,000,000
======================== =================== ============= ================== =============
Number of Number of
performance performance
rights rights
2023 2022
Performance Rights
Outstanding at the beginning of the year 2,000,000 -
Exercised during the year - -
Granted during the year - 2,000,000
Outstanding at the end of the period 2,000,000 2,000,000
Exercisable at the end of the period - -
========================================== ============= =============
24 Share-based payments (continued)
Recognition and measurement
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 were granted. Non-vesting conditions and
market vesting conditions are factored into the fair value of the
options granted. As long as all other vesting conditions are
satisfied, a charge is made irrespective of whether the marketing
vesting conditions are satisfied. The cumulative expense is not
adjusted for failure to achieve market vesting conditions or where
a non-vesting condition is not satisfied.
Estimating fair value for share-based payment transactions
requires determining the most appropriate valuation model, which is
dependent on the terms and conditions of the grant. This estimate
also requires determining the most appropriate inputs to the
valuation model including the expected life of the share option,
volatility and dividend yield and making assumptions about
them.
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.
Key estimates and assumptions - Share-based payments
The fair value of performance rights is measured using a Black-Scholes
model which includes a Monte Carlo simulation model for the TSR
rights. The fair value includes assumptions for the expected volatility,
dividend yield and a risk-free rate as at the measurement date
which are detailed above. A 60% volatility was applied based on
the parent entity's historical volatility of the share price and
considering the volatility of several peer companies.
==========================================================================
25 Provisions
Group Group Company Company
2023 2022 2023 2022
GBP'000 GBP'000 GBP'000 GBP'000
Current provisions
Employee benefits 186 919 186 918
Total current provisions 186 919 186 918
Non-current provisions
Employee benefits 63 29 - -
Lease make good provision 14 15 - -
Rehabilitation, restoration
and dismantling 1,873 1,932 - -
Total non-current provision 1,950 1,976 - -
Total provisions 2,136 2,895 186 918
============================= ========= ========== ========= ==========
Movements in each class of provision during the financial year
are set out below:
Employee Lease make
Rehabilitation benefits good Total
GBP'000 GBP'000 GBP'000 GBP'000
As at 1 July 2022 1,932 948 15 2,895
Additional provisions
recognised - 37 - 37
Amounts used during the
year - (733) - (733)
Unwinding of discount 91 - - 91
Adjustment to currency
translation (150) (3) (1) (154)
As at 30 June 2023 1,873 249 14 2,136
========================= ================= ========== =========== ==========
25 Provisions (continued)
Recognition and measurement
Employee Benefits
The leave obligations cover the Group's liabilities for long
service leave which are classified as other long-term benefits. The
Group has liabilities for long service leave that are not expected
to be settled wholly within 12 months after the end of the period
in which the employees render the related service. These
obligations are therefore measured as the present value of expected
future payments to be made in respect of services provided by
employees up to the end of the reporting period, using the
projected unit credit method. Consideration is given to expected
future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted
using market yields at the end of the reporting period of
high-quality corporate bonds with terms and currencies that match,
as closely as possible, the estimated future cash outflows.
Remeasurements as a result of experience adjustments and changes in
actuarial assumptions are recognised in profit or loss. The
obligations are presented as current liabilities in the balance
sheet if the entity does not have an unconditional right to defer
settlement for at least 12 months after the reporting period,
regardless of when the actual settlement is expected to occur.
Lease make good provisions
The Group is required to restore the leased premises to their
original condition at the end of the respective lease terms. A
provision has been recognised for the present value of the
estimated expenditure required to remove any leasehold
improvements. These costs have been capitalised as part of the cost
of leasehold improvements and are amortised over the shorter of the
term of the lease and the useful life of the assets.
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 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.
Key estimates and assumptions - Rehabilitation provisions
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 and cost increases as compared to the inflation
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 provision for rehabilitation has been recorded assuming a
risk-free nominal discount rate derived from an Australian 10
year government bond rate of 4.0% and long-term inflation of 3.0%.
The discount rate approximates the estimated time period for when
the majority of the future rehabilitation costs are expected to
be incurred.
=====================================================================
26 Contingent assets
In November 2022, Greatland entered into an agreement with Flynn
Gold to sell its Tasmanian tenements. The consideration for the
purchase consisted of:
(a) Initial consideration: GBP0.1 million (satisfied by the
issue of 2,000,000 Flynn Gold shares at a deemed issue price of
A$0.10 per Flynn Gold share).
(b) Deferred contingent consideration:
(i) A$500,000 upon the definition of a JORC-compliant Mineral
Resource of at least 500,000 ounces of gold in aggregate within one
or both tenements (payable in cash or Flynn Gold shares, at Flynn
Gold's election);
(ii) A$500,000 upon the issue of a permit to mine by Mineral
Resources Tasmania in respect of any part of the tenements (payable
in cash or Flynn Gold shares, at Flynn Gold's election); and
(iii) a 1% Net Smelter Royalty payable to Greatland in respect
of any production from the tenements.
The contingent asset associated with the deferred consideration
has not been recognised as a receivable at 30 June 2023 as receipt
of the amount is dependent on the outcome of the requirements
outlined above.
27 Remuneration of auditors
2023 2022
GBP GBP
Auditors of the Group - PKF and related network
firms
Audit and review of financial reports
Group audit by PKF Littlejohn 72,000 49,600
Controlled entities by PKF Perth 19,700 11,405
Total audit and review of financial reports 91,700 61,005
Regulatory assurance services by PKF Littlejohn 90,000 -
- Reporting Accountant
Total services provided by PKF 181,700 61,005
================================================= ======== =======
28 Events after the reporting period
Standby loan facility executed
Subsequent to year end, the Company executed an unsecured A$50
million standby facility with Wyloo. Drawdown is available to
Greatland from 1 November 2023, with repayment required by the
maturity date of 31 December 2024. The facility has a 3% upfront
fee and 1% utilisation fee. Interest is charged at benchmark
(Australian BBSY) plus margin of 7.5% p.a. The debt was undrawn at
the date of this report.
Grant of employee incentive options
On 19 September 2023, Greatland granted 302,700,000
Co-Investment Options with an exercise price of GBP0.119,
31,100,000 Retention Rights and 13,306,047 FY23 Performance Rights
at an exercise price of GBP0.001 to employees under the Company's
employee share plan. Collectively the options and rights are an
important element in the attraction and retention of individuals
pivotal to Greatland's growth and their alignment with shareholder
outcomes. Further details are included in the Annual Report.
Exercise of Options and Director Dealings
On 1 October 2023, Mr Borrelli, Non-Executive Director,
exercised his remaining 14,000,000 options over ordinary shares at
a price of GBP0.0028 per share, 2,500,000 options at GBP0.014 and
2,500,000 options at GBP0.02 per share for a total consideration of
GBP124,200. Mr Borrelli retained 9,000,000 of the resulting shares
and sold 10,000,000 of the resulting shares to fund the associated
exercise cost and tax liabilities. Mr Borrelli's shareholding has
now increased to 35,403,372 ordinary shares representing 0.70% of
the total voting rights.
In addition, on 24 September 2023, Mr Latcham, Non-Executive
Director, exercised 1,500,000 existing options over ordinary shares
at a price of GBP0.025 per share and 1,250,000 at a price of
GBP0.03 per share, for a total consideration of GBP75,000. Mr
Latcham retained 700,000 of the resulting shares and sold 2,050,000
of the resulting shares to fund the associated exercise cost and
tax liabilities. Mr Latcham's shareholding has now increased to
3,850,000 ordinary shares representing 0.08% of the total voting
rights.
Newmont Corporation's acquisition of Newcrest Mining Limited
becomes effective
On 18 October 2023, Newcrest, the ultimate parent company of
Newcrest Operations which is the Joint Venture Manager of Havieron,
announced that the scheme of arrangement under which Newcrest will
be acquired by Newmont Corporation was legally effective.
Implementation date is planned for 6 November 2023. For further
updates refer to www.newmont.com.
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END
FR FIFIRLALRIIV
(END) Dow Jones Newswires
November 06, 2023 02:00 ET (07:00 GMT)
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